Eleco Hldgs PLC - Final Results
October 27 1997 - 4:43AM
UK Regulatory
RNS No 6661m
ELECO HOLDINGS PLC
27th October 1997
Eleco Holdings plc
Preliminary results for the year ending
30 June 1997
* Return to profits in second half
* Second half operating profits of #477,000 compared with
#1,219,000 loss in the first half and #214,000 loss in
corresponding period last year.
* Reduction in bank borrowings during the second half
* The Board does not recommend a dividend but will do so as
soon as the Group's performance permits.
Outlook
"Over the past nine months a wide range of actions have been
taken aimed at strengthening the Group and its constituent
businesses. I believe that the Group is now in a sounder
position as a consequence. There is still much to be done and
the road to recovery will not be easy. However, I believe the
return to profit in the second half year and strong order books
across the Group will provide a good basis for further
progress."
John Ketteley
Executive Chairman
27 October 1997
Further information:
John Ketteley
Executive Chairman
Eleco Holdings plc 01992 440 311
David Dannhauser
Finance Director
Eleco Holdings plc 01992 440 311
David Millham
Millham Communications 0171 256 5756
Eleco Holdings plc
Preliminary results for the year ending
30 June 1997
Extracts from the Executive Chairman's statement
John Ketteley, Executive Chairman of Eleco Holdings plc, reports
that:
"I am pleased to be able to report that the measures we have
taken since I became Executive Chairman in January 1997 have
resulted in a profit before tax of #237,000 in the second half,
following the loss before tax of #1,556,000 sustained in the
first half of the year. It is particularly encouraging to note
the progress that has been achieved at the operating level. The
Group achieved operating profits in the second half of #477,000
compared with an operating loss of #1,219,000 in the first half
and a loss of #214,000 in the corresponding period last year."
Property
"In my statement at the half-year I said that we intended to
accelerate the sales of our remaining non-operational
properties. I am pleased to report that sales of #682,000 were
completed by the balance sheet date with a further #335,000 of
completions since then."
Borrowings
"The Group's property activities in the 1980s left a legacy of a
very high level of debt. A good deal has been done in recent
years to reduce borrowings and bonding. The Group is now on a
sounder financial footing but the impact on shareholders' funds
of restructuring during the year was to increase gearing at the
balance sheet date to 82 per cent. from 64 per cent., although
net borrowings were almost unchanged at #4,955,000 as compared
with #4,928,000 at 30 June 1996. Having overseen a reduction in
borrowings during the second half, a key objective I shall
pursue for the current year will be to reduce the Group's
gearing."
Dividend
"Despite the return to profit in the second half-year, having
regard to the performance for the year as a whole, the Board has
determined that it would not be appropriate to recommend the
payment of a dividend but will do so as soon as the Group's
performance permits."
Outlook
"Over the past nine months, a wide range of actions have been
taken aimed at strengthening the Group and its constituent
businesses. I believe that the Group is now in a sounder
position as a consequence. There is still much more to be done
and the road to recovery will not be easy. However, I believe
the return to profit in the second half year and strong order
books across the Group will provide a good basis for further
progress."
Consolidated Profit and Loss Account
FOR THE YEAR ENDED 30 JUNE 1997
1997 1997 1996 1996
Notes #'000 #'000 #'000 #'000
Turnover
Continuing operations 2 29,127 25,305
Discontinued
operations 2 114 316
---------------------------------------------------------------
29,241 25,621
Cost of sales (20,267) (16,813)
---------------------------------------------------------------
Gross profit 8,974 8,808
---------------------------------------------------------------
Operating (loss)/profit
Continuing operations (614) (62)
Discontinued operations (128) 29
---------------------------------------------------------------
Total operating loss (742) (33)
Loss on disposal of (116) (107)
tangible fixed asset
---------------------------------------------------------------
Loss on ordinary (858) (140)
activities before interest
Interest receivable 24 32
Interest payable (485) (559)
---------------------------------------------------------------
(461) (527)
---------------------------------------------------------------
Loss on ordinary (1,319) (667)
activities before taxation
Taxation (166) (67)
---------------------------------------------------------------
Loss on ordinary (1,485) (734)
activities after taxation
---------------------------------------------------------------
Dividends - (194)
---------------------------------------------------------------
Retained loss for the year (1,485) (928)
---------------------------------------------------------------
Loss per 10p ordinary share
Net basis 3 (3.8)p (2.2)p
---------------------------------------------------------------
Consolidated Balance Sheet
AT 30 JUNE 1997
1997 1996
Notes #'000 #'000
Fixed assets
Intangible assets - 118
Tangible assets 6,675 7,194
Investments 126 81
-----------------------------------------------------
6,801 7,393
-----------------------------------------------------
Current assets
Stocks 3,796 4,907
Debtors 6,917 7,275
Cash at bank and in hand 244 231
-----------------------------------------------------
10,957 12,413
Creditors: amounts falling (10,274) (9,483)
due within one year
-----------------------------------------------------
Net current assets 683 2,930
-----------------------------------------------------
Total assets less current
liabilities 7,484 10,323
Creditors: amounts falling due (1,421) (2,538)
after more than one year
Provisions for liabilities
and charges (33) (78)
-----------------------------------------------------
Net assets 6,030 7,707
-----------------------------------------------------
Capital and reserves
Called up share capital 3,863 3,863
Share premium account 4,434 4,434
Merger reserve 367 367
Revaluation reserve 388 659
Profit and loss account (3,022) (1,616)
-----------------------------------------------------
Equity shareholders' funds 6,030 7,707
-----------------------------------------------------
Consolidated Cash Flow Statement
FOR THE YEAR ENDED 30 JUNE 1997
1997 1996
Notes #'000 #'000
Operating activities
Net cash inflow/(outflow) 1,029 (425)
from continuing operations
Net cash outflow from (46) (187)
discontinued operations
-----------------------------------------------------
Net cash inflow/(outflow) (i) 983 (612)
from operating activities
-----------------------------------------------------
Returns on investment and servicing of finance
Interest received 24 32
Interest paid (453) (521)
Interest element of (32) (41)
finance lease rentals
-----------------------------------------------------
Net cash outflow from returns (461) (530)
on investment and servicing of finance
-----------------------------------------------------
Taxation
UK corporation tax paid (48)
Overseas tax paid (12)
-----------------------------------------------------
Net cash outflow from taxation (60)
-----------------------------------------------------
Capital expenditure and financial investment
Purchase of fixed assets (483) (594)
Investments in associated
undertakings (45) (81)
Sale of tangible fixed assets 445 657
Loss on disposal of tangible
fixed asset (73) (107)
Sale of subsidiary undertaking - 340
-----------------------------------------------------
Net cash (outflow)/inflow
from capital expenditure
and financial investment (156) 215
-----------------------------------------------------
Equity dividends paid (194)
-----------------------------------------------------
Net cash inflow/(outflow)
before financing 112 (927)
-----------------------------------------------------
Financing
Issue of ordinary shares
net of expenses - 2,049
New bank loans - 3,720
Repayment of principal (145) (235)
under finance leases
Repayment of bank loans (1,083) (1,148)
----------------------------------------------------
Net cash (outflow) (ii) (1,228) 4,386
/inflow from financing
----------------------------------------------------
(Decrease)/increase (ii) (1,116) 3,459
in cash in the period
----------------------------------------------------
(i) Reconciliation of operating loss to net cash flow
1997 1996
#'000 #'000
Operating loss (742) (33)
Depreciation and amortisation 1,004 865
(Profit)/loss on sale
of tangible fixed assets (24) 11
Working capital change 663 (1,239)
- continuing
Working capital change 82 (216)
- discontinued
---------------------------------------------------
Net cash inflow/(outflow) 983 (612)
from operating activities
---------------------------------------------------
(ii) Reconciliation of net cash flow to movement in net debt
1997 1996
#'000 #'000
(Decrease)/increase in
cash in the period (1,116) 3,459
Cash flow from decrease/ 1,228 (2,337)
(increase) in debt and
lease financing
---------------------------------------------------
Change in net debt resulting 112 1,122
from cash flows
Other non-cash items:
New finance leases (157) (70)
Effects of foreign 18 15
exchange rates
---------------------------------------------------
Movement in net debt in (27) 1,067
the period
Net debt at 1 July 1997 (4,928) (5,995)
---------------------------------------------------
Net debt at 30 June 1997 (4,955) (4,928)
---------------------------------------------------
1 Notes:
The figures for the year to 30 June 1997 represent unaudited
abridged financial statements and have not as yet been delivered
to the Registrar of Companies. The comparative figures for the
year to 30 June 1996 have been taken from, but do not
constitute, the Company's statutary financial statements for
that financial year. Those financial statements have been
reported on by the Company's auditors and delivered to the
Registrar of Companies. The report of the auditors was
unqualified and did not contain a statement under s237 (2) or
(3) of the Companies Act 1985.
2 Turnover and segmental analysis
Group turnover, profits and net assets were attributable as
follows
Sales Profit/(loss)
-------------------------------------------------------------
1997 1996 1997 1996
#'000 #'000 #'000 #'000
Continuing activities
Building systems 27,381 24,327 (119) 114
Rail and marine 1,188 978 286 259
Property 558 - (3) (25)
Corporate - - (778) (410)
Discontinued activities
Housing development 114 316 (70) (34)
Other - - (58) 63
-------------------------------------------------------------
Total 29,241 25,621 (742) (33)
-------------------------------------------------------------
Exceptional losses (116) (107)
-------------------------------------------------------------
Loss before interest (858) (140)
-------------------------------------------------------------
Other discontinued activities comprise Construction and
Distribution Services activities which were discontinued during
the year ended 30 June 1994.
3 Loss per share
The calculation of loss per share on the net basis is based upon
the loss attributable to members of the holding company of
#1,485,000 (1996: 734,000) and on 38,629,731 (1996: 33,246,900)
ordinary shares, being the weighted average number of ordinary
shares in issue during the year.
The Annual General Meeting of Eleco Holdings plc will be held at
Belcon House, Essex Road, Hoddesdon, Hertfordshire EN11 0DR, on
28 November 1997, at 10.00 a.m.
END
FR PBGWWUBGMUBM
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