Ensor Holdings PLC
("Ensor", the "Group" or the "Company")
Interim results for the six months to 30 September 2014
Chairman's Statement
* Sales up 11%
* Operating profit up 98%
* Dividend up 20%
This time last year I anticipated that a great deal of hard work would begin to
generate rewards this year. I am delighted that our results for this half year
reflect the confidence shown twelve months ago. All companies in the Ensor
group have performed very well and, with growing order books, I am optimistic
for the immediate future. The only shadows on the horizon could be interest
rate rises affecting market confidence, weakening foreign exchange rates and,
with an election approaching, political uncertainty next year. Despite these
concerns, I believe the Ensor group is well placed to maintain steady progress.
I have mentioned that all our subsidiaries have had a strong first six months.
Technocover, our manufacturer of high security products, as predicted, has
commenced the programmes of work for the UK water utilities. They are also
seeing increased enquiry levels which we feel will carry the company into the
next five year Asset Management Programme period of the water industry.
Progress into new markets, particularly Rail, is being made as investment in
equipment, product development and LPCB testing programmes are completed.
Ellard designs and provides specialist electric motors and controls for
industrial doors and gates, supplying these products to manufacturers in the UK
and Europe. Since moving into new purpose built premises twelve months ago, the
company has increased market share and has recently finalised an exclusive
agreement with one of its European suppliers which we believe will secure
Ellard's position in the market. Working in the same markets as Ellard, OSA
Door Parts manufactures insulated industrial doors and garage doors. Providing
close technical support to their door industry customers allows OSA to
introduce new and researched products which can be brought to market quickly.
This year OSA is expected to expand into larger premises as these new product
developments come on line. Both companies are benefiting from an increasingly
active construction market.
Ensor Building Products distributes roofing materials, including natural slates
and flat roof membranes, drainage systems and other specialist building
materials. Recent work to replace low margin, high volume products with higher
margin, lower volume alternatives has had a positive impact on the company
result. This trend is forecast to continue.
Wood's Packaging has made significant progress this year following an excellent
trend of results in recent years. Supplying general packaging materials,
specialist protection for furniture transportation and removal, the company has
benefitted from a buoyant retail market. Close co-operation with suppliers in
China allows Woods to develop new and competitive products.
Our subsidiaries are assisted by our China office. Located in Xiamen, a free
port city on the east coast of China, our team of three professionals handles
technical issues, monitors quality and organises logistics.
Our gearing remains a modest 2% (March 2014: 2%) despite a general increase in
working capital due to higher trading activity.
Since the end of the first half of the year we have acquired, for £1,000,000,
the remaining 10% of the shares of Technocover not already owned by Ensor. This
was in accordance with the original 2012 purchase agreement for Technocover.
We continue to look for ways to enhance shareholder value. With this in mind,
we are watching for opportunities which could achieve this but not at any cost
or unacceptable risk to the group.
Recently, we have been able to increase dividends each year. We are proposing
to pay a net interim dividend of 0.6p (2013: 0.5p) per share. This is an
increase of 20% on last year. The interim dividend will be payable in cash only
and will be paid on 23 January 2015 to shareholders registered on 30 December
2014. The ex-dividend date will be 20 January 2015.
Each year I have pleasure thanking the men and women who work around the Ensor
Group. This time is no exception. My appreciation and admiration go to everyone
for your contribution and hard work.
K A Harrison TD
Chairman
9 December 2014
Enquiries:
Ensor Holdings PLC
Roger Harrison / Marcus Chadwick
0161 945 5953
Westhouse Securities Limited
Robert Finlay
020 7601 6100
Consolidated Income Statement
for the six months ended 30 September 2014
Note Unaudited Unaudited Audited
6 months 6 months 12 months
re-presented
30/9/14 30/9/13 31/3/14
£'000 £'000 £'000
Revenue 17,011 15,287 30,558
Cost of sales (12,664) (11,571) (23,081)
------- ------- -------
Gross profit 4,347 3,716 7,477
Administrative expenses (2,884) (2,977) (5,650)
------- ------- -------
Operating profit 1,463 739 1,827
Finance costs (118) (151) (301)
------- ------- -------
Profit before tax 1,345 588 1,526
Income tax expense 2 (290) (121) (242)
------- ------- -------
Profit for the year on continuing 1,055 467 1,284
operations
Discontinued operation - 87 (182)
------- ------- -------
Profit for the period attributable 1,055 554 1,102
to equity shareholders of the
parent company
======= ======= =======
Earnings per share 3
Continuing operations 3.5p 1.5p 4.3p
Discontinued operations 0.0p 0.3p (0.6p)
------- ------- -------
3.5p 1.8p 3.7p
======= ======= =======
Dividends per share
Dividends paid 1.0p 0.8p 0.525p
Dividends proposed 0.6p 0.5p 0.400p
======= ======= =======
Consolidated Statement of Comprehensive Income
for the six months ended 30 September 2014
Profit for the period 1,055 554 1,102
Other comprehensive income:
Actuarial loss and related deferred tax (35) - 190
------- ------- -------
Total comprehensive income attributable 1,020 554 1,292
to equity shareholders of the parent
company
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Consolidated Statement of Financial Position
at 30 September 2014
Unaudited Unaudited Audited
30/9/14 30/9/13 31/3/14
£'000 £'000 £'000
ASSETS
Non-current assets
Property, plant & equipment 5,840 6,833 6,413
Intangible assets 2,688 3,071 2,704
Deferred tax asset 440 612 475
------- ------- -------
Total non-current assets 8,968 10,516 9,592
------- ------- -------
Current assets
Assets held for sale 496 - 496
Inventories 2,940 2,737 2,646
Trade and other receivables 7,928 6,276 6,515
Cash and cash equivalents 447 526 585
------- ------- -------
Total current assets 11,811 9,539 10,242
------- ------- -------
Total assets 20,779 20,055 19,834
======= ======= =======
LIABILITIES
Non-current liabilities
Retirement benefit obligations (2,098) (2,639) (2,264)
Borrowings (394) (672) (533)
Other creditors (1,029) (986) (986)
Deferred tax (73) (100) (73)
------- ------- -------
Total non-current liabilities (3,594) (4,397) (3,856)
------- ------- -------
Current liabilities
Borrowings (277) (475) (275)
Current income tax liabilities (668) (461) (378)
Trade and other payables (5,924) (5,715) (5,729)
------- ------- -------
Total current liabilities (6,869) (6,651) (6,382)
------- ------- -------
Total liabilities (10,463) (11,048) (10,238)
======= ======= =======
NET ASSETS 10,316 9,007 9,596
======= ======= =======
EQUITY
Share capital 3,082 3,082 3,082
Share premium 552 552 552
Revaluation reserve 140 140 140
Retained earnings 6,542 5,233 5,822
------- ------- -------
Total equity attributable to equity 10,316 9,007 9,596
shareholders of the parent company
======= ======= =======
Consolidated Statement of Changes in Equity
for the six months ended 30 September 2014
Attributable to equity shareholders of the parent company
Issued Share Revaluation Retained Total
Capital Premium Reserve Earnings Equity
£'000 £'000 £'000 £'000 £'000
Balance at 1 April 3,082 552 140 5,822 9,596
2014
Total comprehensive - - - 1,020 1,020
income
Dividend paid (300) (300)
------- ------- ------- ------- -------
Balance at 30 3,082 552 140 6,542 10,316
September 2014
======= ======= ======== ======= =======
Balance at 1 April 3,062 522 140 5,214 8,938
2013
Issue of shares 20 30 - - 50
Purchase of treasury - - - (295) (295)
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 3,062 522 140 5,214 8,938
2013
Issue of shares 20 30 - - 50
Purchase of treasury - - - (295) (295)
shares
Total comprehensive - - - 1,292 1,292
income
Dividend paid - - - (389) (389)
------- ------- ------- ------- -------
Balance at 31 March 3,082 552 140 5,822 9,596
2014
======= ======= ======== ======= =======
Consolidated Cash Flow Statement
for the six months ended 30 September 2014
Unaudited Unaudited Audited
6 months 6 months 12 months
30/9/14 30/9/13 31/3/14
£'000 £'000 £'000
Cash flows from operating
activities
Profit for the period 1,055 554 1,102
attributable to equity
shareholders
Depreciation charge 288 282 567
Finance costs 118 151 301
Income tax expense 290 182 242
(Profit)/loss on disposal of (46) 3 (3)
property, plant & equipment
Amortisation of intangible asset 17 16 33
Loss on disposal of subsidiary - - 263
------- ------- -------
Operating cash flow before 1,722 1,188 2,505
changes in working capital
(Increase)/decrease in (295) 372 241
inventories
(Increase)/decrease in (1,413) 1,725 1,163
receivables
Increase/(decrease) in payables 74 (1,054) (1,125)
------- ------- -------
Cash generated from operations 88 2,231 2,784
Interest paid (110) (114) (158)
Income taxes paid - - (158)
------- ------- -------
Net cash generated from/(used in) (22) 2,117 2,468
operations
------- ------- -------
Cash flows from investing
activities
Proceeds from disposal of 648 42 97
property, plant & equipment
Proceeds from sale of subsidiary - - 613
Acquisition of property, plant & (317) (260) (721)
equipment
------- ------- -------
Net cash generated from/(used in) 331 (218) (11)
investing activities
------- ------- -------
Cash flows from financing
activities
Equity dividends paid (300) (240) (389)
Issue of shares - 50 50
Purchase of treasury shares - (295) (295)
Amounts repaid in respect of (9) (9) (20)
finance leases
Loan repayments (138) (133) (267)
------- ------- -------
Net cash used in financing (447) (627) (921)
activities
------- ------- -------
Net increase/(decrease) in cash (138) 1,272 1,536
and cash equivalents
Cash and cash equivalents at 585 (951) (951)
beginning of period
------- ------- -------
Cash and cash equivalents at end 447 321 585
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 2014, 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 2015.
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 30,818,074 (6 months to 30 September 2013 - 29,976,848 and year ended 31
March 2014 - 30,295,976). There were no financial instruments in existence in
any of these periods that would serve to dilute the shareholdings.