Interim results for the six months to 30 September 2014

Ensor Holdings PLC ("Ensor", the "Group" or the "Company") Interim results for the six months to 30 September 2014 Chairman's Statement * Sales up 11% * Operating profit up 98% * Dividend up 20% This time last year I anticipated that a great deal of hard work would begin togenerate rewards this year. I am delighted that our results for this half yearreflect the confidence shown twelve months ago. All companies in the Ensorgroup have performed very well and, with growing order books, I am optimisticfor the immediate future. The only shadows on the horizon could be interestrate rises affecting market confidence, weakening foreign exchange rates and,with an election approaching, political uncertainty next year. Despite theseconcerns, I believe the Ensor group is well placed to maintain steady progress. I have mentioned that all our subsidiaries have had a strong first six months.Technocover, our manufacturer of high security products, as predicted, hascommenced the programmes of work for the UK water utilities. They are alsoseeing increased enquiry levels which we feel will carry the company into thenext five year Asset Management Programme period of the water industry.Progress into new markets, particularly Rail, is being made as investment inequipment, product development and LPCB testing programmes are completed. Ellard designs and provides specialist electric motors and controls forindustrial doors and gates, supplying these products to manufacturers in the UKand Europe. Since moving into new purpose built premises twelve months ago, thecompany has increased market share and has recently finalised an exclusiveagreement with one of its European suppliers which we believe will secureEllard's position in the market. Working in the same markets as Ellard, OSADoor Parts manufactures insulated industrial doors and garage doors. Providingclose technical support to their door industry customers allows OSA tointroduce new and researched products which can be brought to market quickly.This year OSA is expected to expand into larger premises as these new productdevelopments come on line. Both companies are benefiting from an increasinglyactive construction market. Ensor Building Products distributes roofing materials, including natural slatesand flat roof membranes, drainage systems and other specialist buildingmaterials. Recent work to replace low margin, high volume products with highermargin, lower volume alternatives has had a positive impact on the companyresult. This trend is forecast to continue. Wood's Packaging has made significant progress this year following an excellenttrend of results in recent years. Supplying general packaging materials,specialist protection for furniture transportation and removal, the company hasbenefitted from a buoyant retail market. Close co-operation with suppliers inChina allows Woods to develop new and competitive products. Our subsidiaries are assisted by our China office. Located in Xiamen, a freeport city on the east coast of China, our team of three professionals handlestechnical issues, monitors quality and organises logistics. Our gearing remains a modest 2% (March 2014: 2%) despite a general increase inworking capital due to higher trading activity. Since the end of the first half of the year we have acquired, for £1,000,000,the remaining 10% of the shares of Technocover not already owned by Ensor. Thiswas in accordance with the original 2012 purchase agreement for Technocover. We continue to look for ways to enhance shareholder value. With this in mind,we are watching for opportunities which could achieve this but not at any costor unacceptable risk to the group. Recently, we have been able to increase dividends each year. We are proposingto pay a net interim dividend of 0.6p (2013: 0.5p) per share. This is anincrease of 20% on last year. The interim dividend will be payable in cash onlyand will be paid on 23 January 2015 to shareholders registered on 30 December2014. The ex-dividend date will be 20 January 2015. Each year I have pleasure thanking the men and women who work around the EnsorGroup. This time is no exception. My appreciation and admiration go to everyonefor your contribution and hard work. K A Harrison TDChairman9 December 2014 Enquiries: Ensor Holdings PLCRoger Harrison / Marcus Chadwick0161 945 5953 Westhouse Securities LimitedRobert Finlay020 7601 6100 Consolidated Income Statementfor the six months ended 30 September 2014 Note Unaudited Unaudited Audited 6 months 6 months 12 months re-presented 30/9/14 30/9/13 31/3/14 £'000 £'000 £'000 Revenue 17,011 15,287 30,558 Cost of sales (12,664) (11,571) (23,081) ------- ------- ------- Gross profit 4,347 3,716 7,477 Administrative expenses (2,884) (2,977) (5,650) ------- ------- ------- Operating profit 1,463 739 1,827 Finance costs (118) (151) (301) ------- ------- ------- Profit before tax 1,345 588 1,526 Income tax expense 2 (290) (121) (242) ------- ------- ------- Profit for the year on continuing 1,055 467 1,284operations Discontinued operation - 87 (182) ------- ------- ------- Profit for the period attributable 1,055 554 1,102to equity shareholders of theparent company ======= ======= ======= Earnings per share 3 Continuing operations 3.5p 1.5p 4.3p Discontinued operations 0.0p 0.3p (0.6p) ------- ------- ------- 3.5p 1.8p 3.7p ======= ======= ======= Dividends per share Dividends paid 1.0p 0.8p 0.525p Dividends proposed 0.6p 0.5p 0.400p ======= ======= ======= Consolidated Statement of Comprehensive Incomefor the six months ended 30 September 2014 Profit for the period 1,055 554 1,102 Other comprehensive income: Actuarial loss and related deferred tax (35) - 190 ------- ------- ------- Total comprehensive income attributable 1,020 554 1,292to equity shareholders of the parentcompany ======= ======= ======= Consolidated Statement of Financial Positionat 30 September 2014 Unaudited Unaudited Audited 30/9/14 30/9/13 31/3/14 £'000 £'000 £'000 ASSETS Non-current assets Property, plant & equipment 5,840 6,833 6,413 Intangible assets 2,688 3,071 2,704 Deferred tax asset 440 612 475 ------- ------- ------- Total non-current assets 8,968 10,516 9,592 ------- ------- ------- Current assets Assets held for sale 496 - 496 Inventories 2,940 2,737 2,646 Trade and other receivables 7,928 6,276 6,515 Cash and cash equivalents 447 526 585 ------- ------- ------- Total current assets 11,811 9,539 10,242 ------- ------- ------- Total assets 20,779 20,055 19,834 ======= ======= ======= LIABILITIES Non-current liabilities Retirement benefit obligations (2,098) (2,639) (2,264) Borrowings (394) (672) (533) Other creditors (1,029) (986) (986) Deferred tax (73) (100) (73) ------- ------- ------- Total non-current liabilities (3,594) (4,397) (3,856) ------- ------- ------- Current liabilities Borrowings (277) (475) (275) Current income tax liabilities (668) (461) (378) Trade and other payables (5,924) (5,715) (5,729) ------- ------- ------- Total current liabilities (6,869) (6,651) (6,382) ------- ------- ------- Total liabilities (10,463) (11,048) (10,238) ======= ======= ======= NET ASSETS 10,316 9,007 9,596 ======= ======= ======= EQUITY Share capital 3,082 3,082 3,082 Share premium 552 552 552 Revaluation reserve 140 140 140 Retained earnings 6,542 5,233 5,822 ------- ------- ------- Total equity attributable to equity 10,316 9,007 9,596shareholders of the parent company ======= ======= ======= Consolidated Statement of Changes in Equityfor the six months ended 30 September 2014 Attributable to equity shareholders of the parent company Issued Share Revaluation Retained Total Capital Premium Reserve Earnings Equity £'000 £'000 £'000 £'000 £'000 Balance at 1 April 3,082 552 140 5,822 9,5962014 Total comprehensive - - - 1,020 1,020income Dividend paid (300) (300) ------- ------- ------- ------- ------- Balance at 30 3,082 552 140 6,542 10,316September 2014 ======= ======= ======== ======= ======= Balance at 1 April 3,062 522 140 5,214 8,9382013 Issue of shares 20 30 - - 50 Purchase of treasury - - - (295) (295)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 3,062 522 140 5,214 8,9382013 Issue of shares 20 30 - - 50 Purchase of treasury - - - (295) (295)shares Total comprehensive - - - 1,292 1,292income Dividend paid - - - (389) (389) ------- ------- ------- ------- ------- Balance at 31 March 3,082 552 140 5,822 9,5962014 ======= ======= ======== ======= ======= Consolidated Cash Flow Statementfor the six months ended 30 September 2014 Unaudited Unaudited Audited 6 months 6 months 12 months 30/9/14 30/9/13 31/3/14 £'000 £'000 £'000 Cash flows from operatingactivities Profit for the period 1,055 554 1,102attributable to equityshareholders Depreciation charge 288 282 567 Finance costs 118 151 301 Income tax expense 290 182 242 (Profit)/loss on disposal of (46) 3 (3)property, plant & equipment Amortisation of intangible asset 17 16 33 Loss on disposal of subsidiary - - 263 ------- ------- ------- Operating cash flow before 1,722 1,188 2,505changes in working capital (Increase)/decrease in (295) 372 241inventories (Increase)/decrease in (1,413) 1,725 1,163receivables Increase/(decrease) in payables 74 (1,054) (1,125) ------- ------- ------- Cash generated from operations 88 2,231 2,784 Interest paid (110) (114) (158) Income taxes paid - - (158) ------- ------- ------- Net cash generated from/(used in) (22) 2,117 2,468operations ------- ------- ------- Cash flows from investingactivities Proceeds from disposal of 648 42 97property, plant & equipment Proceeds from sale of subsidiary - - 613 Acquisition of property, plant & (317) (260) (721)equipment ------- ------- ------- Net cash generated from/(used in) 331 (218) (11)investing activities ------- ------- ------- Cash flows from financingactivities Equity dividends paid (300) (240) (389) Issue of shares - 50 50 Purchase of treasury shares - (295) (295) Amounts repaid in respect of (9) (9) (20)finance leases Loan repayments (138) (133) (267) ------- ------- ------- Net cash used in financing (447) (627) (921)activities ------- ------- ------- Net increase/(decrease) in cash (138) 1,272 1,536and cash equivalents Cash and cash equivalents at 585 (951) (951)beginning of period ------- ------- ------- Cash and cash equivalents at end 447 321 585of 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 2014, 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 2015. 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 30,818,074 (6 months to 30 September 2013 - 29,976,848 and year ended 31March 2014 - 30,295,976). There were no financial instruments in existence inany of these periods that would serve to dilute the shareholdings.