25th Sep 2007 08:00
McInerney Holdings PLC25 September 2007 Tuesday, 25th September 2007 McInerney Holdings plc Interim Statement for the six months ended 30th June 2007 The Group reports a profit before tax of €9.2million for the first six months of2007 which compares to €11.2million for the corresponding period in 2006. Private housing profits rose by 97% in the UK and by 15% in Ireland for thefirst six months as compared to the same period in 2006. Profit after tax was€7.9million as compared to €9.3million in the corresponding period in 2006.Basic earnings per share were 4.11 cent compared to 5.4 cent for the same periodin 2006 (as adjusted for the recent rights issue and share split). An interim dividend of 3 cent gross will be paid on 26th October 2007 toshareholders on the register on 5th October 2007. This is an increase from 2cent last year (as adjusted for the recent share split), and represents arebalancing between the interim and final payments. Operationally, our UK business is now the largest component of the Group andthis growth pattern is expected to continue. This is the consequence of our 2001strategic plan to diversify earnings, relocate capital to the UK and expand anddiversify our operations. UK The UK housing operation recorded a significant increase in output in the firsthalf of 2007. We completed 446 homes in the first half of 2007, compared to 268homes for the same period in 2006. Private housing profits were €3.6millioncompared to €1.8million in the first half of 2006. Based on current activity, itis expected that the strong momentum in the number of unit completions willcontinue in the second half of the year. The Group's expansion plans continue to progress. Our acquisition of LancingHomes in February has been immediately earnings enhancing and its integration iscomplete. Our geographic spread across the North and Midlands of England nowextends to 74 sites. This broadened operational base, combined with a productfocus within the construction sector which continues to show strong demand, isanticipated to support continued revenue and profit growth going forward. In addition, recent reviews of planning strategy initiated by the Governmentpresent the Group with further opportunities. McInerney recently pre-qualifiedas one of a small number of private developers eligible to bid directly forfunds from the National Affordable Housing Programme (2008-2011). It isanticipated this will boost our UK social housing division in future years. The commercial division completed 1,842 sq metres of industrial units in theouter London area compared to 2,376 sq. metres in the first half of 2006. A newsite was recently secured at Park Royal. Ireland The Group's Irish housing business completed 257 homes in the first half of 2007compared to 362 homes for the same period in 2006. Private housing profits were€12.2million as compared to €10.7million for the first six months of 2006. TheGroup anticipates unit completions for the full year to be short of 2006 levelsand below target for the year. The fundamentals of the Irish economy and housing market remain strong althoughconsumer caution became more evident as the period progressed, impacted by thetightening of interest rates. We provide quality, affordable homes and have asignificant geographic spread throughout the country. Recent new planningpermissions secured provide access to new locations offering good demand forwell priced housing product. We are currently active on 28 sites in Ireland and expect this number toincrease next year. Despite a slower pace of demand in the Irish market, weanticipate momentum to return and this, coupled with our favourable planningpermissions position, should result in our output increasing in 2008. The Irish contracting business delivered a good performance and the order bookon hand is circa €137million. It is anticipated that this business will benefitfrom the Government's capital programme for housing. The Group's commercial division, Hillview Developments sold 1,591 sq. metres ofindustrial units in the first half of 2007. Spain The Spanish market has witnessed a general slowdown. In this context, we are notanticipating growth in the short term. Our Spanish operation completed 17 homesin the first half of 2007 compared to 30 homes for the same period in 2006. Outlook In line with our strategic plan, our operations are now very broadly spreadthrough England and Ireland offering an affordable product. Strong margins are being achieved in Ireland and this combined with increased UKvolume output and other activities will offset the Irish volume shortfall. Our UK business has now achieved substantial critical mass and will continue tobecome a greater contributor to Group earnings growth. The Directors expect astrong full year result from the UK housing division. We are confident of another good result for the full year. Ned Sullivan Chairman ENDS For Information Siobhan Molloy Tel: +353 1 676 01 68Weber Shandwick or +353 86 817 50 66 MC INERNEY HOLDINGS PLCCONSOLIDATED INCOME STATEMENTFor the period ended 30 Jun 2007 30 Jun 2007 30 Jun 2006 31 Dec 2006 Unaudited Unaudited Audited •'000 •'000 •'000 Continuing operations Revenue 238,223 228,823 630,064 Cost of Sales (195,677) (190,386) (507,484) Gross Profit 42,546 38,437 122,580 Administrative Expenses (25,712) (20,193) (49,303) Share of Results from Joint Ventures 546 (74) 1,064 Profit from Operations 17,380 18,170 74,341 Investment Income 516 75 570 Finance Costs (8,715) (7,035) (16,913) Profit before Tax 9,181 11,210 57,998 Tax (1,253) (1,863) (9,377) Profit attributable to Equity Holders of the Parent 7,928 9,347 48,621 Earnings Per Share From Continuing Operations: Basic 4.11 5.40 28.04 Diluted 4.02 5.19 27.03 MC INERNEY HOLDINGS PLCCONSOLIDATED BALANCE SHEETAs at 30 Jun 2007 30 Jun 2007 30 Jun 2006 31 Dec 2006 Unaudited Unaudited Audited •'000 •'000 •'000 Non-Current Assets Goodwill 58,601 30,521 49,485 Property, Fixtures & Equipment 12,538 7,622 7,544 Investment Property - 183 - Interests in Joint Ventures 4,422 2,457 3,877 Deferred Tax Assets 1,573 161 1,696 77,134 40,944 62,602 Current Assets Inventories 555,032 407,693 442,093 Trade & Other Receivables 78,416 53,927 68,230 Cash & Cash Equivalents 64,707 37,147 84,382 Assets Classified as held for Sale 856 1,654 1,507 699,011 500,421 596,212 Total Assets 776,145 541,365 658,814 Current Liabilities Trade & Other Payables 169,604 142,374 142,178 Retirement Benefit Obligation 243 487 345 Tax Liabilities 11,247 5,855 19,225 Provisions 2,614 2,124 2,500 Obligations under Finance Leases 374 412 398 Bank Overdrafts & Loans 47,137 99,079 42,106 231,219 250,331 206,752 Net Current Assets 467,792 250,090 389,460 Non-Current Liabilities Bank Loans 245,855 112,916 238,230 Retirement Benefit Obligation 398 799 1,039 Deferred Tax Liabilities 4,556 2,248 2,296 Provisions 3,086 2,910 4,007 Other Payables 69 10,384 4,531 Obligations under Finance Leases 608 476 477 254,572 129,733 250,580 Total Liabilities 485,791 380,064 457,332 Net Assets 290,354 161,301 201,482 EQUITY Share Capital 5,047 4,172 4,173 Capital Conversion Reserve Fund 62 62 62 Share Premium Account 101,713 17,481 17,484 Equity Reserve 2,666 862 2,328 Hedging & Translation Reserves 3,153 (326) 2,504 Retained Earnings 177,713 139,050 174,931 290,354 161,301 201,482 Total Equity and Liabilities 776,145 541,365 658,814 MC INERNEY HOLDINGS PLCCONSOLIDATED CASH FLOW STATEMENTFor the period ended 30 Jun 2007 30 Jun 2007 30 Jun 2006 31 Dec 2006 Unaudited Unaudited Audited •'000 •'000 •'000 Profit from Operations 17,380 18,170 74,341 Adjustments for: Depreciation 1,271 1,081 2,340 Share of Results from Joint Ventures (546) 74 (1,064) Provision for Fair Value of Share based Payments 338 188 591 Profit on disposal of Tangible Assets - (6) 10 Pension Service Costs 239 180 420 Change in provisions (807) - 1,006 Operating Cash Flows before movements in Working 17,875 19,687 77,644Capital Increase in Inventories (78,790) (72,214) (66,948) (Increase) / Decrease in Receivables (6,735) 2,091 (7,595) Increase in payables 4,774 10,786 5,423 Cash Generated by Operations (62,876) (39,650) 8,524 Taxation Paid (1,452) (4,794) (12,148) Interest Paid (8,742) (7,704) (16,056) NET CASH FROM OPERATING ACTIVITIES (73,070) (52,148) (19,680) INVESTING ACTIVITIES Interest Received 423 49 187 Dividends Received from Joint Ventures - 1,976 1,976 Loans advanced to Joint Ventures (3,287) (3,439) (5,030) Loans repaid from Joint Ventures - 345 351 Proceeds on disposal of Property, Fixtures & 87 148 250Equipment Purchases of Property, Fixtures & Equipment (5,785) (1,940) (3,157) Employer Contributions to Pension Scheme (273) (243) (346) Acquisition of Subsidiary (25,047) (3,508) (38,133) NET CASH USED IN INVESTING ACTIVITIES (33,882) (6,612) (43,902) FINANCING ACTIVITIES Dividends Paid (6,009) (5,006) (8,343) Share Capital Subscribed 85,103 328 332 Repayments of Borrowings (112,106) (50,728) (106,929) Repayments of Obligations under Finance Leases (341) (291) (630) New Bank Loans Raised 122,440 88,862 198,789 (Decrease) / Increase in Bank Overdrafts (2,125) 822 1,047 NET CASH FROM FINANCING ACTIVITIES 86,962 33,987 84,266 NET (DECREASE) / INCREASE IN CASH AND CASH (19,990) (24,773) 20,684EQUIVALENTS CASH AND CASH EQUIVALENTS AT START OF PERIOD 84,382 62,056 62,056 Effect of Foreign Exchange Rate Changes 315 (136) 1,642 CASH AND CASH EQUIVALENTS AT END OF PERIOD Bank Balances and Cash 64,707 37,147 84,382 MC INERNEY HOLDINGS PLCCONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE For the period ended 30 Jun 2007 30 Jun 2007 30 Jun 2006 31 Dec 2006 Unaudited Unaudited Audited •'000 •'000 •'000 Actuarial gain on defined benefit pension scheme 986 493 425 Exchange difference on translation of foreign 303 156 2,467operations Fair value movement on interest rate swaps 352 1,033 1,466 Tax on Items taken directly to reserves (123) (62) 1,013 Net Income recognised directly in equity 1,518 1,620 5,371 Transfers to income on interest rate swaps (6) 9 95 Profit for the Period 7,928 9,347 48,621 Total recognised income and expense for the period attributable to equity shareholders 9,440 10,976 54,087 CONSOLIDATED RECONCILIATION OF CHANGES IN SHAREHOLDERS'EQUITYFor the period ended 30 Jun 2007 Total (Attributable Hedging & to Equity Share Capital Translation Retained Holders of Capital Reserves Reserves Earnings Parent) •'000 •'000 •'000 •'000 •'000 Balance at 1 January 2006 4,145 17,916 (1,524) 134,278 154,815 Total recognised income and expense for the period - - 1,198 9,778 10,976 Recognition of share based payments - 188 - - 188 Dividends Paid - - - (5,006) (5,006) New share issue 27 301 - - 328 Total movement 27 489 1,198 4,772 6,486 Balance at 30 June 2006 4,172 18,405 (326) 139,050 161,301 Balance at 1 January 2007 4,173 19,874 2,504 174,931 201,482 Total recognised income and expense for the period - - 649 8,791 9,440 Recognition of share based payments - 338 - - 338 Dividends Paid - - - (6,009) (6,009) New share issue 874 84,229 - - 85,103 Total movement 874 84,567 649 2,782 88,872 Balance at 30 June 2007 5,047 104,441 3,153 177,713 290,354 MC INERNEY HOLDINGS PLC Segment Information The Group operates in three markets, Ireland, UK and Spain. The principal activities of the Group arePrivate Housing Development, Contracting, Commercial Development and Leisure. The Leisure activities aredivided into Club Management and Freehold sales. Land sales also form an activity of each businesssegment. These divisions are the basis on which the Group reports its primary segment information. REVENUE 30 Jun 2007 30 Jun 2006 Unaudited Unaudited •'000 •'000 Ireland: Private Housing 70,351 83,697 Developed Sites & Land 814 1,580 Construction Contracts 44,719 51,367 Commercial 2,910 7,556 Commercial Land 2,437 - 121,231 144,200 UK: Private Housing 88,247 56,405 Developed Sites & Land 9,001 5,396 Construction Contracts 10,540 4,971 Commercial 4,381 4,116 112,169 70,888 Spain: Club Management 1,209 1,363 Leisure Freehold 10,011 14,569 11,220 15,932Group Revenue (including joint ventures) 244,620 231,020 Eliminations (6,397) (2,197)Group Revenue (excluding joint ventures) 238,223 228,823 SEGMENT RESULTS 30 Jun 2007 30 Jun 2006 Unaudited Unaudited •'000 •'000 Ireland: Private Housing 12,249 10,677 Developed Sites & Land 377 729 Construction Contracts 889 831 Commercial 367 2,117 Commercial Land 473 - 14,355 14,354 UK: Private Housing 3,579 1,819 Developed Sites & Land 677 2,615 Construction Contracts 1,248 276 Commercial 432 278 5,936 4,988 Spain: Club Management 288 479 Leisure Freehold 521 1,785 809 2,264 Total Segment Results 21,100 21,606 Common costs (3,720) (3,436) Profit from operations 17,380 18,170 Investment income 516 75 Finance costs (8,715) (7,035) Profit before tax 9,181 11,210 Tax (1,253) (1,863) Profit after tax 7,928 9,347 Dividends 30 Jun 2007 30 Jun 2006 Unaudited Unaudited •'000 •'000 Amounts recognised as distributions to equity holdersduring the period: Charge to Profit & Loss Final dividend of 3.6c per share for the year ended 31 December 2006 (2005: 3c per share) paid in period 6,009 5,006 Proposed Dividend Proposed interim dividend for the year ended 31 December 2007 of 3c per share (2006: 2c per share) 6,056 3,337 The proposed interim dividend was approved by the Board on 24 September 2007 andhas not been included as a liability in these financial statements. Comparative figures for dividend per share have been adjusted following theshare split. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Medcaw Investm.