RNS Number:2734M
Ensor Holdings PLC
13 June 2003
ENSOR HOLDINGS PLC
PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 MARCH 2003
CHAIRMAN'S STATEMENT
Highlights
- Operating profit before goodwill up to over #1m
- Earnings per share up to 1.8p
- Final dividend up 12.5%
- Prospects encouraging
Results
Your Company has had a much better year, increasing sales to #20.4m (2002 -
#17.1m) and operating profit to #1.01m (2002 - #88,000) before amortisation of
goodwill. Interest payable increased to #170,000 (2002 - #59,000) and we have a
tax charge of #226,000 (2002 - #20,000), leaving a net profit of #520,000 as
against a negative of #144,000 for the previous year.
Trading
Progress has been achieved after improved company results, as follows:
a) Specialised building materials at Ensor Building Products Ltd reviewed their
product portfolio, giving better margins.
b) An excellent result from newly acquired CMS Tools Ltd, selling specialised
tools to the building industry.
c) A good result from our company selling security fencing and allied products,
Hawkins-Salmon Ltd.
d) An improved result from our electronic and electric motors companies, Ellard
Ltd and Powerplus (UK) Ltd.
e) A maintained profit from SRC Ltd, manufacturers of rubber crumb, a product
for flooring and sports facilities.
f) An up to budget profit from our commercial door companies, Lowland Ensor
Doors Ltd and OSA Door Parts Ltd.
Prospects
The budgets for all our Companies for the coming year are progressive and sound
plans are in hand for further improvements. We are working to increase the
results in all our existing companies and, as this is achieved, we will again be
looking for suitable acquisitions to enhance our shareholder value, although we
are cautious, bearing in mind that there is a partial recession which inevitably
will put pressure on order books and our margins. We are fully aware of this and
intend to manage through it.
Costs such as National Insurance and insurance premiums have increased
substantially but we are controlling these and our cash flow and stock levels.
Pensions
We are assured by our Pension Fund advisers that, having increased contributions
to the fund this year, our current level of contributions is satisfactory.
Financial
Shareholders' funds have again strengthened to in excess of #6.75m, which
equates to approximately 23.2p per share. Our return on capital has been
substantially improved, though in achieving this our bank borrowing has, of
necessity, temporarily increased our gearing to 51% at the end of the year.
Overall, our bank situation remains satisfactory.
Dividends
Our policy regarding dividends is to be progressive but prudent. Bearing in mind
the foregoing, we believe an increase in the final dividend is appropriate. We
are, therefore, increasing this to 0.45p (2002 - 0.4p) per share, making a total
of 0.75p (2002 - 0.7p) per share for the full year, an increase of 7.1%. Subject
to approval at the Annual General Meeting, the final dividend will be paid on 8
August 2003 to shareholders on the Register at 4 July 2003. The dividends for
this year are covered some 2.3 times.
Staff
The results are achieved by an excellent and dedicated management and staff and,
again, I wish to thank them all for their continued, successful contributions.
Ken Harrison TD
Chairman
13 June 2003
AUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2003
2003 2003 2002 2002
#'000 #'000 #'000 #'000
Turnover
Continuing operations 18,043 16,734
Acquisitions 2,390 -
---------- ----------
20,433 16,734
Discontinued - 319
operations
---------- 20,433 ---------- 17,053
Cost of sales (14,803) (12,851)
---------- ----------
Gross profit 5,630 4,202
Other operating income (4,714) (4,037)
and charges
Operating profit
Continuing operations 565 167
Acquisitions 351 -
---------- ----------
916 167
Discontinued - (2)
operations
---------- 916 ---------- 165
Exceptional items
Profit on disposal of - 62
discontinued
operations
Goodwill previously - (508)
eliminated
Profit on disposal of - 216
fixed assets
---------- - ---------- (230)
---------- ----------
Profit/(loss) on 916 (65)
ordinary activities
before interest
Interest payable (170) (59)
---------- ----------
Profit/(loss) on 746 (124)
ordinary activities
before taxation
Taxation (226) (20)
---------- ----------
Profit/(loss) for the 520 (144)
financial year
Dividends (219) (204)
---------- ----------
Retained profit/(loss) 301 (348)
for the year
---------- ----------
Earnings per share - 1.8p (0.5p)
basic and diluted
---------- ----------
Dividends per share 0.75p 0.7p
---------- ----------
Statement of total recognised gains and losses
Reported profit/(loss) 520 (144)
for the financial year
Prior year adjustment - 83
---------- ----------
Total recognised gains 520 (61)
and losses for the
year
---------- ----------
AUDITED BALANCE SHEETS
at 31 March 2003
Group Group Company Company
2003 2002 2003 2002
#'000 #'000 #'000 #'000
Fixed assets
Goodwill 1,875 748 - -
Tangible assets 4,277 3,546 1,589 1,643
Investments - - 9,082 7,794
---------- ---------- ---------- ----------
6,152 4,294 10,671 9,437
---------- ---------- ---------- ----------
Current assets
Stocks 3,490 3,027 - -
Debtors 4,803 3,485 167 390
---------- ---------- ---------- ----------
8,293 6,512 167 390
Creditors: amounts (6,960) (4,323) (4,165) (4,451)
falling due within one
year
---------- ---------- ---------- ----------
Net current assets/ 1,333 2,189 (3,998) (4,061)
(liabilities)
---------- ---------- ---------- ----------
Total assets less 7,485 6,483 6,673 5,376
current liabilities
Creditors: amounts (726) (25) (680) -
falling due after more
than one year
---------- ---------- ---------- ----------
6,759 6,458 5,993 5,376
---------- ---------- ---------- ----------
Capital and reserves
Called up share 2,917 2,917 2,917 2,917
capital
Share premium account 468 468 468 468
Revaluation reserve 953 960 263 263
Profit and loss 2,421 2,113 2,345 1,728
account
---------- ---------- ---------- ----------
Equity shareholders' 6,759 6,458 5,993 5,376
funds
---------- ---------- ---------- ----------
AUDITED CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2003
2003 2002
#'000 #'000
Net cash inflow/(outflow) from operating 688 (192)
activities
Returns on investments and servicing of finance
Interest paid (157) (51)
Interest element of finance lease payments (4) (6)
---------- ----------
Net cash outflow from servicing of finance (161) (57)
---------- ----------
Taxation
UK corporation tax paid (91) (180)
---------- ----------
Net cash outflow from payment of taxation (91) (180)
---------- ----------
Capital expenditure and financial investment
Purchase of tangible fixed assets (620) (431)
Sale of tangible fixed assets 96 440
---------- ----------
Net cash (outflow)/inflow from capital expenditure (524) 9
and financial investment
---------- ----------
Acquisitions and disposals
Acquisition of subsidiary undertakings (2,087) (404)
Net cash/(overdraft) acquired with subsidiary 248 (278)
undertakings
Disposal of discontinued activities - 1,231
---------- ----------
Net cash (outflow)/inflow from acquisitions and (1,839) 549
disposals
---------- ----------
Equity dividends paid (204) (204)
---------- ----------
Net cash outflow before use of liquid resources and (2,131) (75)
financing
Financing
Issue of shares - 3
Repayment of term loans (175) (100)
New term loan advance 1,000 -
Repayment of loan notes (345) -
Capital element of finance lease payments (42) (92)
---------- ----------
Net cash inflow/(outflow) from financing 438 (189)
---------- ----------
Decrease in cash in the year (1,693) (264)
---------- ----------
NOTES
1. Accounting policies
Basis of preparation
The financial statements are prepared in accordance with applicable accounting
standards under the historical cost convention as modified by the revaluation of
certain fixed assets.
The directors have reviewed the accounting policies in accordance with FRS 18
"Accounting Policies" and have concluded that no changes were required from the
previous year.
Basis of consolidation
The Group financial statements consolidate the financial statements of the
Company and its subsidiary undertakings at 31 March using acquisition
accounting. The results of subsidiary undertakings acquired or disposed of
during a financial year are included from, or up to, the effective date of
acquisition or disposal. On acquisition of a subsidiary, all of the subsidiary's
assets and liabilities existing at the date of acquisition are recorded at their
fair values reflecting their condition at that date.
Profits or losses on intra-group transactions are eliminated in full.
2. Earnings per share
The calculation of earnings per share is based upon the profit after taxation of
#520,000 (2002 : #144,000 loss) divided by the weighted average number of
ordinary shares in issue during the year, 29,165,659 (2002 : 29,145,767). The
fully diluted earnings per share is based upon the weighted average of
29,494,820 shares (2002 : 29,394,935). The dilution in both years is due to
subsisting share options. The adjusted earnings per share is calculated by
reference to the profit after taxation adjusted to exclude exceptional items as
shown below.
2003 2003 2002 2002
#'000 Pence per share #'000 Pence per share
Profit/(loss) for 520 1.8p (144) (0.5p)
the financial year
Exceptional items:
Profit on - - (62) (0.2p)
termination of
discontinued
operations
Goodwill previously - - 508 1.7p
eliminated
Profit on disposal - - (216) (0.7p)
of fixed assets
Taxation in respect - - 36 0.1p
of the exceptional
items
---------- ---------- ---------- ----------
Adjusted profit 520 1.8p 122 0.4p
before exceptional
items
---------- ---------- ---------- ----------
3. Reconciliation of operating profit to net cash inflow from operating
activities
2003 2002
#'000 #'000
Operating profit 916 165
Depreciation of tangible fixed assets 402 345
Amortisation of intangible assets 98 (77)
Profit on sale of tangible fixed assets (49) (20)
Increase in stocks (275) (616)
(Increase)/decrease in debtors (1081) 320
Increase/(decrease) in creditors 677 (309)
---------- ----------
Net cash inflow/(outflow) from operating 688 (192)
activities
---------- ----------
4. Analysis of changes in net debt
At 31 March Cashflows Other non-cash At 31 March
2002 movements 2003
#'000 #'000 #'000 #'000
Bank overdraft (835) (1,693) - (2,528)
Bank loans repaid (25) 175 - 150
New bank loans - (1,000) - (1,000)
Guaranteed loan notes (345) 345 - -
Finance leases (57) 42 (51) (66)
---------- ---------- ---------- ----------
(1,262) (2,131) (51) (3,444)
---------- ---------- ---------- ----------
The other non-cash movements comprise new finance leases.
5. Reconciliation of net cash flow to movement in net debt
2003 2002
#'000 #'000
Decrease in cash in the year (1,693) (264)
Cash outflow from repayment of debt 562 192
Cash inflow from new bank loan (1,000) -
Other non-cash movements (51) (230)
---------- ----------
(2,182) (302)
Net debt at 1 April 2002 (1,262) (960)
---------- ----------
Net debt at 31 March 2003 (3,444) (1,262)
---------- ----------
6. Basis of preparation
The financial information set out in this preliminary announcement of results
does not constitute the Company's statutory accounts for the years ended 31
March 2003 or 31 March 2002 but is derived from those accounts. Statutory
accounts for 2002 have been delivered to the Registrar and those for 2003 will
be delivered following the Company's Annual General Meeting. The Auditors have
reported on these accounts. Their reports were unqualified and did not contain
statements under section 237(2) or (3) of the Companies Act 1985.
7. Other information
The Annual General Meeting of the Company will be held at the Company's
registered office, Ellard House, Dallimore Road, Manchester M23 9NX at 10.00am
on Wednesday 30 July 2003.
The Report and Accounts will be posted to shareholders shortly. Additional
copies of the Annual Report and of this statement will be available at the
Company's registered office.
Enquiries:
Ensor Holdings PLC
Ken Harrison
0161 945 5953
Brown, Shipley & Co. Limited
Philip Johnson
0161 214 6540
This information is provided by RNS
The company news service from the London Stock Exchange
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