RNS Number:4415J
Metalrax Group PLC
08 March 2005
Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Tuesday, 8 March 2005
Embargoed: 7.00am
Metalrax Group PLC
Preliminary Results
for the year ended 31 December 2004
"Engineering Specialists"
2004 2003
--------------------------------------------------------------------------------
Turnover #104.5m #104.3m
Profit before Tax #12.1m #12.0m
Maintained Final Dividend 3.75p 3.75p
Results reflect the reorganisation of selective businesses in response to
market conditions whilst also maximising efficiencies and profitability
Key focus on the management of raw material and energy costs and in maintaining
our competitive position with low cost manufacturing countries
Post year end acquisition of Cooper Coated Coil - business integrating well
into the group
"A stronger second half performance resulted in turnover and pre-tax profit
being higher than 2003 levels.
"It was encouraging to see the current year starting with the majority of our
subsidiary company order books at higher levels than at the same time last
year...
"...Our management teams are positively responding to all opportunities in new
and existing markets."
FULL STATEMENT ATTACHED
Enquiries:
Richard Arbuthnot, Chief Executive Fiona Tooley
Metalrax Group PLC Citigate Dewe Rogerson Ltd
Tel: 0121 433 3444 Tel: 0121 455 8370
E-mail: info@metalrax-group.co.uk Mobile: 07785 703523
www.metalrax-group.co.uk
-2-
Metalrax Group PLC
Preliminary Results
for the year ended 31 December 2004
BOARD STATEMENT
Results
A stronger performance in the second half of the year resulted in turnover and
profit before taxation exceeding the levels for the previous year. Accordingly,
in the year to 31 December 2004, pre-tax profit increased to #12.11m from
#12.05m, with turnover generated by continuing operations increasing to #102.52m
from #100.76m. These results reflect our programme of selective reorganisation
of our businesses in order to respond to market conditions and to maximise
efficiencies and profitability.
Dividend
The board is recommending the payment of an unchanged final dividend, and the
proposal is that a payment of 3.75 pence per share be made on 27 May 2005 to
shareholders on the register of members at the close of business on 6 May 2005.
Subject to formal approval at the annual general meeting on 23 May 2005 this
will bring the total dividends for the year to 5.4 pence per share which is
again the same as that paid in respect of the previous year.
Board Changes
On 16 November 2004 John Crabtree was appointed non-executive chairman in
succession to Eric Moore who will retire from the board at the end of the annual
general meeting after serving the group at board level for forty years. As part
of our business development strategy, the board is pleased to announce the
appointment of Hedley Brook-Carter as an associate director in preparation for
his potential promotion in due course to become an executive director of the
group. Hedley is chief executive of Metalrax Limited and has been with the group
for seventeen years, more recently co-ordinating the activities of our support
services companies.
Prospects
It was encouraging to see the current year starting with the majority of our
subsidiary company order books at higher levels than at the same time last year.
The continuing instability in both raw material prices and energy costs will
continue to provide challenges as we seek to recover these increases from our
customers and control our cost base to maintain our competitive position with
low cost manufacturing countries. Our management teams are positively responding
to all opportunities in new and existing markets.
-3-
Metalrax Group PLC
Consolidated profit and loss account
for the year ended 31 December 2004
2004 2003
#'000 #'000 #'000 #'000
Turnover
Continuing operations 100,771 100,760
Acquisition 1,749 -
--------- ---------
102,520 100,760
Discontinued operations 1,938 3,590
========= =========
104,458 104,350
Cost of sales 77,621 76,291
--------- --------
Gross profit 26,837 28,059
--------- --------
Operating expenses:
Goodwill amortisation 392 338
Other 15,097 15,871
========= =========
15,489 16,209
--------- --------
Operating profit
Continuing operations before exceptional
reorganisation costs 11,013 11,682
Exceptional reorganisation costs (363) (413)
Acquisition 378 -
Discontinued operations 320 581
--------- ---------
11,348 11,850
Profit on disposal of subsidiary 528 -
--------- --------
Profit on ordinary activities before 11,876 11,850
interest
Interest receivable 245 207
--------- --------
12,121 12,057
Interest payable 11 10
--------- --------
Profit on ordinary activities before 12,110 12,047
taxation
Taxation 3,574 3,836
--------- --------
Profit on ordinary activities after 8,536 8,211
taxation
Minority interests - equity interests 61 76
--------- --------
Profit for the financial year 8,475 8,135
Dividends:
Interim of 1.65p per share (2003 - 1,978 1,978
1.65p)
Proposed final of 3.75p per share (2003
- 3.75p) 4,496 4,496
========= =========
6,474 6,474
--------- --------
Retained profit for the year 2,001 1,661
========= ========
Earnings per share - basic and diluted 7.07p 6.78p
Earnings per share is the group profit for the financial year #8,475,000 related
to 119,897,298 shares, being the number of ordinary shares in issue during the
year.
-4-
Metalrax Group PLC
Statement of total recognised gains and losses
for the year ended 31 December 2004
2004 2003
#'000 #'000
Profit for the financial year 8,475 8,135
Exchange fluctuation on foreign currency investments (70) (141)
-----------------------
Total recognised gains and losses since last annual 8,405 7,994
report =======================
Reconciliation of movements in shareholders' funds
for the year ended 31 December 2004
2004 2003
#'000 #'000
Profit for the financial year 8,475 8,135
Dividends (6,474) (6,474)
-------------------------
2,001 1,661
Goodwill reinstatement arising on disposal 656 -
Exchange fluctuation on foreign currency investments (70) (141)
-------------------------
Net addition to shareholders' funds 2,587 1,520
Opening shareholders' funds 53,609 52,089
-------------------------
Closing shareholders' funds 56,196 53,609
=========================
-5-
Metalrax Group PLC
Consolidated balance sheet
31 December 2004
2004 2003
#'000 #'000 #'000 #'000
Fixed assets
Intangible assets 6,592 5,958
Tangible assets 26,884 25,269
-------- ---------
33,476 31,227
Current assets
Stocks 17,416 16,955
Debtors 22,035 21,154
Cash at bank 10,356 11,024
-------- --------
49,807 49,133
======== ========
Creditors
Amounts falling due within one year 24,541 24,033
======== ========
Net current assets 25,266 25,100
-------- ---------
Total assets less current liabilities 58,742 56,327
Creditors
Amounts falling due after more than one 375 344
year -------- ---------
58,367 55,983
Provision for liabilities and charges
Deferred taxation 2,171 2,020
-------- ---------
Net assets 56,196 53,963
======== =========
Financed by:
Capital and reserves
Called up share capital 5,995 5,995
Share premium account 2,732 2,732
Capital redemption reserve 274 274
Profit and loss account 47,195 44,608
-------- ---------
Shareholders' funds - equity interests 56,196 53,609
Minority interests - equity interests - 354
-------- ---------
56,196 53,963
======== =========
-6-
Metalrax Group PLC
Cash flow statement
for the year ended 31 December 2004
2004 2003
#'000 #'000 #'000 #'000
Cash inflow from operating activities 12,377 13,659
Returns on investments and servicing of
finance
Interest received 245 207
Interest paid (11) (10)
Dividends paid to minority interests - (63)
======== =======
Net cash inflow from returns on investments
and servicing of finance 234 134
Taxation paid (3,820) (3,651)
Capital expenditure and financial
investment
Purchase of tangible fixed assets (3,498) (3,656)
Sale of tangible fixed assets 124 741
Purchase of goodwill - (189)
======== =======
Net cash outflow for capital expenditure and
financial investment (3,374) (3,104)
Acquisitions and disposals
Acquisition of subsidiary undertakings (2,022) (1,761)
Disposal of subsidiary undertakings 2,411 1,149
======== =======
Net cash inflow for acquisitions and 389 (612)
disposals
Equity dividends paid (6,474) (6,474)
-------- -------
Cash outflow before management of liquid
resources and financing (668) (48)
Management of liquid resources
Decrease in short term deposits 5,330 (593)
======== =======
Net cash inflow for management of liquid
resources 5,330 (593)
-------- -------
Increase/(decrease) in cash in the period 4,662 (641)
======== =======
-7-
Metalrax Group PLC
Notes on the cash flow statement
for the year ended 31 December 2004
2004 2003
#'000 #'000
1. Reconciliation of operating profit to net cash flow from
operating activities
Operating profit 11,348 11,850
Depreciation, net of disposal surpluses 3,078 3,225
Amortisation of goodwill 392 338
Increase in stocks (1,401) (873)
Increase in debtors (324) (1,312)
Decrease in creditors (716) 431
---------------------
Net cash inflow from operating activities 12,377 13,659
=====================
2. Reconciliation of net cash flow to movement in net
funds
Increase in cash in the period 4,662 (641)
Cash inflow for decrease in liquid resources (5,330) 593
---------------------
(668) (48)
Effect of foreign exchange rate changes - (36)
New loan notes issued (500) -
---------------------
Movement in net funds in the period (1,168) (84)
Net funds at 31 December 2003 11,024 11,108
---------------------
Net funds at 31 December 2004 9,856 11,024
=====================
Other
At Cash non-cash At
31.12.03 flow changes 31.12.04
#'000 #'000 #'000 #'000
3. Analysis of net funds
Bank balances 5,694 4,662 - 10,356
Short term deposits 5,330 (5,330) - -
-----------------------------------------------
Cash at bank per balance sheet 11,024 (668) - 10,356
Debt - - (500) (500)
-----------------------------------------------
11,024 (668) (500) 9,856
===============================================
continued...
-8-
Metalrax Group PLC
Notes on the cash flow statement
for the year ended 31 December 2004
2004 2003
#'000 #'000
4. Acquisition of subsidiary undertakings
Cash consideration 1,575 1,064
Bank overdraft acquired 340 -
Adjustments to purchase consideration - 11
Payment of deferred consideration 107 686
---------------------
Net cash outflow 2,022 1,761
=====================
2004 2003
#'000 #'000
5. Disposal of subsidiary undertakings
Cash consideration less bank balance 2,411 -
Deferred proceeds received - 1,149
---------------------
Net cash inflow 2,411 1,149
=====================
The subsidiary undertakings acquired and disposed of during the year did not
have a material effect on the group's net cash inflow from operating activities.
Part of the consideration for the purchase of subsidiary undertaking that
occurred during the year comprised loan notes.
-9-
Metalrax Group PLC
Notes forming part of the accounts
31 December 2004
Segmental analysis
Analysis by activity
2004 2003
Net Net
Operating operating Operating operating
Turnover profit assets Turnover Profit assets
#'000 #'000 #'000 #'000 #'000 #'000
Engineering and
storage products 62,906 7,732 26,442 58,711 7,241 23,467
Housewares 41,552 3,616 21,676 45,639 4,609 22,488
---------------------------------------------------------------------
104,458 11,348 48,118 104,350 11,850 45,955
====================== =================================
Unallocated net 8,078 8,008
assets -------- --------
56,196 53,963
======== ========
Geographical turnover analysis by destination
2004 2003
#'000 #'000
North America 4,750 5,840
Austria 2,402 1,743
France 1,115 771
Germany 895 769
Italy 587 742
Holland 497 664
Sweden 686 643
Ireland 849 581
Rest of Europe 2,371 1,697
China 685 241
Australia 355 426
Other 859 920
United Kingdom 88,407 89,313
---------- -----------
104,458 104,350
========== ===========
The annual general meeting will be convened for Monday, 23 May 2005.
Copies of the Report and Accounts will be posted to shareholders on 20 April
2005 and will be available from the same date to the public from:-
The Secretary
Metalrax Group PLC
Ardath Road
Kings Norton
Birmingham
B38 9PN
This information is provided by RNS
The company news service from the London Stock Exchange
END
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