Interim results for the six months to 30 September 2013

Ensor Holdings PLC ("Ensor", the "Group" or the "Company") Interim results for the six months to 30 September 2013 Chairman's Statement Although the results for the half-year are satisfactory, they are not what wehad anticipated. Nevertheless, we are confident that better figures are in thepipeline and that confidence is reflected in another substantial increase inour interim dividend. We continue to be very satisfied with our acquisition of Technocover, amanufacturer of security products for the utilities sector. However,significant capital expenditure which is to be undertaken by the WaterUtilities, has been slow to start this year, resulting in a modest increase inyear-on-year Group sales to £16.3m (2012: £16.2m). Technocover has a strongorder book and is now receiving instructions to commence this work, but thebenefits are now expected to come through principally in the results for nextyear. As reported at our last year end, we envisaged further work to enable us tomaximise our return from the company. We have now successfully takensignificant cost out of the business and fully provided for the associatedcharges. This puts the Company in a healthy position to achieve its fullpotential. Further cash has been returned to the Group by Technocover and theforecasts for the future are strong. Our other subsidiaries have had a solid half-year, making progress across theboard. Ensor Building Products has again made progress in the specialistroofing and drainage sectors taking greater market share. Woods, our packagingbusiness has capitalised on the increased retail activity supplying specialisedcovers and strapping. OSA and Ellard, who provide components, doors, electricmotors and controls to the door industry, have seen increased activity in theirmarkets. Our roofing tools business, CMS, has had perhaps the toughest of halfyears with intense competition and pressure on margins. Despite this however,the company has made satisfactory progress. The reorganisation costs and slow start at Technocover have offset the progressmade elsewhere, resulting in a reduction in operating profit to £853,000 (2012:£1,215,000). Control of working capital is an area which we regard as vital to our businessoperations. After significant capital expenditure on machinery, equipment andcommercial vehicles, the Group generated a cash surplus of £1,272,000. This isa tribute to the good credit control and cash collections at the subsidiariesand management of stock and work in progress. Gearing has been reduced to 7%(2012: 25%) During the period Ellard, our door motors and controls company, successfullymoved into purpose-built premises, within the Manchester Airport CityEnterprise Zone. We are confident that these new premises will help Ellard togrow further in an expanding market. Following exchange of contracts for the sale of our land in Stockport earlierthis year, planning permission has now been granted for residentialdevelopment. We are still confident that a completion of the sale of the sitewill be at the end of 2014. At Brackley, our planning application has beensubmitted and acknowledged by the South Northamptonshire local authority. Aspreviously reported, technical issues due the proximity of the river Ouse andchanges to government planning guidelines are making this a prolonged process.We are in no hurry to sell and we continue to satisfy any queries as theyarise. Much has been written about the recovery in the UK economy. At the beginning ofthe year, we felt there were a number of false starts and patchy tradingtrends. With caution, there are signs of improvement in the markets in which weoperate, but we must remain careful to recognise any potential setbacks. We feel we are a progressive, if prudent, Group. Accordingly, for the future,we are constantly studying companies in allied and similar sectors to our own.We are watching for acquisition and business opportunities which could enhanceEnsor and lead to improved shareholder value. We are proposing to pay a net interim dividend of 0.5p per share, which is a25% increase on last year's interim dividend (2012: 0.4p). The interim dividendwill be payable in cash only and will be paid on 24 January 2014 toshareholders registered on 27 December 2013. The ex dividend date will beMonday 23 December 2013. The Ensor Group employs over 240 men and women, on ten sites, around the UK andin China. To everyone, whatever your responsibilities, thank you for your vitalcontribution to our results. Ken Harrison TD - Chairman. Enquiries: Ensor Holdings PLC Roger Harrison / Marcus Chadwick 0161 945 5953 Westhouse Securities Limited Richard Baty / Paul Gillam 020 7601 6100 Consolidated Income Statement for the six months ended 30 September 2013 Note Unaudited Unaudited Audited 6 months 6 months 12 months 30/9/13 30/9/12 31/3/13 £'000 £'000 £'000 Revenue 16,315 16,240 32,770 Cost of sales (12,248) (12,063) (24,234) ----------- ----------- ----------- Gross profit 4,067 4,177 8,536 Administrative expenses (3,214) (2,962) (6,109) ----------- ----------- ----------- Operating profit 853 1,215 2,427 Finance costs (151) (146) (295) ----------- ----------- ----------- Profit before tax 702 1,069 2,132 Income tax expense 2 (148) (229) (474) ----------- ----------- ----------- Profit for the period attributable 554 840 1,658to equity shareholders of the parentcompany ====== ====== ====== Earnings per share 3 Basic and fully diluted 1.8p 2.8p 5.5p ====== ====== ====== Dividends per share Dividends paid 0.800p 0.525p 0.925p Dividends proposed 0.500p 0.400p 0.800p ====== ====== ====== Consolidated Statement of Comprehensive Income for the six months ended 30 September 2013 Profit for the period 554 840 1,658 Other comprehensive income: Actuarial loss and related deferred tax - (114) (398) ----------- ----------- ----------- Total comprehensive income attributable 554 726 1,260to equity shareholders of the parentcompany ====== ====== ====== Consolidated Statement of Financial Position at 30 September 2013 Unaudited Unaudited Audited 30/9/13 30/9/12 31/3/13 £'000 £'000 £'000 ASSETS Non-current assets Property, plant & equipment 6,833 6,837 6,901 Intangible assets 3,071 3,105 3,087 Deferred tax asset 612 654 632 ----------- ----------- ----------- Total non-current assets 10,516 10,596 10,620 ----------- ----------- ----------- Current assets Inventories 2,737 2,907 3,109 Trade and other receivables 6,276 7,426 8,001 Cash and cash equivalents 526 - 298 ----------- ----------- ----------- Total current assets 9,539 10,333 11,408 ----------- ----------- ----------- Total assets 20,055 20,929 22,028 ====== ====== ====== LIABILITIES Non-current liabilities Retirement benefit obligations (2,639) (2,723) (2,749) Borrowings (672) (905) (810) Other creditors (986) (886) (974) Deferred tax (100) (92) (100) ----------- ----------- ----------- Total non-current liabilities (4,397) (4,606) (4,633) ----------- ----------- ----------- Current liabilities Borrowings (475) (1,205) (1,514) Current income tax liabilities (461) (314) (312) Trade and other payables (5,715) (6,279) (6,631) ----------- ----------- ----------- Total current liabilities (6,651) (7,798) (8,457) ----------- ----------- ----------- Total liabilities (11,048) (12,404) (13,090) ====== ====== ====== NET ASSETS 9,007 8,525 8,938 ====== ====== ====== EQUITY Share capital 3,082 3,062 3,062 Share premium 552 557 522 Treasury shares - (79) - Revaluation reserve 140 140 140 Retained earnings 5,233 4,845 5,214 ----------- ----------- ----------- Total equity attributable to equity 9,007 8,525 8,938shareholders of the parent company ====== ====== ====== Consolidated Statement of Changes in Equity for the six months ended 30 September 2013 Attributable to equity shareholders of the parent company Issued Share Treasury Revaluation Retained Total Capital Premium Shares Reserve Earnings Equity £'000 £'000 £'000 £'000 £'000 £'000 Balance at 1 April 3,062 522 - 140 5,214 8,9382013 Issue of shares 20 30 - - - 50 Purchase of - - - - (295) (295)treasury shares Total comprehensive - - - - 554 554income Dividend paid - - - - (240) (240) ----------- ----------- ----------- ------------- ----------- ----------- Balance at 30 3,082 552 - 140 5,233 9,007September 2013 ====== ====== ====== ======= ====== ====== Balance at 1 April 3,062 557 (79) 140 4,278 7,9582012 Total comprehensive - - - - 726 726income Dividend paid - - - - (159) (159) ----------- ----------- ----------- ------------- ----------- ----------- Balance at 30 3,062 557 (79) 140 4,845 8,525September 2012 ====== ====== ====== ======= ====== ====== Balance at 1 April 3,062 557 (79) 140 4,278 7,9582012 Reclassification - (35) 79 - (44) - Total comprehensive - - - - 1,260 1,260income Dividend paid - - - - (280) (280) ----------- ----------- ----------- ------------- ----------- ----------- Balance at 31 March 3,062 522 - 140 5,214 8,9382013 ====== ====== ====== ======= ====== ====== Consolidated Cash Flow Statement for the six months ended 30 September 2013 Unaudited Unaudited Audited 6 months 6 months 12 months 30/9/13 30/9/12 31/3/13 £'000 £'000 £'000 Cash flows from operatingactivities Profit for the period 554 840 1,658attributable to equityshareholders Depreciation charge 282 256 535 Finance costs 151 146 295 Income tax expense 182 229 474 Loss/(profit) on disposal of 3 (16) (14)property, plant & equipment Profit on disposal of asset held - - (12)for sale Amortisation of intangible asset 16 16 34 Charge in respect of enhanced - 26 81transfer exercise _______ _______ _______ Operating cash flow before 1,188 1,497 3,051changes in working capital Decrease in inventories 372 314 112 Decrease/(increase) in 1,725 (536) (1,112)receivables (Decrease)/increase in payables (1,054) (56) 443 _______ _______ _______ Cash generated from operations 2,231 1,219 2,494 Interest paid (114) (90) (191) Income taxes received/( paid) - 10 (170) _______ _______ _______ Net cash generated from 2,117 1,139 2,133operations before pensionexercise Pension fund enhanced transfer - (561) (778)value exercise _______ _______ _______ Net cash generated from 2,117 578 1,355operations _______ _______ _______ Cash flows from investingactivities Proceeds from disposal of 42 10 53property, plant & equipment Proceeds from disposal of assets - 150 150held for sale Acquisition of property, plant & (260) (263) (569)equipment _______ _______ _______ Net cash used in investing (218) (103) (366)activities _______ _______ _______ Cash flows from financingactivities Equity dividends paid (240) (159) (280) Issue of shares 50 - - Purchase of treasury shares (295) - - Amounts repaid in respect of (9) (27) (22)finance leases Loan repayments (133) (419) (583) _______ _______ _______ Net cash used in financing (627) (605) (885)activities _______ _______ _______ Net increase/(decrease) in cash 1,272 (130) 104and cash equivalents Cash and cash equivalents at (951) (1,055) (1,055)beginning of period _______ _______ _______ Cash and cash equivalents at end 321 (1,185) (951)of period ====== ====== ====== Notes to the Interim Report 1. Basis of preparation The unaudited results for the six months have been prepared in accordance withInternational Financial Reporting Standards ("IFRS") and do not constitutestatutory accounts within the meaning of Section 435 of the Companies Act 2006.The interim report has not been prepared in accordance with IAS 34, "InterimFinancial Reporting" in that it does not contain full disclosure of accountingpolicies and does not detail compliance with other standards. These disclosuresare dealt with in the Group's annual report. The statutory accounts for the year ended 31 March 2013, prepared under IFRS,have been delivered to the Registrar of Companies and received an unqualifiedaudit report. 2. Income tax expense The income tax expense is calculated using the estimated tax rate for the yearended 31 March 2014. 3. Earnings per share The calculation of earnings per share for the period is based on the profit forthe period divided by the weighted average number of ordinary shares in issue,being 29,976,848 (6 months to 30 September 2012 and year ended 31 March 2013 -30,295,976). The fully diluted earnings per share in the comparative periods isbased upon the weighted average of 30,370,576 for the 6 months to 30 September2012 and 30,378,246 for the year ended 31 March 2013. The dilution was due tosubsisting share options.