13th Sep 2016 07:00
ENSOR HOLDINGS PLC - Interim Results for Four Months to 31 July 2016ENSOR HOLDINGS PLC - Interim Results for Four Months to 31 July 2016
PR Newswire
London, September 12
13 September 2016
Ensor Holdings PLC
("Ensor", the "Group" or the "Company")
Interim results for the four months to 31 July 2016
Chairman’s Statement
I thought that this would be an appropriate moment to give you an Ensor update, particularly as there have been a number of significant events since our year-end last March.
As previously advised, we are currently in the process of selling our subsidiary companies, land holdings and other assets of the Group. The aim is to realise value which is to be returned to shareholders and this process is now at an advanced stage.
In July this year we successfully completed the sale of two businesses, Technocover Limited and OSA Door Parts Limited. Both businesses were sold at a significant premium to their balance sheet asset values, realising a gain to the Group of £5.9 million. I would like to say thank you to all those people I have worked with at Technocover and OSA, for the very successful years together.
There now remain two Ensor subsidiary companies, Ellard and Wood’s Packaging, both of which are being actively marketed.
The first four months of trading in this current year, for Ellard and Wood’s, is ahead of the result at the same time last year. We are cautiously optimistic for the full year, but remain constantly aware of the impact of exchange rates on our costs. We are working hard to maintain margins in a competitive market and have been able to offset some of the effects of a weakened pound by forward buying of currency.
Our 31 July 2016 balance sheet includes the book values of Ellard, Wood’s, our land holding at Brackley and over £10m of cash.
As we are unsure when sales of Ellard, Wood’s and the Brackley land will be completed, we feel that this would be a suitable time to make an interim capital distribution to shareholders, with a further capital distribution proposed when they are completed. However, due to uncertainty over the tax treatment of such a distribution, we do not propose to do so at this time.
I know this has been an intriguing time for shareholders and therefore may I thank you for your continued interest.
K A Harrison TDChairman13 September 2016
Consolidated Income Statementfor the four months ended 31 July 2016
| Unaudited 4 months 31/7/16 | Unaudited 12 months 31/3/16 | ||
| Note | £’000 | £’000 | |
| Continuing operations | |||
| Revenue | 4,281 | 12,069 | |
| Cost of sales | (3,181) | (8,720) | |
| ______ | ______ | ||
| Gross profit | 1,100 | 3,349 | |
| Administrative expenses | (726) | (2,149) | |
| ______ | ______ | ||
| Operating profit before exceptional administrative income | 374 | 1,200 | |
| Exceptional administrative income: | |||
| Gain on disposal of assets classified as held-for-sale | - | 785 | |
| Gain on disposal of fixed assets | - | 207 | |
| Gain on disposal of subsidiary companies | 2 | 5,923 | 168 |
| ______ | ______ | ||
| Operating profit | 6,297 | 2,360 | |
| Finance costs | (23) | (42) | |
| ______ | ______ | ||
| Profit before tax | 6,274 | 2,318 | |
| Income tax expense | 3 | (70) | (283) |
| ______ | ______ | ||
| Profit for the period on continuing operations | 6,204 | 2,035 | |
| Discontinued operations | 4 | 133 | 1,193 |
| ______ | ______ | ||
| Profit for the period attributable to equity shareholders of the parent company | 6,337 | 3,228 | |
| ______ | ______ | ||
| Earnings per share | |||
| On ordinary activities excluding exceptional gains and discontinued operations | 0.9p | 2.9p | |
| On exceptional gains including taxation | 19.8p | 3.9p | |
| ______ | ______ | ||
| Continuing operations including taxation | 20.7p | 6.8p | |
| Discontinued operation including taxation | 0.5p | 4.0p | |
| ______ | ______ | ||
| Earnings per share | 3 | 21.2p | 10.8p |
| ______ | ______ | ||
Consolidated Statement of Comprehensive Income
| Profit for the period attributable to equity shareholders | 6,337 | 3,228 | ||
| Actuarial loss | (66) | (3,462) | ||
| Income tax relating to components of other comprehensive income | 13 | 579 | ||
| ______ | ______ | |||
| Total comprehensive income attributable to equity shareholders of the parent company | 6,284 | 345 | ||
| ______ | ___ __ | |||
The results for the year ended 31 March 2016 have been restated as described in note 4.
Consolidated Statement of Financial Positionat 31 July 2016
| Unaudited 31/7/16 | Audited 31/3/16 | ||
| £’000 | £’000 | ||
| ASSETS | |||
| Non-current assets | |||
| Property, plant & equipment | 402 | 520 | |
| Intangible assets | 1,074 | 1,074 | |
| Deferred tax asset | 485 | 590 | |
| ______ | ______ | ||
| Total non-current assets | 1,961 | 2,184 | |
| ______ | ______ | ||
| Current assets | |||
| Assets held for sale | 530 | 530 | |
| Assets of disposal group held for sale | - | 7,252 | |
| Inventories | 2,390 | 2,382 | |
| Trade and other receivables | 3,669 | 4,359 | |
| Cash and cash equivalents | 10,764 | 1,536 | |
| ______ | ______ | ||
| Total current assets | 17,353 | 16,059 | |
| ______ | ______ | ||
| Total assets | 19,314 | 18,243 | |
| ______ | ______ | ||
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings | - | (1,065) | |
| ______ | ______ | ||
| Total non-current liabilities | - | (1,065) | |
| ______ | ______ | ||
| Current liabilities | |||
| Borrowings | - | (795) | |
| Liabilities of disposal group held for sale | - | (2,803) | |
| Current income tax liabilities | (73) | (73) | |
| Trade and other payables | (1,775) | (2,325) | |
| ______ | ______ | ||
| Total current liabilities | (1,848) | (5,996) | |
| ______ | ______ | ||
| Total liabilities | (1,848) | (7,061) | |
| ______ | ______ | ||
| NET ASSETS | 17,466 | 11,182 | |
| ______ | ______ | ||
| EQUITY | |||
| Share capital | 3,082 | 3,082 | |
| Share premium | 552 | 552 | |
| Retained earnings | 13,832 | 7,548 | |
| ______ | ______ | ||
| Total equity attributable to equity shareholders of the parent company | 17,466 | 11,182 | |
| ______ | ______ | ||
Consolidated Statement of Changes in Equityfor the four months ended 31 July 2016
Attributable to equity shareholders of the parent company
| Issued Capital | Share Premium | Revaluation Reserve | Retained Earnings | Total Equity | |
| £’000 | £’000 | £’000 | £’000 | £’000 | |
| Balance at 1 April 2016 | 3,082 | 552 | - | 7,548 | 11,182 |
| Total comprehensive income | 6,284 | 6,284 | |||
| ______ | ______ | ______ | ______ | ______ | |
| Balance at 31 July 2016 | 3,082 | 552 | - | 13,832 | 17,466 |
| ______ | ______ | ______ | ______ | ______ | |
| Balance at 1 April 2015 | 3,082 | 552 | 140 | 7,676 | 11,450 |
| Total comprehensive income | - | - | - | 345 | 345 |
| Dividends paid | - | - | - | (613) | (613) |
| Transfer of surplus to retained earnings on disposal of properties | (140) | 140 | - | ||
| ______ | ______ | ______ | ______ | ______ | |
| Balance at 31 March 2016 | 3,082 | 552 | - | 7,548 | 11,182 |
| ______ | ______ | ______ | ______ | ______ | |
Consolidated Cash Flow Statementfor the four months ended 31 July 2016
| Unaudited 4 months 31/7/16 | Audited 12 months 31/3/16 | |
| Cash flows from operating activities | ||
| Profit for the period attributable to equity shareholders | 6,337 | 3,228 |
| Cash benefit of profits transferred with disposals | (179) | - |
| Depreciation charge | 45 | 662 |
| Finance costs | 23 | 42 |
| Income tax expense | 105 | 584 |
| Profit on disposal of subsidiary companies | (5,923) | (168) |
| (Profit)/loss on disposal of property, plant & equipment | (3) | (191) |
| Gain on disposal of assets classified as held for sale | - | (785) |
| Amortisation of intangible asset | 8 | 33 |
| _______ | _______ | |
| Operating cash flow before changes in working capital | 413 | 3,405 |
| (Increase)/decrease in inventories | (447) | 424 |
| (Increase)/decrease in receivables | 217 | 1,179 |
| Increase/(decrease) in payables | (48) | (1,907) |
| _______ | _______ | |
| Cash generated from operations | 135 | 3,101 |
| Interest paid | (23) | (42) |
| Income taxes paid | - | (561) |
| _______ | _______ | |
| 112 | 2,498 | |
| Pension fund deficit payment | - | (5,601) |
| _______ | _______ | |
| Net cash generated from/(used in) operations | 112 | (3,103) |
| _______ | _______ | |
| Cash flows from investing activities | ||
| Proceeds from disposal of property, plant & equipment | 25 | 926 |
| Proceeds from sale of assets held for sale | - | 2,968 |
| Proceeds from sales of subsidiaries, net of deferred consideration and associated costs | 11,403 | 1,275 |
| Acquisition of property, plant & equipment | (84) | (674) |
| _______ | _______ | |
| Net cash generated from investing activities | 11,344 | 4,495 |
| _______ | _______ | |
| Cash flows from financing activities | ||
| Equity dividends paid | - | (613) |
| Funding received under new finance leases | - | 241 |
| Amounts repaid in respect of finance leases | (219) | (44) |
| New bank loans | - | 2,000 |
| Bank loan repayments | (1,962) | (472) |
| _______ | _______ | |
| Net cash generated from/(used in) financing activities | (2,181) | 1,112 |
| _______ | _______ | |
| Net increase in cash and cash equivalents | 9,275 | 2,504 |
| Cash and cash equivalents at beginning of period | 1,489 | (1,015) |
| _______ | _______ | |
| Cash and cash equivalents at end of period | 10,764 | 1,489 |
| ________ | ________ |
Notes to the Interim Report
1. Basis of preparation
The statutory accounts for the year ended 31 March 2016, prepared under IFRS, have been delivered to the Registrar of Companies and received an unqualified audit report.
The unaudited results for the four months ended 31 July 2016 have been prepared in accordance the same accounting policies as are disclosed in those statutory accounts, other than the departure from International Financial Reporting Standards (“IFRSs”) detailed below, which has been made in order to enhance the information available to shareholders in this instance. The unaudited results do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006.
The interim report has not been prepared in accordance with IAS34, “International Financial Reporting” in that it does not contain full disclosure of accounting policies and does not detail compliance with other standards:
1.1 Definition of discontinued operations
Certain of the disposals of subsidiaries made in this period and the prior year do not fulfil the strict requirements of IFRS 5 for classification as discontinued operations, because of their size in relation to the rest of the group. However, we have elected to present these businesses as discontinued, in both periods, in order that the continuing operations of the group are comparable and show the results for only those businesses that remain within the group’s control at the period end.
2. Gain on disposal of subsidiary companies
The gains in the current period relate to the proceeds from the sales of the company’s subsidiaries, Technocover Limited and OSA Door Parts Limited, less the carrying values of the investments and costs of realisation. The gain in the year ended 31 March 2016 relates to the disposal of the company’s subsidiary, Ensor Building Products Limited.
3. Income tax expense
The income tax expense is calculated using the estimated tax rate for the year ended 31 March 2017. Tax has not been provided against the exceptional gains on disposals of subsidiaries because such gains are exempted under the Substantial Shareholdings Exemption granted by the Taxation of Chargeable Gains Act 1992.
4. Discontinued operations
The results for the year ended 31 March 2016 have been restated to treat the results of the subsidiaries disposed of since 1 April 2015 as discontinued, regardless of their treatment in the statutory accounts for the year ended 31 March 2016. The subsidiaries concerned are Ensor Building Products Limited, Technocover Limited and OSA Door Parts Limited.
For this reason, the Consolidated Income Statement is described as unaudited as the comparative figures do not agree to the audited financial statements for the year ended 31 March 2016. However the profit for the period attributable to equity shareholders of the parent company agrees in total to the audited financial statements.
5. Earnings per share
The calculation of earnings per share for the period is based on the profit for the period divided by the weighted average number of ordinary shares in issue, being 29,895,976 (year ended 31 March 2016: 29,895,976). There were no financial instruments in existence in either of these periods that would serve to dilute the shareholdings.
Enquiries
Ensor Holdings PLC: Roger Harrison / Marcus Chadwick - 0161 945 5953
Stockdale Securities Ltd: Robert Finlay / Rose Ramsden - 020 7601 6100
Related Shares:
ESR.L