RNS Number:1275K
North Midland Construction PLC
23 March 2005
North Midland Construction Plc
23 March 2005
2004 Preliminary Results
North Midland Construction PLC ("the Company"), the UK provider of civil
engineering, building, mechanical and electrical services to public and private
organisations, announces preliminary results for the year ended 31 December
2004.
Highlights from the results and the Chairman's Statement:-
Year ended Year ended
31 December 2004 31 December 2003
#'000 #'000
Turnover 102,947 82,294
Profit before Tax 3,278 2,932
Net Profit after Tax 2,285 2,033
Earnings per Share 21.98p 18.73p
Dividends 6.0p 5.0p
. Another record year in terms of Turnover and Profitability
. Nomenca has continued to achieve dramatic growth during the year
. Excellent workload being carried forward into the New Year
. Proposed final dividend of 4.0p (2003 : 3.5p)
For further information:-
Robert Moyle, Chairman
North Midland Construction PLC - 01623 518812
Mike Garratt, Finance Director
North Midland Construction PLC - 01623 518816
CHAIRMAN'S STATEMENT
It is extremely pleasing to report that last year was a landmark in achievement
for the Group, with profits exceeding #3,000,000 and turnover #100,000,000 for
the first time in the Group's history. The return before tax of 3.1%, on
turnover, dipped below last year's result of 3.5%, but still compares very
favourably with our competitors. This was due to an indifferent performance
from North Midland Building. All elements of the Group traded profitably and a
breakdown of their individual performances will provide a greater insight into
the overall result.
Civil Engineering, the largest division within the parent company, had a
successful year, delivering both turnover and profits in excess of budget. Loss
making contracts, which had marred the 2003 result, were eliminated and whilst
the water industry remained the prime driver of growth, both the power and rail
sectors were expanded. Several new clients to the division were acquired, most
notably the MOD and in the industrial market. The pace of expansion in the
North West was particularly heartening.
Highways maintained its unbroken record of year on year growth, securing several
new clients in the process. It continues to be a major player in the AmScott
consortium and contracts of a higher notational value, than previously, have
been awarded from other clients. This will be a significant advantage in the
pursuit of future growth.
The past year had several critical milestones to be achieved by the Utilities
division, as the Marconi, NTL and Kingston Communications term contracts were
all re-tendered. Not only were all these retained, but increased geographical
coverage secured as well. A large portion of East Anglia has been added to the
existing Marconi East Midlands contract and an extra area of the West Midlands
to the NTL contracts in the East Midlands and North West. These contracts,
coupled with expansion into other related areas of operation, produced an
out-turn for the year in excess of budget and will, more importantly, serve as a
springboard for the future.
Over recent years, the greatest success story has been the rapid growth of the
two subsidiaries - North Midland Building Limited and Nomenca Limited. Sadly,
North Midland Building's unbroken run of annual profit increases came to an end,
with a figure of #101,000 being earned on a turnover of nearly #18,000,000. The
largest ever project undertaken by the company for 569 student flats in Lincoln,
valued at #13,000,000, was successfully and profitably delivered on time, but
completion costs exceeded the estimates and two other loss-making contracts were
undertaken during the year. However, the ongoing order book stands at record
levels, inclusive of a major scheme of #27,000,000 value, so the portents are
for the result to be rectified in 2005.
Nomenca Limited produced the record performance of its short history with
profits escalating to #649,000 on a turnover of circa #20,000,000. The
capability to deliver turnkey projects, not just in the water industry, in
collaboration with the Civil's division of the PLC has been a major organ of
growth. Utilising the network of regional offices, the business has been
expanded, both within and external to, the water industry and a broad client
base has now been developed.
The last year is further testament of the Group's ability to deliver its stated
aim of organic growth. Further land has been acquired at the Head Office site
to cater for future requirements and there is a continuing need for the
recruitment of experienced staff and operatives. The Group is blessed both with
a core capability and a well trained, loyal and committed workforce that clients
find attractive to their needs. The success in being included on three of the
main supplier categories to the AMP4 programme for Severn Trent and the secured
term contracts in the Utilities sector are proof of this.
Over many years it has been your Board's opinion that the share price was never
reflective of either the Group's financial performance or asset value. Most
gratifyingly, this situation has now altered with a recent surge in the value
that has also been sustained. Your Board is delighted that finally its efforts
in championing the case have been rewarded.
The Group has already secured a workload of #100,000,000 for 2005 and this order
book should enable the exacting targets for future growth in 2005 to be
achieved. This confidence, allied with the desire to maintain an acceptable
yield, permits your Board to recommend an increase in the final dividend of
0.5p, making a total of 6.0p for the year.
Profit and Loss Account
Year ended Year ended
31 December 2004 31 December 2003
#'000 #'000
Group Turnover 102,947 82,294
Operating Profit 3,341 2,976
Net Interest (payable) (63) (44)
Profit before Taxation 3,278 2,932
Taxation (993) (899)
Group Profit after Taxation 2,285 2,033
Minority Interest (131) (197)
Profit for the Financial Year 2,154 1,836
Dividend (588) (490)
Retained Profit for the Financial Year 1,566 1,346
Earnings per share 21.98p 18.73p
Amount of actual final dividend on ordinary shares
proposed to the Shareholders on the register at the
close of business on 28 April 2005, which will be
paid on 24 May 2005. 4.00p 3.50p
Total dividend per ordinary share for the year ended
31 December 2004 6.00p 5.00p
The calculation of earnings per share is based on 9,800,000 shares (2003 :
9,800,000) being the number of shares in issue throughout the period and on a
profit of #2,154,000 (2003 : #1,836,000).
Balance Sheet
Year ended Year ended
31 December 2004 31 December 2003
#'000 #'000
Fixed Assets 5,100 4,011
Goodwill 106 -
5206 4,011
Current Assets
Stocks 7,280 3,401
Debtors 23,936 23,133
Cash at bank and in hand 4,151 2,816
35,367 29,350
Creditors - amounts falling due within one year (27,110) (21,679)
Net Current Assets 8,257 7,671
Total Assets less Current Liabilities 13,463 11,682
Creditors - amounts falling due after more than one year (659) (390)
Provision for Liabilities and Charges (197) (189)
Net Assets 12,607 11,103
Capital and Reserves
Called up Share Capital 980 980
Capital Redemption Reserve 20 20
Profit and Loss Account 11,220 9,654
Shareholders' Funds 12,220 10,654
Minority Interests 387 449
12,607 11,103
Cashflow
Year ended Year ended
31 December 2004 31 December 2003
#'000 #'000
Reconciliation of operating profit to net cash inflow
from operating activities
Operating Profit 3,341 2,976
Depreciation 1,075 986
(Profit) on sale of tangible fixed assets (110) (87)
Increase/(Decrease) in reinstatement reserve 8 (161)
(Increase) in stocks (3,879) (165)
(Increase) in debtors (803) (4,478)
Increase in creditors 5,169 2,925
Net cash Inflow from operating activities 4,801 1,996
Cash Flow Statement
Net cash Inflow from operating activities 4,801 1,996
Returns on investment and servicing of finance (63) (44)
Taxation (1,088) (628)
Capital expenditure (921) (969)
Equity dividends paid (539) (441)
Equity dividends paid to minority shareholders (86) (77)
Purchase of shares in subsidiary Company (213) -
Cash Inflow/(Outflow) before use of liquid resources and
financing
1,891 (163)
Financing - (decrease) in debt
(556) (494)
Increase/(Decrease) in cash for the year 1,335 (657)
Reconciliation of net cash flow to movement in net funds
Increase/(Decrease) in cash for the period 1,335 (657)
Cash outflow from decrease in hire purchase 556 494
Change in funds resulting from cash flow 1,891 (163)
New hire purchase agreements (1,133) (606)
Movement in net funds in the year 758 (769)
Net funds at 1 January 2004 2,006 2,775
Net funds at 31 December 2004 2,764 2,006
The abridged financial information presented is based on the full accounts of
the Group for the year ended 31 December 2004, on which the auditors have given
an unqualified report.
The accounts have yet to be filed with the Registrar of Companies.
The Annual report and Accounts for the year ended 31 December 2004 will be
despatched to the Shareholders on 28 April 2005.
The Annual General meeting will be held on 24 May 2005 at 12 noon.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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