RNS Number:4427E
Montpellier Group PLC
31 May 2001
Montpellier Group plc
Announcement of Interim Results for the six months ended 31 March
The directors of Montpellier Group plc are delighted to announce the following
highlights of the Company's performance for the six months to 31 March 2001
compared with the six months to 31 March 2000:
* Turnover increased by 37 per cent
* Profits before tax increased by 50 per cent
* Earnings per share increased by 57 per cent
* Net asset value per share increased by 20 per cent
The imminent purchase of the building contracting division of Allen plc
exemplifies your Board's commitment to seek attractive opportunities for
further growth. Your Board has confidence in the prospects of the enlarged
Group.
Chairman's Statement
I am pleased to be able to report that the Group has continued to make
progress over the last six months. The acquisitions made last year of
Britannia plc, David Lodge & Sons Limited and Hatchpaines Limited have been
integrated successfully and are making contributions to Group profits. The
imminent purchase of the building contracting division of Allen plc
exemplifies your Board's commitment to seek attractive opportunities for
further growth.
Financial Review
Profits before tax for the six months to 31 March 2001 were #1.5m (2000 :
#1.0m) on turnover of #116.7m (2000 : #85.1m). Earnings per share were 2.2p
(2000 : 1.4p) with the net asset value per share increasing to 35.0p (2000 :
29.1p).
The Group is reporting net cash in its balance sheet of #3.7m (2000 : #5.1m)
with the total net cash, including off balance sheet borrowing, being #0.3m
(2000: #2.2m).
Change of Name
At the Extraordinary General Meeting held on 7 March 2001, shareholders
resolved that the name of the Company be changed to Montpellier Group plc,
retaining the YJL identity for the Construction Division.
Dividends
Your Board continues to hold the view that the Group's financial resources,
for the time being, are best devoted to the development of a sound and
enlarged base of future earnings, and that this policy will in due course
create better long-term shareholder value. For this reason, your Board is not
recommending the payment of an interim dividend.
The Board
Paul Sellars was appointed Managing Director of the Montpellier Group on 25
January 2001, and for the time being will continue to be responsible for Group
Finance, land and property development, and investment activities. It is the
intention of your Board to appoint a Group Finance Director and a third
non-executive director in due course.
Acquisitions
It was announced on 4 April 2001 that there was an agreed cash bid for the
building contracting division of Allen plc (Allenbuild). This is conditional
upon shareholders' approval at the Extraordinary General Meeting to be held on
1st June 2001. Allenbuild's turnover for the year ended 2 April 2000 was #156
million and your Board believes that Allenbuild's businesses are complementary
to the Group's businesses and that this acquisition represents an exciting and
logical step in achieving Montpellier's objectives. It is anticipated that
the net assets acquired will be around #3.5m. The consideration is #1m.
Prospects
The Group's trading performance in the first half has been fully in line with
management's expectations and your Board is confident that the good
performance will continue during the second half. The Group's companies have
continued to secure work at acceptable margins.
The property development businesses have made further land sales with others
in negotiation. Lovell America continues to generate useful cash.
Your Board has confidence in the prospects of the enlarged Group and will
continue to seek further opportunities that will contribute to the Group's
profitability and growth.
GROUP PROFIT AND LOSS ACCOUNT
for the six months ended 31 March 2001
Notes Year
Six months ended ended
31 March 30 Sept.
2001 2000 2000
#000 #000 #000
Turnover: Group and share of joint
ventures' turnover
118,726 92,956 202,089
Less share of joint ventures'
turnover - continuing operations
(2,035) (7,898) (6,840)
Continuing operations 116,691 85,054 191,819
Discontinued operations - 4 3,430
Group turnover 1 116,691 85,058 195,249
Cost of sales (107,341) (78,543) (176,637)
Gross profit 9,350 6,515 18,612
Other operating income 1,510 - -
Group operating profit before
administrative expenses 10,860 6,515 18,612
Administrative expenses (9,574) (4,906) (16,619)
Group operating profit 1,286 1,609 1,993
Income from joint ventures 137 126 313
Share of associates' operating loss (386) - -
Continuing operations 1,037 1,735 1,860
Discontinued operations - - 446
Total operating profit including
share of joint ventures 1,037 1,735 2,306
Profit on sale of fixed assets 379 - 485
Loss on disposal of discontinued
businesses - (314) (414)
Profit on ordinary activities before
interest and taxation 1,416 1,421 2,377
Net interest receivable 97 (384) (346)
Profit on ordinary activities before
taxation 1,513 1,037 2,031
Taxation payable on ordinary
activities - - (563)
Profit for the period 1,513 1,037 1,468
Basic and diluted earnings per
ordinary share 2 2.2p 1.4p 1.9p
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Year
Six months ended ended
31 March 30 Sept.
2001 2000 2000
#000 #000 #000
Profit for the year excluding share of 1,376 911 1,155
income from joint ventures
Share of income from joint ventures 137 126 313
Currency translation differences on
foreign currency net investments (64) 717 2,000
Total recognised gains and losses relating
to the period 1,449 1,754 3,468
GROUP BALANCE SHEET
at 31 March 2001
Year
Six months ended ended
31 March 30 Sept.
2001 2000 2000
#000 #000 #000
Fixed assets
Intangible assets 693 - 770
Tangible assets 6,429 3,416 7,810
Investments 611 - 1,006
Investments in joint ventures:
Loans to joint ventures 7,705 12,973 9,194
Share of gross assets 22,130 21,975 21,045
Share of gross liabilities (16,480) (16,307) (14,866)
13,355 18,641 15,373
21,088 22,057 24,959
Current assets
Stocks and work in progress 11,458 18,502 10,932
Debtors: due within one year 46,551 29,498 37,051
due after more than one year 2,141 1,217 2,480
Current asset investments 3,431 - 3,152
Cash at bank and in hand 10,381 10,995 15,829
73,962 60,212 69,444
Creditors: amounts falling due within
one year 70,221 53,141 70,491
Net current assets / (liabilities) 3,741 7,071 (1,047)
Total assets less current liabilities 24,829 29,128 23,912
Creditors: amounts falling due after
more than one year
Long term debt 917 - 531
Other creditors 80 6,826 272
997 6,826 803
Net assets 23,832 22,302 23,109
Share capital 6,809 7,660 7,167
Share premium account 1,066 1,066 1,066
Revaluation reserve 393 1,348 1,119
Capital reserve 1,166 314 807
Profit and loss account 14,398 11,914 12,950
Equity shareholders' funds 23,832 22,302 23,109
GROUP STATEMENT OF CASH FLOW
for the six months ended 31 March 2001
Six months ended Year ended
31 March 30 Sept.
2001 2000 2000
Note #000 #000 #000
Net cash (outflow)/inflow from
operating activities 3 (8,405) 4,399 12,267
Returns on investments and servicing
of finance
Net interest received 97 104 509
Finance costs paid in relation to - - (855)
financial restructuring
Net cash inflow/(outflow) from
returns on investments and servicing
of finance 97 104 (346)
Taxation
Corporation tax paid (630) - -
Capital expenditure and financial
investment
Net sales/(purchases) of tangible
fixed assets 1,296 (138) 946
Net sales/(purchases) of current
asset investments 1,231 - (3,152)
Investment in and movements on loans
to joint ventures 1,762 (1,854) 2,768
Acquisition of own shares (727) - (907)
Net cash inflow/(outflow) for capital
expenditure and financial investment 3,562 (1,992) (345)
Acquisitions and disposals
Receipt from sale of business - - 8,573
Payments to acquire subsidiary
undertakings - - (14,048)
Cash acquired on acquisition of
subsidiary undertakings - - 3,771
Net cash outflow from acquisitions
and disposals - - (1,704)
Cash (outflow)/inflow before use of
liquid resources and financing (5,376) 2,511 9,872
Management of liquid resources
(Increase)/decrease in short-term
deposits with banks (5,000) 530 (5,495)
Financing
Movement in short-term borrowings (430) - -
Movement in long-term borrowings 386 (4,944) (5,107)
(44) (4,944) (5,107)
Decrease in cash (10,420) (1,903) (730)
As indicated above, funds of #5,000,000 were transferred to short-term
deposits with banks. The balance of such funds with banks at 31 March 2001 was
#11,000,000 (31 March 2000 - #nil).
NOTES TO THE ACCOUNTS
for the six months ended 31 March 2001
1. Segmental analysis
Six months ended Year
ended
31 March 30 Sept.
2001 2000 2000
#000 #000 #000
Construction 115,321 79,552 183,386
UK Developments 796 3,343 7,630
USA Developments 2,609 10,057 11,069
Spain - Discontinued - 4 4
Turnover: Group and share of joint
ventures 118,726 92,956 202,089
Less: Share of USA joint ventures'
turnover 2,035 7,898 6,840
116,691 85,058 195,249
2. Earnings per ordinary share
The earnings per ordinary share is based upon the profit for the Group of #
1,513,000 (2000 March profit of #1,037,000; September profit of #1,468,000)
divided by the weighted average of ordinary shares of 69,625,066 (2000 March
76,603,409; September 76,071,669) in issue over the respective periods.
A number of the share option schemes outstanding during the period were below
the average fair value of the Company's shares hence the options have a
dilutive effect on the Earnings per Ordinary share calculation.
3. Net cash (outflow)/inflow from operating activities
6 months ended Year
ended
31 March 30 Sept.
2001 2000 2000
#000 #000 #000
Operating profit 1,037 1,609 2,306
Depreciation 493 73 661
Amortisation of goodwill 77 - 70
Exchange gains - - (700)
Income from joint ventures (137) (126) (313)
Share of associates operating loss 386 - -
(Increase) / Decrease in stocks and work
in progress (758) 1,527 5,677
Profit on sale of current asset
investments (1,510) - -
(Increase) / Decrease in operating
debtors and prepayments (9,082) 111 4,978
Increase/ (Decrease) in creditors and
accruals 1,089 1,205 (412)
Net cash (outflow)/inflow from operating
activities (8,405) 4,399 12,267
4. Basis of preparation
a) The accounts for the six months ended 31 March 2001 and the
equivalent period in 2000 have not been audited by the company's auditors.
They have been prepared in accordance with applicable accounting standards
consistent with the accounting policies set out in the 2000 Annual Report.
b) The abridged information in this statement relating to the year ended
30 September 2000 is derived from full accounts upon which the auditors issued
an unqualified opinion and which have been delivered to the Registrar of
Companies.
This interim statement is being sent to all shareholders and is also available
upon request from the Company Secretary, Montpellier Group plc, Lovell House,
616 Chiswick High Road, London, W4 5RX.
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