7th Feb 2008 07:00
Alumasc Group PLC07 February 2008 Thursday 7 February 2008 THE ALUMASC GROUP PLC - INTERIM ANNOUNCEMENT "Board confident in Alumasc's ability to perform well" Alumasc (ALU.L), which supplies premium building and engineering products,announces an increase in adjusted1 pre-tax profit of almost 50% from continuingoperations in the half year to 31 December 2007.Financial Highlights • Revenue from continuing operations, which include Levolux acquired last May, increased by 26% to £59.9m. Excluding the acquisition, revenue rose by 7%, driven by strong growth in the Building Products division. • On continuing operations, including Levolux, the UK's leading supplier of solar shading systems for buildings, adjusted1 pre-tax profit increased by almost 50% to £4.5m and adjusted1 earnings per share were also nearly 50% ahead at 8.6p. • With Brock Metal, the producer of zinc and aluminium alloys sold in June 2007, included in the prior period comparator, adjusted1 pre-tax profit increased by 24% and operating margins improved by 3.3 percentage points. • Group pre-tax profit of £5.2m was ahead by 45% and group earnings per share were 47% ahead at 10.3p. • The interim dividend per share is increased by 4.8% to 3.25p, covered 2.6 times. • In the period, interest cover (on borrowings) exceeded nine times and gearing reduced to 35% from 40%. Commercial Highlights • Building Products divisional revenue grew by 51% to £40.2m (up 16%, excluding Levolux) and adjusted1 operating profit increased by 75% to £4.8m (26% ahead, excluding Levolux). • The group's sustainable building products activities continued to advance, with increasing demand for greater energy and water management in construction. • Engineering Products divisional revenue from continuing operations of £19.7m and adjusted1 operating profit of £1.2m were 5% and 13% lower than the prior year, respectively. This performance was largely as anticipated, as the move from traditional automotive work to the new product and market areas continued at Alumasc Precision. John McCall, Chairman, stated "Alumasc's trading results tend to be seasonallybiased towards the second half. With order books ahead of those a year ago, weexpect a similar pattern this year. Alumasc's recent performance has benefited from actions taken to improve thebusiness and seek out opportunities for growth. These actions will continue toyield benefits in the second half year and beyond. The Board is fully aware ofthe uncertainties which dominate the broader economic outlook. However, thegroup's balance sheet and businesses remain strong and the Board is confident inAlumasc's ability to perform well in these circumstances." 1 Adjusted profits and earnings exclude property disposal gains of £1.0m, brand amortisation of £0.1m and one-off reorganisation costs at Alumasc Dispense of £0.2m (2006: £nil in each case). Presentation: Today, a presentation will be made to institutional broker's analystsand private client brokers by Paul Hooper (Chief Executive) and AndrewMagson (Group Finance Director), with John McCall (Chairman) inattendance. The meeting will commence at 9.30am and end at approximately10.30am. It will be held at Bankside's offices, 1 Frederick's Place,London EC2R 8AE (which is off Old Jewry, which itself runs betweenCheapside and Gresham Street, approximately 200 yards from the Bank ofEngland). Enquiries: The Alumasc Group plc 01536 383844 Paul Hooper (Chief Executive) info@alumasc.co.uk Andrew Magson (Group Finance Director) Bankside Consultants Limited Charles Ponsonby 020 7367 8851 charles.ponsonby@bankside.com INTERIM ANNOUNCEMENT Chairman's Statement Overview Alumasc traded strongly in the half year to 31 December 2007, building furtheron the strategic re-alignment and improved performance achieved in the previousyear, and benefiting from the growing demand for sustainable building products. Revenue from continuing operations, which include Levolux acquired last May,increased by 26% to £59.9 million. Excluding the acquisition, revenue rose by7%, driven by strong growth in the Building Products division. Adjusted1 pre-taxprofit from continuing operations, including Levolux, the UK's leading supplierof solar shading systems for buildings, increased by almost 50% to £4.5 millionas a result of the higher revenue and improved operating margins of 8.8% (2006:7.4%). When Brock Metal, the producer of zinc and aluminium alloys sold in June 2007,is included in the prior period comparator, total group revenue reduced by 20%,while adjusted1 profit before tax increased by 24% and operating marginsimproved by 3.3 percentage points. This illustrates the impact of thetransformation in Alumasc's portfolio of businesses last year and theconsequential improvement in quality of earnings arising from the group'sincreased focus on premium building and precision engineering productbusinesses. Total profit before tax of £5.2 million (including property disposal gains,brand amortisation and one-off reorganisation costs at Alumasc Dispense) wasahead by 45%, with Brock Metal included in the prior period comparator. Adjusted1 earnings per share from continuing activities of 8.6p were almost 50%ahead of the prior period and basic earnings per share were 47% ahead at 10.3p. The Board has declared a 4.8% increase in the interim dividend to 3.25p pershare (2006: 3.1p), covered 2.6 times by continuing earnings (2006: 2.25 times). Building ProductsDivisional revenue grew by 51% to £40.2 million (up 16% excluding Levolux) andadjusted1 operating profit increased by 75% to £4.8 million (26% ahead,excluding Levolux). In particular, the division's sustainable building productsactivities continued to advance, with increasing demand for greater energy andwater management in construction. Products that assist customers to manage energy consumption in buildingsexperienced buoyant first-half demand, spearheaded by Levolux's solar shadingand control systems. Levolux is now integrated successfully into Alumasc'sportfolio of businesses, and its order book has grown to record levels.Elsewhere, demand for green roofs continues to grow and the MR Facades business,which provides external insulation for solid walls, benefited from improvedspend in the social housing refurbishment sector and increased penetration intonew build applications. Building products associated with water management activities also performedstrongly, with continued growth from both Gatic Slotdrain and Gatic accesscovers, particularly through direct sales into export markets, and improvedsales of other drainage products driven by new contracts to supply hospitals andschools. Sales of rainwater goods remained buoyant, assisted by a wideneddistribution network. Alumasc Interior Building Products continued its transition to in-housemanufacture of Pendock Profiles, providing a much improved cost base in anincreasingly competitive market place. The two businesses acquired by Alumasc in 2004 continued to perform well. Timloconce again grew revenues and profits against the background of a more difficulthousing market, whilst further improving operating efficiencies throughinvestment in automation. Roof-Pro had an excellent first-half buoyed by asubstantial contract at a retail development. The Building Products division contributed 67% and 82% respectively to thegroup's total revenue and operating profits (2006: 36% and 59% respectively). Engineering ProductsRevenue from continuing operations of £19.7 million and adjusted1 operatingprofit of £1.2 million in the Engineering Products division were 5% and 13%lower than the prior year. This performance was largely as anticipated, as themove from traditional automotive work to new product and market areas continuedat Alumasc Precision. Activity levels at Alumasc Precision at the start of this financial year werelower than at the beginning of the prior year, which had benefited from the lastdeliveries of components to the Land Rover and Mini Cooper S projects. In thesecond quarter of this financial year, significant levels of new non-automotivediesel engine work for Caterpillar and Deutz, and a complex windshield surroundand other components for Aston Martin, began to come on stream. Progress hadmeanwhile been made to reduce factory overhead costs at Alumasc Precision,through both the outsourcing of lower value-added casting work to the Far Eastand achievement of further operational efficiencies at our plants in the UK. First-half profitability at Alumasc Dispense benefited from a better productmix, although revenue was broadly unchanged. The decision was made in Novemberto consolidate Alumasc Dispense's operations onto a single rented site nearKettering, enabling the sale of its facility at Borehamwood. Associatedre-organisation costs were £150,000, and the simplified ongoing operation willbe more cost efficient. Financial positionThere have been no significant changes in the overall shape of Alumasc's balancesheet compared with the last year end. Property, plant and equipment reduced by£1.8 million to £21.1 million, mainly as a result of the disposal of the formerCopal Warehouse at book value of £0.7 million in September, and the sale inDecember of the Alumasc Dispense property at Borehamwood for net considerationof £1.6 million, a gain of almost £1 million on book value. The cash proceedsfrom this transaction were received in January. The assumptions relating to the IAS19 valuation of the group's defined benefitpension schemes remain unchanged from those at the year end. The draft actuarialvaluation of the Benjamin Priest pension scheme at 30 April 2007 is currentlybeing discussed with the Trustees, including an update of mortality assumptions. Shareholders' funds at 31 December 2007 increased by £1.6 million to £33.8million from the year end position, reflecting post-tax profits of £3.7 millionin the period, the payment of the prior year final dividend of £2.4 million, andother minor changes in equity of £0.3 million. Net borrowings reduced by £1.1 million to £11.8 million during the period, inline with the strong trading performance. Interest cover (on borrowings)exceeded nine times, and gearing at 31 December 2007 reduced to 35% (30 June2007: 40%). Capital expenditure of £1.3 million was some £0.5 million lower thanthe six-month depreciation charge. Annualised post-tax return on average capital invested improved to 13.4% (2006:12.4%) due to the improved operating margins and lower capital intensity of theGroup's portfolio of businesses following the acquisition of Levolux anddisposal of Brock towards the end of last year. Prospects Alumasc's trading results tend to be seasonally biased towards the second half.With order books ahead of those a year ago, we expect a similar pattern thisyear. The main factors anticipated to impact second-half performance are continuinggrowth in demand for sustainable building products; general levels of UKeconomic and construction activity; the extent to which increasing input costinflation on ferrous and oil based materials can be mitigated through internalcost savings or selling price increases; and the speed of introduction of newwork won at Alumasc Precision. Alumasc's recent performance has benefited from actions taken to improve thebusiness and seek out opportunities for growth. These actions will continue toyield benefits in the second half year and beyond. The Board is fully aware ofthe uncertainties which dominate the broader economic outlook. However, thegroup's balance sheet and businesses remain strong and the Board is confident inAlumasc's ability to perform well in these circumstances. John McCallChairman7 February 2008 Note 1: Adjusted profits and earnings in 2007/08 are stated prior to propertydisposal gains of £1.0m, brand amortisation of £0.1m and one-off re-organisationcosts at Alumasc Dispense of £0.2m (2006/07: £nil in each case) UNAUDITED CONSOLIDATED INCOME STATEMENT for the half year to 31 December 2007 Half year Half Year Year ended 31 December 31 December 30 June 2007 2006 2007 Notes £'000 £'000 £'000Continuing operations Revenue 3 59,881 47,432 103,601Cost of sales (42,035) (33,226) (71,800) -------- -------- --------Gross profit 17,846 14,206 31,801Net operating expenses (12,787) (10,682) (23,425)Profit on disposal of property 5 990 - 637 -------- -------- --------Operating profit 3 6,049 3,524 9,013 Finance revenue 82 14 72Finance costs (655) (335) (883)Other finance expense - pensions (249) (200) (400) -------- -------- --------Profit before taxation 5,227 3,003 7,802Tax expense 6 (1,511) (899) (2,248) -------- -------- --------Profit for the period from continuingoperations 3,716 2,104 5,554 Discontinued operations Profit after tax for the period fromdiscontinued operations 4 - 374 1,370 -------- -------- --------Profit for the period 3,716 2,478 6,924 -------- -------- -------- Profit for the period attributable to:Equity holders of the parent 3,706 2,455 6,889Minority interest 10 23 35 -------- -------- -------- 3,716 2,478 6,924 -------- -------- -------- Pence Pence PenceBasic earnings per share- continuing operations 10.3 5.9 15.6- discontinued operations - 1.1 3.9 -------- -------- -------- 8 10.3 7.0 19.5 -------- -------- -------- Diluted earnings per share- continuing operations 10.3 5.8 15.6- discontinued operations - 1.1 3.8 -------- -------- -------- 8 10.3 6.9 19.4 -------- -------- -------- UNAUDITED CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE for the half year to 31 December 2007 Half year Half year Year 31 December 31 December 30 June 2007 2006 2007 £'000 £'000 £'000 Income and expense recognised directly in equity Actuarial gain/(loss) on defined benefitpensions 61 (1,900) 4,676 Movement in cash flow hedging position (249) 7 99 Exchange differences on retranslation offoreign operations 8 - (6) Tax on items taken directly to ortransferred (17) 569 (1,754)from equity --------- --------- -------Net (expense)/ income recognised directly inequity (197) (1,324) 3,015for the periodProfit for the period 3,716 2,478 6,924 --------- --------- -------Total recognised income for the period 3,519 1,154 9,939 --------- --------- ------- Attributable to:Equity holders of the parent 3,509 1,131 9,904Minority interest 10 23 35 --------- --------- ------- 3,519 1,154 9,939 --------- --------- ------- UNAUDITED CONSOLIDATED BALANCE SHEET at 31 December 2007 31 December 31 December 30 June 2007 2006 2007 Notes £'000 £'000 £'000AssetsNon-current assetsProperty, plant and equipment 21,111 24,525 22,877Goodwill 14,966 5,556 14,966Other intangible assets 3,907 435 4,171Financial assets 17 34 17Deferred tax assets 4,560 7,570 4,917 ------- --------- -------- 44,561 38,120 46,948Current assetsInventories 15,391 13,823 13,714Trade and other receivables 27,404 29,612 28,916Cash and short term deposits 3,126 - 4,814Derivative financial assets - 295 106 ------- --------- -------- 45,921 43,730 47,550Non-current assets classifiedas held for sale 734 2,377 678 ------- --------- --------Total assets 91,216 84,227 95,176 ------- --------- --------LiabilitiesNon-current liabilitiesInterest bearing loans andborrowings (14,863) - (14,873)Employee benefits payable (16,284) (25,232) (17,561)Provisions (1,253) (344) (1,125)Deferred tax liabilities (1,499) (1,320) (1,352) ------- --------- -------- (33,899) (26,896) (34,911)Current liabilitiesBank overdraft - (5,650) (2,837)Interest bearing loans andborrowings (17) (289) (12)Trade and other payables (20,847) (26,136) (22,523)Provisions (220) (812) (214)Tax payable (2,285) (879) (2,468)Derivative financialliabilities (149) (288) - ------- --------- -------- (23,518) (34,054) (28,054) ------- --------- --------Total liabilities (57,417) (60,950) (62,965) ------- --------- -------- ------- --------- --------Net assets 33,799 23,277 32,211 ------- --------- --------EquityCalled up share capital 4,517 4,412 4,479Share premium 383 27,406 -Other reserve 1,251 1,401 1,251Capital redemption reserve - 693 -Capital reserve - own shares (133) (133) (133)Hedging reserve (149) 8 100Foreign currency reserve 2 - (6)Retained earnings 27,880 (10,567) 26,482 ------- --------- --------Equity attributable to equityholders of the parent 33,751 23,220 32,173Minority interest 48 57 38 ------- --------- --------Total equity 10 33,799 23,277 32,211 ------- --------- -------- UNAUDITED CONSOLIDATED CASH FLOW STATEMENT for the half year ended 31 December 2007 Half year Half year Year 31 December 31 December 30 June 2007 2006 2007 Notes £'000 £'000 £'000Operating activitiesOperating profit fromcontinuing operations 6,049 3,524 9,013Adjustments for:Depreciation 1,676 1,438 3,433Amortisation 179 81 207Impairments - - 469Gain on disposal of property,plant and equipment (981) (17) (1,039)Gain on sale of investments - (32) (32)(Increase) / decrease ininventories (1,677) 517 (228)Decrease / (increase) inreceivables 2,523 3,684 (893)Decrease in trade and otherpayables (2,854) (5,249) (1,671)Movement in provisions 134 (236) (779)Movement in retirement benefitobligations (1,465) (1,175) (2,470) --------- --------- -------Cash generated from continuingoperations 3,584 2,535 6,010Cash flow from discontinuedoperations 1,167 (956) (6,626)Tax paid (1,207) (413) (1,339) --------- --------- -------Net cash inflow / (outflow)from operating activities 3,544 1,166 (1,955) --------- --------- ------- Investing activitiesPurchase of property, plant andequipment (1,209) (1,501) (2,716)Payments to acquire intangiblefixed assets (80) (34) (353)Proceeds from sale of property,plant and equipment 674 29 2,424Acquisition of subsidiaryundertakings net of cashacquired - - (12,432)Proceeds from sale of businessactivities 747 - 8,150Proceeds from sale ofinvestments - 305 305 --------- --------- -------Net cash inflow / (outflow)from investing activities 132 (1,201) (4,622) --------- --------- -------Financing activitiesNet interest paid (573) (321) (811)Equity dividends paid (2,378) (2,218) (3,309)New borrowings (net ofarrangement fees) - - 14,860Loan charges and amortisation (1) - -Repayment of amounts borrowed 9 (4) (433) (725)Proceeds from issue of sharecapital 421 - 1,195 --------- --------- -------Net cash (outflow) / inflowfrom financing activities (2,535) (2,972) 11,210 --------- --------- ------- Net increase / (decrease) incash and cash equivalents 9 1,141 (3,007) 4,633 Cash and cash equivalents atbeginning of period 1,977 (2,650) (2,650)Effect of foreign exchange ratechanges 8 7 (6) --------- --------- -------Cash and cash equivalents atend of period 3,126 (5,650) 1,977 --------- --------- ------- NOTES ON THE UNAUDITED ACCOUNTS for the half year to 31 December 2007 1. Basis of preparation The interim consolidated accounts of The Alumasc Group plc and its subsidiarieshave been prepared on the basis of International Financial Reporting Standards(IFRS), as adopted by the European Union, that are effective at 31 December2007. The interim consolidated accounts have been prepared using the accountingpolicies set out in the statutory accounts for the financial year to 30 June2007 and in accordance with IAS 34 "Interim Financial Reporting". Comparative period information for the six months to 31 December 2006 has beenrestated to reflect the reclassification of Brock Metal as a discontinuedoperation following the sale of the business in June 2007. The interim consolidated accounts include comparative figures for the financialyear ended 30 June 2007 which are an extract from the Group's statutory accountsfor that financial year. Those accounts have been reported on by the Company'sauditors and delivered to the Registrar of Companies. The report of the auditorswas unqualified and did not contain statements under section 237(2) or (3) ofthe Companies Act 1985. The interim accounts for the half year ended 31 December 2007 are not statutoryaccounts and have been neither audited nor reviewed by the Group's auditors. 2. Risks & UncertaintiesThe principal risks and uncertainties affecting the business activities of theGroup remain those detailed on page 16 of the 2007 Report and Accounts, a copyof which is available on the Company's website at www.alumasc.co.uk. TheChairman's Statement in this interim report includes comments on the prospectsfor the Group for the remaining six months of the financial year. 3. Analysis of revenue and trading profit Half year 31 December 2007 Building Engineering products products Total £'000 £'000 £'000 Revenue 40,168 19,713 59,881 Adjusted operating profit 4,833 1,157 5,990Brand amortisation (85) - (85)Alumasc Dispensereorganisation costs - (150) (150) -------- -------- --------Segment operating result 4,748 1,007 5,755Unallocated costs (696)Profit on disposal of property 990 -------- -------- --------Operating profit 6,049 -------- -------- -------- 3. Analysis of revenue and trading profit (continued) Half year 31 December 2006 Building Engineering Continuing Discontinued products products operations operations Total £'000 £'000 £'000 £'000 £'000 Revenue 26,651 20,781 47,432 27,626 75,058Segment operating result 2,764 1,331 4,095 599 4,694Unallocated costs (571) - (571) -------- -------- -------- --------- -------Operating profit 3,524 599 4,123 -------- -------- -------- --------- ------- Year 30 June 2007 Building Engineering Continuing Discontinued products products operations operations Total £'000 £'000 £'000 £'000 £'000 Revenue 59,647 43,954 103,601 59,803 163,404 Adjusted operating profit 6,960 2,600 9,560 2,090 11,650Acquisition accounting adjustment (320) - (320) - (320)Brand amortisation (50) - (50) - (50) -------- -------- -------- --------- -------Segment operatingresult 6,590 2,600 9,190 2,090 11,280Unallocated costs (814) - (814)Profit on disposal ofproperty 637 - 637 -------- -------- -------- --------- -------Operating profit 9,013 2,090 11,103 -------- -------- -------- --------- ------- Reportable segments now exclude central and other unallocated costs, and prioryear comparatives have been restated accordingly. Following the recentsignificant changes in the composition of the group, management is currentlyreviewing the most appropriate way in which to analyse performance by businesssegments in future reporting periods. 4. Discontinued operations Discontinued operations in the prior year comprise the sale of the Brock Metalbusiness, the leading UK supplier of zinc and aluminium diecasting alloys, on 30June 2007. The results of discontinued operation included in the consolidated incomestatement of the prior periods are as follows: Half year Half year Year 31 December 31 December 30 June 2007 2006 2007 £'000 £'000 £'000 Revenue - 27,626 59,803Cost of sales - (25,932) (55,574) ----------- --------- --------Gross profit - 1,694 4,229Net operating expenses - (1,095) (1,993) ----------- --------- --------Operating profit - 599 2,236Loss on disposal - - (146) ----------- --------- --------Profit before tax - 599 2,090Tax expense - (225) (720) ----------- --------- --------Profit after taxation - 374 1,370 ----------- --------- -------- The net cash flows attributable to discontinued operations are asfollows: Half year Half year Year 31 December 31 December 30 June 2007 2006 2007 £'000 £'000 £'000 Operating cash flows 1,167 (956) (6,626)Investing cash flows 747 - 8,150 ----------- --------- --------Net cash inflow / (outflow) 1,914 (956) 1,524 ----------- --------- -------- 5. Profit on disposal of propertyProfit on disposal of property comprises: Half year Half year Year 31 December 31 December 30 June 2007 2006 2007 £'000 £'000 £'000 Profit on sale of Borehamwoodfreehold property 990 - -Profit on sale of Walsallfreehold property - - 991Impairment of Copal longleasehold property - - (354) -------- --------- ------- 990 - 637 -------- --------- ------- 6. Tax expense Half year Half year Year 31 December 31 December 30 June 2007 2006 2007 £'000 £'000 £'000 Current tax - UK Corporationtax - continuing operations 1,024 533 1,678 - discontinued - 225 720 operations ---------- ---------- -------- 1,024 758 2,398Amounts overprovided inprevious years - - (128) ---------- ---------- --------Total current tax 1,024 758 2,270 Deferred tax - continuing 487 366 698 operations - discontinued - - - operations ---------- ---------- --------Total deferred tax 487 366 698 ---------- ---------- --------Tax charge in the incomestatement 1,511 1,124 2,968 ---------- ---------- -------- The tax charge in the income statement is disclosed as follows: Income tax expense oncontinuing operations 1,511 899 2,248Income tax expense ondiscontinued operations - 225 720 ---------- ---------- -------- 1,511 1,124 2,968 ---------- ---------- -------- If the Finance Act is substantially enacted prior to 30 June 2008, andIndustrial Buildings Allowances (IBAs) are to be phased out, the deferred taxliability currently recorded in respect of IBAs might need to be reversed in thefull-year accounts. The impact would be a credit to the income statement ofaround £0.1m, decreasing the overall tax rate for the year by about 1%.7. DividendsThe directors have approved an interim dividend per share of 3.25p (2006: 3.1p)which will be paid on 7 April 2008 to shareholders on the register at the closeof business on 12 March 2008. In accordance with IFRS accounting requirements,as the dividend was approved after the balance sheet date, it has not beenaccrued in the interim consolidated financial statements. A final dividend perequity share of 6.6p in respect of the 2006/07 financial year was paid duringthe period. 8. Earnings per share Basic earnings per share is calculated by dividing the net profit for theperiod attributable to ordinary equity shareholders of the parent by theweighted average number of ordinary shares in issue during the period. Diluted earnings per share is calculated by dividing the net profitattributable to ordinary equity shareholders of the parent by the weightedaverage number of ordinary shares in issue during the period, after allowingfor the exercise of outstanding share options. The adjusted earnings per share figure is based on profit adjusted for gainsor losses on disposal of property, brand amortisation, reorganisation costsand, in the year to 30 June 2007, an acquisition accounting adjustment. Thefigure is also based on the same weighted average number of shares used inthe basic earnings per share calculation above. Half year Half year Year 31 December 31 December 30 June 2007 2006 2007 £'000 £'000 £'000Net Profit attributableto equity holders of theparent - continuing operations 3,706 2,081 5,519Net profit attributableto equity holders of theparent - discontinued operations - 374 1,370 -------- -------- -------Net profit attributableto equity holders of the parent 3,706 2,455 6,889 -------- -------- ------- 000s 000s 000s Basic weighted average number of shares 35,993 35,293 35,371Dilutive potential ordinaryshares - employee share options 92 66 118 -------- -------- -------Diluted weighted average number of shares 36,085 35,359 35,489 -------- -------- ------- Reconciliation to adjusted earnings per share: Half year Half year Year 31 December 31 December 30 June 2007 2006 2007Continuing operations: £'000 £'000 £'000 Profit before taxation 5,227 3,003 7,802Less: profit on disposal of property (990) - (637)Add: Levolux acquisition & brand amortisation 85 - 370Add: Alumasc Dispense reorganisation costs 150 - - -------- -------- ------- Adjusted profit before taxation 4,472 3,003 7,535Tax at underlying group rate of 31% (2006: 32%) (1,386) (961) (2,411) -------- -------- -------Adjusted earnings 3,086 2,042 5,124 -------- -------- -------Adjusted earnings per share 8.6p 5.8p 14.5p -------- -------- ------- 9. Movement in net borrowings Finance leases Cash and bank and secured Net overdrafts Bank loans loans borrowings £'000 £'000 £'000 £'000 At 1 July 2007 1,977 (14,860) (25) (12,908)Cash flow movements 1,141 - 4 1,145Effect of foreignexchange rate changes 8 - - 8Loan charges and amortisation - 1 - 1 -------- -------- --------- --------At 31 December 2007 3,126 (14,859) (21) (11,754) -------- -------- --------- -------- At 1 July 2006 (2,650) - (722) (3,372)Cash flow movements (3,007) - 433 (2,574)Effect of foreignexchange rate changes 7 - - 7 -------- -------- --------- --------At 31 December 2006 (5,650) - (289) (5,939) -------- -------- --------- -------- At 1 July 2006 (2,650) - (722) (3,372)New borrowings (net ofarrangement fees) - (14,860) (28) (14,888)Cash flow movements 4,633 - 725 5,358Effect of foreignexchange rate changes (6) - - (6) -------- -------- --------- --------At 30 June 2007 1,977 (14,860) (25) (12,908) -------- -------- --------- -------- 10. Reconciliation of changes in total equity For the half year to 31 December 2007 Half year Half year Year 31 December 31 December 30 June 2007 2006 2007 £'000 £'000 £'000 At beginning of period 32,211 24,319 24,319Shares issued 421 - 1,195Net (losses)/gains on cash flowhedges (249) 7 99Exchange differences onretranslation of foreignoperations 8 - (6)Actuarial gain/(loss) on definedbenefitpensions net of tax 44 (1,331) 2,922Dividends (2,378) (2,218) (3,340)Profit for the period 3,716 2,478 6,924Share based payments 26 22 98 --------- --------- --------At end of period 33,799 23,277 32,211 --------- --------- -------- 11. Post balance sheet events In connection with last year's capital re-organisation, the company agreed withthe Pension Trustees to contribute £1.5 million into the group's defined benefitpension schemes. On 1 February 2008, the company contributed the freeholdproperty being leased to Brock Metal, valued at £1.1 million, and £0.4 millionin cash into the two pension schemes in equal shares. Responsibility Statement We confirm that to the best of our knowledge: a) The condensed set of financial statements has been prepared in accordancewith IAS 34; b) The interim management report includes a fair review of the informationrequired by the Financial Statements Disclosure and Transparency Rules (DTR4.2.7R) - indication of important events during the first six months and theirimpact on the financial statements and description of principal risks anduncertainties for the remaining six months of the year; and c) The interim management report includes a fair review of the informationrequired by DTR 4.2.8R - disclosure of related party transactions and changestherein. On behalf of the Board G P Hooper A MagsonChief Executive Group Finance Director This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Alumasc Group