8th Mar 2005 07:01
Lavendon Group PLC08 March 2005 8 March 2005 Lavendon Group plc Preliminary Results for the year ended 31 December 2004 Lavendon Group is Europe's market leader in the rental of powered accessequipment. Powered access provides a high degree of flexibility, therebyreducing labour costs and saving both time and money. The equipment is quick,safe, convenient and highly manoeuvrable. Consequently, it is now used toprovide temporary aerial access in a variety of applications and is fastbecoming industry's favoured option when compared to traditional access methodssuch as scaffolding, ladders and aluminium towers. It is also ideal for a widerange of other applications including industrial and building maintenance,construction, sign erection, outside broadcasting, telecommunications, treesurgery and highway maintenance. Highlights: • Results in line with December trading statement • Business well aligned for increased revenue growth following successful implementation of cost-reduction measures • Restructuring plan implemented for German business • Disposal of Austrian business • Return to revenue growth in the UK and France • Revenues in the Middle East increased by 9% to £7.2m (2003: £6.6m) • Net debt levels reduced to £89.0m (2003: £109.5m) Financial: • Turnover maintained at £108.0m (2003: £107.8m) • Breakeven PBT before exceptional costs (2003: profit of £3.0m) • EBITDA before exceptional costs of £31.4m (2003: £35.6m) • Free cash of £20.9m (2003: £11.2m) generated OutlookDavid Price, Chairman, said today: "Trading so far this year is in line with our expectations with the UKcontinuing the trend of revenue growth year on year. Germany is completing thefinal elements of its restructuring programme, which, although still very earlyin the process, is delivering performance improvements." For further information please contact: Lavendon Group plcKevin Appleton, Chief Executive On 08.03.05: 020 7067 0700Alan Merrell, Group Finance Director Thereafter: 01455 558874 Weber Shandwick Square MileNick Dibden / Yvonne Alexander 020 7067 0700 Chairman's Statement-------------------- Summary------- The Group's trading performance in 2004 has been disappointing. A poor economicbackdrop in Germany aggravated by excess machine capacity across Europe, led toa significant reduction in Group profits. In the UK, our response to these difficult circumstances has been furtherinvestment to improve our sales and customer service capabilities, to counterthe competitive pressure experienced in the first quarter of the year. Thisinvestment successfully delivered a resumption of revenue growth as the yearprogressed, but conversion of these incremental revenues into increasedoperating profits proved disappointingly slow, with only relatively smallbenefits starting to accrue towards the end of the year. As further market decline became apparent in Germany during the year, weundertook a reappraisal of our combined German and Austrian operation. This ledto the implementation of a major restructuring programme to reduce the overallscale and cost of the business. Whilst we have retained a market leadingposition in Germany, our business has been significantly downsized. The actiontaken has lowered the operating cost base considerably, enabling the business toweather better the present difficult trading conditions and allowing it torespond more efficiently to any improvement in the economic climate. As part ofthe restructuring programme, we have also disposed of our business in Austriasince the year- end. Some limited progress has been made in France, while Spain had a tough year asthe previously robust construction market started to weaken. In the Middle Eastboth revenues and operating profits increased as activity levels in the regionremained solid. The decisions taken in the UK and particularly Germany have resulted inconsiderable costs being incurred, both through increased operating costs andexceptional charges as well as general business disruption, the impact of whichhave been severely detrimental to the Group's results for 2004. These actionswere necessary to return the Group to a position from which, once again,sustainable earnings growth should be achievable. The Group has continued to generate substantial cash inflows, and with thelimited requirement for capital expenditure in the year, was able to reduce itsdebt levels month on month throughout 2004. Further progress in reducing debtlevels is expected in 2005. We completed the refinancing of our bank facilities in June and a new £85million facility was put in place which will expire in June 2009. This newfacility provides the necessary flexibility for the development of the Groupgoing forward. Financial Results----------------- The Group's turnover for the year was broadly flat at £108.0 million (2003:£107.8 million), producing an operating profit before exceptional costs of £5.8million (2003: £9.3 million). The operating loss after exceptional costs was£0.3 million (2003: profit of £8.5 million). Operating margins prior toexceptional costs were 5.4% (2003: 8.6%), while after exceptional costs anegative margin of -0.3% was incurred (2003: profit margin of 7.9%). Exceptional costs totalled £14.5 million (2003: £0.8 million). These comprised£6.1 million of exceptional operating costs, principally the professional feesassociated with the refinancing of the Group's debt facilities and the costsincurred in Germany with the goodwill write down and depot closure programme,together with £8.4 million of exceptional non-operating costs relating to aprovision made against German assets identified for disposal and the write downof the Austrian business to the value realised from its disposal post theyear-end. Earnings before interest, tax, depreciation and amortisation (EBITDA) prior toexceptional costs declined to £31.4 million (2003: £35.6 million) primarily as aresult of the reduced operating profits. After exceptional costs, the Group'sEBITDA was £25.9 million (2003: £34.8 million). With a reduction of £0.6 million(2003: £1.3 million) in working capital requirements, the net operating cashflow prior to exceptional costs was £32.0 million (2003: £36.9 million). Afterexceptional costs the net operating cash flow for the year was £29.1 million(2003: £36.1 million). Due to the continued strength of the Group's cash flow and a limited capitalexpenditure programme, £20.9 million (2003: £11.2 million) of 'free cash' (1)was generated in the year. This substantial increase in the level of 'free cash'(1) has enabled the Group to reduce its net debt levels at the year-end to £89.0million, after a small adverse foreign exchange movement of £0.5 million,compared to £109.5 million at the end of 2003. The corresponding debt to equityratio was 118% (2003: 122%). The Group's pre-tax result before exceptional costs was breakeven (2003: aprofit of £3.0 million). After exceptional costs the loss before tax was £14.5million (2003: a profit of £2.2 million). The loss per share before exceptionalcosts was 3.29 pence (2003: earnings of 4.83 pence) and after exceptional coststhe loss per share was 34.49 pence (2003: earnings of 3.31 pence). Dividend-------- We reported in our pre-close trading update in December 2004, that due to theimpact of the exceptional costs on the Group's distributable reserves and thecash cost of this restructuring, the Board had decided not to recommend thepayment of a final dividend for 2004. The Board is hopeful that an improved trading performance in 2005 will enablethe resumption of dividend payments. Outlook------- The generally weak levels of demand across most of the European Industrial andCommercial construction sector, combined with the poor economic climate inGermany, is restricting the Group's ability to deliver sound financialperformance. Nonetheless we remain confident that, over the medium term, thedemand for powered access products will return to average growth trendsconsiderably above that of general economic activity, and that once this occurs,the profitability of the Group will improve significantly. Until the marketplace shows signs of a sustained recovery, our efforts will befocused on increasing the cost effectiveness of the business, strengtheningmanagement capabilities and, through the use of enhanced IT systems, improvingoperational processes. Our financial strength is firmly underpinned by the Group's strong cash flowsand reducing debt levels, attributes which allow us to lower the risk profile ofthe business through these tough trading periods, and which also ensure that thebenefits of the Group's operational leverage are magnified once demand levelsimprove. Trading so far this year is in line with our expectations with the UK continuingthe trend of revenue growth year on year. Germany is completing the finalelements of its restructuring programme, which, although still very early in theprocess, is delivering performance improvements. David PriceChairman 7 March 2005 (1) Free cash is defined as net cash inflow from continuing operating activitiesless interest, taxation, dividends paid, and capital expenditure beforeinception of new hire purchase agreements. Free cash 2004 2003 £'million £'million Net cash inflow from operating activities 29.1 36.1 Interest (5.4) (6.0)Taxation 0.5 (1.0)Dividends paid (2.6) (2.6)Capital expenditure (0.3) (4.7)Capital expenditure financed byhire purchase agreements (0.4) (10.6) -------- --------Net free cash 20.9 11.2 ======== ======== Chief Executive's Review------------------------ Whilst market conditions continue to be generally unfavourable, impeding ourability to grow revenues, we have concentrated our efforts on reshaping ourbusiness to ensure that the future development of the Group is based on solidfoundations and that the adverse affects of current trading conditions areminimised. By developing and implementing enhanced IT and operational systems wehave improved the economies of scale available from centralising customer ordertaking and transport co-ordination functions, and at the same time increased thelevel of customer service that we offer to the marketplace. We have also,through tight control of working capital and a limited capital expenditureprogramme, sought to maximise cash flow to reduce our debt levels. UK-- The UK continues to be the Group's largest and most important market and,consequently, the key focus, as we came into the year, was to restore thebusiness to both revenue and profit growth. To achieve this aim substantial sumswere invested during the first half of the year in marketing, telesalesactivities, strengthening customer service centres, expanding the salesforce andimproving fleet availability. By the end of the first quarter, this investmenthad successfully reversed a declining revenue trend allowing revenues for theyear to grow by 4% to £61.5 million (2003: £59.2 million). Although incrementaloperating profits from this revenue growth were being earned in the final stagesof the year, the extent of the investments made to improve customer servicestandards meant that operating profits prior to exceptional costs declined to£7.4 million for the year as a whole (2003: £9.2 million). Operating marginsprior to exceptional costs were 12% (2003: 16%). After exceptional costs,operating profits were £5.3 million (2003: £8.8 million) with an operatingmargin of 9% (2003: 15%). During the year, extensive upgrades to our IT systems were made enablingimproved, statistically based, pricing decisions to be applied consistentlyacross our depot network. These enhancements are allowing adjustments to be madeto product pricing which reflect the changing patterns of demand through theyear, and are starting to deliver the expected benefits through improved hirerates. The management structure of the UK has been strengthened, through a combinationof external recruitment and targeted training. In August 2004, the UK seniormanagement team was completed with the appointment of Hugh Cole as ManagingDirector. Although the short-term profitability of the UK business has been diluted by theinvestments made in the year, the operation is now in a robust shape and readyto implement strategic decisions going forward that will deliver long-termgrowth and increased profits. Germany and Austria------------------- The German marketplace remains depressed with extremely testing tradingconditions as a result of declining demand from the construction sector. Overalldemand from this sector has reduced by some 28% since 2000, with the situationbeing exacerbated by the non-construction related sectors also having subdueddemand levels as a result of the prevailing economic climate. Against this background, as 2004 progressed, it became increasingly clear thatthe German powered access market was not experiencing a short-term correctionbetween demand and the capability to supply, but was suffering from afundamental imbalance between these market forces. With the economic outlook atbest forecasting stability or low growth, any demand led resolution of thesituation was likely to take several years, and the correction of excess machinecapacity was only going to occur through the progressive non-replacement ofretiring fleet, unless a significant number of rental units were removed fromthe marketplace by one or more main players. As the strategic options to respond to this market situation were beingevaluated, regional customer service centres were created to de-link thecustomer contact and order placing from the local supplying depot, therebyenhancing customer retention in the event of any future restructuring of theoperation. Once the review of the market was completed, a more fundamentalrestructuring of the business was required and as a result the depot network wasreduced from 44 to 24 depots, headcount by 80 and 1,000 rental machines wereremoved from the fleet either by transfer to our operations in other countriesor by being placed into storage for disposal. These actions were taken to ensurethat the business is more closely aligned to current market conditions. As a result of this restructure the cost base of the German operation has beenreduced by £5.25 million per annum, making the business more flexible tochanging market conditions and better able to defend market share fromprice-based competition. By removing 1,000 rental units, the presentover-capacity in the marketplace is partly addressed, thereby laying thefoundation for improved hire rates as the price control systems, as implementedin the UK in 2004, are rolled out across the German depot network in 2005. Of the 1,000 machines removed from the market, 300 units have been transferredto France, the UK and the Middle East, with the remaining 700 units being placedinto storage for sale into the secondary market over the coming 12-24 monthswith priority being given to disposals into markets in which the Group does notoperate. Revenues for the year declined by 9.6% to £28.3 million (2003: £31.3 million),producing an operating loss prior to exceptional costs of £3.4 million (2003:£1.9 million). The exceptional operating costs totalled £4.0 million and relatedto the restructuring of the operation and included depot closure costs,termination of employee contracts, transport and storage of rental machines andthe write-off of the remaining goodwill. After exceptional operating costs, theoperating loss for the year was £7.4 million (2003: £2.2 million). In additionto the exceptional operating costs, non-operating exceptional costs wereincurred totalling £6.5 million relating to provisions made against the rentalunits identified for disposal, to reflect their expected realisable value. Whilst our Austrian operation was included in the overall market review and wasto be part of the restructuring, an offer to acquire the business was receivedfrom a third party and accepted, with the sale being completed on 25 February2005. The business was sold for £2.65 million payable in cash, its net assetvalue. Revenues for the year were £2.1 million, (2003: £2.0 million), with anoperating loss of £0.3 million (2003: nil). Non-operating exceptional costs of£1.9 million were incurred, which represented the impairment charge required toreduce the net asset value of the business in line with the agreed sale price. France------ The French market showed some signs of recovery in 2004 as demand levels startedto increase as the year progressed. Our own operation reflected this market recovery as revenues in the second halfof the year grew by 15%, to produce a total revenue for the year of £5.3 million(2003: £5.0 million), an increase of 6%. The operating loss for the year reducedto £0.6 million (2003: £0.7 million). During the year the standard Group IT platform was implemented to improveoperational control and management information, and in the second half of theyear we decided to improve our position for a recovery in the market by openinga depot in Rouen and increasing the fleet by 120 units, mainly transferred fromGermany, bringing the total fleet to 750 units. Whilst the expansion of thedepot network produces a drag on profits in the short term, the incrementalrevenues earned, once the depot is established, will enable the business as awhole to move towards profitability. Spain----- The growth of the use of powered access products in the Spanish market has beendriven by the expanding construction sector over the last few years. This growthhas been concentrated around the major cities, and Spain does not therefore havewidespread depth and breadth of cross-industry sector demand that exists in, forexample, the UK and France. Consequently the health of the powered access marketis particularly sensitive to the rate of growth in the construction sector,which showed early signs of slowing during 2004, and is reflected in the declinein our revenues for the year to £3.6 million (2003: £3.7 million). The operating result for the year was breakeven (2003: profit of £0.2 million). To mitigate an expected further slowdown in the construction market we areconcentrating our activities in Madrid and Murcia where we have strong marketpositions with a relatively stable demand base. Middle East----------- Our Middle East business, recorded another excellent trading performance,despite the suspension of many customers' projects in Saudi Arabia from thesecond quarter in light of a number of terrorist incidents. Revenues increased by 9% to £7.2 million (2003: £6.6 million), with operatingprofits growing by 12% to £2.7 million (2003: £2.4 million). These improvedresults were achieved despite an adverse 8% year on year currency translationimpact following the continued weakness of the US dollar. As we start 2005 there are encouraging signs of a resumption of many of thesuspended activities in Saudi Arabia and, consequently, we are optimistic ofanother strong performance in the year ahead. Summary------- The past year has clearly been a difficult and disappointing year for the Group.Nevertheless by restructuring our operations to be further in-line with currentmarket prospects and strengthening our operational processes to improve customerservice, we are well placed to deliver an improved performance. It is clear thatwithout our many excellent and motivated employees the changes that have beenmade during the year would not have been possible, and considerable thanks aredue to them for their dedication and determination. The year has started off in line with our expectations. The measures taken toimprove efficiency in the UK and mitigate the impact of the poor economicenvironment in Germany should see the overall Group make progress in 2005. Kevin AppletonChief Executive7 March 2005 Consolidated profit and loss accountFor the year ended 31 December 2004 2004 2003 Ordinary Exceptional Ordinary Exceptional activities costs Total activities costs Total £000 £000 £000 £000 £000 £000------------------------------------------------------------------------------------------Turnover 108,013 - 108,013 107,778 - 107,778Cost of sales (63,946) - (63,946) (62,003) - (62,003)------------------------------------------------------------------------------------------Gross profit 44,067 - 44,067 45,775 - 45,775Operating expenses (38,266) (6,148) (44,414) (36,456) (848) (37,304)------------------------------------------------------------------------------------------Operating profit/(loss) 5,801 (6,148) (347) 9,319 (848) 8,471Non-operating expenses - (8,366) (8,366) - - -Investment income 30 - 30 51 - 51------------------------------------------------------------------------------------------Profit/(loss) before interest 5,831 (14,514) (8,683) 9,370 (848) 8,522Interest payable (5,810) - (5,810) (6,357) - (6,357)------------------------------------------------------------------------------------------Profit/(loss) before taxation 21 (14,514) (14,493) 3,013 (848) 2,165Taxation on profit/(loss)(1,237) 2,968 1,731 (1,226) 287 (939)------------------------------------------------------------------------------------------(Loss)/profit after taxation (1,216) (11,546) (12,762) 1,787 (561) 1,226Dividends (833) - (833) (2,572) - (2,572)------------------------------------------------------------------------------------------(Loss) for the year (2,049) (11,546) (13,595) (785) (561) (1,346)------------------------------------------------------------------------------------------ (Loss)/earnings per ordinary share - basic (3.29) (31.20) (34.49) 4.83 (1.52) 3.31 - diluted (3.29) (31.20) (34.49) 4.83 (1.52) 3.31------------------------------------------------------------------------------------------ Statement of total recognised gains and losses (Loss)/profit after taxation (12,762) 1,226Currency translation differences (841) 262------------------------------------------------------------------------------------------Total (loss)/gains since the last annual report (13,603) 1,488------------------------------------------------------------------------------------------ There is no difference between the profit / (loss) on ordinary activities beforetaxation and the loss for the year as stated above, and their historical costequivalents. All of the Group's trading activities relate to continuing operations for theyear. Consolidated balance sheetAt 31 December 2004 2004 2003 £000 £000--------------------------------------------------------------------------------Fixed assetsIntangible assets 119 833Tangible assets 167,256 200,051-------------------------------------------------------------------------------- 167,375 200,884Current assetsStocks 873 970Debtors 26,024 27,730Cash at bank and in hand 7,534 4,038-------------------------------------------------------------------------------- 34,431 32,738Creditors - amounts falling due within one year (32,705) (27,812)--------------------------------------------------------------------------------Net current assets 1,726 4,926--------------------------------------------------------------------------------Total assets less current liabilities 169,101 205,810 Creditors - amounts falling due after more than one year (80,870) (101,335)Provisions for liabilities and charges (12,831) (14,639)--------------------------------------------------------------------------------Net assets 75,400 89,836-------------------------------------------------------------------------------- Capital and reservesCalled up share capital 370 370Share premium account 70,412 70,412Capital redemption reserve 4 4Profit and loss account 4,614 19,050--------------------------------------------------------------------------------Equity shareholders' funds 75,400 89,836-------------------------------------------------------------------------------- Consolidated cash flow statementFor the year ended 31 December 2004 2004 2003 £000 £000-------------------------------------------------------------------------------- Net cash inflow from operating activities 29,104 36,085-------------------------------------------------------------------------------- Returns on investment and servicing of finance:Interest received 30 17Interest paid on bank borrowings (3,910) (4,074)Interest paid on hire purchase and finance lease agreements (1,524) (1,935)-------------------------------------------------------------------------------- (5,404) (5,992)Taxation:United Kingdom corporation tax received / (paid) 552 (1,016)Overseas corporation tax (paid) (10) (15)-------------------------------------------------------------------------------- 542 (1,031)Capital expenditure and financial investment:Purchase of tangible fixed assets (1,881) (5,981)Sale of tangible fixed assets 1,542 1,277-------------------------------------------------------------------------------- (339) (4,704) Equity dividends paid (2,572) (2,572)--------------------------------------------------------------------------------Net cash inflow before management of liquid resources and financing 21,331 21,786 Financing:Repayment of loans (5,032) (6,722)Repayment of principal under hire purchase and finance lease agreements (12,807) (13,927)--------------------------------------------------------------------------------Net cash outflow from financing (17,839) (20,649)--------------------------------------------------------------------------------Increase in cash during the year 3,492 1,137-------------------------------------------------------------------------------- Reconciliation of operating (loss) / profit to net cash inflow from operating activities 2004 2003 £000 £000-------------------------------------------------------------------------------- Operating (loss) / profit (347) 8,471Amortisation 39 180Exceptional write down of intangible assets 655 -Depreciation on tangible fixed assets 25,536 26,118Gain on sale of tangible fixed assets (119) (207)Decrease / (increase) in stocks 95 (65)Decrease in trade debtors 277 194Decrease / (increase) in prepayments, accrued income and other debtors 946 (294)(Decrease) / increase in trade creditors (345) 1,541Increase in taxation, social security, accruals and other creditors 2,367 147--------------------------------------------------------------------------------Net cash inflow from operating activities 29,104 36,085-------------------------------------------------------------------------------- During the year exceptional operating costs of £6,148,000 (2003: £848,000),which included an impairment write down of goodwill of £655,000 (2003: £Nil),and exceptional non-operating costs of £8,366,000 (2003: £Nil) were incurred. AtDecember 2004 exceptional operating costs of £2,571,000 (2003: £218,000), andexceptional non-operating costs of £249,000 (2003: £Nil), remained unpaid andare included within accruals and deferred income due within one year. Reconciliation of net cash flow movement to movement in net debt 2004 2003 £000 £000-------------------------------------------------------------------------------- Net increase in cash 3,492 1,137Outflow from decrease in debt 17,839 20,649-------------------------------------------------------------------------------- Change in net debt resulting from cash flows 21,331 21,786 Non-cash items:New hire purchase and finance lease agreements (369) (10,567)Currency translation differences - on cash and net debt (511) (6,600)-------------------------------------------------------------------------------- Movement in net debt in the period 20,451 4,619 Net debt at 1 January (109,460) (114,079) --------------------------------------------------------------------------------Net debt at 31 December (89,009) (109,460)-------------------------------------------------------------------------------- Analysis of changes in net debt during the year At Currency At 1 January Other non- translation 31 December 2004 Cash flows cash items differences 2004 £000 £000 £000 £000 £000---------------------------------------------------------------------------------------- Cash at bank and in hand 4,038 3,492 - 4 7,534 Bank debt due within one year - - (4,545) - (4,545)Bank debt due after one year (79,045) 5,032 4,545 (584) (70,052)Hire purchase and finance lease agreements (34,453) 12,807 (369) 69 (21,946)---------------------------------------------------------------------------------------- (113,498) 17,839 (369) (515) (96,543)----------------------------------------------------------------------------------------Total (109,460) 21,331 (369) (511) (89,009)---------------------------------------------------------------------------------------- Capital creditors in respect of fixed asset additions increased by £273,000. Segmental analysis------------------Turnover by geographical destination: 2004 2003 £000 £000--------------------------------------------------------------------------------United Kingdom 61,245 59,191Rest of Europe 39,559 41,949Rest of World 7,209 6,638--------------------------------------------------------------------------------Total Group turnover 108,013 107,778-------------------------------------------------------------------------------- Turnover and operating profit by geographical origin: 2004 2003 Operating Operating Turnover profit Turnover profit £000 £000 £000 £000--------------------------------------------------------------------------------United Kingdom 61,513 5,295 59,213 8,823Rest of Europe 39,312 (8,338) 41,927 (2,705)Rest of World 7,188 2,696 6,638 2,353--------------------------------------------------------------------------------Total Group turnover and operating profit 108,013 (347) 107,778 8,471 -------------------------------------------------------------------------------- Net assets by geographical origin: 2004 2003 £000 £000--------------------------------------------------------------------------------United Kingdom 11,354 9,248Rest of Europe 60,043 78,036Rest of World 4,003 2,552--------------------------------------------------------------------------------Total Group net assets 75,400 89,836-------------------------------------------------------------------------------- Notes 1. The consolidated accounts of the Group are prepared under the historical cost convention and in accordance with the Companies Act 1985, and applicable Accounting Standards in the United Kingdom 2. Earnings per share calculations are based on: (a) the loss for the year, after deducting taxation, of (£12,762,000) (2003: profit of £1,226,000); and (b) the weighted average of 37,003,383 ordinary shares in issue during the year (2003: 37,003,383) For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume issue of all dilutive potential ordinary shares, based on the average market price of the Company's shares of £1.377 (2003: £1.238). The Group has only one category of dilutive potential ordinary shares: those options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year. The effect of this dilution is to increase the weighted average number of ordinary shares to 37,123,889 (2003: 37,073,780). This dilution cannot be applied to a loss and the stated EPS is hence equal to the basic EPS for the current year. Exceptional operating costs and non-operating costs charged to the profit and loss account during the year do not relate to the profitability of the Group on an ongoing basis. Therefore the earnings per ordinary share before exceptional operating and non-exceptional operating costs has been calculated after adjustment for these costs and the related tax effect based on the basic number of shares in issue. 2004 2003 Loss per Earnings per Loss share Earnings share £000 pence £000 pence -------------------------------------------------------------------------------- (Loss) / earnings per share (12,762) (34.49) 1,226 3.31 -------------------------------------------------------------------------------- Exceptional operating costs: Bank fees 495 1.34 160 0.43 Refinancing advisory fees 843 2.27 - - Restructuring costs 4,155 11.23 688 1.86 Goodwill write down 655 1.77 - - -------------------------------------------------------------------------------- 6,148 16.61 848 2.29 -------------------------------------------------------------------------------- Exceptional non-operating costs: Provision against German assets held for resale 6,443 17.41 - - Write down of Austrian net assets 1,923 5.20 - - -------------------------------------------------------------------------------- 8,366 22.61 - - -------------------------------------------------------------------------------- Total exceptional costs 14,514 39.22 848 2.29 Taxation effect from exceptional costs (2,968) (8.02) (287) (0.77) -------------------------------------------------------------------------------- Total exceptional costs net of taxation 11,546 31.20 561 1.52 -------------------------------------------------------------------------------- (Loss) / earnings per share before exceptional costs (1,216) (3.29) 1,787 4.83 -------------------------------------------------------------------------------- 3. The financial information set out in this announcement does not constitute the Group statutory accounts for the year ended 31 December 2004 or 31 December 2003, but is derived from these accounts. The statutory accounts for the Group for the year ended 31 December 2004 and 2003 were reported on by the auditors without qualification and such reports did not contain any statement under section 237(2) or (3) of the Companies Act 1985. The accounts for 2003 have been delivered to the Registrar of Companies and those for 2004 will be delivered in due course. 4. The Annual General Meeting of Lavendon Group plc will be held at PricewaterhouseCoopers LLP, Cornwall Court, 19 Cornwall Street, Birmingham B3 2DT on 28 April 2005 at 10:30. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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