ENSOR HOLDINGS PLC
FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2008
CHAIRMAN'S STATEMENT
SALES UP: 4% to �29,437,000
PROFIT BEFORE TAX UP: 19% to �1,668,000
PROPOSED DIVIDEND UP: 10% to 1.2p
I am pleased to present my statement for the year ended 31 March 2008,
including a review of our business activities and the prospects for the current
year.
Financial Review
These results are now presented under International Financial Reporting
Standards and the comparative figures have been restated to reflect the
changes, details of which were shown in our IFRS Restatement Report which was
published on 12 December 2007.
Group sales for the year were �29,437,000 (2007: �28,277,000), an increase of
4%.
Group operating profit before reorganisation costs improved by 20% to �
1,966,000 (2007: �1,643,000), a strong increase made possible by generating
additional sales from a largely unchanged overhead base.
Reorganisation costs of �150,000 (2007: �nil) arose from a business relocation
which was undertaken and completed during the year.
Financial expenses showed a significant reduction to �148,000 (2007: �237,000)
as a result of strong cash generation from the Group and good investment
performance in the pension fund last year.
After taking account of these costs, profit before tax of �1,668,000 (2007: �
1,406,000) increased by �262,000.
Group profit for the year after tax of �1,194,000 (2007: �986,000) is
equivalent to 4.1p per share (2007: 3.3p), an increase of 24%.
Operating cash flow remained strong at �2,096,000, enabling us to reduce
borrowings by �452,000 to �1,206,000, after investing significantly in products
and capital assets. Net debt reduced to 10% (2007: 15%) of total equity.
Investment expenditure included �1,083,000 in respect of property, plant and
equipment and �314,000 of goodwill in relation to the acquisitions of a tool
distributor and a timber treatment operation.
Whilst the level of working capital employed demonstrates our commitment to
servicing the ever-increasing demands of customers, we have successfully
managed its reduction relative to the increased sales for the year.
I believe these results reflect the continued good progress of the Group's
businesses.
Trading
Our building products businesses performed particularly well in the first half
of the year and posted an increased operating profit of �1,496,000 for the full
year (2007: �1,215,000), making progress in the second half despite weaker
market conditions arising from the ongoing turbulence in financial markets and
higher euro costs. Gross margins were maintained nevertheless.
The purchase of an alternative site in Cheshire for part of our Brackley-based
timber and fencing business enabled us to relocate part of its production
function and to extend its service capabilities and geographical reach. We
expect the benefits of this expansion to contribute fully in the coming year.
Costs of �150,000 were charged during the year in respect of the relocation.
The market position of our roofing tools and ancillaries business was
strengthened by the acquisition and integration of the business of a small
competitor.
The Group's other building products businesses, encompassing construction
materials and industrial doors, increased sales and profitability year on year.
Our specialist packaging materials business continued to grow, achieving
exceptionally strong results throughout the year and generating an operating
profit of �321,000 (2007: �257,000).
The rubber processing and general electric motor companies experienced a
difficult but successful year. Sales reduced slightly to �2,336,000 (2007: �
2,439,000) as greater emphasis was placed on higher-margin and lower-risk
business. Although the trading profits were enhanced as a result, one-off lease
provisions left operating profits a little lower at �149,000 (�2007: �171,000).
Prospects
Although market conditions are presently more difficult than at this time last
year, new facilities, newly introduced products and product improvements
provide opportunities to counter the impact of general economic uncertainty. We
are therefore cautiously optimistic for the Group's prospects for the current
year.
We are financially well placed to take advantage of appropriate acquisition
opportunities to strengthen the Group.
Dividend
Having considered the strength of our results and balance sheet and the outlook
for the coming year, the Board proposes to pay a final dividend of 0.78p per
share (2007: 0.70p), increased by 11% over the previous year.
This dividend, together with the interim dividend of 0.42p already paid, would
result in total dividends for the year of 1.20p per share (2007: 1.09p).
Subject to approval at the Annual General Meeting, the final dividend will be
paid on 8 August 2008 to shareholders on the register on 27 June 2008.
Employees
Once again, on your behalf, I would like to extend my thanks to the staff of
the Ensor Group companies for their hard work and skill, which continues to
generate these results.
K A Harrison TD
Chairman
13 June 2008
Audited Consolidated Income Statement
for the year ended 31 March 2008
2008 2007
�'000 �'000
Revenue 29,437 28,277
Cost of sales (20,049) (19,377)
______ ______
Gross profit 9,388 8,900
Distribution costs (1,584) (1,503)
Administrative expenses (5,838) (5,754)
______ ______
Operating profit 1,966 1,643
Reorganisation costs (150) -
Financial expenses (148) (237)
______ ______
Profit before tax 1,668 1,406
Income tax expense (474) (420)
______ ______
Profit for the year attributable to equity 1,194 986
shareholders
______ ______
Earnings per share
Basic 4.1p 3.3p
Fully diluted 3.9p 3.3p
______ ______
Dividends per share
Interim dividend paid 0.420p 0.390p
Final dividend proposed 0.780p 0.700p
______ ______
1.200p 1.090p
______ ______
Audited Consolidated Balance Sheet
at 31 March 2008
2008 2007
�'000 �'000
ASSETS
Non-current assets
Property, plant & equipment 5,969 5,496
Intangible assets 3,147 2,833
______ ______
Total non-current assets 9,116 8,329
______ ______
Current assets
Inventories 4,415 4,392
Trade and other receivables 5,641 6,047
______ ______
Total current assets 10,056 10,439
______ ______
Total assets 19,172 18,768
______ ______
LIABILITIES
Non-current liabilities
Retirement benefit obligations 572 1,033
Deferred tax 117 97
______ ______
Total non-current liabilities 689 1,130
______ ______
Current liabilities
Cash and cash equivalents 1,206 1,604
Interest bearing loans - 54
Trade and other payables 5,225 5,155
______ ______
Total current liabilities 6,431 6,813
______ ______
Total liabilities 7,120 7,943
______ ______
NET ASSETS 12,052 10,825
______ ______
EQUITY
Share capital 2,945 2,945
Share premium 470 470
Revaluation reserve 871 871
Retained earnings 7,766 6,539
______ ______
Total equity attributable to equity shareholders 12,052 10,825
______ ______
Other Audited Statements
for the year ended 31 March 2008
Consolidated Statement of Recognised Income and Expense (SORIE)
2008 2007
�'000 �'000
Profit for the financial year 1,194 986
Actuarial gain 518 743
Related deferred tax (155) (222)
______ ______
Total recognised income and expense for the financial 1,557 1,507
period
______ ______
Consolidated Statement of Changes in Shareholders' Equity
2008 2007
�'000 �'000
Opening shareholders' equity at 1 April 2007 10,825 9,613
Recognised income and expenditure for the financial 1,557 1,507
period
Issue of new shares - 4
Dividends paid (330) (299)
______ ______
Closing shareholders' equity at 31 March 2008 12,052 10,825
______ ______
Audited Consolidated Cash Flow Statement
for the year ended 31 March 2008
2008 2007
�'000 �'000
Cash flows from operating activities
Profit for the year attributable to equity shareholders 1,194 986
Depreciation charge 499 492
Finance expense 148 237
Income tax expense 474 420
Profit on disposal of property, plant & equipment (35) (3)
_______ _______
Operating cash flow before changes in working capital 2,280 2,132
Decrease/(increase) in inventories 24 (23)
Decrease/(increase) in receivables 406 (279)
(Decrease)/increase in payables (90) 267
_______ _______
Cash generated from operations 2,620 2,097
Interest paid (156) (196)
Income taxes paid (368) (282)
_______ _______
Net cash generated from operating activities 2,096 1,619
_______ _______
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 146 82
Acquisition of property, plant and equipment (501) (401)
Acquisition of going concern (818) -
_______ _______
Net cash absorbed by investing activities (1,173) (319)
_______ _______
Cash flows from financing activities
Issue of ordinary share capital - 4
Repayment of loans (50) (200)
Capital element of finance lease payments (4) (12)
Equity dividends paid (330) (299)
Contribution to pension scheme in excess of charge to (141) (148)
income
_______ _______
Net cash absorbed by financing activities (525) (655)
_______ _______
Net increase in cash and equivalents 398 645
Opening cash and cash equivalents (1,604) (2,249)
_______ _______
Closing cash and cash equivalents (1,206) (1,604)
_______ _______
NOTES
1. Accounting policies
Basis of preparation
The consolidated financial statements of Ensor Holdings PLC have been prepared
in accordance with International Financial Reporting Standards (IFRSs) as
adopted by the European Union and as applied in accordance with the provisions
of the Companies Act 1985 for the first time. The Group financial statements
have been prepared under the historical cost convention, with the exception of
the Group's properties which have been stated at deemed cost in accordance with
the transition requirements of IFRS.
IFRS transitional arrangements
Ensor Holdings PLC reported under UK GAAP in its previous financial statements
for the year ended 31 March 2007. A reconciliation of profits as reported under
UK GAAP for the year ended 31 March 2007, to the revised profit and net assets
reported under IFRS at that date was provided in the company's interim
announcement issued in December 2007. Copies of the interim statement are
available on the company's website.
Basis of consolidation
Where the Company has the power, either directly or indirectly, to govern the
financial and operating policies of another entity so as to obtain benefits
from its activities, the entity is classified as a subsidiary. The consolidated
financial statements present the results of the Company and its subsidiaries
(The Group) as if they formed one single entity. Intercompany transactions and
balances between Group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business
combinations using the purchase method. In the consolidated balance sheet, the
subsidiary's identifiable assets, liabilities and contingent liabilities are
initially recognised at their fair values at the acquisition date. The results
of acquired operations are included in the consolidated income statement from
the date on which control is obtained.
2. Earnings per share
The calculation of earnings per share is based upon the profit after taxation
of �1,194,000 (2007: �986,000) divided by the weighted average number of
ordinary shares in issue during the year, 29,445,659 (2007: 29,434,906). The
fully diluted earnings per share are based upon the weighted average of
30,305,708 shares (2007: 30,069,823). The dilution in both years is due to
subsisting share options.
3. Analysis of changes in net debt
At At
31 March 31 March
2007 Cashflows 2008
�'000 �'000 �'000
Bank overdraft (1,604) 398 (1,206)
Bank loans (50) 50 -
Finance leases (4) 4 -
______ ______ ______
(1,658) 452 (1,206)
______ ______ ______
4. Reconciliation of net cash flow to movement in net debt
2008 2007
�'000 �'000
Increase in cash in the year 398 645
Cash outflow from repayment of debt 54 212
______ ______
Movement in net debt arising from cash flow 452 857
Net debt at 1 April 2007 (1,658) (2,515)
______ ______
Net debt at 31 March 2008 (1,206) (1,658)
______ ______
5. 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 2008 or 31 March 2007 but is derived from those accounts. Statutory
accounts for 2007 have been delivered to the Registrar and those for 2008 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.
6. 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 Tuesday 5 August 2008.
The Report and Accounts will be posted to shareholders and be available from
the Company's website at www.ensor.co.uk shortly. Additional copies of the
Annual Report and of this statement will be available at the Company's
registered office.
Enquiries:
Ensor Holdings PLC
Paul Parnham/Marcus Chadwick
0161 945 5953
Hanson Westhouse Limited
Tim Feather/Matthew Johnson
0113 246 2610
END
Ensor (LSE:ESR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ensor (LSE:ESR)
Historical Stock Chart
From Jul 2023 to Jul 2024
