12th Dec 2011 07:00
Ensor Holdings plc ("Ensor" or "the Group") Interim results for the period ended 30 September 2011
Chairman's Statement
* Operating profit: up 31% * Earnings per share: up 27% * Interim dividend: up 57%
Continued improvement across the Ensor Group has resulted in operating profits of £607,000 for the half year, a 31% increase on this time last year (2010: £ 463,000).
These very pleasing results have been achieved despite the current prolonged recession within the construction sector and a slow start to the year due to Bank holidays and extended Easter and Royal Wedding breaks. I am therefore particularly encouraged for when national economic growth is achieved and when expected government spending on infrastructure is authorised.
I was able to report six months ago that the Group was debt-free. This position continues and is improved with net cash of £911,000 being generated over the last twelve months. Financial expenses are unchanged despite reduced interest costs, but include slightly increased pension fund deficit charges.
Earnings per share have increased by 27% to 1.4p (2010: 1.1p)
Our operating companies have all made progress since I last reported. Margin improvements have been achieved at our door and security companies as a result of the introduction of new profitable products, price enhancements and advantageous currency movements. Volumes in the packaging division have increased and strong co-operation with our China office has helped to offset polythene price increases during the year. The building products division has improved due to better margins on targeted products in new markets. These advances have all been made in conjunction with the continued robust control of costs.
We are continuing to capitalise on our property assets. Slow but positive progress towards residential planning permission is being made at our site in Brackley, and land optimisation ideas are being considered for our holdings in the Midlands.
We have been looking at a number of acquisition opportunities. It is our intention to ensure that any business that joins the Group will strengthen our position within our core activities.
Although the second half of the year has started well, there are concerns about the political and economic turmoil in Europe. This region provides many trading opportunities for us and so we must therefore remain cautious with our outlook for the rest of the year.
In my last statement, I spoke of our determination to return to being a dividend growth stock. I am therefore pleased to announce that the Board has proposed an interim dividend of 0.275p per share. This is an increase of 57% against last year (2010: 0.175p). It is our desire to continue an upward dividend trend but we will react responsibly to the continuing difficult economic conditions. The interim dividend will be payable on 27 January 2012 to shareholders registered on 30 December 2011.
As always, our strength lies with our staff who I would like to thank for alltheir efforts. I would also like to thank all our shareholders for theircontinued support.K A Harrison TDChairman12 December 2011EnquiriesEnsor Holdings plc 0161 945 5953 Roger Harrison / Marcus Chadwick Westhouse Securities Limited 020 7601 6100 Tim Feather / Matthew Johnson
Condensed Consolidated Income Statement
for the six months ended 30 September 2011
Note Unaudited Unaudited Audited 6 months 6 months 12 months 30/9/11 30/9/10 31/3/11 £'000 £'000 £'000 Revenue 11,132 10,814 21,357 Cost of sales (8,423) (8,353) (16,322) ----------- ----------- ----------- Gross profit 2,709 2,461 5,035 Administrative expenses (2,102) (1,998) (4,097) ----------- ----------- ----------- Operating profit 607 463 938 Financial expenses (58) (59) (125) ----------- ----------- ----------- Profit before tax 549 404 813 Income tax expense 2 (135) (90) (203) ----------- ----------- ----------- Profit for the period 414 314 610 attributable to equity shareholders ====== ====== ====== Earnings per share 3 Basic and fully diluted 1.4p 1.1p 2.1p ====== ====== ====== Dividends per share 4 Dividends paid 0.350p 0.150p 0.325p Dividends proposed 0.275p 0.175p 0.350p ====== ====== ======
Condensed Consolidated Statement of Comprehensive Income
for the six months ended 30 September 2011
Profit for the period 414 314 610 Other comprehensive income: Actuarial loss and related deferred tax - - (188) Revaluation of land and buildings - - (26) ----------- ----------- -----------
Total comprehensive income attributable 414 314 396 to equity shareholders
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Condensed Consolidated Statement of Financial Position
at 30 September 2011 Unaudited Unaudited Audited 30/9/11 30/9/10 31/3/11 £'000 £'000 £'000 ASSETS Non-current assets Property, plant & equipment 4,056 4,126 4,113 Intangible assets 2,438 2,438 2,438 Deferred tax asset 778 860 778 ----------- ----------- ----------- Total non-current assets 7,272 7,424 7,329 ----------- ----------- ----------- Current assets Assets held for sale 542 542 542 Inventories 2,610 2,427 2,390 Trade and other receivables 5,029 4,661 4,596 Cash and cash equivalents 463 - 137 ----------- ----------- ----------- Total current assets 8,644 7,630 7,665 ----------- ----------- ----------- Total assets 15,916 15,054 14,994 ====== ====== ====== LIABILITIES Non-current liabilities
Retirement benefit obligations (3,036) (3,071) (3,111)
Obligations under finance leases (14) - (16) ----------- ----------- ----------- Total non-current liabilities (3,050) (3,071) (3,127) ----------- ----------- ----------- Current liabilities Cash and cash equivalents - (448) - Trade and other payables (4,456) (3,463) (3,766) ----------- ----------- ----------- Total current liabilities (4,456) (3,911) (3,766) ----------- ----------- ----------- Total liabilities (7,506) (6,982) (6,893) ====== ====== ====== NET ASSETS 8,410 8,072 8,101 ====== ====== ====== Equity Share capital 3,062 2,945 2,945 Share premium 470 470 470 Revaluation reserve 545 571 545 Retained earnings 4,333 4,086 4,141 ----------- ----------- ----------- Total equity attributable to equity 8,410 8,072 8,101shareholders ====== ====== ======
Condensed Consolidated Statement of Changes in Equity
for the six months ended 30 September 2011
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 2,945 470 545 4,141 8,1012011 Issue of equity 117 - - - 117shares Purchase of treasury - - - (117) (117)shares Total comprehensive - - - 414 414income Interim dividend paid - - - (105) (105) ----------- ----------- ----------- ----------- ----------- Balance at 30 3,062 470 545 4,333 8,410September 2011 ====== ====== ====== ====== ======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 3,802 7,7882010 Total comprehensive - - (26) 422 396income Dividends paid - - - (83) (83) ----------- ----------- ----------- ----------- ----------- Balance at 31 March 2,945 470 545 4,141 8,1012011 ====== ====== ====== ====== ======
Condensed Consolidated Cash Flow Statement
for the six months ended 30 September 2011
Unaudited Unaudited Audited 6 months 6 months 12 months 30/9/11 30/9/10 31/3/11 £'000 £'000 £'000Net cash generated from operating 496 550 1,312activities ----------- ----------- ----------- Cash flows from investing activities
Proceeds from disposal of property, plant & 29 16 37 equipment
Proceeds from disposal of assets held for - 200 200sale
Acquisition of property, plant & equipment (92) (154) (295)
----------- ----------- ----------- Net cash (absorbed by)/generated from (63) 62 (58)investing activities ----------- ----------- ----------- Cash flows from financing activities Equity dividends paid (105) (30) (83) Amounts repaid in respect of finance leases (2) - (4) ----------- ----------- -----------
Net cash absorbed by financing activities (107) (30) (87)
----------- ----------- ----------- Net increase in cash and equivalents 326 582 1,167 Cash and cash equivalents at beginning of 137 (1,030) (1,030)period ----------- ----------- -----------
Cash and cash equivalents at end of period 463 (448) 137
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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 2011, 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 2012.
3 Earningsper 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 29,781,819 (2010: 29,445,659). The fully diluted loss per share is based upon the weighted average of 30,618,074 shares (6 months to 30 September 2010 - 29,484,289 and year ended 31 March 2011 - 29,665,193). The dilution is due to subsisting share options.
4. Dividends
The directors propose to pay an interim dividend of 0.275 pence per share on 27 January 2012 to shareholders on the register on 30 December 2011 (2010: 0.175 pence per share).
XLONRelated Shares:
ESR.L