29th Sep 2006 08:11
Pochin's PLC29 September 2006 Pochin's PLC Annual Results for the year ending 31 May 2006 Highlights • Record profit of £9.4m from continuing activities (2005: £6.2m) • Strong result from property activities • Further investment in future development and joint venture projects • Construction Services repositioned following a programme of disposals • Residential delivers first profits Chairman's Statement I am delighted to report that the group has continued to make excellent progressin the year to 31 May 2006, producing another record set of results. Profitbefore taxation from continuing operations, reported for the first time underInternational Financial Reporting Standards (IFRS), is £9.4m (2005: £6.2m), onturnover of £124.3m (2005: £87.3m). In line with our progressive dividendstrategy, the board recommends a final dividend of 6.00p making a total for theyear of 8.75p (2005: 7.6p), an increase of 15.1%. With the detail provided under corporate governance in the following pages itmakes me wonder in what form the future Chairman's Statement will be, howeverfor the time being I will follow the previous format, albeit reduced. Contracting Although turnover has increased it is disappointing that profits are down. Asanticipated, results in the second half of the year were successful inrecovering the losses reported at the interim stage. Our policy of long termpartnerships and management of risk, combined with our expertise, attention todetail and careful selection of projects, is proving to be beneficial to theprogress of the division. Construction Services Results this year are similar to last year, but having sold the Avoidatrenchbusiness and completed MBO's with Cheshire Concrete Products and PipelineDrillers, we have restructured the management team to concentrate on ourconcrete pumping operations. Our reputation in concrete pumping has been builton the standards and quality of our service and we continue to review andimprove our fleet to ensure that it is in line with our customers' requirements. Property After a successful half year, the property division has improved on that resultwith new developments at Crewe Green, comprising a number of retail units, ahotel and public house, and a number of smaller offices and industrial units atMidpoint 18, which have all proved successful with a good mix of lettings andsales. Elsewhere, we have continued to invest in the acquisition of strategicsites for mixed use purposes, both on our own account and within joint ventures.In previous reports I have referred to problems at Manchester Technopark but Iam now pleased to report further lettings and more than 50% of the availablespace is now occupied. Residential Pochin Homes, operating in a general housing market slow down, has producedsolid results, with sales of 48 units. We are actively searching for furthersites, but acquiring suitable land is proving difficult in the competitiveenvironment created by demand from the major housebuilders. We have,nonetheless, been successful in improving our land bank. Board & Senior Management After 40 years with the group I will be stepping down as chairman and from theboard at the end of 2006. I would like to thank all my fellow board members fortheir support and hard work in helping to achieve these excellent results. I am pleased to welcome Richard Fildes, who was appointed as an independentnon-executive director on 7 August 2006. The intention is that Richard will takeover from me as chairman and his experience, professionalism and enthusiasm willbe a great asset to the group. He will be the first non-executive chairman ofthe group and I would like to wish him every success in taking up his new role. I welcomed both Nicholas Fry and Michael Chadwick to the board in my interimstatement and they have made significant contributions to our progress thisyear. Nicholas Fry has been confirmed as the senior independent non-executivedirector and as chairman of the audit and remuneration committees. William Underwood will be retiring at the AGM. He was, until recently, thesenior independent non-executive director and has acted as chairman of all boardcommittees during his time with the group. I would like to extend our sincerethanks to William for his contribution to the board for over six years and,especially, for his assistance in establishing and implementing the measuresrequired to comply with the Combined Code. David Hedley was appointed as company secretary on 3 July 2006. David is aqualified solicitor with extensive experience in property and commercial mattersand I am pleased to welcome him to the team. Employees My thanks go to all our employees - we are very fortunate to have such talentedpeople and without their efforts we would not be able to achieve continuing goodresults. Prospects We have started the new financial year with a good order book, a slimmed downconstruction services division and a number of profitable property transactionsidentified. The group has an enthusiastic management team and is well positionedto meet the challenges likely to be encountered during the coming year. John H Woodcock Chairman 29 September 2006 Enquiries: Pochin's PLC David Shaw, Chief Executive 01606 833 333 John Edwards, Finance Director Charles Stanley Securities Philip Davies/Rick Thompson 020 7149 6457 Chief Executive's Review Overview The Pochin Group operates in the construction and property sectors through fourcomplementary trading divisions: • Contracting • Property • Residential • Construction Services These divisions operate autonomously, reporting to myself and the group's board. Contracting We are a well established and recognised key provider in the North Westcontracting market, with a proven track record of quality projects delivered toclients' expectations. Turnover for the year, including internal work for our property division was£76.4m (2005: £76.5m). Profits, however have fallen from £0.86m in the previousyear to £0.47 in 2006 prior to a special pension contribution of £0.35m. We have maintained the level of turnover, despite several projects taking longerthan anticipated to start on site towards the end of the financial year. Similarissues had affected the results in the first half of the year and so we arepleased with the recovery of the losses reported at that stage and with theprofitable result for the full year. We have continued to improve our resourcesthroughout the year by a combination of training and recruitment and we havefurther refined our risk management techniques. These measures have contributedto our success in the year. We are continuing with our long-term strategy togradually increase turnover, reduce overheads as a proportion of that turnover,and enhance net margin as a result. However, we are not prepared to compromiseour reputation for quality and reliability in pursuit of that goal, nor will weseek turnover at unrealistic prices. Invitations to bid for new work continue to arrive on a consistent basis and wenow have £62.0m (2005: £68.0m) of secured work for the current year. Approximately 70% of our turnover was again achieved as a result of negotiatedor partnered contracts with valued clients. Many of those are clients for whomwe have worked previously and 50% of our turnover was generated from repeatbusiness. We have set high standards for ourselves by asking our clients to rate theservice we provide at three stages during a contract. We do not just ask if ourservice was poor, average or good, but rather seek feedback across a range oftwelve key performance indicators so that our clients' views are fullyrepresented. Our success rate measured against those criteria has improved to90%, which represents a consistently high standard of customer satisfaction.There is always room for improvement and we strive continuously to improve ourscores, using the valuable feedback from our clients. We have further developed our customer service beyond completion of the projectson sites by the introduction of an aftercare team. They are on hand to attend toany problems that may arise once our client has taken possession of thecompleted building. Our clients have told us that they see this as an extremelyvaluable continuation of our customer service. We received a Built in Quality Award this year in recognition of the highstandards of construction and workmanship achieved in the completion of the 790bed student accommodation for Manchester Metropolitan University in Crewe,Cheshire. Property We are committed to an expansion of our property activities. Our objective is toincrease the flow of development transactions to deliver a consistent revenuestream. The division continues to be involved in a diverse range of developmentprojects throughout the north west of England and North Wales and has made aprofit of £9.97m on sales of £35.40m. Improvements in yields in the student accommodation sector precipitated thedisposal of the 790 bed halls of residence leased to Manchester MetropolitanUniversity at the Crewe Gateway development. Further activity includeddevelopment and construction of 'The Duke of Gloucester' public house, a 56 bedTravelodge plus a 6000 sq ft retail scheme with 3000 sq ft let to the UnitedCooperative food Stores Limited. At Crewe Business Park we have acquired another 5.5 acres of land and obtainedplanning for a 112 bed hotel and a phased office development due for completionwithin the next three years. Midpoint 18 at Middlewich continues to be a key development for the division andthe latest speculative developments of Verity Court and Valley Court have beencompleted during the year followed by occupation by a variety of end userseither through sale or lease. Some of the more mature units on the estate havebecome vacant in the year due to leases coming to term and we are undertakingimprovements to these buildings with the intention of securing new occupiers. Elsewhere, during the year we acquired an Investment property at Deeside. Afterthe year end we successfully completed the Med IC3 building at Keele Park wherethere are a number of promising enquiries from potential occupiers and we haveacquired 28 acres of land at Ellesmere, Shropshire with strong potential for amixed use development. Joint Ventures Our aim Is to control the growth of the development business by sharing some ofthe associated risk with partners who are able to add value, financial resourceand opportunities to the joint venture. The group's strategic relationship with UK Land and Property Limited continueswith the purchase of Horton House, a landmark office building in a primelocation in Liverpool city centre secured after the year end. This prestigiousoffice building was acquired with a secured agreement to lease that will anchorthe investment once the building has been refurbished. A further 25,000 sq ftunit has been completed at Hawarden Business Park and we have also acquired 22acres of land adjacent to the existing development. Trinity Court Developments Limited, a joint venture set up to develop aresidential and retail scheme at Holyhead Marina is due to complete theconstruction of 26 waterside apartments and associated commercial space withinthe next three months. The project has been designed and built by Pochin(Contractors) Limited, with 14 of the properties sold prior to completion. We are working closely with Castlewood Developments Limited on a number ofopportunities, the largest of which is the redevelopment of part of Birkenheadtown centre. We are working very closely with Wirral Borough Council and otherstakeholders to bring this scheme through to its construction phase. Pochin Rosemound (Deeside) Limited, established during the year, has acquiredland at Deeside as a strategic long term land holding. Residential Pochin Homes has established itself as a regional brand in the north west with agrowing reputation for delivering a quality product. Developments in Winsford,Preston Brook and Heald Green, all located in Cheshire, added to those in the "Potteries", provide a broader base and increased selling opportunities. We have been active on seven developments during the year and completed sales of48 homes (2005: 28). The division generated a turnover of £7.7m (2005: £3.0m)and its first significant profit contribution to the group of £0.5m (2005:£0.01m) since it was established in 2003. The landbank also actively beenincreased, with the number of secured plots now standing at 271. We anticipate an improvement in the current challenging market conditions overthe next twelve months as confidence appears to be returning. Construction Services The planned disposal of Cheshire Concrete Products (MBO), Pipeline Drillers(MBO) and Avoidatrench Limited (trade sale) is now complete enabling thedivision to focus on its core activity of concrete pump hire. Pochin Concrete Pumping maintains its market leading position by providing ahigh quality service to customers throughout the UK. Sales rose by 14% to £13.8mgenerated by 20,500 separate hires. Average utilisation was 77% for the year andour reliability factor exceeded 99%. Improvements in management structure, administration software, and thestreamlining of customer relationship management systems have all played theirpart in increased efficiency and better margins. With the increased emphasis on site safety and risk management we have alwaysendeavored, through training and safety policy, to provide the customer withhigh standards in this area. This has been endorsed by the award OHSAS 18001:1999 "Occupational Health and Safety Management Systems", which is a publiclyrecognised audited standard for safety and is held in high regard within a widecross section of industry. A notable achievement during the year was to pump concrete a UK record distanceof 1,900m for the Heathrow Express extension. The Pumi concept, a combined concrete pump, placing boom and concrete mixer, hasseen a shift in the partnering model from the main ready mixed concreteproducers to a more balanced position where the division runs its own operation. This arrangement is proving to be particularly successful in the London areaand the company will continue to pursue the expansion of the fleet on a nationalbasis. David Shaw Chief Executive Financial Review International Financial Reporting Standards (IFRS) This Annual Report is the group's first to be presented under IFRS.Reconciliations of the group's profit for the year ending 31 May 2005 andbalance sheet at 31 May 2005, showing the effects of changes in presentation andaccounting policies arising from the adoption of IFRS on the figures reportedunder UK GAAP in September 2005. Further details and reconciliations explainingthe transition to IFRS are available on the group's website, www.pochins.plc.uk. Trading Results Total revenue grew by 42.4% to a record £124.3m (2005: £87.3m) resulting in aprofit for the year from continuing operations before tax of £9.4m (2005:£6.2m). This overall record performance was dominated by the contribution madeby the major development completion at Crewe in the first half of the year. The Contracting division showed a healthy growth in activity and delivered astrong second half performance, but due to a poor start to the year itsoperating profit was £0.47m, further reduced by a special pension contributionof £0.35m to £0.12m (2005: £0.87m). The Property division performedexceptionally well, delivering projects and making significant new investmentsthat will contribute to group profits in future years. Property turnover was£35.4m (2005: £13.0m) delivering a profit of £9.97m (2005: £6.4m). ConstructionServices division underwent significant restructuring, reducing its cost baseand disposing of three non-core operations resulting in a charge (after tax) tothe income statement of £1.85m. Concrete pumping reported sales of £13.8m(2005: £12.1m) resulting in a trading profit of £0.2m, which was reduced to abreakeven position for the year following a special pension contribution chargeof £0.15m (2005: £0.13m). Residential showed continued growth in a difficultmarket completing 48 units (2005: 28 units) to produce a turnover of £7.7m(2005: £3.0m) and a profit of £0.5m (2005: £nil). Earnings per Share and Dividend Diluted earnings per share on continuing activities were 28.5p (2005: 20.2p) Diluted earnings per share after discontinued activities were 18.2p, down 8.5%on the previous year due to the impact of the disposal costs of discontinuedactivities and a high tax rate. Subject to approval at the AGM, a final dividend of 6.0p per share (2005: 5.10p)will be paid on 7 November 2006. This will result in a full year dividend of8.75p per share (2005: 7.60p), which continues the group's progressive dividendgrowth policy and shows an annual increase of 15.1%. Dividend cover is 2.0 times (2005: 2.6 times). Balance Sheet Net assets have increased by 3.2% to £45.8m (2005: £44.4m) equivalent to 220pper share (2005: 213p). Non current assets have increased by £10.2m (18.8%)following completion of the Travelodge at Crewe, purchase of an investmentproperty at Deeside and further investment in joint venture activities.Completion of major contracts had the single biggest impact on working capitalwith inventories falling by £14.6m to £26.2m and short-term borrowings (net ofcash) reducing by £5.9m to £17.9m. There were no new long-term borrowing arrangements made in the year. In accordance with IAS19 the pension deficit of £5.2m (2005: £4.4m) is includedin non-current liabilities for the first time. Cash Strong cash flow from operating activities provided further capacity for theGroup to invest in its core activities whilst reducing its net debt position.Operating activities, before interest and tax, generated £25.8m, £15.1m wasinvested in new schemes, both in-house and via joint venture activities andtotal borrowings were reduced by £7.0m to £28.2m. Disposal of non-coreoperations generated cash receipts of £0.5m; the balance of £0.35m beingreceived after the year end. 2006 2005 IFRS IFRS Operating activities 25.8 (8.0)Interest and dividends (1.6) (2.2)Taxation (3.5) (2.1)Sale/purchase of property and assets (7.5) (2.9)Acquisitions/disposals 0.5 (2.2)Increase in interest in joint ventures (6.8) (1.6)Other 0.1 0.2 7.0 (18.8) Disposals Following a strategic review of its activities, the Group disposed of CheshireConcrete Products, Pipeline Drillers and Avoidatrench Limited for a combinedsale value of £0.85m. Cheshire Concrete Products and Pipeline Drillers were inthe form of asset sales to their respective management teams and AvoidatrenchLimited was a share sale to Land & Marine Project Engineering Limited, which wascompleted after the year end. The total impact of these disposals was £2.2m before tax comprising £0.38mtrading losses and £1.85m write down of investment value. Full disclosure isshown in Note 31 to the accounts and is included in the income statement underdiscontinued activities (after tax). Joint Ventures The group has continued its commitment to the development of future businessthrough its strategic relationships with joint venture partners. During 2006 thegroup's net investment in joint ventures and associated companies increased to£14.3m (2005: £9.9m). Due to fluctuations in the timescales and projectedoutcomes on certain projects the group has taken the prudent approach to writedown some initial investment values. The impact of these adjustments is a chargeof £2.5m. As at 31 May 2006 the principal interests of the group are inCastlewood Developments (Birkenhead) Limited (£3.1m), Trinity Court DevelopmentsLimited (£0.3m), Pochin Rosemound (Deeside) Limited (£2.3m), Hawarden BusinessPark Limited (£1.3m), UKLP Developments Limited (£1.0m) and ManchesterTechnopark Limited (£1.3m). The group continues to have investment interests inManchester Science Park Limited (£1.5m) and UK Land & Property Limited (£0.7m). Pensions The last full formal actuarial valuation of the Pochin's defined benefit scheme,closed to new members since 31 December 2001, was carried out on 1 July 2005 andupdated on 31 May 2006. In accordance with IAS19, pension charges of £0.99m (2005: £0.47m) have beenmade to the income statement. The group's balance sheet includes the pensionscheme deficit of £5.2m (2005: £4.4m). Full disclosure of all defined benefitscheme assumptions are set out in Note 7 to the accounts. To ensure the long term viability of the defined benefit scheme and to protectthe benefits of its members, the group has proposed a number of changes to thebenefits of members of the scheme together with an additional contribution of£1.2m to the Scheme's fund. Based on the current actuarial assumptions, theseproposals are designed to eliminate the current deficit within a five yearperiod. The proposed rule changes are scheduled to take effect on 1 October 2006following acceptance by the members of the scheme. The first tranche of theadditional contribution of £0.5m was made in May 2006 and is reflected in theincome statement. The balance is due to be paid in October 2006 following thebenefit changes. John Edwards Finance Director Consolidated Income Statement For the year ended 31 May 2006 2006 2005 £'000 £'000Continuing operations Revenue 124,295 87,309Cost of sales (104,096) (76,285)Gross profit 20,199 11,024 Operating expenses (14,343) (9,727)Other operating income 3,212 3,633Gains on revaluation of investment properties 509 2,459Operating profit 9,577 7,389Share of loss after taxation in joint ventures (379) (455)Share of profit after taxation in associates 153 164Finance income 1,898 1,318Finance cost (1,866) (2,233) Profit before taxation 9,383 6,183Taxation (3,551) (2,034)Profit for the year from continuing operations 5,832 4,149 Discontinued operationsLoss for the year from discontinued operations (2,094) (75) Profit for the year 3,738 4,074Attributable to:Equity holders of the company 3,708 4,047Minority interest 30 27Retained profit for the period 3,738 4,074 Earnings per share (basic) 18.4p 20.0pEarnings per share (diluted) 18.2p 19.9pEarnings per share (basic) - continuing operations 28.8p 20.3pEarnings per share (diluted) - continuing 28.5p 20.2poperationsDividends proposed for the period 6.0p 5.1p Consolidated Statement of Recognised Income and Expense 2006 2005 £'000 £'000 Actuarial losses on defined benefit pension scheme (834) (627)Deferred taxation on pension scheme deficit 250 188Net expense recognised directly in equity (584) (439)Profit/(loss) for the financial period 3,738 4,074 Total gains recognised since last period 3,154 3,635Attributable to:Equity holders of the company 3,124 3,608Minority interest 30 27 3,154 3,635 Consolidated Balance Sheet As at 31 May 2006 2006 2005 £'000 £'000Non current assetsIntangible assets 323 1,312Property, plant and equipment 9,544 8,232Investment properties 34,923 30,021Investments Joint ventures 9,128 4,996 Associates 2,378 2,465 Other 2,157 2,157 13,663 9,618Total non current assets 58,453 49,183Current assetsInventories 26,215 40,811Trade and other receivables 19,931 18,093Cash and cash equivalents 791 12,906Assets classified as held for sale and included in disposal 990 -groupsTotal current assets 47,927 71,810Current liabilitiesTrade and other payables 17,948 16,672Corporation tax 1,245 1,529Obligations under finance leases - 176Bank loans and overdrafts 815 726Bank overdraft 18,672 36,702Financial derivatives 174 375Liabilities included in disposal groups 665 -Total current liabilities 39,519 56,180 Net current assets 8,408 15,630Non current liabilitiesBank loans 9,536 10,351Retirement benefit obligation 5,179 4,391Deferred tax liabilities 1,422 1,056Long term provisions 1,050 712Obligations under finance leases - 219Other payables 3,856 3,675Total non current liabilities 21,043 20,404 Net assets 45,818 44,409Shareholders' equityShare capital 5,200 5,200Own shares (954) (847)Revaluation reserve 270 596Retained earnings 41,093 39,237Equity shareholders' funds 45,609 44,186Minority interest 209 223Total equity 45,818 44,409 Consolidated Cash Flow Statement For the year ended 31 May 2006 2006 2006 2005 2005 £'000 £'000 £'000 £'000 Net cash from operating activitiesOperating profit for the year 9,577 7,389Depreciation charge 1,381 1,577Impairment of intangible assets 547 258Charge in respect of share based payments 54 24Profit on sale of fixed assets (313) (94)Gains on revaluation of investment properties (509) (2,459)Provision against investments in joint ventures 2,516 -Income from joint ventures 44 284 Operating profit before changes in working 13,297 6,979capitalDecrease/(increase) in inventories 14,079 (9,726)Increase in receivables (3,438) (4,498)Increase/(decrease) in payables 1,842 (772) 25,780 (8,017)Interest paid (1,866) (2,233)Income taxes paid (3,469) (2,052) Net cash generated/(used) from operating 20,445 (12,302)activitiesInvesting activitiesInterest received 1,898 1,318Purchase of subsidiary undertaking - (2,741)Disposal of businesses 527 -Purchase of investment properties (4,473) (5)Purchase of property, plant and equipment (3,789) (3,672)Proceeds from sale of property, plant and 808 827equipmentReceipt of government grants 427 585Repayment of government grants (237) -Net cash on purchase of subsidiary undertaking - 2,972Increase in interest in joint ventures and (6,831) (1,602)associatesPurchase of unincorporated businesses - (2,445)Purchase of shares by ESOT (107) (240)Net cash used in investing activities (5,003) (11,777) Financing activitiesProceeds from issue of loan capital - 11,000Payment of loan capital (725) (4,832)Payment of finance lease liabilities (395) (192)Dividends paid (1,633) (1,487) Net cash from financing activities (2,753) 4,489 Net (increase)/decrease in cash and cash 5,915 (12,816)equivalents Cash and cash equivalents at beginning of year (23,796) (10,980) Cash and cash equivalents at end of year (17,881) (23,796) Notes The preliminary announcement is prepared in accordance with InternationalFinancial Reporting Standards. This differs from the basis used for the previousyear's accounts and comparatives have been restated accordingly. The Board of Directors approved the preliminary announcement on 28 September2006. The announcement represents non-statutory accounts within the meaning of section240 of the Companies Act 1985. The statutory annual accounts for the year ended31 May 2006, upon which an unqualified audit opinion has been given and whichdid not contain a statement under section 235, 237 (2) or 237 (3) of theCompanies Act 1985, will be sent to the Registrar of Companies. Turnover, Profit before Taxation and Net Assets Segmental information For management purposes, the group is currently organised into four operatingbusiness segments: Contracting, Property, Residential and Construction Services. As operations are carried out entirely within the UK, there is no secondarysegmental information. Inter segmental pricing is done on an arms length open market basis. Segment information about these businesses is presented below. Year ended 31 May 2006 Continuing operations Contracting Property Residential Construction Group Group services management Total £'000 £'000 £'000 £'000 £'000 £'000 RevenueExternal sales 67,317 35,443 7,738 13,797 - 124,295Inter-segment sales 9,085 - - 1,066 - 10,151Eliminations (9,085) - - (1,066) - (10,151)Total revenue 67,317 35,443 7,738 13,797 - 124,295 Segment ResultOperating profit 123 9,836 499 4 (885) 9,577Share of results of joint - (226) - - - (226)ventures and associationsNet finance costs - 135 - (103) - 32Profit before taxation 123 9,745 499 (99) (885) 9,383Taxation (3,551)Profit from continuing operations 5,832 Year ended 31 May 2006 Continuing operations Contracting Property Residential Construction Group Group services Management Total £'000 £'000 £'000 £'000 £'000 £'000 Asset and liabilitiesSegment assets 19,393 58,456 6,541 10,484 - 94,874Investment in equity accounted - 11,506 - - - 11,506joint ventures and associatesTotal assets 19,393 69,962 6,541 10,484 - 106,380Total liabilities 15,781 33,223 6,471 5,087 - 60,562Net assets 3,612 36,739 70 5,397 - 45,818 Other informationCapital expenditure 37 7,661 - 564 - 8,262Depreciation 44 109 - 1,228 - 1,381Impairment of investment in - 2,620 - - - 2,620joint venturesImpairment of inventories - 570 - - - 570Impairment of goodwill - 386 - 161 - 547 Year ended 31 May 2005 Continuing operations Contracting Property Residential Construction Group Group services management Total £'000 £'000 £'000 £'000 £'000 £'000 RevenueExternal sales 59,162 13,024 3,008 12,115 - 87,309Inter-segment sales 17,355 1,380 - 24 - 18,759Eliminations (17,355) (1,380) - (24) - (18,759)Total revenue 59,162 13,024 3,008 12,115 - 87,309 Segment ResultOperating profit 904 7,328 6 126 (975) 7,389Share of results of joint - (291) - - - (291)ventures and associationsNet finance costs - (915) - - - (915)Profit before taxation 904 6,122 6 126 (975) 6,183Taxation (2,034)Profit from continuing operations 4,149 Year ended 31 May 2005 Continuing operations Contracting Property Residential Construction Group Group services management Total £'000 £'000 £'000 £'000 £'000 £'000 Asset and liabilitiesSegment assets 16,554 79,441 5,217 12,320 - 113,532Investment in equity accounted - 7,461 - - - 7,461joint ventures and associatesTotal assets 16,554 86,902 5,217 12,320 - 120,993Total liabilities 12,991 51,638 5,419 6,536 - 76,584Net assets 3,563 35,264 (202) 5,784 - 44,409 Other informationCapital expenditure 38 3,218 - 2,221 - 5,477Depreciation 51 105 - 1,420 - 1,576Impairment of inventories - 1,380 - - - 1,380Impairment of goodwill - 97 - 161 - 258 Earnings per share (continuing activities) The calculation of earnings per share (basic and diluted) for continuingactivities is based on group profit after taxation from continuing activitiesand minority interests of £5,802,000 (2005: £4,122,000) and the 20,800,000ordinary shares of 25p in issue at 31 May 2006 and 31 May 2005. The number ofshares used in the calculation has been reduced at 31 May 2006 for the 686,000(2005: 589,000) shares held in the Employee Share Trust. Basic earnings pershare are 28.8p (2005: 20.3p). The assumed conversion of dilutive optionsincreases the number of shares by 169,000 (2005: 94,000) shares and so dilutedearnings per share decreases to 28.5p (2005: 20.2p). 2006 2005 Weighted Weighted average average Earnings no. of Per share Earnings no. of Per share shares shares £'000 000 p £'000 000 p Basic EPS 5,802 20,154 28.8 4,122 20,262 20.3 Effect of share options - 169 0.3 - 94 0.1 Diluted EPS 5,802 20,323 28.5 4,122 20,356 20.2 Dividends 2006 2005 £'000 £'000 Interim paid - 2.75p per share (2005 : 2.5p) 572 520 Final proposed - 6.0p (2005 : 4.65p) 1,248 967 1,820 1,487 The Directors are proposing a final dividend in respect of the financial yearending 31 May 2006 of 6.0p. It will be paid on 7 November 2006 to shareholderswho are on the register of members on 6 October 2006. The final dividend hasnot been included as a liability as at 31 May 2006 The Annual General Meeting will be held at Merecourt Hotel, Lymm, Cheshire onFriday 3 November 2006. The full report will be posted to shareholders on 12October 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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