12th Dec 2007 07:00
ENSOR HOLDINGS PLC INTERIM RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2007
SALES: UP 12% to ‚£15,683,000
PROFIT BEFORE TAX: UP 21% to ‚£943,000
DIVIDEND: UP 8% to 0.42p Chairman's Statement
I am pleased to report that, despite some adverse commercial conditions during the period, Ensor Holdings PLC ("Ensor" or the "Group") had a further successful and progressive half-year.
Financial Review
Our sales for the six months to 30 September 2007 improved by 12% from ‚£14.0m last year to ‚£15.7m this year. Operating profits before reorganisation costs showed a strong improvement of 28%, increasing to ‚£1,148,000 (2006 : ‚£894,000). Our finance charges have been reduced to ‚£90,000 (2006 : ‚£117,000) principally as a result of the performance last year of investments in the pension fund. Reorganisation costs of ‚£115,000 (2006 : ‚£nil) have been provided in respect of a business relocation, leaving profit before tax up 21% at ‚£943,000 (2006 : ‚£ 777,000). Tax provisions for the period of ‚£280,000 (2006 : ‚£229,000) have been made.
Earnings per share have increased by 21% to 2.3p (2006 : 1.9p).
Cash generated from operations was ‚£1,088,000 (2006 : ‚£486,000), arising from both increased profitability and effective control of working capital. Having made net capital expenditure payments of ‚£1,025,000 during the current half year, borrowings have increased by ‚£143,000 since the year end, leaving our gearing contained at a satisfactory 16% (2006 : 23%).
These are the Group's first results to be presented under International Financial Reporting Standards and comparative figures have been restated to reflect these changes. Full details of the changes are shown in the IFRS Restatement Report which has also been announced today.
Trading
The substantial improvements reported are due to a further emphasis on the management of sales and margin. During difficult market conditions and a period of weakness for the US dollar, we have again been able to achieve significant savings on purchasing through our China office. We have also tightened our management cost controls and the collection of cash.
During the period we acquired an additional trading site for our gate and fencing company and have been able to move part of the Brackley business to a site in Sandbach, Cheshire, where production and trading have started well.
Our other building products businesses encompassing specialist tools, construction materials and industrial doors have enjoyed a successful period, as have our companies supplying packaging materials, processed rubber products and specialist electric motors.
Prospects
Although we are seeing some pressures on our order books and margins, the second half of the year has started well.
We are keeping a watchful eye on our property assets where there may be future opportunities, although any possible benefits are likely to be longer term.
Dividend
With the continued improvement in our trading and the strength of our balance sheet, we are pleased to propose an increase of the interim dividend to 0.42p per share, an increase of almost 8% over the previous year. This will be payable on 25 January 2008 to shareholders registered on 28 December 2007.
May I thank all our shareholders for their continued support and also all thestaff at Ensor for their hard work, which has resulted in the Group's continuedstrong performance. K A Harrison TDChairman12 December 2007 Enquiries:Ensor Holdings plc 0161 945 5953 Ken Harrison Hanson Westhouse Limited 0113 246 2610 Tim Feather / Matthew Johnson Group Income Statementfor the six months ended 30 September 2007 Unaudited 6 Unaudited 6 Audited 12 months 30/9/ months 30/9/06 months 31/3/07 Note 07 ‚£'000 (restated) ‚£'000 (restated) ‚£'000 Revenue 15,683 14,010 28,277 Cost of sales (10,712) (9,598) (19,377) ----------- ----------- ----------- Gross profit 4,971 4,412 8,900 Distribution costs (769) (740) (1,503) Administrative overheads (3,054) (2,778) (5,754) ----------- ----------- ----------- Operating profit 1,148 894 1,643 Reorganisation costs 2 (115) - - Financial expenses (90) (117) (237) ----------- ----------- ----------- Profit before tax 943 777 1,406 Income tax expense 3 (280) (229) (420) ----------- ----------- ----------- Profit for the period attributable to equity shareholders 663 548 986 ====== ====== ====== Earnings per share 4 Basic 2.3p 1.9p 3.3p Fully diluted 2.2p 1.8p 3.3p ====== ====== ====== Dividends per share Dividends paid per share 0.700p 0.625p 1.015p Dividends proposed per share 0.420p 0.390p 0.700p ====== ====== ====== Group Balance Sheetat 30 September 2007 Unaudited Unaudited 30/9/06 Audited 31/3/07 30/9/07 (restated) (restated) ‚£'000 ‚£'000 ‚£'000 ASSETS Non-current assets Property, plant & equipment 6,207 5,556 5,496 Intangible assets 2,971 2,833 2,833 ----------- ----------- ----------- Total non-current assets 9,178 8,389 8,329 ----------- ----------- ----------- Current assets Inventories 4,238 4,575 4,392 Trade and other receivables 6,819 6,411 6,047 ----------- ----------- ----------- Total current assets 11,057 10,986 10,439 ----------- ----------- ----------- Total assets 20,235 19,375 18,768 ====== ====== ====== EQUITY AND LIABILITIES Equity Share capital 2,945 2,945 2,945 Share premium 470 470 470 Revaluation reserve 868 874 871 Retained earnings 6,999 5,692 6,539 ----------- ----------- ----------- Total equity attributable to equity shareholders 11,282 9,981 10,825 ----------- ----------- ----------- Non-current liabilities Retirement benefit 920 1,602 1,033obligations Deferred tax 61 104 97 ----------- ----------- ----------- Total non-current liabilities 981 1,706 1,130 ----------- ----------- ----------- Current liabilities Bank overdraft 1,801 2,179 1,604 Interest bearing loans - 159 54 Trade and other payables 6,171 5,350 5,155 ----------- ----------- ----------- Total current liabilities 7,972 7,688 6,813 ----------- ----------- ---------- Total equity and liabilities 20,235 19,375 18,768 ====== ====== ====== Group Cash Flow Statementfor the six months ended 30 September 2007 Unaudited Unaudited Audited 6 months 6 months 30/9/ 12 months 31/3/ 30/9/07 06 (restated) 07 (restated) ‚£'000 ‚£'000 ‚£'000 Cash flows from operating activities Profit for the period 663 548 986 Depreciation charge 246 240 492 Loss/(profit) on disposal of property, plant & equipment 55 (1) (3) Contribution to defined benefit pension scheme (113) (38) (148) Finance expense 90 117 237 Income tax expense 280 229 420 ----------- ----------- ----------- Operating cash flow before changes in working capital 1,221 1,095 1,984 Decrease/(increase) in inventories 154 206 (23) Increase in receivables (772) (643) (279) Increase/(decrease) in payables 575 (55) 267 ----------- ----------- ----------- 1,178 603 1,949 Interest paid (90) (117) (196) Income taxes paid - - (282) ----------- ----------- ----------- Net cash generated from operating activities 1,088 486 1,471 ----------- ----------- ----------- Cash flows from investing activities Proceeds from sale of property, plant & equipment 55 - 82 Acquisition of property, plant & equipment (942) (129) (401) Acquisition of intangible assets (138) - - ----------- ----------- ----------- Net cash absorbed by investing activities (1,025) (129) (319) ----------- ----------- ----------- Cash flows from financing activities Issue of ordinary share capital - 4 4 Repayment of loans (50) (100) (200) Capital element of finance lease payments (4) (7) (12) Equity dividends paid (206) (184) (299) ----------- ----------- ----------- Net cash absorbed by financing activities (260) (287) (507) ----------- ----------- ----------- Net (decrease)/increase in cash and equivalents (197) 70 645 ====== ====== ====== Analysis of net debt Bank overdraft 1,801 2,179 1,604 Debt repayable by instalments Due within one year - 159 54 ----------- ----------- ----------- 1,801 2,338 1,658 ----------- ----------- ----------- Other Statementsfor the six months ended 30 September 2007 Unaudited Unaudited Audited 6 months 30 6 months 30/9/ 12 months 31/3/ /9/07 06 (restated) 07 (restated) ‚£'000 ‚£'000 ‚£'000 CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES Profit for the period 663 548 986 Actuarial gain and related - deferred tax - 521 ----------- ----------- ----------- 663 548 1,507 ====== ====== ====== CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Opening equity 10,825 9,613 9,613 Recognised gains for the period 663 548 1,507 Dividends paid (206) (184) (299) Issue of shares - 4 4 ----------- ----------- ----------- 11,282 9,981 10,825 ====== ====== ======
Notes to the Interim Financial Statements
1 Basis of preparation
As a London Stock Exchange AIM listed company, Ensor Holdings PLC is required to prepare its consolidated accounts in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), for all accounting periods commencing after 1 January 2007. These interim results are, therefore, prepared in accordance with these standards. Consolidated accounts in respect of periods prior to this period were prepared in accordance with UK Generally Accepted Accounting Principles (UK GAAP). A requirement of IFRS is that comparative figures reported in the consolidated accounts are also prepared under IFRS. Therefore, the results for the year ended 31 March 2007 and the interim results for the period ended 30 September 2006 have been restated in accordance with the IFRS accounting policies. The restated results, reconciliations between these and the previously reported results, and the revised accounting policies are published in a separate document which is available on the Group's website.
The unaudited results for the six months have been prepared on a basis consistent with these revised accounting policies and do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985.
The statutory accounts for the year ended 31 March 2007, prepared under UK GAAP, have been delivered to the Registrar of Companies and received an unqualified audit report.
2 Reorganisation costs
The reorganisation costs are provisions for redundancy payments and losses on sale of plant and equipment arising from the closure and relocation of a timber treatment plant operated by a subsidiary company.
3 Income tax expense
The income tax expense is calculated using the estimated tax rate for the year ended 31 March 2008.
4 Earnings per share
The calculation of earnings per share for the period is based on the profit after taxation divided by the weighted average number of ordinary shares in issue, being 29,445,659 (6 months to 30 September 2006 - 29,426,205 and year ended 31 March 2007 - 29,434,906). The fully diluted earnings per share is based upon the weighted average of 30,226,689 (6 months to 30 September 2006 - 30,060,899 and year ended 31 March 2007 - 30,069,823). The dilution is due to subsisting share options.
5 Segmental analysis
The Group is organised into two primary reportable segments within the definitions of IAS 14 "Segment Reporting", as follows:
Building Products - manufacture, marketing and distribution of materials, tools, components and access automation equipment to the construction industry.
Packaging - marketing and distribution of packaging materials.
Other - non-reportable segments as defined by IAS 14 which include rubber crumb manufacture, distribution of electric motors and waste recycling. Head office costs are apportioned to the segments on the basis of earnings.
Segmental Analysis of Income Statement
Building Products Packaging Other Total ‚£'000 ‚£'000 ‚£'000 ‚£'000 Six months ended 30 September 2007 Revenue 13,530 943 1,210 15,683 ---------- ---------- ------------ ----------- Operating profit 869 152 127 1,148 ---------- ---------- ------------ ------------ Reorganisation costs 115 - - 115 ====== ====== ====== ====== Six months ended 30 September 2006 Revenue 11,952 770 1,288 14,010 ---------- ---------- ------------ ----------- Operating profit 640 135 119 894 ---------- ---------- ------------ ------------ Reorganisation costs - - - - ====== ====== ====== ======
No secondary analysis is provided as the Group's business operations are conducted almost exclusively in the United Kingdom.
ENSOR HOLDINGS PLCRelated Shares:
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