Preliminary Results
March 25 2004 - 9:33AM
UK Regulatory
RNS Number:9436W
North Midland Construction PLC
25 March 2004
NORTH MIDLAND CONSTRUCTION PLC
2003 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
2003.
Highlights from the results and the Chairman's Statement:-
Year ended Year ended
31 December 2003 31 December 2002
#'000 #'000
Turnover 82,294 78,035
Profit before Tax 2,932 2,815
Net Profit after Tax 2,033 1,944
Earnings per Share 18.73p 18.29p
Dividends 5.0p 4.5p
* Record year in terms of Turnover and Profitability
* Excellent results from North Midland Building Limited
* Nomenca has achieved dramatic growth during the year
* Healthy workload being carried forward into the New Year
* Proposed final dividend of 3.5p (2002 : 3.0p)
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 very gratifying to be able to report continued progress for the Group with
both record profits and turnover being achieved for the past year. The return
before tax of 3.5% on turnover bears very favourable comparison with our
competitors. All the constituent divisions of the Group traded profitably and
their detailed performances will now be expanded upon.
The contribution from the three divisions of the parent Company - Civil
Engineering, Highways and Utilities was marginally less than for 2002, due to a
diminished return from the Civils division. The cause of this being two
loss-making contracts secured in open tender and outside of the majority
partnership arrangements. On a positive note, the division continued to expand
geographically, utilizing the regional offices in Plymouth, Bristol,
Kidderminster and Warrington based on thetemplate that has been so successful
in the traditional heartlands of the Midlands and the North. Increased levels
of business have been secured in the power sector and two turnkey biomass
schemes for Powergen at Kingsnorth and Ironbridge, in partnership with Nomenca,
have provided a successful incursion into a new sector of operation. The water
industry continues to be the mainstay of the division and the division considers
itself favourably placed to increase its market penetration during the AMP4
renewal programme.
The Highways division, also, has managed to achieve its goal of organic growth,
improving both profit and turnover during the year. The division continues to
be a major player within the AmScott consortium for the Highways Agency Area 7
contract and several new clients have been secured during the year. The
division is now well established and, as a consequence, is being considered for
tenders of a far higher notation than was previously the case.
The Utilities market continues to be highly competitive, with volumes,
particularly in Telecommunications remaining low. However, the division still
remains the most profitable element of the parent Company and good progress has
been achieved by expanding into related areas such as CCTV. Term contracts have
been secured with most of the major companies in the sector, such as BT,
Marconi, NTL, Cable & Wireless and Kingston.
The greatest success story has been the rapid growth of the two subsidiaries -
North Midland Building Limited and Nomenca Limited. Both achieved record levels
of sales and profit. The building company has successfully delivered projects
across the country for an increasing range of blue-chip clients such as the MOD,
the Prison Service and various councils and private clients. It is currently
engaged on its biggest ever project for 569 student flats in Lincoln at a value
of #12.5m.
Nomenca Limited, also, continues to expand rapidly and its capability to deliver
turnkey projects in collaboration with the Civils division is a major platform
for the organic growth of the Group. The regional structure is being very
successfully developed, with the consequent increase in the client base. The
water industry is a key sector of business for Nomenca Limited, but the vision
is to be broadly based and the successful acquisition of work in the power
industry and the growth of the minor works operation, have been particularly
pleasing.
Organic growth has always been the mantra for the Group and 2003 has
successfully demonstrated that the Group has the core capability and financial
strength to achieve this. Both the parent Company and the subsidiaries are well
represented and respected in their various sectors and this, coupled with the
quality and commitment of the workforce, should enable this vision to be
maintained.
Shareholder value is obviously of key importance to your Board and this past
year has seen significant improvement in the share price after many years of
frustration. Your Board is totally committed to ensuring continuing
progression.
Sadly, John Knight, who has served the Company loyally over many years in both
the roles of Auditor and Non-Executive Director, had to retire during the year,
due to ill health. We are all indebted to him for his guidance and wisdom. We
welcome Steve Brown, ex Deputy Managing Director and Finance Director of Center
Parcs and a Non-Executive Director of various organisations, who brings a wealth
of experience in the business world, as his successor and wish him every
success.
The budgets for 2004 are exacting in their pursuit of increased profitability
and growth. The ongoing order book is very positive and the marketplace still
remains firm. On this basis, and reflecting the desire to maintain a good
yield, the Board proposes to raise the final dividend by 0.5p, making a total of
5.0p for the year.
Profit and Loss Account
Year ended Year ended
31 December 2003 31 December 2002
#'000 #'000
Group Turnover 82,294 78,035
Operating Profit 2,976 2,849
Net Interest (payable) (44) (34)
Profit before Taxation 2,932 2,815
Taxation (899) (871)
Group Profit after Taxation 2,033 1,944
Minority Interest (197) (152)
Profit for the Financial Year 1,836 1,792
Dividend (490) (441)
Retained Profit for the Financial Year 1,346 1,351
Earnings per share 18.73p 18.29p
Amount of actual final dividend on ordinary shares
proposed to the Shareholders on the register at the
close of business on 13 April 2004, which will be
paid on 20 May 2004. 3.50p 3.00p
Total dividend per ordinary share for the year ended
31 December 2003 5.00p 4.50p
The calculation of earnings per share is based on 9,800,000 shares (2002 :
9,800,000) being the number of shares in issue throughout the period and on a
profit of #1,836,000 (2002 : #1,792,000).
Balance Sheet
Year ended Year ended
31 December 2003 31 December 2002
#'000 #'000
Fixed Assets 4,011 3,335
Current Assets
Stocks 3,401 3,236
Debtors 23,133 18,655
Cash at bank and in hand 2,816 3,473
29,350 25,364
Creditors - amounts falling due within one year (21,679) (18,354)
Net Current Assets 7,671 7,010
Total Assets less Current Liabilities 11,682 10,345
Creditors - amounts falling due after more than one year (390) (352)
Provision for Liabilities and Charges (189) (356)
Net Assets 11,103 9,637
Capital and Reserves
Called up Share Capital 980 980
Capital Redemption Reserve 20 20
Profit and Loss Account 9,654 8,308
Shareholders' Funds 10,654 9,308
Minority Interests 449 329
11,103 9,637
Cashflow
Year ended Year ended
31 December 2003 31 December 2002
#'000 #'000
Reconciliation of operating profit to net cash inflow
from operating activities
Operating Profit 2,976 2,849
Depreciation 986 867
(Profit) on sale of tangible fixed assets (87) (84)
(Decrease) in reinstatement reserve (161) (116)
(Increase)/Decrease in stocks (165) 414
(Increase) in debtors (4,478) (2,285)
Increase in creditors 2,925 3,525
Net cash Inflow from operating activities 1,996 5,170
Cash Flow Statement
Net cash Inflow from operating activities 1,996 5,170
Returns on investment and servicing of finance (44) (34)
Taxation (628) (708)
Capital expenditure (969) (404)
Equity dividends paid (441) (392)
Equity dividends paid to minority shareholders (77) (39)
Cash Inflow before use of liquid resources and financing (163) 3,593
Financing - (decrease) in debt (494) (538)
(Decrease)/Increase in cash for the year (657) 3,055
Reconciliation of net cash flow to movement in net funds
(Decrease)/Increase in cash for the period (657) 3,055
Cash outflow from decrease in hire purchase 494538
Change in funds resulting from cash flow (163) 3,593
New hire purchase agreements (606) (512)
Movement in net funds in the year (769) 3,081
Net funds at 1 January 2003 2,775 (306)
Net funds at 31December 2003 2,006 2,775
The abridged financial information presented is based on the full accounts of
the Group for the year ended 31 December 2003, 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 2003 will be
despatched to the Shareholders on 23 April 2004.
The Annual General meeting will be held on 20 May 2004 at 12 noon.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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