13th Jun 2005 07:00
Ensor Holdings PLC13 June 2005 ENSOR HOLDINGS PLC PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 MARCH 2005 CHAIRMAN'S STATEMENT "An excellent result in Ensor's 125th Anniversary year" Profit Sales before tax £24,537,000 £1,661,000 UP 8% UP 55% Profit before Earnings per share exceptional items before exceptional and tax items £1,259,000 2.9p UP 17% UP 16% Dividends per share 1.00p UP 18% Results It is pleasing to report that, in its 125th Anniversary year, Ensor hascontinued to improve results with an increase in profit from the previous year. Our turnover was higher at £24,537,000 (2004 : £22,714,000) and profit beforetax was £1,661,000 (2004 : £1,074,000), a very satisfactory increase of 55%. These results were augmented by an exceptional profit of £402,000 on thedisposal of a surplus property, giving us a useful cash benefit. Our interest payable has reduced slightly to £158,000 (2004 : £167,000), but ourtax charge has increased to £421,000 (2004 : £354,000). Trading Performance Although there is undoubtedly a general slowing in construction activities, ourcompanies continue to take advantage of a widening product mix, maintaining goodmargins with a contribution from our office in Xiamen, China. Indeed, all ourcompanies have reported a good year's trading. We have included in our report pictures of some of the products we sell whichhave been very well received by the market. The product range of our access controls company is being constantly developedincorporating the latest safety devices to keep ahead of increasing Health &Safety regulations. Our specialist distribution company selling contractors tools has continued toprosper and, since the year end, has been provided with additional warehousingcapacity to support further growth. We have recently moved our industrial door and components company to much largerpremises which will allow for expansion of their capacity and product range. We are now preparing to re-locate our security products and fencing company to anew and improved site and we are hoping to complete this during the coming year. Prospects Although we have noted a pressure on our order books since the year end, we havebudgeted for further advances in our results, helped by our latest acquisitionwhich was completed in April 2005. This business, which distributes packagingproducts to a range of specialist industries, was purchased for approximately£800,000 and we are confident of a good return on this investment. We continue to examine other add-on acquisitions and are always conscious of anyinitiatives which will increase shareholder value. Financial and Pensions Our cash flow for the year has been very satisfactory and was enhanced by thesale of some surplus property. Our return on capital has again improved to 21% and the stronger cash positionhas reduced our gearing to a satisfactory 21%. Shareholders' funds have increased to £8.2m. Much has been documented generally regarding pension situations. This year wehave invested increased contributions into the Ensor Group Pension Fund, despitewhich the actuarial calculations show a deficit. This is caused, as is wellpublicised, by the anticipated longer life of participants, the continuedtaxation of investments of the fund and, perhaps, by over-optimistic assumptionsby actuaries in previous financial years. Happily, the notional calculation ofshortfall is a small proportion of our asset value and we have taken steps tocontrol our future commitments. Dividends We increased our interim dividend by 7% to 0.375p and, due to continuedimprovements to earnings per share and a satisfactory cash position, we are nowproposing to increase the final dividend by 25% to 0.625p, giving a totaldividend for the year of 1p per share. This dividend is covered approximately 3times, excluding exceptional items. Subject to approval at the Annual General Meeting, the final dividend will bepaid on 12 August 2005 to shareholders on our Register on 1 July 2005. Management & Staff With these results, I am again indebted to our management and staff for theircontribution to an excellent year and feel sure that they will be workingtowards another successful year. Also, congratulations to all at Ensor on theCompany's 125th Anniversary year. Ken Harrison TDChairman13 June 2005 AUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNTfor the year ended 31 March 2005 2005 2005 2004 2004 £'000 £'000 £'000 £'000TurnoverContinuing operations 24,537 22,714 Cost of sales (17,147) (16,163) ---------- ----------Gross profit 7,390 6,551 Distribution costs (1,070) (937)Administrative expenses (4,903) (4,373) ---------- ---------- (5,973) (5,310)Operating profitContinuing operations 1,625 1,346Additional past service pension contributions (103) -Amortisation of goodwill (105) (105) ---------- ---------- ---------- ---------- 1,417 1,241Exceptional itemProfit on disposal of fixed assets 402 - ---------- ----------Profit on ordinary activities before interest 1,819 1,241 Interest payable (158) (167) ---------- ----------Profit on ordinary activities before taxation 1,661 1,074 Taxation (421) (354) ---------- ----------Profit after taxation 1,240 720 Dividends (294) (251) ---------- ----------Retained profit for the year 946 469 ---------- ---------- Earnings per share:Basic 4.2p 2.5pDiluted 4.1p 2.5pBasic before exceptional items 2.9p 2.5p ---------- ---------- Dividends per share 1.00p 0.85p ---------- ---------- There were no recognised gains or losses other than those shown above. AUDITED BALANCE SHEETSat 31 March 2005 Group Group Company Company 2005 2004 2005 2004 £'000 £'000 £'000 £'000Fixed assetsGoodwill 1,665 1,770 - -Tangible assets 3,559 4,060 1,102 1,576Investments - - 7,372 6,055 ---------- ---------- ---------- ---------- 5,224 5,830 8,474 7,631 ---------- ---------- ---------- ----------Current assetsStocks 4,301 3,820 - -Debtors 4,870 4,716 378 219 ---------- ---------- ---------- ---------- 9,171 8,536 378 219Creditors: amounts falling due within one year (5,930) (6,610) (1,497) (831) ---------- ---------- ---------- ----------Net current assets/(liabilities) 3,241 1,926 (1,119) (612) ---------- ---------- ---------- ---------- Total assets less current liabilities 8,465 7,756 7,355 7,019 Creditors: amounts falling due after more than one year (265) (477) (250) (463) Provisions for liabilities and chargesDeferred tax - (26) - - ---------- ---------- ---------- ---------- 8,200 7,253 7,105 6,556 ---------- ---------- ---------- ----------Capital and reservesCalled up share capital 2,941 2,940 2,941 2,940Share premium account 470 470 470 470Revaluation reserve 883 946 197 263Profit and loss account 3,906 2,897 3,497 2,883 ---------- ---------- ---------- ----------Equity shareholders' funds 8,200 7,253 7,105 6,556 ---------- ---------- ---------- ---------- AUDITED CONSOLIDATED CASH FLOW STATEMENTfor the year ended 31 March 2005 2005 2004 £'000 £'000 Net cash inflow from operating activities 1,418 1,501 Returns on investments and servicing of financeInterest paid (154) (162)Interest element of finance lease payments (4) (5) ---------- ----------Net cash outflow from servicing of finance (158) (167) ---------- ----------TaxationUK corporation tax paid (341) (256) ---------- ----------Net cash outflow from payment of taxation (341) (256) ---------- ----------Capital expenditure and financial investmentPurchase of tangible fixed assets (475) (315)Sale of tangible fixed assets 990 70 ---------- ----------Net cash inflow/(outflow) from capital expenditure and financial investment 515 (245) ---------- ---------- Equity dividends paid (257) (236) ---------- ---------- Net cash inflow before use of liquid resources and financing 1,177 597 Financing Issue of shares 1 25Repayment of term loans (200) (200)Capital element of finance lease payments (33) (29) ---------- ----------Net cash outflow from financing (232) (204) ---------- ---------- Increase in cash in the year 945 393 ---------- ---------- NOTES 1. Accounting policies Basis of preparation The financial statements are prepared in accordance with applicable accountingstandards under the historical cost convention as modified by the revaluation ofcertain fixed assets. The directors have reviewed the accounting policies in accordance with FRS 18 "Accounting Policies" and have concluded that no changes were required from theprevious year. Basis of consolidation The Group financial statements consolidate the financial statements of theCompany and its subsidiary undertakings at 31 March using acquisitionaccounting. The results of subsidiary undertakings acquired or disposed ofduring a financial year are included from, or up to, the effective date ofacquisition or disposal. On acquisition of a subsidiary, all of thesubsidiary's assets and liabilities existing at the date of acquisition arerecorded at their fair values reflecting their condition at that date. Profits or losses on intra-group transactions are eliminated in full. 2. Earnings per share The calculation of earnings per share is based upon the profit after taxation of£1,240,000 (2004 : £720,000) divided by the weighted average number of ordinaryshares in issue during the year, 29,402,454 (2004 : 29,346,178). The fullydiluted earnings per share is based upon the weighted average of 30,423,482(2004 : 30,298,445). The dilution in both years is due to subsisting shareoptions. 3. Reconciliation of operating profit to net cash inflow from operating activities 2005 2004 £'000 £'000 Operating profit 1,417 1,241Depreciation of tangible fixed assets 474 453Amortisation of intangible assets 105 105(Profit)/loss on sale of tangible fixed assets (25) 9Increase in stocks (481) (330)(Increase)/decrease in debtors (150) 21Increase in creditors 78 2 ---------- ----------Net cash inflow from operating activities 1,418 1,501 ---------- ---------- 4. Analysis of changes in net debt At 31 March Cashflows Non-cash At 31 March 2004 items 2005 £'000 £'000 £'000 £'000 Bank overdraft (2,135) 945 - (1,190)Bank loans (650) 200 - (450)Finance leases (37) 33 (61) (65) ---------- ---------- ---------- ---------- (2,822) 1,178 (61) (1,705) ---------- ---------- ---------- ---------- 5. Reconciliation of net cash flow to movement in net debt 2005 2004 £'000 £'000 Increase in cash in the year 945 393Cash outflow from repayment of debt 233 229 ---------- ----------Movement in net debt arising from cash flow 1,178 622New finance leases (61) - ---------- ----------Movement in net debt 1,117 622Net debt at 1 April 2004 (2,822) (3,444) ---------- ----------Net debt at 31 March 2005 (1,705) (2,822) ---------- ---------- 6. Basis of preparation The financial information set out in this preliminary announcement of resultsdoes not constitute the Company's statutory accounts for the years ended 31March 2005 or 31 March 2004 but is derived from those accounts. Statutoryaccounts for 2004 have been delivered to the Registrar and those for 2005 willbe delivered following the Company's Annual General Meeting. The Auditors havereported on these accounts. Their reports were unqualified and did not containstatements under section 237(2) or (3) of the Companies Act 1985. 7. Other information The Annual General Meeting of the Company will be held at the Company'sregistered office, Ellard House, Dallimore Road, Manchester M23 9NX at 10.00amon Thursday 21 July 2005. The Report and Accounts will be posted to shareholders shortly. Additionalcopies of the Annual Report and of this statement will be available at theCompany's registered office. Enquiries: Ensor Holdings PLCKen Harrison0161 945 5953 Westhouse Securities LLPDavid Simmons0161 838 9140 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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