RNS Number:3830X
Wigmore Group (The) PLC
06 April 2004
THE WIGMORE GROUP PLC ("Wigmore" or the "Company")
Final Results for the Year Ended 31 December 2003
"Wigmore Group PLC makes significant steps forward in all financial areas"
Wigmore Group PLC ("Wigmore" or the "Group"), a provider of building support
services and construction to the leisure sector, announces preliminary results
for the year ended 31st December 2003.
FINANCIAL HIGHLIGHTS
*Turnover up 63.4% to #22.23m (2002 - #13.61m)
*Turnover on continuing activities up 38.7% to #18.43m (2002 - #13.29m)
*Operating profit of #6,000 for the year (2002 - #584,000 loss)
*Net assets increased to over #2.1m (2002 - #338,000)
*Netcash inflow from operations #499,000 (2002 - outflow #661,000)
OPERATIONAL HIGHLIGHTS
*Acquisition of Blanchards in July
*Continuing contract wins with Group order book buoyant (#12m)
*Key new management appointments in Speymill, Blanchards and FNPM.
*Expanding customer base
Peter Hewitt, Executive Chairman of Wigmore, commented:
"2003 has again been a significant year in the growth of The Wigmore Group PLC -
words that I make no apology for repeating each year. There havebeen
significant steps forward in all financial areas as can be seen from the
results. Notwithstanding the fact that the first quarter of 2004 has got off to
a slow start, the forward order book for the group companies stands at #12m,
representing a significant element of the budgeted turnover for the remainder of
2004 and this, coupled with the very recent appointment of a Business
Development Director in Speymill, leads the Board to be confident in the future
prospects of the Group for 2004."
For further information please contact:
Peter Hewitt Executive Chairman 01293 423 301
Mark Sidlin Finance Director 01293 423 319
Jeremy Porter Seymour Pierce 020 7107 8000
CHAIRMAN'S STATEMENT AND LETTER TO SHAREHOLDERS
2003 has again been a significant year in the growth of our Company, words that
I make no apology for repeating each year. In June 2003 Wigmore acquired the
regional contractor D F Blanchard (Salisbury) Limited and I am pleased to report
that this has added another important division to the Group.
I have stated that your Board's strategy is to grow the Company by both
acquisition and organic growth and I am delighted that the results contained in
this Report illustrate the success of this strategy:
Trading results - "significant steps forward in all financial areas "
The financial year-end for the Group is 31st December 2003. The final results
show a loss for the year (before tax and amortisation of goodwill) of #125,000
compared to a loss (before tax and amortisation of goodwill) of #647,000 in
2002, a reduction of 81%. Turnover for the year increased by 63.4% from #13.6m
to #22.2m. Although #3.8m of the increase is attributable to the Blanchards
acquisition, there has been an increase in turnover on continuing activities for
the year of 38.7%. Additionally, turnover on these continuing activities has
increased by 86% in the second half of the year compared to the first half of
the year.
In the second half of the year the Group achieved an operating profit of
#313,000 before amortisation of goodwill (#307,000 loss for the first 6 months)
resulting in an operating profit before amortisation of goodwill for the year of
#6,000 (2002 - #584,000 loss).
The net assets of the Group as at 31st December 2003 were #2.11million, an
increase of 523% on the net assets as at 31st December 2002. This has been
achieved by the positive impact of the Blanchards acquisition, successful fund
raisings and the conversion of certain loan notes to equity in the year.
The Group has achieved a net cash inflow from operations of #499,000 in the year
compared to a net outflow of #661,000 in the previous year, representing a
positive change of some #1.16m. This inflow, combined with successful fund
raisings and loan notes repayments, has enabled the Group to fund the
acquisition of D F Blanchard and reduce net debt by some #487,000.
I will now turn to the individual divisions and have pleasure in reporting as
follows:
Speymill - the leisure and hotel division
Speymill achieved a turnover in excess of #17m of which 65% was in the second
half of the year. A number of notable contracts were completed by Speymill in
2003,including the completion of Gala Casinos at Cardiff and Northampton for
combined contract values of approximately #4m. New clients for the year included
Marriott Hotels, Avebury Taverns and Wishing Well Pub Co., JD Wetherspoon and
Hall & Woodhouse.
As is frequently the case in the construction sector, the first quarter has not
been as robust as we would have liked. This has been caused principally by
projects that have been postponed due to corporate changes within major clients.
However Speymill has been successful in being awarded two "developers shells"
for the Premier Lodge brand, one at Stevenage and the other shortly to commence
in April at Norwich, which together have a contract value of approximately #3m.
With these in mind, ourforward order book for 2004 is in excess of #10m.
As part of our ongoing strategy and review of our business process, we have
appointed a Business Development Director whose responsibility is to penetrate
different market sectors and enlarge our current client base. Other new
positions include that of Supply Chain Manager whose role is to facilitate
better procurement of sub-contractors and suppliers.
Blanchards - the building maintenance division
The acquisition of Blanchards was completed in July of 2003 and has proved to be
highly significant in terms of the overall Group development - in particular,
this has given the Group important coverage in the South and West area of
England from offices in Salisbury.
I am pleased to report that 2003 was a successful year for Blanchards with
profits rising from #316,984 in 2002 to #432,484 for this year, an increase of
some 36%. The forward order book stands at a very healthy #1.9 million with
works completed in the first two monthsof 2004 of approximately #1.0 million.
Additionally, I am pleased to report that Blanchards have re-won the Salisbury
District Council term maintenance contract for 3 years which has an annual value
of #500,000. Blanchards clients include: AnningtonHomes, Turner Facilities
Management, Interserve and Salisbury District Council.
FNPM - the customer care division
FNPM has continued to expand during the year, particularly in after sales
services with house builders and developers. Clients nowinclude: Antler Homes,
Barratts, Banner Homes, Berkeley Group, Copthorne Homes, Persimmon Homes and
Taylor Woodrow Developments. In addition, FNPM has focused on the building
insurance market with considerable success. Turnover within FNPM increasedin
2003 on the previous year, with the company operating profitably for the second
half of 2003.
FNPM's investment in IT represented by our 'in house' developed operating
software, 'BluSky' (which provides live access via the internet to project
status), is in the process of being augmented with GPS tracking on all
operatives' vans. Your Board believes that the resultant cost savings will
increase operational efficiency and client approval. A general manager was
appointed in January 2004 and your Board is confident that this appointment will
enable the company to progress further in 2004.
Board Changes
I am delighted to welcome two new members to the Group board; George Brooksbank
who joined as a non-executive director in September 2003 and Mark Sidlin who
joined as Group Finance Director in February 2004, replacing Peter Grisman. I
should like to express a warm welcome to George and Mark, both of whose inputs
have already proved to be most useful. Biographies of both George and Mark are
to be found on the Group's website.
Dividend Policy
The Group's policy continues to be that of aiming for capital growth and as your
Board considers that we are at an early stage of implementing this strategy, no
dividend will be paid.
Acquisitions policy
As well as significant acquisitions such as those already made, it is the
Board's intention to continue to pursue a robust acquisition policy and, in
addition, to make some niche acquisitions of smaller businesses where there may
be a local or tactical advantage in so doing.
Investor Relations
I hope that shareholders will have realised that I place great emphasis on this,
often ignored aspect of the management of the Group. In particular, we hold at
least three press lunches and three regional brokers' lunches during the year -
all of which are very well attended. Additionally, this year we will exhibit at
The Master Investor Show on Saturday April 17th. I intend to continue my policy
of responding to all shareholder enquiries personally and to this end my direct
dial telephone number is published on the web site.
Corporate Identity
Shareholders may recall that in my last report in June 2003 I stated that the
Group was undergoing a re-branding exercise and I am pleased to report that this
has proved very successful, particularly in the case of Speymill, who have a
number of high profile sites, including the Premier Lodge sites on the M4 at
Heathrow and on the A1(M) at Stevenage. The new branding format has a two-fold
advantage - it allows any new acquisitions to be brought in under the 'Wigmore'
banner and it retains the individual name of the company - thereby retaining
local or trade specific goodwill.
Future Prospects
Notwithstanding the fact that the first quarter of 2004 has got off to a slow
start, the forward order book for the group companies stands at #12m,
representing a significant element of the budgeted turnover for the remainder of
2004 and this, coupled with the very recent appointment of a Business
Development Director in Speymill, leads your Board to be confident in the future
prospects of the Group for 2004.
Finally, the number of directly employed staff within the Group stands at some
150 people and I should like to convey my thanks to each and every member of the
Wigmore team for their hard work and loyalty throughout the year.
Peter L R Hewitt
Executive Chairman
6th April 2004
CONSOLIDATED PROFIT AND LOSS ACCOUNT for the year ended 31 December 2003
Before Amortisation of Total Before Amortisation Total
amortisation goodwill amortisation
of goodwill of goodwillof goodwill
2003 2003 2003 2002 2002 2002
#'000 #'000 #'000 #'000 #'000 #'000
TURNOVER
acquisition 3,801 - 3,801 - - -
Continuing 18,428 - 18,428 13,291 - 13,291
activities
Discontinued - - - 315 -315
activities
______ _____ ______ ______ _____ ______
22,229 - 22,229 13,606 - 13,606
Cost of sales
acquisition (3,062) - (3,062) (11,378) - (11,378)
continuing (16,056) - (16,056) - - -
activities
discontinued - - - (276) - (276)
activities
______ _____ ______ ______ _____ ______
(19,118) - (19,118) (11,654) - (11,654)
GROSS PROFIT 3,111 - 3,111 1,952 - 1,952
Administrative
expenses
- normal
items (3,105) (177) (3,282) (2,398) (116) (2,514)
- exceptional
item - - - (138) - (138)
Other
operating
income - - - - - -
OPERATING
PROFIT/(LOSS)
- acquisitions 313 (23) 290 - - -
- continuing
activities (307) (154) (461) (442) (116) (558)
- discontinued
activities - - - (142) - (142)
______ _____ ______ ______ _____ ______
6 (177) (171) (584) (116) (700)
Exceptional
item arising
from the
liquidation of
a subsidiary - - - 26 - 26
Interest
receivable - - - 4 - 4
Interest
payable and
similar
charges (131) - (131) (93) - (93)
______ _____ ______ ______ _____ ______
LOSS ON
ORDINARY
ACTIVITIES
BEFORE
TAXATION (125) (177) (302) (647) (116) (763)
Tax credit on - - - - - -
loss on
ordinary
activities
______ _____ ______ ______ _____ ______
LOSS ON
ORDINARY
ACTIVITIES
AFTER TAXATION
FOR THE
FINANCIAL YEAR (125) (177) (302) (647) (116) (763)
______ _____ ______ ______ _____ ______
Pence Pence Pence Pence
BASIC AND
DILUTED LOSS
PER SHARE (0.09) (0.22) (0.86) (1.01)
______ _____ ______ ______ _____ ______
CONSOLIDATED BALANCE SHEET as at 31 December 2003
2003 2002
Group Group
#'000 #'000
Fixed assets
Intangible fixed assets 3,716 2,975
Tangible fixed assets 728 221
Investments - -
_______ _______
4,444 3,196
_______ _______
Current assets
Stocks 48 26
Debtors 4,802 1,920
Cash at bank 413 2
_______ ______
5,263 1,948
Creditors: amount falling due within one year (7,006) (3,781)
_______ _______
Net current liabilities (1,743) (1,833)
_______ _______
Total assets less current liabilities 2,701 1,363
Creditors: amounts falling due after more than one (593) (1,025)
year
_______ _______
2,108 338
_______ _______
Capital and reserves
Called up share capital 2,097 838
Share premium account 813 -
Profit and loss account - deficit (802) (500)
______ ________
Equity shareholders' funds 2,108 338
______ ________
CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 December 2003
2003 2002
#'000 #'000
Net cash INFLOW/(OUTFLOW) from operating activities 499 (661)
Returns on investment and servicing of finance (131) (89)
Tax paid (222) (222)
Capital expenditure and financial investment (59) (85)
Acquisitions (821) (1,197)
_______ _______
Cash OUTFLOW before financing (734) (2,254)
Financing 749 1,217
increase/(decrease) in cash in the year 15 (1,037)
_______ ______
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
2003 2002
#'000 #'000
INCREASE/(Decrease) in cash in the period 15 (1,037)
Cash outflow from decrease in debt 523 20
________ ________
Change in net debt resulting from cash flows 538 (1,017)
Finance lease creditors of acquired subsidiary (16) (58)
Bank loans of acquired subsidiary (73) -
Issue of redeemable loan notes (309) -
New finance leases (103) -
Conversion of loan notes 600 -
Issue of convertible loan notes (150) (1,000)
________ _________
487 (2,075)
Opening net debt (2,126) (51)
________ _________
Closing net debt (1,639) (2,126)
________ _________
Notes:
1. The financial information set out in this announcement does not constitute
statutory accounts within the meaning of S240 of the Companies Act 1998. The
results incorporated in the preliminary announcement have been prepared on the
basis of accounting policies consistent with the previous year. The comparative
figures have been extracted from statutory accounts for the year ended 31
December 2002, which have been delivered to the Registrar of Companies. The
auditors have reported on those accounts; their report was unqualified and did
not contain statements under Section 237 (2) of (3) of the Companies Act 1985.
The statutory accounts for the year to 31 December 2003 will be delivered to the
Registrar of Companies on or about 22 April 2004. Copies of those statutory
accounts will be posted to shareholders on or about 22 April 2004 and they will
be laid before the shareholders at the Annual General Meeting proposed to be
convened on 20 May 2004.
2. In the foreseeable future, no charge to taxation arises, as the Group has
incurred losses to date. Consequential deferred tax assets are not recognised as
their recovery is uncertain.
3. No final dividend is proposed.
4. Earnings per share:
2003 2002
#'000 #'000
The basis for calculating earnings
per share is as follows:
Loss for the year after amortisation of goodwill (302) (763)
________ ________
Loss for the year before amortisation of goodwill (125) (647)
________ ________
'000 '000
Weighted average number of ordinary shares in 135,548 75,292
issue
________ ________
The share options in issue do not give rise to any dilution and, therefore,
fully diluted earnings per share are equal to the basic earnings per share.
5. Reconciliation of Operating Loss to Operating Cash Flows
2003 2002
#'000 #'000
Operating loss (171) (700)
Depreciation of tangible assets 155 93
Amortisation of goodwill 177 116
Exceptional items - 26
Increase/(decrease) in stocks and work in progress (4) 6
Increase/(decrease) in debtors (1,680) 1,077
Increase/(decrease) in creditors 2,022 (1,279)
______ ________
Net cash inflow/(outflow) from operating activities 499 (661)
6. Analysis of net debt
At 1 January Cashflows Arising on Other non cash At 31 December
2003 acquisition changes 2003
#'000 #'000 #'000 #'000 #'000
Cash at
bank 2 411 - -413
and in hand
Overdraft (1075) (396) - - (1,471)
___________ ________ ___________ ________ ______
(1,073) 15 - - (1,058)
Debt due
within one
year
Finance (28) 50 (15) (64) (57)
leases
Bank loan - 73 (73) - -
Debt due
after more
than one
year
Finance (25) - (1) (39) (65)
leases
Convertible
loans (1,000) 400 - 600 -
Issue of
convertible
loan notes - - - (150) (150)
Issue of
redeemable
loan notes - - - (309) (309)
___________ __________ ___________ ________ _______
(2,126) 538 (89) 38 (1,639)
___________ __________ ___________ ________ _______
7. Reconciliation of movement in equity shareholders' funds
2003 2002
#'000 #'000
Loss for the financial year (302) (763)
New share capital subscribed 2,307 838
Costs written off to share premium account (235) (293)
_______ _______
Net addition to/(reduction from) shareholders' funds 1,770 (218)
Opening equity shareholders' funds 338 556
_______ _______
Closing equity shareholders' funds 2,108 338
_______ _______
8. Copies of the report and accounts will be available from the offices of
Seymour Pierce Limited, Bucklersbury House, 3 Queen Victoria Street, London EC4N
8EL once they have been dispatched to shareholders.
For further information please contact:
Peter Hewitt Executive Chairman 01293 423 301
Mark Sidlin Finance Director 01293 423 319
Jeremy Porter Seymour Pierce 020 7107 8000
Note to Editors:
The Wigmore Group PLC (LSE: WGT) is a focused support services group deriving
its business from a mixture of term contracts with good covenants, after-sale
housing services, domestic and commercial building insurance solutions, and
specialty contracting. It provides business to business building and maintenance
services to both the public and private sectors as well as fast track design,
construction and property refurbishment services to the leisure and hotel sector
throughout the UK.
www.wigmoregroup.com
The Wigmore Group PLC has three principal subsidiaries whose website addresses
are:
www.speymill.com
www.fnpm.co.uk
www.dfblanchard.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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