RNS No 5974a
DAGENHAM MOTORS GROUP PLC
8th September 1998


INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 1998

Dagenham Motors Group plc, the UK's largest dedicated Ford
dealership group, announces record interim results for the
six months ended 30 June 1998.

KEY POINTS

                                             1998        1997        Change
Turnover (#'m)                              162.00      145.23       +11.6%
Profit before tax (#'m)                       3.04        2.83        +7.4%
Earnings per share(p)                          9.8         8.0       +22.5%
Dividend per share(p)                         2.75         2.5       +10.0%

* New Ford car sales increased 27% to 7,047 vehicles

* Used car sales increased 6% to 4,553 vehicles

* Accident repair profits up 50%

* Three new Ford car dealerships opened during the
  period - Plaistow, Cobham and Kingston.  Additional
  Iveco Ford commercial vehicle dealership opened at Chelmsford

* Gearing reduced from 51% to 49% despite share
  buy-back - interest cover remained very comfortable at
  4.1 times

Commenting on the outlook David Philip, Chairman, said:
"The second half of the year has started well with new car
sales remaining substantially ahead of last year in the all
important month of August.....The Directors remain quietly
confident of another satisfactory result for the year".


Enquiries:

David Philip, Chairman on
0171 466 5000 until 1.00 p.m., thereafter 0181 592 6655

Richard Oldworth, Richard Darby,
Buchanan Communications on 0171 466 5000


CHAIRMAN'S STATEMENT

I am very pleased to report a record profit of #3.039 million
for the first half of 1998 (1997: #2.83m).  Turnover for the
period rose by 11.6% to #162 million (1997: #145m) mainly due
to a substantial increase in the group's new car sales.

Earnings per share rose by 22.5% to 9.8 pence per share
(1997: 8.0p).

DIVIDEND

The Directors are declaring an interim dividend of 2.75 pence
per share (1997: 2.5p) to be paid on 16 November 1998 to
shareholders on the register on 9 October 1998.

TRADING REVIEW

The group's sales of new Ford cars rose by 27% to 7,047
vehicles, reflecting the strong demand throughout the whole
period.  This result was brought about through organic
growth - by management initiatives and by competitive pricing
in the market place of the steadily increasing range of fine
Ford products.  The bulk of this increase went into the all
important retail sector of the market and underlined the
ever increasing appeal for Ford's much wider range of products
in this sector.

The extremely competitive new car offers caused a sharp
readjustment of used car values but, nevertheless, used car
sales from the group's dealerships increased by 6% to 4,553
vehicles and demand for used cars at the right price remained
strong.

The group's sales of new commercial vehicles remained at
1,356 units with reduced sales within the commercial vehicle
division being offset by increased sales of commercial vehicles
from the car division.  Used commercial vehicle sales fell by
17.8% to 198 units, reflecting some deterioration in the
demand in this relatively small retail market.

The contribution from the accident repair division forged ahead
with a 25% increase in sales volume producing a 50% increase
in profit.

Sales in our service and parts division remained static and
there was a small reduction in overall contribution.

Profits from our commercial vehicle division have reduced from
the exceptional figures achieved in 1997, mainly as a result
of a lower demand and tougher trading conditions on new and
used vehicles.  However, the improvements in the performance
from our car dealerships have more than offset this reduction.

During the period the group opened three new Ford
car dealerships in Plaistow, Cobham and Kingston, and an
additional Iveco Ford commercial vehicle dealership at
Chelmsford.  These businesses extend the group's existing
franchised territories and demonstrate both Ford and Iveco
Ford's pledge to increase the size and profitability of
their preferred franchise partners.

The most encouraging aspect of the period under review is
that the main profit growth has come from our true core
business - new car sales.

Profits at Brownings Electric Company Ltd., reduced to
#132,000 (1997: #171,000) on a turnover of #1.66m
(1997: #1.60m) due to more competitive trading conditions.

Despite the buy-back of 1.025m of the Company's shares for
#1.33m group borrowing fell by #0.6m to #16.3m, which reduced
gearing from 51% at the end of 1997 to 49%.  Interest cover
remained very comfortable at 4.1 times.

CURRENT TRADING AND OUTLOOK

The second half of the year has started well with new car
sales remaining substantially ahead of last year in the all
important month of August.  Used car sales have also remained
strong and a reduced level of part exchanges during August has
left us with lower than usual used car stock levels.  This
should leave the group well placed to trade in this sector
satisfactorily during the traditionally more difficult
autumn and winter months.

The new dealerships opened in the first half of the year
should start to contribute to profit during the second half
of the year.  We are eagerly awaiting the introduction  of
the already much acclaimed Focus, a high volume vehicle that
we feel will be one of the most, if not the most, significant
new models of the decade.  This car will be introduced to
the European market at the Paris Motor Show later this month
and will be available in volume from our showrooms as early as
October.  The Ford Cougar, another exciting car will also be
introduced shortly.  The Ford product-led strategy to advance
into the more specialised and profitable retail sector is well
under way, and we have already seen improved margins on the
latest additions to the range, KA and Puma.

The Directors anticipate that the demand for commercial vehicles
will remain weaker in the second half of the year, but this
should be more than adequately compensated for by improvements
in our car operations, and therefore remain quietly confident
of another satisfactory result for the year.

The group is planning the acquisition of more dealerships
which will further reinforce its position as the largest
dedicated Ford dealer in the United Kingdom.

David Philip
Chairman
8 September 1998


DAGENHAM MOTORS GROUP PLC
Unaudited Results of the Group
Consolidated Profit  and Loss Account for the
six months ended 30 June 1998

                                   Six months   Six months   Year ended
                                 30 June 1998 30 June 1997  31 Dec 1997
                                        #'000        #'000        #'000

Turnover                              162,006      145,226      297,629
                                       ======       ======       ======
Operating profit-
 continuing operations                  4,018        3,752        8,024

Interest payable and
 similar charges                         (979)        (921)      (1,851)
                                        ______       ______       ______

Profit on ordinary
 activities
 before taxation                        3,039        2,831         6,173

Tax on profit on
ordinary activities                    (1,003)        (991)       (2,095)
                                       ______        ______       ______

Profit on ordinary
activities after taxation               2,036        1,840         4,078
                                       ______        ______       ______

Dividends                                (544)        (518)       (1,823)
                                        ______       ______        ______

(Dividends pence per share)            (2.75p)       (2.5p)   (8.75p)

Earnings per share                       9.8p         8.0p      18.5p


DAGENHAM MOTORS GROUP PLC
Consolidated Balance Sheet at 30 June 1998

                                           At           At           At
                                 30 June 1998 30 June 1997  31 Dec 1997
                                        #'000        #'000        #'000

Fixed Assets
Tangible assets 2                       4,637       25,523       26,862
Investments                                23           22           22
                                       _______     _______      _______
                                       24,660       25,545       26,884
                                      _______      _______      _______

Current Assets
Stocks                                 35,821       33,608     35,472
Debtors                                30,156       19,156     22,817
Cash at bank and in hand                   46           35        356
                                      _______      _______    _______

                                       66,023      52,799      58,645
                                      _______      _______    _______

Creditors: Amounts falling
 due within one year                  (45,041)    (35,544)    (40,172)
                                      _______      _______    _______

Net Current Assets                     20,982      17,255     18,473
                                      _______     _______    _______

Total Assets Less Current
 Liabilities                           45,642      42,800     45,357

Creditors: Amounts falling
 due after more than one
 year                                 (12,181)    (11,615)    (12,077)

Provisions for liabilities
 and charges                             (292)       (328)       (292)
                                       _______      _______    _______
                                       33,169      30,857     32,988
                                       _______     _______    _______

Capital And Reserves

Called up share capital                 1,978       2,218      2,078

Share premium account                  13,881      13,859     13,862

Other reserves                          8,516       6,714      9,259

Profit and loss account                 8,794       8,066      7,789
                                       _______     _______    _______

Equity shareholders' funds             33,169      30,857     32,998
                                       _______     _______    _______


DAGENHAM MOTORS GROUP PLC
Consolidated Cash Flow Statement 
for the six months ended 30 June 1998

                         Six months ended   Six months ended     Year ended
                             30 June 1998       30 June 1997    31 Dec 1997
                                    #'000              #'000          #'000

Net cash inflow from
 operating activities               5,656              8,588         11,570

Returns on investments
 and servicing of finance 
Interest paid                      (1,315)              (921)       (1,736)


Reconciliation to net debt

                                          At           At           At
                                      30 June 1998  30 June 1997  31 Dec. 1997
                                        #'000       #'000           #'000

Increase/(decrease) in
 cash for the year                       261         4,523         3,291
Cash used/(utilised) to
 increase/(decrease)
 liquid resources                        337          (354)          339
                                       ======        ======       ======
Change in net debt                       598         4,169         3,630
                                      _______       _______       _______
Net debt at beginning of
 period                              (16,878)      (20,122)      (20,508)
                                      _______       _______       _______
Net debt at end of period            (16,280)      (15,953)      (16,878)
                                      _______       _______       _______


NOTES:

1. The charge for taxation is based on the estimated
   effective rate for the year as a whole.

2. The calculation of earnings per share is based on the
   profit after taxation of #2,036,000 and on 20,718,222
   shares, being the weighted average number of shares in
   issue during the six months.

3. The interim accounts for the six months ended 30 June
   1998 and the comparative figures for the six months
   ended 30 June 1997 are unaudited.  The figures shown
   in respect of year ended 31 December 1997 constitute
   abridged accounts under S255 of the Companies Act 1985.
   Full accounts, including an unqualified auditors' report
   were circulated to members in April 1998 and have been
   filed with the Registrar of Companies.

4. An interim dividend of 2.75 pence per share will be paid
   on 16 November 1998 to shareholders on the register on
   9 October 1998.

5. Copies of the interim report will be despatched to
   shareholders.  Further copies may be obtained from the
   Company's registered office Ford House, New Road,
   Dagenham, RM9 6EX.


Taxation
UK corporation tax paid
(including advance
 corporation tax)         (130)       (204)    (1,901)

Capital expenditure
Payments to acquire
 tangible fixed assets  (1,127)       (811)    (1,656)
Receipts from sales of
 tangible fixed assets     125         114      1,474
                       _______     _______     _______
                        (1,002)       (697)      (182)

Equity dividends paid   (1,300)     (1,275)    (1,795)
                        _______    _______     _______

Cash inflow before
 management of
 liquid resources and
 financing               1,909       5,491      5,956

Management of liquid resources and financing

Issue of share capital      22         22          25
Redemption of shares    (1,333)       (900)    (2,160)
New medium term loans        -         360      1,110
Repayment of loans        (316)       (402)    (1,598)
Capital element of finance
 lease payments            (21)        (48)       (42)
                        _______     _______    _______

Net cash outflow from
 financing              (1,648)       (968)    (2,665)
                          _______    _______   _______

Increase in cash and
 cash equivalents          261       4,523      3,291
                         _______    _______   _______

Reconciliation of
 operating profit to net cash inflow from operating activities

Operating Profit           4,018      3,752     8,024
Depreciation charges         775        779     1,571
(Increase)/Decrease in
 debtors                  (5,031)     3,331      (323)
Increase in Stocks          (349)    (2,288)   (4,152)
Increase in Creditors     6,193       3,014     6,450
Loss on sale of fixed
 assets                      50           -         -
                         _______    _______   _______
Net cash inflow from
operating activities      5,656      8,588    11,570
                         _______    _______   _______

END

IR ALLEDAEIDIAT


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