RNS Number:1408D
Metalrax Group PLC
21 September 2004
Issued on behalf of Metalrax Group PLC
Date: Tuesday, 21st September 2004
Embargoed: 7.00am
Metalrax Group PLC
Results for the half year to 30th June 2004
2004 2003
--------------------------------------------------------------------------------
Turnover #50.58m #51.10m
Profit before Tax #5.23m #5.72m
Maintained Interim Dividend 1.65p 1.65p
Eric Moore to step down as Chairman in November and retire following 2005 AGM
John Crabtree to take over as non-executive Chairman
Escalating costs of steel and other commodities reflected in profit before tax
Encouraging demand for our stock room shelving and associated steelwork
New products have been successfully introduced and well received by customers in
our housewares division
"At any one time our wide customer base across the globe is subject to differing
effects of economic cycles, with our operations being sufficiently diverse to
respond quickly to domestic and international events. The many challenges
presented by higher raw material and energy prices, exchange rate fluctuations
and competition from the low cost manufacturing countries will be faced
professionally, and we shall take every opportunity to secure long term
profitable growth."
Eric Moore, Chairman
Enquiries:
Richard Arbuthnot, Chief Executive Fiona Tooley / Alan Cooke
Metalrax Group PLC Citigate Dewe Rogerson Ltd
Tel: 0121 433 3444 Tel: 0121 455 8370
E-mail: info@metalrax-group.co.uk
www.metalrax-group.co.uk
-2-
Metalrax Group PLC
Results for the half year to 30th June 2004
STATEMENT BY THE CHAIRMAN
Results
At the time of our annual general meeting in May we expressed concerns over the
escalating costs of steel and other commodities, and the perceived difficulties
of passing on to customers the significantly increased prices. The effects of
these pressures were particularly reflected in the second quarter of the year,
leaving pre-tax profit for the six months to 30th June 2004 at #5.23m compared
with #5.72m in the previous year. Turnover in the first half year fell
marginally to #50.58m from #51.10m.
Shortly after the period under review we disposed of our remaining interests in
The Texas Group, Inc. and the profit relating to our withdrawal from the United
States will be included in figures for the full year.
Dividend
An unchanged interim dividend of 1.65 pence per share has been declared by the
board, payable on 29th October 2004 to shareholders on the register at the close
of business on 15th October 2004.
Board changes
With Terry Jones having retired from the board and been succeeded by Darren
Farrimond, we are now in the final stages of our board succession and renewal
programme. Accordingly, I shall relinquish the position of chairman with effect
from the November board meeting, and retire from the board at the end of the
next annual general meeting. We are delighted that our colleague John Crabtree
has accepted the invitation to take over the duties of non-executive chairman.
Review
Our executive teams have maintained their determined and resolute approach to
cost management for the purpose of achieving satisfactory agreements with
customers and suppliers. The group newsletter posted to shareholders with this
report outlines some of the ongoing business initiatives relating to both
operational divisions.
Engineering and storage products
The spirit of co-operation and support between relevant divisional companies has
continued to provide enhanced opportunities for advancement. This collaboration
has helped to secure contracts which can offer customers technological
advantages at competitive prices, supported by first-class quality and service.
A significant increase in demand for our stock room shelving and associated
steelwork has contributed towards an encouraging first half performance. The
successful policy of adopting a variety of distinct routes to market can be
measured by our continued involvement with new retail store openings, numerous
recent installations for National Health Service projects and increased
representation in industrial mail order catalogues.
Housewares
Lower than anticipated levels of consumer demand combined with costs incurred on
product rationalisation had a dampening effect on the performance of this
division. A number of major customers reduced their stockholdings prior to
large-scale product relaunches later in the year, when benefits from these new
product developments will materialise.
Additional special equipment has been introduced to expand volume manufacture of
bathroom and bedroom products, particularly with vinyl pressed surfaces. The
well received introduction of a new product range under our own brand name has
complemented several existing designs produced to some individual customer
specifications, and is successfully extending the number of sales outlets.
continued...
-3-
Prospects
Our rigorously established strategies for expansion plans through the purchase
of carefully selected companies continue to add strength to the group.
Accordingly, in July we were pleased to announce the acquisition of Premier
Stairways Limited, whose range of high quality architectural metalwork will
provide synergies with existing businesses within the group.
At any one time our wide customer base across the globe is subject to differing
effects of economic cycles, with our operations being sufficiently diverse to
respond quickly to domestic and international events. The many challenges
presented by higher raw material and energy prices, exchange rate fluctuations
and competition from the low cost manufacturing countries will be faced
professionally, and we shall take every opportunity to secure long term
profitable growth.
Eric Moore
21st September 2004
-4-
Metalrax Group PLC
Consolidated profit and loss account
six months ended 30th June 2004
Notes 2004 2003 2003
Six months Six months Twelve months
ended ended ended
30th June 30th June 31st December
Unaudited Unaudited Audited
#'000 #'000 #'000
Turnover 50,580 51,100 104,350
========= ======== ==========
Operating profit 5,275 5,743 12,601
Goodwill amortisation 172 151 338
--------- -------- ----------
5,103 5,592 12,263
Exceptional items - - 413
--------- -------- ----------
5,103 5,592 11,850
Interest receivable 130 135 207
--------- -------- ----------
5,233 5,727 12,057
Interest payable 3 6 10
--------- -------- ----------
Profit before taxation 5,230 5,721 12,047
Taxation 3 1,568 1,762 3,836
--------- -------- ----------
Profit after taxation 3,662 3,959 8,211
Minority interests - equity
interests 57 36 76
--------- -------- ----------
Profit for the period 3,605 3,923 8,135
========= ======== ==========
Appropriated as follows:
Interim dividend
1.65p per share payable 29th
October 2004 5 1,978 1,978 6,474
(2003: 1.65p per share)
Retained profit for the period 1,627 1,945 1,661
--------- -------- ----------
3,605 3,923 8,135
========= ======== ==========
Earnings per share basic and
diluted 6 3.01p 3.27p 6.78p
-5-
Metalrax Group PLC
Consolidated balance sheet
30th June 2004
2004 2003 2003
30th June 30th June 31st December
Unaudited Unaudited Audited
#'000 #'000 #'000
Fixed assets
Intangible assets 5,786 5,038 5,958
Tangible assets 24,979 25,885 25,269
-------- -------- ----------
30,765 30,923 31,227
-------- -------- ----------
Current assets
Stocks 18,566 17,008 16,955
Debtors 21,991 21,914 21,154
Cash at bank 7,955 7,756 11,024
-------- -------- ----------
48,512 46,678 49,133
Creditors
Amounts falling due within one year 21,295 21,046 24,033
-------- -------- ----------
Net current assets 27,217 25,632 25,100
-------- -------- ----------
Total assets less current liabilities 57,982 56,555 56,327
Creditors
Amounts falling due after more than
one year 344 200 344
-------- -------- ----------
57,638 56,355 55,983
Provision for liabilities and charges
Deferred taxation 2,019 1,952 2,020
-------- -------- ----------
Net assets 55,619 54,403 53,963
======== ======== ==========
Financed by:
Capital and reserves
Called up share capital 5,995 5,995 5,995
Share premium account 2,732 2,732 2,732
Capital redemption reserve 274 274 274
Profit and loss account 46,207 44,988 44,608
-------- -------- ----------
Shareholders' funds - equity interests 55,208 53,989 53,609
Minority interests - equity interests 411 414 354
-------- -------- ----------
55,619 54,403 53,963
======== ======== ==========
-6-
Metalrax Group PLC
Cash flow statement
six months ended 30th June 2004
2004 2003 2003
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 4,447 5,190 13,659
Net cash inflow from returns on
investments 127 129 134
and servicing of finance
Taxation paid (1,825) (1,657) (3,651)
Net cash outflow for capital
expenditure (1,258) (1,949) (3,104)
and financial investment
Net cash outflow for acquisitions and
disposals (63) (560) (612)
Equity dividends paid (4,496) (4,496) (6,474)
--------- --------- ----------
Cash outflow before management of
liquid (3,068) (3,343) (48)
resources and financing
--------- --------- ----------
Net cash inflow from management of
liquid 4,340 1,801 (593)
resources
--------- --------- ----------
Increase in cash in the period 1,272 (1,542) (641)
========= ========= ==========
-7-
Metalrax Group PLC
Notes on the cash flow statement
six months ended 30th June 2004
2004 2003 2003
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 5,103 5,592 12,263
Depreciation, net of disposal
surpluses 1,557 1,595 3,225
Amortisation of goodwill 172 151 338
Increase in stocks (1,582) (1,007) (873)
Increase in debtors (845) (1,584) (1,312)
Increase in creditors 42 443 431
Exceptional reorganisation costs - - (413)
--------- -------- ----------
Net cash inflow from operating
activities 4,447 5,190 13,659
========= ======== ==========
2 Reconciliation of net cash flow to
movement in net funds
Increase in cash in the period 1,272 (1,542) (641)
Cash inflow from decrease in
liquid resources (4,340) (1,801) 593
--------- -------- ----------
(3,068) (3,343) (48)
Effect of foreign exchange rate
changes (1) (9) (36)
--------- -------- ----------
Movement in net funds in the
period (3,069) (3,352) (84)
Net funds at 31st December 2003 11,024 11,108 11,108
--------- -------- ----------
Net funds at 30th June 2004 7,955 7,756 11,024
========= ======== ==========
3 Analysis of net funds
Foreign
At Cash exchange At
31.12.03 flow movement 30.06.04
#'000 #'000 #'000 #'000
Bank balances 5,694 1,272 (1) 6,965
Short term deposits 5,330 (4,340) - 990
-------- --------- --------- ----------
Cash at bank per balance 11,024 (3,068) (1) 7,955
sheet ======== ========= ========= ==========
-8-
Metalrax Group PLC
Notes to the interim results
six months to 30th June 2004
1 Segmental analysis
Analysis by
activity 2004 2003 2003
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 31,429 3,657 29,923 3,616 58,711 7,241
storage
products
Housewares 19,151 1,446 21,177 1,976 45,639 5,022
-------- -------- ------- -------- ------- --------
50,580 5,103 51,100 5,592 104,350 12,263
Geographical analysis
by origin
Operating Operating Operating
Turnover Profit Turnover Profit Turnover Profit
#'000 #'000 #'000 #'000 #'000 #'000
United Kingdom 48,714 4,826 49,547 5,336 100,760 11,678
North America 1,866 277 1,553 256 3,590 585
-------- -------- ------- -------- ------- --------
50,580 5,103 51,100 5,592 104,350 12,263
Geographical
turnover
analysis by
destination
#'000 #'000 #'000
North America 3,144 2,613 5,840
Austria 1,240 980 1,743
France 420 367 771
Germany 329 298 769
Italy 297 421 742
Sweden 269 320 643
Ireland 268 270 581
Poland 234 30 172
Holland 230 370 664
Belgium 209 148 338
Rest of Europe 750 637 1,187
China 233 98 241
Australia 207 75 426
Rest of World 402 498 920
United Kingdom 42,348 43,975 89,313
-------- ------- ---------
50,580 51,100 104,350
======== ======= =========
continued...
-9-
2 Accounting policies
The unaudited interim results for the half year ended 30th June 2004 have been
prepared on the basis of the accounting policies set out in the report and
accounts for the year ended 31st December 2003. The financial information
contained herein does not constitute statutory accounts within the meaning of
section 240(5) of the Companies Act 1985.
The statutory accounts for the year ended 31st December 2003, which have been
delivered to the registrar of companies, carry an unqualified report by the
auditors, and do not contain a statement under section 237(2) or (3) of the
Companies Act 1985.
3 Taxation
The charge for taxation is based on the estimated effective rate for the year as
a whole.
4 Recognised gains and losses
There were no material recognised gains or losses in the results other than the
consolidated profit for the period.
5 Dividend
The directors recommend the payment of an interim dividend of 1.65p per ordinary
share to shareholders registered on 15th October 2004 to be paid on 29th October
2004.
6 Earnings per share
The earnings per ordinary share are calculated on the profit for the period. The
number of shares used in the calculation of basic earnings per share is
119,897,298 being the shares in issue during the period.
Diluted earnings per share, taking into account the number of shares capable of
being exercised under the various option schemes, are the same as the disclosed
basic earnings.
7 Announcement of results
These results were announced to the London Stock Exchange on 21st September 2004
and sent to shareholders on the same day. Further copies are available from the
Company Secretary, Metalrax Group PLC, Ardath Road, Kings Norton, Birmingham B38
9PN.
-10-
Metalrax Group PLC
Directors, bankers and professional advisers
Directors Bankers
Eric S. Moore, F.C.A.* Barclays Bank PLC
Chairman 15 Colmore Row,
Richard E. Arbuthnot, B.Sc., M.Sc. Birmingham B3 2BY
Chief executive
Reginald Fort, F.C.A.* National Westminster Bank PLC
Jeffrey G. L. Edwards 21 Digbeth,
Garry H. Gresham, B.A. (Hons) Birmingham B5 6BL
John K. Adcock, F.C.I.B.*
John R. A. Crabtree, LL.B.* HSBC Bank plc
Darren J. Farrimond, B.Sc., A.C.A. 130 New Street,
*non-executive Birmingham B2 4JU
Secretary Auditors
Darren J. Farrimond, B.Sc., A.C.A. Bentley Jennison
Chartered Accountants
Legge Street,
Birmingham B4 7EU
Registered Office Solicitors
Ardath Road, Hammonds
Kings Norton, 148 Edmund Street,
Birmingham B38 9PN Birmingham B3 2JR
Telephone: 0121-433 3444 Registrars
Facsimile: 0121-433 3325 Computershare Investor Services Plc
E-mail: info@metalrax-group.co.uk P.O. Box 82,
www.metalrax-group.co.uk The Pavilions,
Bridgwater Road,
Registered in England 793639 Bristol BS99 7NH
This information is provided by RNS
The company news service from the London Stock Exchange
END
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