Ensor Holdings PLC
("Ensor", the "Group" or the "Company")
Interim results for the six months to 30 September 2013
Chairman's Statement
Although the results for the half-year are satisfactory, they are not what we
had anticipated. Nevertheless, we are confident that better figures are in the
pipeline and that confidence is reflected in another substantial increase in
our interim dividend.
We continue to be very satisfied with our acquisition of Technocover, a
manufacturer of security products for the utilities sector. However,
significant capital expenditure which is to be undertaken by the Water
Utilities, has been slow to start this year, resulting in a modest increase in
year-on-year Group sales to £16.3m (2012: £16.2m). Technocover has a strong
order book and is now receiving instructions to commence this work, but the
benefits are now expected to come through principally in the results for next
year.
As reported at our last year end, we envisaged further work to enable us to
maximise our return from the company. We have now successfully taken
significant cost out of the business and fully provided for the associated
charges. This puts the Company in a healthy position to achieve its full
potential. Further cash has been returned to the Group by Technocover and the
forecasts for the future are strong.
Our other subsidiaries have had a solid half-year, making progress across the
board. Ensor Building Products has again made progress in the specialist
roofing and drainage sectors taking greater market share. Woods, our packaging
business has capitalised on the increased retail activity supplying specialised
covers and strapping. OSA and Ellard, who provide components, doors, electric
motors and controls to the door industry, have seen increased activity in their
markets. Our roofing tools business, CMS, has had perhaps the toughest of half
years with intense competition and pressure on margins. Despite this however,
the company has made satisfactory progress.
The reorganisation costs and slow start at Technocover have offset the progress
made elsewhere, resulting in a reduction in operating profit to £853,000 (2012:
£1,215,000).
Control of working capital is an area which we regard as vital to our business
operations. After significant capital expenditure on machinery, equipment and
commercial vehicles, the Group generated a cash surplus of £1,272,000. This is
a tribute to the good credit control and cash collections at the subsidiaries
and management of stock and work in progress. Gearing has been reduced to 7%
(2012: 25%)
During the period Ellard, our door motors and controls company, successfully
moved into purpose-built premises, within the Manchester Airport City
Enterprise Zone. We are confident that these new premises will help Ellard to
grow further in an expanding market.
Following exchange of contracts for the sale of our land in Stockport earlier
this year, planning permission has now been granted for residential
development. We are still confident that a completion of the sale of the site
will be at the end of 2014. At Brackley, our planning application has been
submitted and acknowledged by the South Northamptonshire local authority. As
previously reported, technical issues due the proximity of the river Ouse and
changes to government planning guidelines are making this a prolonged process.
We are in no hurry to sell and we continue to satisfy any queries as they
arise.
Much has been written about the recovery in the UK economy. At the beginning of
the year, we felt there were a number of false starts and patchy trading
trends. With caution, there are signs of improvement in the markets in which we
operate, but we must remain careful to recognise any potential setbacks.
We feel we are a progressive, if prudent, Group. Accordingly, for the future,
we are constantly studying companies in allied and similar sectors to our own.
We are watching for acquisition and business opportunities which could enhance
Ensor and lead to improved shareholder value.
We are proposing to pay a net interim dividend of 0.5p per share, which is a
25% increase on last year's interim dividend (2012: 0.4p). The interim dividend
will be payable in cash only and will be paid on 24 January 2014 to
shareholders registered on 27 December 2013. The ex dividend date will be
Monday 23 December 2013.
The Ensor Group employs over 240 men and women, on ten sites, around the UK and
in China. To everyone, whatever your responsibilities, thank you for your vital
contribution to our results.
Ken Harrison TD - Chairman.
Enquiries:
Ensor Holdings PLC
Roger Harrison / Marcus Chadwick
0161 945 5953
Westhouse Securities Limited
Richard Baty / Paul Gillam
020 7601 6100
Consolidated Income Statement
for the six months ended 30 September 2013
Note Unaudited Unaudited Audited
6 months 6 months 12 months
30/9/13 30/9/12 31/3/13
£'000 £'000 £'000
Revenue 16,315 16,240 32,770
Cost of sales (12,248) (12,063) (24,234)
----------- ----------- -----------
Gross profit 4,067 4,177 8,536
Administrative expenses (3,214) (2,962) (6,109)
----------- ----------- -----------
Operating profit 853 1,215 2,427
Finance costs (151) (146) (295)
----------- ----------- -----------
Profit before tax 702 1,069 2,132
Income tax expense 2 (148) (229) (474)
----------- ----------- -----------
Profit for the period attributable 554 840 1,658
to equity shareholders of the parent
company
====== ====== ======
Earnings per share 3
Basic and fully diluted 1.8p 2.8p 5.5p
====== ====== ======
Dividends per share
Dividends paid 0.800p 0.525p 0.925p
Dividends proposed 0.500p 0.400p 0.800p
====== ====== ======
Consolidated Statement of Comprehensive Income
for the six months ended 30 September 2013
Profit for the period 554 840 1,658
Other comprehensive income:
Actuarial loss and related deferred tax - (114) (398)
----------- ----------- -----------
Total comprehensive income attributable 554 726 1,260
to equity shareholders of the parent
company
====== ====== ======
Consolidated Statement of Financial Position
at 30 September 2013
Unaudited Unaudited Audited
30/9/13 30/9/12 31/3/13
£'000 £'000 £'000
ASSETS
Non-current assets
Property, plant & equipment 6,833 6,837 6,901
Intangible assets 3,071 3,105 3,087
Deferred tax asset 612 654 632
----------- ----------- -----------
Total non-current assets 10,516 10,596 10,620
----------- ----------- -----------
Current assets
Inventories 2,737 2,907 3,109
Trade and other receivables 6,276 7,426 8,001
Cash and cash equivalents 526 - 298
----------- ----------- -----------
Total current assets 9,539 10,333 11,408
----------- ----------- -----------
Total assets 20,055 20,929 22,028
====== ====== ======
LIABILITIES
Non-current liabilities
Retirement benefit obligations (2,639) (2,723) (2,749)
Borrowings (672) (905) (810)
Other creditors (986) (886) (974)
Deferred tax (100) (92) (100)
----------- ----------- -----------
Total non-current liabilities (4,397) (4,606) (4,633)
----------- ----------- -----------
Current liabilities
Borrowings (475) (1,205) (1,514)
Current income tax liabilities (461) (314) (312)
Trade and other payables (5,715) (6,279) (6,631)
----------- ----------- -----------
Total current liabilities (6,651) (7,798) (8,457)
----------- ----------- -----------
Total liabilities (11,048) (12,404) (13,090)
====== ====== ======
NET ASSETS 9,007 8,525 8,938
====== ====== ======
EQUITY
Share capital 3,082 3,062 3,062
Share premium 552 557 522
Treasury shares - (79) -
Revaluation reserve 140 140 140
Retained earnings 5,233 4,845 5,214
----------- ----------- -----------
Total equity attributable to equity 9,007 8,525 8,938
shareholders of the parent company
====== ====== ======
Consolidated Statement of Changes in Equity
for the six months ended 30 September 2013
Attributable to equity shareholders of the parent company
Issued Share Treasury Revaluation Retained Total
Capital Premium Shares Reserve Earnings Equity
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 April 3,062 522 - 140 5,214 8,938
2013
Issue of shares 20 30 - - - 50
Purchase of - - - - (295) (295)
treasury shares
Total comprehensive - - - - 554 554
income
Dividend paid - - - - (240) (240)
----------- ----------- ----------- ------------- ----------- -----------
Balance at 30 3,082 552 - 140 5,233 9,007
September 2013
====== ====== ====== ======= ====== ======
Balance at 1 April 3,062 557 (79) 140 4,278 7,958
2012
Total comprehensive - - - - 726 726
income
Dividend paid - - - - (159) (159)
----------- ----------- ----------- ------------- ----------- -----------
Balance at 30 3,062 557 (79) 140 4,845 8,525
September 2012
====== ====== ====== ======= ====== ======
Balance at 1 April 3,062 557 (79) 140 4,278 7,958
2012
Reclassification - (35) 79 - (44) -
Total comprehensive - - - - 1,260 1,260
income
Dividend paid - - - - (280) (280)
----------- ----------- ----------- ------------- ----------- -----------
Balance at 31 March 3,062 522 - 140 5,214 8,938
2013
====== ====== ====== ======= ====== ======
Consolidated Cash Flow Statement
for the six months ended 30 September 2013
Unaudited Unaudited Audited
6 months 6 months 12 months
30/9/13 30/9/12 31/3/13
£'000 £'000 £'000
Cash flows from operating
activities
Profit for the period 554 840 1,658
attributable to equity
shareholders
Depreciation charge 282 256 535
Finance costs 151 146 295
Income tax expense 182 229 474
Loss/(profit) on disposal of 3 (16) (14)
property, plant & equipment
Profit on disposal of asset held - - (12)
for sale
Amortisation of intangible asset 16 16 34
Charge in respect of enhanced - 26 81
transfer exercise
_______ _______ _______
Operating cash flow before 1,188 1,497 3,051
changes in working capital
Decrease in inventories 372 314 112
Decrease/(increase) in 1,725 (536) (1,112)
receivables
(Decrease)/increase in payables (1,054) (56) 443
_______ _______ _______
Cash generated from operations 2,231 1,219 2,494
Interest paid (114) (90) (191)
Income taxes received/( paid) - 10 (170)
_______ _______ _______
Net cash generated from 2,117 1,139 2,133
operations before pension
exercise
Pension fund enhanced transfer - (561) (778)
value exercise
_______ _______ _______
Net cash generated from 2,117 578 1,355
operations
_______ _______ _______
Cash flows from investing
activities
Proceeds from disposal of 42 10 53
property, plant & equipment
Proceeds from disposal of assets - 150 150
held for sale
Acquisition of property, plant & (260) (263) (569)
equipment
_______ _______ _______
Net cash used in investing (218) (103) (366)
activities
_______ _______ _______
Cash flows from financing
activities
Equity dividends paid (240) (159) (280)
Issue of shares 50 - -
Purchase of treasury shares (295) - -
Amounts repaid in respect of (9) (27) (22)
finance leases
Loan repayments (133) (419) (583)
_______ _______ _______
Net cash used in financing (627) (605) (885)
activities
_______ _______ _______
Net increase/(decrease) in cash 1,272 (130) 104
and cash equivalents
Cash and cash equivalents at (951) (1,055) (1,055)
beginning of period
_______ _______ _______
Cash and cash equivalents at end 321 (1,185) (951)
of period
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Notes to the Interim Report
1. Basis of preparation
The unaudited results for the six months have been prepared in accordance with
International Financial Reporting Standards ("IFRS") and do not constitute
statutory accounts within the meaning of Section 435 of the Companies Act 2006.
The interim report has not been prepared in accordance with IAS 34, "Interim
Financial Reporting" in that it does not contain full disclosure of accounting
policies and does not detail compliance with other standards. These disclosures
are dealt with in the Group's annual report.
The statutory accounts for the year ended 31 March 2013, prepared under IFRS,
have been delivered to the Registrar of Companies and received an unqualified
audit report.
2. Income tax expense
The income tax expense is calculated using the estimated tax rate for the year
ended 31 March 2014.
3. Earnings per share
The calculation of earnings per share for the period is based on the profit for
the period divided by the weighted average number of ordinary shares in issue,
being 29,976,848 (6 months to 30 September 2012 and year ended 31 March 2013 -
30,295,976). The fully diluted earnings per share in the comparative periods is
based upon the weighted average of 30,370,576 for the 6 months to 30 September
2012 and 30,378,246 for the year ended 31 March 2013. The dilution was due to
subsisting share options.