Interim Results
September 10 2003 - 2:00AM
UK Regulatory
RNS Number:5735P
Mercury Recycling Group PLC
10 September 2003
MERCURY RECYCLING GROUP PLC
INTERIM REPORT FOR THE PERIOD ENDING 30 JUNE 2003
Chairman's Statement
I am pleased to present the Group's report for the 6 months to 30 June 2003.
Shareholders can see that sales growth in MRL, the only trading subsidiary,
continues at a stronger pace. For the six months to 30 June 2003 turnover was
#484,000 compared with #365,000 for the comparable six months to 30 June 2002,
an increase of over 30%.
The Group's operating profit, before goodwill amortisation, was #73,000 against
a loss of #38,000 in the first half of 2002. The cash position can be seen to
have improved again, with increased profits, and tight financial controls. Cash
in the bank at 30 June was #333,000 compared with #266,000 at the interim stage
of last year, and #249,000 at the year end.
As I said in my statement in the Report and Accounts for the year ended 31
December 2002, these excellent figures were produced before the EU Directive on
Waste Electrical and Electronic Equipment "WEEE" is approved. Our best advice
remains that the appropriate legislation will be agreed later this year,
although a little time will have to be provided for it then to become effective.
Action to substantially limit the number of landfill sites that can be used
for disposal of lamps, has already started. All this is helping to bring in
major new customers.
I indicated at the year end, that discussions with a number of companies with a
view to merger or acquisitions were being held. These have continued and other
companies have also been identified that would enable us to take advantage of
the substantial growth taking place in the recycling field. I will of course
keep shareholders informed as and when a firm proposal has been agreed.
The Rt Hon The Lord Barnett PC
CHAIRMAN
MERCURY RECYCLING GROUP PLC
GROUP PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30 JUNE 2003
Mercury Total Months
Recycling ended
Mercury Group PLC 30.6.03 6 Months
Recycling ended
Limited 30.6.02 Year ended
31.12.02
#'000 #'000 #'000 #'000 #'000
Turnover 484 - 484 365 770
Cost of Sales (45) - (45) (39) (84)
Gross Profit 439 - 439 326 686
Administrative expenses (321) (45) (366) (368) (715)
Restructuring and acquisition costs (non
recurring) - - - - (8)
Other operating income - - - 4 6
Group operating profit / (loss) before
goodwill amortisation 118 (45) 73 (38) (31)
Goodwill amortisation (82) (82) (165)
Group operating loss (9) (120) (196)
Interest receivable 3 4 7
Interest payable (3) (3) (6)
Loss on ordinary activities before (9) (119) (195)
taxation
Taxation - - -
Loss on ordinary activities after
taxation retained for the period (9) (119) (195)
Earnings per share : Basic (pence) (0.04) (0.47) (0.78)
Diluted (pence) (0.04) (0.47) (0.78)
1 - Earnings per share
The calculation of basic earnings per share is based upon the loss for the
period and the weighted-average number of 25,118,000 (2002 - first half -
25,118,000) shares in issue during the period.
The diluted earnings per share is based upon the loss for the period and the
number of shares in issue as follows:
6 months to 6 months to Year to
30.6.03 30.6.02 31.12.02
000s 000s 000s
Weighted-average number of shares 25,118 25,118 25,118
Dilution - share options in issue - - -
25,118 25,118 25,118
GROUP BALANCE SHEET
AS AT 30 JUNE 2003
As at As at As at
30.6.03 30.6.02 31.12.02
#'000 #'000 #'000
Fixed assets
Tangible assets 260 279 264
Intangible assets 2,940 3,105 3,022
3,200 3,384 3,286
Current assets
Debtors 154 130 156
Cash at hand and in bank 333 266 249
487 396 405
Creditors: amounts due within one year (105) (103) (108)
Net current assets 382 293 297
Creditors: amounts due after more (109) (117) (101)
than one year
Accruals and deferred income - (2) -
Total assets less liabilities 3,473 3,558 3,482
Capital and reserves
Called up share capital 2,512 2,512 2,512
Share premium account 1,523 1,523 1,523
Merger reserve (111) (111) (111)
Profit and loss account (451) (366) (442)
Equity shareholders' funds 3,473 3,558 3,482
1. Basis of preparation
The interim financial information has been prepared on the basis of the
accounting policies set out in the accounts for the year ended 31 December 2002.
The interim financial information is unaudited. The financial information does
not constitute statutory accounts as defined by section 240 of the Companies Act
1985. Full accounts of the company for the year ended 31 December 2002 on which
the Auditors gave an unqualified report, have been delivered to the Registrar of
Companies. These accounts consolidate the accounts of Mercury Recycling Group
Plc and all of its wholly owned subsidiaries. The goodwill arising on the
acquisition of Mercury Recycling Limited has been capitalised and amortised over
the Directors' estimate of its useful life.
2. Copies of report
Copies of this interim statement will be despatched to shareholders and will be
available to the public at the Registered Office, Unit G, Canalside North, John
Gilbert Way, Trafford Park, Manchester, M17 1DP.
GROUP CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2003
6 months 6 Months Year
ended ended ended
30.6.03 30.6.02 31.12.02
#'000 #'000 #'000
Net cash outflow from operating activities 85 (11) (27)
Returns on investment and servicing of finance
Interest paid (3) (3) (5)
Interest received 3 4 7
Capital expenditure and financial investment
Receipts from sale of tangible assets - 4 4
Purchase of tangible fixed assets - (3) (2)
85 (9) (23)
Financing
Repayment of loans - (117) (116)
Capital element of hire purchase (1) - (4)
Decrease in cash in period 84 (126) (143)
Reconciliation of operating loss to net cash outflow from operating
activities 6 Months 6 Months Year
ended ended ended
30.6.03 30.6.02 31.12.02
#'000 #'000 #'000
Operating loss (9) (120) (196)
Depreciation 16 18 33
Amortisation of goodwill 82 82 165
Loss on disposal of assets 2 3 3
Decrease in stocks - 4 4
Decrease / (increase) in debtors 2 - (26)
Increase in creditors (3) 6 (4)
(Increase) / decrease accruals (5) (4) (6)
Net cash outflow from operating activities 85 (11) (27)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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