RNS Number:0780Z
Hercules Property Services PLC
19 February 2001
Hercules Property Services PLC
Interim Results
Hercules Property Services PLC ("Hercules"/ "the Group")
HERCULES REPORTS 5th SUCCESSIVE SET OF RECORD PROFITS
Hercules Property Services PLC, the property management, insurance and
consultancy group, today announces its half year profits for the six months
ended 31 December 2000.
Highlights
- Turnover up 62% to #15.7m
- Pre-tax profits up 37% to #3m*
- Dividend up 15%
- Adjusted EPS up 13% to 20.4p*
- Property insured by Deacon & Farr valued at just under #50bn
*(before goodwill amortisation of #591,000)
Larry Lipman, chairman commented:
"I am delighted to report a further set of record results during a period in
which we consolidated growth patterns for the future. I look forward to the
second half of the year with extreme confidence".
For further information:
Larry Lipman
Chairman Hercules Property Services PLC 020 8202 7276
Paul Davis
Finance director Hercules Property Services PLC 020 8202 7276
Philip Robinson
Dido Laurimore GCI Financial Group 020 7398 0800
CHAIRMAN'S STATEMENT
Once again I have the pleasure to report on the most profitable first six
month period in the history of Hercules Property Services. The half year to 31
December 2000 has been extremely important in the Group's development. Our
success in growing our earnings has been complemented by the progress we have
made in developing, consolidating and integrating our businesses into the
Group. We have completed the acquisition of FARR, appointed a new managing
director and have since moved into our new premises in Stanmore.
Results
The Group has made strong progress during the period with turnover rising 62%
to #15.7m from #9.73m and operating profits up 33% to #2.98m (1999:#2.24m)
after a goodwill write off of #591,000 (1999:#200,000). Pre-tax profits were
#2.45m, 21% higher than the corresponding period in 1999. The adjusted
earnings per share (before goodwill amortisation) increased by 13% to 20.4p
from 18.1p last year although basic earnings per share have fallen marginally.
The Board is declaring a dividend payment of 2p per share, 15% higher than the
corresponding period last year.
The interim dividend will be paid on 6 July 2001 to all shareholders on the
register as at 8 June, 2001.
Operations
In December 2000 we completed the #20m acquisition of FMW Group Limited, which
owns FARR, a specialist UK housing insurance intermediary. FARR currently
places insurance for over #30bn worth of property, equating to approximately
35% of UK's Housing Association and Registered Social Landlord market in which
it operates. We look forward to the positive impact of these results being
reflected in our full year figures. In addition we believe that FARR brings a
number of synergies to our existing insurance intermediary, Deacon Insurance
Services.
As we acquired FARR so close to our period end, its contribution to our first
half earnings was negligible and is not included in these figures. We will
therefore show the benefit of this business's strong earnings at the full
year.
Deacon has continued to exceed our expectations, it has shown a significant
growth in premium through the introduction of new products and through
increasing its market share with existing products.
Deacon together with FARR now insures property to the value of just under
#50bn, which we believe makes Hercules a significant and competitive
intermediary in the property insurance industry.
The residential property management companies, DGA and Simmonds & Partners
have now been fully integrated into our new Head Office in Stanmore,
Middlesex, and we are looking forward to the benefits which will flow from
having the two businesses under one roof. Both businesses have continued to
grow through the acquisition of new clients and through inter-group business.
Dunlop Heywood, the commercial property consultancy has achieved a number of
new business wins. We have also enjoyed some significant progress in
introducing the Group's other services to its customers. We believe that the
value this presents to both Dunlop Heywood and its customers will grow, and
produce significant dividends in the future.
Harman Healy, the commercial auctioneer and property manager, has achieved its
highest ever value of sales in the calendar year to December 2000. The
business has also been successful in acquiring both management and insurance
clients for itself and the group.
Management
The last six months saw the appointment of Rob Plumb as managing director; his
influence in running the business is already showing benefit. I am confident
his style and focus will continue to make a major contribution to the Group.
I am delighted to report a further set of record results during a period in
which we consolidated growth patterns for the future. I look forward to the
second half of the year with extreme confidence. FARR is an extremely
important acquisition for us and, as I have reported, will benefit us
significantly. I have every confidence in the future growth of the Group.
Larry Lipman
Chairman
19 February 2001
CONSOLIDATED PROFIT AND LOSS ACCOUNT
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2000 1999 2000
#'000 #'000 #'000
TURNOVER: acquisitions 0 529 8,039
continuing operations 15,723 9,197 23,473
------ ------ ------
15,723 9,726 31,512
Cost of sales (9,543) (4,653) (18,839)
------ ------ ------
GROSS PROFIT 6,180 5,073 12,673
Administrative expenses (3,196) (2,834) (6,575)
------ ------ ------
OPERATING PROFIT: acquisitions 0 244 1,741
continuing
operations 2,984 1,995 4,357
------ ------ ------
2,984 2,239 6,098
Interest receivable and
similar income 202 86 262
Interest payable and
similar charges (729) (297) (1,159)
------ ------ ------
Profit on ordinary activities
before taxation 2,457 2,028 5,201
Tax on profit on ordinary
activities (908) (608) (1,775)
------ ------ ------
Profit on ordinary activities
after taxation 1,549 1,420 3,426
Equity dividends (294) (169) (853)
------ ------ ------
Retained profit for the financial
period/year 1,255 1,251 2,573
------ ------ ------
------ ------ ------
Basic earnings per share 14.9p 15.8p 36.6p
Adjustment for goodwill 5.5p 2.3p 7.4p
------ ------ ------
Adjusted earnings per share 20.4p 18.1p 44.0p
------ ------ ------
------ ------ ------
Diluted earnings per share 14.2p 15.5p 35.3p
------ ------ ------
------ ------ ------
Adjusted diluted earnings
per share 19.5p 17.8p 42.4p
------ ------ ------
The directors have excluded the effect of trading at FARR since acquisition on
the grounds of materiality.
Taxation has been calculated using an estimated annual effective rate before
amortisation of goodwill of 30% (six months to 31 December 1999 - 30%, year
ended 30 June 2000 - 30%).
The interim financial information has neither been audited nor reviewed and
does not constitute statutory accounts within the meaning of section 240 of
the Companies Act 1985.
The accounts for the year to 30 June 2000 set out above are abridged from the
Company's statutory accounts. The full accounts incorporating an unqualified
auditors' report and containing no statement under section 237 (2) and (3) of
the Companies Act 1985, have been filed with the Registrar of Companies. The
interim dividend will be payable on 6 July 2001 to members on the register on
8 June 2001.
CONSOLIDATED BALANCE SHEET
Note 31 December 31 December 30 June
2000 1999 2000
#'000 #'000 #'000
FIXED ASSETS
Intangible fixed assets 39,511 20,364 19,776
Tangible fixed assets 1,232 963 875
------ ------ ------
40,743 21,327 20,651
CURRENT ASSETS
Stock and work in progress 3,930 3,771 4,028
Debtors 9,730 6,845 10,790
Cash at bank and in hand 3 23,176 5,589 6,414
------ ------ ------
36,836 16,205 21,232
CREDITORS: amounts falling due
within one year (12,547) (10,048) (15,089)
------ ------ ------
NET CURRENT ASSETS 24,289 6,157 6,143
------ ------ ------
TOTAL ASSETS LESS CURRENT
LIABILITIES 65,032 27,484 26,794
CREDITORS: amounts falling due
after more than one year (28,473) (16,186) (14,271)
PROVISIONS FOR LIABILITIES AND
CHARGES (1,185) (1,501) (1,204)
------ ------ ------
NET ASSETS 35,374 9,797 11,319
------ ------ ------
------ ------ ------
CAPITAL AND RESERVES
Called up equity share capital 735 482 488
Share premium account 41,237 18,453 18,684
Profit and loss account (5,259) (7,799) (6,514)
Merger reserve (1,339) (1,339) (1,339)
------ ------ ------
EQUITY SHAREHOLDERS' FUNDS 35,374 9,797 11,319
------ ------ ------
------ ------ ------
CONSOLIDATED CASH FLOW STATEMENT
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2000 1999 2000
Note #'000 #'000 #'000
Net cash inflow from operating
activities 1 2,104 712 3,835
Returns on investments and
servicing of finance (527) (211) (897)
Taxation paid (751) (150) (1,126)
Capital expenditure and financial
investment (467) (15) (142)
Acquisitions and disposals (3,163) (10,944) (8,008)
Equity dividends paid (170) (105) (576)
------ ------ ------
Cash outflow before financing (2,974) (10,713) (6,914)
Financing 19,736 13,473 10,499
------ ------ ------
Increase in cash in the period/year 16,762 2,760 3,585
------ ------ ------
------ ------ ------
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET CASH/(DEBT)
Note 6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2000 1999 2000
Note #'000 #'000 #'000
Increase in cash in the period/year 16,762 2,760 3,585
Cash (outflow)/inflow from decrease/
(increase) in debt and lease financing 1,064 (13,473) (10,457)
------ ------ ------
Change in net debt resulting from
cash flows 17,826 (10,713) (6,872)
Loans acquired with subsidiaries - - (2,600)
------ ------ ------
17,826 (10,713) (9,472)
Net debt brought forward (11,424) (1,952) (1,952)
------ ------ ------
Net cash/(debt) carried forward 2 6,402 (12,665) (11,424)
------ ------ ------
------ ------ ------
NOTES TO THE INTERIM FINANCIAL INFORMATION
1. RECONCILIATION OF OPERATING PROFIT FOR THE PERIOD TO NET CASH
INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2000 1999 2000
#'000 #'000 #'000
Operating profit 2,984 2,239 6,098
Depreciation charge 110 - 223
Decrease in provision (18) - (86)
Amortisation of goodwill 569 207 688
Decrease/(increase) in stocks and
work in progress 98 (1,309) (1,566)
Decrease/(increase) in debtors 1,435 (1,640) (5,635)
(Increase)/decrease in creditors (3,074) 1,215 4,113
------ ------ ------
Net cash inflow from operating activities 2,104 712 3,835
------ ------ ------
------ ------ ------
2. ANALYSIS OF NET DEBT
At At
1 July Cash 31 December
2000 flow 2000
#'000 #'000 #'000
Cash at bank and in hand 6,414 16,762 23,176
Debt and lease financing due within
one year (3,567) (125) (3,692)
Debt and lease financing due after
one year (14,271) 1,189 (13,082)
------ ------ ------
(11,424) 17,826 6,402
3. CASH
Cash includes #15,391,000 held in an escrow account to settle the loan notes
issued as part of the consideration for the acquisition of FMW Group Limited.
Hercules Props. (LSE:HPS)
Historical Stock Chart
From May 2024 to Jun 2024
Hercules Props. (LSE:HPS)
Historical Stock Chart
From Jun 2023 to Jun 2024
