TIDMATH
RNS Number : 8085D
ATH Resources plc
09 December 2009
+----------------------------------------+----------------------------------------+
| Press Release | 9 December 2009 |
+----------------------------------------+----------------------------------------+
ATH Resources plc
("ATH Resources" or "the Group")
Preliminary Results
ATH Resources plc, one of the UK's largest coal producers, reports its
preliminary results for the 53 week period ended 4 October 2009.
Highlights
+---------+-----------------------------------------------------------------------+
| * | Turnover up 1% to GBP77.5 million (2008: GBP76.9 |
| | million) despite lower sales volumes of 1.8 million |
| | tonnes of coal (2008: 2.0 million tonnes) |
+---------+-----------------------------------------------------------------------+
| * | Average selling price increased by 13% to GBP43 per |
| | tonne |
+---------+-----------------------------------------------------------------------+
| * | Profit before interest and tax reduced by 28% to |
| | GBP8.6 million (2008: GBP11.9 million) due to the |
| | lack of production from ATH Regeneration |
+---------+-----------------------------------------------------------------------+
| * | Successful planning appeal at Langton after the |
| | year end, allowing 0.5 million tonnes ATH |
| | Regeneration project to commence in 2010 |
+---------+-----------------------------------------------------------------------+
| * | Profit before interest and tax increased in Mining |
| | business by 20% to GBP11.8 million (2008: GBP9.8 |
| | million) |
+---------+-----------------------------------------------------------------------+
| * | Earnings per share reduced by 34% to 10.1 pence per |
| | share (2008: 15.3 pence per share) |
+---------+-----------------------------------------------------------------------+
| * | EBITDA in excess of GBP24 million (2008: GBP25 |
| | million) |
+---------+-----------------------------------------------------------------------+
| * | Full year dividend increased by 2.5% to 6.15 pence |
| | per share (2008: 6 pence per share), with final |
| | dividend of 6.15 pence per share (2008: 2.64 pence |
| | per share) incorporating deferred interim dividend |
| | (2008: interim dividend 3.36 pence per share) |
+---------+-----------------------------------------------------------------------+
| * | Refinance of Group bank debt following the year end |
| | securing three year revolving credit facility, set |
| | initially at GBP30 million |
+---------+-----------------------------------------------------------------------+
| * | New mine of 1.8 million tonnes included in probable |
| | reserves with the potential for an additional 1.5 |
| | million tonnes additional reserve subject to |
| | geological assessment |
+---------+-----------------------------------------------------------------------+
| * | Proven coal reserves up 4% to 4.7 million tonnes |
| | (2008: 4.5 million tonnes) with total reserves |
| | unchanged at 8.2 million tonnes (2008: 8.2 million |
| | tonnes) |
+---------+-----------------------------------------------------------------------+
Commenting on the preliminary results, Tom Allchurch, Chief Executive of ATH
Resources, said:
"The last year has been a challenging one for the Group with an absence of
production, as expected, from our coal tip reclamation and regeneration
business. However, our Mining business grew strongly, debt levels were reduced
and proven reserves increased. With ATH Regeneration's successful planning
appeal at Langton resulting in a return to production in 2010, I am looking
forward to further significant debt reductions and returning to growth over the
next few years."
- Ends -
For further information:
+--------------------------------------------+-------------------------------+
| ATH Resources plc | |
+--------------------------------------------+-------------------------------+
| Tom Allchurch, Chief Executive | Tel: +44 (0) 1302 760 462 |
+--------------------------------------------+-------------------------------+
| tom.allchurch@ath.co.uk | www.ath.co.uk |
| | |
+--------------------------------------------+-------------------------------+
+--------------------------------------------+--------------------------------+
| | |
+--------------------------------------------+--------------------------------+
| Seymour Pierce Limited | |
+--------------------------------------------+--------------------------------+
| Richard Feigen / Sarah Jacobs | Tel: +44 (0)207 107 8008 |
+--------------------------------------------+--------------------------------+
| sarahjacobs@seymourpierce.com | www.seymourpierce.com |
+--------------------------------------------+--------------------------------+
Media enquiries:
+--------------------------------------------+--------------------------------+
| Abchurch | |
+--------------------------------------------+--------------------------------+
| Charlie Jack / George Parker | Tel: +44 (0) 20 7398 7700 |
+--------------------------------------------+--------------------------------+
| george.parker@abchurch-group.com | www.abchurch-group.com |
+--------------------------------------------+--------------------------------+
Chairman's Statement
Business progress
Sales revenue generated by the Mining business was up 18% to GBP77.5 million
(2008: GBP65.7 million) with sales volumes and average prices both increasing.
This resulted in profit before interest and tax in the Mining business
increasing by 20% to GBP11.8 million (2008: GBP9.8 million).
However, ATH Regeneration, as expected, had no production in the year (2008: 0.3
million tonnes) following the refusal by Derbyshire County Council of the
Group's planning application at Langton in Nottinghamshire and the completion of
the Grimethorpe site in 2008.
This resulted in an overall reduction in Group sales volumes of around 10% to
1.8 million tonnes (2008: 2.0 million tonnes) and a consequent fall in earnings.
Although the fall in earnings was disappointing, the Board was delighted to hear
following the year end that the Group was successful in the appeal against the
planning refusal at the Langton site. Plans are well advanced to restart
production from ATH Regeneration in 2010.
Development
The Group has been successful in developing the reserve base with three planning
applications receiving approval in the Mining business, representing in excess
of 2 million tonnes of coal in total. This led to a 4% increase in Proven
reserves to 4.7 million tonnes (2008: 4.5 million tonnes).
Proven and Probable coal reserves at 4 October 2009 are unchanged at 8.2 million
tonnes (2008: 8.2 million tonnes).
Dividends
The Board is recommending a final dividend of 6.15 pence per share (2008: 2.64
pence per share), payable on 27 January 2010, subject to approval by the members
at the Annual General Meeting to be held on 20 January 2010, to members on the
share register at 8 January 2010. The final dividend incorporates the deferred
interim dividend (2008: interim dividend 3.36 pence per share).
Chief Executive's Statement
Review of the period
The results of the Group for the period were adversely affected by the absence
of production at ATH Regeneration and, despite significant profit growth in the
Mining business, profit before tax reduced by 36% to GBP5.8 million (2008:
GBP9.0 million). Cash generated from operations reflected the fall in
profitability but remained in excess of GBP17.7 million (2008: GBP22.6 million)
and, with capital expenditure falling significantly, the Group's net debt fell
by GBP5.9 million during the year to GBP39.4 million (2008: GBP45.3 million).
Operational review
Surface mining
Profit before interest and tax grew by 20% during the year to GBP11.8 million
(2008: GBP9.8 million). There was a full year contribution from the Muir Dean
and Grievehill mines with, as planned, production completing at Grievehill
towards the end of the year and temporarily ceasing at Laigh Glenmuir whilst
planning consent for an extension to the mine is received.
The improved performance would have been even better but high water levels at
the Muir Dean mine and poor weather in the late summer during the opening up of
two mine extensions at Skares Road and Glenmuckloch temporarily hampered
production. Following the implementation of a continuing water management
plan, the Muir Dean site is now back to a normal production profile and,
although further reductions in water levels will be necessary at the mine, coal
production from the site overall may exceed initial expectations. Operations at
the new extensions are now proceeding to expectations.
During the year, new planning consents were received for a new mine at Rigg (1.1
million tonnes) in Dumfries and Galloway and extensions at the Skares Road (0.6
million tonnes) and Glenmuckloch (0.7 million tonnes) sites. A planning
application for a 0.8 million tonnes extension to the Laigh Glenmuir site was
submitted to the local planning authority in September 2009 with the result
expected mid 2010. In addition, an extension to the Muir Dean mine for 0.3
million tonnes was identified during the year. Changes in engineering estimates
resulted in 0.4 million tonnes of reserves being transferred into coal
resources.
Following the year end, a planning application for 1.8 million tonnes of coal
reserves was submitted for a new mine at Netherton, a site close to Skares Road.
The Netherton site will be important going forward with the potential for a
further 1.5 million tonnes of coal reserves, subject to geological assessment.
Regeneration
The business incurred a loss before interest and tax of GBP2.4 million (2008:
profit GBP3.2 million) reflecting the completion of coal production at
Grimethorpe in 2008 and the refusal by Derbyshire County Council to grant the
Group's planning submission for the Langton site.
In November 2009, the Group received confirmation that it was successful in the
appeal against the decision to refuse planning consent at Langton and plans are
well advanced to commence production in 2010. The Group is negotiating coal
sales agreements for the Langton coal prior to commencing plant construction.
The Group remains very positive for the longer term prospects for ATH
Regeneration in the UK. With significantly reduced UK public spending and a
consequent reduction in the subsidy available to clean up sites, the reclamation
of former colliery spoil sites through use of the Group's unique tip washing
technology becomes even more attractive, potentially releasing additional sites
for washing than previously expected.
In addition, the Group continues to develop the business in Australia and,
although progress has been slower than previously expected due to the current
difficult economic climate, active development of the first key opportunity is
ongoing at the mine with the potential client. The Board remains confident of
securing regeneration contracts in Australia.
Reserves
Estimated reserves of recoverable coal at the year end were 8.2 million tonnes
(2008: 8.2 million tonnes). Current planning activity levels are expected to
replace coal produced with new reserves securing production for the foreseeable
future.
+-------------------------+--+---------+--+---------+------------+----------+---------+
| Coal Reserves | | | | | |
+--------------------------------------+--+---------+------------+----------+---------+
| at 4 October 2009 | | | | | | | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| | | | | | | | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| | | | | Proven | Probable | Total | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| | | | | Tonnes | Tonnes | Tonnes | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| Site | | | | 000 | 000 | 000 | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| | | | | | | | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| Skares Road | | | | 600 | - | 600 | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| Netherton | | | | - | 1,800 | 1,800 | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| Laigh Glenmuir | | | | - | 800 | 800 | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| Glenmuckloch | | | | 1,300 | 100 | 1,400 | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| Muir Dean | | | | 1,700 | 300 | 2,000 | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| Rigg | | | | 1,100 | - | 1,100 | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| Total Surface Mining | | | 4,700 | 3,000 | 7,700 | |
+----------------------------+---------+--+---------+------------+----------+---------+
| | | | | | | | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| Langton | | | | - | 500 | 500 | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| Total Regeneration | | | | - | 500 | 500 | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| | | | | | | | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| Group reserves | | | | 4,700 | 3,500 | 8,200 | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| | | | | | | | |
+-------------------------+--+---------+--+---------+------------+----------+---------+
| The information in this announcement relating to exploration results, mineral |
| resources or mineral reserves is based on information compiled by Mr Peter Morgan, |
| a full time employee of the Group, who is a Fellow of the Institute of Materials, |
| Minerals and Mining. Mr Morgan has sufficient experience which is relevant to the |
| style of mineralisation and type of deposit under consideration. He has reviewed |
| and consents to the inclusion in the announcement of the matters based on his |
| information in the form and context in which they appear. A glossary of terms is |
| available on our website - www.ath.co.uk. |
+-------------------------+--+---------+--+---------+------------+----------+---------+
Market
Demand for coal in the UK is likely to reduce to less than 50 million tones
during 2009 with indigenous coal production meeting approximately one third of
total usage.
International coal prices reduced from their 2008 peak during the period but
ended the year around $70 per tonne despite difficult economic conditions.
Forward price indices indicate a significant increase in prices over the next
two to three years to over $100 per tonne by 2012.
The Group held agreements at the period end with a number of major UK
electricity generators covering the supply of 3.3 million tonnes of coal up to
2012. Since the period end, agreement has been reached in principle with a major
UK generating company for an extension of contract volumes which will result in
an increase in pricing per tonne under the current contract, subject to certain
quality and other criteria being satisfied.
Health and safety
The Board understands the potentially hazardous nature of the work undertaken in
the Group's operations and takes very seriously its responsibilities for health
and safety. Operational sites have a nominated and qualified health and safety
manager and employees are regularly trained in the Group's processes which are
aimed to exceed HSE best practice.
The Board was pleased that the business was awarded a Silver RoSPA award during
the year reflecting a significant amount of hard work in maintaining and
building upon good HSE behaviours and systems throughout the business.
Staff
The Group recognises the critical importance of its employees in the continued
growth and success of the business. The Group employs around 350 skilled,
innovative and highly motivated people and continuous development is delivered
through structured and targeted training programmes.
The business has created a training and assessment school to ensure that
employees have the necessary skills and competence for their roles. This
commitment to training and development has resulted in 80% of the workforce
qualified to NVQ standards on their chosen piece of equipment, which together
with other training initiatives, means that ATH has one of the best qualified
and competent workforces within the industry.
The Board would like to join me in thanking our people for all of the efforts
they have made in the past year and the commitment that they continue to
demonstrate in delivering the success of the business.
Summary
The absence of production at ATH Regeneration has led to a challenging year for
the Group. However, the Mining business has recovered strongly and increases in
proven reserves and average selling prices, together with reducing debt levels,
demonstrate the underlying strength of the business. With success at the Langton
appeal, the Group is well placed to return to growth in turnover and earnings
over the next few years.
Financial review
The results are presented for the 53 week period to 4 October 2009 against a 52
week period to 28 September 2008.
Revenue
The Group's revenue for the year was GBP77.5 million (2008: GBP76.9 million) on
sales of 1.8 million tonnes (2008: 2.0 million tonnes). The average coal price
was GBP43 per tonne (2008: GBP38 per tonne).
Revenues from the Mining business were GBP77.5 million (2008: GBP65.7 million)
and from ATH Regeneration were nil (2008: GBP11.2 million).
The increase in revenue from the Mining business reflects an increase in sales
volumes and higher coal prices. Sales volumes benefitted from a full year
contribution from the Muir Dean and Grievehill mines offset by the temporary
cessation of production from the Laigh Glenmuir mine. Higher coal prices were
secured on the renewal of existing supply contracts and new contracts in certain
industrial markets.
Revenues from ATH Regeneration reflected the completion of production at the
Grimethorpe site in 2008.
Profit before interest and tax
Profit before interest and tax ("PBIT") was GBP8.6 million (2008: GBP11.9
million) and earnings before interest, tax and depreciation were GBP24.1 million
(2008: GBP25.7 million).
The return on PBIT of 23% (2008: 35%) reflects the loss of lower cost production
from ATH Regeneration and an increase in depreciation following the Group's
investment programme offset by the increase in average selling price.
Finance costs
Net finance costs of GBP2.9 million (2008: GBP2.9 million) were charged in the
year. Hire purchase interest charges were GBP1.3 million (2008: GBP1.1 million)
reflecting the full year impact of the previous year's investment. GBP0.6
million (2008: GBP0.4 million) was charged in respect of the unwinding of the
discount on restoration provisions. Lower interest rates during the year were
the primary reason for the reduction in bank and overdraft interest charges of
GBP0.9 million (2008: GBP1.3 million).
Taxation
The effective rate of tax was 30% (2008: 32%) compared with a standard rate of
tax of 28% (2008: 29%). The difference between the actual and standard rate is
primarily due to expenses that are not allowable against tax.
Earnings per share
Earnings per share were 10.1 pence (2008: 15.3 pence), a decrease of 34%. Fully
diluted earnings per share, taking into account shares expected to be issued
under employee share schemes, were 10.1 pence (2008: 14.9 pence).
Net assets
Net assets were GBP37.2 million (2008: GBP34.2 million). The rate of capital
expenditure has fallen significantly from 2008 with spend in 2009 of GBP7.5
million (2008: GBP27.9 million).
Cash flows
The Group generates strong cash flows from its operations, with a net cash
inflow from operations of GBP17.8 million (2008: GBP22.6 million). Cash inflow
before financing grew by GBP2 million to GBP7.2 million (2008: GBP5.2 million).
Repayment of debt was a significant feature of the year with total repayments of
GBP15.3 million which contributed to a total net cash outflow of GBP6.4 million
(2008: GBP9.3 million inflow). The cash inflow in 2008 benefitted from a
significant cash inflow from a refinancing of the Group's debt.
Financing
Bank loans and hire purchase liabilities reduced by GBP12.4 million to GBP34.1
million and, in the year, a working capital facility was put in place with
amounts drawn during the period of GBP5.6 million, resulting in total debt at
the period end of GBP39.7 million.
During the year, the Group was successful in attracting new and extending
existing bonding facilities totalling GBP11 million to meet the requirements of
local authorities and land owners to cover the costs of final restoration of
active sites in the Mining business. Further bonding cover will be required in
the future to open up new sites as and when required.
Following the year end, the Group agreed a new GBP30 million revolving credit
facility ("RCF") in a club deal with HSBC and Yorkshire Bank. The RCF extends
for a three year period ending in November 2012. Maximum permitted borrowings
under the RCF are GBP30 million during the first year of the new arrangements,
GBP27.5 million during the second year and GBP22.5 million during the final
year.
The new arrangements secure attractive, long term funding for the Group and
provide a more appropriate capital structure and the financial resources to
continue developing surface mining and coal recovery projects within the UK. The
RCF replaces the Group's existing term debt arrangements, which were due to
expire in February 2011, and working capital facilities. The combined
outstanding balances under the previous arrangements totalled GBP19.8 million at
4 October 2009.
Steven Beaumont
Finance Director
Consolidated Income Statement
For the year ended 4 October 2009
+--------------------------------------+-----------+----------+----------+
| | | 2009 | 2008 |
+--------------------------------------+-----------+----------+----------+
| | | GBP000 | GBP000 |
+--------------------------------------+-----------+----------+----------+
| Revenue | | 77,465 | 76,851 |
+--------------------------------------+-----------+----------+----------+
| Cost of sales | | (58,581) | (55,429) |
+--------------------------------------+-----------+----------+----------+
| Gross profit | | 18,884 | 21,422 |
+--------------------------------------+-----------+----------+----------+
| Other operating income | | 109 | 353 |
+--------------------------------------+-----------+----------+----------+
| Administrative expenses | | (10,367) | (9,872) |
+--------------------------------------+-----------+----------+----------+
| Operating profit | | 8,626 | 11,903 |
+--------------------------------------+-----------+----------+----------+
| Finance costs | | (2,867) | (2,895) |
+--------------------------------------+-----------+----------+----------+
| Profit before taxation | | 5,759 | 9,008 |
+--------------------------------------+-----------+----------+----------+
| Tax expense | | (1,731) | (2,878) |
+--------------------------------------+-----------+----------+----------+
| Profit for the year | | 4,028 | 6,130 |
+--------------------------------------+-----------+----------+----------+
| Basic earnings per share | | 10.1p | 15.3p |
+--------------------------------------+-----------+----------+----------+
| Diluted earnings per share | | 10.1p | 14.9p |
+--------------------------------------+-----------+----------+----------+
There are no recognised gains or losses other than as stated in the income
statement.
Consolidated Balance Sheet
As at 4 October 2009
Company number 4928463
+---------------------------+---------+----------+---------+----------+
| ASSETS | | 2009 | | 2008 |
| | | GBP000 | | GBP000 |
+---------------------------+---------+----------+---------+----------+
| Non-current assets | | | | |
+---------------------------+---------+----------+---------+----------+
| Intangible assets | | 7,657 | | 7,657 |
+---------------------------+---------+----------+---------+----------+
| Property, plant and | | 78,661 | | 83,458 |
| equipment | | | | |
+---------------------------+---------+----------+---------+----------+
| | | 86,318 | | 91,115 |
+---------------------------+---------+----------+---------+----------+
| Current assets | | | | |
+---------------------------+---------+----------+---------+----------+
| Inventories | | 19,626 | | 14,967 |
+---------------------------+---------+----------+---------+----------+
| Trade and other | | 9,621 | | 11,133 |
| receivables | | | | |
+---------------------------+---------+----------+---------+----------+
| Cash and cash equivalents | | 370 | | 1,207 |
+---------------------------+---------+----------+---------+----------+
| | | 29,617 | | 27,307 |
+---------------------------+---------+----------+---------+----------+
| Total assets | | 115,935 | | 118,422 |
+---------------------------+---------+----------+---------+----------+
| | | | | |
+---------------------------+---------+----------+---------+----------+
| LIABILITIES | | | | |
+---------------------------+---------+----------+---------+----------+
| Current liabilities | | | | |
+---------------------------+---------+----------+---------+----------+
| Trade and other payables | | (13,668) | | (14,899) |
+---------------------------+---------+----------+---------+----------+
| Tax liabilities | | (2,234) | | (1,443) |
+---------------------------+---------+----------+---------+----------+
| Financial liabilities - | | (19,374) | | (14,649) |
| borrowings | | | | |
+---------------------------+---------+----------+---------+----------+
| Final void provision | | (3,337) | | (1,811) |
+---------------------------+---------+----------+---------+----------+
| | | (38,613) | | (32,802) |
+---------------------------+---------+----------+---------+----------+
| Non-current liabilities | | | | |
+---------------------------+---------+----------+---------+----------+
| Financial liabilities - | | (20,346) | | (31,810) |
| borrowings | | | | |
+---------------------------+---------+----------+---------+----------+
| Final void provision | | (15,123) | | (15,018) |
+---------------------------+---------+----------+---------+----------+
| Deferred tax liabilities | | (4,334) | | (4,208) |
+---------------------------+---------+----------+---------+----------+
| Other provisions | | (338) | | (338) |
+---------------------------+---------+----------+---------+----------+
| | | (40,141) | | (51,374) |
+---------------------------+---------+----------+---------+----------+
| Total liabilities | | (78,754) | | (84,176) |
+---------------------------+---------+----------+---------+----------+
| Net assets | | 37,181 | | 34,246 |
+---------------------------+---------+----------+---------+----------+
| | | | | |
+---------------------------+---------+----------+---------+----------+
| Equity | | | | |
+---------------------------+---------+----------+---------+----------+
| Share capital | | 200 | | 200 |
+---------------------------+---------+----------+---------+----------+
| Share premium | | 27,855 | | 27,855 |
+---------------------------+---------+----------+---------+----------+
| Share-based payment | | 1,647 | | 1,682 |
| reserve | | | | |
+---------------------------+---------+----------+---------+----------+
| Retained earnings | | 7,479 | | 4,509 |
+---------------------------+---------+----------+---------+----------+
| Total equity | | 37,181 | | 34,246 |
+---------------------------+---------+----------+---------+----------+
The financial statements were approved by the Board of Directors and authorised
for issue on 8 December 2009 and are signed on its behalf by:
S Beaumont
Group Finance Director and Company Secretary
Consolidated Cash Flow Statement
For the year ended 4 October 2009
+------------------------------------+--+---------+----------+---------+----------+
| | | | 2009 | | 2008 |
| | | | GBP000 | | GBP000 |
+------------------------------------+--+---------+----------+---------+----------+
| Cash flows from operating | | | | | |
| activities | | | | | |
+------------------------------------+ +---------+----------+---------+----------+
| Cash generated from operations | | | 17,777 | | 22,588 |
+------------------------------------+ +---------+----------+---------+----------+
| Interest paid | | | (2,546) | | (2,558) |
+------------------------------------+ +---------+----------+---------+----------+
| Tax paid | | | (813) | | (1,542) |
+------------------------------------+--+---------+----------+---------+----------+
| Net cash from operating activities | | | 14,418 | | 18,488 |
+------------------------------------+ +---------+----------+---------+----------+
| Cash flows from investing | | | | | |
| activities | | | | | |
+------------------------------------+ +---------+----------+---------+----------+
| Proceeds from sale of property, | | | 20 | | 197 |
| plant and equipment | | | | | |
+------------------------------------+ +---------+----------+---------+----------+
| Interest received | | | 3 | | 64 |
+------------------------------------+ +---------+----------+---------+----------+
| Government grant received | | | - | | 204 |
+------------------------------------+ +---------+----------+---------+----------+
| Purchases of property, plant and | | | (7,252) | | (13,624) |
| equipment | | | | | |
+------------------------------------+ +---------+----------+---------+----------+
| Acquisition of subsidiary | | | - | | (150) |
+------------------------------------+--+---------+----------+---------+----------+
| Net cash used in investing | | | (7,229) | | (13,309) |
| activities | | | | | |
+------------------------------------+--+---------+----------+---------+----------+
| Cash flows from financing | | | | | |
| activities | | | | | |
+------------------------------------+--+---------+----------+---------+----------+
| Dividends paid | | | (1,058) | | (4,649) |
+------------------------------------+--+---------+----------+---------+----------+
| Repayment of borrowings | | | (5,344) | | (6,323) |
+------------------------------------+--+---------+----------+---------+----------+
| Payment of finance lease | | | (9,938) | | (7,899) |
| liabilities | | | | | |
+------------------------------------+--+---------+----------+---------+----------+
| Proceeds from the issue of share | | | - | | 293 |
| capital | | | | | |
+------------------------------------+--+---------+----------+---------+----------+
| New asset-backed finance raised | | | 2,725 | | - |
+------------------------------------+--+---------+----------+---------+----------+
| New bank loans raised | | | - | | 22,700 |
+------------------------------------+--+---------+----------+---------+----------+
| Net cash (used in)/from financing | | | (13,615) | | 4,122 |
| activities | | | | | |
+------------------------------------+--+---------+----------+---------+----------+
| Net (decrease)/increase in cash | | | (6,426) | | 9,301 |
| and cash equivalents | | | | | |
+------------------------------------+ +---------+----------+---------+----------+
| Cash and cash equivalents at | | | 1,207 | | (8,094) |
| beginning of period | | | | | |
+------------------------------------+--+---------+----------+---------+----------+
| Cash and cash equivalents at end | | | (5,219) | | 1,207 |
| of period | | | | | |
+------------------------------------+--+---------+----------+---------+----------+
Basis of accounting
The financial statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS"). The financial statements have also been
prepared in accordance with IFRS adopted by the European Union and therefore
these financial statements comply with Article 4 of the EU IAS Regulation.The
financial statements have been prepared on the historical cost basis, except for
the revaluation of financial instruments which are carried at fair value.
Accounting period
The Company has drawn up its accounts for the 53 week period to 4 October 2009
(52 week period to 28 September 2008).
Notes to the Financial Statements
For the year ended 4 October 2009
1 Finance costs
+----------------------------------------------+------------+------------+--------+
| | | 2009 | 2008 |
+----------------------------------------------+ +------------+--------+
| | | GBP000 | GBP000 |
+----------------------------------------------+------------+------------+------------+
| Bank overdraft and loan interest | | 947 | 1,349 |
+----------------------------------------------+ +------------+--------+
| Finance leases and hire purchase contracts | | 1,329 | 1,145 |
| interest | | | |
+----------------------------------------------+ +------------+------------+
| Final void provision discount | | 591 | 401 |
+----------------------------------------------+------------+------------+------------+
| | | 2,867 | 2,895 |
+----------------------------------------------+------------+------------+--------+
2 Tax expense
+------------------------------------------------------------+--------+--------+
| Tax recognised in the Income Statement | | |
+------------------------------------------------------------+--------+--------+
| | 2009 | 2008 |
+------------------------------------------------------------+--------+--------+
| | GBP000 | GBP000 |
+------------------------------------------------------------+--------+--------+
| United Kingdom corporation tax | | |
+------------------------------------------------------------+--------+--------+
| On profits for the year | 1,663 | 2,360 |
+------------------------------------------------------------+--------+--------+
| Adjustment in respect of prior periods | (58) | (87) |
+------------------------------------------------------------+--------+--------+
| Total current tax recognised | 1,605 | 2,273 |
+------------------------------------------------------------+--------+--------+
| | | |
+------------------------------------------------------------+--------+--------+
| Deferred taxation charge: | | |
+------------------------------------------------------------+--------+--------+
| - accelerated capital allowances | (54) | 518 |
+------------------------------------------------------------+--------+--------+
| - on share based payments | 180 | 87 |
+------------------------------------------------------------+--------+--------+
| Total deferred tax recognised | 126 | 605 |
+------------------------------------------------------------+--------+--------+
| | | |
+------------------------------------------------------------+--------+--------+
| Total tax expense recognised | 1,731 | 2,878 |
+------------------------------------------------------------+--------+--------+
| | | |
+------------------------------------------------------------+--------+--------+
| The total tax charge assessed for the year differs from the | |
| standard rate of UK tax as reconciled below: | |
+---------------------------------------------------------------------+--------+
| | 2009 | 2008 |
+------------------------------------------------------------+--------+--------+
| | GBP000 | GBP000 |
+------------------------------------------------------------+--------+--------+
| | | |
+------------------------------------------------------------+--------+--------+
| Profit on ordinary activities before taxation | 5,759 | 9,008 |
+------------------------------------------------------------+--------+--------+
| | | |
+------------------------------------------------------------+--------+--------+
| Profit before taxation multiplied by standard rate of tax | 1,613 | 2,612 |
| for the period of 28% (2008: 29%) | | |
+------------------------------------------------------------+--------+--------+
| Expenses not deductible for tax purposes | 85 | 306 |
+------------------------------------------------------------+--------+--------+
| Depreciation not allowable for tax purposes | 28 | 214 |
+------------------------------------------------------------+--------+--------+
| Adjustments to deferred tax relating to prior years | (117) | - |
+------------------------------------------------------------+--------+--------+
| Tax relief on exercise of share options | - | (12) |
+------------------------------------------------------------+--------+--------+
| Impact of deferred tax on share options | 180 | 87 |
+------------------------------------------------------------+--------+--------+
| Effect of change in tax rates | - | (242) |
+------------------------------------------------------------+--------+--------+
| Adjustment in respect of prior periods | (58) | (87) |
+------------------------------------------------------------+--------+--------+
| Total tax expense | 1,731 | 2,878 |
+------------------------------------------------------------+--------+--------+
| Effective tax rate | 30.1% | 32.0% |
+------------------------------------------------------------+--------+--------+
3 Earnings per share
Basic earnings per share is calculated on profit after tax of GBP4,028,000
(2008: GBP6,130,000) and a weighted average number of shares of 40,075,158
(2008: 40,062,310). The diluted earnings per share takes account of share
options outstanding to employees as set out below:
+--------------------------------------------+----------+------------+------------+
| | | 2009 | 2008 |
+--------------------------------------------+ +------------+------------+
| | | Number | Number |
+--------------------------------------------+----------+------------+------------+
| Weighted average number of shares in issue | | 40,075,158 | 40,062,310 |
+--------------------------------------------+ +------------+------------+
| Weighted average number of dilutive share | | - | 1,087,910 |
| options | | | |
+--------------------------------------------+----------+------------+------------+
| Total number of shares for calculating | | 40,075,158 | 41,150,220 |
| diluted earnings per share | | | |
+--------------------------------------------+----------+------------+------------+
4 Cash flows
+----------------------------------------+-------+-------+----+---------+---------+
| | | | | 2009 | 2008 |
+----------------------------------------+-------+-------+----+---------+---------+
| | | | | GBP000 | GBP000 |
+----------------------------------------+-------+-------+----+---------+---------+
| Profit before tax | | | | 5,759 | 9,008 |
+----------------------------------------+-------+-------+----+---------+---------+
| Adjustments for: | | | | | |
+----------------------------------------+-------+-------+----+---------+---------+
| Finance costs | | | | 2,867 | 2,895 |
+----------------------------------------+-------+-------+----+---------+---------+
| Depreciation of property, plant and | | | | 15,464 | 13,466 |
| equipment | | | | | |
+----------------------------------------+-------+-------+----+---------+---------+
| Loss/(profit) on disposal of fixed | | | | 22 | (24) |
| assets | | | | | |
+----------------------------------------+-------+-------+----+---------+---------+
| Loss on disposal of investments | | | | - | 1 |
+----------------------------------------+-------+-------+----+---------+---------+
| Share-based payment (credit)/expense | | | | (35) | 369 |
+----------------------------------------+-------+-------+----+---------+---------+
| Operating cash flows before movements | | | | 24,077 | 25,715 |
| in working capital | | | | | |
+----------------------------------------+-------+-------+----+---------+---------+
| Increase in inventories | | | | (4,659) | (7,174) |
+----------------------------------------+-------+-------+----+---------+---------+
| Decrease in receivables | | | | 1,512 | 96 |
+----------------------------------------+-------+-------+----+---------+---------+
| (Decrease)/increase in payables and | | | | (3,153) | 3,951 |
| provisions | | | | | |
+----------------------------------------+-------+-------+----+---------+---------+
| Cash generated from operations | | | | 17,777 | 22,588 |
+----------------------------------------+-------+-------+----+---------+---------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR CKFKDFBDDNBK
ATH Resources (LSE:ATH)
Historical Stock Chart
From Jun 2024 to Jul 2024
ATH Resources (LSE:ATH)
Historical Stock Chart
From Jul 2023 to Jul 2024
