28th Aug 2008 07:00
28 August 2008
STYLES & WOOD GROUP PLC
("STYLES & WOOD" OR "THE GROUP")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2008
Styles & Wood Group plc, a leading provider of property services to premier UK retailers, announces its interim results for the six months ended 30 June 2008.
Financial results in brief
|
Revenue £123.1m (2007:£149.8m) |
|
|
Operating profit £3.2m (2007: £6.1m) |
|
|
Profit before tax £2.4m (2007: £5.2m) |
|
|
Earnings per share 2.6p (2007: 5.6p) |
|
|
94% of 2008 forecast revenue secured at 30 June 2008 |
|
|
Interim dividend of 0.25p per share (2007:1.25p) |
Principal events
|
Deferral of projects by customers due to uncertainty in the marketplace |
|
|
Customers exerting margin pressure on the supply chain as a result of declining demand |
|
|
Action taken to align cost base with anticipated revenue |
|
|
New Leadership team appointed |
Operational highlights
|
New framework arrangements with Lloyds TSB, Royal Bank of Scotland and Home Retail Group |
|
|
New customers include Mango, McDonald's and Habitat |
|
|
Food Retail revenues increase by £19.4m to £50.7m |
|
|
Support Services divisions contributed 40% of Group operating profit |
|
|
StorePlanning delivered further revenue and profit growth |
Ivan McKeever, CEO of Styles & Wood Group plc said:
"The current market conditions continue to challenge our business as retailers affected by lower consumer spend defer store investment decisions and exert pressure on their supply chain. Our focus on the food sector is providing some protection from the current economic climate and we are concentrating on maintaining and developing our customer relationships. We have taken decisive action to control cost in order to create a business capable of flexing with market conditions. In the longer term Styles&Wood is well positioned to take advantage of the retailers' need to return to store investment plans."
Enquiries:
|
Styles & Wood Group plc |
Tel: 0161 926 6000 |
|
Ivan McKeever, Chief Executive Officer |
|
|
Graham Clark, Group Finance Director |
|
|
Investec |
Tel: 0207 597 5000 |
|
Erik Anderson/David Currie/Paul Gray |
|
|
FD |
Tel: 0207 831 3113 |
|
Billy Clegg / Georgina Bonham |
Business Review
The six months ended 30 June 2008 have brought unprecedented challenges to our business, both in our market place and in the senior management structure of the Group. Since the appointment of Ivan McKeever as Chief Executive Officer on 2 June 2008, we have focussed on our customers, colleagues, supply chain and investors. We have made some tough decisions and there will be more challenges ahead.
Our retail customers are reacting to the continued uncertainty in the general economy and the slowdown in consumer spending. The business has seen its customers deferring scheduled property spend and demanding greater value from the supply chain whilst maintaining quality expectations. Whilst this has been difficult for the business we are encouraged by the level of support our customers have been able to give us and we maintain strong relationships which will leave us well placed when the retailers return to their store investment plans.
Group results
The Group's revenue for the six months ended 30 June 2008 was £123.1m (2007: £149.8m), with operating profit of £3.2m (2007: £6.1m) and profit before tax of £2.4m (2007: £5.2m).
Group operating profit includes £114,000 of expenses relating to the indicative offer for the Group which was withdrawn on 23 May 2008.
This is a disappointing result in comparison with an excellent first half in 2007, but reflects market conditions.
Net interest payable of £0.8m reduced by 9% (2007: £0.9m) as a result of term loan repayments and a reduction in the margin paid on the Group's banking facility in February 2008.
The effective rate of tax for the period is 29.5% (2007:31.2%) reflecting the reduction in the statutory rate of corporation tax in April 2008.
Earnings per share for the six months ended 30 June 2008 was 2.6p (2007: 5.6p).
Divisional performance
StoreFit
|
6 months ended 30 June 2008 |
6 months ended 30 June 2007 |
12 months ended 31 December 2007 |
|
|
Revenue (£m) |
107.7 |
133.4 |
283.9 |
|
Operating profit (£m) |
2.1 |
3.9 |
9.8 |
|
Margin |
1.9% |
2.9% |
3.4% |
StoreFit, our core business, delivered over 390 projects in the six months ended 30 June 2008 despite experiencing some significant project deferrals. The division generated revenue of £107.7m (2007: £133.4m) and, reflecting ongoing margin pressures, delivered an operating profit of £2.1m (2007: £3.9m).
Food Retail
In Food Retail, highlights included the delivery of the Morrison's re-brand project as sole supplier, completion of 10 projects for Tesco including new stores at Bromley and Aberdeen, and the completion of a new Flagship store for Waitrose in Newcastle together with the conversion of newly acquired stores to their brand. The Co-operative Group became a major new customer for the business during this period and we have already begun the refurbishment of an initial allocation of 80 stores under a three year programme. This excludes any potential allocation from their Somerfield acquisition.
Retail Banking
In Retail Banking, we saw another strong performance from our framework agreement with Barclays, the highlight being the completion and launch of the new Glasgow flagship store. We were also pleased to secure positions within new three year framework arrangements with both Lloyds TSB and Royal Bank of Scotland.
Department Stores
In Department Stores, we completed the new Debenhams Blackpool store and secured two further new stores for fit-out. We delivered the new Primark store in Ealing which opened to wide acclaim in June 2008 and three major refurbishments for BHS at Truro, The Trafford Centre and the Metro Centre. For Marks & Spencer we secured major new retail park stores in Swindon and Cumbernauld both of which we expect to commence in the next six months.
Multiple Retail
In Multiple Retail, we worked with Boots on a number of formats including new stores at Didsbury (Manchester) and Bedford as well as the refurbishment of their existing estate and the recently acquired Alliance stores. For Home Retail Group we saw three successful Argos project completions and secured our position as one of only four contractors in a new four year framework agreement for both the Homebase and Argos capital investment programme.
New clients
During the period, we also focussed our attention on winning new business and secured a number of schemes with new clients which we believe will provide exciting opportunities for the business. Most noticeable were the new conference and banqueting facility for the Rugby Football Union at Twickenham, a number of new stores for Mango, restaurant refurbishments for McDonald's and two new stores for Habitat.
StoreFit continues to underpin the business whilst our Support Services divisions contributed 40% of Group operating profit (2007: 38%).
StorePlanning
|
6 months ended 30 June 2008 |
6 months ended 30 June 2007 |
12 months ended 31 December 2007 |
|
|
Revenue (£m) |
3.7 |
3.4 |
7.6 |
|
Operating profit (£m) |
0.6 |
0.5 |
1.2 |
|
Margin |
17.6% |
15.7% |
15.8% |
The results of StorePlanning include those of StoreData, with which it has been aligned throughout 2008. This division built on its strong 2007 result delivering revenue of £3.7m (2007: £3.4m) and an operating profit of £0.6m (2007: £0.5m).
We continued our work with Tesco where we helped them design and plan their stores, whilst StoreData continued to bring efficiencies to their business through its MyProperty system, adding solutions for the management of new site acquisitions and planning applications. We completed refresh designs for 280 Morrisons stores in May 2008 and have been appointed to work on further refresh and cafe schemes in 375 stores.
The strength of our relationship with Barclays was reinforced by an excellent performance on every Refresh and Remodel scheme delivered in the first half and as a result we were allocated the design work for its London Piccadilly Flagship Store.
During the period, StorePlanning worked with new customers in Lloyds TSB, securing the design work for 40 branch refurbishments which will be delivered together with StoreFit, Grosvenor Estates and the Rugby Football Union.
StoreCare
|
6 months ended 30 June 2008 |
6 months ended 30 June 2007 |
12 months ended 31 December 2007 |
|
|
Revenue (£m) |
11.7 |
13.0 |
24.0 |
|
Operating profit (£m) |
0.8 |
1.8 |
3.0 |
|
Margin |
6.4% |
13.9% |
12.6% |
StoreCare delivered revenue of £11.7m in the first half of 2008 (2007: £13.0m) and like StoreFit has been impacted by project deferrals and margin pressures.
Asda remained a key feature of StoreCare activity in the period as we secured an extension to our Framework contract for the delivery of planned capital expenditure to 150 Asda stores and delivered a number of store upgrade projects.
Tesco also contributed significantly to StoreCare's first half performance with work on Access and Egress projects, enhancing the customer journey into and out of the store and car park. At the end of the period StoreCare was awarded 90 Tesco Lobbies Everywhere projects, an energy saving initiative to reduce heat loss from stores.
For Barclays, StoreCare worked on projects to reclaim unused space above branches and convert these into commercial and residential space that can be let, therefore generating additional revenues for the bank.
Cash flow
The Group invested £3.2m into the operating activities of the business during the six months ended 30 June 2008 (30 June 2007: inflow £5.9m) and had significant outflows in respect of taxation and financing including loan repayments and the 2007 final dividend payment. This investment reflects usual seasonal movements together with the impact of customers lengthening commercial terms and the subsequent management of the supply chain. We do not anticipate any further significant investment in working capital in the second half of 2008.
As a result net debt was £22.4m at 30 June 2008 (30 June 2007: £19.5m, 31 December 2007: £14.9m).
Dividend
Earnings per share for the period is 2.6p (2007:5.6p) and the Board is declaring an interim dividend of 0.25p per share (2007:1.25p) which will be paid on 3 October to shareholders on the register at the close of business on 5 September 2008.
Directors' Interests
During the period certain Directors increased their shareholdings in the Company as follows:
|
|
1 January 2008 |
Acquisitions during the period |
30 June 2008 |
|
|
Number
|
Number
|
|
|
Ordinary shares of 1p |
|
||
|
Ivan McKeever |
808,500 |
1,190,000 |
2,018,500 |
|
Graham Clark |
1,763,042 |
785,000 |
2,548,042 |
|
Gerard Quiligotti |
1,322,282 |
- |
1,322,282 |
|
Neil Davies |
2,644,563 |
- |
2,644,563 |
|
Robert Hough |
30,000 |
85,000 |
115,000 |
|
Jim Martin |
23,333 |
170,000 |
193,333 |
|
Paul Mitchell |
67,375 |
165,168 |
232,543 |
Risks and uncertainties
The business continues to review and manage the risks it faces. In the six months ended 30 June 2008 the focus has been on managing the risks within the marketplace as our customers reduce allocated work and this will continue into 2009. During this period of uncertainty the Group must ensure it continues to closely manage its delivery and procurement and motivate and challenge its colleagues who are critical to the business.
To meet the challenges ahead, Styles & Wood must have the right team in place. Following the decision of Gerard Quiligotti and Neil Davies to step down from their executive board positions and the appointment of Ivan McKeever (44) Chief Executive Officer, we have strengthened the management board of Styles & Wood Limited by appointing Steve Wilton (44) as Chief Operating Officer, Andy Shaw (39) as Director of StoreFit and Steve Ramsden (40) as Director of Support Services. The appointments reflect existing succession planning and the need to accelerate change in our business. These individuals bring experience with a combined service of 41 years with the Group together with the energy and ability needed to drive the business forward.
We have made solid progress in aligning our cost base with anticipated revenue and will continue this focus in the coming months. We have seen the departure of more than 80 valued colleagues since December 2007 and whilst inevitable in the current market this has been a difficult time for the business. However, the resulting savings together with other initiatives should provide stability in the current climate.
As our customers place greater demands on Styles & Wood, we must look in turn to the supply chain which has a significant role to play in supporting our business. We continue to work closely with our strategic partners to find improvements that increase the value and quality that we deliver.
Strategy
With a new management team in place we are preparing a new three year strategy for the Group to create a broader based and more resilient business in the future
Outlook
We have set our expectations for 2008 at a level that we believe is realistic and deliverable. The market uncertainty will undoubtedly continue into 2009 and growth in the overall economy is forecast to be slow at best. We have taken strong action to prepare our business to meet the demands this will bring.
We will continue to focus on reducing the cost base across all areas of the business. There will be expenses relating to these initiatives, including the cost of redundancies. However, we believe that any costs incurred in 2008 will be offset by the resulting savings and that by the year end we will have sufficiently reduced our cost base in anticipation of a challenging 2009.
We are confident that we can continue to expand our market share, particularly in the Food sector which we expect to continue to grow. We also believe that we can increase the contribution made from our Support Services business as retailers look to further outsource their property services.
Responsibility statement
The Directors confirm that, to the best of our knowledge:
this condensed consolidated interim financial information has been prepared in accordance with IAS34 as adopted by the European Union; and
the business review contained herein includes a fair review of the information required by DTR 4.2.7 (indication of important events that have occurred during the first six months and a description of the uncertainties for the remaining six months of the financial year) and DTR 4.2.8 (disclosure of material related party transactions and changes therein).
The Directors of Styles & Wood Group plc are listed in the Annual Report for the year ended 31 December 2007. The following changes took place on 2 June 2008:
Gerard Quiligotti - resigned as Executive Chairman and appointed as Non Executive Chairman
Neil Davies - resigned as Chief Executive and appointed as Non Executive Director
Ivan McKeever - appointed as Chief Executive
By order of the Board
Ivan McKeever Graham Clark
Chief Executive Group Finance Director
Consolidated Income Statement
For the six months ended 30 June 2008
|
Unaudited |
Unaudited |
Audited |
||||
|
6 months ended 30 June 2008 |
6 months ended 30 June 2007 |
Year ended 31 December 2007
|
||||
|
Notes |
£'000 |
£'000 |
£'000 |
|||
|
Continuing operations |
||||||
|
Revenue |
2 |
123,144 |
149,828 |
315,489 |
||
|
Cost of sales |
(113,386) |
(136,437) |
(286,725) |
|||
|
Gross profit |
9,758 |
13,391 |
28,764 |
|||
|
Administrative expenses |
(6,534) |
(7,295) |
(15,236) |
|||
|
Operating profit |
2,3 |
3,224 |
6,096 |
13,528 |
||
|
Interest payable and similar charges |
(867) |
(917) |
(1,859) |
|||
|
Interest receivable |
67 |
41 |
157 |
|||
|
Profit before tax |
2,424 |
5,220 |
11,826 |
|||
|
Taxation |
4 |
(715) |
(1,630) |
(3,687) |
||
|
Profit for the period attributable to equity shareholders |
1,709 |
3,590 |
8,139 |
|||
|
Basic and diluted earnings per share, expressed in pence per share |
5 |
2.6p |
5.6p |
12.6p |
||
|
Dividend proposed in respect of the period, expressed in pence per share |
6 |
|||||
|
- interim dividend |
0.25p |
1.25p |
1.25p |
|||
|
- final dividend |
- |
- |
2.50p |
Consolidated Statement of Recognised Income and Expense
For the six months ended 30 June 2008
|
Unaudited |
Audited |
Audited |
|||
|
6 months ended 30 June 2008 |
6 months ended 30 June 2007 |
Year ended 31 December 2007 |
|||
|
£'000 |
£'000 |
£'000 |
|||
|
Profit for the period |
1,709 |
3,590 |
8,139 |
||
|
Gains not recognised in income statement |
- |
- |
- |
||
|
Total recognised income and expense for the period attributable to equity shareholders |
1,709 |
3,590 |
8,139 |
Consolidated Balance Sheet
As at 30 June 2008
|
Unaudited |
Unaudited |
Audited |
||||
|
30 June 2008 |
30 June 2007 |
31 December 2007 |
||||
|
Notes |
£'000 |
£'000 |
£'000 |
|||
|
Non current assets |
||||||
|
Intangible assets - software |
341 |
241 |
387 |
|||
|
Property, plant and equipment |
812 |
949 |
902 |
|||
|
Deferred tax asset |
95 |
108 |
122 |
|||
|
1,248 |
1,298 |
1,411 |
||||
|
Current assets |
||||||
|
Trade and other receivables |
50,287 |
48,910 |
36,907 |
|||
|
Cash and cash equivalents |
5,790 |
12,618 |
15,853 |
|||
|
56,077 |
61,528 |
52,760 |
||||
|
Current liabilities |
||||||
|
Trade and other payables |
(56,650) |
(61,274) |
(49,935) |
|||
|
Financial liabilities: borrowings |
7 |
(4,361) |
(4,869) |
(4,887) |
||
|
Current tax liabilities |
(1,119) |
(1,941) |
(2,236) |
|||
|
(62,130) |
(68,084) |
(57,058) |
||||
|
Net current liabilities |
(6,053) |
(6,556) |
(4,298) |
|||
|
Total assets less current liabilities |
(4,805) |
(5,258) |
(2,887) |
|||
|
Non current liabilities |
||||||
|
Financial liabilities: borrowings |
7 |
(23,876) |
(27,263) |
(25,824) |
||
|
Net liabilities |
(28,681) |
(32,521) |
(28,711) |
|||
|
Shareholders' equity |
||||||
|
Ordinary share capital |
645 |
645 |
645 |
|||
|
Share premium |
17,339 |
17,339 |
17,339 |
|||
|
Reverse acquisition reserve |
(66,665) |
(66,665) |
(66,665) |
|||
|
Retained earnings |
8 |
20,000 |
16,160 |
19,970 |
||
|
Total shareholders' deficit |
(28,681) |
(32,521) |
(28,711) |
|||
Consolidated Cash Flow Statement
For the six months ended 30 June 2008
|
Unaudited |
Unaudited |
Audited |
||||
|
6 months ended 30 June 2008 |
6 months ended 30 June 2007 |
Year ended 31 December 2007 |
||||
|
Notes |
£'000 |
£'000 |
£'000 |
|||
|
Cash (used in)/generated from operations |
9 |
(3,231) |
5,873 |
14,323 |
||
|
Income taxes paid |
(1,803) |
(1,633) |
(3,409) |
|||
|
Net cash (used in)/generated from operating activities |
(5,034) |
4,240 |
10,914 |
|||
|
Cash flows used in investing activities |
||||||
|
Purchase of property, plant and equipment |
(89) |
(225) |
(358) |
|||
|
Purchase of intangible assets - software |
(54) |
(71) |
(302) |
|||
|
Net cash used in from investing activities |
(143) |
(296) |
(660) |
|||
|
Cash flows used in financing activities |
||||||
|
Interest received |
33 |
11 |
145 |
|||
|
Interest paid |
(763) |
(827) |
(1,730) |
|||
|
Repayment of borrowings |
(1,500) |
(1,500) |
(3,000) |
|||
|
Dividends paid to equity shareholders |
(1,612) |
- |
(806) |
|||
|
Net cash used in financing activities |
(3,842) |
(2,316) |
(5,391) |
|||
|
Net (decrease)/increase in cash and cash equivalents |
(9,019) |
1,628 |
4,863 |
|||
|
Cash and cash equivalents at beginning of period |
13,835 |
8,972 |
8,972 |
|||
|
Cash and cash equivalents at end of period |
4,816 |
10,600 |
13,835 |
|||
For the purposes of the cash flow statement, cash and cash equivalents excludes restricted cash of £974,000 (30 June 2007: £2,018,000, 31 December 2007: £2,018,000).
Notes to the interim financial information
1. Basis of preparation
Styles & Wood Group plc ("the Company") is a public limited company incorporated and domiciled in the United Kingdom and listed on the London Stock Exchange. Styles & Wood Group plc and its subsidiaries (together "the Group") provide retail property services within the UK. The address of Styles & Wood Group plc's registered office is Aspect House, Manchester Road, Altrincham, Cheshire WA14 5PG.
This condensed consolidated interim financial information for the six months ended 30 June 2008 has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS34 "Interim financial reporting" as adopted by the European Union. The interim results should be read in conjunction with the annual report and financial statements for the year ended 31 December 2007 which are available from the group's website www.stylesandwood.co.uk. The accounting policies, methods of computation and presentation followed are consistent with those applied in the annual report and financial statements which are prepared in accordance with IFRS as adopted by the European Union. The previously reported Business Segment of StoreData is now reported within the StorePlanning results and as a consequence comparative numbers have been restated consistently.
These interim results do not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The interim results to 30 June 2008 and comparative results to 30 June 2007 are neither audited nor reviewed by the auditors. The financial information for the full preceding year is based on the statutory accounts for the year ended 31 December 2007 which have been delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph, and did not contain any statement under section 237 of the Companies Act 1985.
These interim results were approved for issue on 28 August 2008.
The following new standards, amendments to standards or interpretations have been published but are not yet mandatory for the Group and have not been early adopted:
IASBs Improvements to IFRSs (effective 1 January 2009). These amendments affect over 20 standards. The expected impact is still being assessed by management.
Amendment to IAS32 - Financial Instruments: Presentation and IAS1 - Presentation of Financial Statements (effective 1 January 2009). This standard will impact presentation only.
Amendment to IFRS2 - Share based payments (effective 1 January 2009). This standard deals with vesting conditions and cancellations. Management do not expect the standard to have any impact on the share options currently in place.
IFRS3 (Revised) - Business combinations (effective 1 July 2009). This standard would apply to any business combinations in future years.
IAS27 (Revised) - Consolidated and separate financial statements (effective 1 July 2009). This amendment deals with minority interests and changes in control and would only impact any future changes in the Group.
IAS1 (Revised) - Presentation of financial statements (effective 1 January 2009). This standard will impact presentation only.
IFRS8 - Operating segments (effective 1 January 2009). This standard will impact presentation only.
The following new standards, amendments to standards or interpretations have been published but are not relevant to the Group:
Amendment to IFRS1 - First time adoption of IFRS and IAS27 - Consolidated and separate financial statements.
IAS 23 (Revised) - Borrowing costs (effective 1 January 2009).
IFRIC16 - Hedges of a net investments in a foreign operation
IFRIC 15 - Agreements for construction of real estates
IFRIC14, IAS19 - The limit on a defined benefit asset, minimum funding requirements and their interaction
2. Revenue and profit from business segments
6 months ended 30 June 2008
|
Unaudited |
StoreFit |
Store Planning |
StoreCare |
Unallocated |
Group |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Revenue |
107,734 |
3,674 |
11,736 |
- |
123,144 |
|
Segment result |
2,073 |
648 |
753 |
(250) |
3,224 |
|
Interest expense |
(867) |
||||
|
Interest income |
67 |
||||
|
Profit before tax |
2,424 |
||||
|
Taxation |
(715) |
||||
|
Net profit attributable to equity shareholders |
1,709 |
6 months ended 30 June 2007
|
Unaudited |
StoreFit |
Store Planning (restated) |
StoreCare |
Unallocated |
Group |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Revenue |
133,419 |
3,424 |
12,985 |
- |
149,828 |
|
Segment result |
3,891 |
536 |
1,802 |
(134) |
6,096 |
|
Interest expense |
(917) |
||||
|
Interest income |
41 |
||||
|
Profit before tax |
5,220 |
||||
|
Taxation |
(1,630) |
||||
|
Net profit attributable to equity shareholders |
3,590 |
Year ended 31 December 2007
|
Audited |
StoreFit |
Store Planning (restated) |
StoreCare |
Unallocated |
Group |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Revenue |
283,949 |
7,563 |
23,977 |
- |
315,489 |
|
Segment result |
9,796 |
1,195 |
3,012 |
(475) |
13,528 |
|
Interest expense |
(1,859) |
||||
|
Interest income |
157 |
||||
|
Profit before tax |
11,826 |
||||
|
Taxation |
(3,687) |
||||
|
Net profit attributable to equity shareholders |
8,139 |
3. Operating profit
The following items have been included in operating profit for the period:
Credit in respect of share option schemes
In determining the IFRS2 "Share-based Payment" charge for the period, management revised estimates in respect of the number of awards expected to vest given the performance conditions. This review led to a credit to the income statement for the six months ended 30 June 2008 of £67,000 (Six months ended 30 June 2007: charge of £2,000, year ended 31 December 2007: charge of £69,000).
No new grants were made under any of the Group's share option schemes during the six months ended 30 June 2008.
Non-recurring costs
During the six months ended 30 June 2008 the Group incurred non-recurring expenses of £114,000 (2007: £nil) in respect of the aborted indicative offer for the group.
4. Taxation
Income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate for the full financial year and reflects the reduction in the statutory rate of corporation tax in April 2008 from 30% to 28%.
|
Unaudited |
Unaudited |
Audited |
|||
|
6 months ended 30 June 2008 |
6 months ended 30 June 2007 |
Year Ended 31 December 2007 |
|||
|
£'000 |
£'000 |
£'000 |
|||
|
Taxation comprises: |
|||||
|
Current tax |
688 |
1,617 |
3,688 |
||
|
Deferred tax |
27 |
13 |
(1) |
||
|
715 |
1,630 |
3,687 |
5. Earnings per share
Details of the earnings and the number of shares used in the calculation are set out below:
|
Unaudited |
Unaudited |
Audited |
|||
|
6 months ended 30 June 2008 |
6 months ended 30 June 2007 |
Year Ended 31 December 2007 |
|||
|
Earnings attributable to equity holders of the Group (£'000) |
1,709 |
3,590 |
8,139 |
||
|
Weighted average number of shares in issue |
64,493,641 |
64,493,641 |
64,493,641 |
||
|
Basic and diluted earnings per share (pence per share) |
2.6 |
5.6 |
12.6 |
||
There is no difference between basic and diluted earnings per share (2007: no difference) as the options in issue within the Group are not considered to be dilutive.
6. Dividend
An interim dividend of 0.25p per share (2007: 1.25p) will be paid on 3 October 2008 to shareholders on the register at the close of business on 5 September 2008.
These interim financial results do not reflect this dividend payable, which will be recognised in shareholders' funds as an appropriation of retained earnings in the year ending 31 December 2008.
A final dividend in respect of the year ended 31 December 2007 of 2.5p per share was paid to shareholders on 9 May 2008.
7. Financial liabilities: borrowings
|
Unaudited |
Unaudited |
Audited |
|||
|
30 June 2008 |
30 June 2007 |
31 December 2007 |
|||
|
£'000 |
£'000 |
£'000 |
|||
|
Current |
4,361 |
4,869 |
4,887 |
||
|
Non current |
23,876 |
27,263 |
25,824 |
||
|
28,237 |
32,132 |
30,711 |
The movement in borrowings can be analysed as follows:
|
Unaudited |
Unaudited |
Audited |
|||
|
6 months ended 30 June 2008 |
6 months ended 30 June 2007 |
Year ended 31 December 2007 |
|||
|
£'000 |
£'000 |
£'000 |
|||
|
Opening amount at 1 January |
30,711 |
33,674 |
33,674 |
||
|
Movement in unamortised issue costs |
70 |
88 |
167 |
||
|
Redemption of loan stocks |
(1,044) |
(130) |
(130) |
||
|
Repayment of bank loans |
(1,500) |
(1,500) |
(3,000) |
||
|
Closing amount at 30 June/31 December |
28,237 |
32,132 |
30,711 |
The loan stocks redeemed in the period were redeemed out of the restricted cash balance.
8. Retained earnings
|
Unaudited |
Unaudited |
Audited |
|||
|
30 June 2008 |
30 June 2007 |
31 December 2007 |
|||
|
£'000 |
£'000 |
£'000 |
|||
|
Opening amount at 1 January |
19,970 |
12,568 |
12,568 |
||
|
Profit for the period |
1,709 |
3,590 |
8,139 |
||
|
Dividends paid |
(1,612) |
- |
(806) |
||
|
Share option (credit)/charge (note 3) |
(67) |
2 |
69 |
||
|
Closing amount at 30 June/31 December |
20,000 |
16,160 |
19,970 |
9. Notes to the cash flow statement
|
Unaudited |
Audited |
Audited |
|||
|
6 months ended 30 June 2008 |
6 months ended 30 June 2007 |
Year Ended 31 December 2007 |
|||
|
£'000 |
£'000 |
£'000 |
|||
|
Profit for the period |
1,709 |
3,590 |
8,139 |
||
|
Adjustments for: |
|||||
|
Interest payable and similar charges |
867 |
917 |
1,859 |
||
|
Taxation |
715 |
1,630 |
3,687 |
||
|
Interest receivable |
(67) |
(41) |
(157) |
||
|
Depreciation and amortisation |
278 |
227 |
492 |
||
|
Share option charge |
(67) |
2 |
69 |
||
|
Operating cash flows before movement in working capital |
3,435 |
6,325 |
14,089 |
||
|
Changes in working capital: |
|||||
|
Increase in trade and other receivables |
(13,381) |
(12,104) |
(101) |
||
|
Increase in trade and other payables |
6,715 |
11,652 |
335 |
||
|
Cash (used in)/generated from operations |
(3,231) |
5,873 |
14,323 |
||
10. Contingencies
The Group takes out performance bonds in the ordinary course of business.
The aggregate amount of such bonds outstanding at 30 June 2008 was £195,000 (30 June 2007: £91,770, 31 December 2007: £195,000). The aggregate amount of bonds outstanding at 30 June 2007 on projects where practical completion has been achieved was £195,000 (30 June 2007: £91,770, 31 December 2007: £195,000).
It is not anticipated that any material liabilities will arise from the contingencies. The Group has no capital commitments.
11. Related party transactions
The directors are considered to be the key management personnel of the Group. Their aggregate remuneration for the period was as follows:
|
Unaudited |
Unaudited |
Audited |
|||
|
6 months ended 30 June 2008 |
6 months ended 30 June 2007 |
Year Ended 31 December 2007 |
|||
|
£'000 |
£'000 |
£'000 |
|||
|
Salaries, fees and short term benefits |
371 |
646 |
1,259 |
||
|
Pension contributions |
63 |
70 |
124 |
||
|
434 |
716 |
1,383 |
In the six months ended 30 June 2008 the Group paid fees of £17,500 to Rickitt Mitchell & Partners Limited, corporate finance advisers to the Group, in respect of Paul Mitchell's services as a non-executive director (six months ended 30 June 2007: £17,500, year ended 31 December 2007: £35,000).
In addition the Group paid fees of £nil to Rickitt Mitchell & Partners Limited in respect of corporate finance advice (six months ended 30 June 2007: £nil, year ended 31 December 2007: £20,000).
Related Shares:
Styles & Wood Group