RNS Number:4849R
Metalrax Group PLC
26 September 2000
Another record interim profit - #6.54m - for Metalrax Group -
dividend up 10%
"A period of further progress" forecast
"A large number of new shareholders having been added" - Mr. Eric Moore,
chairman.
Reporting yet another interim pre-tax profit rise to #6.54m (#6.52m) and an
increase in operating profit to #6.5m (#6.28m) for the six months to June
30, Metalrax Group PLC - specialist engineers - also show a turnover
recovery to #52.04m (#46.42m) and a 10% increase in interim dividend to
1.65p per share. And Mr. Eric Moore, chairman, is able to report:" Our
order levels remain encouraging, with ongoing projects contributing to a
period of further progress." He also refers to "a large number of new
shareholders having been added" and gives a commitment " to adding value to
the group wherever possible."
The report further shows an increased profit to #4.3m (#4.24m) for the
engineering and storage products division on turnover up to #31.29m
(#29.81m). Mr. Moore adds that the group strategy of adding new products
and services was successful and "inspiration, energy and commitment remain
driving forces in securing best practice manufacturing performance".
The division has expanded its range of precision mechanisms for assembly
into safety devices, while at the same time securing facilities and
personnel at customers' premises "through the installation of purpose built
storage and handling systems with access stairways, walkways, fire escapes
and barrier rails."
Housewares also continue to expand with profit up to #2.19m (#2.04m) and
turnover reaching #20.75m compared with #16.61m last year. The expansion of
this division, adds Mr. Moore, "has provided opportunities for the
expertise of local management to be applied in identifying operational
synergies. Creative product development backed by strong financial
resources have influenced many leading retailers to select our group
companies as preferred choice suppliers."
And he adds that group share of key domestic markets has grown - notably
in bakeware and kitchen gadgets - and "by working closely with retail
organisations we have created some of the most popular designs and finishes
for the bathroom market while developing and selling new
ranges of furniture, beds, wine racks and cookware."
Metalrax Group PLC - a broad-spectrum engineering group - has a
consistent long-term record of out-performing companies in the engineering
sector, with this interim record profit for the 17th year in succession.
Note: A copy of the interim statement is attached
Further information: Mr. Eric Moore, chairman - Telephone 0121 433 3444
Statement by the chairman
Results and dividend
The encouraging projections reported at the annual general meeting in May
have duly materialised in the record figures achieved in the first half of
this year. Turnover rose to #52.038m from #46.423m, while operating profit
increased to #6.496m compared with #6.283m for the corresponding period
last year. These results again confirm the abilities of our group companies
to win additional business by producing extra value and service for
customers in a fiercely competitive trading environment.
In pursuance of their long established progressive dividend policy the
directors have declared an increase of 10% in the interim dividend.
Accordingly, the payment of 1.65 pence per share will be made on 30th
October 2000 to shareholders on the register of members at 6th October
2000. The recommended total increase in dividends for the full year will be
announced in March 2001.
Review
The talents of our management teams were again evident in the further
expansion of the portfolio of quality products available to customers. In
support of these efforts we have continued to invest in new technology
capable of coping with rapidly changing demands in the marketplace. The
latest group newsletter, which accompanies this report, includes references
to some of the more notable advancements within both divisions.
Engineering and storage products
Our strategy of adding new products and services to the existing range was
successfully advanced during the period under review. Inspiration, energy
and commitment remained driving forces in securing best practice
manufacturing performance from our large selection of versatile production
plant and tooling.
In partnership with key customers we have expanded the range of precision
mechanisms for assembly into safety devices. At the same time the security
of facilities and personnel at customers' premises has been safeguarded
through the installation of purpose built storage and handling systems,
with access stairways, walkways, fire escapes and barrier rails. Leisure
and recreational activities were also catered for in the manufacture and
supply of equipment for art galleries, museums, sports clubs, theatres and
airports.
Housewares
Expansion of this division has provided opportunities for the expertise of
local management to be applied in identifying operational synergies.
Creative product development initiatives, backed by our strong financial
resources, have influenced many leading retailers to select our group
companies as preferred choice suppliers.
Our share of key domestic markets has continued to grow, notably in
bakeware and kitchen gadgets, where new contracts have been secured to
supply products under both our own and customer private labels. By working
closely with retail organisations we have created some of the most popular
designs and finishes for the bathroom market, while developing and selling
new ranges of furniture, beds, wine racks and cookware.
Prospects
Over the past few months it has been pleasing to note a large number of new
shareholders being added to our register of members. We can assure them and
all other shareholders of our commitment to adding value to the group
wherever possible.
Trading patterns will continue to be influenced by the relative weakness
of the euro and other global economic factors beyond our control. In this
challenging atmosphere our order levels remain encouraging, with ongoing
projects contributing to a period of further progress.
Eric Moore
26th September 2000
Consolidated profit and loss account
six months ended 30th June 2000
2000 1999 1999
Six months Six months Twelve months
ended ended ended
30th June 30th June 31st December
Unaudited Unaudited Audited
#'000 #'000 #'000
Turnover
Continuing operations 52,038 45,393 94,387
Discontinued operations - 1,030 1,409
52,038 46,423 95,796
----- ------ ------
Operating profit
Continuing operations 6,626 6,249 14,135
Discontinued operations - 34 (120)
6,626 6,283 14,015
Goodwill amortisation 130 - 117
6,496 6,283 13,898
Interest receivable 163 309 498
6,659 6,592 14,396
Interest payable 124 68 162
---- ----- ----
Profit before taxation 6,535 6,524 14,234
Taxation 1,999 1,974 4,360
----- ----- -----
Profit after taxation 4,536 4,550 9,874
Minority interests -
equity interests 20 69 41
----- ----- -----
Profit for the period 4,516 4,481 9,833
----- ------ -----
Appropriated as follows:
Interim dividend
1.65p per share payable
30th October 2000
(1999: 1.50p per share) 1,984 1,821 6,071
Retained profit for
the period 2,532 2,660 3,762
----- ----- -----
4,516 4,481 9,833
----- ----- ------
Earnings per share Basic
and diluted 3.74p 3.67p 8.08p
Consolidated balance sheet
30th June 2000
2000 1999 1999
30th June 30th June 31st December
Unaudited Unaudited Audited
#'000 #'000 #'000
Fixed assets
Intangible assets 4,963 2,037 5,093
Tangible assets 25,305 23,243 24,698
Investments 200 200 200
30,468 25,480 29,991
------ ------ -----
Current assets
Stocks 18,089 15,209 15,809
Debtors 22,647 19,014 20,791
Cash at bank 5,153 10,883 7,556
45,889 45,106 44,156
Creditors
Amounts falling due
within one year 25,919 22,890 25,760
Net current assets 19,970 22,216 18,396
Total assets less
current liabilities 50,438 47,696 48,387
Creditors
Amounts falling due after
more than one year 46 121 65
------ ------ ------
50,392 47,575 48,322
Provision for liabilities
and charges
Deferred taxation 1,451 1,293 1,451
----- ----- -----
Net assets 48,941 46,282 46,871
------ ------- ------
Financed by:
Capital and reserves
Called up share capital 6,014 6,071 6,071
Share premium account 2,355 2,355 2,355
Capital redemption reserve 224 167 167
Profit and loss account 39,850 36,675 37,827
------ ------ ------
Shareholders' funds -
equity interests 48,443 45,268 46,420
Minority interests -
equity interests 498 1,014 451
------ ------ ------
48,941 46,282 46,871
------ ------ ------
Cash flow statement
six months ended 30th June 2000
2000 1999 1999
Six months Six months Twelve months
ended ended ended
30th June 30th June 31st December
Unaudited Unaudited Audited
#'000 #'000 #'000
Cash inflow from
operating activities 5,806 6,535 14,311
----- ----- ------
Net cash inflow from
returns on investments
and servicing of finance 39 241 336
---- ----- ------
Taxation paid (1,347) (154) (3,977)
---- ----- ------
Net cash outflow for capital
expenditure and
financial investment (2,035) (724) (2,293)
------- ----- ------
Net cash outflow for
acquisitions - (2,387) (6,775)
------- -------- -------
Equity dividends paid (4,209) (4,076) (5,889)
------- -------- -------
Cash outflow before
management of liquid
resources and financing (1,746) (565) (4,287)
------- ------- -------
Net cash inflow from
management of
liquid resources 1,328 2,419 6,671
----- ----- -----
Financing
Issue of ordinary
share capital - 42 42
Purchase of own shares (655) (879) (879)
New borrowings - - 781
Borrowings repaid (2) (4) (385)
(657) (841) (441)
----- ----- -----
Decrease in cash
in the period (1,075) 1,013 1,943
------ ------ ------
Notes on the cash flow statement
six months ended 30th June 2000
2000 1999 1999
Six months Six months Twelve months
ended ended ended
30th June 30th June 31st December
Unaudited Unaudited Audited
#'000 #'000 #'000
1 Reconciliation of operating profit
to net cash flow from operating
activities
Operating profit 6,496 6,283 13,898
Depreciation, net of
disposal surpluses 1,627 1,580 2,977
Amortisation of goodwill 130 - 117
Increase in stocks (1,950) (1,459) (949)
Increase in debtors (1,734) 411 330
Increase in creditors 1,237 (280) (2,062)
----- ----- ------
Net cash inflow from operating
activities 5,806 6,535 14,311
----- ----- ------
2 Reconciliation of net cash flow to
movement in net funds
Decrease in cash in the
period (1,075) 1,013 1,943
Cash outflow for decrease
in debt 2 4 (396)
Cash inflow from decrease
in liquid resources (1,328) (2,419) (6,671)
(2,401) (1,402) (5,124)
Effect of foreign
exchange rate changes (161) (97) (60)
Movement in net funds in
the period (2,562) (1,499) (5,184)
Net funds at 31st
December 1999 5,065 10,249 10,249
Net funds at 30th
June 2000 2,503 8,750 5,065
----- ------ -----
3 Analysis of net funds
Foreign
At cash exchange At
31.12.99 flow movement 30.6.00
#'000 #'000 #'000 #'000
Bank balances 2,824 (1,075) - 1,749
Short-term deposits 4,732 (1,328) - 3,404
Cash at bank per
balance sheet 7,556 5,153
Debt (2,491) 2 (161) (2,650)
5,065 (2,401) (161) 2,503
----- ------ ---- -----
Notes to the interim results
six months to 30th June 2000
Segmental analysis
Analysis by activity 2000 1999 1999
Six months Six months Twelve months
to 30th June to 30th June to 31st December
Unaudited Unaudited Audited
Operating Operating Operating
Turnover profit Turnover profit Turnover profit
#'000 #'000 #'000 #'000 #'000 #'000
Engineering and
storage products 31,293 4,305 29,812 4,241 58,424 8,831
Housewares 20,745 2,191 16,611 2,042 37,372 5,067
52,038 6,496 46,423 6,283 95,796 13,898
Geographical analysis
by origin Operating Operating Operating
Turnover profit Turnover profit Turnover profit
#'000 #'000 #'000 #'000 #'000 #'000
United Kingdom 48,292 6,234 42,846 5,994 88,756 13,368
North America 3,746 262 3,577 289 7,040 530
52,038 6,496 46,423 6,283 95,796 13,898
Geographical turnover
analysis by destination
#'000 #'000 #'000
North America 4,293 3,934 8,514
Germany 553 554 1,266
Spain 540 810 1,488
France 505 321 830
Sweden 322 165 499
Belgium 320 421 528
Holland 351 315 690
Austria 302 100 133
Eire 264 125 438
Finland 140 116 205
Rest of Europe 358 427 780
Africa 33 45 65
Far East, Australia
and other 678 627 1,222
United Kingdom 43,379 38,463 79,138
52,038 46,423 95,796
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