26th Aug 2008 07:00
26 August 2008
Judges Capital plc
("Judges Capital", the "Company" or the "Group")
Interim results for the six months ended 30 June 2008
JUDGES CAPITAL REPORTS RECORD MID-YEAR RESULTS
Highlights
Alex Hambro, Chairman of Judges Capital, commented: "Each of our three operating divisions produced higher sales and increased their respective EBITA contributions to central costs and interest charges.
"The first-half trading performance and the improved cash balances put the Company in a strong position to pursue further suitable acquisitions, a strategy that is a priority for your Board."
For further information please contact:
David Cicurel, CEO, Judges Capital
Tel: 01342 323 600
Pascal Keane, Shore Capital & Corporate
Tel: 020 7408 4090
Melvyn Marckus, Cardew Group
Tel: 020 7930 0777
Chairman's statement
I am delighted to announce the interim results for the six months ended 30 June 2008. Your Company achieved record sales of £3,484,000 (six months ended 30 June 2007: £2,836,000), pre-tax profits of £672,000 (2007: £190,000) and basic earnings per share of 11.8p (2007: 3.2p). Adjusted basic earnings per share (before amortisation of intangible assets) amounted to 12.6p (2007: 4.6p).
The current year started with a robust order book which resulted in a strong trading performance by all subsidiaries. Each of our three operating divisions produced higher sales and increased their respective EBITA contributions to central costs and interest charges. During the last 12 months the annual return on total invested capital ("ROTIC") in the Company's operations rose from 20% to 34%.
Order intake for the period was similar to the figures recorded in the first half of 2007 and the order book at 30 June 2008 stood slightly above the level of June 2007, albeit below the exceptionally high level reached at the end of 2007.
The Group's trading performance has resulted in increased earnings per share and cash balances. Adjusted fully diluted EPS reached 12.5p compared to 4.6p in the first half of 2007, the latter figure being restated to comply with the "treasury method" requirements of accounting standard IAS 33. Cash in hand stood at £1,575,000 at 30 June 2008, compared to £910,000 at 31 December 2007, despite the purchase of the freehold property ("Unit 18") with our own funds. Net debt was reduced to £1,067,000 (31 December 2007: £1,932,000).
Our markets remain strong and we have an encouraging pipeline of orders. However, as previously highlighted by the Directors, the first half performance should not be extrapolated in respect of the full-year.
The Board is pleased to declare an interim dividend of 1.2p (2007: 1.1p), which is 10 times covered by earnings. This will be paid on Friday 3 October 2008 to shareholders on the register on Friday 5 September 2008. The shares will go ex-dividend on Wednesday 3 September 2008.
The first-half trading performance and the improved cash balances put the Company in a strong position to pursue further suitable acquisitions, a strategy that is a priority for your Board.
The Hon. Alexander Robert Hambro
Chairman
26 August 2008
JUDGES CAPITAL plc
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
|
Unaudited |
6 months to 30 June 2008 |
6 months to 30 June 2007 |
Year to 31 December 2007 |
|
|
Note |
£ |
£ |
£ |
|
|
Continuing operations |
||||
|
Revenue |
3,484,254 |
2,836,251 |
6,191,965 |
|
|
Operating costs |
(2,738,517) |
(2,539,961) |
(5,267,084) |
|
|
Profit from operations |
745,737 |
296,290 |
924,881 |
|
|
Profit on disposal of available-for-sale investments |
- |
- |
142,217 |
|
|
Finance income |
26,546 |
15,060 |
32,987 |
|
|
Finance costs |
(100,669) |
(121,015) |
(241,772) |
|
|
Profit before tax |
671,614 |
190,335 |
858,313 |
|
|
Taxation |
(177,207) |
(54,608) |
(231,496) |
|
|
Profit for the period |
494,407 |
135,727 |
626,817 |
|
|
Attributable to: |
||||
|
Equity holders of the parent company |
431,372 |
113,334 |
552,468 |
|
|
Minority interest |
63,035 |
22,393 |
74,349 |
|
|
494,407 |
135,727 |
626,817 |
||
|
Earnings per share |
Pence |
Pence |
Pence |
|
|
Basic |
4 |
11.8 |
3.2 |
15.5 |
|
Diluted (restated - see Note 4) |
4 |
11.7 |
3.2 |
15.5 |
JUDGES CAPITAL plc
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
|
Unaudited |
30 June 2008 |
30 June 2007 |
31 December 2007 |
|
|
Note |
£ |
£ |
£ |
|
|
ASSETS |
||||
|
Non-current assets |
||||
|
Property, plant and equipment |
804,205 |
279,469 |
274,626 |
|
|
Goodwill |
4,383,347 |
4,389,963 |
4,383,347 |
|
|
Other intangible assets |
3 |
34,671 |
123,547 |
75,909 |
|
Available-for-sale investments |
20,000 |
267,950 |
20,000 |
|
|
5,242,223 |
5,060,929 |
4,753,882 |
||
|
Current assets |
||||
|
Inventories |
695,947 |
489,134 |
553,311 |
|
|
Trade and other receivables |
1,143,172 |
1,240,222 |
1,543,011 |
|
|
Cash and cash equivalents |
1,575,329 |
648,317 |
910,366 |
|
|
3,414,448 |
2,377,673 |
3,006,688 |
||
|
Total assets |
8,656,671 |
7,438,602 |
7,760,570 |
|
|
LIABILITIES |
||||
|
Current liabilities |
||||
|
Trade and other payables |
(825,987) |
(705,453) |
(877,226) |
|
|
Current portion of long-term borrowings |
(596,877) |
(492,721) |
(527,008) |
|
|
Current tax payable |
(483,712) |
(229,548) |
(299,771) |
|
|
(1,906,576) |
(1,427,722) |
(1,704,005) |
||
|
Non-current liabilities |
||||
|
Long-term borrowings |
(2,065,355) |
(2,568,958) |
(2,335,751) |
|
|
Deferred tax liabilities |
(33,697) |
(86,539) |
(35,934) |
|
|
(2,099,052) |
(2,655,497) |
(2,371,685) |
||
|
Total liabilities |
(4,005,628) |
(4,083,219) |
(4,075,690) |
|
|
Net assets |
4,651,043 |
3,355,383 |
3,684,880 |
|
|
Unaudited |
30 June 2008 |
30 June 2007 |
31 December 2007 |
|
|
Note |
£ |
£ |
£ |
|
|
EQUITY |
||||
|
Share capital |
201,884 |
178,044 |
178,044 |
|
|
Share premium account |
2,956,346 |
2,501,430 |
2,501,430 |
|
|
Merger reserve |
475,074 |
475,074 |
475,074 |
|
|
Retained earnings |
839,824 |
79,705 |
408,452 |
|
|
Revaluation reserve |
450 |
34,156 |
450 |
|
|
Equity attributable to equity holders of the parent company |
4,473,578 |
3,268,409 |
3,563,450 |
|
|
Minority interest |
177,465 |
86,974 |
121,430 |
|
|
Total equity |
4,651,043 |
3,355,383 |
3,684,880 |
JUDGES CAPITAL plc
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
|
Unaudited |
Share capital |
Share premium |
Merger reserve |
Profit & loss account |
Revalua-tion reserve |
Total |
Minority interest |
Total equity |
|
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
||
|
Balance at 1 January 2007 |
178,044 |
2,501,430 |
475,074 |
(33,629) |
(5,743) |
3,115,176 |
64,581 |
3,179,757 |
|
|
Changes in equity for first half of 2007 |
|||||||||
|
Gains/(losses) on revaluation of available-for-sale investments |
- |
- |
- |
- |
57,000 |
57,000 |
- |
57,000 |
|
|
Tax on revaluation gains/(losses) taken directly to equity |
- |
- |
- |
- |
(17,101) |
(17,101) |
- |
(17,101) |
|
|
Net income recognised directly in equity |
- |
- |
- |
- |
39,899 |
39,899 |
- |
39,899 |
|
|
Profit for the period |
- |
- |
- |
113,334 |
- |
113,334 |
22,393 |
135,727 |
|
|
Total recognised income and expense for the period |
- |
- |
- |
113,334 |
39,899 |
153,233 |
22,393 |
175,626 |
|
|
Balance at 30 June 2007 |
178,044 |
2,501,430 |
475,074 |
79,705 |
34,156 |
3,268,409 |
86,974 |
3,355,383 |
|
Share capital |
Share premium |
Merger reserve |
Retained earnings |
Revalua-tion reserve |
Total |
Minority interest |
Total equity |
||
|
Note |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
|
Balance at 1 January 2007 |
178,044 |
2,501,430 |
475,074 |
(33,629) |
(5,743) |
3,115,176 |
64,581 |
3,179,757 |
|
|
Changes in equity for 2007 |
|||||||||
|
Transferred to profit or loss on disposal of available-for-sale investments |
- |
- |
- |
- |
6,193 |
6,193 |
- |
6,193 |
|
|
Net income recognised directly in equity |
- |
- |
- |
- |
6,193 |
6,193 |
- |
6,193 |
|
|
Profit for the year |
- |
- |
- |
552,468 |
- |
552,468 |
74,349 |
626,817 |
|
|
Total recognised income and expense for the year |
- |
- |
- |
552,468 |
6,193 |
558,661 |
74,349 |
633,010 |
|
|
Dividends |
6 |
- |
- |
- |
(110,387) |
- |
(110,387) |
(17,500) |
(127,887) |
|
Balance at 31 December 2007 |
178,044 |
2,501,430 |
475,074 |
408,452 |
450 |
3,563,450 |
121,430 |
3,684,880 |
|
Unaudited |
Share capital |
Share premium |
Merger reserve |
Profit & loss account |
Revalua-tion reserve |
Total |
Minority interest |
Total equity |
|
|
Note |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
|
Balance at 1 January 2008 |
178,044 |
2,501,430 |
475,074 |
408,452 |
450 |
3,563,450 |
121,430 |
3,684,880 |
|
|
Changes in equity for first half of 2008 |
|||||||||
|
Profit for the period |
- |
- |
- |
431,372 |
- |
431,372 |
63,035 |
494,407 |
|
|
Total recognised income and expense for the period |
- |
- |
- |
431,372 |
- |
431,372 |
63,035 |
494,407 |
|
|
Dividends |
- |
- |
- |
- |
- |
- |
(7,000) |
(7,000) |
|
|
Issue of share capital |
23,840 |
454,916 |
- |
- |
- |
478,756 |
- |
478,756 |
|
|
Balance at 30 June 2008 |
201,884 |
2,956,346 |
475,074 |
839,824 |
450 |
4,473,578 |
177,465 |
4,651,043 |
JUDGES CAPITAL plc
CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT
|
Unaudited |
6 months to 30 June 2008 |
6 months to 30 June 2007 |
Year to 31 December 2007 |
|
|
Note |
£ |
£ |
£ |
|
|
Cash flows from operating activities |
||||
|
Profit after tax |
494,407 |
135,727 |
626,817 |
|
|
Adjustments for: |
||||
|
Depreciation |
36,047 |
33,517 |
70,289 |
|
|
Amortisation of intangible assets |
41,238 |
72,377 |
120,015 |
|
|
Profit on disposal of property, plant and equipment |
- |
- |
(611) |
|
|
Profit on disposal of available-for-sale investments |
- |
- |
(142,217) |
|
|
Foreign exchange (gains)/losses |
44,809 |
(3,616) |
27,443 |
|
|
Finance income |
(26,546) |
(15,060) |
(32,987) |
|
|
Finance costs |
100,669 |
121,015 |
241,772 |
|
|
Tax expense recognised in income statement |
177,207 |
54,609 |
231,496 |
|
|
Increase in inventories |
(142,636) |
(86,193) |
(150,370) |
|
|
Decrease/(increase) in trade and other receivables |
399,839 |
8,817 |
(293,972) |
|
|
(Decrease)/increase in trade and other payables |
(51,239) |
(73,683) |
161,518 |
|
|
Cash generated from operations |
1,073,795 |
247,510 |
859,193 |
|
|
Finance costs paid |
(82,655) |
(102,694) |
(242,399) |
|
|
Tax recovered/(paid) |
4,497 |
(106,847) |
(249,651) |
|
|
Net cash from operating activities |
995,637 |
37,969 |
367,143 |
|
|
Cash flows from investing activities |
||||
|
Acquisition of subsidiaries, net of cash acquired |
- |
- |
(57,384) |
|
|
Purchase of property, plant and equipment |
(565,626) |
(17,518) |
(57,032) |
|
|
Proceeds from disposal of equipment |
- |
- |
8,196 |
|
|
Proceeds from disposal of available-for-sale investments |
- |
- |
342,000 |
|
|
Finance income received |
26,546 |
15,060 |
32,987 |
|
|
Net cash (used in)/ generated from investing activities |
(539,080) |
(2,458) |
268,767 |
|
|
Cash flows from financing activities |
||||
|
Issue of share capital |
478,756 |
- |
- |
|
|
Repayments of borrowings |
(263,350) |
(211,350) |
(421,813) |
|
|
Dividends paid (including to minorities) |
6 |
(7,000) |
- |
(127,887) |
|
Net cash from/(used in) financing activities |
208,406 |
(211,350) |
(549,700) |
|
|
Net increase/(decrease) in cash and cash equivalents |
664,963 |
(175,839) |
86,210 |
|
|
Cash and cash equivalents at beginning of period |
910,366 |
824,156 |
824,156 |
|
|
Cash and cash equivalents at end of period |
1,575,329 |
648,317 |
910,366 |
JUDGES CAPITAL plc
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. General information
The financial information set out in these condensed consolidated interim financial statements for the six months ended 30 June 2008 and the comparative figures for the six months ended 30 June 2007 are unaudited. This financial information does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The group's statutory financial statements for the year ended 31 December 2007, prepared under International Financial Reporting Standards (IFRS), received an unqualified audit report, did not contain statements under sections 237(1) and 237(2) of the Companies Act 1985 and have been filed with the Registrar of Companies.
2. Basis of preparation
These June 2008 condensed consolidated interim financial statements of Judges Capital plc are for the six months ended 30 June 2008. They have been prepared taking into account the requirements of IAS 34 "Interim Financial Reporting". They do not contain all the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the group for the year ended 31 December 2007, which have been prepared in accordance with IFRS. The financial policies applied are largely consistent with those of the consolidated financial statements for the group for the year ended 31 December 2007, as described in those financial statements. The only exception relates to the taxation policy where for the purpose of the interims the tax charge on underlying business performance is calculated by reference to the estimated effective rate for the full year.
As explained more fully in Note 4, comparative figures for diluted and adjusted diluted earnings per share have been restated.
3. Additions and amortisation of intangible assets
The following tables show the significant additions to and amortisation of intangible assets:
|
Carrying amount at 1 January 2008 |
Additions |
Amortisation |
Carrying amount at 30 June 2008 |
|
|
£ |
£ |
£ |
£ |
|
|
Customer relationships |
61,655 |
- |
38,989 |
22,666 |
|
Non-competition agreements |
14,254 |
- |
2,249 |
12,005 |
|
Total |
75,909 |
- |
41,238 |
34,671 |
|
Carrying amount at 1 January 2007 |
Additions |
Amortisation |
Carrying amount at 30 June 2007 |
|
|
£ |
£ |
£ |
£ |
|
|
Advertising contracts |
2,488 |
- |
1,867 |
621 |
|
Distribution agreements |
16,333 |
- |
16,333 |
- |
|
Customer relationships |
158,348 |
- |
51,927 |
106,421 |
|
Non-competition agreements |
18,755 |
- |
2,250 |
16,505 |
|
Total |
195,924 |
- |
72,377 |
123,547 |
|
Carrying amount at 1 January 2007 |
Additions |
Amortisation |
Carrying amount at 31 December 2007 |
|
|
£ |
£ |
£ |
£ |
|
|
Advertising contracts |
2,488 |
- |
2,488 |
- |
|
Distribution agreements |
16,333 |
- |
16,333 |
- |
|
Customer relationships |
158,348 |
- |
96,693 |
61,655 |
|
Non-competition agreements |
18,755 |
- |
4,501 |
14,254 |
|
Total |
195,924 |
- |
120,015 |
75,909 |
4. Earnings per share
The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.
The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares and the post-tax effect of interest, on the assumed conversion of all dilutive options and other dilutive potential ordinary shares.
The company has adopted a more rigorous approach in its assessment of whether options or similar instruments are dilutive, in line with the treasury method prescribed in IAS 33. As a result, certain options previously considered to be dilutive at 30 June 2007 and 31 December 2007 are no longer considered to be so. Comparative figures have been restated accordingly. The treasury method regards the assumed proceeds from these instruments as having been received from the issue of ordinary shares at the average market price of ordinary shares during the period. The difference between the number of ordinary shares issued and the number of ordinary shares that would have been issued at the average market price of ordinary shares during the period is treated as an issue of ordinary shares for no consideration.
Reconciliations of the earnings and the weighted average number of shares used in the calculations are set out below:
|
6 months to 30 June 2008 |
Earnings attributable to equity holders of the parent company |
Weighted average number of shares |
Earnings per share |
|
£ |
No. |
Pence |
|
|
Profit after tax for calculation of basic earnings per share |
431,372 |
||
|
Notional taxed interest income accruing on dilution |
12,286 |
||
|
Profit after tax for calculation of diluted earnings per share |
443,658 |
||
|
Add-back amortisation of intangible assets, net of tax |
29,486 |
||
|
Adjusted diluted profit before amortisation of intangible assets |
473,144 |
||
|
Number of shares for calculation of basic earnings per share |
3,658,341 |
||
|
Dilutive effect of potential shares |
534,548 |
||
|
Number of shares for calculation of diluted earnings per share |
4,192,889 |
||
|
Basic earnings per share |
11.8 |
||
|
Diluted earnings per share |
11.7 |
||
|
Adjusted basic earnings per share |
12.6 |
||
|
Adjusted diluted earnings per share |
12.5 |
||
|
6 months to 30 June 2007 |
Earnings attributable to equity holders of the parent company |
Weighted average number of shares |
Earnings per share |
|
£ |
No. |
Pence |
|
|
Profit after tax for calculation of basic earnings per share |
113,334 |
||
|
Notional taxed interest income accruing on dilution |
- |
||
|
Profit after tax for calculation of diluted earnings per share |
113,334 |
||
|
Add-back amortisation of intangible assets, net of tax |
50,664 |
||
|
Adjusted diluted profit before amortisation of intangible assets |
163,998 |
||
|
Number of shares for calculation of basic earnings per share |
3,560,878 |
||
|
Dilutive effect of potential shares |
- |
||
|
Number of shares for calculation of diluted earnings per share |
3,560,878 |
||
|
Basic earnings per share |
3.2 |
||
|
Diluted earnings per share (restated) |
3.2 |
||
|
Adjusted basic earnings per share |
4.6 |
||
|
Adjusted diluted earnings per share (restated) |
4.6 |
||
|
Year to 31 December 2007 |
Earnings attributable to equity holders of the parent company |
Weighted average number of shares |
Earnings per share |
|
£ |
No. |
pence |
|
|
Profit after tax for calculation of basic earnings per share |
552,468 |
||
|
Notional taxed interest income accruing on dilution |
- |
||
|
Profit after tax for calculation of diluted earnings per share |
552,468 |
||
|
Add-back amortisation of intangible assets, net of tax |
82,492 |
||
|
Less profit on disposal of available-for-sale investments, net of tax |
(99,552) |
||
|
Adjusted diluted profit before amortisation of intangible assets |
535,408 |
||
|
Number of shares for calculation of basic earnings per share |
3,560,878 |
||
|
Dilutive effect of potential shares |
- |
||
|
Number of shares for calculation of diluted earnings per share |
3,560,878 |
||
|
Basic earnings per share |
15.5 |
||
|
Diluted earnings per share (restated) |
15.5 |
||
|
Adjusted basic earnings per share |
15.0 |
||
|
Adjusted diluted earnings per share (restated) |
15.0 |
||
5. Changes in net debt in the 6 months ended 30 June 2008 were as follows:
|
I January 2008 |
Cash flow |
Non-cash items |
30 June 2008 |
|
|
£ |
£ |
£ |
£ |
|
|
Cash at bank and in hand |
910,366 |
664,963 |
- |
1,575,329 |
|
Available-for-sale investments |
20,000 |
- |
- |
20,000 |
|
Debt (bank, subordinated loan notes and hire purchase) |
(2,862,759) |
263,350 |
(62,823) |
(2,662,232) |
|
Net debt |
(1,932,393) |
928,313 |
(62,823) |
(1,066,903) |
Non-cash items represent foreign exchange differences on bank loans and interest accruals.
6. Dividends
The company paid an interim dividend of 1.1p per share (£39,170) on 2 November 2007 and a final dividend of 2.2p per share (£78,339) on 4 July 2008, both relating to the financial year ended 31 December 2007.
7. Distribution of document
Copies of these condensed consolidated interim financial statements will be sent to shareholders and the AIM team and will be available on the company's website at www.judges.uk.com.
Related Shares:
Judges Scientific