RNS Number:0951N
Birse Group PLC
03 July 2003
Date: Embargoed until 7.00am 3rd July 2003
Contact: Peter Watson, Chairman Telephone: 01652 633222
Martin Budden, Group Managing Director
Heather Appleford, Group Finance Director
Birse Group plc
Peter Otero Telephone: 0207 831 3113
Financial Dynamics
BIRSE GROUP plc - PRELIMINARY ANNOUNCEMENT
Birse Group plc, the construction, plant hire and property group today announces
preliminary results for the year ended 30 April 2003.
Financial Highlights:-
- Pre-tax pre-exceptional profits increased to #6.7million
(2002: #5.2million) reflecting continuing improvement in the business.
- Exceptional operating loss relates to the full write-down taken in respect
of Leicester City debt at #5.5million as announced on 21 October 2002.
- Net cash at #12.8million (2002: #12.7million).
- Dividend 1p per share (2002: 1p per share).
Operational Highlights:-
- Plant Hire increased operating profit to #3.4million (2002: #2.4million).
- Construction operating losses before exceptionals of #0.3million (2002:
profit of #1.4million). Record performance from Civil Engineering offset
by Build and to a much lesser extent Process Engineering subsidiaries.
- Property increases operating profit to #3.0million (2002: #0.8million)
following the sale of its remaining fourteen acres of land at Warrington.
- Solid Construction order book (excluding sports stadia) totalling
#326million at 31 May 2003 (31 May 2002: #328million).
"In the circumstances a satisfactory set of results particularly the twenty nine
percent year on year increase in pre-tax pre-exceptional profits. With the
Group's main markets on balance likely to remain stable we believe that the
Group can progress further from the solid platform established over the last two
years."
M Budden P G Watson
CHAIRMAN'S STATEMENT
Results
Pre-tax profits, before the #5.5million exceptional operating item, totalling
#6.7million compare with pre-tax, pre-exceptional profits of #5.2million in 2001
/2002 representing a continuance of the progressive positive trend highlighted
in the interim statement.
The improved Group performance has been achieved despite losses of #0.3million
in Birse Construction (2001/2002: operating profit of #1.4million). As
anticipated at the half year the losses in its Build and Process Engineering
subsidiaries outweighed the profits generated by its Civil Engineering business.
Aggregate construction losses, however, have reduced since that time in spite
of the Build operations increasing its losses by #5.3million over the same
period. Civil Engineering increased operating profits from #4.4million in the
previous year to #6.9million as a result of a more focused approach on the
relatively strong infrastructure market, particularly within the water and rail
sectors. Plant Hire remains the Group's most profitable area of operations
reporting improved results for the fourth year running at #3.4million (2001/
2002: #2.4million) as the benefits from capital investment in prior periods
began to flow through. Following the sale of the remaining land at its
Warrington site the Group's Commercial Property returns will in the future be
insignificant. The sale involving the disposal of fourteen acres of land is the
reason for the large increase in reported profits to #3.0million (2001/2002:
operating profit of #0.8million).
The #5.5million exceptional operating item, was announced on 21 October 2002,
and relates to the write off of all amounts owed to Birse Construction Limited
by the Leicester City Group of Companies following the appointment of an
administrator to run the affairs of each of the operating companies comprising
that group. The process of administration has not raised any funds for Birse
Construction and each of the relevant Leicester companies has been or is
expected to be put in the hands of a liquidator. Given the significance of the
amounts involved we will continue to monitor the situation, however, it would be
misleading at this point to give any encouragement that any material amounts of
money will be recovered.
The net interest credit of #98,000 (2001/2002: #179,000) has been affected
adversely by lower average interest rates and the Leicester City bad debt. At
30 April 2003 the Group had a net cash position of #12.8million including
amounts held on deposit as investments (30 April 2002: #12.7million).
Dividend
The Board is recommending a final dividend of 0.625p per ordinary share (2001/
2002: 0.625p) maintaining the total dividend for the year at 1p per ordinary
share (2001/2002: 1p). Subject to the approval of shareholders at the Annual
General Meeting the final dividend is payable on 3 November 2003 to shareholders
appearing on the register at the close of business on 3 October 2003.
The Board
Following the completion of the sale of the land remaining at Warrington it is
with some sadness that I announce the retirement of John Holt, who will step
down from the Board at the forthcoming Annual General Meeting. John joined the
Group under a remit to expand the Group's property development activities only
to have that remit immediately withdrawn as the United Kingdom property market
entered one of its most depressed phases. Property development was sacrificed
to enable the Group to focus on its traditional areas of construction and plant
hire. John, assisted by Andrew Bradley, his fellow property director, set about
divesting the Group of its property portfolio in very difficult trading
circumstances. It is a reflection of John's energy, commitment and
professionalism that that task has now been completed successfully. We wish him
all the success in the future.
Outlook
At the half year it was reported that the Group's main markets were expected to
remain steady. Whilst the private sector building market has remained somewhat
depressed, particularly in the developer led South, to date this has been offset
by opportunities in the water and rail sectors of the civil engineering market.
The civils infrastructure market as a whole will benefit further from increased
Government spending on roads. The Group's plant hire markets tend to be
reflective of civil engineering activity. On balance, therefore, the Group is
in a good position to progress further from the solid platform established over
the last two years.
GROUP MANAGING DIRECTOR'S REVIEW AND REVIEW OF OPERATIONS
Overview
The Group has continued to make positive progress in what has been an eventful
and often difficult year. Those events and difficulties by and large relate to
Birse Construction. Its Process Engineering subsidiary continued its successful
turnaround with losses reduced to #0.5million from #2.8million in the previous
year. With a significantly increased order book that company can look forward
to greater trading volumes thereby providing the opportunity to return a
positive result. The Building business however remains a major problem with the
material losses projected for 2002/2003 crystallising at #6.8million. Although
that operation has a clear turnaround strategy it will be some time before a
positive contribution is achieved. This subsidiary is expected to trade at a
loss for at least the 2003/2004 financial year with the scale of recovery
thereafter still dependent on an improvement in market conditions. Birse Build,
through its wholly owned subsidiary Birse Stadia Limited, was also the business
that suffered the Leicester City bad debt, the position in respect of which has
been covered in the Chairman's Statement. More detailed commentary upon the
performance of Birse Construction is provided below, the highlight being the
continuing strong performance of its Civil Engineering subsidiaries which
collectively delivered an operating profit of #6.9million (2001/2002:
#4.4million).
Plant Hire has increased profits by #1million to #3.4million with both BPH
Equipment Limited and The Cabin Company Limited each reporting profits of
#1.7million, up from #1.1million and #1.3million respectively in 2001/2002.
Both businesses have benefited from capital investment in prior periods which in
the case of BPH Equipment has resulted in a re-balancing of its crane fleet
towards hydraulic machines. This reflects better market demands and in the case
of The Cabin Company supporting its shift into the external market. Both
businesses are expected to improve results in the current year.
The sale of the remaining fourteen acres of land at Warrington was transacted
shortly before the year end following a protracted period of negotiation. To
all intents and purposes this sale signals the end of the Group's involvement in
property development and vindicates the selective approach to land sales in the
past.
The alignment of the Group's organisational structure with its strategic
objectives was achieved with effect from 1 May 2002 with the incorporation on 30
April 2002 of the various operating businesses which previously comprised the
trading divisions of Birse Construction. Since that time all Group companies
have been implementing their own agreed strategic direction largely based on
differentiation. It is the successful development of these autonomous
businesses and the managers who run them that will drive forward Group
performance.
Any review of performance would not be complete without a commentary upon our
most fundamental value that all business should be undertaken in a manner that
protects the safety of everyone associated with our operations whether this be
related to customers, suppliers or our own staff. All our safety performance
statistics and awards reflect a year on year improvement. However, our
objective is not to collect awards and statistics but to eliminate all accidents
from our operations. With this aim in mind we are focusing more and more
attention and resources upon supporting our supply chain through training and
audits. This will assist us in selecting suppliers that meet with our own
safety standards and intent. As we repeatedly state, one accident is one
accident too many.
Construction
2003 2002
Turnover Operating Turnover Operating
profit/(loss)* profit/(loss)
#'000 #'000 #'000 #'000
Civil Engineering 246,232 6,947 214,868 4,394
Building 195,602 (6,754) 246,127 (225)
Process Engineering 27,838 (515) 20,837 (2,765)
469,672 (322) 481,832 1,404
Analysed between:-
First Half 245,980 (379) 244,263 (412)
Second Half 223,692 57 237,569 1,816
469,672 (322) 481,832 1,404
* Before exceptional operating items.
Civil Engineering
Birse Rail Limited, Birse Metro Limited (a dedicated London Underground
business) and Birse Civils Limited collectively comprise the Civil Engineering
Division. For the second year running the results were underpinned by a robust
performance from Birse Metro and Birse Rail. But for write offs relating to a
handful of legacy contracts in Birse Civils Limited the reported result for the
Division would have been even better. Net margins at 2.8% are beginning to
approach those achieved by the top quartile performers in the industry. Looking
forward each business is faced with a small number of different but no less
demanding challenges. Birse Metro in the past has had one customer in London
Underground. With the establishment of private public partnerships it will have
at least four, each with its own differing demands and style of operation. It
is important that our understanding of those demands at least accords with our
past knowledge in this area so that the business can continue to align
successfully its core competencies with the needs of the market place.
With the major spending Government departments now procuring via 'the early
contractor involvement route' Birse Civils Limited will need to satisfy
customers that it fulfils their requirements under this relatively new regime.
We believe that this approach will allow our creative engineering and project
management skills to flourish thereby providing the customer with greater added
value. To date we have been successful at securing work from Local Authorities
under these arrangements but we have yet to secure corresponding awards from the
major Government departments. We do however take encouragement from the
framework contracts which those customers have placed with us since the
requirements of the contractor under these arrangements are very similar to the
demands placed upon the contractor under the early contractor involvement
protocol.
Within Birse Rail Limited it is our intention to compete more aggressively in
and around the London region where we believe future customer spend will be
concentrated. In order to do this we will be expanding the company's existing
London base whilst at the same time ensuring that its existing high level of
customer service is at the very least maintained.
Building
Birse Build Limited and its wholly owned subsidiary Birse Stadia Limited
together are the Building Division. The challenges facing this business were
discussed in the Group's 2002 annual report and its 2003 interim statement. In
both cases the prospects for increased losses were documented therefore the
results now published are consistent with expectations.
The business is faced with meeting the challenge of managing the consequences of
significant over-trading in the period up to 2001 and the rapid fall off in
demand in certain of its historical markets, specifically in the development led
private sector in the South and the sports stadia sector. All this is against a
background of tough price competition across all areas of the building market.
Mitigating actions taken by management to date include downsizing both its
southern based operations and its Stadia business. In the case of the latter,
whilst we retain our capability in this area we will only deploy it on an
extremely selective basis. Based upon our understanding of the Stadia market we
do not expect to start any new contracts of this nature for at least twelve
months and are therefore organizing the business accordingly.
In terms of future workload the business will concentrate upon those customers
who seek real value added services and recognise our capabilities to provide
those services. This will include the logistics and the public authority
education sectors where contract awards are moving away from lowest price
towards value added criteria. In the case of the education sector our focus
will be in the North where our operations already have credibility and a track
record of delivery with customers.
Despite the actions of management and the more focused market approach described
this business is expected to continue to trade at a loss in 2003/2004 albeit at
a lower level than in the year under review. A further note of caution is also
appropriate in relation to the customer termination of one of Birse Build's
larger contracts which was awarded in 2000/2001. Whilst we are in a formal
dialogue with the customer concerned the financial consequences emanating from
that determination at this stage are best estimates only. Until this matter is
finally resolved there is therefore added uncertainty over the short term
performance of the Build business.
Process Engineering
This Division lost #9.5million in 2000/2001, #2.8million in 2001/2002 reducing
those losses to #0.5million in the year under review, which is indicative of the
scale of the success achieved by the management of that business in turning it
around.
With an order book of #25million at 31 May 2003 (31 May 2002: #14million) its
volume of activity will increase in 2003/2004 thereby providing the opportunity
to deliver a positive result for the first time in five years. The one
remaining test of the turnaround is that the system of management controls which
have worked so well at a relatively lower level of turnover function equally as
well at the expected higher levels of activity.
At present, particularly in the water sector, the business focuses on a small
number of customers and aims to align its competencies with the more specialized
skills demanded by those customers. With customer capital and maintenance
spending at high levels and with the next regulatory review likely to increase
spending then the business is well placed to continue with this focused and
selective strategy.
During the year under review the business has formed an alliance with a
manufacturer of odour control equipment. This equipment is fundamental to
certain types of water projects. Along with our alliance partner, we are now in
a position to improve the quality and reliability of delivery in relation to
this important element of the supply chain hence enhancing our ability to
provide an even better final product to our key water customers.
Order Book
At the end of May 2003 secured workload on a consolidated basis stood at
#326million (31 May 2002: #354million). The reduction compared with 2002
relates mainly to the decreased activity in the sports stadia sector of the
Building market. Excluding sports stadia orders, secured workload at the end of
May 2003 was #326million (31 May 2002: #328million).
Amounts Recoverable on Contracts
Included in debtors at 30 April 2003 is an aggregate value of #5.5million (2002:
#6.2million) attributable to two (2002: two) contracts which at that time
remained the subject of arbitration or equivalent proceedings. Since that time
one case has been settled by way of negotiation at book value leaving one
contract still the subject of due process, the book value of which is #5
million. As described in Note 9 in respect of that contract recoverability of
value remains uncertain.
Plant Hire
2003 2002
Turnover Operating Turnover Operating
Profit Profit
#'000 #'000 #'000 #'000
Crawler Cranes 3,797 1,284 3,508 849
Piling Equipment 883 365 942 259
Site Accommodation 4,692 1,715 4,142 1,277
9,372 3,364 8,592 2,385
Analysed between:-
First Half 4,500 1,592 4,157 1,215
Second Half 4,872 1,772 4,435 1,170
9,372 3,364 8,592 2,385
The Crawler Crane and Piling Equipment operations trade as divisions of BPH
Equipment Limited, and our Site Accommodation business operates as The Cabin
Company Limited.
Crawler Cranes and Piling Equipment
Despite a slow start in the first quarter of 2002/2003 the crawler crane
business increased profits by over fifty per cent in the year, taking advantage
of very high demand in the last quarter when a number of machines, particularly
the heavier weight mechanical cranes, were working on a double shift basis.
The upgrading of our crawler crane fleet towards hydraulic machines has
continued with the acquisition of three new hydraulic machines and the sale of
four mechanical cranes. Our stated policy is to retain only those heavier
mechanical machines which perform more efficiently than their hydraulic
counterparts, and therefore represent a more profitable proposition for
customers.
Net capital expenditure on cranes in the year amounted to #758,000 (2001/2002:
#196,000). Return on capital employed was twenty three percent compared with
eighteen percent the previous year.
Although the Piling business increased its operating profit by #106,000 to
#365,000 it is faced with re-balancing its hire fleet in the light of market
demands. Demand for its high frequency variable moment hammers remains
relatively static but this is in stark contrast with its two other hammer types.
Demand for its standard vibro hammers has fallen significantly over the last
five years and is expected to continue falling, whereas demand for hydraulic
drop hammers reflects an opposite pattern. Future capital expenditure will be
aimed at redressing this imbalance in the fleet.
BPH remains the only operator in the market able to supply both crawler cranes
and piling hammers as a single source package. Combined hires of this nature
provide the customer with significant added value and therefore this is a sector
that BPH will continue to focus on.
Site Accommodation
The Cabin Company's penetration of the external market in the year was ahead of
schedule with twenty three percent of turnover now with customers external to
the Group. However, when the second half of the year only is analysed that
figure increases to thirty percent reflecting the rate of progress that
continues to be made. The challenges for this business in the current year are
twofold. Firstly it needs to convert its external business to high volume
repeat sales arrangements, and secondly it needs to ensure that its back office
support keeps pace with the demands of its larger customer base. Capital
expenditure in the year amounted to #2.3million (2001/2002: #1.8million) and the
return on capital achieved was twenty eight percent compared with twenty seven
percent in the previous year.
Commercial Property
2003 2002
Turnover Operating Turnover Operating
Profit Profit
#'000 #'000 #'000 #'000
7,953 3,025 1,217 762
Analysed between:-
First Half - - - 114
Second Half 7,953 3,025 1,217 648
7,953 3,025 1,217 762
Reported turnover represents the aggregate of the initial consideration on land
sales transacted in the year, and contingent consideration in respect of earlier
completions.
At the commencement of the year fourteen acres of land remained to be sold or
developed at our one remaining site, at Warrington. Shortly before the year end
all that land was contracted for sale, giving rise to gross sale proceeds of
#7.5 million of which #1 million is to be deferred for up to twelve months with
the balance payable by way of instalments in the interim. Security over the
land concerned is retained pending receipt of these amounts. This transaction
signals the end of the Group's involvement in property development. Although
monies still remain to be received in respect of contingent consideration in
relation to other sales these revenues are not expected to have a material
impact upon future results.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the Year Ended 30 April 2003
2003 2002
#'000 #'000
Note (As restated)
Turnover 1 483,312 487,238
Cost of sales:
Ordinary trading 2 (446,614) (453,199)
Exceptional operating item 3 (5,500) -
(452,114) (453,199)
Gross profit 31,198 34,039
Administrative expenses 2 (30,095) (28,988)
Operating profit 1 1,103 5,051
Profit on disposal of subsidiary
undertaking 4 - 1,499
Net interest 98 179
Profit on ordinary activities before
taxation 1 1,201 6,729
Taxation 5 (230) (400)
Profit for the financial year 971 6,329
Dividends on equity shares 6 (1,924) (1,924)
(Withdrawn from)/transferred to reserves (953) 4,405
Earnings per ordinary share
- basic 7 0.5p 3.3p
- diluted 7 0.5p 3.3p
- before exceptional items
- basic 7 2.5p 2.5p
- diluted 7 2.5p 2.5p
The above figures relate exclusively to continuing operations except for the
profit on disposal of subsidiary undertaking in the year ended 30 April 2002
(Note 4).
There is no material difference between the results disclosed and the results on
an unmodified historical cost basis.
CONSOLIDATED BALANCE SHEET
As at 30 April 2003
Note 2003 2002
#'000 #'000
Fixed Assets
Tangible assets 16,703 14,187
Current Assets
Stocks - 3,246
Debtors 9 134,736 146,712
Investments 5,121 3,814
Cash at bank and in hand 12,232 10,482
152,089 164,254
Creditors: Amounts falling due within one year 150,212 161,667
Net Current Assets 1,877 2,587
Total Assets Less Current Liabilities 18,580 16,774
Creditors: Amounts falling due after more than one year (9,368) (6,055)
Provisions for Liabilities and Charges - (554)
Net Assets 9,212 10,165
Capital and Reserves
Called up share capital 19,239 19,239
Share premium account 93 93
Special reserve 308 308
Revaluation reserve 607 607
Profit and loss account (11,035) (10,082)
Shareholders' Funds - equity interest 9,212 10,165
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 April 2003
2003 2003 2002 2002
#'000 #'000 #'000 #'000
Net cash inflow from operating activities 7,662 7,419
Returns on investments and servicing of finance
Interest received 347 468
Interest paid (253) (259)
Interest element of finance lease rentals and
hire purchase contracts (44) (42)
Net cash inflow from returns on investments and
servicing of finance 50 167
Taxation
UK Corporation tax received 243 2
Capital expenditure and financial investment
Purchase of tangible fixed assets (5,162) (4,072)
Increase in current asset investments (1,640) -
Sale of tangible fixed assets 904 618
Net cash outflow from investing activities (5,898) (3,454)
Disposal of subsidiary undertaking - 1,499
Dividends paid to equity shareholders (1,924) (1,924)
Cash inflow before management of liquid resources and
financing 133 3,709
Management of liquid resources
Movement in cash held on short term deposits - 12,508
Movement in cash deposits with terms in excess of seven
days 333 (71)
Net cash inflow from management of liquid resources 333 12,437
Financing
Loan advances 1,983 478
Loan repayments (617) (400)
Capital element of finance lease rentals and hire
purchase contracts (82) (124)
Net cash inflow/(outflow) from financing 1,284 (46)
Increase in cash in the year 1,750 16,100
NOTES TO THE PRELIMINARY ANNOUNCEMENT OF RESULTS
For the year ended 30 April 2003
1. Segment information
(a) Turnover and results: Turnover Operating profit
2003 2002 2003 2002
#'000 #'000 #'000 #'000
(As restated)
Contracting 469,672 481,832 (322) 1,404
Plant hire 9,372 8,592 3,364 2,385
Commercial property 7,953 1,217 3,025 762
Group centre - - 536 500
Intra-group (3,685) (4,403) - -
483,312 487,238 6,603 5,051
Exceptional operating item - Contracting (5,500) -
Operating profit 1,103 5,051
Profit on disposal of subsidiary undertaking - 1,499
Profit before interest 1,103 6,550
Net interest 98 179
Profit on ordinary activities before taxation 1,201 6,729
(b) Net assets: 2003 2002
#'000 #'000
(As restated)
Contracting (23,884) (20,198)
Plant hire 11,416 7,936
Commercial property 6,520 7,318
Group centre (4) 1,245
(5,952) (3,699)
Unallocated net assets 15,164 13,864
9,212 10,165
The above analysis reflects the segments by which the Group is managed. All turnover arises from work performed
within the United Kingdom.
2003 2002
#'000 #'000
Unallocated net assets comprise:
Current asset investments 5,121 3,814
Net cash at bank 10,288 9,904
Obligations under finance leases and hire purchase contracts (316) (398)
Corporation tax (53) 238
Deferred taxation 2,048 2,230
Dividends payable on equity shares (1,924) (1,924)
15,164 13,864
Net assets for each segment represents non-interest bearing operating assets
less non-interest bearing operating liabilities.
From 1 May 2002 Group Centre includes the results of three newly incorporated
businesses that principally provide services to other group companies.
The adjustments made to the comparative segmental analysis are summarised below:
-
Operating Net Assets
profit
#'000 #'000
Contracting (1,008) (1,812)
Group Centre 1,008 1,812
- -
2. Restatement of previous year's profit and loss account
Following the reorganisation of the Group's Contracting and Group Centre businesses #5.5million of costs that were
previously included in cost of sales have been reclassified as administrative expenses in the year to 30 April 2002.
3. Exceptional operating item
2003 2002
#'000 #'000
Bad debt in respect of Leicester City plc and its subsidiaries (5,500) -
This bad debt has been recognised in consequence of the insolvency of Leicester City plc and its subsidiaries.
The tax credit attributable to this exceptional loss is #1,650,000.
4. Profit on disposal of subsidiary undertaking
On 24 April 1995 the Company sold its entire shareholding in Birse Homes Limited. During the year to 30 April
2002 under the terms of the sale agreement the Company received deferred consideration net of related costs of
#1,499,000. There are no further amounts due under the terms of this sale agreement.
There was no tax charge in respect of this exceptional receipt.
5. Taxation 2003 2002
#'000 #'000
Corporation tax
United Kingdom corporation tax at 30% on profits of
the year - -
Under provision for prior years (48) -
(48) -
Deferred tax
Timing differences, origination and reversal (420) (1,014)
Adjustments to estimated recoverable amounts of
deferred tax assets arising in previous years' 238 614
(182) (400)
Tax charge on profit on ordinary activities (230) (400)
The corporation tax charge for the year is below the expected rate of 30% - the
differences are explained below:
2003 2002
#'000 #'000
Profit on ordinary activities before tax 1,201 6,729
Expected tax charge at 30% (360) (2,019)
Expenses not deductible for tax purposes (155) (149)
Tax losses 790 2,452
Capital allowances in excess of depreciation (180) 615
Exceptional tax free item - 450
Other timing differences (95) (1,349)
Current year corporation tax - -
Deferred taxation
Asset Liability Net
#'000 #'000 #'000
At 1 May 2002 2,784 (554) 2,230
Profit and loss account (736) 554 (182)
At 30 April 2003 2,048 - 2,048
The amounts of deferred taxation assets/(liabilities) provided and unprovided in the accounts at the rate of 30%
(2002: 30%) are:-
Provided Unprovided
2003 2002 2003 2002
#'000 #'000 #'000 #'000
Tax losses 360 790 5,185 5,620
Capital allowances 545 206 - 55
Other short term timing differences 1,143 1,234 - -
2,048 2,230 5,185 5,675
The deferred tax assets recognised are based upon an estimate of timing differences that will reverse in the
foreseeable future after taking into account the historical performance of group businesses.
6. Dividends on equity shares 2003 2002
#'000 #'000
Interim: 0.375p per ordinary share (2002: 0.375p) 721 721
Final proposed: 0.625p per ordinary share (2002: 0.625p) 1,203 1,203
1,924 1,924
The interim dividend was paid on 6 May 2003. Subject to the approval of shareholders at the Annual General Meeting
the final dividend will be paid on 3 November 2003 to shareholders appearing on the register at the close of
business on 3 October 2003.
7. Earnings per ordinary share 2003 2002
#'000 #'000
The calculation of earnings per ordinary share is based on:
Earnings for basic and diluted earnings per ordinary share calculation 971 6,329
Exceptional items 5,500 (1,499)
Tax on exceptional items (1,650) -
Earnings before exceptional items per ordinary share calculation 4,821 4,830
2003 2002
Thousands Thousands
Weighted average number of shares used in basic earnings per ordinary share
calculation 192,390 192,390
Dilutive effect of options - -
Weighted average number of shares used in diluted earnings per ordinary
share calculation 192,390 192,390
.
8. Net cash at bank 2003 2002
#'000 #'000
Net cash at bank comprises:
Cash at bank - on demand 12,232 10,482
- on deposit with terms in excess of seven days 2,481 2,814
Bank loans:
Due within one year (772) (378)
Due after one year (1,172) (200)
12,769 12,718
9. Debtors; uncertainty relating to amounts recoverable on contracts
Included in debtors is an aggregate value of #5.5million (2002: #6.2million) attributable to contractual amounts
relating to two (2002: two) contracts which are the subject of arbitration or equivalent proceedings.
In consequence of the losses suffered on contracts subject to litigation in previous years the Directors have
reconsidered the recoverability of the amounts attributable to these and other old contracts. Whilst the
Directors believe that they are justified in concluding that these amounts will be realised, the Directors
acknowledge that there remains significant uncertainty. However, it is not possible to quantify the effects.
10. Financial information
The financial information incorporated in this announcement does not constitute full statutory accounts within the
meaning of the Companies Act 1985. Full accounts for the year ended 30 April 2002 upon which Deloitte & Touche
have given an unqualified audit report have been filed with the Registrar of Companies. Full accounts for the
year ended 30 April 2003 upon which Deloitte & Touche have given an unqualified audit report will be filed with
the Registrar of Companies in due course. Neither report contained statements under Section 237(2) or (3) of the
Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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