26th Oct 2007 07:01
Gleeson(M J)Group PLC26 October 2007 Friday 26 October 2007 M J GLEESON GROUP PLC - PRELIMINARY ANNOUNCEMENT Gleeson announces much improved results for the year to 30 June 2007. The yearhas been one of successful execution of the transformation strategy announced inMarch 2006, following the Strategic Review. KEY POINTS - FINANCIAL • On continuing operations, profit before tax was much improved at £8.3m (2006: loss £12.3m) on revenue of £194.3m (2006: £189.0m) • Profit for the year attributable to equity holders of the parent company increased to £30.0m (2006: £9.7m). • Basic earnings per share from continuing operations was 14.3p (2006: loss 23.3p) • A final dividend per share of 7.3p (2006: 6.9p), up 5.8%, is proposed, making a total for the year of 9.2p (2006: 8.5p), up 8.2%. • Year end total equity attributable to the equity holders of the parent company increased by 17.3% to £183.3m (2006: £156.2m), representing net assets per share of 351p (2006: 303p), up 15.8%. • Net cash at 30 June 2007 of £38.0m compared with net debt of £14.7m at 30 June 2006 and £102.3m at 31 December 2005. KEY POINTS - COMMERCIAL • Gleeson Regeneration & Homes and Gleeson Strategic Land made an operating profit of £4.1m (2006: loss £11.7m). This much improved performance reflects two key factors: an increase in unit sales to 639 (2006: 487) and the inclusion in 2006 of a £7.5m charge in relation to land value write-downs. Importantly, in April, the Group won its first regeneration contract in the South, at Ashford in Kent. • Over the last two years, Powerminster Gleeson Services has transformed itself from an M&E contractor, working as a sub-contractor to principal contractors, into a property maintenance service provider. From a material loss in 2005, the business has now been profitable for the last two years. • Gleeson Capital Solutions, which focuses on PFI investments, had a successful year, both operationally and financially. • Year end employees reduced to 461 (2006: 1,244), mainly as a result of the disposal of the Engineering Division in October 2006. PROSPECTS Dermot Gleeson, Chairman, stated "The recent turbulence in the financial marketshas resulted in mortgage lenders becoming more cautious. This, combined withhigher interest rates, has had a marked impact on buyer confidence and houseprices in many parts of the country. At this stage it is not clear howprotracted or severe this market adjustment is likely to be. In these circumstances, it is extremely difficult to forecast house sales.However, the Board believes that the Group's prominent and highly respectedpresence in the regeneration sector, together with its strategic land business,will enable it to develop strategies to mitigate the effects of a weaker marketand to respond effectively to the challenges and opportunities ahead. The announcement on 31 March 2006 of the outcome of the Group's Strategic Reviewreferred to the possibility of a return of cash to shareholders following thecompletion of the Board's transformation programme. In the light of theuncertainty described above, the Board has decided to defer taking a decision about any return until it has had the opportunity to evaluate thoroughly theimplications of changes in the market that are still unfolding." Enquiries: M J Gleeson Group plc 01252-360 300Paul Wallwork (Group Chief Executive)Chris Holt (Group Finance Director) Bankside Consultants LimitedIan Seaton 020-7367 8891Rose Oddy 020-7367 8853 PRELIMINARY STATEMENT The year has been one of successful execution of the transformation strategyannounced in March 2006, following the Strategic Review. On 31 March 2006, Gleeson announced its decision to concentrate on, andsubstantially increase its involvement in, three related areas: housingregeneration, strategic land trading and commercial property development. In the Interim Announcement of 30 March 2007, Gleeson announced its decision toexit the commercial property development market. This decision reflected theBoard's belief that this market had probably peaked and that Gleeson's cashresources would be better invested in housing regeneration, the Group'sprincipal focus. The Group continues to reduce the scale of its traditional housebuildingbusiness and to run-off its commercial property businesses. In addition, it has continuing responsibility for some legacy issues relating to the Building Contracting Division (which was sold in August 2005) and the Engineering Division (which was sold in October 2006). Nonetheless, by the year end, the Group had substantially delivered upon the strategy announced in March2006. FINANCIAL OVERVIEW The results for the year to 30 June 2007 reflect the transitional nature of theperiod concerned. I am pleased to report that the profit before tax from continuing operations wasmuch improved at £8.3m (2006: loss £12.3m) and that profit for the yearattributable to equity holders of the parent company increased to £30.0m (2006:£9.7m). On revenue from continuing operations of £194.3m (2006: £189.0m), operatingprofit increased to £5.7m (2006: loss £8.3m). Net financial income was £2.6m(2006: net financial expense £4.0m). Basic earnings per share from continuingoperations was 14.3p (2006: loss 23.3p). Discontinued operations in the year under review produced a profit after tax of£22.5m (2006: £21.6m). These operations comprised the Engineering Division plus,in the prior year, Gleeson MCL Limited and Concrete Repairs Limited. The year end total equity attributable to the equity holders of the parent company increased by 17.3% to £183.3m (2006: £156.2m), representing net assets per share of 351p (2006: 303p), up 15.8%. Net cash at 30 June 2007 of £38.0m compared with net debt of £14.7m at 30 June 2006 and £102.3m at 31 December 2005. BUSINESS REVIEW The Group's continuing operations include ongoing business units and businessunits in run-off. The Group's ongoing business units - Gleeson Regeneration &Homes and Gleeson Strategic Land; Powerminster Gleeson Services; and GleesonCapital Solutions - all improved their performance in the year. The Group'sbusiness units in run-off - Gleeson Properties and Gleeson Construction Services- also performed satisfactorily. Performance Gleeson Regeneration & Homes and Gleeson Strategic Land Operating profit for the year was £4.1m (2006: loss £11.7m). The business segment's much improved performance reflects two key factors: anincrease in unit volume from 487 to 639 and the inclusion in the prior year of a£7.5m charge in relation to land value write-downs. Gleeson Regeneration & Homes requires capital investment to fund both landpurchases and working capital, regardless of whether the work flows from thepublic or private sector. The business has grown organically, assisted by theGroup's strong reputation in this sector. Gleeson Strategic Land has a lower capital requirement and generates asignificant return on capital employed. Again, the business has grown byorganic means. Gleeson Regeneration & Homes North Unit volume increased from 259 to 467. In the year, build and sales activity increased significantly. Additionally,projects at Gorton Monastery, East Manchester and Doe Lea, Chesterfield weresecured. Subsequently, as part of a consortium, the business unit has secured a contract for the provision of housing for private sale on land provided by the Local Authority ("LA") at North Huyton, Liverpool. The business unit was active on five regeneration sites during the year, alongwith various brown and green field private developments. These were atNorthumberland Street and Clevedon Street in Liverpool, Grove Village andBeswick in East Manchester, and Norfolk Park in Sheffield. Richard Edgington has now joined the business unit as Managing Director. Richardhas an extensive track record in both traditional and regeneration housebuilding and was previously with Bellway Homes. Gleeson Regeneration & Homes South During the year, the business has been transforming itself from beingpredominantly a traditional green field housebuilder to a more balanced businessmodel that encompasses estate regeneration and brown field privatehousebuilding. Unit volume decreased from 228 to 172. This transformation has required and will continue to require the achievement ofthe following objectives: - to liquidate work in progress on legacy sites. This has been materially completed in the year; - to finalise construction works on sites on which the housing units had previously been sold. This work was materially completed in the year and is being managed within the accruals previously made; and - to develop a workload in estate regeneration. The business unit secured an estate regeneration project in Ashford, Kent in April 2007, to build and sell, over a five year period, c.440 new houses, 70% of which have been pre-sold to a Registered Social Landlord ("RSL"). Gleeson Strategic Land During the year, one option, over 45 acres at Hassocks, West Sussex, wasexercised and sold to a major house builder. Also, eight option agreements wereentered into over an aggregate 740 acres of land. As at 30 June 2007, the Group had 3,064 acres (2006: 2,369 acres) held under 65(2006: 58) option and developments agreements. The business has not in recentyears purchased land outright. The majority of the land held under option anddevelopment agreements is in Southern England, around Kent, Surrey, Sussex,Berkshire, Oxfordshire and Wiltshire. Powerminster Gleeson Services Operating profit for the year was £0.7m (2006: £0.6m). Over the last two years, Powerminster Gleeson Services has transformed itselffrom an M&E contractor, working as a sub-contractor to principal contractors,into a property maintenance service provider, of both planned and reactiveservices, of a compliance and non-compliance nature. It has also divested itstraining activities (SBST Sheffield). The business is increasing its long-termservice and repair work for RSLs and LAs. From a material loss in 2005, the business has now been profitable for the lasttwo years, reflecting the transformation described above. Whilst revenue hasdeclined from the prior year margins have improved in a sector which has a lowcapital investment requirement. Gleeson Capital Solutions Operating profit for the year was £1.6m (2006: loss £0.1m). Gleeson Capital Solutions had a successful year, both operationally andfinancially. Their financial results benefited from the disposal of two non-corePFI investments: Salisbury Hospital and Sheffield Schools, for proceeds of£4.4m and a profit of £2.3m. At 30 June 2007, Gleeson Capital Solutions held four PFI investments, two ofwhich are considered non-core and will be disposed of when appropriate. Theremaining two are the 49% investment in Grove Village Limited and the 33%investment in Chrysalis Limited, the special purpose company established todeliver the Ashford PFI project, both core estate regeneration projects. Since the year end, Gleeson Capital Solutions has secured financial close on theCheshire Extra Care Homes project. In addition to the Group's return on its 33%investment in Avantage (Cheshire) Limited, the special purpose companyestablished to deliver this project, this business opportunity will bringlong-term facilities management work to Powerminster Gleeson Services. Gleeson Properties Operating profit for the year was £4.6m (2006: £11.3m). As at 30 June 2007, the Group had 12 commercial property development projects atvarious stages of completion. In addition, the Group had only two remaininginvestment properties for disposal. It is the intention of the Group that the orderly sale of the completedcommercial property development projects and the investment properties will becompleted by December 2008. Gleeson Construction Services Limited Continuing Operations The Building Contracting Division recorded no profit or loss for the year (2006:loss £2.6m). Discontinued Operations During the year, a profit after tax of £22.5m was recorded (2006: £21.6m). The£22.5m is the net of the £26.7m gain on disposal of certain assets andliabilities of the engineering business and a £4.2m loss from its tradingactivities. The prior year result is the sum of a gain of £12.3m on the disposalof Gleeson MCL Limited and Concrete Repairs Limited and the trading profit of£9.3m for these businesses and the Engineering Division. Accruals for retained contracts are maintained in relation to the run-off ofboth discontinued and continuing operations. BOARD Since November 2006, the Board has had six members. These currently comprise twoExecutive Directors - Paul Wallwork (Group Chief Executive) and Chris Holt(Group Finance Director), three independent Non-Executive Directors - RossAncell, Terry Morgan and Eric Stobart and myself (Non-Executive Chairman).Accordingly, the Board is smaller than hitherto and has a majority ofNon-Executive Directors. EMPLOYEES The average number of employees reduced in the year from 1,996 to 669 and thenumber at the year end was 461 (2006: 1,244). This reduction results mainly fromthe disposal of the Engineering Division. The Board would like to thank both continuing employees and those who left theGroup during the year for their significant individual and collectivecontributions, especially given the substantial restructuring that has takenplace during the year. DIVIDENDS A final dividend of 7.3p per share is proposed, payable on 17 December 2007 toshareholders on the register on 16 November 2007. This represents an increase of 5.8% on last year's final dividend of 6.9p per share. Together with the interim dividend of 1.9p per share (2006:1.6p), dividends forthe year will total 9.2p (2006: 8.5p) per share, an increase of 8.2%, covered1.6 times by basic earning per share from continuing operations. PROSPECTS The recent turbulence in the financial markets has resulted in mortgage lendersbecoming more cautious. This, combined with higher interest rates, has had amarked impact on buyer confidence and house prices in many parts of the country.At this stage it is not clear how protracted or severe this market adjustment islikely to be. In these circumstances, it is extremely difficult to forecast house sales.However, the Board believes that the Group's prominent and highly respectedpresence in the regeneration sector, together with its strategic land business,will enable it to develop strategies to mitigate the effects of a weaker marketand to respond effectively to the challenges and opportunities ahead. The announcement on 31 March 2006 of the outcome of the Group's Strategic Reviewreferred to the possibility of a return of cash to shareholders following thecompletion of the Board's transformation programme. In the light of theuncertainty described above, the Board has decided to defer taking a decision about any return until it has had the opportunity to evaluate thoroughly theimplications of changes in the market that are still unfolding. Dermot Gleeson 26 October 2007Chairman CONSOLIDATED INCOME STATEMENTFOR THE YEAR ENDED 30 JUNE 2007 2007 2006 £000 £000 RestatedContinuing operationsRevenue 194,252 188,958Cost of sales (171,069) (177,721) ---------- ---------Gross profit 23,183 11,237 Administrative expenses (22,760) (27,450)Profit on sale of investments in PFI projects 2,281 784Profit on sale of investment and owneroccupied properties 3,274 6,641Valuation gains on investment properties 50 585Share of loss of joint ventures (net of tax) (327) (110) ---------- ---------Operating profit 5,701 (8,313) Financial income 4,028 2,249Financial expenses (1,462) (6,260) ---------- ---------Profit/(loss) before tax 8,267 (12,324) Tax (830) 402 ---------- ---------Profit/(loss) for the year from continuingoperations 7,437 (11,922) Discontinued operationsProfit for the year from discontinuedoperations and gain on sale of discontinued operations (net of tax) 22,521 21,574 ---------- ---------Profit for the year attributable toequity holders of the parent company 29,958 9,652 ========== ========= Earnings per share attributable to equity holders of parentcompanyBasic 57.76 18.86 ---------- --------- Diluted 56.83 18.86 ---------- --------- Earnings/(loss) per share from continuing operationsBasic 14.34 (23.30) ---------- --------- Diluted 14.11 (23.30) ---------- --------- CONSOLIDATED BALANCE SHEET AS AT JUNE 30 2007 2007 2006 £000 £000 RestatedNon-current assetsProperty, plant andequipment 2,413 4,825Investment properties 5,454 5,010Investments in jointventures 2,830 1,890Loans and otherinvestments 22,419 14,112Trade and otherreceivables 9,469 549Deferred tax assets 3,219 4,849 -------- -------------- 45,804 31,235 ======== ==============Current assetsInventories 81,882 134,195Trade and otherreceivables 91,587 94,010UK corporation tax - 3,502Cash and cash equivalents 38,042 53Assets classified asheld for sale 2,739 16,453 -------- -------------- 214,250 248,213 ======== ============== Total assets 260,054 279,448 ======== ============== Current liabilitiesBank overdrafts - (14,706)Trade and otherpayables (75,460) (108,430)UK corporation tax (1,272) -Liabilities directlyassociated withassets classified asheld for sale - (97) -------- --------------Total liabilities (76,732) (123,233) ======== ============== -------- --------------Net assets 183,322 156,215 ======== ============== EquityShare capital 1,044 1,032Share premium account 5,465 3,974Capital redemptionreserve 120 120Revaluation reserve 638 2,742Retained earnings 176,055 148,347 -------- --------------Total equity attributable toequity holders of the parent company 183,322 156,215 ======== ============== CONSOLIDATED STATEMENT OF RECOGNISEDINCOME AND EXPENSEFOR THE YEAR ENDED 30 JUNE 2007 2007 2006 £000 £000 Profit for the year attributableto equity holders of the parent company 29,958 9,652 -------- -------- Revaluation of owner occupied - (355)propertyDeferred tax on owner occupied - 2property -------- --------Net expense recognised directly in - (353)equity -------- -------- Total recognised income/(expense) for theyear attributable to equity holders of the parentcompany 29,958 9,299 ======== ======== CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 30 JUNE 2007 2007 2006 £000 £000 RestatedOperating activitiesProfit/(loss) before tax from continuingoperations 8,267 (12,324)(Loss)/profit from discontinued operations (4,216) 10,713 ------------- ----------- 4,051 (1,611)Depreciation of property, plant and equipment 1,090 2,902Share-based payments 1,111 1,779Profit on sale of investment and owner occupiedproperties (3,274) (6,641)Loss/(profit) on sale of other property, plantand equipment 129 (3,791)Profit on sale of investments in PFI projects (2,281) (784)Loss on disposal of investments in joint ventures 301 -Valuation gains on investment properties (50) (585)Share of loss of joint ventures (net of tax) 327 110New ground rents capitalised (286) (533)Financial income (4,028) (2,583)Financial expenses 1,462 6,260 ------------- -----------Operating cash flows before movements in workingcapital (1,448) (5,477) Decrease in inventories 49,187 43,000Increase in receivables (11,285) (2,891)Decrease in payables (14,174) (17,156) ----------- ----------Cash generated from operating activities 22,280 17,476Tax received 3,548 188Tax paid (2,567) -Interest paid (1,310) (7,293) ------------- -----------Net cash flows from operating activities 21,951 10,371 ------------- ----------- Investing activitiesProceeds from disposal of net assets held for sale - (15,898)Proceeds from disposal of subsidiary undertakings,net of cash disposed 4,016 19,195Proceeds from disposal of investments in jointventures 71 -Proceeds from disposal of sale of assets andliabilities - Engineering Division 15,900 -Proceeds from disposal of investment and owner occupiedproperties 15,882 34,397Proceeds from disposal of other property, plant andequipment 43 10,267Proceeds from disposal of investments in PFIprojects 4,442 757Interest received 1,779 1,635Purchase of property, plant and equipment (542) (6,313)Net increase in loans to joint ventures andother investments (6,885) (4,411) --------------- ---------Net cash flows from investing activities 34,706 39,629 --------------- --------- Financing activitiesProceeds from issue of shares 1,503 215Purchase of own shares (900) -Dividends paid (4,565) (4,119) --------------- ---------Net cash flows from financing activities (3,962) (3,904) --------------- --------- Net increase in cash and cash equivalents 52,695 46,096 Cash and cash equivalents at beginning of year (14,653) (60,749) --------------- ---------Cash and cash equivalents at end of year 38,042 (14,653) --------------- --------- Segmental analysis For management purposes, the Group is organised into five operating divisions,Regeneration & Homes and Strategic Land, Capital Solutions,Services, Property and Construction Services. The divisions are the basis on which the Group reports its primary segment information. Capital Solutions, Services and Construction Services have been identified as separate segments, previously Construction Services. Comparative segment results have been reclassified for the identification of the separate segments and for the recognition of the Engineering Division as a discontinued operation. Segment information about the Group's continuing operations, includingjoint ventures, is presented below: 2007 2006 £000 £000 RestatedRevenue Continuing activities: ------------------------ Regeneration & Homes and Strategic 156,991 138,413 Land Capital Solutions 679 266 Services 17,483 19,290 Property 16,290 2,896 Construction Services 2,809 28,093 --------- -------- 194,252 188,958 --------- -------- Discontinued activities: ------------------------- Construction Services 59,982 249,627 --------- -------- Total revenue 254,234 438,585 ========= ======== Profit/(loss) onactivities Regeneration & Homes and Strategic 4,072 (11,673) Land Capital Solutions 1,649 (113) Services 722 576 Property 4,612 11,310 Construction Services - (2,598) --------- -------- 11,055 (2,498) Group activities (5,354) (5,815) Finance income 4,028 2,249 Finance costs (1,462) (6,260) --------- -------- Profit / (loss) before 8,267 (12,324) tax Tax (830) 402 --------- -------- Profit/(loss) for the period from 7,437 (11,922) continuing operations Profit for the period from 22,521 21,574 discontinued operations and gain on sale of discontinued operations (net of tax) --------- -------- Profit for the period attributable to 29,958 9,652 equity holders of the parent ========= ======== company All rental incomes of £682,000 (2006: £2,394,000) are reported within the Property segment, with the balance of the Property segment revenue being provision of goods. All long-term contract revenues are reported within Construction Services segment except for £35,097,000(2006: £25,093,000) which is reported within Regeneration & Homes and Strategic Land segment with the balance of that segment being the provision of goods. Service revenues are reported by Capital Solutions and Services. Discontinued operations relates to the trading activities and the net sale proceeds of the Engineering Division and the preceding year also includes Gleeson MCL Limited and Concrete Repairs Limited, which were previously classified as construction services. Discontinued operations In October 2006 the Group disposed of certain assets and liabilities of the Engineering Division to Black & Veatch Limited. Assets and liabilities relating to this operation were not classified as held for sale as at 30 June 2006 as they did not qualify for such treatment at that date. The results for the prior year have been restated to include the results of the Engineering Division as this operation is now classified as a discontinued operation. In June 2006 the Group disposed of Concrete Repairs Limited. Assets and liabilities relating to Concrete Repairs were not classified as assets held forsale as at 30 June 2005 as they did not qualify for such treatment at that date. In March 2006 the Group disposed of Gleeson MCL Limited. Assets and liabilitiesrelating to Gleeson MCL were not classified as held for sale as at 30 June 2005 as they did not qualify for such treatment at that date. Certain assets and liabilities of the Building Contracting Division were classified as held for sale at 30 June 2005 under IFRS 5; these assets and liabilities were sold on 1 August 2005. The trading activities of these assets and liabilities prior to the sale date, together with the retained contracts ofthe Building Contracting Division, were accounted for as continuing operations during the year. 2007 2006 £000 £000 £000 £000 Restated RestatedRevenue 59,982 249,627Cost of sales (62,244) (226,140) -------- ---------Gross (loss)/profit (2,262) 23,487 Staff costs (576) (6,168)Other expenses (1,378) (6,940) -------- ---------Operating (loss)/profit (4,216) 10,379 Gain on disposal of discontinuedoperations 31,250 12,320Financial income - 334 -------- ---------Profit before tax 27,034 23,033TaxTax on discontinued operations for theperiod - (1,459)Tax on gain on disposal ofdiscontinued operations (4,513) - -------- ------- (4,513) (1,459) -------- ---------Profit for the period fromdiscontinued operations 22,521 21,574 ======== ========= The post-tax gain on discontinued operations wasdetermined as follows: 2007 2006 £000 £000 £000 £000 Consideration receivable:Cash 36,000 24,677 Less net assets disposed:Goodwill - 4,794Property, plant and equipment 650 661Trade and other receivables 15,812 13,684Cash and bank 12,212 5,482Trade and other payables (28,674) (12,264) -------- - -------- (12,357) -------- --------Pre-tax gain ondisposal of 36,000 12,320discontinuedoperations Accrual for onerousleases and management fees (3,676) - Cost of disposal (1,074) - -------- -------- 31,250 12,320 Tax (4,513) - -------- -------- 26,737 12,320 ======== ======== The net cash inflowcomprises: Cash received 30,400 24,677Cash payment, see below (14,500) (5,482) -------- -------- 15,900 19,195 ======== ======== The total proceeds for the sale of Engineering Division were £36,000,000, of which,£27,900,000 was received upon completion of the transaction and the remaining £8,100,000 became payable upon the completion of certain conditions. At 30 June 2007 £5,600,000 remained outstanding. The disposal resulted in an initial transfer of £14,500,000 to Black & Veatch to zero the estimated negative net assets of the Engineering Division at completion, which following the finalisation of the completion account, was amended to £12,212,000. The balance of £2,288,000 relating to this adjustment was received in July 2007. The cash flow statement includes the following relating to profit on discontinuedoperations: 2007 2006 £000 £000 Restated Operating activities (4,216) 10,713Investing activities - 334 -------- -------- (4,216) 11,047 ======== ======== Dividends 2007 2006 £000 £000Amounts recognised as distributions to equity holdersin the period: Final dividend for the year ended 30 June2006 of 6.90p (2005: 6.50p) per share 3,576 3,308Interim dividend for the year ended 30 June2007 of 1.90p (2006: 1.60p) per share 989 811 -------- -------- 4,565 4,119 ======== ======== Proposed final dividend for the year ended 30June 2007 of 7.3p (2006: 6.90p) per share 3,810 3,576 ======== ======== The proposed final dividend is subject to approval by equity holders at the Annual General Meeting and has not been included as a liability in these financial statements. Earnings per share From continuing and discontinued operationsThe calculation of the basic and diluted earnings per share is based on thefollowing data: Earnings 2007 2006 £000 £000 RestatedEarnings for the purposes of basic earnings per share,being net profit attributable to equity holders of the parentcompanyProfit/(loss) from continuing operations 7,437 (11,922)Profit from discontinued operations 22,521 21,574 -------- --------Earnings for the purposes of basic and dilutedearnings per share 29,958 9,652 ======== ======== Number of shares 2007 2006 No. 000 No. 000 Weighted average number of ordinary shares for the purposesof basic earnings per share 51,865 51,173Effect of dilutive potential ordinary shares:Share options 853 - -------- --------Weighted average number of ordinary shares for the purposesof diluted earnings per share 52,718 51,173 ======== ======== From continuing operations 2007 2006 p p Restated Basic 14.34 (23.30) ======== ======== Diluted 14.11 (23.30) ======== ======== From discontinued operations: 2007 2006 p p Restated Basic 43.42 42.16 ======== ======== Diluted 42.72 42.16 ======== ======== From continuing and discontinued operations: 2007 2006 p p Restated Basic 57.76 18.86 ======== ======== Diluted 56.83 18.86 ======== ======== The prior year earnings per share from continuing operations and from discontinuedoperations have been restated due to the Engineering Division being classified as a discontinued operation. As prior year continuing operations were a loss there is no dilutive effect. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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