RNS No 8070h
DEAN CORPORATION PLC
11th September 1998
DEAN CORPORATION PLC
(BUILDING AND PROPERTY SERVICES)
HIGHLIGHTS
UNAUDITED INTERIM STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 1998
TURNOVER UP TO #19.1 MILLION
1997: #16.2 MILLION) +18%
PRE TAX PROFIT UP TO #954K
(1997: #739K) +29%
INTERIM DIVIDEND PER SHARE: 0.35P +17%
(1996: 0.3P)
Chairman, Stephen Dean commenting on the results, said:
"Our strategy to build a property services Group is producing positive
results. I am pleased to report that the Group has shown improvement and am
confident of a satisfactory outcome for the full year".
DEAN CORPORATION PLC
(BUILDING AND PROPERTY SERVICES)
UNAUDITED INTERIM STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 1998
CHAIRMAN'S STATEMENT
Results
Your Board is pleased to report a profit before taxation of #954K for the six
months ended 30 June 1998, compared with #739K for the comparable half year
for 1997 and #1,300K for the full year ended 31 December 1997.
The underlying organic growth is 20% taking out additional interest from the
balance of last year's fund raising.
In May and June we acquired the assets of Headel Plc and Castellain Limited
respectively for a total consideration of #464K (subject to performance).
Earnings per share have not reflected the underlying organic growth because
the investment of the funds raised last November, including the above
acquisitions and the purchase of development opportunities, did not occur
until late into the period under review.
The Board has declared an interim dividend of 0.35p per share to shareholders
on the register at the close of business on 25 September 1998 which will be
paid on 30 October 1998.
Property Services Division
Market conditions have been buoyant throughout the division and the good level
of activity appears likely to extend for sometime to come. In mechanical
services the H Page order book is at record levels with a high level of
activity in the Central London area. We have expanded our small works and
maintenance activity in this area through the acquisitions from Headel Plc and
Beechmore Limited in May and are looking for further opportunities in this
field. Headel and Beechmore have brought important contacts with blue chip
customers such as British Gas, Securicor and the Territorial Army.
In addition to the contracts for IBM and Lloyds/TSB Bank referred to in last
year's annual report, we have secured on-going contracts for Berkeley Homes at
their prestigious Harrods Village development in West London, London
Underground, C&A and a number of financial institutions in the City. In the
longer term, Page will benefit from the increased expenditure which is planned
for the hospital market where we have extensive expertise and experience.
The local authority housing market is currently stable but should receive a
significant boost from the recently announced government expenditure plans.
We anticipate that this will give rise to significant additional opportunities
over the next few years. Unfortunately, the Southwark County Council contract
which expired on 31 March 1998 was not renewed and this slightly depressed the
level of activity for the first half year. However, additional contracts with
London Borough of Croydon, London Quadrant Housing Association and Rosebury
Housing Association have been secured which will increase future volumes.
In June, we acquired Castellain Limited which carries out repossession and
refurbishment works on residential houses for financial institutions such as
building societies, banks etc. Despite the improvement in the economy,
repossessions are forecast to increase and there is substantial opportunity
for the development of this business in the future. The acquisition of
Castellain represents our first move away from the local authority market.
Whilst we see substantial growth within the local authority market we intend
to further expand our maintenance activities in the private sector.
The leisure industry has continued to grow substantially during this period
which has enabled Speymill Contracts to expand its operations both financially
and geographically. Speymill Contracts' client base has also expanded and
includes many of the national and regional breweries and restaurants which
includes recent additions such as Bass Taverns, Charles Wells, De Vere Hotels,
Pizza Express and Scottish and Newcastle.
The building industry has seen a move towards 'partnering' and Speymill
Contracts had been successful in building similar relationships with Bass and
their 'All Bar One' concept and the Old Monk Pub Company.
Speymill Contracts has been recommended for its largest project to date, a
#1.4 million new build, 51 bedroom hotel and public house refurbishment
contract for Greenalls.
The leisure industry sector remains buoyant and the company continues to
establish itself as a competent, proactive contractor in the market place.
Residential and Commercial Development Division
The residential market in the division's core region is continues to be active
albeit not at the same rate as 1997, except in the Cambridge City area where
activity remains buoyant.
In the period under review, the division started construction on 23 homes and
6 office blocks on its own account and 37 homes in conjunction with M J
Gleeson.
The company sold in the first half 17 homes on its own account and 2 office
blocks were let or had instructions with solicitors.
The commercial and industrial markets in the region have offered up
interesting development opportunities which the division will pursue where the
potential returns meet our criteria.
Current Trading
The markets in which your Group operates continue to improve and I am
confident that the Company will to make good progress in the remainder of the
year. The results for July are in line with expectations and lead your Board
to expect a satisfactory outcome for the full year.
I look forward to the future with confidence.
STEPHEN DEAN
CHAIRMAN
DEAN CORPORATION PLC
(BUILDING AND PROPERTY SERVICES)
UNAUDITED INTERIM STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 1998
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Six months Six months Year
ended ended ended
30 June 30 June 31 December
1998 1997 1997
(Unaudited) (Unaudited) (Audited)
Turnover
Continuing operations 18,829,050 16,150,057 31,654,251
Acquisitions 227,740 0 0
19,056,790 16,150,057 31,654,251
Operating profit
Continuing operations 960,343 769,677 1,434,151
Acquisitions 36,971 0 0
997,314 769,677 1,434,151
Interest (43,528) (30,519) (133,522)
Profit on ordinary
activities before taxation 953,786 739,158 1,300,629
Taxation (262,544) (214,356) (311,125)
Profit on ordinary
activities after taxation 691,242 524,802 989,504
Dividend (242,633) (138,895) (414,511)
Retained profit 448,609 385,907 574,993
====== ====== ======
Earnings per share 1.00p 1.13p 2.02p
Fully diluted 0.98p 0.98p 1.99p
Dividend per share 0.35p 0.30p 0.70p
DEAN CORPORATION PLC
(BUILDING AND PROPERTY SERVICES)
UNAUDITED INTERIM STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 1998
CONSOLIDATED BALANCE SHEET
As at As at As at
30 June 30 June 31 December
1998 1998 1997
(Unaudited)(Unaudited) (Audited)
Fixed assets
Tangible fixed assets 696,691 937,457 608,318
Investments 598,976 420,568 372,961
Goodwill 284,919 0 0
1,580,586 1,358,025 981,279
Current assets
Stocks 4,193,276 3,386,372 2,262,627
Debtors 9,135,691 5,195,597 7,703,834
Cash at bank and in hand 1,649,715 1,107,525 1,705,791
-------- --------- ----------
14,978,682 9,689,494 11,672,252
Creditors
Amounts falling due
within one year (8,887,717) (6,575,211) (6,237,303)
Net current assets 6,090,965 3,114,283 5,434,949
Total assets less
current liabilities 7,671,551 4,472,308 6,416,228
Creditors
Amounts falling due after
more than one year (1,751,032) (1,120,850) (994,169)
Provision for liabilities
and charges (2,226) (2,226) (2,226)
------ ----- ------
Net assets 5,918,293 3,349,232 5,419,833
========= ========= ========
Capital and reserves
Called up share capital 346,619 231,490 344,521
Share premium account 3,871,576 1,440,684 3,823,824
Capital reserve 12,022 656,677 12,022
Profit and loss account 1,520,206 852,511 1,071,596
----------- --------- ----------
Equity shareholders funds 5,750,423 3,181,362 5,251,963
Minority interests
(non equity) 167,870 167,870 167,870
-------- ------- --------
5,918,293 3,349,232 5,419,833
========= ======== ========
DEAN CORPORATION PLC
(BUILDING AND PROPERTY SERVICES)
UNAUDITED INTERIM STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 1998
CONSOLIDATED CASH FLOW
Six months Year
30 June 31 December
1998 1997
(Unaudited) (Audited)
Net cash inflow/(outflow)
from operating activities 147,398 (1,844,343)
Returns on investments and servicing of finance
Interest received
191,053 79,520
Interest paid
(234,581) (218,229)
Net cash (outflow) from returns on
investments and servicing of finance (43,528) (138,709)
--------- ---------
Taxation
UK Corporation tax paid (124,819) (142,115)
-------- ---------
Capital expenditure and financial investment
Sale of tangible fixed assets 58,762 488,511
Purchase of tangible fixed assets (240,789) (340,284)
Net cash inflow/(outflow)
from investing activities (182,027) 148,227
Acquisitions and disposals
Purchase of subsidiary undertakings (246,552) (381,181)
Disposal of subsidiary undertakings 0 179,286
Purchase of investment in other entities (226,015) (351,596)
Net cash inflow/(outflow) from
Acquisitions and disposals (472,567) (553,491)
Equity diviends paid (267,617) (266,669)
Net cash (outflow) before financing (952,160)(2,797,100)
Financing
Issue of shares/costs 49,850 2,496,171
Additions to (repayment of) borrowing 848,607 657,876
Capital element of finance leases (2,373) 158,084
------ ------
Net cash inflow from financing 896,084 3,312,131
------- ---------
Increase/(decrease) in cash and
cash equivalents (56,076) 515,031
------ ------
NOTES TO THE STATEMENT OF CASHFLOWS
(a) Reconciliation of Operating profit to net cash inflow from
operating activities:
Six months Year
ended ended
30 June 31 December
1998 1997
(Unaudited) (Audited)
Operating profit 997,314 1,284,986
Depreciation 58,494 119,704
Amortisation of goodwill 1,494 0
(Increase)/Decrease in debtors (1,558,634) (3,716,546)
(Increase)/Decrease in stocks (1,930,649) (68,252)
Increase/(Decrease) in creditors 2,579,379 532,772
Loss on disposal of investment 0 2,993
------- ------
Net Cash inflow/(Outflow)
from operating activities 147,398 (1,844,343)
------- ---------
(b) Reconciliation of net cash flow to movement in net debt:
Six months Year
ended ended
30 June 31 December
1998 1997
(Unaudited) (Audited)
Increase/(decrease) in cash (56,076) 515,031
Cash inflow from increase in
debt and lease financing (846,234) (815,960)
Finance leases disposed with
subsidiary 0 56,250
-------- -------
Change in net debt resulting
from cash flows (902,310) (244,679)
Opening net funds/(debt) 403,124 647,803
Closing net funds/(debt) (499,186) 403,124
====== ======
NOTES TO THE INTERIM STATEMENT
1. The interim financial information has been prepared on the basis of
the accounting policies set out in the group's 1997 statutory accounts with
the exception that the provisions of FRS10 Goodwill and Intangible Assets have
been adopted in the current financial year. The interim figures have not been
audited. The interim financial statement does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985 (The
'Act'). Comparative financial information for the year ended 31 December 1997
has been extracted from the statutory accounts for the year which have been
delivered to the registrar of Companies and upon which the auditors gave an
unqualified report, with no statement under section 237(2) or (3) of the Act.
2. The taxation charge for the 6 months has been calculated at an
effective rate of 27.5% (1997 29%).
3. The calculation of earnings per share is based on the profit on
ordinary activities after taxation and 69,953,387 ordinary shares (1997:
46,298,123) being the weighted average number of shares in issue during the
half year. The weighted average number of shares in issue during the year
ended 31 December 1997 was 49,023,250. The calculation of fully diluted
earnings per share is based on the profit on ordinary activities after
taxation and 70,410,921 ordinary shares being the weighted average number of
shares in issue during the year, after allowing for share options.
4. The Directors have declared an interim dividend of 0.35p per share
(1997: 0.30p) to shareholders on the register at the close of business on 25
September 1998, which will be paid on 30 October 1998.
5. The interim statement was approved by the board of Directors on 8
September 1998. Copies of this statement will be available to members of the
public, free of charge, from the Company's registered office, Dean House,
Sovereign Court, Ermine Business Park, Huntingdon, Cambridgeshire PE18 6WA.
Enquiries:
DEAN CORPORATION PLC 01480 436666
Stephen Dean Mobile: 0385 938 782
Chairman
TEATHER & GREENWOOD LIMITED 0171 426 9000
Peter Trevelyan-Clark Mobile: 07771 818 149
BOSWELL CITY FINANCIAL PR LIMITED 0171 583 2001
Glenda Boswell Mobile: 0468 235 735
END
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