RNS Number:7540T
International Nuclear Solutions PLC
27 March 2007
International Nuclear Solutions plc ("INS" or the "Company")
Preliminary results for year ended 31 December 2006
INS, one of the largest providers of specialist nuclear engineering and design
services in the UK with more than 25 years of industry experience, today
announces a 29% uplift in turnover and a 38% increase in its order book.
Financial Highlights
2006 2005
Turnover #31.7m #24.6m
Operating profit *#2.5m #2.2m
Profit before tax *#2.5m #2.2m
Profit after tax #1.0m #1.9m
Earnings per share 1.68p 3.13p
Cash #2.7m #0.4m
* before exceptional items of #832,000 in respect of the demerger from Robotic
Technology Systems plc ("RTS") and admission to AIM
* Successful demerger from RTS and admission to AIM
* Strong cash performance. #5.9m cash inflow from operating activities
(2005 - #0.2m) and closing cash of #2.7m (2005 - #0.4m)
* New office opened at Birchwood in Warrington
* Strong order book up 38% to #12.7m reflecting significant new wins
from British Nuclear Group and Carillion at Sellafield
Chris Brown, Chairman of INS, said:
"INS maintained its excellent track record of growth in 2006, and exceeded our
expectations in terms of operating performance. Our strong opening order book,
and the increasing activity levels in the nuclear industry, give us confidence
that the Group will continue to progress in 2007
As shareholders are aware, on 26 January 2007 Babcock International Group PLC
announced that it had acquired ordinary shares in INS representing 24.5% of the
issued share capital. Discussions with Babcock are ongoing."
27 March 2007
Enquiries:
International Nuclear Solutions plc Tel: 0161 222 5500
Chris Brown, Chairman
Tony Moore, CEO
College Hill Tel: 020 7457 2020
Matthew Smallwood
Chairman's Statement
Following the successful admission of International Nuclear Solutions plc
("INS") to the AIM market on 31 May 2006, I am pleased to be able to present the
Group's first set of annual accounts as an independent public company.
As the transfer of INS Innovation Ltd (formerly RTS Innovation Ltd) to INS has
been accounted for in accordance with the principles of merger accounting, the
financial statements are presented as if INS Innovation Ltd had been owned and
controlled by INS for the full financial year.
Turnover at #31.7m increased by 29% in 2006 compared with the previous year,
with the commencement of several significant new contracts, notably the SPRS and
B29 projects at Sellafield. Operating profit before exceptional items was 11.9%
higher than 2005 at #2.5m, before exceptional administrative costs of #0.8m
(2005 - #nil) relating to the demerger from Robotic Technology Systems PLC (RTS)
and subsequent admission to AIM. Profit after tax and exceptional items was
#1.0m, compared with #1.9m in 2005.
INS produced a strong cash performance in 2006, with #5.9m cash inflow from
operating activities, an increase in net funds of #2.4m, and closing cash
balances of #2.7m.
Our order book, which stood at #11.4m at the end of June, grew to #12.7m by the
end of 2006, and currently stands at #12.9m. Our total headcount at the end of
2006 stood at 274. This is an increase of 23% in permanent staff, and 21% in
total from the position at the start of the year. A new project office has been
opened at Birchwood in Warrington, and we have also relocated our Greengarth
office to new premises at the West Lakes Science Park near Sellafield.
Major Corporate Events
On 31 May 2006, INS was admitted to trading on AIM, and its share price closed
on the first day of trading at 41.25p. The closing share price on 31 December
2006 was 52.5p. Following the end of the 2006 trading period, on 18 January
2007, INS announced that it had received an approach which may or may not lead
to an offer for the Group. On 26 January 2007 Babcock International Group PLC
announced that it had acquired ordinary shares in INS representing 24.5% of the
issued share capital at 63p and intended to progress discussions with the Board
regarding the possibility of making a cash offer for the balance of the issued
share capital of INS. These discussions are still ongoing.
Dividends
As stated in the Admission Document, INS does not intend to pay a dividend for
the year ended 31 December 2006. The Board does, however, consider that a
dividend policy is likely to be introduced during 2007, consistent with the
continuing strong cash performance of the Group.
Outlook
Our strong opening order book, and the increasing activity levels in the nuclear
industry, give us confidence that the Group will continue to progress in 2007.
The Nuclear Decommissioning Authority (NDA) has announced that there is a small
increase in funding in its 2007 budget. We are aware that there will be a
reduction in operating revenues to the NDA in future years as a result of the
closure of two Magnox stations at the end of 2006. This may in the course of
time affect the funding available to the NDA in future years. However, we view
the future with confidence given the increasing overall demand for nuclear
decommissioning expertise.
Chris Brown
Chairman
27 March 2007
Operational Review
The demerger from RTS was completed successfully with no adverse impact to the
business from either customers or operational matters.
Staffing levels are up by 21% on the previous year, which is a significant
achievement bearing in mind the shortage of skilled labour and an extremely
buoyant market place for professionals.
A new project office has been opened at Birchwood in Warrington near to our
customer's office which has provided increased office capacity for the increased
work load and staffing levels.
We were successful in winning a number of important contracts during 2006 and
these include:
* a 3 year framework contract from British Nuclear Group ("BNG") for
engineering services and the supply of integrated equipment/systems for the
Sellafield MOX fuel manufacturing facility. This contract is valued at
c.#8 million over 3 years,
* a contract from Carillion for the supply of integrated equipment/systems
for the Sellafield Product and Residues Facility - the largest new build
facility on the Sellafield site - valued at c.#15 million and likely to
increase in value subject to agreement on the supply of additional support
services for site commissioning of the facility,
* a design and engineering contract from Edmund Nuttall for a new waste
storage facility on the Sellafield site. The contract is valued at c.#1
million; and
* a design and engineering contract for BNG valued in excess of #1.3 million.
INS leads a consortium of three companies for this project.
We have also been successful as part of a consortium tendering for the new Multi
Discipline Design House (MDDH) framework agreement. The three lead consortium
members include INS, AMECNNC and DGP International.
During 2005/6 INS developed its own technology for dealing with both radioactive
sludge and solid waste at the various nuclear sites owned by the NDA. We are in
the process of registering a patent for the technology. We are one of five
companies selected by BNG to present their technology and an initial feasibility
study has been completed to identify the benefits of the technology and an
estimate for the cost of implementation.
During the year we secured significant business in the clean-up and
decommissioning of the high hazard legacy ponds and silos at Sellafield. INS is
currently working on four of the major ponds and silos projects considered to be
at the top of the NDA's decommissioning priorities at Sellafield. The Company
anticipates to win further work in the coming year both directly and in
partnership through INS' various alliances.
The Atomic Weapons Establishment (AWE) at Aldermaston presents a major
opportunity for INS because it will require a significant amount of the
specialist design and engineering skills that INS possesses which are essential
for some of the projects that are to be undertaken on its two sites.
INS has long been focused on health, safety and environmental matters and
achieved accreditation to the environmental standard ISO 14001 in December 2006.
We believe that INS will continue to grow and diversify into new areas with the
emphasis on further development of our consultancy business.
Tony Moore
Chief Executive Officer
27 March 2007
Group profit and loss account for the year ended 31 December 2006
Year ended Year ended
31 December 2006 31 December 2005
#'000 #'000
Note
Turnover 2 31,745 24,610
Cost of sales (26,007) (19,823)
Gross profit 5,738 4,787
Distribution costs (364) (321)
Administrative expenses (3,703) (2,229)
Operating profit before exceptional charges 2,503 2,237
Exceptional administrative expenses included in
administrative expenses above 3 (832) -
Operating profit 1,671 2,237
Interest receivable and similar income 41 16
Interest payable and similar expenses (2) (1)
Profit on ordinary activities before taxation 1,710 2,252
Taxation on profit on ordinary activities 4 (663) (303)
Profit for the financial year 8 1,047 1,949
Earnings per share
Basic earnings per share 5 1.68p 3.13p
There were no other gains and losses other than those shown above.
There was no difference between the reported profits and losses and historical
cost profit and losses in either the current or preceding financial year.
The profit and loss account has been prepared using merger accounting and is
presented on a proforma basis as if the new holding company has been in
existence throughout both the current and prior periods.
Group balance sheet at 31 December 2006
31 December 31 December
Note 2006 2005
#'000 #'000 #'000 #'000
Fixed assets
Tangible assets 6 1,231 66
Current assets
Debtors: amounts falling due within
one year 7,355 10,872
Cash at bank and in hand 2,734 364
10,089 11,236
Creditors: amounts falling due within one
year (9,780) (8,871)
Net current assets 309 2,365
Net assets 1,540 2,431
Capital and reserves
Called up share capital 7 623 -
Merger reserve 8 (623) -
Capital redemption reserve 8 50 -
Other reserves 8 26 -
Profit and loss reserve 8 1,464 2,431
Equity shareholders' funds 9 1,540 2,431
Group cash flow statement for the year ended 31 December 2006
Note Year ended Year ended
31 December 2006 31 December 2005
#'000 #'000
Net cash inflow from operating activities 10 5,908 210
Returns on investment and servicing of finance 11 39 15
Taxation paid (208) -
Capital expenditure and financial investment 11 (1,405) (12)
Equity dividends paid 12 (1,964) (2,000)
Cash inflow/(outflow) before financing 2,370 (1,787)
Financing
Shares issued 50 -
Shares redeemed (50) -
Increase/(decrease) in cash 2,370 (1,787)
Reconciliation of net cash flow to movement in net funds
Year ended Year ended
31 December 2006 31 December 2005
#'000 #'000
Increase/(decrease) in net funds resulting from 2,370 (1,787)
cash flows in the year
Net funds at 1 January 364 2,151
Net funds at 31 December 2,734 364
Notes forming part of the financial statements for the year ended 31 December
2006
1 Basis of preparation
The financial information set out above does not constitute within the meaning
of section 240 of the Company's Act 1985 the Company's statutory accounts for
the year ended 31 December 2006 or for the year ended 31 December 2005. The
financial information for 2005 is derived from the statutory accounts of INS
Innovation Ltd for the year ended 31 December 2005 which have been delivered to
the Registrar of Companies. The auditors have reported on the 2006 accounts;
their report was unqualified and did not contain a statement under section 237
(2) or (3) of the Companies Act 1985. The statutory accounts for 2006 will be
delivered to the Registrar of Companies in the near future.
The transfer of INS Innovation Ltd (formerly RTS Innovation Ltd) on 30 May 2006
to International Nuclear Solutions plc has been accounted for in accordance with
the principles of merger accounting as set out in Financial Reporting Standard 6
"Acquisitions and Mergers". The financial statements are therefore presented as
if INS Innovation Ltd had been owned and controlled by International Nuclear
Solutions plc for the full financial year.
Comparatives have been prepared as if the continuing operations of International
Nuclear Solutions plc were in existence for the whole of 2005.
2 Turnover and profits
All turnover and profits are derived in the UK. Turnover is wholly attributable
to the principal activity of the Group.
3 Operating exceptional items: Administrative expenses
Year ended Year ended
31 December 2006 31 December
#'000 2005
#'000
Costs in connection with demerger from RTS and admission to AIM 832 -
4 Taxation
Year ended 31 December Year ended 31
2006 December 2005
Current tax #'000 #'000 #'000 #'000
UK Corporation tax - current year 658 300
- prior year adjustment 2 -
660 300
Deferred tax
Origination and reversal of current year timing differences 5 1
Origination and reversal of prior year timing differences (2) 2
3 3
Tax on profit on ordinary activities 663 303
The taxation charge for the period is significantly higher than the prior year.
This is due to the availability of group tax relief when Innovation was part of
the RTS group in 2005, and the tax treatment of certain costs in 2006 in respect
of the demerger from RTS and the subsequent flotation of the Company.
5 Earnings per share
Earnings per ordinary share has been calculated using the weighted average
number of shares in issue during the relevant financial years. The calculations
of basic earnings per share for the year are based upon a profit after tax of
#1,047,000 (2005 - #1,949,000). The weighted average number of equity shares
used in the calculation of earnings per share for the current and comparative
period is 62,335,374.
2006 2005
Pence Pence
Basic earnings per share 1.68 3.13
Adjusted basic earnings per share (see below) 3.01 3.13
There is no difference between basic and fully diluted earnings per share.
Earnings per share before the exceptional item has been calculated using the
adjusted profit after tax as follows:
2006 2005
#'000 #'000
Profit after tax 1,047 1,949
Exceptional item in administrative expenses (note 5) 832 -
Adjusted profit after tax 1,879 1,949
6 Tangible assets
Leasehold land Plant and Fixtures,
and buildings machinery fittings and
equipment Total
#'000 #'000 #'000 #'000
Cost
At 1 January 2006 - 28 257 285
Transfers (see below) 792 428 - 1,220
Additions 34 398 90 522
At 31 December 2006 826 854 347 2,027
Depreciation
At 1 January 2006 - 26 193 219
Transfers (see below) 109 228 - 337
Charge for the year 45 131 64 240
At 31 December 2006 154 385 257 796
Net book value
At 31 December 2006 672 469 90 1,231
At 31 December 2005 - 2 64 66
Transfers relate to assets purchased from former group companies.
7 Share capital
Allotted, called up and
Authorised 31 fully paid
December 2006 31 December 2006
#'000 #'000
Ordinary shares of 1p each 1,000 623
Number of shares #'000
In issue at 1 January 2006 - -
Issued in the year 62,335,374 623
In issue at 31 December 2006 62,335,374 623
* On incorporation on 10 March 2006, the Company's authorised share capital
was #100 divided into 100 ordinary shares of #1 each. One ordinary share
of #1 was allotted on incorporation.
* On 12 April 2006, the #1 share was sub divided into 100 #0.01 Ordinary
Shares. The Company's authorised share capital was then increased from
#100 to #60,000 by the creation of 990,000 new Ordinary Shares of #0.01
each and 5,000,000 redeemable preference shares of #0.01.
* On 12 April 2006, 5,000,000 redeemable preference shares of #0.01 each
were allotted and fully paid.
* On 21 April 2006 5,000,000 redeemable preference shares of #0.01 each were
redeemed by the Company for #50,000. Pursuant to a resolution of the
shareholders of the Company all of the 5,000,000 redeemable preference
shares of #0.01 in the capital of the Company were reclassified as Ordinary
Shares of #0.01 each.
* On 4 May 2006, pursuant to a resolution of the shareholders of the Company
the authorised share capital was increased to #1,000,000 by the creation
of 94,000,000 Ordinary Shares of #0.01 each.
* On 30 May 2006, the entire issued share capital of INS Innovation Ltd
(formerly RTS Innovation Ltd) was transferred from Robotic Technology
Systems PLC to the Company in consideration for the issue of 62,335,274
Demerger shares to the qualifying shareholders, one ordinary share issued
for every RTS share held.
8 Reserves
Capital
Profit and loss redemption
account Merger reserve reserve Other reserves
#'000 #'000 #'000 #'000
At 1 January 2006 2,431 - - -
Profit for the financial year 1,047 - - -
Dividend paid (1,964) - - -
Reserve arising on demerger - (623) - -
Share capital redemption (50) - 50 -
Shares to be issued - - - 26
At 31 December 2006 1,464 (623) 50 26
9 Group reconciliation of movements in equity shareholders' funds
Year ended Year ended
31 December 2006 31 December 2005
#'000 #'000
Equity shares issued 623 -
Preference shares issued 50 -
Preference shares redeemed (50) -
Reserve arising on demerger (623) -
Profit for the financial year 1,047 1,949
Dividend paid (1,964) (2,000)
Movement on other reserves relating to share options 26 -
Net deduction from equity shareholders' funds (891) (51)
Opening equity shareholders' funds 2,431 2,482
Closing equity shareholders' funds 1,540 2,431
10 Reconciliation of operating profit to net cash inflow from operating
activities
Year ended Year ended
31 December 2006 31 December 2005
#'000 #'000
Operating profit 1,671 2,237
Depreciation 240 52
Other non-cash charges 26 -
Decrease in debtors 3,213 2,682
Increase/(decrease) in creditors 758 (4,761)
Net cash inflow from operating activities 5,908 210
11 Notes to the cash flow statement
Year ended Year ended
31 December 2006 31 December 2005
#'000 #'000
Returns on investment and servicing of finance
Interest received 41 16
Interest paid (2) (1)
39 15
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (1,405) (12)
(1,405) (12)
12 Dividends paid
2006 2005
#'000 #'000
Dividends paid 1,964 2,000
The dividends were paid to Robotic Technology Systems PLC, prior to demerger.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UNOWRBOROUAR
Instem (LSE:INS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Instem (LSE:INS)
Historical Stock Chart
From Jul 2023 to Jul 2024
