24th Jan 2006 07:00
Porvair PLC24 January 2006 For immediate release 24 January 2006 Porvair plc Preliminary results for the year ended 30 November 2005 Strong profit growth and good technical progress in key growth opportunities Porvair plc ("Porvair"), the specialist filtration and environmental technologygroup, today announces its preliminary results for the year ended 30 November2005. Highlights • Profit before tax, exceptional items and goodwill amortisation is up 18% at £3.0m (2004: £2.6m). Profit before tax is £0.87m (2004: £0.33m). • Earnings per share increased by 26% to 4.3p (2004: 3.4p) before goodwill amortisation and exceptional items. Taken after goodwill and exceptional items, losses per share reduced by 45% to 1.1p (2004: 2.0p loss). • The core specialist filtration businesses have performed well with operating profits before goodwill amortisation and exceptional items up by 29% to £5.0m (2004: £3.9m). • Good technical progress has been made in all the key growth opportunities of the Group. • First set of coal gasification filters delivered and orders for three more pilot plants received from new customers. • Sales of aircraft on board fuel-tank inerting filters are expected to start in 2006. • Diesel exhaust filter substrates are in pre-production scale-up trials. • The latest generation of low cost fuel cell plates has shown excellent process capability in manufacturing and is now in qualification trials. • Recommended final dividend increased to 1.05p (2004: 1.0p) per share. Commenting on the results, John Morgan, Chairman, said: "It is truly a pleasure in my last Chairman's statement to be able to reportboth a successful 2005 and encouraging prospects for the future. Results at thecore specialist filtration businesses have been good and a strong performance isexpected again. Technical and commercial progress has been made in the Group'skey growth opportunities. 2006 trading has started encouragingly and Porvair iswell positioned for the future. The Board looks forward with confidence." For further information please contact:Porvair plc 0207 466 5000 (today)Ben Stocks, Chief Executive 01553 765 500 (thereafter)Chris Tyler, Group Finance DirectorBuchanan Communications 0207 466 5000Charles Ryland / Ben Willey Chairman's Statement It is a pleasure to report a good set of results after a busy and successfulyear at Porvair. Before tax, exceptional items and goodwill amortisation,profits were up 18% to £3.0m (2004: £2.6m). Profit before tax increased to£0.87m (2004: £0.33m). The core specialist filtration businesses have performed well with operatingprofits before goodwill amortisation and exceptional items up by 29% to £5.0m(2004: £3.9m). Good technical progress has been made in the key growthopportunities of the Group. Strategy - focus on specialist filtration and environmental technologies In recent years Porvair has transformed itself, and these encouraging resultsdemonstrate the benefits of this work. At the Group's core are profitable andcash generative specialist filtration operations. These high quality businessesoffer a financial and technical springboard for an exciting range of new productinitiatives, principally aimed at technical solutions for cleaner environmentalperformance. The Board sees excellent potential for sustainable growth in thisarea. The Group's notable long-term projects in the environmental sectorinclude the development of: • filters to clean gasified coal; • substrates to reduce diesel exhaust emissions; • fuel cell components; • bioscience filtration devices; • plates to improve gas combustion efficiency. The development investment necessary for these activities has been funded fromcore business cash flows, although as expected this investment has had an impacton Group profits. It is particularly encouraging therefore not only to showprofit growth in 2005, but also demonstrable progress in key developmentprojects. Strong trading performance Group sales were £44.9m (2004: £44.6m) and operating profits before goodwillamortisation and exceptional items rose by 13% to £3.4m (2004: £3.0m) as ouremphasis on higher quality specialist market niches fed through to the results.The core filtration businesses delivered a 29% increase in operating profitsbefore goodwill amortisation and exceptional items to £5.0m (2004: £3.9m). TheGroup continued to invest heavily in its key growth opportunities and the netcost of its Advanced Materials division increased by 22% to £1.6m (2004: £1.3m). The UK based Microfiltration businesses had a particularly good year deliveringa 5% growth in turnover to £25.4m (2004: £24.1m) and a 31% increase in operatingprofits before goodwill amortisation and exceptional items to £4.1m (2004:£3.1m). Improved microplate sales returned Porvair Sciences to growth withrevenues up 7%. The Porvair Filtration Group ("PFG") had a strong year inaerospace, high purity liquids and inkjet systems. A particular highlight wasthe announcement in June 2005 of the agreement to supply filters for ParkerHannifin's aircraft on-board fuel tank inerting system, which is expected tocommence during 2006. The US based Metals Filtration business, Porvair Selee, made healthy progressand coped well with increases in energy costs in the second half of the year.Whilst, turnover reduced by 3% to £18.9m (2004: £19.4m), operating efficienciesand costs control boosted operating profits before goodwill amortisation by 20%to £0.9m (2004: £0.8m). In March the business signed a five-year supply contractwith Alcoa Inc, the world's leading producer of primary aluminium, therebyreinforcing Porvair's position as the market leader in the field of aluminiumfiltration. Demonstrable progress in key growth opportunities Porvair has developed a range of key growth opportunities in recent years, someincremental and some potentially transformational. I am pleased to report thatseveral of these key growth opportunities made very encouraging strides towardscommercialisation during 2005. The first set of coal gasification filters due,under the $20m filtration contract with S G Solutions LLC announced in January2005, were delivered on time. Further pilot scale orders from new customers werereceived in the year and are expected to be delivered in the first half of 2006.Sales of our combustion plate range more than doubled during the year. Themetallic substrate for diesel exhaust emission control has shown excellent testresults and pre-production scale-up work has started. Qualification trials forour latest generation of low cost fuel cell plates are underway. The Board isconfident about the prospects for these technologies in the future. Acquisition of the final stake in PFG In November 2005 the Group acquired the 21% minority position in PFG for £6.25mplus expenses. This was funded by a £3.9m share placing with the balance fromborrowings. Shareholders now get the full benefit of the profits and cash flows generated byPFG and we are pleased to have secured the continued participation of theexisting management team. Strong cash flow I am pleased to report that the Group again delivered strong cash flow from itsoperations. Underlying cash inflow before acquisitions, disposals and financingwas £2.5m (2004:£1.3m). This performance meant that Group net borrowings rose by only £0.5m to £8.5m(2004:£8.0m). Taking account of the additional borrowings to fund theacquisition and the £0.9m increase arising from the retranslation of the Group'sdollar denominated debt this is a very encouraging result. Interest coverbefore goodwill amortisation and exceptional items was a comfortable 9.1 times(2004: 6.5 times) Earnings per share and dividend Earnings per share before exceptional costs and goodwill amortisation increased26% to 4.3p (2004: 3.4p). Including exceptional items and goodwillamortisation, losses per share improved to 1.1p (2004: 2.0p loss). A finaldividend of 1.05p (2004: 1.0p) per share is recommended for 2005. This dividendincrease reflects the capability of the Group to generate cash and its growthprospects. Employees and the Board This will be my last Chairman's statement. After 25 years with the Porvair - thelast seven as non executive Chairman - I have decided to step down. The time isright so to do. The major changes undertaken in recent years are proving asuccess. The Group is on a sound financial footing, has a clear strategy, andis poised to enter a period of exciting growth. Orderly Board successionplanning over the last two years has led to the introduction of three highcalibre directors to the Group: Charles Matthews and Andrew Walker asnon-executive Directors and Christopher Tyler as Finance Director. I have beenimpressed with the contribution they have all made. Your Company is in goodhands. Its management team have faced several difficult challenges in recentyears and proven their ability in overcoming them. We have a strong Board andan experienced Chief Executive. I will hand over the role of non-executive Chairman to Charles Matthews at theAGM in April. Charles has a successful record of entrepreneurial management andexperience of chairmanship in other companies, both public and private. He hasthe right blend of skills to help the executive team deliver Porvair'spotential. On behalf of the Board, I would like to thank our excellent staff for their hardwork in 2005. It has been a busy year, and our people throughout theorganisation have acquitted themselves well. To those of you who, like me, havebeen with Porvair for many years, a personal thank you. Much has been achievedover time and working with you all has been a pleasure. Finally, I am indebtedto Michael Gatenby, the senior non-executive on the Board, whose counsel andadvice, particularly during this transitional period, I have valued highly. Outlook It is truly a pleasure in my last Chairman's statement to be able to report botha successful 2005 and encouraging prospects for the future. Results at the corespecialist filtration businesses have been good and a strong performance isexpected again. Technical and commercial progress has been made in the Group'skey growth opportunities. 2006 trading has started encouragingly and Porvair iswell positioned for the future. The Board looks forward with confidence. Operating and Financial Review Porvair is a specialist filtration business whose proprietary micro-porousmaterials offer both competitive strength and exciting commercial potential. The Group specialises in filters for growing market segments where product lifecycles are long and technical specifications challenging. Such segments, whichinclude aluminium, aerospace, bioscience, nuclear clean-up and high-purityliquids amongst others, require filtration where product performance is morecritical than unit price. Porvair aims to avoid over-dependence in any onemarket - no single market accounts for more than 16% of sales - but theengineering expertise necessary to design the sort of bespoke filters producedby the Group can be spread across a number of the markets the Group serves. Porvair has invested heavily in R&D in recent years in developing new materialsand products that we believe have the potential to transform Porvair. Many ofthese opportunities, which range in scale, risk and timeframe, provide technicalsolutions to help protect the environment, whether by providing key componentsin alternative clean energy systems or controlling emissions from existingsources. The Group believes such opportunities, driven as they are bylegislation or environmental requirements, offer significant potential forfuture growth. Operations 2005 Microfiltration The Microfiltration division delivered a strong performance in the year. Salesin this division grew 5% in 2005 and operating profits before goodwillamortisation and exceptional items grew by 31%. Most segments of this business did well. Of particular note was the 29% growthin high purity liquid filters driven principally by a contract to fit waterfiltration systems to Royal Navy ships. Sales of aerospace filters grew by 10%and ink jet filters growth was 13%. Porvair Sciences recovered well from adifficult 2004 with the core microplate product range growing 16%. Several of the Group's key growth opportunities are under development in thisdivision, and progress was encouraging. A supply agreement for aircrafton-board fuel tank inerting systems was signed with Parker Hannifin in June2005. Commercial sales of this product are expected to commence in 2006. Recentcomments by the Federal Aviation Authority in the US suggest that use of suchsystems may become widespread in the years ahead. The first set of coalgasification filters due under the $20m supply agreement with S G Solutions LLCannounced in January 2005 were built and delivered. Enquiries from othercustomers in this fast developing field grew quickly during the year and PFGsecured three further orders for pilot gasification plants from new customers.PFG is also utilising its expertise in porous plastic technology to develop arange of bioscience filtration devices, several of which are in early stagetrials. These are exciting prospects for the Group. Metals filtration Porvair Selee ('Selee') had a good year, and dealt well with pressure on rawmaterial and energy prices. Sales fell marginally to £18.9m (2004: £19.4m) as afew US customers idled their capacity in the face of higher energy costs but bydriving through operational efficiencies, controlling costs and, later in theyear, passing through price increases Selee was able to deliver operating profitbefore goodwill amortisation growth of 20%. Several successes at Selee during the year augur well: the plant ran well, withscrap levels at an all time low. Engineered Ceramics, a division specialising inmetals handling, posted a record year for sales and profits. Selee's innoculantfilter continued to pick up new customers. An alliance agreement with AshlandCasting Solutions was signed under which Ashland, a major supplier to thefoundry industry worldwide, will sell the Selee foundry filter range. This willprovide Ashland with a new range of high performance products to sell, andshould significantly increase Selee's access to market. Porvair Advanced Materials ('PAM') PAM is developing two unique micro-porous materials for use in a range ofapplications including fuel cells, diesel exhaust emission control, combustionand heat exchange. These projects are complex and unforeseen challenges are tobe expected. Consequently, determining when new products will start to generaterevenue is unpredictable and, although 2005 has been a good year for technicalprogress at PAM, sales for the year are lower than in 2004 when our 2003generation of prototype bipolar plates were being sold. However, the prognosis for the year ahead is exciting. Our metallic substratefor diesel exhaust emission control has shown excellent test results with over100,000 miles of on-road testing completed and we are currently working throughthe challenges of production scale-up. Our bipolar plate for fuel cells hasmade good technical progress in 2005. We are now confident that it can be massproduced efficiently. This moulded product, when compared to those produced asrecently as 2003, offers similar technical performance at almost one tenth ofthe price. Final qualification trials at our lead customer, UTC Fuel Cells, LLC,started at the end of 2005. Sales of our combustion plate range more thandoubled during the year and we achieved Underwriters Laboratory certification ona new product designed for food preparation. Exceptional items The Group benefited from a net £0.1m exceptional credit in the period. Thiscomprised an exceptional credit of £0.7m arising on the collection of a debtthat had been written off prior to the acquisitions of 2001; and a charge of£0.6m principally relating to additional property costs associated with thebusiness disposals of 2003. Shareholders' funds Shareholders' funds of £33.3m were £2.8m higher than at 30 November 2004.Shareholders' funds were increased by a share issue of £3.9m net of expenses,profit after tax before goodwill amortisation of £2.2m and exchange gains of£0.1m. Shareholders' funds were reduced by goodwill amortisation of £2.2m, theminority's interest in the profit and loss account of £0.4m, and dividends paidand proposed of £0.8m. Cash Flow The Group generated good cash flow in 2005. Net cash inflow from operatingactivities before exceptional cash items was £4.6m (2004: £4.9m). Net cashinflow from operating activities was £4.5m (2004: £2.8m). Exceptional cashoutflows of £0.1m relate to the settlement of a number of items associated withbusiness disposals undertaken in 2003 off set by the receipt of a previouslywritten off debt of £0.7m. Capital expenditure was £0.8m (2004: £1.2m). Net interest paid was £0.3m(2004: £0.5m) and £0.8m (2004: £nil) was paid in tax making a net cash inflowfrom operations before acquisitions disposals and financing of £2.5m (2004:£1.3m). Interest cover before goodwill amortisation and exceptional items was9.1 times (2004: 6.5 times). The Group paid £0.7m (2004: £0.7m) in dividends. £6.6m including professionalfees was paid to acquire the 21% of PFG that the Group did not already own. Anet £3.9m was received from a placing of 3.7m shares issued to raise finance forthe acquisition of the stake in PFG with the balance of the consideration fundedby borrowings. £1.3m was received in relation to disposals which were completedin 2003 and 2004. The Group's reduction in net debt before exchange differences was £0.4m.Currency translation effects of the dollar denominated borrowings increased netdebt by £0.9m, resulting in an overall increase in net debt of £0.5m. At the year end the Group had net borrowings of £8.5m (2004: £8.0m) comprisinggross borrowings of £9.5m offset by cash balances of £1.0m. The Group hadunutilised borrowing facilities of £4.5m and an unutilised overdraft facility of£3m. The Group's gearing (net debt as a percentage of shareholders' funds) remainedconstant at 26%. Tax The Group tax charge of £0.9m represents an effective tax rate of 29% on profitsbefore goodwill amortisation and exceptional items. The tax charge comprisescurrent tax of £1.0m and a deferred tax credit of £0.1m. The Group carries adeferred tax asset in relation to the losses in its US operations. The taxcredits associated with this year's losses in the US have not been recognised. Finance & Treasury policy The treasury function at Porvair is managed centrally, under Board supervision.It is not a profit centre and does not undertake speculative transactions. Itseeks to limit the Group's exposure to trading in currencies other than itsoperations' local currency and to hedge its investments in currencies other thanSterling. The Group does not hedge against the impact of exchange ratemovements on the translation of profits and losses of overseas operations. At the year end the Group had $18.1m of dollar borrowings exposure which hedgedunderlying US assets on the balance sheet of $17.1m. In addition, the Group hasa Euro 1.6m interest bearing debtor that was fully hedged by borrowings inEuros. The Group finances its operations by a combination of share capital and retainedprofits and short and long term loans. Borrowings are principally at floatingrate. Pension schemes The Group continues to support its closed defined benefit pension scheme in theUK and provide access to a defined contribution scheme for its US employees andother UK employees. In the exceptional charges arising in 2003 the Group provided for additionalcash payments to the defined benefit pension scheme to be paid over thefollowing three years. During the year the Group made a £550,000 payment, inaddition to its ongoing funding commitments, and expects to make a furtherpayment of £550,000 in March 2006. The Group continues to account for its pension scheme under SSAP 24 and carriesa pension prepayment on the balance sheet of £0.7m (2004: £0.7m). Under FRS 17the Group has a pension scheme deficit of £6.8m (2004: £7.3m). If FRS 17 hadbeen applied to these accounts then the Group's shareholders' funds would havebeen reduced by £4.7m (2004: £4.5m). Adoption of International Financial Reporting Standards The Group will be required to adopt International Financial Reporting Standards("IFRS") with effect from 1 December 2005. An initial assessment of the impacton the Group's financial statements and underlying processes has been made andregular updates on progress have been given to the audit committee. Theprincipal adjustments that the Group will be required to make to the existingaccounts include: ceasing the amortisation of goodwill, providing for thepension deficit and charging the profit and loss account with an increasedpension charge, revaluing the long term debtor at fair value and charging theprofit and loss account with an appropriate charge for options awards. Group profit and loss accountFor the year ended 30 November 2005 2005 2005 2005 2004 2004 2004 Before Goodwill Exceptional Before Goodwill exceptional amortisation items goodwill amortisation items and (note 3) amortisation goodwill amortisation £'000 £'000 £'000 £'000 £'000 £'000 £'000Turnover 44,873 - - 44,873 44,632 - 44,632Cost of sales (30,985) - - (30,985) (30,466) - (30,466)Gross profit 13,888 - - 13,888 14,166 - 14,166Distribution costs (510) - - (510) (485) - (485)Research and developmentexpenses (3,291) - - (3,291) (3,181) - (3,181)Administrative expenses (6,687) (2,221) 67 (8,841) (7,937) (2,224) (10,161)Group operating profit/(loss) before share ofprofit in associatedundertaking 3,400 (2,221) 67 1,246 2,563 (2,224) 339Share of operating profit inassociated undertaking - - - - 454 - 454Operating profit/(loss) -continuing operations 3,400 (2,221) 711 1,890 2,563 (2,224) 339Operating profit/(loss) -discontinued operations - - (644) (644) 454 - 454Total operating profit/ 3,400 (2,221) 67 1,246 3,017 (2,224) 793(loss)Interest payable (net) (372) - - (372) (460) - (460)Profit/(loss) on ordinaryactivities before taxation 3,028 (2,221) 67 874 2,557 (2,224) 333Tax on profit/(loss) onordinary activities (889) - (20) (909) (833) - (833)Profit/(loss) on ordinaryactivities after taxation 2,139 (2,221) 47 (35) 1,724 (2,224) (500)Equity minority interests (561) 201 - (360) (457) 208 (249)Profit/(loss) for thefinancial year 1,578 (2,020) 47 (395) 1,267 (2,016) (749)Dividends (793) (736)Deficit for the financial (1,188) (1,485)yearEarnings/(loss) per share(basic and diluted) 4.3p (5.5)p 0.1p (1.1)p 3.4p (5.4)p (2.0)pDividend per share 2.05p 2.00p Group reconciliation of movements in equity shareholders' fundsFor the year ended 30 November 2005 2004 £'000 £'000 Loss for the financial year (395) (749)Dividends (793) (736)Deficit for the financial year (1,188) (1,485)Exchange differences 113 (239)New shares issued 3,908 -Net increase/(reduction) in shareholders' funds 2,833 (1,724)Opening shareholders' funds 30,472 32,196Closing shareholders' funds 33,305 30,472 Statement of total recognised gains and lossesFor the year ended 30 November 2005 2004 £'000 £'000 Loss for the financial year (395) (749)Exchange differences 113 (239)Total losses recognised in the year (282) (988) Group balance sheetAt 30 November 2005 2004 £'000 £'000Fixed assetsIntangible assets 26,502 27,785Tangible assets 8,057 8,241 34,559 36,026Current assetsStocks 6,103 5,897Debtors falling due within one year 7,970 8,263Debtors falling due after more than one year 2,682 3,071 10,652 11,334Cash at bank and in hand 1,001 3,047 17,756 20,278 Creditors: amounts falling due within one year (8,377) (7,753)Net current assets 9,379 12,525 Total assets less current liabilities 43,938 48,551 Creditors: amounts falling due after more than one year (9,012) (10,052)Provisions for liabilities and charges (1,621) (2,508) 33,305 35,991 Capital and reservesCalled up share capital 810 736Share premium account 32,513 28,679Other reserves (987) (1,100)Profit and loss account 969 2,157Total equity shareholders' funds 33,305 30,472Equity minority interests - 5,519Capital employed 33,305 35,991 Group cash flow statementFor the year ended 30 November 2005 2004 £'000 £'000 Net cash inflow from operating activities 4,457 2,811 Dividend from associated undertaking - 161Returns on investments and servicing of financeInterest received 185 112Interest paid (494) (635)Net cash outflow from returns on investments and servicing offinance (309) (523)TaxationUK corporation tax (paid)/refunded (800) 18Overseas tax paid - (18) (800) -Capital expenditure and financial investmentPurchase of tangible fixed assets (842) (1,228)Sale of tangible fixed assets - 57Net cash outflow from capital expenditure and financialinvestment (842) (1,171)Acquisitions and disposalsDisposal of subsidiaries' assets and liabilities 300 -Sale of associated undertaking 988 526Acquisition of minority interest in a subsidiary (6,603) -Net cash (outflow)/inflow from acquisitions and disposals (5,315) 526 Equity dividends paid (736) (736) Net cash (outflow)/inflow before financing (3,545) 1,068FinancingIssue of ordinary shares 4,048 -Expenses of share issue (140) -Decrease in borrowings (2,508) (1,827)Net cash inflow/(outflow) from financing 1,400 (1,827)Decrease in net cash in the year (2,145) (759) Reconciliation of net cash flow to movement in net debtDecrease in cash in the year (2,145) (759)Decrease in borrowings 2,508 1,827Change in net debt from cash flows 363 1,068Exchange differences (869) 1,035Movement in net debt in year (506) 2,103Opening net debt (8,005) (10,108)Closing net debt (8,511) (8,005) Turnover and segmental analyses The geographical analyses of the Group's turnover and segmental analyses ofturnover, operating profit/(loss) and net assets are set out below: 2005 2004 By By destination By origin destination By origin £'000 £'000 £'000 £'000 TurnoverUnited Kingdom 12,181 25,392 12,707 24,121Continental Europe 5,144 - 5,735 -Americas 22,019 19,481 21,036 20,511Asia 4,376 - 3,526 -Australasia 503 - 665 -Africa 650 - 963 - 44,873 44,873 44,632 44,632 2005 2004 £'000 £'000TurnoverMetals Filtration 18,861 19,387Microfiltration 25,392 24,121Advanced Materials 620 1,124 44,873 44,632 Operating profit/ 2005 2004(loss) Operating Operating profit/(loss) profit/ before goodwill Operating (loss) Operating amortisation profit/ before profit/ and exceptional Exceptional (loss) after goodwill (loss) after items Goodwill items goodwill amortisation Goodwill goodwill amortisation (note 3) amortisation amortisation amortisation £'000 £'000 £'000 £'000 £'000 £'000 £'000Metals Filtration 919 (1,211) - (292) 765 (1,213) (448)Microfiltration 4,096 (1,010) 711 3,797 3,123 (1,011) 2,112Advanced Materials (1,615) - - (1,615) (1,325) - (1,325)Operating profit/(loss) -continuing operations 3,400 (2,221) 711 1,890 2,563 (2,224) 339Operating profit/(loss) -discontinued operation - - (644) (644) - - -Share of operatingprofit in associatedundertaking - - - - - 454 - 454discontinuedTotal operating profit 3,400 (2,221) 67 1,246 3,017 (2,224) 793/(loss) Turnover and segmental analyses continuedAs at 30 NovemberNet assets 2005 2004 Before Including Before Including goodwill Goodwill goodwill goodwill Goodwill goodwill £'000 £'000 £'000 £'000 £'000 £'000Metals Filtration 6,323 11,738 18,061 6,252 12,733 18,985Microfiltration 8,120 14,764 22,884 8,686 15,052 23,738Advanced Materials 1,034 - 1,034 809 - 809 15,477 26,502 41,979 15,747 27,785 43,532Long term loan 1,089 1,112Deferredconsideration 700 1,988Taxation 67 81Dividend payable (425) (368)Net borrowings (8,511) (8,005)Continuing Group 34,899 38,340Discontinuedoperations (1,594) (2,349)Net assets 33,305 35,991 Reconciliation of operating profit to net cash flow from operating activities 2005 2004 £'000 £'000Total Group operating profit before share ofassociated undertaking and exceptional items 1,179 339Goodwill amortisation 2,221 2,224Depreciation 1,506 1,654Loss on sale of fixed assets 4 4(Increase)/decrease in stocks (19) 359(Increase)/decrease in debtors (235) 963Decrease in creditors (85) (629)Net cash inflow from operating activities beforeexceptional items 4,571 4,914Cash inflow relating to exceptional items -continuing operations 711 -Cash outflow relating to exceptional items -discontinued operations (825) (2,103)Net cash inflow from operating activities 4,457 2,811 Additional notes 1. Exchange rates Exchange rates for US dollar during the period were: Average rate 30 Average rate 30 Closing rate 30 Closing rate 30 Closing rate 1 Nov 05 Nov 04 Nov 05 Nov 04 Dec 03 US dollar 1.8377 1.8134 1.7304 1.9115 1.7199 2. Dividends The Board has recommended a final dividend of 1.05p per share (2004: 1.0p) to be paid on 2 May 2006 to shareholders on the register at the close of business on 7 April 2006. The ex-dividend date for the shares is 5 April 2006. This makes a total dividend for the year of 2.05p (2004: 2.00p). 3. Exceptional items The exceptional items comprised a credit of £0.7m arising on the collection of a debt that had been written off prior to the acquisitions of 2001; and a charge of £0.6m principally relating to additional property costs associated with the business disposals of 2003. 4. Nature of financial statements These financial statements are not the full financial statements for the Group. The abridged profit and loss account and balance sheet for the year to 30 November 2004 is an extract from the full accounts for that year which have been delivered to the Registrar of Companies; the report of the auditors on those accounts was unqualified. The full financial statements for this year, on which the auditors have reported without qualification, have not yet been delivered to the Registrar of Companies. A full copy of the financial statements will be delivered to the Registrar following the Company's annual general meeting. 5. Annual general meeting The Company's annual general meeting will be held on Wednesday 12 April 2006 at Brampton House, Bergen Way, King's Lynn. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Porvair