9th Mar 2005 07:00
Hill & Smith Hldgs PLC09 March 2005 Preliminary Results for the year ended 31 December 2004 Hill & Smith Holdings PLC ('the Group') has announced record profits andturnover and a substantial increase in dividends. The Group has reported that profit before taxation rose by 35.7% to £8.4million. Adjusted profits before taxation, exceptional items and goodwillamortisation grew by 30.1% to £11.8 million. Adjusted earnings per share increased by 27.8% to 13.66p (2003: 10.69p). The proposed final dividend is 2.75p (2003: 2.45p) resulting in total dividendsfor the year of 5.00p (2003: 4.60p). The dividend is covered by adjustedearnings 2.7 times (2003: 2.3 times). Highlights Year ended Year ended 31 December 2004 31 December 2003 ++Turnover £268.7m £241.7mProfit before taxation £8.4m £6.2mAdjusted profit before taxation+ £11.8m £9.1mDividend per share 5.0p 4.6pEarnings per share - adjusted+ 13.66p 10.69pEarnings per share - FRS 3 9.85p 7.04p + before exceptional items and goodwill amortisation.++ restated to take account of the adoption of FRS 17. The Group's culture of innovation and its strategy of investing in its keybusinesses, where markets continue to be strong, have led to the furtherimprovements in profitability. The record results have been achieved despitehigher steel prices, which affected several of the Group's products. The Building and Construction Products division increased its adjusted operatingprofit by 17.0% in the year contributing 90.3% of the Group total. Progress is being made in the integration of the Lionweld Kennedy businesseswhich it acquired during the year. This acquisition is likely to bringsubstantial benefits in the future. Chairman David Winterbottom said: "Our infrastructure products businessescontinue to benefit from public expenditure programmes, especially those relatedto improved health and safety requirements, security and the reduction of roadcongestion. "Further expenditure in these areas, particularly relating to roads, has beenwell signposted by Government agencies and should stimulate further demand forour products and services in the future. "The current year trading period has started in line with our expectations and,subject to market conditions remaining favourable, I look forward to anothersatisfactory performance in 2005". Ends Further information: Hill & Smith Holdings PLCDavid Grove - Chief Executive 0121 704 743007973 325667 Quantum PR plcEdward Carter0121 633 777507770 378097 Chairman's Statement General The Group made further substantial progress in 2004, achieving record profitsand further increasing the scope and strength of its operations. Turnover increased by 11.2% to £268.7 million. Operating profit beforeexceptional items and goodwill amortisation was £15.1 million which represents a19.8% improvement on the previous year (2003: £12.6 million) where the figureshave been restated to take account of the adoption of FRS17. Profit beforetaxation increased from £6.2 million to £8.4 million, an increase of 35.7%.Despite the higher interest rates during the year, profit before exceptionalitems and goodwill amortisation increased by 30.1% to £11.8 million (2003:£9.1 million). Adjusted earnings per share grew by 27.8% to 13.66p (2003:10.69p). Operations We continued our strategy of investing in our growing businesses, where webelieve there are many opportunities for margin enhancement, cost reduction andnew product development. The success of this strategy and the culture ofinnovation we have encouraged throughout the Group are clearly demonstrated bythe year's substantial increase in profits. The Building and Construction Products division contributed 90.3% of our year'soperating profit and it continues to be our main focus for investment and futuregrowth. Operating profits of £13.6 million were 17.0% higher than 2003. Wecontinue to benefit from public expenditure programmes, especially those relatedto improved health and safety requirements, security and the reduction of roadcongestion. Further expenditure in these areas, particularly relating to roads,has been well signposted by Government agencies which should stimulate furtherdemand for our products and services in the future. The Industrial Products division continues to operate under a tight regime andthe active management of these businesses resulted in a much improved level ofprofitability and cash generation during the year. The majority of the Group's products are steel based and during 2004 we wereable to achieve our profit improvement and maintain our supplier-customerpartnerships and service despite substantially higher raw material prices andeven some material shortages. Dividends Since 2001 we have maintained a progressive dividend policy whilst increasingdividend cover. In line with this policy, your Board is recommending a finaldividend of 2.75p per share (2003: 2.45p) subject to shareholders' approval,making a total for the year of 5.0p per share (2003: 4.6p) which is covered 2.7times by adjusted earnings (2003: 2.3 times). Acquisition In October we acquired the principal operations of Lionweld Kennedy Limitedwhich were complementary to several of our existing businesses and gave usadditional manufacturing capacity and geographic spread. Although it had nomaterial impact on the year's results, we are confident this acquisition willprovide more substantial revenue and profit benefits in the future. Employees I would like to thank all our employees for their dedicated contributions inproviding and maintaining our high quality product portfolio and in giving ourcustomers a premium service which have helped to sustain the momentum ofprofitability across our Group. Outlook We will continue to invest both organically and, where appropriate, byacquisition. We will concentrate on further strengthening our core businessesand on improving our product offering into our major markets. The currenttrading period has started in line with our expectations and, subject to marketconditions remaining favourable, I look forward to another satisfactoryperformance in 2005. David WinterbottomChairman9th March 2005 Operational Review The significant advance in profitability in 2004 vindicates our investmentstrategy in recent years. This consists of an ongoing new or improved productdevelopment programme in markets where we have leading positions and where thereis strong customer demand. Our management teams are focused on deliveringfurther developments in the future and it is part of our management culture thatwe are the innovators in the majority of markets we supply. Furthermore, we arecontinually investing in new equipment to improve efficiencies and reduce ourunit costs of production. We are confident that our programme for organic growthwill continue to deliver commensurate returns for shareholders. Acquisitionswill continue to be made where appropriate to complement the underlying growthof our business units. Against a background of rising prices and supply chain shortages, our businessunits worked hard with our suppliers and customers to ensure that there was nodisruption to customer deliveries. I have to congratulate our management teamsfor responding to the challenge in an innovative and professional manner. Building and Construction Products Turnover increased by 12.3% in 2004 to £229.8 million (2003: £204.7million), duein part to the effect of the significant steel price increases we experiencedduring the year. Adjusted operating profit increased by 17.0% in 2004 to £13.6million (2003: £11.6 million). Hill & Smith Limited and its related companies inthe road infrastructure and security markets increased their contribution toGroup profits despite some margin pressures as we continued to sell on the basisof quality and service. Further investment was made during the year expandingour hire fleet of Varioguard temporary crash barrier, which is utilised inprotecting workzones across the road networks in the UK, where we are marketleader. Our product development programme continues to provide our customers withenhanced value solutions and we are ahead of schedule in developing a broadportfolio of vehicle restraint systems which comply with the new regulatorystandards which are to be introduced in the near future. The Highways Agency hasbeen charged by the Government to reduce the number of deaths and seriousinjuries on UK roads by 40% over the next five years. Our expanding productportfolio is providing hardware which will assist in achieving this objective.Government spending in the areas of road health and safety, both in terms oftravellers, traffic management personnel and contractors, plus expenditure onsecurity and the reduction of congestion continues to run well ahead of thegrowth in GDP. In our steel reinforcement operations we are working with our constructionindustry partners to provide more off-site fabrication in order to improve theirsupply chain productivity and increase the value added content and profitabilityof our sales. We believe this development will secure a new competitiveadvantage for us as the sales revenues generated by the Heathrow AirportTerminal 5 Joint Venture reduce in line with expectations as the project nearscompletion. Redman Fisher Engineering was the subject of management changes andrestructuring in 2003 and the new senior management team produced a much morerobust performance. Their business will be further strengthened by the additionof the well known Lionweld Kennedy brand which we acquired towards the end ofthe year. Following the significant start up costs of our new Ashzip standing seam productrange in 2003, Ash & Lacy Building Systems achieved substantial increases ofboth sales and profits in 2004 on the back of favourable market conditions. Thanks to our modern production facilities, in which we have invested heavily inrecent years, our Joseph Ash galvanizing and Birtley Building Products lintelsoperations both made good contributions to Group results. This was despitelively competition in the market place and our continuing drive towards loweroperating costs, which led to our decision to close the Southampton factory ofJoseph Ash. Industrial Products Sales last year were 4.9% ahead of the previous year at £38.8 million (2003:£37.0 million). Operating profits at £1.5 million were 53.2% ahead (2003: £1.0million). In general, across the businesses in this division, market conditionsremain challenging and the profit improvement in the year resulted mainly fromcost reduction and value added efficiency gains. Our Pipe Supports operationexpanded its activities with the construction of a new factory in Thailand. Conclusion We will continue to expand our core businesses supplying the infrastructure,building and construction industries with niche products, innovative solutionsand excellent service to maintain our market leadership. With rising rawmaterial and energy costs we are increasingly outsourcing the manufacture of thehigh labour content commodity type components of our product portfolio. Thiswill release our skilled people to concentrate on higher value added productsand make further developments to our product range. Management and employeesthroughout the Group remain highly motivated and focused on achieving theGroup's objectives. David GroveChief Executive9 March 2005 Financial Review Summary of Results The year's results were the best ever recorded by the Company and were achievedagainst a background of substantial increases in world commodity prices,particularly steel. Steel is our most important raw material and our ability tohandle the supply situation was fundamental to our trading success in the year.These higher raw material prices were a significant factor affecting our sales,cost of sales and working capital. Underlying volumes were broadly similar tolast year. With relatively modest increases in wages and other overheadsadjusted operating profit increased strongly. Sales, profits, earnings per shareand operating cash flow were all at record levels. The results cover the twelve months to 31 December 2004. They include the firsttwo months' trading of the Lionweld Kennedy operations which we acquired at theend of October 2004. The prior year numbers include small contributions from theSI Pressure Instruments and Wombwell Foundry businesses which were discontinuedin 2003. The financial statements include the effects of the adoption for the first timeof FRS 17: Retirement Benefits, the accounting standard dealing with pensioncosts. The prior year comparatives have been restated accordingly. Sales and Operating Profit Group turnover increased by 11.2% to £268.7 million (2003: £241.7 million).Excluding acquisitions and the prior year disposals, like-for-like sales growthwas 11.5% in both divisions. Within the Building and Construction Productsdivision, sales by our Joint Venture with Laing O'Rourke reduced in line withexpectations as its Heathrow Terminal 5 contract progressed. However, highersales at Express Reinforcements more than offset this with the result that salesof reinforcing products grew overall. Several other companies in this divisionincreased sales, in particular Ash & Lacy Building Systems, Barkers Engineeringand Varley & Gulliver which all recorded record sales with year on yearincreases of more than 25%. The main growth in sales in the Industrial Productsdivision came from Bromford Iron & Steel and W&S Allely. Operating margins in the Building and Construction Products division weremaintained and grew strongly in the Industrial Products division where BromfordIron & Steel and Ash & Lacy Perforators both had a much improved year. Groupadjusted operating profit increased by 19.8% to £15.1 million. Net exceptional charges amounted to £1.7million. These related in the main tothe cost of business reorganisations at Joseph Ash, where we closed theSouthampton factory, and at the Industrial Flooring companies, including thecosts of integrating the newly acquired Lionweld Kennedy operations. They alsoinclude £0.4 million (£0.1 million credit after tax) in respect of costsassociated with share option gains. Interest Net interest costs were unchanged at £3.8 million, the slightly lower averageborrowings offsetting the increase in general market rates. Adjusted netinterest cover improved to 4.0 times (2003: 3.4 times). Profit before tax After crediting £0.5 million of FRS 17 related other finance income, adjustedpretax profit rose by 30.1% to a record £11.8 million (2003: £9.1 million). Taxation The effective tax rate on profits before exceptional items and goodwillamortisation was 28.2% compared to the standard rate of 30%, mainly as a resultof the benefit of industrial buildings allowances which were no longer subjectto clawback. Earnings per share Adjusted earnings per share before exceptional items and goodwill amortisationamounted to 13.66p, an increase of 27.8% compared to last year and the highestever achieved by the Group. Dividends In line with our progressive dividend policy, we again propose to increase thelevel of the distribution to shareholders. The recommended final dividend,together with the interim dividend already paid, makes a total for the year of5.0p per share, an increase of 8.7% from last year. Based on adjusted earnings,this level of dividend is covered 2.7 times (2003: 2.3 times). Financing Year end net borrowings increased slightly to £37.9 million (2003: £36.5million). The balance sheet position was affected by the £2.5 million cashacquisition of the Lionweld Kennedy operations towards the end of the year andby a £3.0 million decrease during the year in the level of advance paymentsreceived in connection with our Terminal 5 Joint Venture. Despite the large increase in turnover, we restricted the increase in workingcapital. We also maintained our vigorous programme of capital expenditure,investing a total of £8.0 million, £2.4 million in excess of the depreciationcharge. Year end net assets increased to £31.3 million (2003: £30.8 million). Pensions There was an increase of £2.1 million in the FRS 17 net pension liability.Although investment returns exceeded expectations, improved mortality ratesincreased liabilities by a greater amount, in line with the experience of mostother company occupational pension schemes. International Financial Reporting Standards European listed groups are required to adopt International Financial ReportingStandards ("IFRS") for their financial statements from 2005, includingcomparative information for 2004. Although the Group has not yet finalised itsassessment of the effects of the adoption of IFRS, it currently believes therewill be no material impact on its reported adjusted earnings or cash flow andthat the principal other changes will be restricted to the costs of share-basedpayments such as share option grants, the non-amortisation of goodwill and thenon-accrual of the proposed final dividend. Chris BurrFinance Director9th March 2005 Group Profit and Loss AccountFor the year ended 31 December 2004 Year ended 31 December 2004 Year ended 31 December 2003 (Restated) Before Before exceptional exceptional items and items and goodwill Exceptional Goodwill goodwill Exceptional Goodwill amortisation items amortisation Total amortisation items amortisation Total £000 £000 £000 £000 £000 £000 £000 £000 Notes (see note 2) TurnoverContinuing operations: Existing operations 266,935 - - 266,935 241,665 - - 241,665 Acquisitions 1,717 - - 1,717 - - - - -------- -------- -------- -------- -------- -------- -------- --------Total Turnover 1 268,652 - - 268,652 241,665 - - 241,665 ======== ======== ======== ======== ======== ======== ======== ======== Operating ProfitContinuing operations: Existing operations 15,105 (1,616) (1,674) 11,815 12,592 (5) (1,630) 10,957 Acquisitions (21) (268) - (289) - - - - -------- -------- -------- -------- -------- -------- -------- --------Operating Profit 1 15,084 (1,884) (1,674) 11,526 12,592 (5) (1,630) 10,957 ======== ======== ======== ======== ======== ======== ======== ======== Profit on sale of businesses - - - - - 540 - 540Profit on sale of properties - 187 - 187 - 85 - 85Loss on termination of operations - - - - - (1,851) - (1,851) -------- -------- -------- -------- -------- -------- -------- --------Profit on ordinary activities before interest 1 15,084 (1,697) (1,674) 11,713 12,592 (1,231) (1,630) 9,731 Net interest payable (3,779) - - (3,779) (3,755) - - (3,755)Other finance income 502 - - 502 239 - - 239 -------- -------- -------- -------- -------- -------- -------- --------Profit on ordinary activities before taxation 11,807 (1,697) (1,674) 8,436 9,076 (1,231) (1,630) 6,215 Tax on profit 3 (3,333) 991 18 (2,324) (2,486) 598 16 (1,872) -------- -------- -------- -------- -------- ------- -------- --------Profit on ordinary activities after taxation 8,474 (706) (1,656) 6,112 6,590 (633) (1,614) 4,343 Minority interests (8) - - (8) (3) - - (3) -------- -------- --------- -------- -------- -------- -------- -------Profit for the year 8,466 (706) (1,656) 6,104 6,587 (633) (1,614) 4,340 ======== ======== ========= ======== ======== ========Dividends (3,112) (2,838) -------- -------Retained profit for the year 2,992 1,502 ======== ======= Earnings per share 4 13.66p (1.14p) (2.66p) 9.85p* 10.69p (1.03p) (2.62p) 7.04pDiluted earnings per share 4 13.06p (1.09p) (2.56p) 9.42p* 10.61p (1.02p) (2.60p) 6.99p * FRS 3 Group Balance SheetAs at 31 December 2004 (Restated) 31 December 31 December 2004 2003 £000 £000Fixed assets Intangible assets 26,041 27,240 Tangible assets 44,860 41,437 Investments 25 25 ---------- ---------- 70,926 68,702 ---------- ----------Current assets Properties held for resale 1,746 1,407 Stocks 27,004 23,641 Debtors 57,977 47,226 Cash and deposits 9,901 14,323 ---------- ---------- 96,628 86,597 ---------- ----------Creditors: amounts falling due within one year Borrowings and finance leases (11,806) (10,370) Other creditors (79,774) (66,768) ---------- ---------- (91,580) (77,138) ---------- ---------- Net current assets 5,048 9,459 ---------- ---------- Total assets less current liabilities 75,974 78,161 Creditors: amounts falling due after one year Borrowings and finance leases (36,003) (40,438) Provisions for liabilities and charges (4,030) (4,343) Net assets excluding pension liability 35,941 33,380 Pension liability (4,649) (2,569) ---------- ----------Net assets 31,292 30,811 ========== ==========Share capital and reserves Called up share capital 15,519 15,424 Share premium 3,519 3,423 Capital redemption reserve 238 238 Revaluation reserve 685 739 Other reserves 4,313 4,313 Profit and loss account 6,968 6,632 ---------- ----------Equity shareholders' funds 31,242 30,769Equity minority interests 50 42 ---------- ---------- 31,292 30,811 ========== ========== Group Cash Flow StatementFor the Year Ended 31 December 2004 (Restated) Year ended Year ended 31 December 31 December 2004 2003 Notes £000 £000 Net cash flow from operating activities 5a 18,097 20,925Returns on investments and servicing of finance 5b (4,108) (4,040)Taxation (2,258) (1,182)Capital expenditure and financial investment 5c (6,286) (4,230)Acquisitions and disposals 5d (2,533) 1,031Equity dividends paid (2,846) (2,759) ---------- ----------Cash flow before financing 66 9,745 Financing Issue of new shares 191 89 Loan advances 1,500 50,406 Loan repayments (4,250) (57,539) Redemption of loan notes (827) (328) Repayments of capital element of finance leases (1,102) (861) ---------- ---------- (4,488) (8,233) ---------- ----------(Decrease)/increase in cash in the year (4,422) 1,512 ========== ========== Reconciliation of net cash flow to movement in net debt (Decrease)/increase in cash (4,422) 1,512Cash outflow from borrowings 4,679 8,322 ---------- ----------Change in net debt resulting from cash flows 257 9,834 New finance leases (1,542) (1,414)Amortisation of arrangement fees (138) (35) ---------- ----------Movement in net debt in the year (1,423) 8,385 ---------- ----------Net debt at the start of the year 5e (36,485) (44,870) ---------- ----------Net debt at the end of the year 5e (37,908) (36,485) ========== ========== Statement of Group Total Recognised Gains and LossesFor the Year Ended 31 December 2004 (Restated) Year ended Year ended 31 December 31 December 2004 2003 £000 £000 Profit for the year 6,104 4,340Actuarial (loss)/gain recognised in the pension scheme (3,920) 393Deferred tax arising on losses / (gains) in the pension scheme 904 (118)Current tax arising on losses in the pension scheme 272 -Currency translation differences on overseas net investments 34 (17) ---------- ----------Total recognised gains and losses relating to the year 3,394 4,598Prior year adjustment (see note 6) (7,177) ========== ----------Total recognised gains and losses since the last annual report (3,783) ========== Note of Group Historical Cost Profits and LossesFor the Year Ended 31 December 2004 There is no material difference between the results as shown in the profit andloss account and their historical cost equivalent. Reconciliation of Group Movement in Shareholders' FundsFor the Year Ended 31 December 2004 (Restated) Year ended Year ended 31 December 31 December 2004 2003 £000 £000 Profit for the year 6,104 4,340Dividends (3,112) (2,838) ---------- ---------- 2,992 1,502 Other recognised net gains and losses relating to the year (2,710) 258New ordinary share capital issued 191 89 ---------- ----------Net increase in shareholders' funds 473 1,849 Opening shareholders' funds(original £37,946,000 restated for prior year adjustment of £7,177,000) 30,769 28,920 ---------- ----------Shareholders' funds at the end of the year 31,242 30,769 ========== ========== Notes to the Financial Statements 1 Segmental Information Year ended 31 December 2004 (Restated) Year ended 31 December 2003 Profit before Profit before Operating interest Operating interest Turnover profit* and tax Net assets Turnover profit* and tax Net assets £000 £000 £000 £000 £000 £000 £000 £000 Continuing operations: Existing operations 228,132 13,636 10,651 47,259 204,687 11,633 9,714 39,639 Acquisitions 1,717 (21) (282) 1,105 - - - - -------- -------- -------- -------- -------- ------- -------- --------Building and Construction Products 229,849 13,615 10,369 48,364 204,687 11,633 9,714 39,639 -------- -------- -------- -------- -------- ------- -------- -------- Continuingoperations: Existing operations 38,803 1,469 1,344 11,578 36,978 959 17 12,572 -------- -------- -------- -------- -------- ------- -------- --------Industrial Products 38,803 1,469 1,344 11,578 36,978 959 17 12,572 -------- -------- -------- -------- -------- ------- -------- -------- Continuingoperations: Existing operations 266,935 15,105 11,995 58,837 241,665 12,592 9,731 52,211 Acquisitions 1,717 (21) (282) 1,105 - - - - -------- -------- -------- -------- -------- ------- -------- --------Total Operations 268,652 15,084 11,713 59,942 241,665 12,592 9,731 52,211 ======== ======== ======== ======== ======= ========Tax and dividends (10,505) (7,929)Long term debtors and other provisions (6,278) (4,226)Net borrowings (37,908) (36,485)Goodwill 26,041 27,240 --------- --------Total Group 31,292 30,811 ========= ========By geographicalorigin UK 267,100 14,828 11,457 31,277 240,448 12,454 9,684 30,127Rest of world 1,552 256 256 15 1,217 138 47 684 -------- -------- -------- -------- -------- ------- -------- --------Total 268,652 15,084 11,713 31,292 241,665 12,592 9,731 30,811 ======== ======== ======== ======== ======== ======= ======== ======== Turnover bygeographicaldestination UK 242,964 220,508Rest of Europe 18,443 11,864Asia 1,874 2,446USA 770 1,135Rest of World 4,601 5,712World -------- --------Total 268,652 241,665 ======== ======== * Operating profit is stated before exceptional items and goodwill amortisation. 2. Exceptional Items Exceptional items from existing operations include £424,000 in respect of thespecial bonus and associated costs incurred in connection with the exercise by D L Grove of share options. The remainder relates primarily to costs arising from the business reorganisation at Redman Fisher Engineering Limited and Joseph Ash Limited. Exceptional items on acquisitions relate to costs incurred in reorganising andintegrating the Lionweld Kennedy operations which were acquired during the year. The profit on sale of properties of £187,000 relates to the sale of BumpersFarm, Chippenham. 3. Taxation (Restated) Year ended Year ended 31 December 31 December 2004 2003 £000 £000 UK corporation tax on profits of the year 2,558 1,315Adjustments in respect of previous periods - (136)Foreign tax 39 22 --------- --------- 2,597 1,201 Deferred taxation: origination and reversal oftiming differencesCurrent year (111) 820Adjustments in respect of previous periods (162) (149) --------- ---------- 2,324 1,872 ========= ====== 4 Earnings per share The weighted average number of shares in issue during the year was 61,999,081(2003: 61,608,085), diluted for the effects of outstanding share options64,805,705 (2003: 62,076,036). Earnings per share have been calculated onearnings of £6,104,000 (2003: £4,340,000 as restated) and earnings per sharebefore exceptional items and goodwill amortisation on earnings of £8,466,000(2003: £6,587,000 as restated). Earnings per share before exceptional items andgoodwill amortisation have been shown because the Directors consider that thisgives a more meaningful indication of the underlying performance of the Group. 5 Notes to the Cash Flow Statement (Restated) Year ended Year ended 31 December 2004 31 December 2003 Before exceptional Exceptional items and items and goodwill goodwill amortisation amortisation Total Total £000 £000 £000 £000 (a) Reconciliation of operating profit to net cash inflow from operating activities Operating Profit 15,084 (3,558) 11,526 10,957 Depreciation 5,585 - 5,585 5,619 Amortisation of goodwill - 1,674 1,674 1,630 Profit on sale of fixed assets (36) - (36) (160) Change in working capital: Stocks (2,613) - (2,613) (573) Debtors (10,284) - (10,284) 3,283 Creditors and 11,954 291 12,245 169 provisions -------- -------- -------- -------- (943) 291 (652) 2,879 -------- -------- -------- -------- Net cash inflow from 19,690 (1,593) 18,097 20,925 operating activities ======== ======== ======== ======== (b) Returns on investments and servicing of finance Interest received 95 417 Interest paid (4,016) (4,303) Interest element of (187) (154) finance lease rentals -------- -------- (4,108) (4,040) ======== ======== (c) Capital expenditure and financial investment Purchase of fixed assets (7,098) (5,442) Sale of fixed assets 812 1,212 -------- -------- (6,286) (4,230) ======== ======== (d) Acquisitions and disposals Purchase of (2,533) - subsidiary undertakings and businesses Sale of businesses - 2,882 (net of disposal costs) Termination of businesses - (1,851) -------- -------- (2,533) 1,031 ======== ========(e) Analysis of net debt Other non- 31 December cash 31 December 2003 Cash Flow changes 2004 £000 £000 £000 £000 Cash at bank and in hand 14,323 (4,422) - 9,901 Debt due within one year (9,563) (1,035) (138) (10,736) Debt due after one year (38,369) 4,612 - (33,757) Finance leases (2,876) 1,102 (1,542) (3,316) leases -------- -------- -------- -------- Net debt (36,485) 257 (1,680) (37,908) ======== ======== ======== ======== 6. Prior Year Restatement The company has adopted FRS 17: Retirement Benefits. The comparative figureshave been restated accordingly. The adoption of FRS 17 has resulted in a decrease in the Group's reported profitbefore tax for the year ended 31 December 2003 of £750,000. There is an overalldecrease in the Group's shareholders' funds as at 31 December 2003 of£7,177,000. The amount of the restatement credited directly to the Group's P&Lreserve for the year ended 31 December 2003 which is included in the movement inshareholders funds above was £275,000. Notes 1 The proposed final dividend will be paid on 13 July 2005 to shareholders on the register on 10 June 2005 (ex-dividend date 8 June 2005). 2 The financial information set out in this preliminary announcement does not constitute the Group's statutory accounts for the year ended 31 December 2004 or the year ended 31 December 2003. Group statutory accounts for 2003 have been delivered to the Registrar of Companies and those for 2004 will be delivered following the Company's Annual General Meeting. The auditor has reported on those accounts; its reports were unqualified and did not contain statements under Section 237(2) or (3) of the Companies Act 1985. 3 The Annual Report will be posted to shareholders on 8 April 2005, and will be available from the Registered Office at 2 Highlands Court, Cranmore Avenue, Shirley, Solihull, B90 4LE. 4 The Annual General Meeting will be held at The Balcony Suite, The National Motorcycle Museum, Solihull at 10.30 a.m. on Friday 13 May 2005. Financial calendar: 13 May 2005 Annual General Meeting 13 July 2005 Payment of proposed final dividend September 2005 Interim results announcement for the period to 30 June January 2006 2005 Payment of interim dividend 5 This preliminary announcement of results for the year ended 31 December 2004 was approved by the Directors on 9 March 2005. EndMarch 9th 2005 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Hill & Smith