ENSOR HOLDINGS PLC
PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 MARCH 2007
Chairman's Statement
Highlights
* Sales Turnover: Up 6% to over �28m
* Operating Profit from Continuing Activities: Up 30% to over �1.6m
* Property Value: Up by �2m
* Proposed Dividend: Up by 9%
Report and Results
Ensor has had a good year. I am pleased to report there has been significant
progress with increased turnover to �28,277,000 (2006 : �26,704,000) and profit
before interest has increased by some 34%, after allowing for the previous
year's one-off pension adjustment. This leaves a profit for the year before
interest of �1,520,000 (2006 : �1,511,000). This, I feel, is a very
satisfactory increase. The financial charges have reduced to �237,000 (2006 :
�348,000) due to investment performance in the pension fund. These figures
give an overall improved profit and our taxation has increased to �426,000
(2006: �362,000).
In the year, our successful Chief Executive, Tony Coyne, reached retirement age
but remains with us as a Non-executive Director continuing to give his
experience for the future development of the Company. We are joined by Paul
Parnham, as new Chief Executive; he has extensive experience in business
activities both in the UK and abroad and I wish him well in this exacting role.
Trading & Prospects
Each company in the Group was profitable, with good increases in margin from
our companies distributing tools for the building industry, construction
materials and supplies to the commercial and industrial door market. Also, our
specialist packaging supply company performed well, as did our fencing and gate
manufacturing supply company. The rubber product company had a difficult but
successful year and, in total, the companies produced an excellent, improved
performance. Much of this improvement was helped by the efficient and
well-managed office which Ensor maintains in China where a number of products
are sourced and manufactured.
All our companies have plans to improve both sales and margin in the future.
Our fencing and gate company is increasing its capacity on a new site in the
north of England. This and other measures are in hand to improve prospects.
Several add-on opportunities may become available which, if thought suitable by
the Board, will be progressed.
Balance Sheet
Our cash position remains satisfactory, our bank borrowing is well controlled
and our gearing is now only 16% (2006 : 36%). Net debt was reduced by �857,000
to �1,658,000 as a result of strong cash generation from operating activities.
A recent, professional property valuation has been completed which produces a
surplus over the previous balance sheet value of over �2,000,000. This does
not include additional values which could be envisaged should planning laws
permit in the medium to long term.
Dividend
The Board considers that an increase in dividend is well justified and is
proposing a final dividend of 0.70p per share (2006 : 0.625p) making a total
for the year of 1.09p (2006 : 1.00p) - an increase of 9% for the year. This
total dividend is about 2.7 times covered by our increased earnings of 2.9p per
share.
Subject to approval at the Annual General Meeting, the final dividend will be
payable on 10 August 2007 to shareholders on the register on 29 June 2007.
Acknowledgements
I feel sure that shareholders will join me in thanking all the staff at Ensor
for these excellent results and feel confident that the Company is in good
heart for moving forward.
Ken Harrison
Chairman
15 June 2007
AUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2007
2007 2007 2006 2006
�'000 �'000 �'000 �'000
Turnover 28,277 26,704
Cost of sales (19,377) (18,458)
______ ______
Gross profit 8,900 8,246
Distribution costs (1,503) (1,359)
Administrative expenses (5,877) (5,376)
______ ______
(7,380) (6,735)
Operating profit
Continuing operations 1,662 1,279
Pension scheme curtailment - 374
Amortisation of goodwill (142) (142)
______ ______ ______ ______
Profit on ordinary activities before 1,520 1,511
interest
Interest payable (196) (193)
Other finance charges (41) (155)
______ ______
(237) (348)
______ ______
Profit before taxation 1,283 1,163
Taxation (426) (362)
______ ______
Profit for the year 857 801
______ ______
Dividends per share
Interim dividend paid 0.390p 0.375p
Final dividend proposed 0.700p 0.625p
______ ______
1.090p 1.000p
______ ______
Earnings per share
Basic and diluted 2.9p 2.7p
Basic before exceptional items 2.9p 1.8p
______ ______
AUDITED BALANCE SHEETS
at 31 March 2007
Group Group Company Company
2007 2006 2007 2006
�'000 �'000 �'000 �'000
Fixed assets
Goodwill 2,138 2,280 - -
Tangible assets 5,496 3,525 2,051 1,049
Investments - - 12,068 10,286
______ ______ ______ ______
7,634 5,805 14,119 11,335
Current assets
Stocks 4,392 4,369 - -
Debtors 6,051 5,768 351 316
______ ______ ______ ______
10,443 10,137 351 316
Creditors: amounts falling due within (6,813) (7,234) (4,939) (3,568)
one year
______ ______ ______ ______
Net current assets/(liabilities) 3,630 2,903 (4,588) (3,252)
______ ______ ______ ______
Total assets less current liabilities 11,264 8,708 9,531 8,083
Creditors: amounts falling due after
more than one year - (54) - (50)
______ ______ ______ ______
Net assets excluding pension liability 11,264 8,654 9,531 8,033
Pension liability (1,033) (1,628) (1,033) (1,628)
______ ______ ______ ______
10,231 7,026 8,498 6,405
______ ______ ______ ______
Capital and reserves
Called up share capital 2,945 2,941 2,945 2,941
Share premium account 470 470 470 470
Revaluation reserve 2,993 877 1,225 197
Profit and loss account 3,823 2,738 3,858 2,797
______ ______ ______ ______
Equity shareholders' funds 10,231 7,026 8,498 6,405
______ ______ ______ ______
AUDITED CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2007
2007 2006
�'000 �'000
Net cash inflow from operating activities 2,097 1,463
______ ______
Returns on investments and servicing of finance
Interest paid (194) (185)
Interest element of finance lease payments (2) (3)
______ ______
Net cash outflow from servicing of finance (196) (188)
______ ______
Taxation
UK corporation tax paid (282) (399)
______ ______
Net cash outflow from payment of taxation (282) (399)
______ ______
Capital expenditure and financial investment
Purchase of tangible fixed assets (401) (482)
Sale of tangible fixed assets 82 65
______ ______
Net cash outflow from capital expenditure and financial
investment (319) (417)
______ ______
Acquisitions and disposals
Acquisition of subsidiary undertaking - (855)
______ ______
Net cash outflow from acquisition - (855)
______ ______
Pension scheme deficit recovery payments (148) (120)
______ ______
Equity dividends paid (299) (294)
______ ______
Net cash inflow/(outflow) before use of liquid resources and 853 (810)
financing
______ ______
Financing
Issue of shares 4 -
Repayment of term loans (200) (200)
Capital element of finance lease payments (12) (49)
______ ______
Net cash outflow from financing (208) (249)
______ ______
Increase/(decrease) in cash in the year 645 (1,059)
______ ______
OTHER AUDITED STATEMENTS
for the year ended 31 March 2007
Consolidated Statement of Recognised Gains and Losses
2007 2006
�'000 �'000
Profit for the financial year 857 801
Actuarial gain 743 555
Related deferred tax (222) (166)
Revaluation of freehold properties 2,122 -
______ ______
Total recognised gains for the year 3,500 1,190
______ ______
Reconciliation of Movements in Equity Shareholders' Funds
Group Group Company Company
2007 2006 2007 2006
�'000 �'000 �'000 �'000
Opening shareholders' funds 7,026 6,130 6,405 5,035
Recognised gains for the year 3,500 1,190 2,388 1,664
Shares issued 4 - 4 -
Dividends paid (299) (294) (299) (294)
______ ______ ______ ______
Closing equity shareholders' 10,231 7,026 8,498 6,405
funds
______ ______ ______ ______
NOTES
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 the following changes are
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.
Earnings per share
The calculation of earnings per share is based upon the profit after taxation
of �857,000 (2006 : �801,000) divided by the weighted average number of
ordinary shares in issue during the year, 29,434,906 (2006 : 29,405,659). The
fully diluted earnings per share is based upon the weighted average of
30,069,823 shares (2006 : 30,144,743). The dilution in both years is due to
subsisting share options.
Reconciliation of operating profit to net cash inflow from operating activities
2007 2006
�'000 �'000
Operating profit 1,520 1,511
Depreciation of tangible fixed assets 473 479
Amortisation of intangible fixed assets 142 142
Profit on sale of tangible fixed assets (3) (14)
Pension scheme curtailment - (374)
Increase/(decrease) in stocks (23) 16
Increase in debtors (279) (902)
Increase in creditors 267 605
______ ______
Net cash inflow from operating activities 2,097 1,463
______ ______
Analysis of changes in net debt
At At
31 March 31 March
2006 Cashflows 2007
�'000 �'000 �'000
Bank overdraft (2,249) 645 (1,604)
Bank loans (250) 200 (50)
Finance leases (16) 12 (4)
______ ______ ______
(2,515) 857 (1,658)
______ ______ ______
Reconciliation of net cash flow to movement in net debt
2007 2006
�'000 �'000
Increase/(decrease) in cash in the year 645 (1,059)
Cash outflow from repayment of debt 212 249
______ ______
Movement in net debt arising from cash flow 857 (810)
Net debt at 1 April 2006 (2,515) (1,705)
______ ______
Net debt at 31 March 2007 (1,658) (2,515)
______ ______
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 2007 or 31 March 2006 but is derived from those accounts. Statutory
accounts for 2006 have been delivered to the Registrar and those for 2007 will
be delivered following the Company's Annual General Meeting. The Independent
Auditors have reported on these accounts. Their reports were unqualified and
did not contain statements under section 237(2) or (2) of the Companies Act
1985.
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 10.30
a.m. on Thursday 19 July 2007.
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 0161 945 5953
Ken Harrison
Hanson Westhouse Limited 0113 246 2610
Tim Feather / Matthew Johnson
END
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