Metalrax Group. - Final Results
March 14 2000 - 2:31AM
UK Regulatory
RNS Number:1739H
Metalrax Group PLC
14 March 2000
Record #14.35m pre-tax profit for Metalrax Group despite lower turnover
8.7% rise in total dividends to 5p per share for 1999
"Further extending the sequence of record profits" is the aim - Mr Eric Moore
Despite "a difficult trading environment", Metalrax Group PLC, the engineering
specialists, has today reported another pre-tax profit increase for 1999 to
#14.35m (#14.11m) with a rise of 8.7% in total dividends to 5p per share for
the year. "Further extending the sequence of record profits" is the aim of Mr
Eric Moore, chairman, who points to the group's intention of "building on our
consistently strong trading performances".
The increases in pre-tax profit and dividend come despite a reduction in
turnover to #95.80m (#105.80m). Earnings per share rose to 8.08p against last
year's 7.75p, and shareholders' funds improved by 7.1% to #46.42m.
The statement also discloses that two divisions have been created from the
previous three, with operating profit for engineering and storage products
increasing to #8.83m (#8.76m), and the housewares division, partly bolstered
by new acquisitions, recording a profit of #5.07m compared with #4.65m last
year.
While in some countries - particularly Germany - there was a decline in
exports, the USA and the rest of Europe have done well, reporting turnover of
#8.51m (#7.53m), and #1.88m (#1.37m) respectively.
The report also states: "Additional funds remain available for the acquisition
of companies whose products would supplement our existing ranges".
Note: A copy of the board statement follows.
Further information:
Mr Eric Moore, chairman
Telephone: 0121-433 3444
METALRAX GROUP PLC
AND SUBSIDIARY UNDERTAKINGS
PRELIMINARY ANNOUNCEMENT with regard to the consolidated accounts for the year
ended 31st December 1999.
BOARD STATEMENT
RESULTS
We are pleased to report another successful year when record profits were
achieved in a difficult trading environment. During the year to 31st December
1999 group profit before taxation and amortisation of goodwill increased to
#14.351m from #14.109m in the previous year. Profit margins at the operating
level were driven up by a combination of productivity gains and substantial
cost savings on raw material purchases. These lower input prices also
reflected in the turnover figure, at #95.796m.
DIVIDEND
In September the board announced an increase of 20% in the interim dividend to
bring the payment to 1.5 pence per share, which further narrowed the disparity
between interim and final payments. In the light of another rise in earnings
per share the recommended final dividend of 3.5 pence per share brings the
total dividend for the year to 5 pence per share, an increase of 8.7%. If
approved at the annual general meeting on 23rd May 2000 the final dividend
will be paid on 30th May 2000 to shareholders in the register of members on
2nd May 2000.
SHAREHOLDERS' FUNDS
The consolidated balance sheet and cash flow statement provide confirmation of
another year when management of cash resources has been accorded priority
status. For the third year in succession cash inflow from operating
activities has exceeded pre-tax profits, contributing towards shareholders'
funds equity interests which improved by 7.1% to #46.42m.
PROSPECTS
While stock market investors have been buying shares in e-commerce companies
with little trading or earnings record we have been investing in corporate web
sites and other information technology systems to help secure our position at
the leading edge of advances in the design, manufacture, installation and
marketing of group products. Additional funds remain available for the
acquisition of companies whose products would supplement our existing ranges.
It is encouraging to observe that the outlook for world economic activity has
been strengthening, with signs of prospective growth in domestic and overseas
markets. In this more positive atmosphere group strategic plans are geared
towards building on our consistently strong trading performances and further
extending the sequence of record profits.
The annual general meeting will be convened for Tuesday 23rd May 2000.
Copies of the Report and Accounts will be posted to all shareholders on 25th
April 2000 and will be available from the same date to the public from:
The Secretary
Metalrax Group PLC
Ardath Road
Kings Norton
Birmingham
B38 9PN
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER 1999
1999 1998
as restated
#'000 #'000 #'000 #'000 #'000
TURNOVER
Continuing operations 91084 103001
Acquisitions 3303 -
------ ------
94387 103001
Discontinued operations 1409 2798
====== ======
95796 105799
Cost of sales 67075 77993
------ ------
GROSS PROFIT 28721 27806
Operating expenses 14823 14402
------ ------
PROFIT ON ORDINARY
ACTIVITIES BEFORE INTEREST
Continuing operations 13434 13305
Acquisitions
- prior to goodwill
amortisation 701
- goodwill amortisation (117)
-----
584 -
------ ------
14018 13305
Discontinued operations (120) 99
====== ======
13898 13404
Interest receivable 498 902
------ ------
14396 14306
Interest payable 162 197
------ ------
PROFIT ON ORDINARY
ACTIVITIES BEFORE TAXATION 14234 14109
TAXATION 4360 4320
------ ------
PROFIT ON ORDINARY
ACTIVITIES AFTER TAXATION 9874 9789
Minority interests -
equity interests 41 187
------ ------
PROFIT FOR THE FINANCIAL YEAR 9833 9602
DIVIDENDS:
Interim of 1.5p per share
(1998: 1.25p) 1821 1531
Proposed final of 3.5p share
(1998: 3.35p) 4250 4100
------ ------
6071 5631
------ ------
RETAINED PROFIT FOR THE YEAR 3762 3971
====== ======
EARNINGS PER SHARE - basic 8.08 pence 7.75 pence
The group profit for the financial year #9,833,000
related to 121,694,000 being the weighted average
number of ordinary shares in issue during the year
(1998 - 123,869,000)
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
1999 1998
#'000 #'000
Profit for the financial year 9833 9602
Exchange fluctuation on
foreign currency investments 42 (5)
------ ------
Total recognised gains and losses
for the financial year 9875 9597
====== ======
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
1999 1998
#'000 #'000
Profit for the financial year 9833 9602
Dividends (6071) (5631)
Dividend saving on purchase of own shares 32 (23)
------ ------
3794 3948
New share capital subscribed 42 370
Purchase of own shares (879) (1970)
Goodwill adjustment 96 207
Exchange fluctuation on foreign
currency investments 42 (5)
------ ------
Net addition to shareholders' funds 3095 2550
Opening shareholders' funds 43325 40775
------ ------
Closing shareholders' funds 46420 43325
====== ======
CONSOLIDATED BALANCE SHEET
31ST DECEMBER 1999
1999 1998
#'000 #'000 #'000 #'000
FIXED ASSETS
Intangible assets 5093 -
Tangible assets 24698 23778
Investments 200 200
------ ------
29991 23978
CURRENT ASSETS
Stocks 15809 13231
Debtors 20791 19046
Cash at bank 7556 12283
------ ------
44156 44560
------ ------
CREDITORS
Amounts falling due
within one year 25760 22647
------ ------
Net current assets 18396 21913
------ ------
Total assets less
current liabilities 48387 45891
CREDITORS
Amounts falling due after
more than one year 65 328
------ ------
48322 45563
PROVISION FOR LIABILITIES
AND CHARGES
Deferred taxation 1451 1293
------ ------
NET ASSETS 46871 44270
====== ======
Financed by:
CAPITAL AND RESERVES
Called up share capital 6071 6119
Share premium account 2355 2318
Capital redemption reserve 167 113
Profit and loss account 37827 34775
------ ------
Shareholders' funds -
equity interests 46420 43325
Minority interests -
equity interests 451 945
------ ------
46871 44270
====== ======
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 1999
1999 1998
as restated
#'000 #'000 #'000 #'000
Cash inflow from operating
activities
Continuing operations 14126 13922
Discontinued operations 185 124
====== ======
14311 14046
Returns on investments and
servicing of finance
Interest received 498 902
Interest paid (162) (197)
====== ======
Net cash inflow from returns
on investments and servicing
of finance 336 705
Taxation paid (3977) (4829)
Capital expenditure and
financial investment
Purchase of tangible fixed
assets (2870) (3811)
Sale of tangible fixed
assets 577 423
====== ======
Net cash outflow for capital
expenditure and financial
investment (2293) (3388)
Acquisitions
Purchase of subsidiary
undertakings (8476) (230)
Bank balance acquired
with subsidiaries 1701 -
====== ======
Net cash outflow for
acquisitions (6775) (230)
Equity dividends paid (5889) (5462)
------ ------
Cash outflow before management
of liquid resources and
financing (4287) 842
Management of liquid resources
Decrease in short term
deposits 6671 631
====== ======
Net cash inflow from management
of liquid resources 6671 631
Financing:-
Issue of ordinary
share capital 42 370
Purchase of own shares (879) (1970)
New borrowings 781 316
Borrowings repaid (385) (341)
====== ======
Net cash outflow for financing (441) (1625)
------ ------
Increase in cash in the period 1943 (152)
====== ======
NOTES ON THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 1999
1999 1998
as restated
Continuing Discontinued Continuing Discontinued
#'000 #'000 #'000 #'000
1. Reconciliation of
operating profit to net
cash flow from operating
activities
Operating profit 14018 (120) 13305 99
Depreciation, net of
disposal surpluses 3087 (110) 2890 92
Amortisation of goodwill 117 - - -
Increase in stocks (1199) 250 (501) 58
Decrease in debtors (90) 420 (417) 59
Decrease in creditors (1807) (255) (1355) (184)
------ ------ ------ ------
Net cash inflow from
operating activities 14126 185 13922 124
====== ====== ====== ======
1999 1998
#'000 #'000 #'000 #'000
2. Reconciliation of net
cash flow to movement in
net funds
Increase in cash in the
period 1943 (152)
Cash inflow from increase
in debt (396) 25
Cash inflow from decrease
in liquid resources (6671) (631)
------ ------
(5124) (758)
Effect of foreign exchange
rate changes (60) 12
------ ------
Movement in net funds in
the period (5184) (746)
Net funds at 31st
December 1998 10249 10995
------ ------
Net funds at 31st
December 1999 5065 10249
====== ======
Foreign
At Cash exchange At
31.12.98 flow movement 31.12.99
#'000 #'000 #'000 #'000
3. Analysis of net funds
Bank balances 880 1943 1 2824
Short term deposits 11403 (6671) - 4732
------ ------
Cash at bank per
balance sheet 12283 - - 7556
Debt (2034) (396) (61) (2491)
------ ------ ------ ------
10249 (5124) (60) 5065
====== ====== ====== ======
1999 1998
#'000 #'000
4. Purchase of subsidiary
undertakings
Cash consideration 8476 -
Bank balance acquired (1701) -
Deferred consideration as
calculated at acquisition - 487
Reduction in consideration - (257)
------ ------
Net cash outflow 6775 230
====== ======
NOTES FORMING PART OF THE ACCOUNTS
31ST DECEMBER 1999
SEGMENTAL ANALYSIS
Analysis by activity:-
1999 1998
Net Net
Operating Operating Operating Operating
Turnover profit assets Turnover profit assets
#'000 #'000 #'000 #'000 #'000 #'000
Engineering and
storage products 58424 8831 23809 70228 8757 24614
Housewares 37372 5067 21968 35571 4647 17140
------ ------ ------ ------ ------ ------
95796 13898 45777 105799 13404 41754
====== ====== ====== ====== ====== ======
Unallocated net assets 1094 2516
------ ------
46871 44270
====== ======
Geographical analysis by origin:-
1999 1998
Net Net
Operating Operating Operating Operating
Turnover profit assets Turnover profit assets
#'000 #'000 #'000 #'000 #'000 #'000
United Kingdom 88756 13368 44797 98670 12672 42398
North America 7040 530 2074 7129 732 1872
------ ------ ------ ------ ------ ------
95796 13898 46871 105799 13404 44270
====== ====== ====== ====== ====== ======
Geographical analysis by destination:-
1999 1998
#'000 #'000
North America 8514 7529
Germany 1266 2255
Sweden 499 740
France 830 547
Spain 1488 1484
Holland 690 544
Finland 205 472
Rest of Europe 1879 1372
Africa 65 154
Far East, Australia and other 1222 1472
United Kingdom 79138 89230
------ ------
95796 105799
====== ======
END
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