Interim Results
June 30 2003 - 9:08AM
UK Regulatory
RNS Number:9504M
Enneurope PLC
30 June 2003
30 June 2003
ENNEUROPE plc
("Enneurope" or "the Group")
Unaudited interim results for the six months ended 31 March 2002
Enneurope, an AIM listed aggregates group with operations in North West Poland,
is pleased to announce its interim results for the six months ended 31 March
2003.
* Turnover of #166,000 and loss after tax of #425,000.
* A number of acquisitions are at an advanced stage which
will take the Group into the next phase of development.
* Recommended offer made for NOIT together with #2.75
million placing which is aimed at unlocking future capital to facilitate our
stategy.
Vaughan McLeod, Chairman, commented:
"The completion of potential acquisitions remains a key priority and with
performance improvements beginning to show returns, together with a strengthened
Polish management team in place, I believe we are on track to deliver our
strategic objectives.
The NOIT offer, if successful, will unlock future capital to facilitate
completion of our objective of gaining a 25% market share of North West Poland
by acquisition."
30 June 2003
Enquiries:
Enneurope 01332 694 444
Vaughan McLeod, Chairman
Chairman's statement
Financial and Operating Review
During the six month period to 31 March 2003, trading was affected by the severe
winter conditions in Poland which brought business to a virtual standstill. The
Group incurred an operating loss in the period of #426,000 on turnover of
#166,000. This loss included costs associated with our acquisition programme.
We are now beginning to benefit from production improvements at Moryn quarry,
resulting from the new screening and crushing equipment and conveyor system
installed last year. This has increased our gravel production from this unit and
will have a consequential effect on Moryn's profitability as the contribution
per tonne from gravel sales is some six times greater than that of sand. In
April, we were granted a new concession for sand and gravel extraction which
will enable us to extract minerals for a further 15 years.
The first three multi-purpose trucks have now been delivered and are already
showing improvements in truck utilisations together with associated cost
reductions. Our ability to utilise the same vehicle to deliver either concrete
or sand and gravel throughout the day vastly improves the performance of our
transport.
Concrete sales from both Chojna and Szczecin were slow during the period due to
the prolonged cold weather. Since the end of the period, volumes have shown
signs of improvement and further potential orders are in the pipeline.
We have continued to work on a number of acquisitions, including both concrete
and quarrying businesses, which will enhance our market position. We have
recently appointed a finance director for the Polish subsidiary which has
strengthened our management team and, together with planned expenditure on
information technology, will enable us to expand our business at minimal
additional cost.
Investment
On 24 June 2003, the boards of Enneurope and New Opportunities Investment Trust
plc (NOIT) announced that they had reached agreement on the terms of the
recommended offers by Altium Capital on behalf of Enneurope for the entire
issued and to be issued share capital and warrants of NOIT, together with a
placing by Enneurope to raise approximately #2.75 million before expenses. This
placing is conditional upon the offers for NOIT being successful.
Outlook
Poland continues to progress towards joining the EU in mid 2004. It is pleasing
to note the overwhelming majority voting in favour of joining the EU in the
recent Polish referendum.
The completion of potential acquisitions remains a key priority and with
performance improvements beginning to show returns, together with a strengthened
Polish management team in place, I believe we are on track to deliver our
strategic objectives.
The NOIT offer will, if successful, release future capital to facilitate
completion of our objective of gaining a 25% market share of North West Poland
by acquisition.
Vaughan McLeod
Chairman
30 June 2003
Consolidated Profit and Loss Account
for the six months ended 31 March 2003
Six months Six months Nine months
ended ended ended
31 March 30 June 30 September
2003 2002 2002
unaudited unaudited audited
#'000 #'000 #'000
Group turnover 166 108 229
Cost of sales (157) (90) (197)
---------------- ---------------- -----------------
Gross profit 9 18 32
Net operating expenses (435) (166) (351)
---------------- ---------------- -----------------
Operating loss (426) (148) (319)
Provision against - - (267)
investment
---------------- ---------------- -----------------
Loss on ordinary (426) (148) (586)
activities before
interest
Net interest receivable/ 1 (14) 3
(payable)
---------------- ---------------- -----------------
Loss on ordinary (425) (162) (583)
activities before
taxation
Tax on ordinary - - -
activities
---------------- ---------------- -----------------
Retained loss for the (425) (162) (583)
financial period
---------------- ---------------- -----------------
Loss per ordinary share - (5.33p) (3.77p) (11.93p)
basic and diluted
(restated see note 2)
================ ================ =================
Consolidated Statement of Total Recognised Gains and Losses
for the six months ended 31 March 2003
Six months Six months Nine months
ended ended ended
31 March 30 June 30 September
2003 2002 2002
unaudited unaudited audited
#'000 #'000 #'000
Loss for the financial (425) (162) (583)
period
Exchange movements 7 (39) (62)
---------------- ---------------- ----------------
Total recognised losses for (418) (201) (645)
the period
================ ================ ================
Consolidated Balance Sheet
as at 31 March 2003
31 March 30 June 30 September
2003 2002 2002
unaudited unaudited audited
#'000 #'000 #'000
Fixed assets
Intangible assets 554 552 569
Tangible assets 1,231 856 1,041
Investments 621 10 621
--------------- --------------- ---------------
2,406 1,418 2,231
--------------- --------------- ---------------
Current assets
Stocks 35 10 11
Debtors 243 49 206
Cash at bank and in hand 23 1,241 678
--------------- --------------- ---------------
301 1,300 895
Creditors: amounts falling due (323) (345) (324)
within one year -------- -------- --------
Net current (liabilities)/ (22) 955 571
assets
--------------- --------------- ---------------
Total assets less current 2,384 2,373 2,802
liabilities
Provisions for liabilities and (136) (141) (136)
charges
--------------- --------------- ---------------
Net assets 2,248 2,232 2,666
=============== =============== ===============
Capital and reserves
Called up share capital 798 598 798
Share premium account 2,513 1,835 2,513
Profit and loss account (1,063) (201) (645)
--------------- --------------- ---------------
Equity shareholders' funds 2,248 2,232 2,666
=============== =============== ===============
Consolidated Cash Flow Statement
for the six months ended 31 March 2003
Six months Six months Nine months
ended ended ended
31 March 30 June 30 September
2003 2002 2002
unaudited unaudited audited
#'000 #'000 #'000
Operating loss (426) (148) (319)
Depreciation and 196 25 56
amortisation
Working capital (74) 120 (51)
movements
---------------- ---------------- ----------------
Net cash outflow from (304) (3) (314)
operating activities
Returns on investments 1 1 3
and servicing of
finance
Taxation (5) (3) 7
Capital expenditure and (365) (60) (310)
financial investment
Acquisitions and (120) (1,125) (1,139)
disposals
---------------- ---------------- ----------------
Net cash outflow before (793) (1,190) (1,753)
financing
Financing - 1,483 1,483
---------------- ---------------- ----------------
(Decrease)/increase in (793) 293 (270)
cash in the period
================ ================ ================
Reconciliation of Net Cash Flow to Movement in Net Debt
for the six months ended 31 March 2003
Six months Six months Nine months
ended ended ended
31 March 30 June 30 September
2003 2002 2002
unaudited unaudited audited
#'000 #'000 #'000
(Decrease)/increase in (793) 293 (270)
cash in the period
---------------- ---------------- ----------------
Movement in net funds (793) 293 (270)
in the period
Net funds at the 678 948 948
beginning of period
---------------- ---------------- ----------------
Net (debt)/funds at the (115) 1,241 678
end of period
================ ================ ================
Notes to the Interim Financial Statements
for the six months ended 31 March 2003
1. The Group has one class of business being the quarrying, production and
sale of aggregates and related activities in Central Europe.
2. Basic and diluted loss per ordinary share are calculated by dividing
the loss attributable to ordinary shareholders of #425,000 (June 2002:
#162,000, September 2002: #583,000) by the weighted average number of
ordinary shares in issue during the period of 7,980,000 (June 2002:
4,302,680, September 2002:4,888,223) The weighted average number of
shares in prior periods has been amended to reflect the share
consolidation on 6 December 2002.
3. During the prior period, the Company allotted 39,900,000 ordinary
shares of 0.5 pence each at 2.2 pence each in consideration for 877,800
new redeemable ordinary shares of 5.0 pence each and a warrant over
175,560 new redeemable ordinary shares of 5.0 pence each in New
Opportunities Investment Trust plc. At 30 September 2002, the directors
made a provision amounting to 267,000 in respect of this investment to
reflect their estimate of its net realisable value.
4. On 6 December 2002, the share capital of the Company was consolidated
on the basis of 1 new ordinary share of 10 pence each for every 20
existing ordinary shares of 0.5 pence each. Consequently, the issued
share capital of the Company now consists of 7,980,000 ordinary shares
of 10 pence each.
5. The financial information for the six months ended 31 March 2003 and
the comparative figures for the six months ended 30 June 2002 have not
been audited or reviewed. The unaudited financial information is stated
on a basis of accounting policies and presentation consistent with that
adopted in the most recent audited consolidated financial statements
for the period ended 30 September 2003. The summarised financial
information in respect of the period ended 30 September 2002 does not
constitute financial statements within the meaning of section 240 of
the Companies Act 1985. The financial statements for that period have
been reported on by the Company's auditor and delivered to the
Registrar of Companies. The audit report was unqualified and did not
contain a statement under section 237(2) or section 237(3) of the
Companies Act 1985.
6. Copies of the Interim Report are available from the Company's
Registered Office, Breedon Hall, Breedon on the Hill, Derby, DE73 1AN.
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