Interim Results
August 29 2003 - 2:00AM
UK Regulatory
RNS Number:1496P
Chieftain Group PLC
29 August 2003
CHIEFTAIN GROUP PLC
INTERIM RESULTS STATEMENT
6 Months ended 30 June 2003
CHAIRMANS STATEMENT
As reported in my statement in the 2002 full year report and accounts the
depressed economic climate in the United Kingdom has discouraged clients
committing to significant capital projects. Although these trading conditions
continue the Groups underlying trading has been both steady and profitable.
However the trading results have been adversely affected by the crystallisation
of a loss following the commercial settlement of a large contract which was
physically completed in early 2002. This was reported on in some detail in our
trading up-date released on 7th July 2003.
Trading
The Group is maintaining a very healthy order book with a closing value of #27
million at the half year.
Turnover during the first half was #4.8 million compared with #7.5 million in
first half 2002. Settlement of the contract referred to above will require a
final invoice in the value of #1.9 million to be raised and this has been
deferred to the second half of 2003. Additionally there will be significant
invoicing on another major contract which was completed in the first half of
2003 and is now awaiting final account settlement.
We report a first half pre-tax loss of #722,000 compared to a first half 2002
profit of #372,000. This loss takes full account of the loss incurred on the
contract referred to in the first section of this report.
Cash
As has previously been reported there has been a heavy demand on our cash
resources to finance the work in progress in the past two years. However we are
pleased to report that the cash position will be greatly improved following the
receipt of the #1.9 million from the major contract settlement and we anticipate
minimal use of our bank overdraft facility at the year end.
Unsecured loans totalling #600,000 were made by three founding Directors of the
Company, as referred to in my previous statement. These loans were guaranteed
until the end of April 2004. Each of these Directors has since indicated their
willingness to leave the loans in place beyond the end of April 2004 if the
funds are required by the Company to finance future work in progress.
Dividends
The Board have confidence in the future of the Company and its ability to
continue to trade profitably and has decided to pay an unchanged interim
dividend of 1.0p per ordinary share on the 24th October 2003 to the shareholders
on their register on the 12th September 2003.
Outlook
Due to recent demands on its cash resources the Company has been cautious with
regard to accepting new business. Now that the major contract settlement has
been achieved there will be an emphasis on winning new work to supplement the
order book taking the Company back onto the track of profitable expansion.
Profit and Loss Account
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 June 2003 30 June 2002 31 Dec 2002
#,000 #,000 #,000
Turnover:
Continuing Operations 4,823 7,548 14,778
Operating (Loss)/Profit :
Continuing Operations (663) 432 907
Net Interest Payable (59) (60) (133)
(Loss)/Profit on ordinary activities before taxation (722) 372 774
Taxation 217 (112) (221)
(Loss)/Profit on ordinary activities after taxation (505) 260 553
(Loss)/Earnings per share - basic (5.81)p 2.98p 6.35p
- diluted (5.81)p 2.97p 6.33p
Dividend per share 1.0p 1.0p 2.5p
Statement of Total Recognised Gains and Losses
(Loss)/Profit (505) 260 553
Exchange rate adjustments offset in reserves - - 159
Total recognised (loss)/gain (505) 260 712
Consolidated Balance Sheet
Unaudited Unaudited Audited
as at as at as at
30 June 2003 30 June 2002 31 Dec 2002
#,000 #,000 #,000
FIXED ASSETS
Tangible assets 799 850 816
CURRENT ASSETS
Stocks and work in progress 3,255 2,732 3,847
Debtors 2,688 2,931 2,926
Cash at bank and in hand 5 - 213
5,948 5,663 6,986
CREDITORS
Amounts falling due
within one year (5,236) (4,617) (5,702)
NET CURRENT ASSETS 712 1,046 1,284
TOTAL ASSETS LESS
CURRENT LIABILITIES 1,511 1,896 2,100
CREDITORS
Amounts falling due
after more than one year (64) (176) (61)
1,447 1,720 2,039
CAPITAL AND RESERVES
Called up share capital 436 436 436
Share premium account 420 420 420
Profit and loss account 591 864 1,183
1,447 1,720 2,039
Consolidated Cash flow Statement
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
30 June 2003 30 June 2002 31 Dec 2002
#,000 #,000 #,000
NET CASH (OUTFLOW)/INFLOW FROM
OPERATING ACTIVITIES (903) (128) 659
RETURNS ON INVESTMENTS
AND SERVICING OF FINANCE
Interest received - - 1
Interest paid (54) (53) (120)
Interest element of finance
lease rental payments (5) (7) (14)
(59) (60) (133)
TAXATION
Corporation tax paid (67) (8) (171)
Corporation tax refund - 10 10
(67) 2 (161)
CAPITAL EXPENDITURE
Purchase of tangible fixed assets (24) (2) (24)
Disposal of tangible fixed assets 6 4 15
(18) 2 (9)
EQUITY DIVIDENDS PAID (131) (131) (218)
(1,178) (315) 138
FINANCING
Capital element of finance
lease rental payments (58) (72) (139)
Increase in loans - - 600
(58) (72) 461
DECREASE IN CASH (1,236) (387) 599
Notes:
1. The interim dividend is payable on 24th October to those shareholders on the
Company's Register on 12 September 2003.
2. The total cost of the interim dividend is #87,130 (2002 - #87,130) based on
8,713,000 ordinary shares in issue (2002 - 8,713,000).
3. Basic earnings per share is based upon the loss/profit on ordinary activities
after taxation and 8,713,000 (2002 - 8,713,000) ordinary shares (the weighted
average number of shares in issue during the period).
4. Diluted earnings per share is based upon the loss/profit on ordinary
activities after taxation and 8,729,333 (2002 - 8,760,043) ordinary shares (the
weighted average number of shares in issue during the period plus the weighted
average number of dilutive options in issue during the period. Dilutive options
are the difference between the number of shares that would have been issued at
the option price and the number of shares that would have been issued at fair
value).
5. The results for the year to 31 December 2002 summarised above have been
extracted from the Company's full accounts for that year which received an
unqualified auditor's report and have been filed with the Registrar of
Companies.
This information is provided by RNS
The company news service from the London Stock Exchange
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