RNS Number : 9856J
Forest Support Services PLC
15 December 2008
Forest Support Services Plc
Half Yearly Report
Chairman's Statement
The overall performance, during the traditionally weaker first half, has been ahead of our expectations.
The Company has recorded a profit of �41,991, before taxation, on revenues of �3,463,476.
Strong earnings have been recorded at Newport and at our newly expanded depot at Bristol, with both depots benefiting from their
involvement in framework contracts, which have provided a firm foundation to workload. Some weaknesses in Government spending within the
Winchester region have caused that depot to trade at a lower level.
The Company has been able to maintain its gross margin and grow revenues despite upward pressure on costs during the period,
particularly with fuel prices, which have been negated by improvements made in operational efficiency.
Results
The Group has recorded a profit of �41,991, before taxation, for the period. This compares with a loss of �63,036 for the equivalent
period last year. The earnings per share, on the weighted average number of shares in issue during the year, was 0.13p per share. Turnover
for the period was �3,463,476 (equivalent period last year: �3,031,092), an increase of 14.3%.
As in previous years, the Group will not pay an interim dividend but expects to continue its progressive dividend policy.
Current Trading and Future Prospects
The Company is well positioned within its principle markets, having long established relationships with its key customers underpinned by
term framework contracts. Demand for the Company's services arises from spending by local government, central government and utilities
companies on the repair, maintenance and improvement (RMI) of existing infrastructure. This demand has historically been resilient and
stable.
Newport and Bristol depots have continued to trade well. Plans to relocate Bristol depot are well advanced and this will facilitate
further growth in the region.
Trading during the second half at Winchester has suffered from delays in start dates for work that has been secured. However there has
been a marked increase in the volume and value of tenders in this region. It is expected that trading at Winchester will improve during the
fourth quarter and the longer term prospects for this region continue to look favourable.
It is expected that the Company will achieve a satisfactory conclusion to the full year.
Conclusion
As reported previously, the Company will continue to focus on organic growth by pursuing opportunities that can be served by the
existing depot network. The market segments served provide resilience against the broader macroeconomic uncertainty and provide the Company
with a stable platform for future growth.
Forest Support Services plc
Consolidated Income Statement
for the six months ended 30 September 2008
Unaudited Unaudited Audited
Six months to Six months to Year to
30 September 2008 30 September 2007 31 March
� � 2008
�
REVENUE 3,463,476 3,031,092 6,811,353
Cost of sales (2,462,133) (2,161,664) (4,803,699)
GROSS PROFIT 1,001,343 869,428 2,007,654
Administrative expenses (941,242) (923,721) (1,841,673)
Goodwill impairment charge - - (497,492)
OPERATING PROFIT/(LOSS) 60,101 (54,293) (331,511)
Finance costs (24,809) (16,500) (48,894)
Finance income 6,699 7,757 14,701
PROFIT/(LOSS) BEFORE TAXATION 41,991 (63,036) (365,704)
Taxation (17,019) - (39,792)
PROFIT/(LOSS) FOR THE PERIOD 24,972 (63,036) (405,496)
0.13p (0.34p) (2.17p)
(LOSS)/EARNINGS PER SHARE
Basic and diluted
Forest Support Services plc
Consolidated Balance Sheet
as at 30 September 2008
Unaudited Unaudited Audited
30 September 2008 30 September 2007 31 March
� � 2008
�
NON-CURRENT ASSETS
Goodwill 544,291 1,041,783 544,291
Property, plant and equipment 1,008,061 1,215,131 1,168,663
Deferred tax asset 59,974 118,443 81,815
1,612,326 2,375,357 1,794,769
CURRENT ASSETS
Trade and other receivables 1,932,955 1,637,161 1,695,165
Cash and cash equivalents 376,676 434,754 546,037
2,309,631 2,071,915 2,241,202
TOTAL ASSETS 3,921,957 4,447,272 4,035,971
CURRENT LIABILITIES
Trade and other payables 1,013,397 925,556 1,023,454
Current tax liabilities - 18,129 -
Obligations under finance 110,180 109,450 76,915
leases
Bank loan 74,175 170,545 136,090
1,197,752 1,223,680 1,236,459
NON-CURRENT LIABILITIES
Obligations under finance 174,774 250,204 266,370
leases
Bank loan 286,545 325,669 295,228
461,319 575,873 561,598
TOTAL LIABILITIES 1,659,071 1,799,553 1,798,057
NET ASSETS 2,262,886 2,647,719 2,237,914
EQUITY
Share capital 935,350 935,350 935,350
Share premium 1,513,530 1,513,530 1,513,530
Retained earnings (185,994) 198,839 (210,966)
2,262,886 2,647,719 2,237,914
Forest Support Services plc
Consolidated Cash Flow Statement
for the six months ended 30 September 2008
Six months to Six months to Year to
30 September 2008 30 September 2007 31 March
� � 2008
�
NET CASH FROM/(USED IN) 34,574 79,282 527,892
OPERATING ACTIVITIES
INVESTING ACTIVITIES
Interest received 6,699 7,757 14,701
Purchases of property, plant (81,705) (208,064) (366,050)
and equipment
(75,006) (200,307) (351,349)
FINANCING ACTIVITIES
Dividends paid - - (67,345)
Repayment of borrowings (70,598) (72,783) (137,680)
New bank loans raised - 350,000 350,000
(58,331) (40,668) (94,711)
Repayment of obligations under
finance leases
(128,929) 236,549 50,264
NET (DECREASE)/INCREASE IN (169,361) 115,524 226,807
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT 546,037 319,230 319,230
BEGINNING OF PERIOD
CASH AND CASH EQUIVALENTS AT 376,676 434,754 546,037
END OF PERIOD
NET CASH FROM/(USED IN) Six months to Six months to Year to
OPERATING ACTIVITIES 30 September 2008 30 September 2007 31 March
� � 2008
�
Operating profit/(loss) 60,101 (54,293) (331,511)
Adjustments for:
Goodwill impairment charge - - 497,492
Share based payment expenses - 7,985 7,985
Depreciation on property, 242,310 222,425 458,227
plant and equipment
OPERATING CASHFLOWS BEFORE 302,411 176,117 632,193
MOVEMENTS IN WORKING CAPITAL
(Increase)/decrease in debtors (232,971) 121,507 63,501
Decrease in creditors (10,057) (201,842) (103,943)
CASH GENERATED FROM OPERATIONS 59,383 95,782 591,751
Interest paid (24,809) (16,500) (48,894)
Tax paid - - (14,965)
NET CASH GENERATED FROM 34,574 79,282 527,892
OPERATIONS
Forest Support Services plc
Notes to the condensed interim financial statements
1. General Information
Forest Support Services Plc (the "Company") is a company domiciled in England and Wales whose registered office address is Forest House,
Broad Quay Road, Felnex Industrial Estate, Newport NP19 4PN. The condensed consolidated interim financial statements of the Company for the
six months ended 30 September 2008 comprise the Company and its subsidiaries (together referred to as the "Group").
The condensed consolidated interim financial statements do not constitute statutory accounts as defined in Section 240 of the Companies
Act 1985.
The financial information for the year ended 31 March 2008 has been extracted from the statutory accounts. The auditors' report on the
statutory accounts was unqualified and did not contain a statement under Section 237 of the Companies Act 1985. A copy of those financial
statements has been filed with the Registrar of Companies. The condensed consolidated interim financial statements do not include all of
the information required for full annual financial statements.
The accounting policies used in the preparation of the condensed consolidated interim financial statements are the same as those applied
in the year ended 31 March 2008. As permitted, this interim report has been prepared in accordance with the AIM Rules for companies and is
not compliant in all respects with IAS 34 'Interim Financial Statements'. The condensed consolidated financial statements do not include all
of the information required for full annual financial statements and therefore cannot be considered as in full compliance with IFRS.
The condensed consolidated interim financial statements were authorised for issue on [date].
2. Earnings per share
Basic earnings per share is based on the earnings for the year attributable to shareholders and on the weighted average number of shares
in issue during the year. The number of shares used for calculating basic earnings per share was 18,706,961. As the exercise price of the
share options granted by the company exceeded the average market price of the shares during the six months ended 30 September 2008, and
given the losses reported for the six months ended 30 September 2007 and the year ended 31 March 2008, there is no dilutive impact on
earnings per share in the period.
This information is provided by RNS
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END
IR BSBDDSUBGGIB
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