RNS No 5421r
BANDT PLC
12th November 1998
BANDT PLC
Bandt plc, a provider of scaffolding and other industrial services to
construction and manufacturing businesses throughout the UK,
today announces interim results for the six months ended 4 October 1998
HIGHLIGHTS
1998 1997 Change
# #
- Turnover continuing operations 39.5m 35.9m +10%
- Profit before tax 4.0m 2.7m +50%
- Earnings per share 2.6p 1.8p +44%
- Dividend per share 0.5p 0.4p +25%
- Gearing 9% 25% -
Bill Andrews, Chairman, comments:-
"During the last six months, the senior management of the Group has
invested much time and effort in researching and marketing the
broader range of integrated services we now have to offer,
particularly to our industrial customer base, which has received an
encouraging response. The potential to expand our present share of
the industrial market, together with identified acquisition
opportunities to increase geographic coverage, provides the board
with confidence for the future, whilst acknowledging the growing
uncertainty of the economic outlook in the U.K."
For further information, please contact:-
Bandt plc On 12 November: 0171 253 2252
Richard Wilson, Chief Executive After: 01256 477760
Dick Rutter, Finance Director
Ludgate Communications
Tim Davis 0171 253 2252
BANDT PLC
INTERIM REPORT 1998/99 - CHAIRMAN'S STATEMENT
It is pleasing to be able to report a good overall trading
performance for the Group for the six months ended 4 October 1998
which has generated an increase of 50% in pre-tax profits to #4.0m,
with turnover from continuing operations increasing by 10% to #39.5m.
This result reflects further margin improvement by Kwikform, the
inclusion for the period of Fincham Industrial Services which has
continued its encouraging start in the Group, increased rental income
from the Group's freehold and long leasehold properties and the
absence of exceptional charges.
After a tax charge of under 10%, which reflects the use of tax losses
brought forward, earnings per share have increased by 44% to 2.6p and
by 30% in comparison to the pre-exceptional earnings per share for
1997.
In consideration of these results the board has declared an interim
dividend of 0.5p per share (1997: 0.4p) which will be paid on 6
January 1999 to shareholders on the register on 18 December 1998.
Cash inflow of #0.8m in the period was sound. Cash was generated
from the good trading performance and the sale for #3.7m of
investment properties and invested in capital expenditure of #5.3m
(1997: #3.9m) and an increase in working capital of #2.9m primarily
to fund the seasonal increase in activity.
Gearing was 9% at the period end compared with 25% a year ago and 12%
at our March year end. We expect to realise significant cash sums
from the sale of our Dundee property at or shortly after our March
1999 year end, and these funds, together with the expected inflow of
cash from operations in the second half, underpin our capacity to
pursue our growth strategy.
During the last six months, the senior management of the Group has
invested much time and effort in researching and marketing the
broader range of integrated services we now have to offer,
particularly to our industrial customer base, which has received an
encouraging response. The potential to expand our present share of
the industrial market, together with identified acquisition
opportunities to increase geographic coverage, provides the board
with confidence for the future, whilst acknowledging the growing
uncertainty of the economic outlook in the U.K.
WG Andrews
Chairman
11 November 1998
Bandt plc
Unaudited Profit and Loss Account
Six months Six months Year
ended ended ended
4 Oct 1998 5 Oct 1997 5 April 1998
#000 #000 #000
Turnover (note 1)
Continuing operations 39,480 35,868 74,306
Discontinued operations - 3,019 3,019
-------- -------- --------
Total 39,480 38,887 77,325
======== ======== ========
Operating profit (note 1)
Continuing operations 4,277 3,234 7,122
Exceptional operating costs:
Vacant property provisions - (132) (980)
-------- -------- --------
4,277 3,102 6,142
Discontinued operations - (60) (60)
-------- -------- --------
Total operating profit 4,277 3,042 6,082
Exceptional items
Loss on disposal of businesses:
- net tangible assets - (200) (212)
-------- -------- --------
Profit on ordinary activities
before interest 4,277 2,842 5,870
Interest (payable)/receivable
and similar charges (267) (162) (472)
-------- -------- --------
Profit on ordinary activities
before taxation 4,010 2,680 5,398
Tax on ordinary activities
(note 2) (345) (230) (537)
-------- -------- --------
Profit on ordinary activities
after taxation 3,665 2,450 4,861
Dividends (699) (560) (1,956)
-------- -------- --------
Retained profit for the period 2,966 1,890 2,905
======== ======== ========
Earnings per ordinary share
(note 3) 2.6p 1.8p 3.5p
======== ======== ========
Earnings per ordinary share
before exceptional items (note 3) 2.6p 2.0p 4.3p
======== ======== ========
Earnings per ordinary share are the same whether calculated on a
basic or diluted basis.
Bandt plc
Unaudited Balance Sheet
As at As at As at
4 Oct 1998 5 Oct 1997 5 April 1998
#000 #000 #000
Fixed assets
Tangible assets 35,842 35,543 37,376
Investment in own shares 575 604 582
-------- -------- --------
36,417 36,147 37,958
-------- -------- --------
Current assets
Stocks 2,111 2,203 1,881
Debtors (note 4) 20,382 18,854 17,506
Cash 1,091 8 276
-------- -------- --------
23,584 21,065 19,663
Creditors due within one
year (note 4) (20,862) (21,552) (19,819)
-------- -------- --------
Net current assets/
(liabilities) 2,722 (487) (156)
-------- -------- --------
Total assets less current
liabilities 39,139 35,660 37,802
Creditors due after one
year (note 4) (1,400) (2,800) (2,803)
Provisions for liabilities
and charges (1,628) (1,073) (1,856)
-------- -------- --------
Net assets 36,111 31,787 33,143
======== ======== ========
Capital and reserves
Called up share capital 7,108 7,108 7,108
Share premium account 2 - -
Revaluation reserve 8,229 9,691 10,338
Special reserve 27,979 28,287 27,979
Profit and loss account (7,207) (13,299) (12,282)
-------- -------- --------
36,111 31,787 33,143
======== ======== ========
Comprising:
Equity shareholders' funds 36,041 31,717 33,073
Non-equity shareholders' funds 70 70 70
-------- -------- --------
36,111 31,787 33,143
======== ======== ========
Gearing 9% 25% 12%
Reconciliation of movements in shareholders' funds
Profit for the period 3,665 2,450 4,861
Dividends (699) (560) (1,956)
-------- -------- --------
2,966 1,890 2,905
Other recognised gains and
losses relating to the year - - 649
Issue of ordinary shares 2 - -
Goodwill arising on acquisition - (7,069) (7,377)
-------- -------- --------
Net increase/(reduction)
in funds 2,968 (5,179) (3,823)
Opening shareholders' funds 33,143 36,966 36,966
-------- -------- --------
Closing shareholders' funds 36,111 31,787 33,143
======== ======== ========
Bandt plc
Unaudited Summary Cash Flow Statement
Six months Six months Year
ended ended ended
4 Oct 1998 5 Oct 1997 5 April 1998
#000 #000 #000
Net cash inflow from
operating activities (note 5) 3,656 4,481 12,385
Net cash outflow from returns
on investments and servicing
of finance (84) (176) (275)
Taxation (140) (102) (888)
Capital expenditure and financial
investment
Capital expenditure (5,273) (3,857) (8,107)
Fixed asset disposals 4,216 562 1,141
-------- -------- --------
(1,057) (3,295) (6,966)
Acquisitions and disposals
Sale of businesses 150 1,629 2,920
Purchase of subsidiaries (300) (2,543) (2,743)
-------- -------- --------
(150) (914) 177
Equity dividends paid (1,395) (1,116) (1,674)
-------- -------- --------
Cash inflow/(outflow) before
management of liquid resources
and financing 830 (1,122) 2,759
Financing
Issue of ordinary shares 2 - -
Receipt of loans under
bank facility - 2,000 -
Repayment of principal under
finance leases (17) (59) (109)
-------- -------- --------
(15) 1,941 (109)
-------- -------- --------
Increase in cash in the period 815 819 2,650
======== ======== ========
Bandt plc
Notes
1. Profit and loss
The analysis of the Group's turnover and operating profit by class of
business is set out below:
Six months Six months Year
ended ended ended
4 Oct 1998 5 Oct 1997 5 April 1998
#000 #000 #000
Turnover
Contracting and hire 38,973 35,616 73,626
Property investments 507 252 680
-------- -------- --------
Total continuing activities 39,480 35,868 74,306
Stockholding and distribution
(discontinued) - 3,019 3,019
-------- -------- --------
39,480 38,887 77,325
======== ======== ========
Operating profit/(loss)
Contracting and hire 3,990 3,168 6,796
Property investments 287 (66) (654)
-------- -------- --------
Total continuing activities 4,277 3,102 6,142
Stockholding and distribution
(discontinued) - (60) (60)
-------- -------- --------
4,277 3,042 6,082
======== ======== ========
2. Taxation
The Group's tax charge should be reduced by some #4m over the current
and next three years. This is due primarily to losses brought
forward, capital allowances not claimed and ACT previously written
off. About #0.9m of this benefit has crystallised in this period.
3. Earnings per share
The basic and diluted earnings per share have been calculated on the
profit after tax and preference dividends in each period and on
139,499,965 (1997/98: 139,490,965) ordinary shares, being the number
of ordinary shares in issue, excluding those held in the ESOT
(1,265,000 shares) and ranking for dividend during the period.
An alternative measure of earnings per share, excluding exceptional
items, is set out below:
Six months Six months Year
ended ended ended
4 Oct 1998 5 Oct 1997 5 April 1998
Pence Pence Pence
per share per share per share
Earnings per share
(net basis) 2.6 1.8 3.5
Loss for vacant
property provisions - 0.1 0.7
Loss on disposal of
business assets - 0.1 0.1
------ -------- -------
Earnings per share
excluding exceptionals 2.6 2.0 4.3
====== ======== =======
4. FRS12
At this stage it is not yet possible to fully quantify the
implications of FRS12 - Provisions, contingent liabilities and
contingent assets, relating to the Group's outstanding insurance
claims. It is estimated that the results of adhering to FRS12 would
be to increase the debtors and creditors by #6m (1997/98: #6m). These
estimates have not been included in the balance sheet as at 4
October 1998 nor have the comparatives been restated. It is
anticipated that there will be no impact on the profit and loss
account. The Group intends to fully comply with FRS12 in its
financial statements for the year ended 4 April 1999.
5. Cash flow
Reconciliation of operating profit to net cash inflow from operating
activities:
Six months Six months Year
ended ended ended
4 Oct 1998 5 Oct 1997 5 April 1998
#000 #000 #000
Operating profit 4,277 3,042 6,082
Depreciation on tangible
fixed assets 2,681 2,317 4,757
Write down of investment
in own shares 7 20 42
Loss on disposal of
tangible fixed assets - - 46
Increase in stocks (230) (451) (211)
Increase in debtors (3,397) (31) (777)
Increase/(decrease) in creditors 704 (210) 1,916
(Decrease)/increase in
provisions for
liabilities and charges (386) (206) 530
-------- -------- --------
Net cash inflow from
operating activities 3,656 4,481 12,385
======== ======== ========
Analysis of net debt 5 April 1998 Cashflow 4 Oct 1998
#000 #000 #000
Cash in hand, at bank 276 815 1,091
-----
Increase in cash in the period 815
Debt (4,200) - (4,200)
Finance leases (35) 17 (18)
-------- ----- --------
Total (3,959) 832 (3,127)
======== ===== ========
Analysis of vacant property provision
As at As at As at
4 Oct 1998 5 Oct 1997 5 April 1998
#000 #000 #000
Opening balance 1,856 1,228 1,228
Utilised in period (386) (338) (450)
Interest in respect of
NPV adjustment 68 51 98
Property disposal liabilities 90 - -
Provided during the period - 132 980
-------- -------- --------
Total 1,628 1,073 1,856
======== ======== ========
This Interim Report has been prepared in accordance with the
accounting policies adopted in the latest published accounts, except
that goodwill arising after 5 April 1998 on acquisition is
capitalised and then written off through the profit and loss account.
This Interim Report has not been audited or reviewed by our auditors.
The figures relating to the full year ended 5 April 1998 have been
extracted from the latest published accounts which have been
delivered to the Registrar of Companies with an unqualified audit
report.
The Interim Report was approved by the Board of Directors on 11
November 1998 and will be sent to shareholders on 20 November 1998.
The Interim Report will be available to the public from 20 November
at the Registered Office of the Company, Kingsway West, Dundee, DD3
8SF or from the Company Secretary at Armstrong Road, Basingstoke,
Hampshire, RG24 8NU. It will also be available from 12 November 1998,
on Bandt's web site at www.bandtplc.co.uk.
END
IR ALLIALALLLAT
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