Interim Results
October 10 2003 - 2:00AM
UK Regulatory
RNS Number:7550Q
Spring Grove Prop. Maintenance PLC
10 October 2003
Spring Grove Property Maintenance PLC
Interim Results for six months ended 31 July 2003
Spring Grove Property Maintenance Plc is pleased to announce its interim results
for the six months ended 31 July 2003.
Press Enquiries:
Kevin Childs, Joint Managing Director Tel: 07831 731 746 (today)
Tel: 020 8577 8840 (thereafter)
Alex Borrelli, Shore Capital Tel: 020 7408 4090
Spring Grove Property Maintenance PLC
Interim Results for six months ended 31 July 2003
Chairman's Statement
Following the Company's Annual General Meeting in August, I commented on the
difficult trading period we had experienced from November 2002 to July 2003.
The Company's turnover for the six months ended 31 July 2003 was #5,727,000
(2002: #5,434,000). The loss before taxation was #112,500 (2002: profit of
#178,000) resulting in a loss per share of 0.63p (2002: earnings of 1.19p). At
31 July 2003 net assets stood at #3,172,000, compared to #3,000,000 at 31 July
2002, equivalent to 26p per share (2002: 25p).
The results reflect continued investment in our management and systems, further
costs associated with the integration of Robert Hawkins and a write-off of
#57,508 in respect of a change in our accounting treatment for the depreciation
of computer hardware. The Company also made a provision of #47,000 in respect
of doubtful debts.
During the period, we won new contracts with the ESR consortium (Ealing Family
HA, Sanctuary HA and Raglan HA), Rosebrooke HA and the maintenance contract for
one of the southern regions of Scottish & Newcastle Plc.
Our newly formed Planned & Projects Division has commenced operations and we
expect that this area of work will make a significant contribution to group
turnover as it establishes its reputation with our existing client base. The
Company has also embarked on a number of innovative partnering schemes with new
and existing clients, as well as other service providers, which should benefit
turnover and profitability in future years.
We have undertaken a detailed review of overheads and implemented a number of
cost savings which should have a beneficial impact on margins in the second
half. We have also instituted a number of new management controls to improve
the cash management of the Company. We recently recruited a new financial
controller and are now at an advanced stage in the selection process for
recruiting a new finance director to complete the strengthening of our executive
management.
The Board is actively considering the demerger of our Emergency Repairs
subsidiary which we hope to complete by the end of the financial year. The
Company believes that the service provided by Emergency Repairs can be extended
to other sectors that Spring Grove does not currently operate in, and to that
end we are currently assembling a management team and considering a potential
fund raising.
The Board is mindful of the increase in the Company's level of borrowings as a
result of the acquisition of Robert Hawkins Ltd., which was largely made up of
cash, as well as the increase in working capital that has been required to fund
the growth in turnover. The Company is now considering various options with its
advisors to raise new capital.
I am pleased to note that the second half of the year has started well with
increased turnover, tight control over costs and margins which, together with
our strengthened finance function, will position the Company well for enhancing
shareholder value as our business grows.
Christopher Phillips
Chairman
Spring Grove Property Maintenance PLC
Unaudited Consolidated Profit & Loss Account
Six months Six months Year
ended ended ended
31-Jul-03 31-Jul-02 31-Jan-03
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Turnover 5,727 5,434 10,793
Cost of sales 4,049 3,954 7,613
Gross profit 1,678 1,480 3,180
Administrative overheads 1,733 1,287 2,733
Other operating income 0 2 13
Net operating profit/(loss) (55) 195 460
Net interest payable 58 17 65
Profit/(loss) on ordinary activities before taxation (113) 178 395
Tax recoverable/(payable) on profit/(loss) on
ordinary activities (34) 35 138
Profit/(loss) on ordinary activities after taxation (79) 143 257
Earnings per share Pence Pence Pence
Basic (0.63) 1.19 2.12
There were no recognised gains and losses other than the profit for the period.
Spring Grove Property Maintenance PLC
Unaudited Consolidated Balance Sheet
As at 31 July 2003
As at As at As at
31-Jul-03 31-Jul-02 31-Jan-03
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Fixed Assets
Intangible assets 597 68 611
Tangible assets 1,460 1,135 1,422
2,056 1,203 2,033
Current Assets
Stocks & WIP 1,456 952 1,283
Debtors 2,985 2,332 2,705
Cash at bank and in hand 137 0 75
4,578 3,284 4,063
Creditors
Amounts falling due within one year 3,116 1,256 2,500
Net Current Assets 1,461 2,028 1,563
Total assets less current liabilities 3,517 3,231 3,596
Creditors
Amounts falling due after more than one year 257 231 257
3,260 3,000 3,339
Provision for Liabilities and Charges
Deferred taxation 88 0 88
Net Assets 3,172 3,000 3,251
Capital and Reserves
Called up share capital 124 120 124
Share premium account 2,291 2,094 2,291
Profit and loss account 757 786 836
Shareholders' funds 3,172 3,000 3,251
Spring Grove Property Maintenance PLC
Unaudited Consolidated Cash Flow Statement
for the six months ended 31 July 2003
Six months Six months Year
ended ended ended
31-Jul-03 31-Jul-02 31-Jan-03
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Net cash inflow/(outflow) from operating activities 548 (317) 932
Returns on investment and servicing of finance
Interest received 0 2 2
Interest paid (45) (19) (39)
Interest element of finance lease (13) (12) (29)
Net cash (outflow) from returns on investment and servicing (58) (29) (65)
of finance
Taxation (102) 0 (95)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (243) (174) (277)
Receipts from sale of fixed assets 0 0 19
Payments to acquire intangible fixed assets (13) 0 0
Net cash (outflow) from capital expenditure and financial (256) (174) (258)
investment
Acquisitions and disposals
Purchase of subsidiary undertaking 0 0 (733)
Cash inflow/(outflow) before financing 132 (520) (218)
Financing
Issue of equity share capital 0 0 0
Share premium on issue of equity share capital 0 0 (11)
Repayment of bank loans 0 0 12
Capital element of finance lease (31) 40 (118)
Net cash inflow/(outflow) from financing (31) 40 (117)
Increase/(decrease) in cash 101 (480) (335)
Spring Grove Property Maintenance PLC
Notes to the Interim Results
for the six months ended 31 July 2003
1 Basis of preparation
The results for the six months ended 31 July 2003 are unaudited. They have been
prepared on accounting bases and policies that are consistent with those used in
the preparation of the financial statements of the company for the period ended
31 January 2003 which were audited.
The financial statements contained in this report do not constitute statutory
accounts within the meaning of Section 240 Companies Act 1985. The results for
the period ended 31 January 2003 were reported on by the auditors and received
an unqualified audit report. Full accounts for the period ended 31 January 2003
have been delivered to Companies House.
2 Dividend
No dividend is proposed for the six months ended 31 July 2003.
3 Taxation
Six months Six months Year
ended ended ended
31-Jul-03 31-Jul-02 31-Jan-03
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Based on profit for the period - UK Corporation Tax
payable/(recoverable) (34) 35 137
UK Corporation tax based on the results for the half year at 30%
4 Earnings per share
Six months Six months Year
ended ended ended
31-Jul-03 31-Jul-02 31-Jan-03
(Unaudited) (Unaudited) (Audited)
Pence Pence Pence
Earnings per ordinary share (0.63) 1.19 2.12
Basic earnings per share has been calculated based on the earnings attributable
to the ordinary shareholders of #(78,750) (2002: #143,000) divided by the
weighted average number of ordinary shares of 12,428,430
Diluted earnings per share has been calculated based on the earnings
attributable to the ordinary shareholders of #(78,750) (2002: #143,000) divided
by the weighted average number of ordinary shares of 12,538,430, which is a loss
per share of 0.63 pence
5 Reconciliation of movements in shareholders' funds
Six months Six months Year
ended ended ended
31-Jul-03 31-Jul-02 31-Jan-03
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Profit/(loss) for the period (79) 143 257
New equity share capital subscribed 0 0 4
Premium on new equity share capital subscribed 0 (12) 185
Net addition of funds (79) 131 446
Opening shareholders' equity funds 3,251 2,869 2,869
Prior year adjustment 0 0 (64)
Closing shareholders' equity funds 3,172 3,000 3,251
6 Reconciliation of operating profit to net cash flow from operating profit
Six months Six months Year
ended ended ended
31-Jul-03 31-Jul-02 31-Jan-03
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Operating profit (55) 195 460
Depreciation 235 116 261
Loss on disposal of fixed assets 0 0 3
(Increase)/decrease in stocks (173) 66 (101)
(Increase) in debtors (233) (662) (710)
Increase/(decrease) in creditors 774 (32) 1,020
548 (317) 933
7 Reconciliation of net cash flow to movement in net debt
Six months Six months Year
ended ended ended
31-Jul-03 31-Jul-02 31-Jan-03
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Increase/(decrease) in cash in the period 101 (480) (335)
Net cash (inflow)/outflow from bank loans 7 0 (12)
Cash inflow/(outflow) in respect of finance lease 31 (40) 118
Change in net debt 139 (520) (229)
New finance leases (38) 0 (245)
Change in net debt 101 (520) (474)
Opening net debt (569) (95) (95)
Closing net debt (468) (615) (569)
8 Analysis of change in net debt
At Cash At
01-Feb-03 Flows 31-Jul-03
#'000 #'000 #'000
Net cash:
Cash at bank and in hand 74 (74) 0
Debt:
Debt due within one year (200) 144 (56)
Finance leases (443) 31 (412)
(643) 175 (468)
Net debt (569) 101 (468)
9. Copies of the interim report
Copies of the interim report are available to the public from Spring Grove
House, Ivy Road, Hounslow Middlesex TW3 2DH.
This information is provided by RNS
The company news service from the London Stock Exchange
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