24th Jan 2007 07:30
Renishaw PLC24 January 2007 Renishaw plc and subsidiary undertakings 24th January 2007 Interim results 2007Interim results for the half year ended 31st December 2006 Consolidated income statement 6 months to 6 months to December 2006 December 2005 £'000 £'000 Revenue 87,120 81,625Cost of sales (48,128) (43,341) ----------- -----------Gross profit 38,992 38,284 ----------- ----------- Distribution costs (16,407) (14,785)Administrative expenses (10,572) (9,617) ----------- -----------Operating profit 12,013 13,882 Financial income 3,978 3,330Financial expenses (2,478) (1,872) ----------- -----------Profit before tax 13,513 15,340 Income tax expense (2,703) (3,068) ----------- -----------Profit for the period 10,810 12,272 ----------- ----------- Earnings per share (basic and diluted) 14.9p 16.9pProposed dividend per share 7.05p 6.71p Consolidated statement of recognised income and expense 6 months to 6 months to December 2006 December 2005 £'000 £'000 Foreign exchange translation differences (394) 326 Actuarial loss in the pension schemes (13,693) (2,660)Changes in fair value of cash flow hedges 511 (83)Deferred tax on items recognised on income andexpense 4,014 825 ----------- -----------Loss recognised in equity (9,562) (1,592)Profit for the period 10,810 12,272 ----------- -----------Total recognised income and expense for theperiod 1,248 10,680 ----------- -----------Opening adjustment on adoption of IAS 32 andIAS 39 2,234 ----------- 12,914 ----------- Consolidated balance sheet At December At December 2006 2005 £'000 £'000 AssetsProperty, plant and equipment 69,779 67,615Intangible assets 13,654 7,530Investments in associates 908 928Deferred tax assets 14,633 10,940 ----------- -----------Total non-current assets 98,974 87,013 ----------- ----------- Inventories 30,995 28,195Trade receivables 32,814 33,134Current tax 298 360Other receivables 7,656 6,109Cash and cash equivalents 26,549 25,708 ----------- -----------Total current assets 98,312 93,506 ----------- ----------- ----------- -----------Total assets 197,286 180,519 ----------- -----------EquityIssued capital 14,558 14,558Share premium 42 42Currency translation reserve (129) 981Cash flow hedging reserve 2,365 2,176Retained earnings 116,179 110,642 ----------- -----------Total equity 133,015 128,399 ----------- -----------LiabilitiesEmployee benefits 32,058 22,200Deferred tax liabilities 11,756 10,481 ----------- -----------Total non-current liabilities 43,814 32,681 ----------- ----------- Trade payables 10,926 9,444Current tax 2,177 2,064Provisions 891 642Other payables 6,463 7,289 ----------- -----------Total current liabilities 20,457 19,439 ----------- ----------- Total liabilities 64,271 52,120 ----------- -----------Total equity and liabilities 197,286 180,519 ----------- ----------- Consolidated statement of cash flow 6 months to 6 months to December 2006 December 2005 £'000 £'000 Cash flows from operating activitiesProfit for the period 10,810 12,272 ----------- -----------Adjustments for:Amortisation of development costs 1,052 724Amortisation of other intangibles 493 302Depreciation 3,765 3,743Profit on sale of fixed assets (8) (14)Financial income (3,978) (3,330)Financial expenses 2,478 1,872Tax expense 2,703 3,068 ----------- ----------- 6,505 6,365 ----------- ----------- Increase in inventories (2,636) (799)Decrease/(increase) in trade and otherreceivables 2,471 1,830(Decrease)/increase in trade and otherpayables (2,951) (1,169)Difference between pension charge andcontributions 259 (720)Increase in provisions 98 10 ----------- ----------- (2,759) (848) ----------- ----------- Income taxes paid (2,018) (3,637) ----------- -----------Cash flows from operating activities 12,538 14,152 ----------- -----------Investing activitiesPurchase of tangible fixed assets (5,902) (7,082)Development costs capitalised (2,240) (1,177)Purchase of other intangibles (416) (187)Investment in associates - (928)Sale of tangible fixed assets 93 313Interest received 785 1,040 ----------- -----------Cash flows from investing activities (7,680) (8,021) ----------- -----------Financing activitiesInterest paid (20) (12)Dividends paid (10,969) (9,972) ----------- -----------Cash flows from financing activities (10,989) (9,984) ----------- ----------- Net decrease in cash and cash equivalents (6,131) (3,853) Cash and cash equivalents at beginning ofperiod 30,728 30,072Effect of exchange rate fluctuations on cashheld 1,952 (511) ----------- -----------Cash and cash equivalents at end of period 26,549 25,708 ----------- ----------- Revenue analysis 6 months to 6 months to First half December 2006 December 2005 revenue at previous year exchange rates £'000 £'000 £'000 Continental Europe 31,672 26,884 31,897Far East, including Japan &Australia 25,766 25,029 28,303North & South America 22,025 22,095 23,703Other overseas regions 2,425 2,593 2,544UK and Ireland 5,232 5,024 5,232 ----------- ----------- -----------Revenue 87,120 81,625 91,579 ----------- ----------- ----------- ************************* NOTES: 1. The Interim report was approved by the directors on 24th January 2007. This interim financial information has been prepared on the basis of theaccounting policies adopted in the most recent annual financial statements,these being for the year ended 30th June 2006, as revised for the implementationof specified new amended endorsed standards or interpretations. The interim financial information for the six months to 31st December 2006 andthe comparative figures for the six months to 31st December 2005 are unaudited.The comparative figures for the financial year ended 30th June 2006 are anabridged version of the statutory accounts for that financial year. Thoseaccounts have been reported on by the Company's auditors and delivered to theregistrar of companies. The report of the auditors was unqualified and did notcontain a statement under section 237(2) or (3) of the Companies Act 1985. 2. The interim dividend of 7.05p net per share for the yearended 30th June 2007 will be paid on 9th April 2007 to shareholders on theregister on 9th March 2007. ************************** Chairman's statement I report the Company's results for the first six months of the current financialyear ended 31st December 2006. Revenue in this period increased 7% to £87.1m (2005: £81.6m), representinggrowth of 12% at constant exchange rates and demonstrating good progress in allour major geographic markets. There was above average growth in dental, styli,machine tool and encoder products which offset a softening in the market forco-ordinate measuring machine (CMM) products. Operating profit for the period was £12.0m (2005: £13.9m).The adverse impact ofthe strong pound on the profit for the period, which was highlighted at the AGMin October, is estimated to be £3.1m. Profit before tax amounted to £13.5m(2005: £15.3m). Profit after tax was £10.8m resulting in earnings per share of14.9p (2005: 16.9p). Net cash balances at 31st December 2006 were £26.5m (2005:£25.7m). We remain committed to a high level of research and development which, includingassociated engineering costs, amounted to £14.8m (2005: £13.8m), an increase of7%. New products introduced include the UCClite controller from our CMM productline, an optical toolsetter (OTS) and optical interface (OMI-2T) from ourmachine tool product line and the REXM high accuracy angle encoder. Capital expenditure during the six months amounted to £5.5m (2005: £7.2m). The refurbishment at Woodchester is complete and equipment for the new automatedstores is being commissioned. The laser and calibration product line has beensuccessfully relocated to Woodchester. At New Mills, the former machine shop hasbeen refurbished and now provides pre-production machining and assemblyfacilities with further investment being made in the Group's rapid prototypingfacility. In India, we have expanded our sales and procurement activities and theproduction facility at Pune is now operational and the software development teamhas been established. The Company has continued to strengthen its worldwide marketing representation,in particular a new subsidiary has been established in Singapore and twoadditional regional offices in Brazil. The Company announced on 19th January 2007 that agreement had been reached withthe Trustees of the Company's defined benefit pension scheme to cease futureaccrual for current members of the scheme and future employees. The pension fundliability as at 31st December 2006, measured under the rules for IAS19accounting purposes, has increased to £32.1m (30th June 2006: £18.8m) reflectingthe latest triennial valuation undertaken by the scheme actuary on 29thSeptember 2006. This valuation resulted in a £41m funding deficit on an ongoingbasis which reduces to £24m after the proposed changes. This change shouldreduce the reported deficit at the end of our financial year and reduce theGroup's exposure to future volatility. The Company and Trustees are now in theprocess of consultation with members to establish a new defined contributionscheme (with a Company contribution of 11%) within the existing pension schemetrust to take effect from 6th April 2007. Although we remain very confident for the longer term, at this stage it appearslikely that the adverse effects of currency exchange rates, together with thesoftening of demand for our products in the CMM market (with some developmentdelays in delivering certain of our new and in-demand products, in particularthe REVO(TM) and GYRO(TM)), will result in profits for the full year being belowthose for last year. An interim dividend of 7.05p per share (2006: 6.71p per share) will be paid on9th April 2007 to shareholders on the register on 9th March 2007. Sir David R McMurtry, CBE, RDI, CEng, FIMechE, FREngChairman & Chief Executive24th January 2007 Enquiries: B R Taylor 01453 524445 A C G Roberts 01453 524445 Registered number: 1106260Registered office: New Mills, Wotton-under-Edge, Gloucestershire. GL12 8JRTelephone: 01453 524524 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Renishaw