RNS No 5668t
FORTH PORTS PLC
8th September 1997
Results for the six months ended 30th June, 1997
* Turnover up 9% to #44.8 million (1996: #41.0 million)
* Operating profit up 7% to #12.7 million
(1996: #11.8 million)
* Profit before tax up 8% to #11 million
(1996: #10.2 million)
* Earnings per share up 6.1% to 19.1p (1996: 18.0p)
* Interim dividend up 12.5% to 4.5p (1996: 4.0p)
Bill Thomson, Chairman of Forth Ports commented:
"The results for the first half year were encouraging despite
some market difficulties. Overall the Scottish Ports performed
to expectations and Tilbury achieved increased tonnages.
"Looking ahead, the major new facilities at Tilbury which are
now coming on stream are beginning to generate additional
business. The increase in Tilbury container activity and the
expected further increase in steel pipe traffic at Leith should
result in an improved performance in the second half of the
year. We continue to be optimistic about the future and are
confident that the Group is well placed to take advantage of
any opportunities as they arise."
Enquiries:
Alistair Fleming,Chief Executive
Wilson Murray, Finance Director
Forth Ports PLC Tel: 0171 404 5959
on 8th September, 1997
Jon Coles / Philippa Power
Brunswick Tel: 0171 404 5959
Chairman's statement
The results for the six months were encouraging. Turnover
increased by over 9% to #44.8 million (1996: #41.0 million) and
profit before tax rose 8% to #11 million from #10.2 million.
Earnings per share increased to 19.1p per share, up from 18.0p
per share in 1996. In the light of this performance, the
Directors have approved the payment of an interim dividend of
4.5 net pence per share, an increase of 12.5%, which will be
paid on 6th November, 1997 to shareholders on the register as
at 10th October, 1997.
Review of Business
The total tonnage handled by the Group amounted to 25.4 million
tonnes as against 26.6 million tonnes in 1996. Total piped
cargo amounted to 20.1 million tonnes, down from 21.6 million
tonnes in 1996. The tonnage at Hound Point was down by 1.6
million tonnes as against 1996 as a result of oilfield
maintenance shutdowns. Dry cargo tonnage was up, overall, by
6% at 5.3 million tonnes and included a 9% increase in forest
product tonnage. Individually, Leith saw an increase of nearly
33% (principally in steel pipe and related traffic) and the
Tilbury tonnage increased by over 7% to reach 3.5 million
tonnes at the half year.
Scottish Ports
Overall the Scottish Ports performed to expectations with an
increase in traffic at Leith which more than offset a decrease
in traffic at Dundee, where forest products and agriprods were
disappointing compared with last year. Towards the end of the
year, Leith will benefit from a further increase in steel pipe
traffic following the award of a major pipe contract to British
Pipe Coaters. This new contract will also ensure a good base
tonnage for 1998.
During the period one of our major customers, Currie Line
Limited at Grangemouth, went into receivership. However, we
acted swiftly to safeguard a major part of our stevedoring
business at Grangemouth and in February purchased the short sea
shipping business of Currie Line for a modest sum from the
Receiver. Renamed Forthline, it has increased its container
carryings by picking up some of the Bell Line business which
originates in Scotland following that company's liquidation.
The results for its first four months of operation are
satisfactory, albeit that in the shipping business, margins are
significantly less than in the port business.
Tilbury
During the six months the Port of Tilbury achieved good
progress. The port handled a record amount of grain at over
600,000 tonnes and significant improvements were made to the
port facilities for customers. However, Tilbury was affected
by the liquidation of Bell Line, which was in Irish
examinership for most of the first half and this had a
detrimental effect on the number of containers carried by that
service. In addition, the cold store at Tilbury saw the
storage time of produce increase and this, together with poor
harvests in the Eastern Mediterranean and New Zealand, resulted
in a level of turnover and profitability that was below
expectations.
Looking ahead, the major investments that have been undertaken
to expand facilities at Tilbury are expected to bring
significant benefits. The Swedish paper producer MoDo has
selected Tilbury as its port of call in the South of England
and this will bring in approximately 170,000 tonnes of
additional business in the full year commencing in August. A
major new shed is nearing completion for this business and the
new animal feeds shed for Agriprem will be operational shortly.
New covered accommodation for Far Eastern timber was being used
prior to its completion in August. Work is well in hand on the
new intermodal rail facility which will be opened in October.
We are pleased to be able to report that we attracted Seawheel
back to Tilbury in July which should increase our container
throughput and more than compensate for the loss of business
following Bell Line's insolvency.
Rosyth 2000 Consortium
For over two years, we have been a leading member of the Rosyth
2000 consortium which has been seeking to acquire the former
Naval Base at Rosyth from the Ministry of Defence. We are
pleased to be able to confirm that the formal handover has now
taken place and our marketing campaign for the Port of Rosyth
has begun.
New Mersey Terminal
We continue to have discussions with the Department of
Transport on the construction of a new river terminal at Twelve
Quays on the River Mersey. We expect the position to be
resolved shortly.
Property
Since the 1996 annual results, the Public Inquiry into the
Ocean Terminal planning application has taken place and we have
received a copy of the Findings of Fact by the Reporter. We
are confident that no major adverse comments should result from
the Inquiry and are hopeful that the Ocean Terminal development
will be allowed to proceed. In the interim, we have been
progressing our discussions both with potential tenants and
with possible third party joint venture partners. We expect to
be in a position towards the end of this year to give further
details on both.
Our outline planning application for the City Quay development
at Dundee was submitted in September of last year. Since then
we have been in discussions with the city planners and have
resolved any concerns which they may have had about the scheme.
We are hopeful that we will receive outline planning approval
within the next few months. We have also submitted an outline
planning application to develop the area around the Harbour at
Kirkcaldy.
Developments are also taking place on other sites within Leith.
The former whisky bonds which were purchased in July 1995 have
been substantially contracted for sale to a local property
developer. The joint venture with Morrison Homes is showing
considerable promise and the uptake on flats has been
excellent. We are involved in various other developments
which, subject to planning permission, should provide a useful
contribution to the profits in 1997.
Finance
In April, the Board concluded that the likely spend on capital
projects in 1997 and 1998 would be significantly above
expectations at around #30 million as a result of the many
opportunities which had presented themselves throughout the
Group. The Board took the view that it was appropriate to
raise further equity capital not only to support this increased
capital spend, but also to increase the Group's debt capacity
and so placed just under 2.3 million shares in May of this
year. This raised approximately #13.5 million after expenses.
Shareholders' funds at 30th June 1997 increased to #114.8
million, an increase of #20 million from 31st December 1996.
Net debt decreased from #58.6 million at 31st December 1996 to
#47.2 million at 30th June principally as a result of the
inflow of funds from the placing in May of this year. Overall,
the net effect on the Group's gearing was a decrease from 62%
at the year end to 41% at 30th June 1997. Interest cover
during the period was a healthy 7.5 times.
Prospects
The profit for the first half of 1997 broadly reflected a
similar trading pattern to that of 1996 and was in line with
expectations. With the additional MoDo tonnage, the opening of
the new bulk animal feeds shed and improving container volumes
at Tilbury, together with a further increase in steel pipe
traffic at Leith, we expect the full year's figures for 1997 to
reflect an improved performance in the second half of the year.
Looking further ahead, we continue to be optimistic about the
future and are confident that the Group is well placed to take
advantage of opportunities as they arise.
W.A.C. Thomson
CHAIRMAN
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Unaudited Unaudited Audited
6 months 6 months year
to to to
30.6.97 30.6.96 31.12.96
Notes #000 #000 #000
Turnover
Continuing operations 42,064 41,050 84,727
Acquisitions 1 2,686 - -
--------- --------- -------
44,750 41,050 84,727
Operating profit --------- --------- -------
Continuing operations 12,556 11,792 25,364
Acquisitions 1 98 - -
--------- --------- -------
12,654 11,792 25,364
Net interest payable 1,681 1,547 3,197
--------- --------- -------
Profit on ordinary activities 10,973 10,245 22,167
before taxation
Taxation (estimated) 2 2,140 2,056 4,528
--------- --------- -------
Profit for the period 8,833 8,189 17,639
attributable to shareholders
Proposed dividend 2,159 1,821 5,927
--------- --------- -------
Retained profit 6,674 6,368 11,712
===== ===== ======
Earnings per share 3 19.1p 18.0p 38.8p
===== ===== ======
Dividend per share 4.5p 4.0p 13.0p
===== ===== ======
There were no discontinued operations during the period.
NOTES:
1. Acquisitions in the six months to 30th June 1997 consist
of Forthline Limited and Forthline Shipping BV, operators of a
short sea container shipping line between the United Kingdom
and Europe.
2. An effective taxation rate of 19.5% (1996 - 20%) has been
applied to reflect tax losses brought forward in the
International Transport Limited Group.
3. The earnings per share calculation is based on the
weighted average of Ordinary Shares in issue in 1997 of 46.16
million (1996 - 45.47 million).
4. The financial information contained in this statement does
not comprise statutory accounts within the meaning of the
phrase as referred to in Section 240 of the Companies Act 1985.
Full accounts for the year ended 31st December 1996 on which
the auditors gave an unqualified report have been filed with
the Registrar of Companies.
5. The interim statement will be posted to shareholders on
16th September 1997. Copies will be available from the
Company's registered office, Forth Ports PLC, Tower Place,
Leith, Edinburgh EH6 7DB.
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
at 30.6.97 at 30.6.96 at
31.12.96
#000 #000 #000
Fixed assets 169,699 158,959 163,759
---------- ---------- ----------
Current assets:
Stocks and work in progress 3,079 3,125 2,684
Debtors 24,575 22,380 22,325
Cash at bank and on deposit 210 2,755 3,204
---------- ---------- ----------
27,864 28,260 28,213
Creditors: amounts falling due 35,649 56,608 43,315
within one year
---------- ---------- ----------
Net current liabilities (7,785) (28,348) (15,102)
---------- ---------- ----------
Total assets less current 161,914 130,611 148,657
liabilities
Creditors: amounts falling due 34,292 26,623 40,383
after more than one year
Provisions for liabilities and 6,202 7,974 6,637
charges
Deferred income 6,638 7,039 6,839
---------- ---------- ----------
Net assets 114,782 88,975 94,798
====== ===== =====
Equity shareholders' funds 114,782 88,975 94,798
====== ===== =====
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 months 6 months year to
to 30.6.97 to 30.6.96 31.12.96
#000 #000 #000
Net cash inflow from operating 14,646 12,928 28,413
activities
---------- ---------- ---------
Returns on investments and servicing
of finance
Interest received 153 447 552
Interest paid (3,007) (1,760) (2,903)
ESOP dividend income 227 198 268
Interest element of finance lease (77) (92) (164)
rentals
---------- ---------- ---------
Net cash outflow from returns on
investments and servicing of finance (2,704) (1,207) (2,247)
---------- --------- ----------
Taxation
UK tax paid (485) (2,131) (7,124)
---------- ---------- ----------
Capital expenditure and investing
activities
Purchase of tangible fixed assets (10,058) (2,893) (11,573)
Sale of tangible fixed assets 34 395 1,127
Investment in associated companies - (504) (503)
Sale of fixed asset investments 988 69 85
---------- --------- ----------
Net cash outflow for capital
expenditure and investing activities (9,036) (2,933) (10,864)
---------- ---------- ----------
Acquisitions and disposals
Purchase of subsidiaries (478) (8,580) (8,395)
---------- ---------- ----------
-
Equity dividends paid (4,108) (3,636) (5,458)
---------- ---------- ----------
Cash outflow before financing (2,165) (5,559) (5,675)
---------- ---------- ----------
Financing
Issue of ordinary shares less 13,632 234 528
expenses
Loans repaid (2,000) (1,000) (2,000)
Loan notes repaid (7,403) - (13,274)
(Decrease)/increase in utilisation (5,000) 4,000 19,000
of revolving credit facility
Principal payments under finance (97) (68) (323)
leases
---------- ---------- ----------
Net cash (outflow)/inflow from (868) 3,166 3,931
financing
---------- ---------- ----------
Decrease in cash (3,033) (2,393) (1,744)
====== ====== ======
END
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