Final Results
April 03 2003 - 1:00AM
UK Regulatory
RNS Number:5791J
UCM Group PLC
03 April 2003
Embargoed until 07.00 3 April 2003
UCM Group PLC
Preliminary Results for the Year Ended 31 December 2002
UCM, the leading provider of speciality fused minerals, today
announces its preliminary results for the year ended 31
December 2002.
Financial Highlights
Year Year
ended ended
# Millions December December
2002 2001
Turnover 33.7 33.4
Profit before tax - before exceptional items 2.8 3.3
Earnings per share - before exceptional items 8.1p 9.9p
Total dividend 7.5p 7.3p
Key Highlights
- Major capital expenditure programme virtually complete - a
record #4.6m invested
- Upturn showing in magnesia and advanced ceramic material
sales but a disappointing year for standard zirconia
- Magnesia operations in US concentrated in Alabama
- Joint venture in China came on stream towards end of the year
- Zirconia production and processing to be concentrated in
Tennessee
John Gordon, Chairman, said:
"The highlight of 2002 has been the Group's capital investment
in its future, to focus production of our three core products
at dedicated, cost effective plants.
"In the current world environment, the trading outlook is
unusually uncertain but it will be disappointing if the
improvements made in 2002 do not enable the Group to achieve a
satisfactory performance in 2003."
- Ends -
Enquiries:
UCM Group PLC (On the day) 020 7067 0700
John Gordon, Chairman (Thereafter) 01785 223122
Bob Hughes, Chief Executive
Melvyn Fookes, Group Finance Director
Weber Shandwick Square Mile 020 7067 0700
Terry Garrett or Alex White or Rachel Taylor
Embargoed until 07.00 3 April 2003
UCM Group PLC
Preliminary Results for the Year Ended 31 December 2002
UCM, the leading provider of speciality fused minerals, today
announces its preliminary results for the year ended 31
December 2002.
CHAIRMAN'S STATEMENT
The highlight of the past year was the virtual completion of a
major capital expenditure programme as the Group invested a
record amount to achieve its strategic repositioning. World
markets, however, remain mixed with considerable competition
in some areas although there has been a modest improvement
from the depressed level of the second half of 2001.
Pre-tax profits for the year amounted to #2.8 million before
exceptional items (2001: #3.3 million) on a turnover of #33.7
million (2001: #33.4 million). Earnings per share for the
year were 8.1p before exceptionals, compared with 9.9p in the
previous year.
Dividends
The Board is recommending an unchanged final dividend of 5.0p
per share, which makes a total for the year of 7.5p (2001:
7.3p), an increase of 2.7 per cent.
Trading
Sales of electrical grade magnesia powders in both Europe and
North America improved during the year and the Group's United
Kingdom magnesia operation, based in Hull, was able to
increase turnover, although profits were restrained by the
strength of sterling. In the United States, magnesia
operations have now been concentrated entirely at the Muscle
Shoals Minerals Inc. plant in Alabama, where good sales into
the domestic North American market were offset by a fall in
Asia. The joint venture in China with Yingkou Tianhu Magnesia
Industries Co. Limited came on stream towards the end of the
year and it is hoped that this will enable the Group to
recover market share in Asia during 2003.
Sales of zirconia powders to the steel making sector were down
on the previous year and market share has been lost in the
face of intense competition from producers in weaker currency
areas. The concentration of zirconia production and
processing at Greeneville, Tennessee, and the forthcoming
closure of standard zirconia processing at Stafford, in
respect of which exceptional costs of #199,000 have been
incurred, will reduce costs and place the Group in a better
position to meet this competition.
Advanced ceramic materials have had a good year with sales up
by 14 per cent. Demand from the automotive sector is largely
responsible for this, with sales of material for use in oxygen
sensors recovering and sales of micronised monoclinic zirconia
for use in brake pads continuing to improve.
Staff
As always, the thanks of shareholders and directors go to all
the staff, who in many parts of the Group have had to cope
with major organisational change brought about by the capital
expenditure programme implemented during the year.
Outlook
Investments made in the business during the year should
improve efficiency and reduce unit costs while a more normal
capital expenditure programme in 2003 should increase the
Group's free cash flow. In the current world environment, the
trading outlook is unusually uncertain but it will be
disappointing if the improvements made in 2002 do not enable
the Group to achieve a satisfactory performance in 2003.
2 April 2003
- Ends -
Enquiries:
UCM Group PLC (On the day) 020 7067 0700
John Gordon, Chairman (Thereafter) 01785 223122
Bob Hughes, Chief Executive
Melvyn Fookes, Group Finance Director
Weber Shandwick Square Mile 020 7067 0700
Terry Garrett or Alex White or Rachel Taylor
UCM Group PLC
Consolidated Profit and Loss Account
for the year ended 31 December 2002
Continuing Continuing
Operations Operations
2002 2001
As restated
#000 #000
Turnover 33713 33439
Cost of sales
(including exceptional costs of #199,000) (25741) (24756)
_______ _______
Gross profit 7972 8683
Distribution costs (275) (282)
Administrative expenses (4644) (4689)
_______ _______
Profit on ordinary activities before interest 3053 3712
Interest payable and similar charges (435) (375)
_______ _______
Profit on ordinary activities before taxation 2618 3337
Taxation on ordinary activities (817) (958)
_______ _______
Profit for the financial year 1801 2379
Dividends paid and proposed (1795) (1747)
_______ _______
Retained profit for the financial year 6 632
_______ _______
Earnings per ordinary share
Basic and diluted 7.5p 9.9p
_______ _______
Before exceptional items
Basic and diluted 8.1p 9.9p
_______ _______
UCM Group PLC
Consolidated Balance Sheet
as at 31 December 2002
2002 2001
As As
restated restated
#000 #000 #000 #000
Fixed assets
Intangible assets 404 136
Tangible assets 17244 15449
_______ _______
17648 15585
Current assets
Stocks 7768 7949
Debtors 6942 7537
Cash at bank and in hand 145 1179
_______ _______
14855 16665
Creditors: amounts falling
due within one year (12882) (11675)
Net current assets 1973 4990
_______ _______
Total assets less current
liabilities 19621 20575
Creditors: amounts falling
due after more than one year (1172) (982)
Provisions for liabilities
and charges (1767) (1686)
_______ _______
Net assets 16682 17907
_______ _______
Capital and reserves
Called up share capital 1196 1196
Share premium account 8399 8399
Capital redemption reserve 218 218
Revaluation reserve 1802 1922
Profit and loss account 5067 6172
_______ _______
Shareholders' funds - Equity 16682 17907
_______ _______
UCM Group PLC
Consolidated Cash Flow Statement
for the year ended 31 December 2002
2002 2001
#000 #000 #000 #000
Net cash inflow from
operating activities 4784 5313
Returns on investments and
servicing of finance
Interest paid (425) (368)
Taxation
UK corporation tax (paid) (670) (1185)
Overseas tax (paid) (130) (190)
_______ _______
(800) (1375)
Capital expenditure
Payments for
intangible fixed assets (224) -
Payments for tangible
fixed assets (4397) (3191)
_______ _______
(4621) (3191)
Equity dividends paid (1795) (1746)
_______ _______
Cash (outflow) before financing (2857) (1367)
Financing
Issue of ordinary share capital - 7
New loans 532 -
Repayment of amounts borrowed (231) (201)
Short term borrowings 1477 2103
_______ _______
Net cash inflow/ from financing 1778 1909
_______ _______
(Decrease)/increase in cash in
the year (1079) 542
_______ _______
UCM Group PLC
Segmental Information
Continuing Continuing
Operations Operations
2002 2001
As restated
#000 #000
Turnover can be analysed as follows:
by destination
United Kingdom 2877 3342
North America 9852 9726
Continental Europe 13237 11669
Central and South America 560 488
Asia 6311 7284
Rest of World 876 930
_______ _______
33713 33439
_______ _______
by origin
United Kingdom 19208 19121
North America 14505 14318
_______ _______
33713 33439
_______ _______
by market
Domestic & Industrial Appliances 19759 19175
Steelmaking 5894 7073
Automotive 5830 5147
Investment Casting (61) 479
Engineered Ceramics 957 1100
Other Industrials 1334 465
_______ _______
33713 33439
_______ _______
Net assets can be analysed as follows:
by origin
United Kingdom 15358 16664
North America 13739 10964
_______ _______
29097 27628
Non Operating Liabilities (12415) (9721)
_______ _______
16682 17907
_______ _______
by market
Domestic & Industrial Appliances 15501 15315
Steelmaking 4363 5983
Automotive 6885 4744
Investment Casting 25 550
Engineered Ceramics 845 591
Other Industrials 1478 445
_______ _______
29097 27628
Non Operating Liabilities (12415) (9721)
_______ _______
16682 17907
_______ _______
Non operating liabilities include net cash/(borrowings),
taxation balances and dividends payable.
Results
In the opinion of the Directors the disclosure of results by
market and geographical origin would be seriously prejudicial
to the interests of the Group.
UCM Group PLC
NOTES:
1. The financial information set out above does not
constitute the Company's statutory accounts for the years
ended 31 December 2002 and 2001 within the meaning of
section 240 of the Companies Act 1985 but is derived from
those accounts. Statutory accounts for 2001 have been
delivered to the Registrar of Companies whereas those for
2002 will be delivered following the Company's annual
general meeting. The auditors have reported on those
accounts; their reports were unqualified and did not
contain a statement under section 237(2) or (3) of the
Companies Act 1985.
2. Earnings per ordinary share is calculated with reference
to the profit attributable to ordinary shareholders of
#1,801,000 (2001: #2,379,000) and the weighted average
number of ordinary shares in issue during the year of
23,929,307 (2001: 23,924,263). There is no dilution in
the earnings per share in both the reporting period and
the comparative year of 2001.
3. If approved a final dividend of 5.0p (net) per ordinary
share will be paid on 29th May 2003 to shareholders on
the register at 2nd May 2003.
4. The annual general meeting will be held on 22nd May 2003,
at the offices of Hammonds, Rutland House, 148 Edmund
Street, Birmingham B3 2JR.
5. Copies of the 2002 Report and Accounts will be sent to
shareholders in due course. Further copies will be
available from the Company's registered office at Doxey
Road, Stafford ST16 1DZ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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