RNS Number:9074R
Pochin's PLC
27 February 2007
Pochin's PLC
Interim results for the 6 months ending 30 November 2006
HIGHLIGHTS
* Turnover at #53.2m
* Profit before taxation at #4.4m
* Interim dividend up 9% to 3.0p
* Decrease in pension fund deficit of #2.6m
* Healthy contracting order book
* Further land sale on Midpoint 18 development
* Major joint venture investment in a landmark building in central Liverpool
* Investment in a 34 acre property development at Ellesmere, Shropshire
* Commitment to further new equipment for Construction Services
Chairman's Statement
Results
The result for the 6 months ended 30 November 2006 show pre-tax profits of #4.4m
(2005: #7.4m) on turnover of #53.2m (2005: #74.5m). The result for 2005
included the #30m sale of student accommodation developed by the group at Crewe
Green. An interim dividend of 3.0p (2005: 2.75p) is declared.
Divisional Reports
The group has taken action to reduce the deficit in the final salary pension
scheme. All stakeholders have agreed to revised benefits, which will help to
sustain the scheme together with special cash contributions from the group
amounting to #1.2m, of which #0.6m was made in the period. The resulting credit
of #2m (net) has principally benefited both the Contracting and Construction
Services Divisions.
Contracting
Although turnover for the period was slightly ahead of last year's equivalent,
this half year was affected by the deferral of a number of projects. Activity
levels have now increased and the forward order book is healthy with a value of
#81m (2005: #77m)
Construction Services
The division performed steadily during the period, and a new venture in Northern
Ireland should contribute to improved results. Renewed emphasis is being placed
on the efficient utilisation of the group's pumping equipment in market
conditions which remain highly competitive.
Property
The Property Division continues to perform well in benign market conditions.
After falling for a sustained period, investment yields for commercial property
have recently stabilised and it remains to be seen how this will affect the
development market. A feature of the period was the sale to The Midpoint
Partnership (in which Pochin Developments Limited has a 25% interest) of a 30.5
acre plot of land on Midpoint 18, where construction of a 350,000 sq. ft. high
bay warehouse has now begun. At Crewe, planning permission has been gained for
a phased office scheme and a hotel. Permission for a mixed-use scheme is being
sought on the group's new 34 acre site at Ellesmere in Shropshire.
A high level of joint venture activity has been maintained during the period.
Completion of construction has been achieved of the scheme at Holyhead, where
the majority of the apartments are now under contract for sale. Progress has
been made towards securing the group's participation in a large retail scheme at
Birkenhead. Lettings have been completed at Reynolds House at Manchester
Technopark Limited, a joint venture with Manchester Science Park Limited. The
building will now be offered for sale.
Refurbishment of Horton House, Liverpool, a 160,000 sq. ft. central Liverpool
office and retail building, is making good progress. This project, which
involves a substantial pre-let, is being carried out jointly with UK Land and
Property Limited. The same parties are taking forward a number of other
development opportunities.
Residential
A positive contribution came from the completion of 19 units in the first 6
months. The year's target, over 70 units, remains achievable. It continues to
be difficult to acquire housing sites at a cost which permits profitable
development, so it is good to be able to report the recent purchase of land in
Shropshire, which should yield 39 new units.
Financial
Net indebtedness rose by #9.4m to #37.8m, mainly as a result of the group's
investment in new projects, referred to above. Increased funding of joint
ventures reflects the greater level of activity, also referred to above, the
effect of this was largely offset by property disposals and cashflow from
trading.
General
I would like to pay tribute to my predecessor, John Woodcock, whom I succeeded
as chairman on 1st January this year. I am pleased to confirm that he will
remain involved with the group's joint venture activity, where his experience,
gained over nearly 40 years with Pochin's, will be of great benefit.
The group has made a solid start to the second half of the year, which should
result in a satisfactory outcome for the full year.
Richard Fildes
Chairman
26 February 2007
Enquiries:
Pochin's PLC
David Shaw, Chief Executive 01606 833 333
John Edwards, Finance Director
Charles Stanley Securities
Philip Davies/Rick Thompson 020 7149 6457
Consolidated Income Statement
For the 6 months ended 30 November 2006
6 months ended 6 months ended 12 months ended
30 November 30 November 31 May
2006 2005 2006
Notes #'000 #'000 #'000
Revenue 3 53,211 74,478 124,295
Cost of sales (45,927) (59,926) (104,096)
------------------ ------------------ ------------------
Gross profit 7,284 14,552 20,199
Operating expenses (4,659) (8,413) (14,343)
Other operating income 1,985 1,529 3,212
Gains on revaluation of
investment properties - - 509
------------------ ------------------ ------------------
Operating profit 4,610 7,668 9,577
Share of loss after taxation in
joint ventures (137) (156) (379)
Share of profit after taxation in
associates (193) 62 153
Finance income 1,204 808 1,898
Finance cost (1,493) (959) (1,866)
------------------ ------------------ ------------------
Profit before taxation 3 4,377 7,423 9,383
Taxation (1,752) (3,043) (3,551)
------------------ ------------------ ------------------
Profit from continuing operations (2,625) 4,380 5,832
Discontinued operations
Profit/(loss) from discontinued
operations - 13 (2,094)
------------------ ------------------ ------------------
Profit for the period 2,625 4,393 3,738
================== ================== ==================
Attributable to:
Equity holders of the company 2,611 4,378 3,708
Minority interest 14 15 30
------------------ ------------------ ------------------
2,625 4,393 3,738
================== ================== ==================
Earnings per share (basic) 6 13.0p 21.7p 18.4p
Earnings per share (diluted) 6 12.9p 21.5p 18.2p
Earnings per share (basic) from
continuing activities 6 13.0p 21.6p 28.8p
Earnings per share (diluted) from
continuing activities 6 12.9p 21.4p 28.5p
Dividends proposed for the period 5 3.0p 2.75p 6.0p
Consolidated statement of recognised income and expense
6 months ended 6 months ended 12 months ended
30 November 30 November 31 May
2006 2005 2006
#'000 #'000 #'000
Actuarial losses on defined benefit pension scheme (178) (996) (834)
Deferred taxation on pension scheme deficit 53 299 250
------------------ ------------------ ------------------
Net expense recognised directly in equity (125) (697) (584)
Profit for the financial period 2,625 4,393 3,738
------------------ ------------------ ------------------
Total gains recognised since last period 2,500 3,696 3,154
================== ================== ==================
Attributable to:
Equity holders of the company 2,486 3,681 3,124
Minority interest 14 15 30
------------------ ------------------ ------------------
2,500 3,696 3,154
================== ================== ==================
Consolidated Balance Sheet
As at 30 November 2006
As at As at As at
30 November 30 November 31 May
2006 2005 2006
Notes #'000 #'000 #'000
Non current assets
Intangible assets 242 897 323
Property, plant and equipment 5,585 9,254 9,544
Investment properties 39,271 34,704 34,923
Investments
Joint ventures 10,302 7,728 9,128
Associates 1,989 2,408 2,378
Other 2,157 2,157 2,157
14,448 12,293 13,663
----------------- ----------------- -----------------
Total non current assets 59,546 57,148 58,453
Current assets
Inventories 39,832 24,888 26,215
Trade and other receivables 20,060 18,918 19,931
Cash and cash equivalents 2,670 13,608 791
Assets included in disposal group - - 990
----------------- ----------------- -----------------
Total current assets 62,562 57,414 47,927
----------------- ----------------- -----------------
Current liabilities
Trade and other payables 22,062 17,956 17,948
Corporation tax 1,021 3,342 1,245
Bank loans 10,822 533 815
Bank overdrafts 20,280 23,674 18,672
Financial derivatives 222 446 174
Obligations under finance leases - 154 -
Liabilities included in disposal group - - 665
----------------- ----------------- -----------------
Total current liabilities 54,407 46,105 39,519
----------------- ----------------- -----------------
Net current assets 8,155 11,309 8,408
----------------- ----------------- -----------------
Non current liabilities
Bank loans 9,211 10,133 9,536
Retirement benefit obligation 2,566 5,624 5,179
Deferred tax liabilities 2,075 1,190 1,422
Long term provisions 1,642 794 1,050
Other payables 5,122 3,589 3,856
----------------- ----------------- -----------------
Total non current liabilities 20,616 21,475 21,043
----------------- ----------------- -----------------
Net assets 47,085 46,982 45,818
================= ================= =================
Shareholders' equity
Share capital 5,200 5,200 5,200
Own shares (954) (847) (954)
Revaluation reserve 253 343 270
Retained earnings 42,363 42,065 41,093
----------------- ----------------- -----------------
Equity shareholders' funds 46,862 46,761 45,609
Minority interest 223 221 209
----------------- ----------------- -----------------
Total equity 3 47,085 46,982 45,818
================= ================= =================
Consolidated Cash Flow Statement
For the year ended 30 November 2006
6 months ended 6 months ended 12 months ended
30 November 2006 30 November 2005 31 May 2006
Notes #'000 #'000 #'000 #'000 #'000 #'000
Net cash from operating
activities
Operating profit for the
period 4,610 7,668 9,577
Depreciation charge 489 702 1,381
Impairment of intangible
assets 81 415 547
Charge in respect of share
based payments 23 14 54
Profit on sale of fixed assets (23) (306) (313)
Gains on revaluation of
investment properties - - (509)
Provision against investments
in joint ventures 1,500 2,693 2,516
Income from joint ventures and
associates 223 21 44
------------ ------------ ------------
Operating profit before
changes in working capital 6,903 11,207 13,297
(Increase)/decrease in
inventories (13,617) 15,923 14,079
Decrease/(increase) in
receivables 861 (825) (3,438)
Increase in payables 2,563 2,205 1,842
------------ ------------ ------------
(3,290) 28,510 25,780
Interest paid (1,493) (959) (1,866)
Income taxes paid (1,277) (1,610) (3,469)
------------ ------------ ------------
Net cash (used in)/from
operating activities (6,060) 25,941 20,445
Investing activities
Interest received 1,204 808 1,898
Disposal of businesses - - 527
Purchase of investment
properties (258) (4,683) (4,473)
Purchase of property, plant
and equipment (890) (2,184) (3,789)
Proceeds from sale of
property, plant and equipment 293 766 808
Receipt of government grants - 140 427
Repayment of government grants - (280) (237)
Increase in interest in joint
ventures and associates (2,452) (5,210) (6,831)
Purchase of shares by EST - - (107)
------------ ------------ ------------
Net cash used in investing
activities (2,103) (10,643) (11,777)
Financing activities
Proceeds from new loans 10,000 - -
Repayment of loans (318) (411) (725)
Finance lease repayments - (96) (395)
Dividends paid 5 (1,248) (1,061) (1,633)
------------ ------------ ------------
Net cash from/(used in)
financing activities 8,434 (1,568) (2,753)
------------ ------------ ------------
Net increase in cash and cash
equivalents 271 13,730 5,915
Cash and cash equivalents at
beginning of period (17,881) (23,796) (23,796)
------------ ------------ ------------
Cash and cash equivalents at
end of period (17,610) (10,066) (17,881)
------------ ------------ ------------
Notes
1 The interim report was approved by the board on 26 February 2007.
2 Basis of preparation
The interim financial information has been prepared applying the accounting
policies and presentation that were applied in the preparation of the group's
published consolidated financial statements for the year ended 31 May 2006.
3 Segmental information
For management purposes, the group is currently organised into four operating
business segments:
Contracting, Property, Residential and Construction Services.
As operations are carried out entirely within the UK, there is no secondary
segmental information.
Inter segmental pricing is done on an arms length open market basis.
6 months ended 30 November 2006
Continuing operations
Construction Group Group
Contracting Property Residential services management Total
#'000 #'000 #'000 #'000 #'000 #'000
Revenue
External sales 36,221 5,343 4,101 7,546 - 53,211
Inter-segment sales 680 - - 455 - 1,135
Eliminations (680) - - (455) - (1,135)
------------ ------------ ------------ ------------ ------------ ------------
Total revenue 36,221 5,343 4,101 7,546 - 53,211
------------ ------------ ------------ ------------ ------------ ------------
Segment Result
Operating profit/(loss) 1,168 3,469 57 445 (529) 4,610
Share of results of joint - 56 - - - 56
ventures and associations
Net finance costs - (253) - (36) - (289)
------------ ------------ ------------ ------------ ------------ ------------
Profit before taxation 1,168 3,272 57 409 (529) 4,377
------------ ------------ ------------ ------------ ------------ ------------
Taxation (1,752)
------------
Profit from continuing
operations
2,625
------------
Construction Group Group
Contracting Property Residential services management Total
#'000 #'000 #'000 #'000 #'000 #'000
Assets and liabilities
Segment assets 23,216 66,899 10,693 9,009 - 109,817
Investment in equity
accounted joint ventures
and associates - 12,291 - - - 12,291
------------ ------------ ------------ ------------ ------------ ------------
Total assets 23,216 79,190 10,693 9,009 - 122,108
Total liabilities 19,767 41,623 10,584 3,049 - 75,023
------------ ------------ ------------ ------------ ------------ ------------
Net assets 3,449 37,567 109 5,960 - 47,085
------------ ------------ ------------ ------------ ------------ ------------
Other information
Capital expenditure 228 782 - 138 - 1,148
Depreciation 36 48 - 405 - 489
Profit arising on movement
in pension fund deficit 1,250 155 - 275 274 1,954
Impairment of investment in
joint ventures - 1,500 - - - 1,500
Impairment of inventories - - 12 - - 12
Impairment of goodwill - - - 81 - 81
6 months ended 30 November 2005
Continuing operations Construction Group
Contracting Property Residential services management Group Total
#'000 #'000 #'000 #'000 #'000 #'000
Revenue
External sales 32,354 33,587 1,544 6,993 - 74,478
Inter-segment sales 6,732 - - 679 - 7,411
Eliminations (6,732) 0 0 (679) - (7,411)
------------ ------------ ------------ ------------ ------------ ------------
Total revenue 32,354 33,587 1,544 6,993 - 74,478
------------ ------------ ------------ ------------ ------------ ------------
Segment result
Operating profit/(loss) (579) 8,301 13 376 (443) 7,668
Share of results of joint
ventures and associates - (94) - - - (94)
Net finance costs - (95) - (56) - (151)
------------ ------------ ------------ ------------ ------------ ------------
Profit/(loss) before
taxation (579) 8,112 13 320 (443) 7,423
------------ ------------ ------------ ------------ ------------
Taxation (3,043)
------------
Profit from continuing
operations 4,380
------------
Discontinued operations
Revenue
External sales - - - 3,241 - 3,241
Inter-segment sales - - - 163 - 163
Eliminations - - - (163) - (163)
------------ ------------ ------------ ------------ ------------ ------------
Total revenue - - - 3,241 - 3,241
------------ ------------ ------------ ------------ ------------ ------------
Segment result
Operating profit - - - 22 - 22
Net finance costs - - - (9) - (9)
------------ ------------ ------------ ------------ ------------ ------------
Profit before taxation - - - 13 - 13
------------ ------------ ------------ ------------ ------------
Taxation -
------------
Profit from discontinued
operations 13
------------
Assets and liabilities
Segment assets 14,732 70,775 8,243 10,676 - 104,426
Investment in equity
accounted joint ventures
and associates - 10,136 - - - 10,136
------------ ------------ ------------ ------------ ------------ ------------
Total assets 14,732 80,911 8,243 10,676 - 114,562
Total liabilities 12,026 42,396 8,490 4,668 - 67,580
------------ ------------ ------------ ------------ ------------ ------------
Net assets/(liabilities) 2,706 38,515 (247) 6,008 - 46,982
------------ ------------ ------------ ------------ ------------ ------------
Other information
Capital expenditure 18 6,448 - 401 - 6,867
Depreciation 21 65 - 616 - 702
Loss arising on movement in
pension fund deficit 83 28 - 55 - 166
Impairment of investment in
joint ventures - 2,693 - - - 2,693
Impairment of inventories - 823 - - - 823
Impairment of goodwill - 334 - 81 - 415
12 months ended 31 May 2006
Continuing operations
Construction Group
Contracting Property Residential services management Group Total
#'000 #'000 #'000 #'000 #'000 #'000
Revenue
External sales 67,317 35,443 7,738 13,797 - 124,295
Inter-segment sales 9,085 - - 1,066 - 10,151
Eliminations (9,085) - - (1,066) - (10,151)
------------ ------------ ------------ ------------ ------------ ------------
Total revenue 67,317 35,443 7,738 13,797 - 124,295
------------ ------------ ------------ ------------ ------------ ------------
Segment result
Operating profit/(loss) 123 9,836 499 4 (885) 9,577
Share of results of joint
ventures and associates - (226) - - - (226)
Net finance income/(costs) - 135 - (103) - 32
------------ ------------ ------------ ------------ ------------ ------------
Profit/(loss) before
taxation 123 9,745 499 (99) (885) 9,383
------------ ------------ ------------ ------------ ------------
Taxation (3,551)
------------
Profit from continuing
operations 5,832
------------
Discontinued operations
Revenue
External sales - - - 6,490 - 6,490
Inter-segment sales - - - 152 - 152
Eliminations - - - (152) - (152)
------------ ------------ ------------ ------------ ------------ ------------
Total revenue - - - 6,490 - 6,490
Segment result
Operating loss - - - (333) - (333)
Net finance costs - - - (17) - (17)
------------ ------------ ------------ ------------ ------------ ------------
Loss before taxation - - - (350) - (350)
------------ ------------ ------------ ------------ ------------
Loss on disposal of (72)
operation
Provision against assets (1,777)
held in disposal group
Taxation 105
------------
Loss from discontinued
operations (2,094)
------------
Assets and liabilities
Segment assets 19,393 58,456 6,541 10,484 - 94,874
Investment in equity
accounted joint ventures
and associates - 11,506 - - - 11,506
------------ ------------ ------------ ------------ ------------ ------------
Total assets 19,393 69,962 6,541 10,484 - 106,380
Total liabilities 15,781 33,223 6,471 5,087 - 60,562
------------ ------------ ------------ ------------ ------------ ------------
Net assets 3,612 36,739 70 5,397 - 45,818
------------ ------------ ------------ ------------ ------------ ------------
Other information
Capital expenditure 37 7,661 - 564 - 8,262
Depreciation 44 109 - 1,228 - 1,381
Profit arising on movement
in pension fund deficit 16 5 - 11 - 32
Impairment of investment in
joint ventures - 2,516 - - - 2,516
Impairment of inventories - 570 - - - 570
Impairment of goodwill - 386 - 161 - 547
4 Taxation
The taxation charge is calculated by applying the estimated effective annual tax
rate to the profit for the period. The tax assessed for the period is higher
than the standard rate of corporation tax in the United Kingdom as a result of
expenses not deductible for tax purposes and interest charges and losses in
joint venture companies not utilised.
5 Dividends
6 months ended 6 months ended 12 months ended
30 November 2006 30 November 2005 31 May
2006
#'000 #'000 #'000
Interim paid 2.75p per share - - 572
Final paid 6.0p (2005: 5.1p) per share 1,248 1,061 1,061
------------------- ------------------- -------------------
1,248 1,061 1,633
------------------- ------------------- -------------------
The interim dividend of 3.0p (2005: 2.75p) per share will be paid on 6 April
2007 to shareholders on the register at 7 March 2007.
The dividend has not been included as a liability as at 30 November 2006.
6 Earnings per share
The calculation of earnings per share (basic and diluted) is based on group
profit after taxation and minority interests of #2,611,000 (2005 : #4,378,000)
and the 20,800,000 ordinary shares of 25p in issue at 30 November 2006 and 30
November 2005.
The number of shares in the calculation has been reduced at 30 November 2006 for
the 686,000 (2005 : 589,000) shares held in the Employee Share Trust. Basic
earnings per share is 13.0p (2005: 21.7p). The assumed conversion of dilutive
options increases the number of shares by 168,000 (2005: 194,000) shares and so
diluted earnings per share decreases to 12.9p (2005:21.5p).
6 months ended 30 November 2006
Weighted average
Earnings no. of shares Per share
#'000 '000 p
Basic EPS 2,611 20,114 13
Effect of share options - 168 (0.1)
--------------------- --------------------- ---------------------
Diluted EPS 2,611 20,282 12.9
--------------------- --------------------- ---------------------
6 months ended 30 November 2005
Weighted average
Earnings no. of shares Per share
#'000 '000 p
Basic EPS 4,378 20,211 21.7
Effect of share options - 194 (0.2)
--------------------- --------------------- ---------------------
Diluted EPS 4,378 20,405 21.5
--------------------- --------------------- ---------------------
12 months ended 31 May 2006
Weighted average
Earnings no. of shares Per share
#'000 '000 p
Basic EPS 3,708 20,154 18.4
Effect of share options - 169 (0.2)
--------------------- --------------------- ---------------------
Diluted EPS 3,708 20,323 18.2
--------------------- --------------------- ---------------------
The calculation of earnings per share (basic and diluted) for the group's
continuing and discontinued operations for the 6 months ended 30 November 2005
and 12 months ended 31 May 2006 are set out below. There were no discontinued
operations for the 6 months ended 30 November 2006:
6 months ended 30 November 2005
Weighted average
Earnings no. of shares Per share
Continuing operations #'000 '000 p
Basic EPS 4,365 20,211 21.6
Effect of share options - 194 (0.2)
--------------------- --------------------- ---------------------
Diluted EPS 4,365 20,405 21.4
--------------------- --------------------- ---------------------
6 months ended 30 November 2005
Weighted average
Earnings no. of shares Per share
Discontinued operations #'000 '000 p
Basic EPS 13 20,211 0.1
Effect of share options - 194 -
--------------------- --------------------- ---------------------
Diluted EPS 13 20,405 0.1
--------------------- --------------------- ---------------------
12 months ended 31 May 2006
Weighted average
Earnings no. of shares Per share
Continuing operations #'000 '000 p
Basic EPS 5,802 20,154 28.8
Effect of share options - 169 (0.3)
--------------------- --------------------- ---------------------
Diluted EPS 5,802 20,323 28.5
--------------------- --------------------- ---------------------
12 months ended 31 May 2006
Weighted average
Earnings no. of shares Per share
Discontinued operations #'000 '000 p
Basic EPS (2,094) 20,154 (10.4)
Effect of share options - 169 0.1
--------------------- --------------------- ---------------------
Diluted EPS (2,094) 20,323 (10.3)
--------------------- --------------------- ---------------------
7. The comparative figures for the year ended 31 May 2006 do not constitute
statutory accounts for the purpose of section 240 of the Companies Act 1985. A
copy of the statutory accounts for the year ended 31 May 2006, which were
prepared under International Financial Reporting Standards and which the
auditors gave an unqualified report in accordance with section 235 of the
Companies Act 1985, have been filed with the Registrar of Companies.
8. Pochin's PLC ordinary shares of 25p each were admitted into CREST on 29
January 2007.
9. Copies of this interim report will be sent to all registered shareholders
during March 2007. Further copies of the interim report are available from the
Company Secretary, Pochin's PLC, Brooks Lane, Middlewich, Cheshire, CW10 0JQ.
This interim report will also be available on the group's website
(www.pochins.plc.uk).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR MGGZZLVRGNZM
Pacific Global (LSE:PCH)
Historical Stock Chart
From Jan 2025 to Feb 2025
Pacific Global (LSE:PCH)
Historical Stock Chart
From Feb 2024 to Feb 2025
