Interim Results
March 31 2003 - 2:00AM
UK Regulatory
RNS Number:3825J
PM Group PLC
31 March 2003
PM Group Plc
("PM Group" or the "Company")
Interim results for the half year ended 31 December 2002
A leader in the design, manufacturer and service of onboard vehicle weighing
systems for the bulk haulage and waste management industries.
Financial Highlights
* Group turnover at #3.6m (2001 Full Year: #5.8m)
* Operating profit of #305k in line with expectations for the period
* Pre tax profit at #323k
* Basic earnings per share at 1.8p
* Dividend policy to be established following the full year results
Corporate highlights
* Successful move to new enlarged premises, Airdale House
* Further expansion into Europe
* Acquisition of 75% of Waste Collection Systems in Belgium (February 2003)
and its sister company in Holland (March 2003)
* Euro5m order for a waste collection and recording system in Belgium
community, IVVO
Commenting on current trading, Chairman Ken Jackson said:
"The Group has made good progress since float, is enjoying a strong order book,
having now secured preferred supplier status with the majority of the major
waste collection operators in the UK, and we look forward to the future with
confidence."
For further information
PM Group Plc
Ken Jackson, Chairman - 07850 595201
David Hartley, Finance Director - 07802 973524
Tel: 01274 771177 (after today)
Binns & Co PR
Keeley Clarke - 07967 816525
Sophie Morton - 07812 356442
Tel: 0113 242 1171
Williams de Broe
Ed Jones
Tel: 0113 243 1619
Chairman's Statement
Introduction
During the first six months, we concentrated on expanding our European coverage,
upgrading and expanding our manufacturing facilities with the planned relocation
to Airedale House and investing in product development, quality control and
internal systems. These significant investments, both in time and resources, led
to a short-term reduction in net margins as these costs were written off, with a
consequent reduction in operating profitability.
Financial highlights
Turnover in the six months ended 31 December 2002 was #3,567,000, continuing the
trend enjoyed in the previous period. Operating profit for the period was
#305,000, in line with our expectations for the first half of this year. As
planned, the activity towards the end of the period improved, both in terms of
level of orders received and in the increase in operating margins earned.
Review of operations
The cash raised at the time of the flotation was #3.9 million after costs, of
which #3.2 million has been spent on the purchase, refurbishment and equipping
of Airedale House. The continued space pressure at Cutler House (11,500 square
feet) meant that we were unable to capitalise fully on the demand for our
products. The move to Airedale House (42,000 square feet) at the end of
February 2003 should enable us to satisfy current and anticipated demand in the
future.
PM Onboard and PME France continued to perform profitably but small losses were
incurred in PM Benelux, reflecting the costs of developing and bringing new
products to market. We anticipate enjoying the benefits of these investments in
future periods.
In February 2003, we announced the acquisition of a 75% interest in Waste
Collection Systems Belgium NV and in March 2003 we completed the acquisition of
75% of Waste Collection Systems BV, a related business based in Holland. These
acquisitions represent the first extension of our geographic sales coverage and
our product range outside the UK. We are now able to offer a complete range of
products required for large waste collection applications. The first major
order for Euro5 million for a waste collection and recording system in a Belgium
community, IVVO, obtained through WCS Belgium, began its roll out, over two
years, from February.
The group is currently in discussion with potential partners in other areas of
mainland Europe, some of which we anticipate will be concluded during the
current calendar year.
Current trading
The Group is currently enjoying a strong order book, having now secured
preferred supplier status with the majority of the major waste collection
operators in the UK. Customers recognise the operational benefits that our
systems provide, which have software that can be integrated with other vehicle
management systems. Our relationships with vehicle body builders enable us to
work with them to ensure that the operator, and indeed their customers, derive
the optimum benefit from the information that can be generated from our products
and systems.
Future prospects
The acquisitions of the WCS businesses mentioned above create new opportunities
for us. Our software is now being used to produce the invoice for the
collection and billing of domestic waste. This is recognised as a major
development supporting the environmental pressure to reduce the amount of waste
generated by consumers.
In view of the above, your Board remains confident in the future, as growth in
both turnover and profitability continues in the second half following the first
half investment in key personnel and market expansion. As stated in our
Prospectus, we intend to establish a progressive dividend policy following the
full year results.
Ken Jackson
Chairman
31 March 2003
Consolidated Profit and Loss Account
for the six months ended 31 December 2002
Six months Year
ended ended
31 December 30 June
2002 2002
unaudited audited
#000 #000
Group turnover
Continuing operations 3,567 5,445
Acquisitions - 334
Note 1 3,567 5,779
Cost of sales (1,857) (3,003)
Gross profit 1,710 2,776
Distribution costs (183) (290)
Administration costs (1,222) (1,437)
Group operating profit
Continuing operations 305 1,014
Acquisitions - 35
305 1,049
Net interest 18 (24)
Profit on ordinary activities before 323 1,025
taxation
Tax on profit on ordinary activities (98) (357)
Profit on ordinary activities after 225 668
taxation
Dividends on equity shares - (401)
Retained profit for the period 225 267
Basic earnings per share Note 2 1.80p 5.34p
Diluted earnings per share Note 2 1.72p 5.10p
Consolidated Statement of Total Recognised Gains and Losses
Six months Year
ended ended
31 December 30 June
2002 2002
unaudited audited
#000 #000
Profit for the financial period 225 668
Exchange differences - (2)
Total recognised gains for the 225 666
period
Consolidated Balance Sheet
as at 31 December 2002
31 December 30 June
2002 2002
unaudited audited
#000 #000
Fixed assets
Intangible assets 818 764
Tangible assets 2,901 2,012
3,719 2,776
Current assets
Stocks 704 550
Debtors 1,840 2,044
Cash at bank and in hand 701 1,631
3,245 4,225
Creditors: amounts falling due within (1,716) (1,939)
one year
Net current assets 1,529 2,286
Total assets less current liabilities 5,248 5,062
Creditors: amounts falling due after (35) (73)
more than one year
Provisions for liabilities and charges - -
Net assets 5,213 4,989
Capital and reserves
Called up share capital 1,250 1,250
Share premium account 3,269 3,269
Other reserves (82) (82)
Profit and loss account 776 552
Shareholders' funds - equity 5,213 4,989
Consolidated Cash Flow Statement
for the six months ended 31 December 2002
Six months Year
ended ended
31 December 30 June
2002 2002
unaudited audited
#000 #000
Operating profit 305 1,049
Depreciation charges 112 115
Amortisation charges 23 44
Loss on sale of fixed assets - 1
Working capital movements (298) (680)
Net cash flow from operating activities 142 529
Returns on investments and servicing of 18 (24)
finance
Taxation (19) (165)
Capital expenditure and financial (1,077) (1,884)
investment
Acquisitions - (70)
Equity dividends paid - (401)
Financing - 3,902
(Decrease)/increase in cash in the (936) 1,887
period
Reconciliation of net cash flow to
movement in net debt
(Decrease)/increase in cash in the (936) 1,887
period
Cash inflow from increase in debt and - -
lease financing
Net cash acquired with subsidiaries - 170
Translation differences (1) 7
Movement in the year (937) 2,064
Net funds/(debt) at the start of the 1,501 (563)
period
Net funds/(debt) at the end of the 564 1,501
period
Notes to the interim financial statements
For the six months ended 31 December 2002
1 Segmental Reporting
The Group's turnover for the period was generated from one class of
business.
Six months Year
ended ended
31 December 30 June
2002 2002
unaudited audited
#000 #000
Turnover
United Kingdom 2,619 5,157
Rest of Europe 948 622
3,567 5,779
2 Earnings per share
The calculation of basic earnings per ordinary share is based on the profit
for the financial period of #225,000 (2002: #668,000) and the weighted
average number of equity voting shares in issue of 12,500,000 (2002:
12,500,000).
The diluted earnings per ordinary share is based on the profit for the
financial period of #225,000 (2002: #668,000) and the weighted average
number of equity voting shares in issue and outstanding share options of
13,090,000 (2002: 13,097,000).
3 Post balance sheet event
In January 2003 the Company became, inter alia, the subject of a legal
action brought by Bradmount Investments Limited in relation to an alleged
breach of contract. Your board has been advised that the claim is without
foundation and is vigorously defending it.
4 Financial information
The financial information for the six months ended 31 December 2002 has not
been audited or reviewed. The comparative figures for the year ended 30
June 2002 have been derived from the financial statements for the year
ended 30 June 2002.
The summarised financial information in respect of the year ended 30 June
2002 does not constitute financial statements within the meaning of section
240 of the Companies Act 1985. The financial statements for that year have
been reported on by the Company's auditor and delivered to the Registrar of
Companies. The audit report was unqualified and did not contain a
statement under section 237(2) or section 237(3) of the Companies Act 1985.
Company Information
Directors
Ken Jackson Non-executive Chairman
Geoff Mountain Chief Executive
David Hartley Finance Director
Tom Nairn Non-executive Director
Secretary and Registered Office
David Hartley
PM Group Plc
Airedale House
Canal Road
Bradford
BD2 1AG
Company Number
4348343
Auditors
KPMG Audit Plc
1, The Embankment
Neville Street
Leeds
LS1 4DW
Bankers
The Royal Bank of Scotland plc
Yorkshire Corporate Banking Centre
PO Box 126
8 Park Row
Leeds
LS1 1QT
Registrars
Northern Registrars Limited
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
HD8 0LA
Solicitors
Hammonds
2, Park Lane
Leeds
LS3 1ES
Nominated Adviser and Broker
Williams de Broe Plc
4 Park Place
Leeds
LS1 2RU
Website Address
www.pmgroup.plc.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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