RNS Number:4381N
Ensor Holdings PLC
13 June 2005
ENSOR HOLDINGS PLC
PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 MARCH 2005
CHAIRMAN'S STATEMENT
"An excellent result in Ensor's 125th Anniversary year"
Profit
Sales before tax
#24,537,000 #1,661,000
UP 8% UP 55%
Profit before Earnings per share
exceptional items before exceptional
and tax items
#1,259,000 2.9p
UP 17% UP 16%
Dividends
per share
1.00p
UP 18%
Results
It is pleasing to report that, in its 125th Anniversary year, Ensor has
continued to improve results with an increase in profit from the previous year.
Our turnover was higher at #24,537,000 (2004 : #22,714,000) and profit before
tax was #1,661,000 (2004 : #1,074,000), a very satisfactory increase of 55%.
These results were augmented by an exceptional profit of #402,000 on the
disposal of a surplus property, giving us a useful cash benefit.
Our interest payable has reduced slightly to #158,000 (2004 : #167,000), but our
tax charge has increased to #421,000 (2004 : #354,000).
Trading Performance
Although there is undoubtedly a general slowing in construction activities, our
companies continue to take advantage of a widening product mix, maintaining good
margins with a contribution from our office in Xiamen, China. Indeed, all our
companies have reported a good year's trading.
We have included in our report pictures of some of the products we sell which
have been very well received by the market.
The product range of our access controls company is being constantly developed
incorporating the latest safety devices to keep ahead of increasing Health &
Safety regulations.
Our specialist distribution company selling contractors tools has continued to
prosper and, since the year end, has been provided with additional warehousing
capacity to support further growth.
We have recently moved our industrial door and components company to much larger
premises which will allow for expansion of their capacity and product range.
We are now preparing to re-locate our security products and fencing company to a
new and improved site and we are hoping to complete this during the coming year.
Prospects
Although we have noted a pressure on our order books since the year end, we have
budgeted for further advances in our results, helped by our latest acquisition
which was completed in April 2005. This business, which distributes packaging
products to a range of specialist industries, was purchased for approximately
#800,000 and we are confident of a good return on this investment.
We continue to examine other add-on acquisitions and are always conscious of any
initiatives which will increase shareholder value.
Financial and Pensions
Our cash flow for the year has been very satisfactory and was enhanced by the
sale of some surplus property.
Our return on capital has again improved to 21% and the stronger cash position
has reduced our gearing to a satisfactory 21%.
Shareholders' funds have increased to #8.2m.
Much has been documented generally regarding pension situations. This year we
have invested increased contributions into the Ensor Group Pension Fund, despite
which the actuarial calculations show a deficit. This is caused, as is well
publicised, by the anticipated longer life of participants, the continued
taxation of investments of the fund and, perhaps, by over-optimistic assumptions
by actuaries in previous financial years. Happily, the notional calculation of
shortfall is a small proportion of our asset value and we have taken steps to
control our future commitments.
Dividends
We increased our interim dividend by 7% to 0.375p and, due to continued
improvements to earnings per share and a satisfactory cash position, we are now
proposing to increase the final dividend by 25% to 0.625p, giving a total
dividend for the year of 1p per share. This dividend is covered approximately 3
times, excluding exceptional items.
Subject to approval at the Annual General Meeting, the final dividend will be
paid on 12 August 2005 to shareholders on our Register on 1 July 2005.
Management & Staff
With these results, I am again indebted to our management and staff for their
contribution to an excellent year and feel sure that they will be working
towards another successful year. Also, congratulations to all at Ensor on the
Company's 125th Anniversary year.
Ken Harrison TD
Chairman
13 June 2005
AUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2005
2005 2005 2004 2004
#'000 #'000 #'000 #'000
Turnover
Continuing operations 24,537 22,714
Cost of sales (17,147) (16,163)
---------- ----------
Gross profit 7,390 6,551
Distribution costs (1,070) (937)
Administrative expenses (4,903) (4,373)
---------- ----------
(5,973) (5,310)
Operating profit
Continuing operations 1,625 1,346
Additional past service pension contributions (103) -
Amortisation of goodwill (105) (105)
---------- ---------- ---------- ----------
1,417 1,241
Exceptional item
Profit on disposal of fixed assets 402 -
---------- ----------
Profit on ordinary activities before interest 1,819 1,241
Interest payable (158) (167)
---------- ----------
Profit on ordinary activities before taxation 1,661 1,074
Taxation (421) (354)
---------- ----------
Profit after taxation 1,240 720
Dividends (294) (251)
---------- ----------
Retained profit for the year 946 469
---------- ----------
Earnings per share:
Basic 4.2p 2.5p
Diluted 4.1p 2.5p
Basic before exceptional items 2.9p 2.5p
---------- ----------
Dividends per share 1.00p 0.85p
---------- ----------
There were no recognised gains or losses other than those shown above.
AUDITED BALANCE SHEETS
at 31 March 2005
Group Group Company Company
2005 2004 2005 2004
#'000 #'000 #'000 #'000
Fixed assets
Goodwill 1,665 1,770 - -
Tangible assets 3,559 4,060 1,102 1,576
Investments - - 7,372 6,055
---------- ---------- ---------- ----------
5,224 5,830 8,474 7,631
---------- ---------- ---------- ----------
Current assets
Stocks 4,301 3,820 - -
Debtors 4,870 4,716 378 219
---------- ---------- ---------- ----------
9,171 8,536 378 219
Creditors: amounts falling due within one year (5,930) (6,610) (1,497) (831)
---------- ---------- ---------- ----------
Net current assets/(liabilities) 3,241 1,926 (1,119) (612)
---------- ---------- ---------- ----------
Total assets less current liabilities 8,465 7,756 7,355 7,019
Creditors: amounts falling due after more than one year (265) (477) (250) (463)
Provisions for liabilities and charges
Deferred tax - (26) - -
---------- ---------- ---------- ----------
8,200 7,253 7,105 6,556
---------- ---------- ---------- ----------
Capital and reserves
Called up share capital 2,941 2,940 2,941 2,940
Share premium account 470 470 470 470
Revaluation reserve 883 946 197 263
Profit and loss account 3,906 2,897 3,497 2,883
---------- ---------- ---------- ----------
Equity shareholders' funds 8,200 7,253 7,105 6,556
---------- ---------- ---------- ----------
AUDITED CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2005
2005 2004
#'000 #'000
Net cash inflow from operating activities 1,418 1,501
Returns on investments and servicing of finance
Interest paid (154) (162)
Interest element of finance lease payments (4) (5)
---------- ----------
Net cash outflow from servicing of finance (158) (167)
---------- ----------
Taxation
UK corporation tax paid (341) (256)
---------- ----------
Net cash outflow from payment of taxation (341) (256)
---------- ----------
Capital expenditure and financial investment
Purchase of tangible fixed assets (475) (315)
Sale of tangible fixed assets 990 70
---------- ----------
Net cash inflow/(outflow) from capital expenditure and financial investment 515 (245)
---------- ----------
Equity dividends paid (257) (236)
---------- ----------
Net cash inflow before use of liquid resources and financing 1,177 597
Financing
Issue of shares 1 25
Repayment of term loans (200) (200)
Capital element of finance lease payments (33) (29)
---------- ----------
Net cash outflow from financing (232) (204)
---------- ----------
Increase in cash in the year 945 393
---------- ----------
NOTES
1. Accounting policies
Basis of preparation
The financial statements are prepared in accordance with applicable accounting
standards under the historical cost convention as modified by the revaluation of
certain fixed assets.
The directors have reviewed the accounting policies in accordance with FRS 18 "
Accounting Policies" and have concluded that no changes were required from the
previous year.
Basis of consolidation
The Group financial statements consolidate the financial statements of the
Company and its subsidiary undertakings at 31 March using acquisition
accounting. The results of subsidiary undertakings acquired or disposed of
during a financial year are included from, or up to, the effective date of
acquisition or disposal. On acquisition of a subsidiary, all of the
subsidiary's assets and liabilities existing at the date of acquisition are
recorded at their fair values reflecting their condition at that date.
Profits or losses on intra-group transactions are eliminated in full.
2. Earnings per share
The calculation of earnings per share is based upon the profit after taxation of
#1,240,000 (2004 : #720,000) divided by the weighted average number of ordinary
shares in issue during the year, 29,402,454 (2004 : 29,346,178). The fully
diluted earnings per share is based upon the weighted average of 30,423,482
(2004 : 30,298,445). The dilution in both years is due to subsisting share
options.
3. Reconciliation of operating profit to net cash inflow from operating activities
2005 2004
#'000 #'000
Operating profit 1,417 1,241
Depreciation of tangible fixed assets 474 453
Amortisation of intangible assets 105 105
(Profit)/loss on sale of tangible fixed assets (25) 9
Increase in stocks (481) (330)
(Increase)/decrease in debtors (150) 21
Increase in creditors 78 2
---------- ----------
Net cash inflow from operating activities 1,418 1,501
---------- ----------
4. Analysis of changes in net debt
At 31 March Cashflows Non-cash At 31 March
2004 items 2005
#'000 #'000 #'000 #'000
Bank overdraft (2,135) 945 - (1,190)
Bank loans (650) 200 - (450)
Finance leases (37) 33 (61) (65)
---------- ---------- ---------- ----------
(2,822) 1,178 (61) (1,705)
---------- ---------- ---------- ----------
5. Reconciliation of net cash flow to movement in net debt
2005 2004
#'000 #'000
Increase in cash in the year 945 393
Cash outflow from repayment of debt 233 229
---------- ----------
Movement in net debt arising from cash flow 1,178 622
New finance leases (61) -
---------- ----------
Movement in net debt 1,117 622
Net debt at 1 April 2004 (2,822) (3,444)
---------- ----------
Net debt at 31 March 2005 (1,705) (2,822)
---------- ----------
6. Basis of preparation
The financial information set out in this preliminary announcement of results
does not constitute the Company's statutory accounts for the years ended 31
March 2005 or 31 March 2004 but is derived from those accounts. Statutory
accounts for 2004 have been delivered to the Registrar and those for 2005 will
be delivered following the Company's Annual General Meeting. The Auditors have
reported on these accounts. Their reports were unqualified and did not contain
statements under section 237(2) or (3) of the Companies Act 1985.
7. Other information
The Annual General Meeting of the Company will be held at the Company's
registered office, Ellard House, Dallimore Road, Manchester M23 9NX at 10.00am
on Thursday 21 July 2005.
The Report and Accounts will be posted to shareholders shortly. Additional
copies of the Annual Report and of this statement will be available at the
Company's registered office.
Enquiries:
Ensor Holdings PLC
Ken Harrison
0161 945 5953
Westhouse Securities LLP
David Simmons
0161 838 9140
This information is provided by RNS
The company news service from the London Stock Exchange
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