RNS Number:6217D
Parkwood Holdings PLC
11 September 2007
Parkwood Holdings plc
11 September 2007
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2007
Parkwood Holdings plc, the support services group, is pleased to announce its
interim results for the 6 months ended 30 June 2007.
Financial highlights:
* Revenues rose by 12% to #51.2m (2006: #45.7m)
* Operating profit increased by 27% to #1.45m (2006: #1.14m)
* Profits before tax rose by 3% to #1.05m (2006: #1.03m)
* Earnings per share increased to 3.6p, up 9% from last year (2006: 3.3p)
* Proposed dividend of 1.3p (2006: 1.1p) payable to shareholders on 12
October 2007
* Group order book increased by 12% to #429m (2006: #384m revised*)
Operating highlights:
* Purchase of the remaining equity and subordinated debt in the SPC
responsible for the MOD Defence Animal Centre at Melton Mowbray
* Refinancing of the Boxwood Leisure SPC was completed in early July
generating cash of #2.1m
* Formation of Verdia Horticulture with the signing of a joint venture
agreement with TEG Environmental plc
* The June 2006 order book has been restated in line with the method used to
calculate the position at the end of December 2006 and includes only contractual
income on existing contracts to a ten-year horizon.
Tony Hewitt, Executive Chairman of Parkwood Holdings, commented:
"Parkwood has had a successful six months in the period to 30 June 2007 with
good progress in both the Glendale and Parkwood Leisure divisions.
"Parkwood's performance remains in line with market expectations for the full
year when revenues are expected to exceed #100 million for the first time. Next
year's order book is already largely secured and this should result in almost
double-digit sales growth in 2008."
For further information, please contact:
Tony Hewitt Executive Chairman 01772 627111
Terry Bowman Group Finance Director 07825 607358
Neil Baldwin Brewin Dolphin Securities Limited 0113 241 0126
Reg Hoare/Miranda Good Smithfield 020 7360 4900
Information on Parkwood Holdings plc can be accessed via the company's website
at
www.parkwood-holdings.co.uk
Notes for Editors:
Parkwood Holdings plc specialises in providing outsourced and support services,
predominantly to the public sector across England and Wales under long term
contracts. Its four main areas of operation are as follows:
Glendale. Provides amenity horticulture, grass cutting, arboriculture and care of sports
pitches, parks and open spaces. The division also includes golf course
management, green waste recycling, environmental consultancy and horticulture.
Parkwood Leisure. Manages a diverse range of leisure facilities, including swimming pools,
sports halls, gyms, health suites and catering operations.
Parkwood Projects. Undertakes PFI, PPP and similar bids on behalf of joint ventures and the
Group. Parkwood PFI is also responsible for project management of contracts
and the management of other funds such as the lifecycle funds associated with
the project agreement.
Healthcare. A nursing agency and an ambulance and patient transport business, Parkwood
Healthcare deals both with the NHS and the private sector.
Parkwood Holdings Plc
Interim Report 2007
Chairman's Statement
Parkwood has had a successful six months in the period to 30 June 2007 with good
progress in both the Glendale and Parkwood Leisure divisions. Significantly,
after a partnership of almost ten years, the Group purchased the remaining
equity and subordinated debt in the Special Purpose Company ("SPC") responsible
for the MOD Defence Animal Centre at Melton Mowbray. In early July the
refinancing of the Boxwood Leisure SPC was completed generating cash of #2.1
million for the Group and I was also pleased to announce the formation of Verdia
Horticulture with the signing of a joint venture agreement with TEG
Environmental plc. Verdia will be seeking to establish several in-vessel
composting facilities at locations around the country.
Group Results
Revenues for the period increased by 12% to #51.2 million (2006: #45.7 million),
and profit before tax amounted to #1.05 million (2006: #1.03 million).
Operating profit increased to #1.37 million (2006: #0.97 million). The Group's
forward order book at the period end was #429 million compared to #384 million
(revised), an increase of 12% compared with the same time a year earlier.
The Board is pleased to announce an increase in the dividend for the period to
1.3p per share (2006: 1.1p per share) payable on 12 October 2007 to all
shareholders on the register on 21 September 2007.
Board and Management
Terry Bowman, who acted in an interim capacity as Group Finance Director at the
beginning of the year, was appointed to this position and joined the Board on 2
April 2007. Otherwise there was no change in the composition of the Board
during the period.
Glendale
Glendale's revenue for the period was up 13% to #26.8 million (2006: #23.7
million) and half year profit increased by 37% to #0.67 million (2006: #0.49
million) in line with expectations. This was despite being affected by the wet
weather in June, which kept some golfers at home.
Glendale's grounds management business continued its impressive 100% record of
retaining existing contracts; re-winning contracts with the Metropolitan
Boroughs of Bradford and Manchester and with Surrey County Council and Nuneaton
& Bedworth Borough Council. Warwick District Council also extended the term of
Glendale's parks and grounds maintenance contract for a further five years.
The period also saw the expansion of Glendale into Scotland with the acquisition
of Landscape Construction (Scotland) Limited at the end of June. This business
is currently seeking a new base for future growth. In the south of England,
Coblands, the nursery and horticultural business, opened its first retail garden
centre near Reading in February and Glendale Golf took over the running of the
David Lloyd golf course at Airlinks near Heathrow in April.
Glendale's senior management team was strengthened with the appointment of Steve
Yarwood as Finance Director in July.
Parkwood Leisure
Parkwood Leisure's revenue in the first half increased by 14% to #20.4 million
(2006: #17.9 million) and profits for the period were #1.0 million (2006: #0.9
million), an increase of 11%.
The first half-year has seen the division experience considerable organic growth
in its traditional local authority market. In April Parkwood Leisure took over
the running of two leisure centres and other sports facilities from Kettering
Leisure Trust who had been operating them on behalf of Kettering Borough
Council. In the same month the newly built Dereham Leisure Centre in Norfolk
opened for business.
Following the half-year end, on 1 July Parkwood Leisure commenced a new contract
with West Berkshire District Council. This ten-year contract with an existing
client now includes three additional leisure facilities along with the two
centres originally managed by the company. Then, at the beginning of August,
five centres at Rushcliffe, near Nottingham transferred to the company. In all
Parkwood Leisure has welcomed an additional 700 staff in the year to date. This
new business has added some #7 million of annualised revenues and #91 million to
the division's order book, which now stands at #248 million.
Parkwood Health & Fitness, with three private sector clubs, commenced business
in 2006. At the beginning of the year it had 1,900 members, which increased to
2,900 members by 30 June, and a further 300 by the end of July. These clubs are
expected to come into profit on a monthly basis by the end of the year.
Parkwood Project Management
Parkwood Project Management (Projects) reported revenues totalling #1.1 million
(2006: #0.8 million) in the period and a profit of #0.2 million (2006: #0.4
million). The reduction in profit compared to 2006 reflects the fact that only
one major project completed in the period compared to two in the same period of
last year.
Preferred bidder status was, however, confirmed on three projects in the first
half-year. February saw the success of a bid with Dignity plc, the UK's largest
provider of funeral related services, at Rotherham Metropolitan Borough Council.
Managed by Projects the contract will see Dignity build and operate a new
crematorium in addition to operating an existing crematorium, whilst Glendale
will provide the grounds management service for all the cemeteries within the
Borough. Two design, build, operate and maintain (DBOM) leisure contracts also
reached preferred bidder stage with Portsmouth City Council and Cherwell
District Council in Oxfordshire. These contracts will be operated by Parkwood
Leisure when they reach financial close, which is projected for the end of the
year. A further project management contract for a new swimming pool called
Wavelengths in the London Borough of Lewisham also commenced in the period.
Significantly, in May, after a partnership of nearly ten years, Projects
purchased Innisfree M&G PPP LP's 78% shareholding and subordinated debt in the
SPC responsible for managing the Defence Animal Centre (DAC) at Melton Mowbray,
Leicestershire for #0.8 million and settled an inter company loan of #1.6
million on completion. The SPC is now a wholly owned subsidiary of Projects.
At the beginning of July Projects refinanced the senior debt in Boxwood Leisure,
the SPC responsible for the provision of leisure facilities in the London
Borough of Bexley. The Group received #1.8 million in cash from the refinancing
and #0.3 million from the repayment of part of its subordinated debt investment.
Parkwood Healthcare
With losses continuing in the Patient Transport Services (PTS) business of
Parkwood Healthcare as a result of ongoing difficulties with a contract with
North Staffordshire University Hospital Trust, a review of the business took
place after the managing director left at the end of February and negotiations
are underway to sell this part of the Parkwood Healthcare business.
The Nursing Agency section of Parkwood Healthcare is performing well in London
and the Bishop's Stortford office has moved to new premises. Market research
has indicated that new opportunities exist in the healthcare market and the
opening up of general medical service provision to social enterprises, charities
and the private sector may present opportunities for Parkwood Healthcare for the
future. Overall the business made a loss of #0.39 million (2006: loss #0.12
million) on revenue of #3.09 million (2006: #2.79 million) in the period.
Outlook
Parkwood's performance remains in line with market expectations for the full
year when revenues are expected to exceed #100 million for the first time. This
is despite some difficult trading conditions as a result of the wet summer.
Operating margins have improved despite the losses in the PTS business and the
longer than expected time required for the private health and fitness clubs to
come into profit. Next year's order book is already largely secured and this
should result in almost double-digit revenue growth in 2008.
A W Hewitt
Executive Chairman
11 September 2007
Financial Review
The Group's trading performance in the first six months saw profit before tax
increase by 3%, whilst operating profit increased by 41%, the difference
resulting from increased financing costs. These arise from the purchase of
IMDAC Limited (the parent company of the SPC responsible for the management of
the DAC), the consolidation of the non-recourse debt within that SPC and the
cost of the debt funding for the Salisbury health & fitness club and the Dereham
Leisure Centre building projects, where interest had previously been capitalised
in accordance with Group Accounting Policies until completion of construction.
These factors increased interest costs by #381,000 in the half year, thus
restricting the growth in pre-tax profit. The Group's interest costs were 3.3
times covered in the period (2006: 29 times).
The Group continues its investment in PFI/PPP ventures with the consequent
impact on the balance sheet. The following table shows a summary of the Group's
balance sheet at 30 June 2007, analysed between the main trading assets and
recourse liabilities and those of the consolidated SPC's, which hold the PFI/PPP
investments. The assets and liabilities, including long-term debt, within the
SPC's are non-recourse to the Group.
Summary Group Balance Sheet Group SPC's Total Total
(recourse) (non-recourse)
30 Jun 07 31 Dec 06 30 Jun 07 31 Dec 06 30 Jun 07 31 Dec 06
#000 #000 #000 #000 #000 #000
Non-current assets 18,695 12,385 26,817 15,184 45,512 27,569
Investments in Joint Ventures and
Associate 1,176 1,177 (1,176) (871) - 306
Total non-current assets 19,871 13,562 25,641 14,313 45,512 27,875
Current assets
Inventories and debtors 19,221 14,021 843 656 20,064 14,677
Cash at bank and in hand 1 994 1,259 2,632 1,260 3,626
19,222 15,015 2,102 3,288 21,324 18,303
Current liabilities (22,648) (17,267) (1,300) (3,620) (23,948) (20,887)
Net current (liabilities)/assets (3,426) (2,252) 802 (332) (2,624) (2,584)
Non current liabilities
Bank loans (4,093) (1,103) (27,850) (15,014) (31,943) (16,117)
Other long term liabilities (5,088) (4,366) (236) - (5,324) (4,366)
Net assets 7,264 5,841 (1,643) (1,033) 5,621 4,808
Net debt 10,665 4,778 26,187 12,387 36,852 17,165
Gearing 147% 82% 656% 357%
The investment in PFI/PPP projects has seen total gearing increase to 656% from
357% at December and 284% 12 months earlier. Of the #13.8 million increase in
non-recourse net debt in the period, #8.9 million related to the consolidation
of the debt now carried on the balance sheet of the SPC owned by IMDAC Limited,
which had previously been accounted for as an associate.
The level of recourse gearing has increased to 147% from 82% in December and 57%
in June 2006. The main reasons for this increase are the debt funding related
to the purchase of IMDAC Limited and further HP and lease finance entered into
as part of the continued growth of the business. Working capital funding also
increased at the end of the period by #2.4 million. Had the Boxwood PFI project
completed at the end of June, recourse gearing would have been 118%.
Parkwood Holdings Plc
Unaudited Consolidated Income Statement
Six months ended 30 June 2007
Year ended
Six months ended 31 December
30 June (audited)
Note (unaudited) (unaudited) 2006
2007 2006 #000
#000 #000
Continuing operations
Revenue 52,343 46,846 94,968
Less: share of joint ventures' revenue (1,137) (1,102) (2,223)
Group revenue - continuing operations 3 51,206 45,744 92,745
Cost of sales (37,266) (32,747) (65,927)
Gross profit 13,940 12,997 26,818
Administrative expenses (12,493) (11,859) (24,243)
1,447 1,138 2,575
Share of results after tax of associate (16) 16 27
Share of results after tax of joint ventures (57) (189) (356)
Operating profit 1,374 965 2,246
Investment income 93 94 515
Finance costs (414) (33) (231)
Profit before income tax 1,053 1,026 2,530
Income tax expense 4 (372) (393) (865)
Profit for the period attributable to equity 681 633 1,665
shareholders
Pence per Pence per Pence per
Earnings per share share share share
Basic 6 3.6p 3.3p 8.8p
Diluted 6 3.6p 3.3p 8.7p
There were no discontinued operations in the period.
Parkwood Holdings Plc
Consolidated balance sheet as at 30 June 2007
30 June 30 June 31 December
2007 2006 2006
(unaudited) (unaudited) (audited)
#000 #000 #000
Non-current assets
Goodwill 651 849 708
Intangible asset 2,795 76 58
Property, plant and equipment 40,729 16,507 26,412
Investments in joint ventures and associate - 510 306
Derivative financial instrument 1,032 - 187
Deferred tax asset 305 2,304 204
45,512 20,246 27,875
Current assets
Inventories 2,945 2,632 2,698
Trade and other receivables 17,119 15,951 11,979
Cash 1,260 3,329 3,626
21,324 21,912 18,303
Total assets 66,836 42,158 46,178
Current liabilities
Trade and other payables 19,967 21,881 18,071
Tax liabilities 453 1,159 75
Obligations under finance leases 1,482 971 1,250
Bank overdrafts 1,448 - -
Bank loans 598 99 1,491
23,948 24,110 20,887
Net current liabilities (2,624) (2,198) (2,584)
Non-current liabilities
Bank loans 31,943 8,088 16,117
Retirement benefit obligations 1,435 3,307 1,435
Long-term provisions and deferred income 1,012 2,095 998
Obligations under finance leases 2,641 1,854 1,933
Deferred tax liability 236 - -
Total non-current liabilities 37,267 15,344 20,483
Net assets 5,621 2,704 4,808
Equity
Share capital 196 196 196
Share premium account 2,227 2,227 2,227
Investment in own shares (457) (146) (339)
Capital redemption reserve 401 401 401
Hedging reserve 608 - -
Retained earnings 2,644 26 2,321
Total shareholders' equity 5,619 2,704 4,806
Minority interest in equity 2 - 2
Total equity 5,621 2,704 4,808
Parkwood Holdings Plc
Consolidated statement of recognised income and expense
For the six months ended 30 June 2007
Six months ended
30 June 30 June
2007 2006
#000 #000
Profit for the period 681 633
Cash flow hedges (net of tax) 608 -
Total recognised income for the period 1,289 633
All recognised income and expense is attributable to the equity holders of the
parent.
Parkwood Holdings Plc
Group cash flow statement
For the six months end 30 June 2007
Six months ended 30 June Year ended
31 December
Note 2007 2006 2006
(unaudited) (unaudited) (audited)
#000 #000 #000
Net cash (used in)/ generated from operating activities 8 (520) 4,578 6,882
Investing activities
Interest received 277 85 328
Dividends received from associate 111 - -
Proceeds on disposal of property, plant and equipment 70 17 38
Purchases of property, plant and equipment (6,299) (7,146) (17,499)
Subordinated debt repaid by joint ventures 2 - -
Sales of own shares by employee benefit trust 12 8 15
Acquisition of treasury shares - - (103)
Acquisition of shares by employee benefit trust (127) - (94)
Acquisition of subsidiaries (net of cash acquired) (1,716) (174) (89)
Cash acquired with minority interest - - 2
Net cash used in investing activities (7,670) (7,210) (17,402)
Cash flows from financing activities
Interest paid (258) (36) (231)
Dividends paid (358) (285) (494)
Repayments of obligations under finance leases (691) (611) (1,397)
New recourse bank loans raised 2,550 5,537 2,386
New non-recourse bank loans raised 3,342 - 12,616
Repayment of recourse bank loans (45) - (90)
Repayment of non-recourse bank loans (164) - -
Net cash generated from financing activities 4,376 4,605 12,790
Net (decrease)/increase in cash and cash equivalents (3,814) 1,973 2,270
Cash and cash equivalents at beginning of period 3,626 1,356 1,356
Cash and cash equivalents at end of period (188) 3,329 3,626
Comprising:
Cash 1,260 3,329 3,626
Bank overdraft (1,448) - -
(188) 3,329 3,626
Parkwood Holdings Plc
Notes to the interim financial report
Six months ended 30 June 2007
1. General information
The financial information for the six months ended 30 June 2007 does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985 and has not been audited. No statutory accounts for the period have been
delivered to the Registrar of Companies.
The financial information in respect of the year ended 31 December 2006 has been
produced using extracts from the statutory accounts prepared under IFRS for this
period. The statutory accounts for this period have been filed with the
Registrar of Companies. The auditors' report on these accounts was unqualified
and did not contain a statement under Sections 237 (2) or (3) of the Companies
Act 1985 which deal respectively with the maintaining of proper accounting books
and records and the availability of information to the auditors.
The financial information presented on pages 6 to 15 has been prepared in
accordance with the Listing Rules of the Financial Services Authority and with
IFRS, including International Accounting Standards (IAS) and interpretations
issued by the International Accounting Standards Board (IASB) and its
committees.
2. Accounting policies
The interim financial statements have been prepared on the basis of the
accounting policies set out in the Group's statutory accounts for the year ended
31 December 2006.
The interim financial statements have been approved by the Board and have not
been audited by the auditors.
Parkwood Holdings Plc
Notes to the interim financial report (continued)
Six months ended 30 June 2007
3. Business segments
For management purposes, the Group is currently organised into four operating
divisions - Glendale, Parkwood Leisure, Parkwood Healthcare and Project
Management. These divisions are the basis on which the Group reports its primary
segment information.
Principal activities are as follows:
Glendale Provides amenity horticulture, grass cutting,
arboriculture and care of sports pitches, parks and open spaces. The division
also includes golf course management, waste recycling, environmental consultancy
and horticulture.
Parkwood Leisure Manages a diverse range of leisure facilities, including
swimming pools, sports halls, gyms, health suites and catering operations.
Parkwood Healthcare A nursing agency and patient transport business. Parkwood
Healthcare deals both with the NHS and the private sector.
Project Management Undertakes PFI, PPP and similar bids on behalf of joint
ventures and the Group. Parkwood Projects is also responsible for project
management of contracts and the management of other funds such as the lifecycle
funds associated with the project agreement
An analysis of the Group's revenue is as follows:
Six months to June Six months to June
Continuing operations 2007 2007 2006 2006
% #000 % #000
Provision of services to Local Authorities - Grounds management 43.7% 22,382 42.4% 19,396
Horticultural revenue 4.3% 2,190 5.0% 2,293
Golf course management, including retail revenue 4.2% 2,183 4.5% 2,038
Total Glendale 52.2% 26,755 51.9% 23,727
Provision of private leisure facilities 1.6% 795 - -
Provision of leisure services to Local Authorities 38.2% 19,573 39.0% 17,854
Total Leisure 39.8% 20,368 39.0% 17,854
Provision of patient transport services 4.6% 2,377 4.5% 2,046
Nursing agency revenue 1.4% 708 1.6% 744
Total Healthcare 6.0% 3,085 6.1% 2,790
Bid and project management fees ("Project Management") 2.2% 1,104 1.8% 829
Service charges made by PFI companies 3.1% 1,594 1.2% 544
Other (Including inter-segment revenue elimination) (3.3%) (1,700) - -
Total revenue 100.0% 51,206 100.0% 45,744
Parkwood Holdings Plc
Notes to the interim financial report (continued)
Six months ended 30 June 2007
3. Business Segments (continued)
Recourse Non-recourse Total
Project PFI/PPP
Six months ended Glendale Leisure Healthcare Management Other Companies Consolidated
30 June 2007 2007 2007 2007 2007 2007 2007 2007
#000 #000 #000 #000 #000 #000 #000
External revenue 26,449 19,410 3,085 668 - 1,594 51,206
Inter-segment revenue 306 958 - 436 (1,700) - -
Revenue 26,755 20,368 3,085 1,104 (1,700) 1,594 51,206
Segment operating profit 854 1,071 (306) 181 (467) 114 1,447
/ (loss)
Share of results of - - - - - (16) (16)
associate
Share of results of - - - - - (57) (57)
joint ventures
Operating profit / 854 1,071 (306) 181 (467) 41 1,374
(loss)
Investment income - - - 86 - 7 93
Interest expense (187) (65) (83) (91) 203 (191) (414)
Profit / (loss) before 667 1,006 (389) 176 (264) (143) 1,053
tax
Recourse Non-recourse Total
Project PFI/PPP
Six months ended Glendale Leisure Healthcare Management Other Companies Consolidated
30 June 2006 2006 2006 2006 2006 2006 2006 2006
#000 #000 #000 #000 #000 #000 #000
External revenue 23,727 17,854 2,790 829 - 544 45,744
Inter-segment revenue - - - - - - -
Revenue 23,727 17,854 2,790 829 - 544 45,744
Segment operating profit 651 844 (122) 306 (521) (20) 1,138
/ (loss)
Share of results of - - - - - 16 16
associate
Share of results of - - - - - (189) (189)
joint ventures
Operating profit / 651 844 (122) 306 (521) (193) 965
(loss)
Investment income - - - 85 9 - 94
Interest expense (157) 65 (1) - 60 - (33)
Profit / (loss) before 494 909 (123) 391 (452) (193) 1,026
tax
Non-recourse companies are those companies in the Group where the assets and
liabilities of the company are restricted by contractual agreements and the
associated long-term debt is non-recourse to the Group. The Group has certain
performance cross guarantees to those companies arising from the Group
subsidiaries' service and operating contracts.
Parkwood Holdings Plc
Notes to the interim financial report (continued)
Six months ended 30 June 2007
4. Tax
Corporation tax for the interim period to 30 June 2007 is charged at 33% (2006:
33%) of profit excluding joint ventures and associates representing the best
estimate of the effective rate of annual corporation tax expected for the full
financial year.
5. Dividends
Six months Six months Year ended
ended 30 ended 30 31 December
June June
2007 2006 2006
#000 #000 #000
Final 2006 paid May 2007 1.9p per share 358 - -
Final 2005 paid May 2006 1.5p per share - 285 285
Interim 2006 paid October 2006 1.1p per share - - 209
358 285 494
Following the balance sheet date, the Board of Directors has approved a dividend
of 1.3p per share (2006: 1.1p) payable on 12 October 2007 to all shareholders on
the register on 21 September 2007.
6. Earnings per share
Earnings per share relate to continuing operations and have been calculated on
earnings for the period divided by the weighted average number of ordinary
shares in issue of 18.84 million (December 2006: 18.99 million; June 2006: 19.00
million).
7. Acquisition of subsidiaries
On 15 May 2007, the Group acquired the entire issued share capital of IMDAC
Limited. As a result of this transaction the group now owns 100% of the issued
share capital of DAC Support Services Limited and its 100% owned subsidiary
Realm Services (DAC) Limited ("Realm"). Realm is a Special Purpose Company
formed in 2002 to finance, design, build, operate and maintain facilities at the
Defence Animal Centre for the Ministry of Defence under a Private Finance
Initiative (PFI) agreement, which runs until November 2026. The fair value of
net liabilities acquired was #681,000 and the fair value of consideration paid
was #1,754,000. The contract was identified as an intangible asset and is
stated at #2,435,000 at the date of acquisition, therefore no goodwill has been
recognised on the acquisition. The group also acquired 77.78% of the
subordinated debt issued by Realm at par for #661,000, taking the Group's
investment in subordinated debt in Realm to #850,000.
On 29 June 2007, the Group completed the acquisition of the entire issued share
capital of Landscape Construction (Scotland) Limited, which is a company
involved in soft landscaping for construction industry customers. The
provisional fair value of net assets acquired was #45,000 and the provisional
fair value of consideration paid (including costs of acquisition) was #52,000,
resulting in provisional goodwill of #7,000. Provisional consideration of
#5,000 is deferred and dependent on the final valuation of net assets acquired.
Parkwood Holdings Plc
Notes to the interim financial report (continued)
Six months ended 30 June 2007
8. Net cash from operating activities
Six months ended Six months ended Year
30 June 30 June ended
31 December
2007 2006 2006
#000 #000 #000
Operating profit 1,374 965 2,246
Share of results of joint ventures after taxation 57 189 356
Share of results of associate after taxation 16 (16) (27)
Depreciation of property, plant and equipment 1,722 1,212 2,649
(Gain)/loss on disposal of property, plant and equipment (22) 7 43
Net impairment of goodwill 64 14 156
Amortisation of intangible assets 43 29 47
Decrease in provisions (238) (207) (328)
Operating cash flows before movements in working capital 3,016 2,193 5,142
Increase in inventories (recourse) (155) (315) (308)
Increase in receivables (recourse) (3,842) (5,524) (1,897)
Increase in payables (recourse) 2,366 5,598 1,944
Decrease/(increase) in receivables (non-recourse) 434 (665) (251)
(Decrease)/increase in payables (non-recourse) (2,337) 3,419 2,397
Cash (used in)/generated by operations (518) 4,706 7,027
Income taxes paid (2) (128) (145)
Net cash (used in)/generated from operating activities (520) 4,578 6,882
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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