28th Mar 2008 07:01
Judges Capital PLC28 March 2008 28 March 2008 Judges Capital plc ("Judges Capital" or the "Company") Preliminary Results for the year ended 31 December 2007 JUDGES CAPITAL REPORTS RECORD RESULTS FOR 2007 Highlights • Record sales of £6.2 million (2006: £5.2 million)• Record profit of £836,000 (2006: £516,000) before tax, gains on divestments and amortisation• Record adjusted fully diluted earnings per share of 12.9p (2006: 8.6p)• Record order book• Proposed final dividend of 2.2p, making 3.3p for the year (2006: 3p)• All trading subsidiaries profitable and cash generative• Cash balances in excess of £900,000; net debt reduced to £2 million• Favourable start to current year's trading Alex Hambro, Chairman of Judges Capital, commented: "Benefiting from a strongorder book, the Group experienced a favourable start to 2008. Your Directors areoptimistic about the prospects for 2008, always bearing in mind the uncertainmacro-economic climate currently pertaining in global markets and the highproportion of the Group's turnover which is derived from overseas." Chairman's StatementI am delighted to report that your Company achieved record results for 2007.Revenue advanced from £5.2 million in 2006 to £6.2 million and generated profitof £836,000 before tax, gains on the disposal of securities and amortisation,compared with £516,000 in the previous year. Earnings per share, similarlyadjusted, rose from 8.6p to 12.9p (fully diluted) and from 9.9p to 15.0p(basic). After gains and amortisation, pre tax profit totalled £858,000 (2006: £281,000).This equates to fully diluted earnings per share of 13.3p (2006: 4.8p) andbasic earnings per share of 15.5p (2006: 5.4p). IFRSWith effect from 1 January 2007, the Company is required to present itsconsolidated financial statements in accordance with International FinancialReporting Standards (IFRS). The financial information in this preliminaryannouncement has been prepared in accordance with accounting policies which arebased on IFRS and comparatives have been restated accordingly. Constitution of the GroupAll Group subsidiaries were owned throughout the financial year to 31 December2007. The accounts for the previous year included a 10-month contribution fromUHV Design and a four-month contribution from Aitchee. TradingAll our operations traded strongly during the year and achieved increases insales and EBIT. Activity proved particularly buoyant towards the end of theyear, a momentum that enabled the Group to enter 2008 with an order book almostdouble the level in hand at the onset of 2007. Despite the relative strength of sterling, the robust performance of the Groupin terms of sales, margins and orders is testament to our acquired companies'solid niche positioning in their respective world markets. Financial PerformanceFavourable trading contributed to a satisfactory increase in our year-end cashbalances which stood at £910,000 (2006: £824,000) and to the reduction in netdebt from £2.4 million to £2.0 million. A significant proportion of our debt isdenominated in foreign currency to alleviate the impact of exchange fluctuationson export activity. During the year our last significant investment in securities was sold: anoffer for Poole Investments became unconditional in August 2007, a developmentwhich resulted in cash proceeds of £342,000 and a pre-tax gain of £142,000. DividendsYour Board is pleased to recommend a final dividend of 2.2p (2006: 2p) which,subject to approval at the forthcoming Annual General Meeting on 22 May 2008,would make a total distribution of 3.3p for the year (2006: 3p). The level ofcover by adjusted basic earnings per share has risen from 3 times to 4 times,notwithstanding the proposed 10 per cent increase. The proposed dividend will be payable on Friday 4 July 2008 to shareholders onthe register on 6 June 2008 and the shares will go ex-dividend on 4 June 2008. Current trading and prospectsBenefiting from a strong order book, the Group experienced a favourable start to2008 and, in the opinion of your Directors, enjoys good visibility for the firsthalf of the year. Your Directors are optimistic about the prospects for 2008,always bearing in mind the uncertain macro-economic climate currently pertainingin global markets and the high proportion of the Group's turnover which isderived from overseas. Since the year-end, the Company has contracted to purchase a freehold propertythat adjoins the FTT factory for £490,000. This will enable Aitchee to berelocated into larger, more suitable premises and will serve to enhance theongoing cooperation between Aitchee and FTT. Your Board is progressing with the 'whitewash' resolution referred to in lastJanuary's trading statement, in order to enable the Company to purchase its ownshares without an obligation being incurred by certain shareholders to make anoffer for the entire share capital. Such a proposal to shareholders forms partof the Board's efforts to improve the liquidity of the Company's shares. Consolidation has been the hallmark of 2007 and, in the wake of an excellenttrading performance reflected in record sales and profits, your Board isconscious of the benefits to be derived from a significant expansion in thescale of the Group. To this end your Directors are working hard to convert anencouraging pipeline of prospective deals into tangible and value enhancingtransactions. I would like to take this opportunity to convey the Board's thanks andappreciation to all our employees for their invaluable contributions to a firstclass trading result. Alex HambroChairman Enquiries: David Cicurel, CEO, Judges Capital:Tel: 01342 323 600 Pascal Keane, Shore Capital:Tel: 020 7408 4090 Melvyn Marckus, Cardew Group:Tel: 07775 896 491 JUDGES CAPITAL plc CONSOLIDATED INCOME STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2007 2007 2006 Notes £ £ Revenue 6,191,965 5,195,325 Operating costs (5,267,084) (4,712,635) __________ __________Operating profit 924,881 482,690 Profit/(loss) on disposal of available-for-sale investments 142,217 (6,145)Interest receivable 32,987 32,041Interest payable (241,772) (227,418) __________ __________Profit before tax 858,313 281,168 Taxation (231,496) (84,653) __________ __________Profit for the year 626,817 196,515 __________ __________Attributable to:Equity holders of the parent company 552,468 190,105Minority interest 74,349 6,410 __________ __________Earnings per share - total and continuingBasic 2 15.5p 5.4pDiluted 2 13.3p 4.8p __________ __________ JUDGES CAPITAL plc CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2007 2007 2006 Note £ £ASSETSNon-current assetsProperty, plant and equipment 274,626 295,468Goodwill 4,383,347 4,389,963Other intangible assets 75,909 195,924Available-for-sale investments 20,000 210,950 _________ _________ 4,753,882 5,092,305 _________ _________Current assetsInventories 553,311 402,941Trade and other receivables 1,543,011 1,249,039Cash and cash equivalents 910,366 824,156 _________ _________ 3,006,688 2,476,136 _________ _________Total assets 7,760,570 7,568,441 _________ _________LIABILITIESCurrent liabilitiesTrade and other payables (877,226) (779,708)Current portion of long-term borrowings 3 (527,008) (421,813)Current tax payable (299,771) (261,718) _________ _________ (1,704,005) (1,463,239) _________ _________Non-current liabilitiesLong-term borrowings 3 (2,335,751) (2,835,940)Deferred tax liabilities (35,934) (89,505) _________ _________ (2,371,685) (2,925,445) _________ _________Total liabilities (4,075,690) (4,388,684) _________ _________Net assets 3,684,880 3,179,757 _________ _________EQUITYShare capital 178,044 178,044Share premium account 2,501,430 2,501,430Merger reserve 475,074 475,074Retained earnings 408,452 (33,629)Revaluation reserve 450 (5,743) _________ _________Equity attributable to equity holders of the parent company 3,563,450 3,115,176 Minority interest 121,430 64,581 _________ _________Total equity 3,684,880 3,179,757 _________ _________ JUDGES CAPITAL plc CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 2007 Share Share Merger Retained Revaluation Minority Total capital premium reserve earnings reserve Total** interest equity £ £ £ £ £ £ £ £1 January 2006 173,118 2,501,430 380,000 (188,109) (58,510) 2,807,929 58,171 2,866,100 Changes in equityfor 2006 ____________________________________________________________________________________________Gains/(losses) on | |revaluation of | |available-for-sale | |investments | - - - - 19,950 19,950 - 19,950 | | |Tax on revaluation | |gains/(losses) | |taken directly to | |equity | - - - - (5,985) (5,985) - (5,985)| | |Transferred to | |profit or loss on | |disposal of | |available-for-sale | |investments | - - - - 38,802 38,802 - 38,802 | |___________________________________________________________________________________________|Net income recognised directlyin equity - - - - 52,767 52,767 - 52,767 Profit for the year - - - 190,105 - 190,105 6,410 196,515 ____________________________________________________________________________________________Total recognised income and expensefor the period - - - 190,105 52,767 242,872 6,410 249,282 Dividends - - - (35,625) - (35,625) - (35,625) Issue of sharecapital 4,926 - 95,074 - - 100,000 - 100,000 ____________________________________________________________________________________________Balance at 31 December 2006 178,044 2,501,430 475,074 (33,629) (5,743) 3,115,176 64,581 3,179,757 ____________________________________________________________________________________________Changes in equityfor 2007 ___________________________________________________________________________________________Transferred to | |profit or loss on | |disposal of | |available-for-sale | |investments | - - - - 6,193 6,193 - 6,193 | |___________________________________________________________________________________________|Net income recognised directlyin equity - - - - 6,193 6,193 - 6,193 Profit for the year - - - 552,468 - 552,468 74,349 626,817 Total recognised income and expensefor the year - - - 552,468 6,193 558,661 74,349 633,010 Dividends - - - (110,387) - (110,387) (17,500) (127,887) _____________________________________________________________________________________________Balance at 31 December 2007 178,044 2,501,430 475,074 408,452 450 3,563,450 121,430 3,684,880 _____________________________________________________________________________________________ ** - Total represents amounts attributable to equity holders of the parent company. JUDGES CAPITAL plc CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2007 2007 2006 £ £Cash flows from operating activitiesProfit after tax 626,817 196,515Adjustments for: Depreciation 70,289 53,644 Amortisation of intangible assets 120,015 228,783 Profit on disposal of property, plant and equipment (611) (2,078) (Profit)/loss on disposal of available-for-sale investments (142,217) 6,145 Foreign exchange losses/(gains) on foreign currency loans 27,443 (7,335) Interest receivable (32,987) (32,041) Interest payable 241,772 227,418 Tax expense recognised in income statement 231,496 84,653 (Increase)/decrease in inventories (150,370) 104,775 Increase in trade and other receivables (293,972) (364,429) Increase in trade and other payables 161,518 117,929 ________ ________Cash generated from operations 859,193 613,979Interest paid (242,399) (227,418)Tax paid (249,651) (294,693) ________ ________Net cash from operating activities 367,143 91,868 ________ ________Cash flows from investing activitiesAcquisition of subsidiaries, net of cash acquired (57,384) (1,036,223)Purchase of property, plant and equipment (57,032) (31,336)Proceeds from disposal of equipment 8,196 15,655Proceeds from disposal of available-for-sale investments 342,000 202,611Interest received 32,987 32,041 ________ ________Net cash generated/(used) in investing activities 268,767 (817,252) ________ ________Cash flows from financing activitiesProceeds from drawdown of long-term borrowings - 700,000Repayments of borrowings (including hire purchase contracts) (421,813) (263,454)Dividends paid (127,887) (35,625) ________ ________Net cash (used in)/from financing activities (549,700) 400,921 ________ ________Net increase/(decrease) in cash and cash equivalents 86,210 (324,463)Cash and cash equivalents at beginning of period 824,156 1,148,619 ________ ________Cash and cash equivalents at end of period 910,366 824,156 ________ ________ JUDGES CAPITAL plc NOTES TO THE PRELIMINARY ANNOUNCEMENTFOR THE YEAR ENDED 31 DECEMBER 2007 1. Basis of preparationWith effect from 1 January 2007, the Company is required to present itsconsolidated financial statements in accordance with International FinancialReporting Standards (IFRS) as adopted by the European Union. Accordingly, thefinancial information in this preliminary announcement has been prepared inaccordance with accounting policies which are based on the IFRS in issue and ineffect at 31 December 2007. Comparatives have been restated in compliance withthe principles of IFRS. 2. Earnings per share Year to 31 December 2007 Earnings attributable Weighted to equity average holders of the number of Earnings parent company shares per share £ No. penceProfit after tax for calculation of basic earnings per share 552,468Notional taxed interest income accruing on dilution 22,230 _________Profit after tax for calculation of diluted earnings per share 574,698Add-back: amortisation of intangible assets, net of tax 82,492Less: Profit on disposal of available-for-sale investments, net of tax (99,552) _________Adjusted diluted profit before amortisation of intangible assets 557,638 _________Number of shares for calculation of basic earnings per share 3,560,878Dilutive effect of potential shares 769,944 _________Number of shares for calculation of diluted earnings per share 4,330,822 _________Basic earnings per share 15.5Diluted earnings per share 13.3Adjusted basic earnings per share 15.0Adjusted diluted earnings per share 12.9 _________ Year to 31 December 2006 Earnings attributable Weighted to equity average holders of the number of Earnings parent company shares per share £ No. pence Profit after tax for calculation of basic earnings per share 190,105Notional taxed interest income accruing on dilution 16,685 _________Profit after tax for calculation of diluted earnings per share 206,790Add-back: amortisation of intangible assets, net of tax 160,148 _________Adjusted diluted profit before amortisation of intangible assets 366,938 _________Number of shares for calculation of basic earnings per share 3,544,953Dilutive effect of potential shares 718,852 _________Number of shares for calculation of diluted earnings per share 4,263,805 _________Basic earnings per share 5.4Diluted earnings per share 4.8Adjusted basic earnings per share 9.9Adjusted diluted earnings per share 8.6 _________ 3. Borrowings and net debt 31 December 2007 Subordinated Hire Bank loan loan notes purchase Total £ £ £ __________________________________________________________Repayable in less than 6 months | 254,000 - 9,350 263,350|Repayable in months 7 to 12 | 254,000 - 9,658 263,658| |__________________________________________________________|Current portion of long-term borrowings 508,000 - 19,008 527,008 __________________________________________________________Repayable in years 1 to 2 | 608,000 - 17,157 625,157|Repayable in years 2 to 5 | 1,210,594 500,000 - 1,710,594| |__________________________________________________________|Long-term borrowings 1,818,594 500,000 17,157 2,335,751 __________________________________________________________Total borrowings 2,326,594 500,000 36,165 2,862,759 ___________________________________________Cash and cash equivalents (910,366) _________Total net debt 1,952,393 _________ 31 December 2006 Subordinated Hire Bank loan loan notes purchase Total £ £ £ __________________________________________________________Repayable in less than 6 months | 202,000 - 8,761 210,761|Repayable in months 7 to 12 | 202,000 - 9,051 211,051| |_________________________________________________________|Current portion of long-term 404,000 - 17,812 421,812borrowings __________________________________________________________Repayable in years 1 to 2 | 508,000 - 19,009 527,009|Repayable in years 2 to 5 |1,791,775 500,000 17,157 2,308,932| |_________________________________________________________|Long-term borrowings 2,299,775 500,000 36,166 2,835,941 __________________________________________________________Total borrowings 2,703,775 500,000 53,978 3,257,753 ___________________________________________Cash and cash equivalents (824,156) _________Total net debt 2,433,597 _________ 4. Preliminary Announcement This preliminary announcement, which has been agreed with the auditors, wasapproved by the board of directors on 27 March 2008. It is not the group'sstatutory accounts. Copies of the group's audited statutory accounts for theyear ended 31 December 2007 will be dispatched to shareholders and the AIM teamshortly. Copies will also be available to the public at the Company'sRegistered Office at Unit 19, Charlwoods Road, East Grinstead, West Sussex RH192HL. The statutory accounts for the year ended 31 December 2007 and the year ended 31December 2006 received audit reports which were unqualified and did not containstatements under Section 237(2) or Section 237(3) of the Companies Act 1985.The statutory accounts for the year ended 31 December 2006 have been deliveredto the Registrar of Companies, but the 31 December 2007 accounts have not yetbeen filed. Ends This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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