23rd Mar 2005 12:12
North Midland Construction PLC23 March 2005 North Midland Construction Plc 23 March 2005 2004 Preliminary Results North Midland Construction PLC ("the Company"), the UK provider of civilengineering, building, mechanical and electrical services to public and privateorganisations, announces preliminary results for the year ended 31 December2004. Highlights from the results and the Chairman's Statement:- Year ended Year ended 31 December 2004 31 December 2003 £'000 £'000 Turnover 102,947 82,294 Profit before Tax 3,278 2,932 Net Profit after Tax 2,285 2,033 Earnings per Share 21.98p 18.73p Dividends 6.0p 5.0p . Another record year in terms of Turnover and Profitability . Nomenca has continued to achieve dramatic growth during the year . Excellent workload being carried forward into the New Year . Proposed final dividend of 4.0p (2003 : 3.5p) For further information:- Robert Moyle, ChairmanNorth Midland Construction PLC - 01623 518812 Mike Garratt, Finance DirectorNorth Midland Construction PLC - 01623 518816 CHAIRMAN'S STATEMENT It is extremely pleasing to report that last year was a landmark in achievementfor the Group, with profits exceeding £3,000,000 and turnover £100,000,000 forthe first time in the Group's history. The return before tax of 3.1%, onturnover, dipped below last year's result of 3.5%, but still compares veryfavourably with our competitors. This was due to an indifferent performancefrom North Midland Building. All elements of the Group traded profitably and abreakdown of their individual performances will provide a greater insight intothe overall result. Civil Engineering, the largest division within the parent company, had asuccessful year, delivering both turnover and profits in excess of budget. Lossmaking contracts, which had marred the 2003 result, were eliminated and whilstthe water industry remained the prime driver of growth, both the power and railsectors were expanded. Several new clients to the division were acquired, mostnotably the MOD and in the industrial market. The pace of expansion in theNorth West was particularly heartening. Highways maintained its unbroken record of year on year growth, securing severalnew clients in the process. It continues to be a major player in the AmScottconsortium and contracts of a higher notational value, than previously, havebeen awarded from other clients. This will be a significant advantage in thepursuit of future growth. The past year had several critical milestones to be achieved by the Utilitiesdivision, as the Marconi, NTL and Kingston Communications term contracts wereall re-tendered. Not only were all these retained, but increased geographicalcoverage secured as well. A large portion of East Anglia has been added to theexisting Marconi East Midlands contract and an extra area of the West Midlandsto the NTL contracts in the East Midlands and North West. These contracts,coupled with expansion into other related areas of operation, produced anout-turn for the year in excess of budget and will, more importantly, serve as aspringboard for the future. Over recent years, the greatest success story has been the rapid growth of thetwo subsidiaries - North Midland Building Limited and Nomenca Limited. Sadly,North Midland Building's unbroken run of annual profit increases came to an end,with a figure of £101,000 being earned on a turnover of nearly £18,000,000. Thelargest ever project undertaken by the company for 569 student flats in Lincoln,valued at £13,000,000, was successfully and profitably delivered on time, butcompletion costs exceeded the estimates and two other loss-making contracts wereundertaken during the year. However, the ongoing order book stands at recordlevels, inclusive of a major scheme of £27,000,000 value, so the portents arefor the result to be rectified in 2005. Nomenca Limited produced the record performance of its short history withprofits escalating to £649,000 on a turnover of circa £20,000,000. Thecapability to deliver turnkey projects, not just in the water industry, incollaboration with the Civil's division of the PLC has been a major organ ofgrowth. Utilising the network of regional offices, the business has beenexpanded, both within and external to, the water industry and a broad clientbase has now been developed. The last year is further testament of the Group's ability to deliver its statedaim of organic growth. Further land has been acquired at the Head Office siteto cater for future requirements and there is a continuing need for therecruitment of experienced staff and operatives. The Group is blessed both witha core capability and a well trained, loyal and committed workforce that clientsfind attractive to their needs. The success in being included on three of themain supplier categories to the AMP4 programme for Severn Trent and the securedterm contracts in the Utilities sector are proof of this. Over many years it has been your Board's opinion that the share price was neverreflective of either the Group's financial performance or asset value. Mostgratifyingly, this situation has now altered with a recent surge in the valuethat has also been sustained. Your Board is delighted that finally its effortsin championing the case have been rewarded. The Group has already secured a workload of £100,000,000 for 2005 and this orderbook should enable the exacting targets for future growth in 2005 to beachieved. This confidence, allied with the desire to maintain an acceptableyield, permits your Board to recommend an increase in the final dividend of0.5p, making a total of 6.0p for the year. Profit and Loss Account Year ended Year ended 31 December 2004 31 December 2003 £'000 £'000 Group Turnover 102,947 82,294 Operating Profit 3,341 2,976 Net Interest (payable) (63) (44) Profit before Taxation 3,278 2,932 Taxation (993) (899) Group Profit after Taxation 2,285 2,033 Minority Interest (131) (197) Profit for the Financial Year 2,154 1,836 Dividend (588) (490) Retained Profit for the Financial Year 1,566 1,346 Earnings per share 21.98p 18.73p Amount of actual final dividend on ordinary sharesproposed to the Shareholders on the register at theclose of business on 28 April 2005, which will bepaid on 24 May 2005. 4.00p 3.50p Total dividend per ordinary share for the year ended31 December 2004 6.00p 5.00p The calculation of earnings per share is based on 9,800,000 shares (2003 :9,800,000) being the number of shares in issue throughout the period and on aprofit of £2,154,000 (2003 : £1,836,000). Balance Sheet Year ended Year ended 31 December 2004 31 December 2003 £'000 £'000 Fixed Assets 5,100 4,011 Goodwill 106 - 5206 4,011 Current Assets Stocks 7,280 3,401 Debtors 23,936 23,133 Cash at bank and in hand 4,151 2,816 35,367 29,350 Creditors - amounts falling due within one year (27,110) (21,679) Net Current Assets 8,257 7,671 Total Assets less Current Liabilities 13,463 11,682 Creditors - amounts falling due after more than one year (659) (390) Provision for Liabilities and Charges (197) (189) Net Assets 12,607 11,103 Capital and Reserves Called up Share Capital 980 980 Capital Redemption Reserve 20 20 Profit and Loss Account 11,220 9,654 Shareholders' Funds 12,220 10,654 Minority Interests 387 449 12,607 11,103 Cashflow Year ended Year ended 31 December 2004 31 December 2003 £'000 £'000 Reconciliation of operating profit to net cash inflowfrom operating activities Operating Profit 3,341 2,976 Depreciation 1,075 986 (Profit) on sale of tangible fixed assets (110) (87) Increase/(Decrease) in reinstatement reserve 8 (161) (Increase) in stocks (3,879) (165) (Increase) in debtors (803) (4,478) Increase in creditors 5,169 2,925 Net cash Inflow from operating activities 4,801 1,996 Cash Flow Statement Net cash Inflow from operating activities 4,801 1,996 Returns on investment and servicing of finance (63) (44) Taxation (1,088) (628) Capital expenditure (921) (969) Equity dividends paid (539) (441) Equity dividends paid to minority shareholders (86) (77) Purchase of shares in subsidiary Company (213) - Cash Inflow/(Outflow) before use of liquid resources andfinancing 1,891 (163) Financing - (decrease) in debt (556) (494) Increase/(Decrease) in cash for the year 1,335 (657) Reconciliation of net cash flow to movement in net funds Increase/(Decrease) in cash for the period 1,335 (657) Cash outflow from decrease in hire purchase 556 494 Change in funds resulting from cash flow 1,891 (163) New hire purchase agreements (1,133) (606) Movement in net funds in the year 758 (769) Net funds at 1 January 2004 2,006 2,775 Net funds at 31 December 2004 2,764 2,006 The abridged financial information presented is based on the full accounts ofthe Group for the year ended 31 December 2004, on which the auditors have givenan unqualified report. The accounts have yet to be filed with the Registrar of Companies. The Annual report and Accounts for the year ended 31 December 2004 will bedespatched to the Shareholders on 28 April 2005. The Annual General meeting will be held on 24 May 2005 at 12 noon. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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