TIDMVP.
Press Release 7 June 2011
Vp plc
("Vp" or the "Group")
Final Results
Vp plc, the equipment rental specialist, today announces its Final Results for
the year ended 31 March 2011.
Highlights
* Revenues increased by 5% to GBP141.0 million (2010: GBP134.2 million)
* Profit before amortisation, exceptional items and tax of GBP13.8 million
(2010: GBP16.0 million)
* Basic earnings per share of 23.42 pence (2010: 24.68 pence)
* Proposed final dividend of 7.7 pence per share to maintain last year's
full year dividend of 10.8 pence
* Net debt reduced by GBP7.8 million to GBP40.5 million
* Solid balance sheet with strong operational cashflows
Jeremy Pilkington, Chairman of Vp plc, commented:
"I am delighted to report a very satisfactory set of results given the current
trading environment and the continuing recessionary pressures felt in many of
our markets. The Group enters the new financial year with a strong balance
sheet and I have every confidence that we will continue to create opportunities
and deliver satisfactory business performance over both the short and longer
term."
- Ends -
Enquiries:
Vp plc
Jeremy Pilkington, Chairman Tel: +44 (0) 1423 533 405
jeremypilkington@vpplc.com
Neil Stothard, Group Managing Director Tel: +44 (0) 1423 533 445
neil.stothard@vpplc.com
Allison Bainbridge, Group Finance Director Tel: +44 (0) 1423 533 445
allison.bainbridge@vpplc.com www.vpplc.com
Media enquiries:
Abchurch Communications
Sarah Hollins / Mark Dixon Tel: +44 (0) 20 7398 7729
mark.dixon@abchurch-group.com www.abchurch-group.com
CHAIRMAN'S STATEMENT
I am delighted to report a very satisfactory set of results given the current
trading environment and the continuing recessionary pressures felt in many of
our markets. Whilst it is never less than disappointing to report a reduction
in profitability, I believe the Group should be very proud of these results.
Revenues increased by 5% to GBP141 million, reversing last year's trend, as we
successfully recruited new customers and business. Profit before tax,
exceptionals and amortisation reduced to GBP13.8 million compared to GBP16.0 million
last year. This pressure on margins arose principally from changes within our
activity mix but there was inevitably some pricing sensitivity in certain
markets, though we did see improvement to some hire rates in the second half.
Basic earnings per share were 23.42 pence (2010: 24.68 pence).
Rigorous cash management has enabled us to invest GBP24.2 million in fleet
expansion and renewals, whilst simultaneously reducing debt by 16% to GBP40.5
million. The prudence and robustness of our accounting policies has once again
protected us from the balance sheet write downs deemed necessary by some of our
peer group.
In the light of these robust results, your Board is recommending the maintenance
of the final dividend at 7.7 pence, thus maintaining the full year dividend of
10.8 pence. Subject to shareholders' approval at the Annual General Meeting in
September, it is proposed to pay the dividend on 3 October 2011 to members
registered as of 2 September 2011.
I am very pleased to welcome to the Board, Allison Bainbridge, who joined as
Group Finance Director in March. Allison most recently held a number of senior
financial positions within Kelda Group, the parent company of Yorkshire Water,
latterly as Group Finance Director. Allison is a proven financial leader with a
breadth of experience who is already making a valuable contribution to the
Group.
This year has seen pressures and difficult markets faced by many parts of the
Group, but these results reflect the benefit of the strong market positions we
hold and the resilience of our strength through diversity business model.
The new financial year will undoubtedly present us with further challenges and
surprises but it has started well, and we have every confidence that we will
continue to create opportunities and deliver satisfactory business performance
over both the short and longer term.
Jeremy Pilkington
Chairman
7 June 2011
BUSINESS REVIEW
OVERVIEW
Vp plc is a specialist rental business providing products and services to a
diverse range of markets including civil engineering, rail, oil and gas
exploration, construction, outdoor events and industry, primarily within the UK,
but also overseas.
The year just ended saw little overall improvement in trading conditions, but
against this difficult background the Group delivered another solid profit
performance. Strong cash generation allowed a further reduction in net debt in
the period, after absorbing an increased capex spend in support of specific
market opportunities particularly in the second half. The quality of the
performance is further underlined by the GBP7.3 million (9%) increase in
shareholder funds, in addition to the GBP4.5 million of dividends paid to
shareholders in the year.
Year ended Year ended
31 March 2011 31 March 2010
Revenue GBP141.0 million GBP134.2 million
Operating Profit before amortisation and
exceptional items GBP16.5 million GBP18.6 million
Investment in Rental Fleet GBP24.2 million GBP13.9 million
Operating margin 11.7% 13.9%
The benefit of having a diverse business mix was again demonstrated as certain
divisions progressed into recovery whilst others felt the impact of reduced
market demand. Improvements were experienced in the housebuilding and rail
sectors whilst subdued well testing demand in the oil and gas market and an
anticipated quieter first year of the AMP5 water programme impacted Airpac Bukom
and Groundforce respectively.
Revenues were 5% ahead at GBP141.0 million generating operating profits before
amortisation and exceptional items of GBP16.5 million, a reduction of 11%. The
change in the divisional mix of results led to a fall in operating margin from
13.9% to 11.7%, but these are still very good in the context of the market
environment and in comparison to our quoted peer group.
Despite relatively flat market conditions, the Group continues to innovate and
secure growth opportunities. We were particularly pleased to secure a five year
contract with Network Rail for the exclusive provision of rail plant services
and tool rental, an important business win for both Torrent Trackside and Hire
Station. The majority of the exceptional costs of GBP0.6 million in the year
relate to the headcount reductions on the Network Rail contract as we resized
the transferred activity to the required level of future operational support.
The excellent organic profit recovery within UK Forks, was supplemented at the
end of October 2010 with the acquisition of a customer's telehandler fleet
supported by a three year sole supply deal.
Capital expenditure on rental fleet increased by 74% to GBP24.2 million (2010:
GBP13.9 million). The pace of fleet investment increased in the second half and
included GBP3 million on the telehandler acquisition noted above, together with a
GBP4 million investment in fleet in support of the new Network Rail contract.
Over the course of the previous two years the Group pro-actively reduced the
size of its fleet in certain divisions. This process has slowed this year as
the fleet sizes began to balance with demand and utilisation levels started to
increase. As a result, sale proceeds on fleet reduced to GBP7.2 million (2010:
GBP8.7 million) but still generated profits on sale of GBP2.3 million. The
maintained quality of the fleet disposal margins demonstrate the robustness of
the fleet valuation and the appropriate nature of our depreciation policies.
GROUNDFORCE
Excavation support systems, specialist solutions and trenchless technology for
the water, gas, civil engineering and construction industries.
Year ended Year ended
31 March 2011 31 March 2010
Revenue GBP30.3 million GBP32.9 million
Operating Profit before amortisation and exceptional
items GBP6.7 million GBP9.2 million
Investment in Rental Fleet GBP3.8 million GBP3.5 million
Groundforce remained the Group's largest profit contributor and delivered
healthy margins, albeit on a lower turnover. This softening of income was
caused by three key elements; limited demand from the newly commenced AMP5
programme, a subdued construction and infrastructure market and a decline in
capital sales to the USA. These factors were generally anticipated and the
division responded accordingly.
The core shoring business experienced the anticipated reduction in activity from
AMP contracts and general construction. Infrastructure demand held up well as
did activity on the Olympic sites. Revenues from Europe continued to improve
and success was enjoyed on a number of large Civil Engineering projects
including in Sweden and Germany. The trading environment in the Republic of
Ireland remains tough but the business is well placed to secure work from those
key contractors that remain active. Despite the year being relatively quiet for
shoring, the prospects going forward remain positive for this high quality
business.
U Mole enjoyed a strong year, developing a market leading position in vacuum
excavation products, which complement its trenchless technology product range.
Despite a challenging market Piletec also performed well, managing fleet levels
carefully and consolidating its market leading position as a number of
competitors exited the market. The small Harbray Plant Hire acquisition
announced in May 2010 was successfully integrated within the division.
The establishment of an operational footprint in mainland Europe progressed,
with the opening of a new depot in Hanover in the final quarter of the financial
year.
Capital expenditure was marginally increased on the prior year and directed at
the replacement and realignment of the rental fleet.
The breadth of end markets served by Groundforce should enable some recovery in
activity in the coming year, helped by the AMP5 programme, general construction
demand and further progress within Europe.
UK FORKS
Rough terrain material handling equipment for industry, residential and general
construction.
Year ended Year ended
31 March 2011 31 March 2010
Revenue GBP10.8 million GBP10.6 million
Operating Profit before amortisation and exceptional
items GBP1.1 million GBP0.0 million
Investment in Rental Fleet GBP4.4 million GBP0.1 million
The UK Forks business enjoyed a much improved performance, reporting profits of
GBP1.1 million compared with a break even result in the prior year. A modest, but
sustained, recovery in house building demand together with the benefit of the
robust cost actions taken early in the downturn helped to improve margins. Hire
revenue grew by 21% reflecting this increased demand. The much reduced fleet
disposal programme delivered sale proceeds of GBP0.4 million (2010: GBP2.0 million)
and hence the relatively small net increase in total revenues year on year.
The revenue growth was delivered from both house building and general
construction markets. The overall numbers of telehandlers available in the UK
market shrank significantly during 2008 and 2009 as many surplus machines were
disposed of into overseas markets. We have gradually rebuilt the fleet over the
last 12 months and our historic, and continuing, focus on high quality service
delivery has seen the division secure increased market share. The Group's
financial strength enables the division to respond more quickly to new
opportunities within a market place where choice may have become more limited.
Whilst the business has suffered cost inflation on transport, fuel, spares and
capital purchases, we have also been able to secure some improvement to hire
rates in the period.
Capital investment in the fleet increased to GBP4.4 million in the year after
minimal spend last year. Within that investment is the acquisition of 150
telehandlers from one of our larger customers supported by a three year
exclusive hire arrangement.
The new financial year has commenced positively and we anticipate the
opportunity to grow the business further over the next 12 months.
AIRPAC BUKOM OILFIELD SERVICES
Equipment and service providers to the international oil and gas exploration and
development markets.
Year ended Year ended
31 March 2011 31 March 2010
Revenue GBP17.5 million GBP15.7 million
Operating Profit before amortisation and exceptional
items GBP2.7 million GBP3.9 million
Investment in Rental Fleet GBP1.3 million GBP4.6 million
Trading conditions proved challenging for Airpac Bukom during the year as the
anticipated global improvement in well test activity failed to materialise.
This affected performance in many of our regions, none more so than the North
Sea, where the number of exploration and appraisal wells operating in the final
quarter of 2010 was the lowest since 1999. Pleasingly since the year end,
activity levels have improved in this region.
Whilst the business delivered revenue of GBP17.5 million, 11% up on prior year, a
change in business mix, adverse currency exchange and contract timing
contributed to a reduced profit of GBP2.7 million.
The Pluto LNG project in Karratha, Western Australia continued during the year,
but behind schedule. The resultant delayed revenues should be secured in the
new financial year.
The Africa region weakened later in the year, being impacted by the social and
political unrest in a number of countries including Libya, Tunisia and Egypt.
The Middle East improved in the second half of the year with increasing
opportunities for our products in the region.
The business is well positioned to take advantage of an improving global well
testing market going forward. With an unrivalled operational footprint that
covers the major exploration areas worldwide and the recent strengthening of the
management team, the short to medium term prospects for the division are much
improved.
TORRENT TRACKSIDE
Suppliers of rail infrastructure portable plant and specialist services to
Network Rail, London Underground and their appointed contractor base.
Year ended Year ended
31 March 2011 31 March 2010
Revenue GBP14.9 million GBP10.6 million
Operating Profit before amortisation and exceptional
items GBP1.6 million GBP0.2 million
Investment in Rental Fleet GBP2.9 million GBP0.8 million
Torrent delivered an excellent recovery on the back of an improvement in
revenues from our key customer relationships and a full year benefit from the
cost reduction measures implemented in the prior year.
In December 2010, Torrent were awarded a five year contract to manage and
maintain Network Rail's portable plant fleet further cementing our credentials
as the provider of choice for the national rail infrastructure contractor base.
Torrent also secured material improvements in revenues from London Underground
activities, supported in part by the purchase of elements of the Jarvis Fastline
underground fleet from the administrator early in the year.
The rail industry remains dynamic, with further change expected following the
appointment of new senior management at Network Rail and the anticipated impact
of the McNulty report.
Capital expenditure in the year increased significantly to GBP2.9 million in
support of new opportunities and increased demand from our existing rail
infrastructure contractor customer base.
As the market leading portable rail plant specialist, Torrent remains very well
positioned to demonstrate value added services to the sector during this period
of further change.
TPA
Portable roadway systems, primarily to the UK market, but also in mainland
Europe and the Republic of Ireland.
Year ended Year ended
31 March 2011 31 March 2010
Revenue GBP14.0 million GBP14.2 million
Operating Profit before amortisation and exceptional
items GBP1.4 million GBP2.2 million
Investment in Rental Fleet GBP1.5 million GBP0.5 million
TPA's revenues were similar to the prior year at GBP14.0 million, but the profits
were adversely impacted by a change in the mix of business and rising variable
costs, particularly in transportation, both in the UK and Germany.
In the UK, the outdoor events sector was stable with a consistent demand from
key events and a number of longer term agreements were secured. Whilst
construction related demand continued at a subdued level, the rail sector was
more buoyant. The transmission sector activity arising from our preferred
supplier status with the National Grid alliance contributed well to the overall
performance of the business in the year.
In Germany, after a satisfactory start to the year, revenue softened in the last
quarter, due to extreme weather conditions and lower demand from the energy
sector. The region continues to develop, with local management expanding the
operational support structure and implementing robust systems and procedures.
We continue to develop new relationships within the European customer base.
The division was awarded BS14001 (environmental) and BS8901 (sustainable
management system for events) accreditations during the year. The latter is a
prerequisite for suppliers to the tier 1 contractors at the 2012 Olympics.
Investment in the rental fleet increased on prior year, primarily due to the
purchase of plastic pitch covers for outdoor stadia events both in the UK and in
Europe.
The outlook for 2011/12 is positive, with an ongoing requirement from the
National Grid and a steady build up to the Olympics adding to demand. We
believe construction will be stable and Europe should provide further growth
opportunities.
HIRE STATION
Small tools and specialist equipment for industry and construction.
Year ended Year ended
31 March 2011 31 March 2010
Turnover GBP53.5 million GBP50.1 million
Operating Profit before amortisation and exceptional
items GBP3.0 million GBP3.2 million
Investment in Rental Fleet GBP10.3 million GBP4.5 million
The Hire Station business delivered a strong result, despite the construction
market continuing to be soft throughout the year. After a challenging first
half, the second half saw a marked improvement, with activity in the final
quarter in particular being very encouraging.
Revenues of GBP53.5 million were 7% ahead of prior year with all Hire Station
businesses delivering growth. The profit result of GBP3.0 million was similar to
the prior year with the small reduction in margin influenced by an increase in
vehicle and fuel costs.
Capital expenditure of GBP10.3 million was more than double the previous year and
included almost GBP4 million to support the 5 year Network Rail contract win.
This contract commenced in March 2011 and therefore minimal revenues are
included in these reported numbers.
Headcount remained broadly static during the year and our low staff turnover
record remains a key factor in allowing us to deliver consistently high levels
of service to our customers.
The tools business has made good progress during the year maintaining a tight
control on the cost base but at the same time investing for growth. Several key
account wins in addition to Network Rail put us in a strong position for the
coming year. We have increased our geographical coverage with new branch
openings in Aberdeen, Port Talbot and Carlisle. We also took the opportunity to
relocate two of our larger branches, in Livingston and Southampton doubling the
operational capacity of these operations.
The specialist safety rental business, ESS Safeforce, had another strong year
delivering double digit revenue growth. We have made further inroads into the
petrochemical shutdown market securing some significant wins for the new
financial year. Additional training centres were added in Leeds and Runcorn and
another hire centre was established in South Wales to satisfy growing demand in
this area.
MEP continues to progress well with new branches in Aberdeen and Croydon opened
during the year. A planned opening in Southampton in the first quarter of the
new financial year will take the number of locations to nine. This provides
comprehensive coverage in most of the key markets in the UK and we have exciting
plans for this business as we seek to deliver further growth.
The Climate Hire business had a similar year to the prior year. The poor summer
hampered demand for air conditioning units and coolers, but the winter was very
busy as a result of the extreme temperatures in early November 2010 and this
elevated demand continued well into February.
The business has weathered the last two years better than most tool hirers and
delivered profits when others have struggled. This is a testament to the
quality of the business. The key challenge going forward is to deliver growth
in what is still a very fragmented market but with better quality margins. We
have plenty of initiatives in progress within the business and are optimistic
about prospects for the coming year.
PROSPECTS
The Group enjoyed a generally upbeat finish to the financial year and despite
the extended holiday period in April, the new financial year has continued in a
similar vein. We approach the new financial year positively and though we
expect that market conditions will remain no better than stable, we are
confident that opportunities are available to all of our divisions. We
accelerated investment in the rental fleet in the second half of the year and we
expect to continue that trend in support of further opportunities going forward.
We have emerged from the downturn in better financial shape than many in our
sector. We expect this to provide competitive advantage in securing market
share, as we are able to contemplate investment where others may not.
We are optimistic about the future prospects for the Group and look forward to
delivering further tangible progress for shareholders in the coming year.
Neil Stothard
Group Managing Director
7 June 2011
Consolidated Income Statement
for the year ended 31 March 2011
Note 2011 2010
GBP000 GBP000
----------------------
Revenue 1 140,959 134,163
Cost of sales (106,461) (99,350)
----------------------
Gross profit 34,498 34,813
Administrative expenses (19,577) (17,869)
----------------------
+---------+ +--------+
Operating profit before amortisation and exceptional 1 | 16,472| | 18,610|
items | | | |
| | | |
Amortisation and impairment of intangibles | (962)| | (1,323)|
Exceptional items 2 | (589)| | (343)|
+---------+ +--------+
----------------------
Operating profit 14,921 16,944
Net financial expense (2,687) (2,605)
----------------------
+---------+ +--------+
Profit before amortisation, exceptional items and | 13,785| | 16,005|
taxation | | | |
| | | |
Amortisation and impairment of intangibles | (962)| | (1,323)|
Exceptional items 2 | (589)| | (343)|
+---------+ +--------+
Profit before taxation 12,234 14,339
Taxation 5 (2,451) (4,094)
----------------------
Net profit for the year 9,783 10,245
----------------------
Pence Pence
Basic earnings per share 3 23.42 24.68
Diluted earnings per share 3 23.24 24.36
Dividend per share paid and proposed 6 10.80 10.80
Consolidated Statement of Comprehensive Income
for the year ended 31 March 2011
2011 2010
GBP000 GBP000
----------------
Profit for the year 9,783 10,245
Other comprehensive income:
Actuarial gains on defined benefit pension scheme 526 726
Tax on items taken directly to equity (147) (203)
Impact of tax rate change (77) -
Effective portion of changes in fair value of cash flow hedges 1,493 439
Foreign exchange translation difference 11 (39)
----------------
Total other comprehensive income 1,806 923
----------------
Total comprehensive income for the year 11,589 11,168
----------------
Consolidated Statement of Changes in Equity
for the year ended 31 March 2011
2011 2010
GBP000 GBP000
------------------
Total comprehensive income for the year 11,589 11,168
Dividends paid (4,509) (4,510)
Net movement relating to Treasury Shares and shares held by Vp (392) (85)
Employee Trust
Share option charge in the year 624 434
Tax movements on equity 24 1
Impact of tax rate change 5 -
------------------
Change in Equity 7,341 7,008
Equity at start of year 84,187 77,179
------------------
Equity at end of year 91,528 84,187
------------------
There were no changes in issued Share Capital or Share Premium.
Consolidated Balance Sheet
as at 31 March 2011
Note 2011 2010
GBP000 GBP000
--------------------
Non-current assets
Property, plant and equipment 101,286 98,635
Intangible assets 39,599 39,826
--------------------
Total non-current assets 140,885 138,461
--------------------
Current assets
Inventories 5,388 3,813
Trade and other receivables 33,307 27,330
Cash and cash equivalents 4 5,509 1,385
--------------------
Total current assets 44,204 32,528
--------------------
Total assets 185,089 170,989
--------------------
LIABILITIES
Current liabilities
Interest bearing loans and borrowings 4 (20,020) (49,692)
Income tax payable (897) (263)
Trade and other payables (37,178) (25,493)
--------------------
Total current liabilities (58,095) (75,448)
Non-current liabilities
Interest bearing loans and borrowings 4 (26,001) (18)
Employee benefits (178) (1,127)
Deferred tax liabilities (9,287) (10,209)
--------------------
Total non-current liabilities (35,466) (11,354)
--------------------
Total liabilities (93,561) (86,802)
--------------------
Net assets 91,528 84,187
--------------------
EQUITY
Issued share capital 2,309 2,309
Share premium account 16,192 16,192
Hedging reserve (1,674) (3,167)
Retained earnings 74,674 68,826
--------------------
Total equity attributable to equity holders of the 91,501 84,160
parent
Non-controlling interests 27 27
--------------------
Total equity 91,528 84,187
--------------------
Consolidated Statement of Cash Flows
for the year ended 31 March 2011
Note 2011 2010
GBP000 GBP000
=-------------------------------------------------------------------------------
Cash flow from operating activities
Profit before taxation 12,234 14,339
Pension fund contributions in excess of service cost (423) (2,214)
Share based payment charge 624 434
Depreciation 1 18,558 18,901
Amortisation and impairment of intangibles 1 962 1,323
Financial expense 2,689 2,622
Financial income (2) (17)
Profit on sale of property, plant and equipment (2,348) (3,375)
--------------------
Operating cashflow before changes in working capital 32,294 32,013
(Increase)/decrease in inventories (1,571) 1,650
(Increase)/decrease in trade and other receivables (5,898) 5,484
Increase/(decrease) in trade and other payables 9,029 (1,919)
--------------------
Cash generated from operations 33,854 37,228
Interest paid (2,677) (2,453)
Interest element of finance lease rental payments (31) (156)
Interest received 2 17
Income tax paid (3,065) (4,546)
--------------------
Net cash flow from operating activities 28,083 30,090
--------------------
Cash flow from investing activities
Disposal of property, plant and equipment 7,188 8,718
Purchase of property, plant and equipment (21,911) (16,744)
Acquisition of businesses (net of cash and overdrafts) (690) 19
--------------------
Net cash flow from investing activities (15,413) (8,007)
--------------------
Cash flow from financing activities
Purchase of own shares by Employee Trust (392) (85)
Repayment of borrowings (46,500) (20,000)
Proceeds from new loans 43,000 4,000
Capital element of hire purchase/finance lease (189) (678)
agreements
Dividends paid (4,509) (4,510)
--------------------
Net cash flow from financing activities (8,590) (21,273)
--------------------
Increase in cash and cash equivalents 4,080 810
Effect of exchange rate fluctuations on cash held 44 24
Cash and cash equivalents at the beginning of the year 1,385 551
--------------------
Cash and cash equivalents at the end of the year 5,509 1,385
--------------------
NOTES
The final results have been prepared on the basis of the accounting policies
which are set out in Vp plc's annual report and accounts for the year ended 31
March 2011.
The following new standard was effective from 1 July 2009 and has been reflected
in this statement:
* IFRS3 (revised), "Business combinations". The only change in this standard
that has affected this statement is the requirement to expense acquisition
costs. This has not had a material effect on the reported result.
EU Law (IAS Regulation EC1606/2002) requires that the consolidated accounts of
the Group for the year ended 31 March 2011 be prepared in accordance with
International Financial Reporting Standards ("IFRSs") as adopted for use in the
EU ('adopted IFRSs').
Whilst the financial information included in this preliminary announcement has
been computed in accordance with adopted IFRS, this announcement does not itself
contain sufficient information to comply with IFRS. The Company expects to
publish full financial statements in July 2011.
The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 March 2011 or 2010. Statutory accounts
for 31 March 2010 have been delivered to the registrar of companies, and those
for 31 March 2011 will be delivered in due course. The auditors have reported
on those accounts; their reports were (i) unqualified, (ii) did not include a
reference to any matters to which the auditors drew attention by way of emphasis
without qualifying their report and (iii) did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006 in respect of the accounts for
31 March 2011 or 31 March 2010.
The financial statements were approved by the board of directors on 7 June 2011.
1.Business Segments
Revenue Depreciation and Operating profit
amortisation before amortisation
and exceptional
items
2011 2010 2011 2010 2011 2010
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
=-------------------------------------------------------------------------------
Groundforce 30,314 32,874 3,702 4,209 6,711 9,169
UK Forks 10,789 10,625 1,645 1,758 1,055 16
Airpac Bukom 17,451 15,677 3,640 3,434 2,701 3,865
Hire Station 53,536 50,121 6,874 7,179 2,953 3,223
Torrent Trackside 14,903 10,635 1,643 1,885 1,618 175
TPA 13,966 14,231 1,569 1,437 1,434 2,162
Group - - 447 322 - -
=-------------------------------------------------------------------------------
Total 140,959 134,163 19,520 20,224 16,472 18,610
=-------------------------------------------------------------------------------
2. Exceptional Items
During the year the Group incurred GBP589,000 of employment restructuring costs
(2010: GBP456,000). In the prior year there was also an exceptional credit of
GBP113,000 from the disposal of a freehold property.
3. Earnings Per Share
The calculation of basic earnings per share of 23.42 pence (2010: 24.68 pence)
is based on the profit attributable to equity holders of the parent of
GBP9,783,000 (2010: GBP10,245,000) and a weighted average number of ordinary shares
outstanding during the year ended 31 March 2011 of 41,776,000 (2010:
41,514,000), calculated as follows:
2011 2010
Shares Shares
000's 000's
Issued ordinary shares 46,185 46,185
Effect of own shares held (4,409) (4,671)
--------------------
Weighted average number of ordinary shares 41,776 41,514
--------------------
Basic earnings per share before the amortisation of intangibles and exceptional
items was 26.09 pence (2010: 27.57 pence) and is based on an after tax add back
of GBP1,117,000 (2010: GBP1,200,000) in respect of the amortisation of intangibles
and exceptional items.
The calculation of diluted earnings per share of 23.24 pence (2010: 24.36 pence)
is based on profit attributable to equity holders of the parent of GBP9,783,000
(2010: GBP10,245,000) and a weighted average number of ordinary shares outstanding
during the year ended 31 March 2011 of 42,096,000 (2010: 42,056,000), calculated
as follows:
2011 2010
Shares Shares
000's 000's
Weighted average number of ordinary shares 41,776 41,514
Effect of share options in issue 320 542
------------------
Weighted average number of ordinary shares (diluted) 42,096 42,056
------------------
There are additional options which are not currently dilutive, but may become
dilutive in the future. Diluted earnings per share before the amortisation of
intangibles and exceptional items was 25.89 pence (2010: 27.21 pence).
4.Analysis of Debt
At At
31 March 1 April
2011 2010
GBP000 GBP000
---------------------
Cash and cash equivalents (5,509) (1,385)
Current debt 20,020 49,692
Non current debt 26,001 18
---------------------
Net debt 40,512 48,325
---------------------
Year end gearing (calculated as net debt expressed as a percentage of
shareholders' funds) stands at 44% (2010: 57%). Excluding investment in own
shares at market value of GBP10.5 million (2010: GBP7.8 million), underlying
financial gearing for business activities was 29% (2010: 44%).
The Group is currently in discussions with banks to replace the GBP20 million
facility which expires in September 2011. The new facility is expected to be
agreed well ahead of the current facility's expiry. The new facility will
reflect the Group's current assessment of business requirements and the strong
platform for growth which has been established in the last two years. The Group
also has a GBP35 million committed three year facility which is due to expire in
May 2013 and overdraft facilities totalling GBP10 million.
5.Taxation
The charge for taxation for the year represents an effective tax rate of 20.0%
(2010: 28.6%). The tax charge was reduced by GBP0.8 million (6.4%) to reflect the
adjustment to the deferred tax balance as a result of the future standard tax
rate of 26% in the UK. The effective tax rate excluding adjustments in respect
of prior years is 20.8% (2010: 27.7%).
6.Dividend
The Board has proposed a final dividend of 7.70 pence per share to be paid on 3
October 2011 to shareholders on the register at 2 September 2011. This,
together with the interim dividend of 3.10 pence per share paid on 5 January
2011 makes a total dividend for the year of 10.80 pence per share (2010: 10.80
pence per share).
7. Risks and Uncertainties
The Group comprises a number of businesses serving different markets and manages
the risks inherent to these activities. The key external risks include general
economic conditions, competitor actions, the effect of legislation, credit risk
and business continuity. Internal risks relate mainly to investment and
controls failure risk. The Group seeks to mitigate exposure to all forms of
risk where practicable and to transfer risk to insurers where cost effective.
The diversified nature of the Group limits the exposure to external risk within
a particular market. Exposure to credit risk in relation to customers, banks
and insurers is managed through credit control practices including credit
insurance which limits the Group's exposure to bad debts via an aggregate first
loss policy which covers just over half of the Group's accounts receivable.
Business continuity plans exist for key operations and accounting centres. The
Group is an active acquirer and acquisitions may involve risks that might
materially affect the Group performance. These risks are mitigated by extensive
due diligence and appropriate warranties and indemnities from the vendors.
Taking into account these risk mitigation actions and the treasury management
policies described in the 31 March 2011 accounts, the Group's exposure to
market, liquidity and credit risk is considered to be within normal parameters
and represents a level of acceptable risk.
8. Forward Looking Statements
The Chairman's Statement and Business Review include statements that are forward
looking in nature. Forward looking statements involve known and unknown risks,
assumptions, uncertainties and other factors which may cause the actual results,
performance or achievements of the Group to be materially different from any
future results, performance or achievements expressed or implied by such forward
looking statements. Except as required by the Listing Rules and applicable law,
the Company undertakes no obligation to update, review or change any forward
looking statements to reflect events or developments occurring after the date of
this report.
9. Annual Report and Accounts
The Annual Report and Accounts for the year ended 31 March 2011 will be posted
to shareholders on or around 29 July 2011.
Directors' Responsibility Statement in Respect of the Annual Financial Report
(extracted from the Annual Financial Report)
We confirm that to the best of our knowledge:
* The financial statements, prepared in accordance with the applicable set of
accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company and the undertakings
included in the consolidation taken as a whole; and
* The Business Review and Financial Review, which form part of the Directors'
Report, includes a fair review of the development and performance of the
business and the position of the Company and the undertakings included in
the consolidation taken as a whole, together with the description of the
principal risks and uncertainties that they face.
For and on behalf of the Board of Directors
J F G Pilkington A Bainbridge
Director Director
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Vp PLC via Thomson Reuters ONE
[HUG#1521594]
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