Final Results
January 14 2004 - 1:00AM
UK Regulatory
RNS Number:2034U
Romag Holdings PLC
14 January 2004
ROMAG HOLDINGS PLC
Preliminary results for the year to 30 September 2003
Romag Holdings plc, a specialist manufacturer of glass and plastic composites
for security, transport and architectural applications, announces its
preliminary results for the year to 30 September 2003.
14 January 2004
ENQUIRIES
Romag Holdings plc
John Kennair, MBE, Chairman Tel: 01207 500000
Lyn Miles, Chief Executive Today only: 020 7554 1400
After today: 01207 500000
Gavin Anderson & Company
Neil Bennett/Ken Cronin Tel: 020 7554 1400
CHAIRMAN'S STATEMENT
The year to 30th September 2003 has seen further improvement in the performance
of the group.
The strategy of moving the business to higher margin products continues to
improve operating margins and the completion of the development of the new
photovoltaic products, which are on schedule to enter production in the spring,
should support this trend. In addition, the management spent considerable time
in the last quarter of the year preparing the group for flotation on AIM. This
was successfully achieved on 6th November raising new equity, after expenses, of
#7.2m.
Results
Turnover grew by 11% to #16.6m whilst net profit before tax improved by 46% to
#967k, both of which are slightly ahead of estimates given in the prospectus
issued in November.
Proposed final dividend
The directors recommend a final dividend of 1p per share payable on 27th
February 2004 to shareholders on the register of members at 30th September 2003.
Photovoltaics
The new equipment for the production of photovoltaics is scheduled to be
delivered in March and operational in April 2004. The indications from the
market place continue to be very positive leading the directors to be optimistic
that this new production line will add substantially to the future success of
the group.
Management and staff
I would like to express my most sincere thanks to everyone employed in the
group. The substantial improvement in the trading results whilst at the same
time preparing the group for flotation demonstrates the quality and dedication
of the entire team at Romag. Everyone has been involved in the flotation
process, whether in due diligence and verification or in the numerous factory
visits and product demonstrations; a notable achievement.
Outlook
The continued strength of the security market combined with the recognition of
Romag's unique expertise of bomb and ballistic materials, the introduction of
the photovoltaic production line in the spring and the strengthening of the
balance sheet following flotation give the directors confidence in the future
development and success of the group.
J M Kennair, MBE
Chairman
14 January 2004
GROUP PROFIT AND LOSS ACCOUNT
for the year to 30 September 2003
Notes 2003 2002
Unaudited Audited
#'000 #'000
Turnover 16,635 14,929
Cost of sales 12,764 11,483
--------- ---------
Gross profit 3,871 3,446
Distribution costs 454 347
Administrative expenses 1,829 1,877
Other operating income (25) (32)
--------- ---------
Operating profit 1,613 1,254
Interest payable 646 595
--------- ---------
Profit on ordinary activities before 967 659
taxation
Tax on profit on ordinary activities 4 (319) (324)
--------- ---------
Profit on ordinary activities after taxation 648 335
Minority interest - Equity - (47)
--------- ---------
Profit for the financial year attributable 648 288
to members of the parent company
Dividends 5 (448) (100)
--------- ---------
Profit retained for the financial year 200 188
========= =========
Earnings per share:
Basic 6 2.7p 1.4p
Diluted 6 2.7p 1.4p
Group statement of total recognised gains and losses
for the year to 30 September 2003
There are no recognised gains and losses other than the profit attributable to
the members of the parent company as reported above.
GROUP BALANCE SHEET
at 30 September 2003
2003 2002
Unaudited Audited
#'000 #'000
Fixed assets
Intangible assets 575 439
Tangible assets 11,221 11,824
--------- ---------
11,796 12,263
--------- ---------
Current assets
Stocks 2,963 2,952
Debtors 7,126 5,404
--------- ---------
10,089 8,356
Creditors: amounts falling due within one 7,871 7,023
year
--------- ---------
Net current assets 2,218 1,333
--------- ---------
Total assets less current liabilities 14,014 13,596
Creditors: amounts falling due after more than 5,080 5,460
one year
Provisions for liabilities and charges
Deferred taxation 945 806
Deferred income
Government grants 335 -
--------- ---------
7,654 7,330
Minority interests - equity - 1,295
--------- ---------
7,654 6,035
========= =========
Capital and reserves
Called up share capital 6,106 5,093
Capital reserve 965 965
Merger reserve 406 -
Profit and loss account 177 (23)
--------- ---------
Equity shareholders' fund 7,654 6,035
========= =========
Note: The group balance sheet does not include the funds raised in, or any other
impact of, the placing and admission to AIM which took place in November 2003.
GROUP STATEMENT OF CASH FLOWS
for the year to 30 September 2003
2003 2002
Unaudited Audited
Notes #'000 #'000
Net cash inflow from operating activities 7(a) 1,650 3,681
Returns on investments and servicing of 7(b) (737) (636)
finance
Taxation - (8)
Capital expenditure and financial investment 7(b) (565) (2,031)
Acquisitions and disposals 7(b) (10) -
Equity dividends paid (122) (100)
Financing 7(b) (753) 917
--------- ---------
(Decrease)/increase in cash (537) 1,823
========= =========
Reconciliation of net cash flow to movement in net debt
2003 2002
Unaudited Audited
Notes #'000 #'000
(Decrease)/increase in cash (537) 1,823
Cash used to repay capital element of finance
leases 955 713
Cash inflow from increase in loans (202) (4,598)
Cash used to repay loans - 2,968
--------- ---------
Change in net debt resulting from cash flows 216 906
New finance leases (223) (1,324)
--------- ---------
Movement in net debt (7) (418)
Net debt at 1 October 7(c) (6,093) (5,675)
--------- ---------
Net debt at 30 September 7(c) (6,100) (6,093)
========= =========
Note: The group statement of cash flows does not include the funds raised in, or
any other impact of, the placing and admission to AIM which took place in
November 2003.
NOTES
1. Company status
For the whole of the year to 30 September 2003 the company was a private limited
company. It re-registered as a public limited company on 20 October 2003 and was
admitted to the Alternative Investment Market (AIM) in November 2003.
2. Basis of preparation
The preliminary results have been prepared under the historical cost convention
and in accordance with applicable accounting standards. They have been prepared
on the basis of the accounting policies set out in the group's statutory
accounts for the year to 30 September 2002.
3. Basis of consolidation
The group results consolidate the accounts of Romag Holdings plc and all its
subsidiary undertakings drawn up to 30 September 2003.
4. Tax on profit on ordinary activities
a) The tax charge for the year is made up as follows:
2003 2002
Unaudited Audited
#'000 #'000
Current tax
UK corporation tax 180 8
---------- ---------
Total current tax (note 4(b)) 180 8
Deferred tax
Origination and reversal of timing differences 139 316
---------- ---------
Tax on profit on ordinary activities 319 324
========== =========
b) Factors affecting current tax charge
The current tax assessed on the profit on ordinary activities for the year is
lower than the standard rate of corporation tax in the UK of 30% (2002: 30%).
The differences are reconciled below
2003 2002
Unaudited Audited
#'000 #'000
Profit on ordinary activities before taxation 967 659
---------- ---------
Profit on ordinary activities before tax at 30% 290 198
(30%)
Expenses not deductible for tax purposes 88 81
(including amortisation of intangible fixed assets)
Capital allowances in excess of depreciation (194) (306)
Non taxable grant income (8) (10)
Other 4 45
---------- ---------
Total current tax (note 4(a)) 180 8
========== =========
5. Dividends
2003 2002
Unaudited Audited
#'000 #'000
Interim dividend paid during the year 122 100
Interim dividend paid since 30 September 2003 82 -
Final dividend proposed 244 -
---------- ---------
448 100
========== =========
The interim dividend of 1p per share was declared in July 2003, but was paid in
respect of the results for the year to 30 September 2002.
The final dividend of 1p per share is payable to shareholders on the register at
30 September 2003. Shares issued in the placing which accompanied the admission
to AIM in November 2003 will not rank for this dividend.
6. Earnings per share
The calculation of basic and diluted earnings per share is based on earnings of
#648,000 (2002: #288,000) and 24,424,620 (2002: 20,370,196) ordinary shares,
being the weighted average number of ordinary shares in issue during the year.
This calculation of earnings per share does not include the shares issued in, or
any other impact of, the placing and admission to AIM which took place in
November 2003.
7. Notes to the group statement of cash flows
(a) Reconciliation of operating profit to net cash inflow from
operating activities
2003 2002
Unaudited Audited
#'000 #'000
Operating profit 1,613 1,254
Depreciation 1,435 1,170
Amortisation of intangible fixed assets 124 77
Deferred government grants released (25) (32)
Increase in debtors (1,534) (867)
Increase in stocks (11) (50)
Increase in creditors 48 2,129
---------- ---------
Net cash inflow from operating activities 1,650 3,681
========== =========
(b) Analysis of cash flows for headings netted in the statement of cash flows
2003 2002
Unaudited Audited
#'000 #'000
Returns on investments and servicing of finance
Interest paid (614) (516)
Interest element of finance lease rentals payments (82) (80)
Dividend paid to minority interests (41) (40)
--------- ---------
(737) (636)
========= =========
2003 2002
Unaudited Audited
#'000 #'000
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (799) (1,840)
Payments to acquire intangible fixed assets (126) (191)
Receipts of government grants 360 -
--------- ---------
(565) (2,031)
========= =========
2003 2002
Unaudited Audited
#'000 #'000
Acquisitions and disposals
Costs associated with acquisition of minority (10) -
interests
========= =========
2003 2002
Unaudited Audited
#'000 #'000
Financing
New loans 202 4,598
Repayments of loans - (2,968)
Repayments of capital element of finance
leases and hire purchase contracts (955) (713)
--------- ---------
(753) 917
========= =========
(c) Analysis of changes in net debt
At 1 Cash Other At 30
October flow changes September
2002 2003
#'000 #'000 #'000 #'000
Overdraft - (537) - (537)
-------- -------- -------- --------
- (537) - (537)
Debt due after one year (4,598) (202) - (4,800)
Finance leases and hire purchase (1,495) 955 (223) (763)
contracts
-------- -------- -------- --------
(6,093) (216) (223) (6,100)
-------- -------- -------- --------
(d) Non-cash transactions
During the year, the company entered into finance leases in respect of assets
with a total capital value at the inception of the lease of #223,000 (2002:
#1,324,000).
8. Post balance sheet events
On 6 November 2003, 17,800,000 ordinary shares of 25p per share were placed at
45p per ordinary share and the company was admitted to the Alternative
Investment Market (AIM).
9. Report and accounts
The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. The audit report is yet to be
signed. The audited accounts will be mailed to shareholders shortly and will be
available from the registered office at Lope Hill Road, Leadgate Industrial
Estate, Lope Hill, Consett, County Durham, DH8 7RS.
The comparative financial information has been extracted from the 2002 statutory
accounts of Romag Holdings Limited (formerly SHK Limited). The 2002 accounts,
which have been filed with the Registrar of Companies, received an unqualified
audit report and did not contain a statement under Section 237(2) or (3) of the
Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
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