23rd Mar 2010 07:00
23 March 2010
Augean Plc
Preliminary results for the year ended 31 December 2009
Augean PLC ("Augean" or "the group"), one of the UK's market leaders in the management of hazardous waste, announces its preliminary results for the year ended 31 December 2009.
Financial highlights
·; Revenue excluding landfill tax of £28.1m (2008: £36.3m)
·; Adjusted operating profit of £2.3m (2008: £6.2m)
·; Adjusted profit before tax of £1.3m (2008: £4.0m)
·; Adjusted earnings per share of 1.8p (2008: 7.1p)
·; Cash flow from operations of £4.0m (2008: £11.6m)
·; Following successful placing raising £12.2m net of expenses, net debt reduced to £6.0m (2008: £16.8m)
·; Refinancing completed with three year £10.0m revolving credit facility secured with HSBC
·; Exceptional non-cash goodwill impairment charge recognised of £55.2m
Operational highlights
Weathered worst of the recessionary markets Management actions to reduce costs and minimise capital expenditure Markets remain challenging into 2010 Clear strategy for growth:
Commenting on the results, CEO Paul Blackler said:
"2009 has been without exception the most challenging year the group has faced; we have worked extremely hard to manage the business through these difficult times and continue to focus on our clear strategy for growth with the resources, infrastructure and space to go forward. However, 2010 has started slowly with the adverse weather conditions impacting trading in January and into February. Whilst we remain cautious about the short term outlook, the investments in new technology have enabled us to develop our services into new markets and we are well positioned to benefit from any recovery in the UK hazardous waste markets."
For further information, please contact:
Augean PLC
Paul Blackler, Chief Executive Tel: 01937 844 980
Peter Southby, Finance Director
Financial Dynamics
Jonathon Brill Tel: 020 7831 3113
Billy Clegg
Ed Westropp
There will be a meeting for analysts at 0930 today at the offices of FD, Holborn Gate, 26 Southampton Buildings, London, WC2A 1PB.
Chairman's statement
The year under review was one of mixed fortunes for your company.
It is fair to say that the hazardous waste market has not seen the growth expected of it when it "demerged" from the general waste market back in 2003. Several changes to the regulations in our sector caused confusion and ambiguity in the early years and it has taken much longer for this branch of the waste industry to develop. The lack of contracted revenue streams caused by the confusion surrounding regulations has made profit projections particularly hard to predict and I think it fair to say that it has been a particularly frustrating time for our investors.
Net revenue excluding landfill tax for the year decreased to £28.1m (2008: £36.3m). Operating profit before exceptional costs also decreased to £2.3m (2008: £6.2m). The statutory results include a number of exceptional costs, the most significant of which relates to a £55.2m goodwill impairment charge. This accounting charge has been calculated according to the requirements of International Financial Reporting Standards (IFRS) and does not affect the cash flow of the business.
Whilst recognising that landfill will always play an important part in the disposal of waste, we have aimed to broaden our service to other forms of waste treatment, which Paul Blackler has eloquently covered in the business review.
Given the very specialised nature of our sub sector within the waste market, it has also taken time to build our team and thanks to Paul's hard work these past 18 months, we now have an excellent collection of expertise to assist in taking your company forward.
So, having targeted the additional service offerings for our clients and assembled a credible team, we had to ensure that our financial structure was appropriate for our plans. I am pleased to report that we were successful in securing £12.2m net of expenses by way of a share placing in the latter part of the year. This allowed us to refinance the group's debt on more favourable terms, putting Augean on a sound financial footing for the future.
With our strong financial position, experienced management team in place and some good new institutional shareholders supporting us, it is an appropriate time for me to stand down and hand over to Roger McDowell, who will become non-executive chairman. Roger knows the business well, having been with us from the start as a non-executive director. I wish the entire Augean team best wishes for the future.
Business review
Introduction
The group entered 2009 managing a number of difficult circumstances which dramatically affected both development and underlying trading, not least the extreme economic environment which so rapidly impacted on the waste markets. The recession has affected the waste market directly both in the decline in volumes and the slow down of release of waste streams as producers acted promptly to preserve cash. The recessionary markets also brought price pressure, capacity issues as the markets contracted and a fall in value of materials recovered from waste. All these issues materially affected trading and revenue for the year was 21% lower than in the previous twelve months.
Throughout the first half of the year the group remained in a period of uncertainty as offer talks continued. The group came out of the offer period on 3 July.
In September, the board activated a fundraising process with the objective of raising equity to reduce the overall indebtedness of the group and promote a competitive process for renewing the group's banking facilities. The fundraising successfully raised £12.2m, net of expenses, with support from both existing and new institutional investors. The board is extremely grateful for the strong support. Following the successful fundraising the group has agreed a new £10.0m revolving credit facility with HSBC which gives Augean a secure financial platform for the future.
Managing hazardous waste safely and compliantly requires specialist staff trained and qualified to deliver these objectives. The board took the decision during the year to protect the essential staff and weather the difficult market conditions. However, actions were taken to take costs out of the business where possible and this review has continued into the new year.
We completed the capital projects which carried over from 2008 but concentrated on reducing capital expenditure for the remainder of the year. The board will continue to minimise this expenditure in 2010.
Whilst managing the business in these extremely challenging times the development strategy for the group remains focused on four primary growth markets. 2009 was an important year in achieving progress with these four opportunities which are covered in further detail in the strategy section of this business review.
The hazardous waste market
The current available data from the Environment Agency on the production of hazardous waste is for 2008. 2009 statistics will not be available until later in 2010, however, we believe this data will show significant reduction in overall waste production.
The market continues to move towards more sustainable methods of managing waste and the development of treatment, recycling and recovery remains the key to the emerging market. Augean has been at the forefront of leading the development of waste infrastructure to deliver the long term objectives of the legislative frameworks.
The group continues to take a strong role in the development of regulation and policy for hazardous waste. By engaging with government departments, local authorities and the regulators, we promote the industry viewpoint and modernisation of the sector, seeking to establish a positive regulatory and policy framework for the business. Augean served on the Steering Group for the DEFRA Strategy for Hazardous Waste Management published in March 2010 and contributed to the Nuclear Decommissioning Authority's Strategy for Low Level Waste due for publication imminently.
Augean welcomes the Strategy for Hazardous Waste Management, a key policy document promoting the development of a modern hazardous waste management sector based on the waste hierarchy. The Strategy has a strong emphasis on investment and development of new infrastructure for hazardous waste treatment and recovery, in particular for organic waste. Anticipating the direction of policy travel, the Augean business model developed over the last three years is strongly aligned with the Strategy. The development of stabilisation, thermal desorption and soil treatment centres are supported by, and contribute significantly to, this critical policy initiative. Augean is therefore well positioned to take full advantage of the policy as the economic circumstances improve.
Further developments in 2010 will include the implementation of the Waste Framework Directive and the development of the hazardous waste National Policy Statement. Augean is strongly engaged with both of these initiatives.
Strategy
The board's priority continues to be the creation of long term shareholder value. Whilst the extreme economic conditions in 2009 have slowed our development, the board believes that the quality of its people, assets and capabilities places the group in a favourable position to benefit from economic recovery. In September the board announced a clear direction for Augean's development and identified four strategic growth areas:
§ Low Level Waste
§ Offshore
§ Refineries
§ Energy
The fundamental principles of our growth opportunities are based on entering these new markets utilising the invested platform. The four strategies are based on maximising the infrastructure and consents which the group owns and developing our services into the new exciting markets.
In May 2009 the company announced that it was to engage in a public consultation process which would result in an application being made for the East Northants Resource Management Facility (ENRMF) near King's Cliffe to receive Low Level Waste (LLW) from the Nuclear Decommissioning markets. The full application was submitted in July with a statutory consultation process leading us to expect a decision by the end of the year. The Planning Authority requested an extension in time to ensure that the Development Control Committee could be appropriately advised on the application and this resulted in the decision date being moved to the 16 March 2010. The Radioactive Substances Act (RSA) authorisation was issued in draft by the Environment Agency in January 2010 demonstrating that the site meets all the technical and operational requirements to handle LLW. The Development Control Committee met on the 16 March with the planning officer's report strongly recommending approval. Disappointingly the application was refused which has delayed the delivery of the project however we remain confident that we will be successful on appeal and continue to focus on the new market opportunities. The market for LLW is still extremely exciting; in particular once we gain the necessary consents the ENRMF site will be the only site permitted to take both non-hazardous and hazardous wastes with low levels of radioactivity. We are engaging with the decommissioning sector and recognise that the unique consent will provide important solutions to the decommissioning challenges, in particular, waste streams such as asbestos, contaminated soil and demolition wastes with complex hazardous contaminants. The business model is focused on low volume high margin waste streams.
The Indirect Thermal Desorption (ITD) process at the Port Clarence Waste Recovery Park has been designed to treat and recover waste derived from the oil and gas refinery markets. Whilst we experienced some commissioning difficulties in the last quarter of 2009, the process is now fully operational. We are now focusing our sales teams on delivering our services to the refinery markets and to continue to develop innovative solutions both from the fixed facility and from a mobile services option.
The board set out to develop its thermal treatment services to a wider market. We have been working with North Sea offshore operators to offer our new services to manage wastes which are derived from drilling operations. We are delighted to announce that the hard work in 2009 has resulted in successfully securing an exclusive contract with Scomi Oilfield Services, historic leaders in the thermal processing of drill cuttings. The contract is for three years with an option to extend and, in the first 16 months, provides a minimum of 10,000 tonnes of drill cuttings waste into the Recovery Park.
As part of the asset development programme we have been working with a specific partner on the development of a gasification process which is designed to convert wood waste into energy. The contractual work is progressing and we are hopeful of moving towards financial close later in the year. We are pleased to announce that we have signed a contract with Renewable Power Systems Limited to manage landfill gas to energy recovery. The contract is for 20 years and we anticipate grid connection in 2011 providing income from electricity sales.
Divisional review
Landfill division
Revenue excluding landfill tax was £12.9m (2008: £15.6m) with hazardous volumes lower at 195,745 tonnes (2008: 323,517 tonnes) but prices higher at an average £47/tonne (2008: £42/tonne). Operating profit was £4.6m (2008: £4.9m) including £1.0m recognised in respect of the group's claim for overpaid landfill tax, £0.7m following reassessment of stockpiled waste as disclosed at the half year and £0.7m further to the disposal of a non-core quarry asset completed in October 2009. The future regime for landfill tax remains uncertain with the results of a major consultation expected shortly, but the group is pleased to report that, subsequent to the year end, it has received a payment of £2.5m from HMRC in respect of its claim for overpaid landfill tax.
A second soil treatment centre has been constructed at the group's East Northants Resource Management Facility to deliver capacity for the southern region markets.
Treatment division
Revenue for the division was £16.7m (2008: £22.3m) with an operating loss of £2.3m (2008: profit of £1.2m). The Cannock facility suffered due to design failures on the new process. These issues resulted in the process becoming inoperable. A significant amount of further re-engineering work was required to rectify the problem however the issues impacted the trading performance of the site throughout 2009. We are currently pursuing a claim against the contractor whilst the process is now delivering the required performance into 2010 with the business restored to profitability.
The Avonmouth site trading performance was materially affected by the collapse of prices in the commodities markets. Avonmouth processes and recycles waste oils from garages, engineering workshops and hydraulic equipment users; the process generates a Recovered Fuel Oil (RFO) which is then sent for final refining before being utilised as a fuel substitute. The prices for RFO collapsed in early 2009 and the market did not recover until the final quarter of the year significantly affecting the profits for the site.
Financial review
Trading
Net revenue excluding landfill tax for the year ended 31 December 2009 decreased by 22% to £28.1m (2008: £36.3m). With the inclusion of landfill tax charged to customers, on which the group makes no margin, of £3.4m (2008: £3.8m), total group revenue fell by 21% to £31.5m (2008: £40.1m).
Operating margin and exceptional costs
Operating profit before exceptional costs decreased to £2.3m (2008: £6.2m) and adjusted profit before tax to £1.3m (2008: £4.0m). The reduction in operating margin on revenue excluding landfill tax to 8% (2008: 17%) reflected the impact of the weaker performance of the treatment division during the year and the operationally geared nature of the business.
Statutory operating profit was adversely affected by exceptional costs relating to the offer period (£0.1m), costs relating to an Environment Agency prosecution (£0.2m), restructuring charges (£0.2m) and impairment losses (£55.2m).
Under IFRS, an annual impairment review must be performed for each cash-generating unit in accordance with IAS36 'Impairment of Assets'. The group has completed this exercise with the advice of external experts and determined that, given the sustained downturn in the hazardous waste market and the uncertain timing of any recovery, it would be prudent to recognise impairments of goodwill in the landfill and treatment divisions of £38.6m and £16.7m respectively. This does not affect the cash flow of the business.
After including the impact of these exceptional costs, the group's operating loss was £53.3m (2008: profit of £5.2m).
Finance costs
Following the successful placing in October 2009, the group refinanced its banking facilities in December 2009. As a result, finance charges in 2009 included £0.2m of costs related to the cancellation of the previous facilities. Including these costs, total finance charges reduced to £1.2m (2008: £1.8m), including £0.1m (2008: £0.1m) of unwinding of discount on provisions.
Jointly controlled entity
The group's Terramundo joint venture with DEC NV continued to face difficult market conditions in 2009, but benefitted from cost saving measures to bring its result for the year close to breakeven (2008: loss of £0.3m). Both joint venture parties remain committed to this strategic venture, but in recognition of the uncertainty in the marketplace for its services, have placed the venture on hold at the current time.
Tax
The group has continued to benefit from the utilisation of tax losses in its landfill businesses. This has resulted in no overall current tax charge in the year as in 2008. The group expects that it will continue to benefit from a reduced current tax rate in the short term as it utilises the remaining losses recognised as a deferred tax asset.
Dividend
The board does not recommend the payment of a dividend for the year ended 31 December 2009. It continues to review the group's financial situation in order to ensure that dividends are paid to shareholders at an appropriate point in the group's development.
Earnings per share
Basic earnings per share adjusted to exclude the impact of exceptional costs were 1.8p (2008: 7.1p). The weighted average number of shares in issue increased following the placing to 73.0m (2008: 65.5m). After exceptional costs, the loss per share was 74.8p (2008: earnings per share of 5.6p). There were no dilutive outstanding share options at either year end.
Cash flow
Net cash generated from operating activities was £3.0m (2008: £9.5m). Net cash used in investing activities was £4.4m (2008: £6.1m), with £5.1m spent on purchases of property, plant and equipment as the group completed the investment programme committed to in 2008. The significant reduction in capital expenditure in the second half of 2009 is expected to continue into the coming year. The group disposed of a non-core quarry asset for £0.7m in the year. The £12.2m net proceeds of the placing were used to reduce borrowings, with net debt falling to £6.0m (2008: £16.8m), a gearing level of 13% (2008: 19%).
Placing and banking facilities
In October 2009 the group completed a placing of 34,210,522 shares at 38 pence per share. Following the subsequent refinancing completed in December 2009, the group's funding is comprised of a three year revolving credit facility of £10.0m supplemented by finance leases secured on certain plant. At 31 December 2009, the undrawn banking facilities available to the group were £5.1m.
Outlook
We are making good progress with the group's development strategy; whilst we are disappointed about the delay in obtaining the LLW planning permission for ENRMF we are confident we will be successful on appeal. This will take time and energy to deliver and we now do not anticipate being in a position to receive the waste until 2011. We are delighted to have signed a contract with Scomi and are working hard to ensure that we provide a first class service which will enable our partner to win work with the objective of exceeding the minimum volume target. The ITD process is the first of its kind in the UK, and has taken longer than we would have liked to complete the commissioning phase; however we are through these challenges and putting momentum behind the sales teams to deliver strong inputs into the new facility.
2009 was the most challenging year the group has yet faced with the deep recession in the UK. We then started 2010 with the exceptional weather conditions in January and into February which made trading difficult as land remediation, construction and demolition projects did not start, coupled with freezing temperatures which affected operations and logistics.
The uncertainty in the UK markets and the slower start makes forecasting so early in the financial year difficult. The board's current view is that the first half of the year will continue to be challenging, however with positive progress on the initiatives outlined above impacting in the second half of the year we are confident that the group's underlying trading will return to profit. The board will make further announcements to update shareholders when the situation becomes clearer.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2009
|
|
|
Before |
|
|
Before |
|
|
|
|
|
exceptional |
Exceptional |
|
exceptional |
Exceptional |
|
|
|
|
costs |
costs |
Total |
costs |
costs |
Total |
|
|
|
2009 |
2009 |
2009 |
2008 |
2008 |
2008 |
|
|
Note |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
|
Revenue |
2 |
31,540 |
- |
31,540 |
40,081 |
- |
40,081 |
|
Operating expenses |
|
(29,213) |
(55,665) |
(84,878) |
(33,924) |
(996) |
(34,920) |
|
Operating profit/(loss) |
2 |
2,327 |
(55,665) |
(53,338) |
6,157 |
(996) |
5,161 |
|
|
|
|
|
|
|
|
|
|
Finance charges |
|
(995) |
(189) |
(1,184) |
(1,844) |
- |
(1,844) |
|
Share of loss of jointly controlled entity |
|
(30) |
- |
(30) |
(292) |
- |
(292) |
|
Profit/(loss) before tax |
|
1,302 |
(55,854) |
(54,552) |
4,021 |
(996) |
3,025 |
|
Tax |
|
- |
- |
- |
621 |
- |
621 |
|
Profit/(loss) for the year attributable to equity shareholders |
|
1,302 |
(55,854) |
(54,552) |
4,642 |
(996) |
3,646 |
|
Total comprehensive income attributable to equity holders of the parent company |
|
1,302 |
(55,854) |
(54,552) |
4,642 |
(996) |
3,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share |
|
|
|
|
|
|
|
|
Basic and diluted |
3 |
1.8p |
(76.6p) |
(74.8p) |
7.1p |
(1.5p) |
5.6p |
Consolidated Statement of Financial Position
at 31 December 2009
|
|
|
2009 |
2008 |
|
|
|
£'000 |
£'000 |
|
Non-current assets |
|
|
|
|
Goodwill |
|
21,705 |
77,768 |
|
Other intangible assets |
|
130 |
217 |
|
Property, plant and equipment |
|
36,133 |
33,176 |
|
Deferred tax asset |
|
121 |
413 |
|
|
|
58,089 |
111,574 |
|
Current assets |
|
|
|
|
Inventories |
|
130 |
138 |
|
Trade and other receivables |
|
7,538 |
8,546 |
|
Cash and cash equivalents |
|
335 |
765 |
|
|
|
8,003 |
9,449 |
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
(7,809) |
(10,232) |
|
Current tax liabilities |
|
(561) |
(1,540) |
|
Financial liabilities |
|
(450) |
(4,652) |
|
|
|
(8,820) |
(16,424) |
|
Net current liabilities |
|
(817) |
(6,975) |
|
Non-current liabilities |
|
|
|
|
Financial liabilities |
|
(5,864) |
(12,894) |
|
Provisions |
|
(6,191) |
(3,885) |
|
Trade and other payables |
|
- |
(300) |
|
Share of losses of jointly controlled entity |
|
(446) |
(416) |
|
|
|
(12,501) |
(17,495) |
|
Net assets |
|
44,771 |
87,104 |
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
Share capital |
|
9,970 |
6,549 |
|
Share premium account |
|
114,960 |
106,222 |
|
Retained losses |
|
(80,159) |
(25,667) |
|
Total shareholders' equity |
|
44,771 |
87,104 |
Consolidated Statement of Cash Flow
for the year ended 31 December 2009
|
|
|
2009 |
2008 |
|
|
Note |
£'000 |
£'000 |
|
Operating activities |
|
|
|
|
Cash generated from operations |
4 |
3,990 |
11,631 |
|
Interest paid |
|
(757) |
(2,031) |
|
Tax paid |
|
(199) |
(99) |
|
Net cash generated from operating activities |
|
3,034 |
9,501 |
|
Investing activities |
|
|
|
|
Proceeds on disposal of property, plant and equipment |
|
49 |
55 |
|
Purchases of property, plant and equipment |
|
(5,131) |
(5,366) |
|
Purchases of intangible assets |
|
(44) |
(22) |
|
Proceeds on disposal of subsidiary undertaking |
|
735 |
- |
|
Purchase of businesses |
|
- |
(770) |
|
Net cash used in investing activities |
|
(4,391) |
(6,103) |
|
Financing activities |
|
|
|
|
Proceeds on issue of shares |
|
12,159 |
- |
|
Repayments of borrowings |
|
(12,286) |
(2,000) |
|
Drawdown of loan facilities |
|
- |
1,000 |
|
Drawdowns under finance leases |
|
1,529 |
- |
|
Repayments of obligations under finance leases |
|
(475) |
(347) |
|
Net cash generated from/(used in) financing activities |
|
927 |
(1,347) |
|
Net (decrease)/increase in cash and cash equivalents |
|
(430) |
2,051 |
|
Cash and cash equivalents at beginning of period |
|
765 |
(1,286) |
|
Cash and cash equivalents at end of period |
|
335 |
765 |
Statement of Changes in Shareholders' Equity
for the year ended 31 December 2009
|
|
|
Share |
Statement of |
|
|
|
Share |
premium |
comprehensive |
Shareholders' |
|
|
capital |
account |
income |
equity |
|
Group |
£'000 |
£'000 |
£'000 |
£'000 |
|
At 1 January 2008 |
6,549 |
106,222 |
(29,389) |
83,382 |
|
Share-based payments |
- |
- |
76 |
76 |
|
Retained profit and total comprehensive income for the year |
- |
- |
3,646 |
3,646 |
|
At 1 January 2009 |
6,549 |
106,222 |
(25,667) |
87,104 |
|
Shares issued in year |
3,421 |
8,738 |
- |
12,159 |
|
Share-based payments |
- |
- |
60 |
60 |
|
Retained loss and total comprehensive income for the year |
- |
- |
(54,552) |
(54,552) |
|
At 31 December 2009 |
9,970 |
114,960 |
(80,159) |
44,771 |
1 Financial information
The financial information set out in this preliminary announcement does not constitute statutory accounts within the meaning of s434 and s435 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2009 will be dispatched to shareholders by 30 April 2010 for approval at the Annual General Meeting to be held on 8 June 2010. The statutory accounts contain an unqualified audit report, which did not include a statement under s498(2) or s498(3) of the Companies Act 2006, and will be delivered to the Registrar of Companies.
The statutory accounts for the year ended 31 December 2008 have been delivered to the Registrar of Companies, contained an unqualified audit report and did not include a statement under s237 (2) or (3) of the Companies Act 1985.
2 Segmental information
The group's business segments provide services which are subject to risks and returns which are different from each other. The group's internal organisation and management structure and its system of internal financial reporting are based primarily on business segments. The business segments comprise the landfill division and the treatment division. Segmental revenue, expense and results include transactions between businesses. Inter-segmental transactions are eliminated on consolidation. There are no geographical business segments as all the group's activities take place within the same economic environment.
The segmental results for the year ended 31 December 2009 are as follows:
|
|
Landfill |
Treatment |
Group |
|
|
£'000 |
£'000 |
£'000 |
|
Revenue |
|
|
|
|
External sales net of landfill tax |
11,375 |
16,732 |
28,107 |
|
Landfill tax |
3,433 |
- |
3,433 |
|
External sales |
14,808 |
16,732 |
31,540 |
|
Inter-segment sales |
1,570 |
- |
1,570 |
|
Total revenue |
16,378 |
16,732 |
33,110 |
|
|
|
|
|
|
Result |
|
|
|
|
Operating profit/(loss) before exceptional costs |
4,633 |
(2,306) |
2,327 |
|
Exceptional costs |
(38,679) |
(16,986) |
(55,665) |
|
Operating loss |
(34,046) |
(19,292) |
(53,338) |
|
Finance charges |
|
|
(1,184) |
|
Share of loss of jointly controlled entity |
|
|
(30) |
|
Loss before tax |
|
|
(54.552) |
|
Tax |
|
|
- |
|
Loss for the year attributable to equity shareholders |
|
|
(54,552) |
The segmental results for the year ended 31 December 2008 were as follows:
|
|
Landfill |
Treatment |
Group |
|
|
£'000 |
£'000 |
£'000 |
|
Revenue |
|
|
|
|
External sales net of landfill tax |
13,993 |
22,260 |
36,253 |
|
Landfill tax |
3,828 |
- |
3,828 |
|
External sales |
17,821 |
22,260 |
40,081 |
|
Inter-segment sales |
1,616 |
- |
1,616 |
|
Total revenue |
19,437 |
22,260 |
41,697 |
|
|
|
|
|
|
Result |
|
|
|
|
Operating profit before exceptional costs |
4,923 |
1,234 |
6,157 |
|
Exceptional costs |
(996) |
- |
(996) |
|
Operating profit |
3,927 |
1,234 |
5,161 |
|
Finance charges |
|
|
(1,844) |
|
Share of loss of jointly controlled entity |
|
|
(292) |
|
Profit before tax |
|
|
3,025 |
|
Tax |
|
|
621 |
|
Profit for the year attributable to equity shareholders |
|
|
3,646 |
3 (Loss)/earningsper share
|
|
2009 |
2008 |
|
|
£'000 |
£'000 |
|
(Loss)/profit after tax for the purposes of basic and diluted earnings per share |
(54,552) |
3,646 |
|
Exceptional costs |
55,854 |
996 |
|
Profit after tax for the purposes of basic and diluted adjusted earnings per share |
1,302 |
4,642 |
|
|
|
|
|
|
Number |
Number |
|
Number of shares |
|
|
|
Weighted average number of shares for basic earnings per share |
72,976,669 |
65,488,892 |
|
Effect of dilutive potential ordinary shares from share options |
- |
- |
|
Weighted average number of shares for diluted earnings per share |
72,972,669 |
65,488,892 |
|
|
|
|
|
(Loss)/earnings per share |
|
|
|
Basic and diluted |
(74.8p) |
5.6p |
|
|
|
|
|
Adjusted earnings per share |
|
|
|
Basic and diluted |
1.8p |
7.1p |
4 Reconciliation of operating (loss)/profit to net cash generated from operating activities
|
|
2009 |
2008 |
|
|
£'000 |
£'000 |
|
Operating (loss)/profit |
(53,338) |
5,161 |
|
Other non-cash charge - goodwill tax adjustment |
- |
765 |
|
Goodwill impairment |
55,217 |
- |
|
Amortisation of intangible assets |
131 |
185 |
|
Depreciation |
3,697 |
4,239 |
|
After-care provisions |
79 |
148 |
|
Earnings before interest, tax, depreciation and amortisation (EBITDA) |
5,786 |
10,498 |
|
Profit on sale of property, plant and equipment |
(15) |
(13) |
|
Profit on sale of disposal of subsidiary |
(702) |
- |
|
Share-based payments |
60 |
76 |
|
Decrease/(increase) in inventories |
8 |
(42) |
|
Decrease in trade and other receivables |
634 |
32 |
|
(Decrease)/increase in trade and other payables |
(1,781) |
1,123 |
|
Decrease in provisions |
- |
(43) |
|
Cash generated from operations |
3,990 |
11,631 |
|
Interest paid |
(757) |
(2,031) |
|
Tax paid |
(199) |
(99) |
|
Net cash generated from operating activities |
3,034 |
9,501 |
5 Analysis of changes in net financial liabilities
|
|
31 December |
|
31 December |
|
|
2008 |
Cash flow |
2009 |
|
|
£'000 |
£'000 |
£'000 |
|
Cash and cash equivalents |
765 |
(430) |
335 |
|
Bank loans due within one year |
(4,400) |
4,400 |
- |
|
Bank loans due after one year |
(12,600) |
7,886 |
(4,714) |
|
Finance leases and hire purchase contracts |
(546) |
(1,054) |
(1,600) |
|
Net financial liabilities |
(16,781) |
10,802 |
(5,979) |
Related Shares:
AUG.L