15th Jun 2007 07:00
ENSOR HOLDINGS PLC PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 MARCH 2007 Chairman's StatementHighlights * Sales Turnover: Up 6% to over ‚£28m * Operating Profit from Continuing Activities: Up 30% to over ‚£1.6m * Property Value: Up by ‚£2m * Proposed Dividend: Up by 9% Report and ResultsEnsor has had a good year. I am pleased to report there has been significant
progress with increased turnover to ‚£28,277,000 (2006 : ‚£26,704,000) and profitbefore interest has increased by some 34%, after allowing for the previousyear's one-off pension adjustment. This leaves a profit for the year beforeinterest of ‚£1,520,000 (2006 : ‚£1,511,000). This, I feel, is a verysatisfactory increase. The financial charges have reduced to ‚£237,000 (2006 :‚£348,000) due to investment performance in the pension fund. These figuresgive an overall improved profit and our taxation has increased to ‚£426,000(2006: ‚£362,000). In the year, our successful Chief Executive, Tony Coyne, reached retirement agebut remains with us as a Non-executive Director continuing to give hisexperience for the future development of the Company. We are joined by PaulParnham, as new Chief Executive; he has extensive experience in businessactivities both in the UK and abroad and I wish him well in this exacting role. Trading & ProspectsEach company in the Group was profitable, with good increases in margin fromour companies distributing tools for the building industry, constructionmaterials and supplies to the commercial and industrial door market. Also, ourspecialist packaging supply company performed well, as did our fencing and gatemanufacturing supply company. The rubber product company had a difficult butsuccessful year and, in total, the companies produced an excellent, improvedperformance. Much of this improvement was helped by the efficient andwell-managed office which Ensor maintains in China where a number of productsare sourced and manufactured.All our companies have plans to improve both sales and margin in the future. Our fencing and gate company is increasing its capacity on a new site in thenorth of England. This and other measures are in hand to improve prospects.Several add-on opportunities may become available which, if thought suitable bythe Board, will be progressed. Balance SheetOur cash position remains satisfactory, our bank borrowing is well controlledand our gearing is now only 16% (2006 : 36%). Net debt was reduced by ‚£857,000to ‚£1,658,000 as a result of strong cash generation from operating activities.A recent, professional property valuation has been completed which produces asurplus over the previous balance sheet value of over ‚£2,000,000. This doesnot include additional values which could be envisaged should planning lawspermit in the medium to long term.
Dividend
The Board considers that an increase in dividend is well justified and isproposing a final dividend of 0.70p per share (2006 : 0.625p) making a totalfor the year of 1.09p (2006 : 1.00p) - an increase of 9% for the year. Thistotal dividend is about 2.7 times covered by our increased earnings of 2.9p pershare.
Subject to approval at the Annual General Meeting, the final dividend will be payable on 10 August 2007 to shareholders on the register on 29 June 2007.
Acknowledgements
I feel sure that shareholders will join me in thanking all the staff at Ensor for these excellent results and feel confident that the Company is in good heart for moving forward.
Ken HarrisonChairman15 June 2007
AUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2007
2007 2007 2006 2006 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Turnover 28,277 26,704 Cost of sales (19,377) (18,458) ______ ______ Gross profit 8,900 8,246 Distribution costs (1,503) (1,359) Administrative expenses (5,877) (5,376) ______ ______ (7,380) (6,735) Operating profit Continuing operations 1,662 1,279
Pension scheme curtailment - 374
Amortisation of goodwill (142) (142) ______ ______ ______ ______ Profit on ordinary activities before 1,520 1,511interest Interest payable (196) (193) Other finance charges (41) (155) ______ ______ (237) (348) ______ ______ Profit before taxation 1,283 1,163 Taxation (426) (362) ______ ______ Profit for the year 857 801 ______ ______ Dividends per share Interim dividend paid 0.390p 0.375p Final dividend proposed 0.700p 0.625p ______ ______ 1.090p 1.000p ______ ______ Earnings per share Basic and diluted 2.9p 2.7p
Basic before exceptional items 2.9p
1.8p ______ ______ AUDITED BALANCE SHEETSat 31 March 2007 Group Group Company Company 2007 2006 2007 2006 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Fixed assets Goodwill 2,138 2,280 - - Tangible assets 5,496 3,525 2,051 1,049 Investments - - 12,068 10,286 ______ ______ ______ ______ 7,634 5,805 14,119 11,335 Current assets Stocks 4,392 4,369 - - Debtors 6,051 5,768 351 316 ______ ______ ______ ______ 10,443 10,137 351 316 Creditors: amounts falling due within (6,813) (7,234) (4,939) (3,568)one year ______ ______ ______ ______ Net current assets/(liabilities) 3,630 2,903 (4,588) (3,252) ______ ______ ______ ______ Total assets less current liabilities 11,264 8,708 9,531 8,083
Creditors: amounts falling due after
more than one year - (54) - (50) ______ ______ ______ ______ Net assets excluding pension liability 11,264 8,654 9,531 8,033 Pension liability (1,033) (1,628) (1,033) (1,628) ______ ______ ______ ______ 10,231 7,026 8,498 6,405 ______ ______ ______ ______ Capital and reserves Called up share capital 2,945 2,941 2,945 2,941 Share premium account 470 470 470 470 Revaluation reserve 2,993 877 1,225 197 Profit and loss account 3,823 2,738 3,858 2,797 ______ ______ ______ ______ Equity shareholders' funds 10,231 7,026 8,498 6,405 ______ ______ ______ ______
AUDITED CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2007
2007 2006 ‚£'000 ‚£'000 Net cash inflow from operating activities 2,097 1,463 ______ ______
Returns on investments and servicing of finance
Interest paid (194) (185)
Interest element of finance lease payments (2)
(3) ______ ______ Net cash outflow from servicing of finance (196) (188) ______ ______ Taxation UK corporation tax paid (282) (399) ______ ______ Net cash outflow from payment of taxation (282) (399) ______ ______
Capital expenditure and financial investment Purchase of tangible fixed assets (401)
(482)
Sale of tangible fixed assets 82
65 ______ ______
Net cash outflow from capital expenditure and financial
investment (319) (417) ______ ______ Acquisitions and disposals Acquisition of subsidiary undertaking - (855) ______ ______ Net cash outflow from acquisition - (855) ______ ______ Pension scheme deficit recovery payments (148) (120) ______ ______ Equity dividends paid (299) (294) ______ ______ Net cash inflow/(outflow) before use of liquid resources and 853 (810)financing ______ ______ Financing Issue of shares 4 - Repayment of term loans (200) (200)
Capital element of finance lease payments (12)
(49) ______ ______ Net cash outflow from financing (208) (249) ______ ______ Increase/(decrease) in cash in the year 645 (1,059) ______ ______ OTHER AUDITED STATEMENTS
for the year ended 31 March 2007
Consolidated Statement of Recognised Gains and Losses
2007 2006 ‚£'000 ‚£'000 Profit for the financial year 857 801 Actuarial gain 743 555 Related deferred tax (222) (166)
Revaluation of freehold properties 2,122
- ______ ______ Total recognised gains for the year 3,500 1,190 ______ ______
Reconciliation of Movements in Equity Shareholders' Funds
Group Group Company Company 2007 2006 2007 2006 ‚£'000 ‚£'000 ‚£'000 ‚£'000
Opening shareholders' funds 7,026 6,130 6,405
5,035
Recognised gains for the year 3,500 1,190 2,388
1,664 Shares issued 4 - 4 - Dividends paid (299) (294) (299) (294) ______ ______ ______ ______
Closing equity shareholders' 10,231 7,026 8,498
6,405funds ______ ______ ______ ______ NOTESAccounting policiesBasis of preparationThe financial statements are prepared in accordance with applicable accountingstandards under the historical cost convention as modified by the revaluationof certain fixed assets.
The directors have reviewed the accounting policies in accordance with FRS 18 "Accounting Policies" and have concluded that the following changes are required from the previous year.
Basis of consolidation The Group financial statements consolidate the financial statements of the Company and its subsidiary undertakings at 31 March using acquisition accounting. The results of subsidiary undertakings acquired or disposed of during a financial year are included from, or up to, the effective date of acquisition or disposal. On acquisition of a subsidiary, all of the subsidiary's assets and liabilities existing at the date of acquisition are recorded at their fair values reflecting their condition at that date.
Profits or losses on intra-group transactions are eliminated in full.
Earnings per shareThe calculation of earnings per share is based upon the profit after taxationof ‚£857,000 (2006 : ‚£801,000) divided by the weighted average number ofordinary shares in issue during the year, 29,434,906 (2006 : 29,405,659). Thefully diluted earnings per share is based upon the weighted average of30,069,823 shares (2006 : 30,144,743). The dilution in both years is due tosubsisting share options.Reconciliation of operating profit to net cash inflow from operating activities 2007 2006 ‚£'000 ‚£'000 Operating profit 1,520 1,511
Depreciation of tangible fixed assets 473
479
Amortisation of intangible fixed assets 142
142
Profit on sale of tangible fixed assets (3)
(14) Pension scheme curtailment - (374)
Increase/(decrease) in stocks (23)
16 Increase in debtors (279) (902) Increase in creditors 267 605 ______ ______
Net cash inflow from operating activities 2,097
1,463 ______ ______
Analysis of changes in net debt
At At 31 March 31 March 2006 Cashflows 2007 ‚£'000 ‚£'000 ‚£'000 Bank overdraft (2,249) 645 (1,604) Bank loans (250) 200 (50) Finance leases (16) 12 (4) ______ ______ ______ (2,515) 857 (1,658) ______ ______ ______
Reconciliation of net cash flow to movement in net debt
2007 2006 ‚£'000 ‚£'000 Increase/(decrease) in cash in the year 645
(1,059)
Cash outflow from repayment of debt 212
249 ______ ______
Movement in net debt arising from cash flow 857
(810) Net debt at 1 April 2006 (2,515) (1,705) ______ ______ Net debt at 31 March 2007 (1,658) (2,515) ______ ______ Basis of preparationThe financial information set out in this preliminary announcement of resultsdoes not constitute the Company's statutory accounts for the years ended 31March 2007 or 31 March 2006 but is derived from those accounts. Statutoryaccounts for 2006 have been delivered to the Registrar and those for 2007 willbe delivered following the Company's Annual General Meeting. The IndependentAuditors have reported on these accounts. Their reports were unqualified anddid not contain statements under section 237(2) or (2) of the Companies Act1985.Other informationThe Annual General Meeting of the Company will be held at the Company'sregistered office, Ellard House, Dallimore Road, Manchester M23 9NX at 10.30a.m. on Thursday 19 July 2007.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 plc 0161 945 5953Ken Harrison Hanson Westhouse Limited 0113 246 2610Tim Feather / Matthew Johnson
ENSOR HOLDINGS PLCRelated Shares:
ESR.L