TIDMELCO
RNS Number : 5047A
Eleco PLC
09 October 2009
+------------------------------------+------------------------------------+
| For Immediate Release | 09 October 2009 |
+------------------------------------+------------------------------------+
ELECO PLC
("Eleco" or the "Group")
The Building Systems and Software Group
Preliminary Results for the Year Ended 30 June 2009
Group Highlights
* Turnover declined by 16.9% to GBP70.6m (2008: GBP84.9m)
* Group trading profit declined to GBP119,000 (2008: GBP8.02m)
* Loss before tax of GBP1.43m (2008: profit GBP8.22m)
* Loss after tax of GBP1.47m (2008: profit GBP6.13m)
* Proposed final dividend 0.40p per share making total for year of 0.80p per share
(2008: 3.00p)
Building Systems
* Turnover declined to GBP57.4m (2008: GBP72.0m)
* Operating profit before impairment charges fell to GBP0.3m (2008: GBP7.4m)
* Sector downturn demanded rigorous action to cut workforce while maintaining
technical edge
* Client funding difficulties delayed orders
Software
* Turnover marginally decreased to GBP13.4m (2008: GBP13.7m)
* Operating loss before impairment charges of GBP0.2m (2008: profit of GBP0.9m)
John Ketteley, Executive Chairman of Eleco plc, commented:
"We have prospects in the pipeline. We are leaner and fitter as a Group and can
look forward to the full benefit of the cost reductions achieved in the previous
year. We have maintained our relatively strong financial position in difficult
conditions. Accordingly, Eleco is well placed to take full advantage of any
upturn when it comes."
For further information please contact:
+-------------------------------------------+----------------------------+
| Eleco plc | Tel: 01920 443 830 |
+-------------------------------------------+----------------------------+
| John Ketteley, Executive Chairman | http://www.eleco.com |
| john.ketteley@eleco.com | |
+-------------------------------------------+----------------------------+
| David Dannhauser, Finance Director | |
| david.dannhauser@eleco.com | |
+-------------------------------------------+----------------------------+
| | |
+-------------------------------------------+----------------------------+
| Collins Stewart Europe Limited | 020 7523 8359 |
+-------------------------------------------+----------------------------+
| Bruce Garrow | |
+-------------------------------------------+----------------------------+
| | |
+-------------------------------------------+----------------------------+
| Buchanan Communications | 020 7466 5000 |
+-------------------------------------------+----------------------------+
| Tim Anderson / James Strong / Christian | |
| Goodbody | |
+-------------------------------------------+----------------------------+
Chairman's Statement
In my statement for the year ended 30 June 2008, I reported continuing progress
due to a strong performance from our expanded precast concrete interests.
Unfortunately, this year I have to report that our results for the year to 30
June 2009 were adversely affected by a significant setback for our precast
concrete interests, because of a major decline in hotel and student
accommodation projects. We also experienced difficult trading conditions
generally in the remainder of our businesses, although our construction software
businesses performed in line with management expectations following the supply
chain issues reported in the first half of the year.
The unprecedentedly difficult trading conditions of the past eighteen months
have necessitated an increasingly rigorous application by management of sound
financial and strategic policies to mitigate the effect of the economic
circumstances. This has involved a major downsizing of our workforce in the UK
in the face of falling demand, while continuing to invest in certain strategic
capital and product development projects. As a consequence, despite the
significant downturn in demand, experienced in particular by our UK Building
Systems businesses, the Group has succeeded in maintaining a relatively strong
financial position.
Group Performance Summary
Group turnover for the year declined by 16.9% to GBP70.6m (2008: GBP84.9m).
Group trading profit, after deducting intangible asset amortisation costs for
the year of GBP712,000 (2008: GBP531,000), was sharply lower at GBP119,000
(2008: GBP8.02m).
After impairment charges of GBP1.27m (2008: Nil), the Group made a loss on
ordinary activities before tax of GBP1.43m (2008: profit GBP8.22m), after net
finance charges of GBP280,000 (2008: net finance income GBP202,000).
Group loss for the year after tax was GBP1.47m (2008 Group Profit after Tax:
GBP6.13m) equivalent to a loss per share of 2.5p (2008: 10.6p earnings per
share). Reflecting the reduction in activity experienced in the year, operating
cash flows were sharply lower but nevertheless the Group ended the year with net
cash balances of GBP1.59m.
We continued to invest in new capital projects and product development in the
period, although the amount of spend was lower at GBP2.94m (2008: GBP4.02m. In
the current economic climate, we anticipate a lower rate of spend this year.
Dividends
The Board considers that it would be justified in recommending a modest final
dividend and has accordingly decided to propose a final dividend for the year
ended 30 June 2009 of 0.40p per share although total dividends paid and
proposed, amounting to 0.80p per share for the year (2008: 3.00p) will be
uncovered by earnings.
The proposed final dividend will, subject to approval by shareholders, will be
paid on 20 November 2009 to shareholders on the Register on 23 October 2009.
Directors
Following the closer integration of the activities of the Building Components
operations with others within the Building Systems Division, Paul Taylor left
the Board on 8 October 2009. He joined the Board in July 2000 and has been
tireless in his efforts on behalf of the Company and in dealing with some of the
more difficult challenges.
I would like to thank him on your behalf for his contribution to the Group's
affairs and wish him well.
Fred Newby has been appointed Deputy Chairman. He has also been appointed
Divisional Chief Executive of the UK Building Systems Division. Michael McCullen
has been appointed Divisional Chief Executive of the Software Division.
Business Activity Review - Building Systems
All our building systems products are incorporated in the structure or the
envelope of new buildings. Accordingly, the major down turn in new build starts
in the year under review quickly affected demand for our products. As a
consequence, turnover of our Building Systems operations decreased by 20% to
GBP57.4m (2008: GBP72.0m) and operating profit before impairment charges reduced
to GBP0.3m (2008: GBP7.4m)
In normal market circumstances, our products are applied to projects using
'Modern Methods of Construction' techniques because such products deliver to our
customers the advantages of speed and efficiency. However in current conditions
cost and slower cash flow profiles have become a primary driver and the use of
traditional "in situ build" techniques, even though this less efficient build
method has in some instances emerged as a threat, even though the overall
economic benefit of using these products outweighs the perceived cost benefit.
However, we are confident that this is a temporary situation and that speed and
efficiency will again become the primary drivers as the market recovers.
Precast Concrete
Turnover of our Precast Concrete operations reduced by 16% to GBP31.8m
(2008: GBP37.9m) and operating profit before impairment charges decreased to
GBP0.4m (2008: GBP4.1m).
A major cost reduction program has been on going through out the year against a
backdrop of greater competition and margin erosion. Nevertheless, our ongoing
commitment to improvement was evidenced by Bell & Webster Concrete and Milbury
Systems completing the necessary environmental enhancement work on their
respective sites to gain full certification under ISO 14001. Bell & Webster also
gained OHSAS 18001:2007 accreditation.
Bell & Webster Concrete started the year with a reduced forward order book from
the previous year, but with a very promising prospects list. However, our
clients experienced great difficulty in the first half year in gaining funding
for their projects, although in the second half of the year a number of projects
did gain funding and are now in manufacture. Unfortunately, in a number of
instances clients have still not been able to obtain funding for their projects
and as a consequence a number of these projects have still not progressed to
order stage. Nevertheless, Bell & Webster Concrete started the current year with
a forward order book higher than last year.
Bell & Webster Concrete launched a new long span slab during the year which is
manufactured at the new plant at Hoveringham. This slab has already been
incorporated as part of the flooring for a number of student accommodation
projects and has enabled Bell & Webster Concrete to compete for school, hostel,
care/nursing home, key worker accommodation and custodial structures. We have
recently won our first orders for the new product for a school and a hostel. We
are also continuing to make progress in gaining acceptance for Bell & Webster
Concrete products in the custodial accommodation market.
Bell & Webster Concrete also re-established itself as a supplier in the
terracing market and finished the year back in manufacture of stadia units.
Demand for retaining walls held up during the year. The whole of Bell & Webster
Concrete's range of retaining walls, have been updated to comply with the new
design codes which are to come into force in March 2010. The opportunity has
also been taken to rationalise our retaining wall sizes as part of our
investment in new moulds. Milbury Systems previously outsourced their retaining
wall requirement externally however, they are now supplied by Bell & Webster
Concrete.
Milbury Systems had a very difficult trading year, with an ever decreasing order
intake from the Irish market and the industrial sector, which, after housing,
suffered the greatest percentage reduction of new orders in the construction
industry. However, sales into the agricultural market were maintained. Milbury's
response has been to reduced its cost base and improve its facilities and
product quality. It has also invested in people to broaden its market sectors
and market penetration.
Roofing and Cladding, Timber Frame and Timber Engineering Systems
Revenues were down 25% at GBP25.6m (2008: GBP34.1m). Operating loss was GBP0.1m
(2008: profit GBP3.3m) which reflected difficult trading conditions across each
segment, reflecting increased competition, timing delays and cancellation of
projects.
Roofing and Cladding
Market conditions for the roofing and cladding companies continue to be most
difficult and our forward order book decreased in the second half of the year.
Competition increased and trading margins continued to be eroded. A program to
reduce operating costs has been undertaken which has taken into account the need
to retain core skills and knowledge so that we can respond positively and take
advantage of any upturn in the general market conditions. SpeedDeck
substantially reduced its cash usage by strategic stock reduction. Downer
Cladding continued to make a positive contribution in the year and performed
well in the conditions.
Timber Frame
The difficulties that have faced the housing sector during the course of the
last 18 months are well documented with the lowest house starts since 1947.
Although ETF had initially been a supplier to the private housing market, 80 per
cent of its forward order book at the end of the financial year was for Social
Housing projects. While continuing to refocus into the Social Housing sector,
ETF also carried out its first hotel project during the year. The company has
streamlined its internal processes to enable it to more easily respond to
increasingly successful lead generation.
Timber Engineering Systems
The UK business is predominately a timber engineering system provider to roof
truss fabricators which supply the UK and Irish house building markets and were
therefore greatly affected by the very significant drop in housing starts during
the year. Owing to our product mix revenues in the first half did not reduce as
drastically as the reported overall market. However, in the second half our
inter Group revenue was lower. Gang-Nail Systems has taken the opportunity in
this period of lower output to give our plant an extensive overhaul. It is also
continuing to invest in improvements for our existing software and is also
working towards a suite of new generation software incorporating the latest
technologies.
In Germany, Eleco Bauprodukte has benefited from its strong relationships in the
supermarket sector and performed above previous years levels. However, some
operational issues relating to the businesses software rights is likely to have
an adverse impact on performance going forward.
In South Africa, International Truss Systems has been affected by the adverse
change in local economic conditions and its market has also been impacted by a
new entrant to that market. Nevertheless, it has performed generally in line
with expectations.
Business Activity Review - Software
Eleco's software businesses are organised into two divisions: Construction and
Visualisation. Turnover of our Software operations decreased by 2% to GBP13.4m
(2008: GBP13.7m). Our Software operations made an operating profit of GBP343,000
(2008: GBP1,368,000). After amortisation of intangible assets of GBP491,000,
impairment charges of GBP269,000 and restructuring costs of GBP44,000 the
Software operation made a net loss of GBP461,000 (2008: Net profit of
GBP945,000, after total acquisition accounting adjustments and amortisation of
intangible assets of GBP423,000). Fully expensed development costs were GBP2.3m
(2008: GBP2.3m).
The Consultec businesses in Sweden performed very well, maintaining a strong
position in their markets and achieving record results.
Consultec Byggprogram successfully launched the next generation of its
estimating software, Bidcon and established a distribution channel in Australia
for its site management software, Sitecontrol. Consultec System completed a new
CAM (Computer Aided Manufacturing) product to enable its staircase design
software Staircon to reliably control CNC machines for the production of
stairs. The new product will be launched in the autumn.
Consultec Arkitekter & Konstruktorer is a service business offering
architectural and consultancy services. By focusing on offering a high level of
customer service, it was able to successfully retain its larger clients in a
more competitive market.
Asta Development experienced a slow down in the UK for its project management
software Asta Powerproject due to the reduced number of project starts in the
construction industry. It responded by reducing costs in order to successfully
protect margins. The take-up and renewal of annual software maintenance
contracts remained high throughout the period. In addition, Asta expanded
overseas, establishing a new Eleco subsidiary in Germany to market its products
in German speaking territories. Asta Development GmbH made a useful contribution
to profits in the period.
Eleco Software GmbH performed well and delivered very positive margins from the
sale of its 3D design tool Arcon in Germany and from the sale of a retail
version of the product both locally and internationally.
ESIGN Software GmbH met with a difficult market for the sales of its software
and service offering to flooring manufacturers throughout Europe, resulting in a
break-even position for the business.
There had been high expectations for Eleco Software in the UK for the sale of
the retail version of our 3D design tool Arcon under the Grand Designs brand
name. However distribution problems during the peak Christmas sales period
together with a decline in retail sales generally resulted in disappointing
sales and a loss for the business.
The market for our professional construction software products appears to have
stabilised and some improvement is expected next year. Healthy maintenance
revenues and a steady level of new sales indicate that customers still desire
the products and services marketed by Eleco. Internationally diverse markets
will continue to be a strength with some territories such as Sweden being less
badly affected by the global economic slowdown than the UK. There are likely to
be opportunities for growth in the UK as the economy improves and overseas by
strengthening our distribution channels.
All of Eleco's software interests now fall within the same strong management
discipline. This restructuring exercise will result in further cost reductions
at Eleco Software in the UK.
The Software division will have a unified vision as the provider of a suite of
software tools to help manage each stage of the construction project lifecycle
from project visualisation, through design, cost estimation and project
management to site management.
Outlook
We reported on 13 August 2009 that the uplift in activity in the fourth quarter
of the financial year had not materialised to the degree anticipated.
At this stage in the current year, I have to report that while we have
experienced more confidence in some of the sectors in which we operate, this
improvement in business sentiment has not yet produced a tangible change to our
key Precast Concrete businesses. Nevertheless I am confident that, in time, our
recovery will be driven by increasing use of modern methods of construction,
which are inherent in our Building Systems' product offering; by the increasing
requirement for efficiency in the build process, delivered by the application of
our resource management software; and by our ongoing commitment to the ethos of
sustainable construction.
We have prospects in the pipeline. We are leaner and fitter as a Group and can
look forward to the full benefit of the cost reductions achieved in the previous
year. We have maintained our relatively strong financial position in difficult
conditions. Accordingly, Eleco is well placed to take full advantage of any
upturn when it comes.
John Ketteley
Executive Chairman
9 October 2009
Consolidated Income Statement
for the year ended 30 June 2009
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | | | | | | | |
+--+------------------------------+----------+-----+----+------------+----+------------+
| | | | | | | | |
+--+------------------------------+----------+-----+----+------------+----+------------+
| | | | | | | | | | |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | | | | | | | 2009 | | 2008 |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | | | | | | | GBP'000 | | GBP'000 |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | Revenue | | | | | | 70,555 | | 84,909 |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | Cost of sales | | | | | (40,601) | | (46,090) |
+--+-----------------------+------+----------+-----+----+------------+----+------------+
| | Gross | | | | | | 29,954 | | 38,819 |
| | profit | | | | | | | | |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | Distribution costs | | | | | (3,503) | | (4,087) |
+--+-----------------------+------+----------+-----+----+------------+----+------------+
| | Administrative | | | | | (26,333) | | (26,710) |
| | expenses | | | | | | | |
+--+-----------------------+------+----------+-----+----+------------+----+------------+
| | Trading Profit | | | | | 119 | | 8,022 |
+--+-----------------------+------+----------+-----+----+------------+----+------------+
| | | | | | | | | | |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | Impairment charges | | | | | (1,269) | | - |
+--+-----------------------+------+----------+-----+----+------------+----+------------+
| | (Loss)/profit from | | | | (1,150) | | 8,022 |
| | operations | | | | | | |
+--+------------------------------+----------+-----+----+------------+----+------------+
| | | | | | | | | | |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | Finance income | | | | | 216 | | 475 |
+--+-----------------------+------+----------+-----+----+------------+----+------------+
| | Finance | | | | | | (496) | | (273) |
| | cost | | | | | | | | |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | (Loss)/profit before | | | | | (1,430) | | 8,224 |
| | tax | | | | | | | |
+--+-----------------------+------+----------+-----+----+------------+----+------------+
| | Tax | | | | | | (39) | | (2,091) |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | (Loss)/profit for the | | | | | (1,469) | | 6,133 |
| | year | | | | | | | |
+--+-----------------------+------+----------+-----+----+------------+----+------------+
| | | | | | | | | | |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | Attributable to: | | | | | | | |
+--+-----------------------+------+----------+-----+----+------------+----+------------+
| | Equity holders of the parent | | | | (1,469) | | 6,133 |
+--+------------------------------+----------+-----+----+------------+----+------------+
| | | | | | | | | | |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | Total and continuing earnings per share | | | | | |
| | (EPS) | | | | | |
+--+-----------------------------------------+-----+----+------------+----+------------+
| | - basic | | | | | | (2.5)p | | 10.6p |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | - diluted | | | | | | (2.5)p | | 10.5p |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | | | | | | | | | |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
| | | | | | | | | | |
+--+------------+----------+------+----------+-----+----+------------+----+------------+
Consolidated Statement of Recognised Income and Expense
for the year ended 30 June 2009
+--+----------+----------+----------+----------+----+----+------------+----+------------+--+
| | | | | | | | | | | |
+--+----------+----------+----------+----------+----+----+------------+----+------------+--+
| | | | | | | | 2009 | | 2008 | |
+--+----------+----------+----------+----------+----+----+------------+----+------------+--+
| | | | | | | | GBP'000 | | GBP'000 | |
+--+----------+----------+----------+----------+----+----+------------+----+------------+--+
| | Actuarial loss on retirement benefit | | | (1,705) | | (4,919) | |
| | obligation | | | | | | |
+--+-------------------------------------------+----+----+------------+----+------------+--+
| | Associated deferred tax on retirement benefit | | 458 | | 1,246 | |
| | obligation | | | | | |
+--+------------------------------------------------+----+------------+----+------------+--+
| | Translation differences on foreign currency | | 362 | | (57) | |
| | net investments | | | | | |
+--+------------------------------------------------+----+------------+----+------------+--+
| | Net expense recognised directly in equity | | | (885) | | (3,730) | |
+--+-------------------------------------------+----+----+------------+----+------------+--+
| | | | | | | | | | | |
+--+----------+----------+----------+----------+----+----+------------+----+------------+--+
| | (Loss)/profit for | | | | | (1,469) | | 6,133 | |
| | the year | | | | | | | | |
+--+---------------------+----------+----------+----+----+------------+----+------------+--+
| | Total recognised income and expense in | | | (2,354) | | 2,403 | |
| | the period | | | | | | |
+--+-------------------------------------------+----+----+------------+----+------------+--+
| | | | | | | | | | | |
+--+----------+----------+----------+----------+----+----+------------+----+------------+--+
| | Attributable to: | | | | | | | | |
+--+---------------------+----------+----------+----+----+------------+----+------------+--+
| | Equity holders of the parent | | | | (2,354) | | 2,403 | |
+--+----------+----------+----------+----------+----+----+------------+----+------------+--+
Consolidated Balance Sheet
at 30 June 2009
+--+----------+--+--------+--+--------+----------+-----+----------+----------+--+----------+--+
| | | | | | | | | | | |
+--+----------+--------------+--------+----------+-----+----------+----------+--+----------+--+
| | | | | | | | 2009 | | 2008 | |
+--+----------+--------------+--------+----------+-----+----------+----------+--+----------+--+
| | | | | | | | GBP'000 | | GBP'000 | |
+--+----------+--------------+--------+----------+-----+----------+----------+--+----------+--+
| | Non-current assets | | | | | | | | |
+--+-------------------------+--------+----------+-----+----------+----------+--+----------+--+
| | Goodwill | | | | | | 13,473 | | 14,174 | |
+--+----------+--------------+--------+----------+-----+----------+----------+--+----------+--+
| | Other intangible assets | | | | | 3,485 | | 3,827 | |
+--+-------------------------+--------+----------+-----+----------+----------+--+----------+--+
| | Property, plant and equipment | | | | 12,552 | | 12,175 | |
+--+----------------------------------+----------+-----+----------+----------+--+----------+--+
| | Deferred tax assets | | | | | 2,687 | | 2,229 | |
+--+-------------------------+--------+----------+-----+----------+----------+--+----------+--+
| | Total non-current | | | | | 32,197 | | 32,405 | |
| | assets | | | | | | | | |
+--+-------------------------+--------+----------+-----+----------+----------+--+----------+--+
| | | | | | | | | | | |
+--+----------+--------------+--------+----------+-----+----------+----------+--+----------+--+
| | Current assets | | | | | | | | |
+--+-------------------------+--------+----------+-----+----------+----------+--+----------+--+
| | Inventories | | | | | | 3,687 | | 4,599 | |
+--+-------------+-----------+--------+----------+-----+----------+----------+--+----------+--+
| | Trade and other receivables | | | | 12,985 | | 16,585 | |
+--+----------------------------------+----------+-----+----------+----------+--+----------+--+
| | Current tax assets | | | | | 242 | | - | |
+--+----------------------+-----------+----------+-----+----------+----------+--+----------+--+
| | Cash and cash equivalents | | | | 6,091 | | 6,808 | |
+--+----------------------------------+----------+-----+----------+----------+--+----------+--+
| | Total current assets | | | | | 23,005 | | 27,992 | |
+--+----------------------+-----------+----------+-----+----------+----------+--+----------+--+
| | | | | | | | | | | |
+--+-------------+--------+-----------+----------+-----+----------+----------+--+----------+--+
| | Total | | | | | | 55,202 | | 60,397 | |
| | assets | | | | | | | | | |
+--+-------------+--------+-----------+----------+-----+----------+----------+--+----------+--+
| | | | | | | | | | | |
+--+-------------+--------+-----------+----------+-----+----------+----------+--+----------+--+
| | Current liabilities | | | | | | | | |
+--+----------------------+-----------+----------+-----+----------+----------+--+----------+--+
| | Obligations under finance leases | | | | (365) | | (364) | |
+--+----------------------------------+----------+-----+----------+----------+--+----------+--+
| | Trade and other | | | | | (11,424) | | (16,222) | |
| | payables | | | | | | | | |
+--+-------------------------+--------+----------+-----+----------+----------+--+----------+--+
| | Current tax liabilities | | | | | (347) | | (1,687) | |
+--+-------------------------+--------+----------+-----+----------+----------+--+----------+--+
| | Accruals and deferred income | | | | (6,158) | | (7,237) | |
+--+----------------------------------+----------+-----+----------+----------+--+----------+--+
| | Total current | | | | | (18,294) | | (25,510) | |
| | liabilities | | | | | | | | |
+--+----------------------+-----------+----------+-----+----------+----------+--+----------+--+
| | | | | | | | | | | |
+--+----------+-----------+-----------+----------+-----+----------+----------+--+----------+--+
| | Non-current | | | | | | | | |
| | liabilities | | | | | | | | |
+--+----------------------+-----------+----------+-----+----------+----------+--+----------+--+
| | Borrowings | | | | | | (4,500) | | - | |
+--+-------------+--------+-----------+----------+-----+----------+----------+--+----------+--+
| | Obligations under finance leases | | | | (318) | | (596) | |
+--+----------------------------------+----------+-----+----------+----------+--+----------+--+
| | Deferred tax | | | | | (804) | | (1,110) | |
| | liabilities | | | | | | | | |
+--+----------------------+-----------+----------+-----+----------+----------+--+----------+--+
| | Other non current liabilities | | | | (121) | | - | |
+--+----------------------------------+----------+-----+----------+----------+--+----------+--+
| | Retirement benefit obligation | | | | (9,599) | | (7,961) | |
+--+----------------------------------+----------+-----+----------+----------+--+----------+--+
| | Total non-current liabilities | | | | (15,342) | | (9,667) | |
+--+----------------------------------+----------+-----+----------+----------+--+----------+--+
| | | | | | | | | | | |
+--+----------+-----------+-----------+----------+-----+----------+----------+--+----------+--+
| | Total liabilities | | | | | (33,636) | | (35,177) | |
+--+----------------------+-----------+----------+-----+----------+----------+--+----------+--+
| | | | | | | | | | | |
+--+----------+-----------+-----------+----------+-----+----------+----------+--+----------+--+
| | Net | | | | | | 21,566 | | 25,220 | |
| | assets | | | | | | | | | |
+--+----------+-----------+-----------+----------+-----+----------+----------+--+----------+--+
| | | | | | | | | | | |
+--+----------+-----------+-----------+----------+-----+----------+----------+--+----------+--+
| | Equity | | | | | | | | | |
+--+----------+-----------+-----------+----------+-----+----------+----------+--+----------+--+
| | Share capital | | | | | 6,066 | | 5,995 | |
+--+----------------------+-----------+----------+-----+----------+----------+--+----------+--+
| | Share premium | | | | | 6,396 | | 6,224 | |
| | account | | | | | | | | |
+--+----------------------+-----------+----------+-----+----------+----------+--+----------+--+
| | Merger reserve | | | | | 7,371 | | 7,371 | |
+--+----------------------+-----------+----------+-----+----------+----------+--+----------+--+
| | Translation reserve | | | | | 151 | | (211) | |
+--+----------------------+-----------+----------+-----+----------+----------+--+----------+--+
| | Other reserve | | | | | (383) | | (321) | |
+--+----------------------+-----------+----------+-----+----------+----------+--+----------+--+
| | Retained earnings | | | | | 1,965 | | 6,162 | |
+--+----------------------+-----------+----------+-----+----------+----------+--+----------+--+
| | Equity attributable to shareholders of the | | | 21,566 | | 25,220 | |
| | parent | | | | | | |
+--+----------+--+--------+--+--------+----------+-----+----------+----------+--+----------+--+
Consolidated Cash Flow Statement
for the year ended 30 June 2009
+-----------+-----------+----+----+----+----+----+----+----+--+-----------+--+----------+--+
| | | | | | 2009 | | 2008 | |
+-----------+-----------+--------------+--------------+-------+-----------+--+----------+--+
| | | | | | GBP'000 | | GBP'000 | |
+-----------+-----------+--------------+--------------+-------+-----------+--+----------+--+
| Cash flows from operating activities | | | | | | |
+--------------------------------------+--------------+-------+-----------+--+----------+--+
| (Loss)/profit before interest and | | | (1,150) | | 8,022 | |
| tax | | | | | | |
+--------------------------------------+--------------+-------+-----------+--+----------+--+
| Depreciation charge | | | | 1,869 | | 1,642 | |
+-----------------------+--------------+--------------+-------+-----------+--+----------+--+
| Amortisation and impairment charge | | | 1,931 | | 531 | |
+--------------------------------------+--------------+-------+-----------+--+----------+--+
| Profit on sale of property, plant and equipment | | (6) | | (37) | |
+-----------------------------------------------------+-------+-----------+--+----------+--+
| Share-based payment charge | | | | 185 | | 252 | |
+----------------------------+---------+--------------+-------+-----------+--+----------+--+
| Retirement benefit | | | | (403) | | (384) | |
| obligation | | | | | | | |
+----------------------------+---------+--------------+-------+-----------+--+----------+--+
| Decrease in provisions | | | | - | | (85) | |
+----------------------------+---------+--------------+-------+-----------+--+----------+--+
| Cash generated from operations before working capital | 2,426 | | 9,941 | |
| movements | | | | |
+-------------------------------------------------------------+-----------+--+----------+--+
| Decrease/(increase) in trade and other receivables | | 4,023 | | (1,474) | |
+----------------------------------------------------------+--+-----------+--+----------+--+
| Decrease/(increase) in inventories and work in progress | | 993 | | (140) | |
+----------------------------------------------------------+--+-----------+--+----------+--+
| (Decrease)/increase in trade and other payables | | (5,913) | | 3,584 | |
+----------------------------------------------------------+--+-----------+--+----------+--+
| Cash generated from operations | | | 1,529 | | 11,911 | |
+--------------------------------------+-------------------+--+-----------+--+----------+--+
| Interest | | | | | (177) | | (250) | |
| paid | | | | | | | | |
+-----------+-----------+--------------+-------------------+--+-----------+--+----------+--+
| Interest received | | | | 186 | | 388 | |
+-----------------------+--------------+-------------------+--+-----------+--+----------+--+
| Income tax paid | | | | (1,949) | | (1,956) | |
+-----------------------+--------------+-------------------+--+-----------+--+----------+--+
| Net cash (outflow)/inflow from operating activities | | (411) | | 10,093 | |
+----------------------------------------------------------+--+-----------+--+----------+--+
| | | | | | | | | |
+-----------+-----------+--------------+-------------------+--+-----------+--+----------+--+
| Net cash used in investing | | | | | | |
| activities | | | | | | |
+--------------------------------------+-------------------+--+-----------+--+----------+--+
| Purchase of intangible assets | | | | (626) | | (70) | |
+---------------------------------+----+-------------------+--+-----------+--+----------+--+
| Purchase of property, plant and | | | (2,315) | | (3,946) | |
| equipment | | | | | | |
+--------------------------------------+-------------------+--+-----------+--+----------+--+
| Acquisition of subsidiary undertakings net of cash | | (205) | | (2,963) | |
| acquired | | | | | |
+----------------------------------------------------------+--+-----------+--+----------+--+
| Proceeds from sale of property, plant, equipment and | | 71 | | 149 | |
| intangible assets | | | | | |
+----------------------------------------------------------+--+-----------+--+----------+--+
| Net cash outflow from investing | | | (3,075) | | (6,830) | |
| activities | | | | | | |
+-------------------------------------------+--------------+--+-----------+--+----------+--+
| | | | | | | | | |
+-----------+-----------+-------------------+--------------+--+-----------+--+----------+--+
| Net cash used in financing activities | | | | | | |
+-------------------------------------------+--------------+--+-----------+--+----------+--+
| Proceeds from new bank loan | | | | 11,100 | | 4,600 | |
+---------------------------------+---------+--------------+--+-----------+--+----------+--+
| Repayment of bank loans | | | | (6,600) | | (5,140) | |
+---------------------------------+---------+--------------+--+-----------+--+----------+--+
| Repayments of obligations under finance leases | | (397) | | (428) | |
+----------------------------------------------------------+--+-----------+--+----------+--+
| Equity dividends paid | | | | (1,423) | | (1,600) | |
+-----------------------+--------------+-------------------+--+-----------+--+----------+--+
| Own shares purchased by ESOT | | | (62) | | (15) | |
+--------------------------------------+-------------------+--+-----------+--+----------+--+
| Net cash inflow/(outflow) from financing activities | | 2,618 | | (2,583) | |
+----------------------------------------------------------+--+-----------+--+----------+--+
| | | | | | | | | |
+-----------+-----------+--------------+-------------------+--+-----------+--+----------+--+
| Net (decrease)/increase in cash and cash equivalents | | (868) | | 680 | |
+----------------------------------------------------------+--+-----------+--+----------+--+
| | | | | | | | | |
+-----------+-----------+--------------+-------------------+--+-----------+--+----------+--+
| Cash and cash equivalents at beginning of period | | 6,808 | | 5,940 | |
+----------------------------------------------------------+--+-----------+--+----------+--+
| Effects of changes in foreign exchange rates | | | 151 | | 188 | |
+------------------------------------------------+---------+--+-----------+--+----------+--+
| Cash and cash equivalents at end of period | | 6,091 | | 6,808 | |
+----------------------------------------------------------+--+-----------+--+----------+--+
| | | | | | | | | |
+-----------+-----------+--------------+-------------------+--+-----------+--+----------+--+
| | | | | | | | | |
+-----------+-----------+--------------+-------------------+--+-----------+--+----------+--+
| | | | | | | | | |
+-----------+-----------+----+----+----+----+----+----+----+--+-----------+--+----------+--+
Eleco Group PLC
Primary Reporting Segments
Business segment analysis 2009
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | Building Systems | | | |
+-------------------------+--+--------------------+----------+-------------+----------+
| | | Precast | Other | Software | Elimination | Group |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Revenue | | 31,769 | 25,600 | 13,186 | - | 70,555 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Inter-segment revenue | | - | - | 209 | (209) | - |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Total segment revenue | | 31,769 | 25,600 | 13,395 | (209) | 70,555 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Adjusted operating | | 843 | 19 | 343 | | 1,205 |
| profit | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Amortisation of | | (185) | (36) | (491) | | (712) |
| intangible assets | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Impairment charges | | (1,000) | - | (269) | | (1,269) |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Restructuring costs | | (257) | (73) | (44) | | (374) |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Segment result | | (599) | (90) | (461) | | (1,150) |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Net finance cost | | | | | | (280) |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Loss before tax | | | | | | (1,430) |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Tax | | | | | | (39) |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Loss after tax | | | | | | (1,469) |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Segment assets | | 19,480 | 11,507 | 15,322 | | 46,309 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Unallocated assets | | | | | | 8,893 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Total Group assets | | | | | | 55,202 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Segment liabilities | | 8,179 | 4,125 | 5,096 | | 17,400 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Unallocated liabilities | | | | | | 16,236 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Total Group liabilities | | | | | | 33,636 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Other segment | | | | | | |
| information | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Capital expenditure: | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Property, plant and | | 1,526 | 519 | 268 | | 2,313 |
| equipment | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Intangible assets | | - | - | 626 | | 626 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Goodwill acquired | | - | - | 260 | | 260 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Depreciation | | 809 | 667 | 245 | | 1,721 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
Eleco Group PLC
Primary Reporting Segments
Business segment analysis 2008
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | Building Systems | | | |
+-------------------------+--+--------------------+----------+-------------+----------+
| | | Precast | Other | Software | Elimination | Group |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Revenue | | 37,864 | 33,554 | 13,491 | - | 84,909 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Inter-segment revenue | | - | 583 | 243 | (826) | - |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Total segment revenue | | 37,864 | 34,137 | 13,734 | (826) | 84,909 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Adjusted operating | | 4,379 | 3,286 | 1,368 | | 9,033 |
| profit | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Acquisition accounting | (128) | - | (33) | | (161) |
| adjustments | | | | | |
+----------------------------+----------+---------+----------+-------------+----------+
| Amortisation of | | (108) | (33) | (390) | | (531) |
| intangible assets | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Segment result | | 4,143 | 3,253 | 945 | | 8,341 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Abortive merger costs | | | | | | (319) |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Profit from operations | | | | | | 8,022 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Net finance income | | | | | | 202 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Profit before tax | | | | | | 8,224 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Tax | | | | | | (2,091) |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Profit after tax | | | | | | 6,133 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Segment assets | | 18,373 | 14,033 | 17,665 | | 50,071 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Unallocated assets | | | | | | 10,326 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Total Group assets | | | | | | 60,397 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Segment liabilities | | 11,693 | 6,758 | 5,703 | | 24,154 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Unallocated liabilities | | | | | | 11,023 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Total Group liabilities | | | | | | 35,177 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Other segment | | | | | | |
| information | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Capital expenditure: | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Property, plant and | | 3,450 | 862 | 394 | | 4,706 |
| equipment | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Intangible assets | | 1,071 | - | 70 | | 1,141 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Goodwill acquired | | 3,902 | - | - | | 3,902 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| Depreciation | | 673 | 707 | 262 | | 1,642 |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
| | | | | | | |
+-------------------------+--+----------+---------+----------+-------------+----------+
Notes
1. The financial information in this announcement, which is audited, does not
constitute statutory accounts within the meaning of section 435 of the Companies
Act 2006. Statutory accounts of the Company, on which the Auditors will report,
will be delivered to the Registrar of Companies. The comparative figures for the
year to 30th June 2008 have been taken from, but do not constitute, the
Companys statutory financial statements for that financial year restated for
the effect of transition to International Financial Reporting Standards.
2. The Group has restated the prior year valuation of the pension scheme
liabilities reported at 30th June 2008 to correct for a valuation error. This
resulted in a correction of GBP927,000 to the experience gains and a related
deferred tax credit of GBP260,000 both of which are reported through the
statement of recognised income and expense.
3. The information herein has been prepared on the basis of the accounting
policies adopted for the year ended 30th June 2009, set out in the Companys
Annual Report and Accounts and as previously disclosed in the Companys Annual
Report and Accounts for the year ended 30th June 2008.
4. A dividend of 0.4p per share was declared at the interim stage. A final
dividend representing 0.4p per share is being proposed and, if approved at the
Annual General Meeting, will be payable on the 20th November 2009 to
shareholders on the Register on 23rd October 2009.
5. The calculation of the loss per share are based on the total loss after tax
attributable to ordinary equity shareholders of GBP(1,469,000) (2008: profit
GBP6,133,000) and on 59,351,220 ordinary shares (2008: 57,970,041), being the
weighted average number of ordinary shares in issue during the year.
6. On 1st January 2009, the Group acquired the business and certain assets of
Asta Development GmbH for a total consideration of GBP258,000 before expenses.
The consideration comprised the payment of GBP65,000 in cash satisfied from the
Groups existing resources and deferred consideration of GBP193,000. During the
year Asta Development GmbH contributed turnover of GBP574,000 and an operating
profit of GBP50,000 to the results of the Software division.
7. The Annual General Meeting of Eleco plc will be held at Brewers Hall,
Aldermanbury Square, London EC2V 7HR on 12th November 2009 at 12 noon.
8. Copies of the Report and Accounts will be sent to shareholders from 15th
October 2009 and will be available from the Secretary at the Companys
registered office, Eleco House, 15 Gentlemans Field, Westmill Road, Ware,
Hertfordshire, England, SG12 0EF.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UUGCAUUPBGRR
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