10th Dec 2010 07:00
Ensor Holdings PLC ("Ensor" or "the Group") Interim results for the period ended 30 September 2010
Chairman's Statement
* Sales: up 8% to £10,814,000 * Operating profit: up 146% to £463,000 * Interim dividend reintroduced
It is extremely pleasing that I can again report continuing robust progress across the Group.
Since I wrote to you at this time two years ago, we have endured a severe recession in the UK construction industry and very difficult global economic conditions. Despite these negative factors, these results demonstrate the success of our actions to control costs, manpower and stocks with stronger buying, which have all had a positive impact on margins.
Although I am confident we can build on this trend, we do need to be aware that there are continued difficult market conditions ahead, with uncertainties in Europe and Dollar tensions in the Far East. These are markets upon which we rely on for supplies and trading partnerships.
Sales for the six months to 30 September 2010 were up by 8% to £10,814,000 (2009: £10,020,000). Our operating profit of £463,000 compares with a profit of £188,000 for the same period last year. Financing expenses have halved to £ 59,000 (2009: £117,000), reflecting our good cash generation from trading activities and an improvement in the value of our pension assets.
Earnings per share for this six month period have increased to 1.0p from 0.2p this time last year.
Working capital management and control of costs have contributed to our cash position. Our borrowings have reduced to £448,000 (2009: £1,413,000) giving a gearing figure for the Group of 6% (2009: 18%). This gives us substantial borrowing headroom and allows us to take advantage of any business or acquisition opportunity that may arise.
All our businesses have contributed to this result. The building products activities have held up well in the current climate, as has our roofing tools business. The market position of our industrial door supply companies has been strengthened and they have increased sales and profitability year on year. Our specialist packaging materials business has benefited from sourcing more product though our China office which continues to support and develop our activities in the Far East. Our rubber processing company has found market conditions difficult, particularly the sourcing of raw materials, but has still contributed to the half year result.
During the last twelve months we have been working towards obtaining planning permission to build a number of houses on our Brackley site. This process is moving on and we expect to receive Local Authority approval in due course when we will be able to market this valuable asset.
The second half of the year has started well, but traditionally our results have been affected by a short month in December and weather conditions impacting on the building trade. We are also keeping a close watch on the effects of Government spending cuts on the construction market. We feel however that we are well placed to deal with most eventualities.
With the sustained improvement in our trading and the strength of our balance sheet, we are pleased to reintroduce an interim dividend of 0.175p per share (2009: nil). This compares with our March 2010 final dividend of 0.15p per share. The interim dividend will be payable on 28 January 2011 to shareholders registered on 31 December 2010.
Finally, once again, I would like to thank our shareholders for their continued support and all the staff at Ensor for their hard work, which has contributed to the Group's continued strong performance.
K A Harrison TDChairman10 December 2010Enquiries:Ensor Holdings PLCRoger Harrison / Marcus Chadwick0161 945 5953Westhouse Securities LimitedTim Feather / Matthew Johnson0113 246 2610
Condensed Consolidated Income Statement
for the six months ended 30 September 2010
Note Unaudited Unaudited Audited 6 months 6 months 12 months 30/9/10 30/9/09 31/3/10 £'000 £'000 £'000 Revenue 10,814 10,020 19,443 Cost of sales (7,915) (7,449) (14,109) ----------- ----------- ----------- Gross profit 2,899 2,571 5,334 Distribution costs (438) (404) (873) Administrative expenses (1,998) (1,979) (3,957) ----------- ----------- ----------- Operating profit 463 188 504 Financial expenses (59) (117) (248) ----------- ----------- ----------- Profit before tax 404 71 256 Income tax (expense)/credit 2 (90) (10) 127 ----------- ----------- ----------- Profit for the period 314 61 383attributable to equity shareholders ====== ====== ====== Earnings per share 3 Basic and fully diluted 1.0p 0.2p 1.3p ====== ====== ====== Dividends per share 4 Dividends paid 0.150p 0.000p 0.000p Dividends proposed 0.175p 0.000p 0.150p ====== ====== ======
Condensed Consolidated Statement of Comprehensive Income
for the six months ended 30 September 2010
Profit for the period 314 61 383 Other comprehensive income: Actuarial loss and related deferred tax - - (317) ----------- ----------- ----------- Total comprehensive income attributable 314 61 66to equity shareholders ====== ====== ======
Condensed Consolidated Balance Sheet
at 30 September 2010 Unaudited Unaudited Audited 30/9/10 30/9/09 31/3/10 £'000 £'000 £'000 ASSETS Non-current assets Property, plant & equipment 4,126 4,181 4,117 Intangible assets 2,438 2,438 2,438 Deferred tax asset 860 741 886 ----------- ----------- ----------- Total non-current assets 7,424 7,360 7,441 ----------- ----------- ----------- Current assets Assets held for sale 542 742 742 Inventories 2,427 2,689 2,451 Trade and other receivables 4,661 4,492 4,185 ----------- ----------- ----------- Total current assets 7,630 7,923 7,378 ----------- ----------- ----------- Total assets 15,054 15,283 14,819 ====== ====== ====== LIABILITIES Non-current liabilities Retirement benefit obligations (3,071) (2,646) (3,165) Deferred tax - (102) - ----------- ----------- ----------- Total non-current liabilities (3,071) (2,748) (3,165) ----------- ----------- ----------- Current liabilities Cash and cash equivalents (448) (1,413) (1,030) Trade and other payables (3,463) (3,339) (2,836) ----------- ----------- ----------- Total current liabilities (3,911) (4,752) (3,866) ----------- ----------- ----------- Total liabilities (6,982) (7,500) (7,031) ====== ====== ====== NET ASSETS 8,072 7,783 7,788 ====== ====== ====== Equity Share capital 2,945 2,945 2,945 Share premium 470 470 470 Revaluation reserve 571 571 571 Retained earnings 4,086 3,797 3,802 ----------- ----------- ----------- Total equity attributable to equity 8,072 7,783 7,788shareholders ====== ====== ======
Condensed Consolidated Statement of Changes in Equity
for the six months ended 30 September 2010
Attributable to equity holders of the parent
Issued Share Revaluation Retained Total Capital Premium Reserve Earnings Equity £'000 £'000 £'000 £'000 £'000 Balance at 1 April 2,945 470 571 3,802 7,7882010 Total comprehensive - - - 314 314income Interim dividend paid - - - (30) (30) ----------- ----------- ----------- ----------- ----------- Balance at 30 2,945 470 571 4,086 8,072September 2010 ====== ====== ====== ====== ======Balance at 1 April 2,945 470 571 3,736 7,7222009 Total comprehensive - - - 61 61income ----------- ----------- ----------- ----------- ----------- Balance at 30 2,945 470 571 3,797 7,783September 2009 ====== ====== ====== ====== ======Balance at 1 April 2,945 470 571 3,736 7,7222009 Total comprehensive - - - 66 66income ----------- ----------- ----------- ----------- ----------- Balance at 31 March 2,945 470 571 3,802 7,7882010 ====== ====== ====== ====== ======
Condensed Consolidated Cash Flow Statement
for the six months ended 30 September 2010
Unaudited Unaudited Audited 6 months 6 months 12 months 30/9/10 30/9/09 31/3/10 £'000 £'000 £'000 Cash flows from operating activities Continuing operations 665 446 644 Discontinued operations - 196 477 ----------- ----------- ----------- Net cash generated from operating 665 642 1,121activities ----------- ----------- ----------- Cash flows from investing activities Proceeds from disposal of property, 16 30 41plant & equipment Proceeds from disposal of assets held 200 234 308for sale Acquisition of property, plant & (154) (130) (221)equipment ----------- ----------- ----------- Net cash generated from investing 62 134 128activities ----------- ----------- ----------- Cash flows from financing activities Equity dividends paid (30) - - Contributions to pension scheme (115) (90) (180) ----------- ----------- ----------- Net cash absorbed by financing (145) (90) (180)activities ----------- ----------- ----------- Net increase in cash and equivalents 582 686 1,069
Cash and cash equivalents at beginning (1,030) (2,099) (2,099) of period
----------- ----------- ----------- Cash and cash equivalents at end of (448) (1,413) (1,030)period ====== ====== ======
Notes to the Interim Report
1. Basis of preparation
The unaudited results for the six months have been prepared in accordance with International Financial Reporting Standards ("IFRS") and do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The interim report has not been prepared in accordance with IAS 34, "Interim Financial Reporting" in that it does not contain full disclosure of accounting policies and does not detail compliance with other standards. These disclosures are dealt with in the Group's annual report.
The statutory accounts for the year ended 31 March 2010, prepared under IFRS, have been delivered to the Registrar of Companies and received an unqualified audit report.
2. Income tax expense
The income tax expense is calculated using the estimated tax rate for the year ended 31 March 2011.
3 Earnings per share
The calculation of earnings per share for the period is based on the profit for the period divided by the weighted average number of ordinary shares in issue, being 29,445,659 (for this and both comparative periods). The fully diluted loss per share is based upon the weighted average of 29,484,289 shares (6 months to 30 September 2009 - 29,549,830 and year ended 31 March 2010 - 29,445,659). The dilution is due to subsisting share options.
4. Dividends
The directors propose to pay an interim dividend of 0.175 pence per share on 28 January 2011 to shareholders on the register on 31 December 2010 (2009: £nil).
vendorRelated Shares:
ESR.L