Final Results
March 15 2001 - 10:24AM
UK Regulatory
RNS Number:5453A
North Midland Construction PLC
15 March 2001
NORTH MIDLAND CONSTRUCTION PLC
2000 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 2000.
Highlights from the Results and Chairman's Statement:
Year ended Year ended
31 December 31 December
2000 1999
#'000 #'000
Turnover 50,939 43,461
Operating profit 2,290 310
Net profit after tax 1,555 179
Earnings per share 15.00p 1.34p
Dividends 4.0p 1.5p
* Record year in terms of Turnover.
* A successful year for the Cable Division with a four-year contract with
British Telecom providing a firm foundation for future growth.
* New Civil Engineering contracts secured with Severn Trent and the
Highways Agency.
* North Midland Construction exceeding expectations.
* Difficulties experienced by Nomenca' on a major contract which is now
almost complete.
* Healthy workload being carried forward into the new year.
* Proposed final dividend of 2.5p (1999: 1p)
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
In stark contrast to 1999, the Millennium year has seen a return to growth for
the Company. Group turnover at nearly #51m is an all-time record and the
operating profit of #2.3m has only been surpassed once before.
The optimism expressed in the half-year statement was maintained throughout
the year and great progress has been achieved throughout the Group in
improving operational efficiency. The continuing low level of margins within
the construction industry requires a continuous programme of cost-cutting and
efficiency measures to maintain progress. This has been achieved and is a
credit to the entire workforce, who have striven so hard this year. It is a
delight to see their efforts rewarded.
The Group consists of three main operating companies; the Parent Company,
North Midland Building and Nomenca - the mechanical and electrical contracting
subsidiary. North Midland Construction PLC is divided into two main operating
divisions (i.e. Civil Engineering and Cable).
The Cable division has experienced a highly profitable year on the back of
resurgent spending by the telecommunications sector. Further new clients have
been secured and the British Telecom 4 year contract, obtained in partnership
with Marconi, previously announced, will provide a firm foundation for future
growth.
Civil Engineering continues to be a difficult market, plagued with continuing
tight margins. Losses incurred on the final settlement of old contract
accounts, resulted in a year end loss, marring what was otherwise a profitable
performance. However, partnership arrangements have recently been secured with
both Severn Trent and the Highways Agency, which will provide a good platform
for the future.
North Midland Building produced a result far in excess of budget and completed
several ground-breaking projects for the company. A successful track record on
increasingly larger schemes, coupled with a proven management team, has opened
up new markets and a wider client base.
Nomenca encountered major problems on a large contract, primarily due to the
demise of a key sub-contractor. Whilst all the other contracts proved
profitable, the extent of the losses on this scheme, threw the company into an
annual loss. The loss-making contract is now virtually complete and the
combination of the individual skills of Nomenca and the Parent Company, are
key to the strategy of developing new markets for the Group.
The continuing poor market rating of the Company's shares, although there has
been upward movement during the year, remains of paramount importance to your
Board. A successful buy-back of 200,000 shares was completed in December 2000
and, subject to shareholder approval, it is intended to introduce a Share Plan
during 2001. Whilst the Board appreciate that these measures will not provide
the ultimate panacea, hopefully they will have some effect on a share price
that still fails to even reflect asset value.
Great progress has been achieved during the year to improve performance across
the full range of the Group's activities. A healthy workload is being carried
forward into the New Year and your Board is committed to a path of future
growth. Therefore, the Board is recommending an increase in total dividend for
2000 of 4 pence per share.
R Moyle
Chairman
15 March 2001
Profit and Loss Account
Year Year
ended ended
31 31
December December
2000 1999
#'000 #'000
Group Turnover 50,939 43,461
Operating Profit 2,290 310
Net Interest (payable) (51) (58)
Profit before taxation 2,239 252
Taxation (684) (73)
Group Profit after taxation 1,555 179
Minority interest (56) (45)
Profit for the financial year 1,499 134
Dividend (395) (150)
Retained Profit (1999 - (loss)) for the financial year 1,104 (16)
Earnings per share - basic and diluted 15.00p 1.34p
Amount of actual final dividend on ordinary shares proposed
to the shareholders on the register at the close of business
on 6 April 2001 which will be paid on 10 May 2001.
2.50p 1.00p
Total dividend per ordinary share for the year ended 31
December 2000. 4.00p 1.50p
The calculation of earnings per share is based on 9,993,443 shares (1999:
10,000,000) being the weighted average number of shares in issue throughout
the period and on a profit of #1,499,000 (1999: #134,000).
Balance Sheet
31/12/00 31/12/99
#'000 #'000
Fixed Assets 2,841 2,636
______ ______
Current Assets
Stocks 4,202 1,905
Debtors 13,080 9,484
Cash at bank and in hand 797 2,978
______ ______
18,079 14,367
Creditors - amounts falling due within one year (12,863) (10,053)
______ ______
Net Current Assets 5,216 4,314
______ ______
Total Assets less Current Liabilities 8,057 6,950
Creditors - amounts falling due after more than one year (276) (174)
Provision for Liabilities and Charges (410) (409)
______ ______
Net Assets 7,371 6,367
===== =====
Capital and Reserves
Called up Share Capital 980 1,000
Capital Redemption Reserve 20 -
Profit and Loss Account 6,233 5,240
______ ______
Shareholders' Funds 7,233 6,240
Minority Interests 138 127
______ ______
7,371 6,367
===== =====
Cashflow Year Year
ended ended
31 31
December December
2000 1999
#'000 #'000
Reconciliation of operating profit to net cash inflow from
operating activities
Operating Profit 2,290 310
Depreciation 769 791
(Profit) on sale of tangible fixed assets (81) (67)
(Decrease) in reinstatement reserve (8) (118)
(Decrease)/Increase in stocks (2,297) 174
(Decrease)/Increase in debtors (3,596) 1,433
Increase in creditors 1,951 197
Net cash (outflow)/inflow form operating activities (972) 2,720
Cash Flow Statement
Net cash (outflow)/Inflow from operating activities (972) 2720
Returns on investment and servicing of finance (51) (58)
Taxation (98) (301)
Capital expenditure (299) (89)
Equity dividends paid (250) (300)
Equity dividends paid to minority shareholders (44) (13)
Sale of minority interest in subsidiary - 25
Purchase of own shares (111) -
Cash inflow/(outflow) before use of liquid resources and (1,825) 1,984
financing
Financing - (decrease) in debt (356) (447)
(Decrease)/Increase in cash for the year (2,181) 1,537
Reconciliation of net cash flow to movement in net funds
(Decrease)/increase in cash for the period (2,181) 1,537
Cash outflow from decrease in hire purchase 356 447
Change in debt/funds resulting from cash flow (1,825) 1,984
New hire purchase agreements (594) (211)
Movement in net funds in the year (2,419) 1,773
Net funds at 1st January 2000 2,458 685
Net funds at 31st December 2000 39 2,458
The abridged financial information presented is based on the full accounts of
the group for the year ended 31 December 2000 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 2000 will be
despatched to the Shareholders on 18 April 2001.
The Annual General Meeting will be held on 10 May 2001 at 12 noon.
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