RNS Number:5338G
White Young Green PLC
2 March 2000
WHITE YOUNG GREEN PLC
Interim Results Announcement
For the Six Months Ended 31 December 1999
White Young Green Plc, the multi-disciplinary consulting
engineers and project managers, announces its Interim
Results for the six months ended 31 December 1999.
Financial Highlights
* Pre-tax profit up 19% to #1.5m
* Turnover up 29% to #21.2m
* Earnings per share up 15% to 4.9p
* Dividend per share up 6% to 1.7p
Operational Highlights
* Three acquisitions completed during period
* Operations in 18 offices throughout UK and Ireland
plus two overseas
* Order book at record levels
On outlook, Chairman Gareth Cooper, said:
"With the order book at a record high and an ever-
increasing range of services available to our clients,
the Group is well placed to maintain its positive
momentum. It is recognised that future growth also needs
to come from overseas markets and to that end a key
appointment is expected shortly to lead that drive."
For further information, please contact:
Richard Brayson, Chief Executive
Today on Tel: 0171 466 5000
WHITE YOUNG GREEN PLC
Thereafter on Tel: 0113 278 7111
Tim Anderson / Lisa Baderoon
BUCHANAN COMMUNICATIONS Tel: 0171 466 5000
Introduction
I am delighted to confirm that real progress in the
development of the Group continues. In the six month
period to 31 December 1999, we completed three
significant acquisitions which have expanded our
geographical coverage and range of expertise. We enjoyed
a strong financial performance with an increase in
earnings per share of 15% and finished the period with an
order book at a record high. We are involved in many of
the most exciting growth sectors and importantly continue
to secure long term trading relationships.
Results
Profits increased by 19% to #1,470,000 (1998: #1,235,000)
on turnover up 29% to #21,180,000
(1998: #16,439,000). Earnings per share before goodwill
amortisation increased by 15% to 4.9p
(1998: 4.3p).
The acquisitions have inevitably increased our working
capital requirements and as a result gearing has
increased to 76%. Interest cover is strong at seven
times.
Dividend
An interim dividend of 1.7p per ordinary share (1998:
1.6p) will be paid on 5 May 2000 to shareholders on the
register at 7 April 2000.
Acquisitions
Since 1 July we have been extremely active with three
acquisitions completed. In August 1999, we acquired the
business and assets of Mason Pittendrigh, a multi-
disciplinary consulting engineering business with offices
in Teesside, Newcastle and Edinburgh. The Group's
existing offices at Teesside and Edinburgh have been
strengthened with the introduction of new skills and
clients, and we now have a major new presence in
Newcastle.
In September 1999, we acquired the business and assets of
Gibson O'Connor, civil and structural engineers based in
Limerick, complementing our existing skills in the
Belfast office. This has established a strong presence in
Ireland, which is one of the fastest growing economies in
Europe.
In October 1999, we acquired the business and assets of
Tilney Simmons and Partners and Tilney Simmons Ltd,
together Tilney Simmons', mechanical and electrical
consulting engineers based in London, Southampton and
Oman. Since the formation of the Group in 1997, we have
been seeking to strengthen our business presence in
London with the introduction of high quality mechanical
and electrical skills. The acquisition of Tilney Simmons
has achieved this objective, whilst introducing a new
client base to us in the financial services and banking
sectors. These businesses are being successfully
integrated into the White Young Green Group and the
benefits of synergy are already coming through.
Review of operations
As a consequence of the acquisitions referred to earlier,
together with organic growth in the business, White Young
Green now operates from eighteen offices in the UK and
Ireland and two overseas. In the period since its
formation in 1997 six new locations have been added and
staff numbers have increased by 71% from 550 to 940.
Seven acquisitions have been completed. This rapid
growth has necessitated change to the subsidiary board
structures of the Group, which have been implemented and
are working well. Workload has continued to increase and
we have been busy in our market sectors. The introduction
of new skills has enabled us to extend the range of
services that we offer to clients and increasingly
projects are being secured on a multi-disciplinary one
stop basis. The retail sector continues to create
significant opportunities, particularly in Ireland where
we are heavily involved in the upgrade of existing
outlets and the design of new stores for Tesco.
Success in the office development sector include work for
the Northern Rock Plc in Newcastle and instructions have
recently been received from Stratford City Council for
the design of a new headquarters building. Our leading
edge technology continues to be in demand in the research
and development sector where new projects include the
Trials and Epidemiology building and the Facility for the
Evaluation of Infectious Particles on the Biomedical
Science Park at Oxford University. The recent award at
the new Southampton office of a contract for the
refurbishment of the Biological Sciences Facility at
Southampton University has been particularly pleasing.
Workload in the buoyant communications sector has
continued to increase and currently we are designing
telecommunication sites in the UK for the One 2 One
network and in Switzerland for the Orange network.
Recently, Telecity have given us instructions for the
design of an Internet Data Centre in Dublin.
The range of services being offered to clients in the
Environmental sector is increasing and we are now
involved in developing Environmental Management Systems
to ISO 14001 on behalf of clients. Environmental skills
have also recently been introduced to the Teesside and
Edinburgh offices. The rail sector has been particularly
busy and Railtrack have instructed us to undertake
structural examinations on all of their major UK
stations.
We continue to have a significant role in the defence
sector and were awarded a major four year Partnering-Term
Agreement with the Ministry of Defence for the provision
of advisory and project management services for the
Defence Estates Central Business Unit, comprising the
whole of the North of England, Midlands and Wales.
Consequently White Young Green will manage all of the
Ministry of Defence projects in the designated areas on
projects with an individual capital value of
up to #5m.
Employees
White Young Green is a services business and is dependent
upon the quality and commitment of its staff for its
success. The Group has grown significantly since the
merger of White Young and Ernest Green in 1997 and I take
this opportunity to thank all our staff for their
exceptional effort in making the Group one of the leaders
in its field.
Outlook
With the order book at a record high and an ever-
increasing range of services available to our clients,
the Group is well placed to maintain its positive
momentum. It is recognised that future growth also needs
to come from overseas markets and to that end a key
appointment is expected shortly to lead that drive.
We continue to explore opportunities for further
acquisitions, particularly to extend the range of
services that can be offered to clients who increasingly
require a one stop service.
G Cooper
Chairman
Six Six
months months
ended ended Year
ended
31.12 31.12 30.6
.99 .98 .99
(unau- (unau-
dited) dited)
Notes #'000 #'000 #'000
Turnover
- Continuing operations 1 19,869 16,439 35,378
- Acquisitions 1,311 - -
21,180 16,439 35,378
Operating profit
- Continuing operations 1,568 1,330 2,937
- Acquisitions 157 - -
1,725 1,330 2,937
Net interest (255) (95) (216)
Profit before taxation 1,470 1,235 2,721
Taxation 2 (472) (401) (884)
Profit after taxation 998 834 1,837
Dividend (378) (317) (803)
Transfer to reserves 620 517 1,034
Earnings per ordinary share
excluding goodwill
amortisation
- Basic 3 4.9p 4.3p 9.4p
- Diluted 3 4.8p 4.2p 9.2p
Earnings per ordinary share
- Basic 3 4.7p 4.3p 9.3p
- Diluted 3 4.6p 4.2p 9.1p
Dividend per share 1.7p 1.6p 4.0p
The Group has no recognised gains or losses other than
those included in the profit above and therefore no
separate statement of total recognised gains and losses
has been presented.
There is no difference in profit before taxation and
profit for the financial periods stated above and the
historical cost equivalents and therefore no separate
note of historical cost profit and losses has been
presented.
At At At
31.12.99 31.12.98 30.6.99
(unau- (unau-
dited) dited)
#'000 #'000 #'000
Goodwill 3,187 386 606
Tangible assets 5,299 4,548 5,092
Work in progress 8,283 5,521 5,993
Debtors 12,553 10,014 9,812
Creditors (8,863) (7,800) (8,632)
20,459 12,669 12,871
Shareholders' funds 11,593 7,888 8,797
Net debt 8,866 4,781 4,074
20,459 12,669 12,871
Movements in Shareholders' Funds
Six months to 31 December 1999
Six Six
months months
ended ended Year
ended
31.12 31.12 30.6.
.99 .98 99
(unau- (unau-
dited) dited)
#'000 #'000 #'000
Profit attributable to
shareholders 998 834 1,837
Dividends (378) (317) (803)
620 517 1,034
New share capital issued, net
of expenses 2,206 277 669
Currency translation
differences (30) - -
2,796 794 1,703
Shareholders' funds at start of
period 8,797 7,094 7,094
Shareholders' funds at end of
period 11,593 7,888 8,797
Six Six
months months
ended ended Year
ended
31.12. 31.12. 30.6.
99 98 99
(unaud (unaud
ited) ited)
#'000 #'000 #'000
Net cash flow from operating
activities
Operating profit 1,725 1,330 2,937
Depreciation and
amortisation 730 533 1,159
Net movement in working
capital (4,270) (2,885)(2,446)
(1,815) (1,022) 1,650
Returns on investments and
servicing of finance (156) (143) (156)
Taxation (425) (118) (620)
Net capital expenditure 189 (1,110)(1,114)
Acquisitions and disposals (1,149) (113) (19)
Equity dividends paid (486) (448) (765)
Financing
Issues of ordinary shares 12 - -
Increase (decrease) in debt 818 475 (276)
Decrease in cash (3,012) (2,479)(1,300)
Reconciliation to net debt
Decrease in cash in period (3,012) (2,479)(1,300)
Increase in debt and lease
financing (1,799) (1,528)(2,000)
Cash assumed on acquisitions 18 - -
Change in net debt from cash
flow (4,793) (4,007)(3,300)
Currency translation
differences 1 - -
Movement in net debt in
period (4,792) (4,007)(3,300)
Net debt at start of period (4,074) (774) (774)
Net debt at end of period (8,866) (4,781)(4,074)
NOTES TO THE FINANCIALS
1. All the Group's turnover and operating profit is
generated from the Group's principal activity of multi-
disciplinary consulting engineering and derives from
work in the United Kingdom and Ireland, except for an
immaterial amount generated from the Group's overseas
activities.
2. The taxation charge for the half year ended 31
December 1999 has been calculated at 32.1%, being the
estimated effective rate of taxation for the year
ended 30 June 2000.
3. Basic earnings per share for the six months to 31
December 1999 has been calculated by taking the
weighted average number of ordinary shares in issue of
21,182,532 (1998: 19,563,696).
Diluted earnings per share has been calculated by
taking the weighted average number of shares that
would be issued on the full exercise of outstanding
share options of 21,639,257 (1998: 19,740,761).
Earnings per share excluding goodwill amortisation has
been calculated by increasing profit after taxation by
the amount of goodwill amortisation of #44,000 (1998:
#5,000).
4. On 19 August 1999 the Group acquired the business
and certain of the assets of Mason Pittendrigh
Limited, Mason Pittendrigh Consulting Engineers
Limited and Mason Pittendrigh Engineering Services
Limited. The consideration was #394,750 comprising
#274,750 in cash and the balance in WYG shares.
On 16 September 1999 the Group acquired the business
and certain of the assets of Gibson O'Connor.
Theconsideration was IR #700,000 (#577,034) comprising
IR #140,000 (#115,407) in cash and the balance in WYG
shares. Further consideration of up to IR #300,000
(#247,300) is payable if certain profit targets
areachieved.
On 6 October 1999 the Group acquired the entire issued
share capital of Tilney Simmons Limited together with
the business and certain of the assets of Tilney
Simmons & Partners (together "TS"). The consideration
was #2,150,000 comprising #537,500 in cash and the
balance in WYG shares. Further consideration, which
will not exceed #150,000, may become payable following
the determination of the net asset position of TS at 6
October 1999.
5. The interim financial statements are prepared on
the basis of the accounting policies set out in the
accounts for the year ended 30 June 1999.
The interim financial statements are unaudited. The
statements do not constitute statutory accounts within
the meaning of section 240 of the Companies Act 1985.
The information relating to the full year ended 30
June 1999 is an extract from the latest published
accounts which have been delivered to the Registrar of
Companies; the report of the auditors on these
accounts was unqualified.
6. The Interim Report will be posted to shareholders
on 15 March 2000 and copies will be available at the
Company's registered office at Arndale Court,
Headingley, Leeds LS6 2UJ.
END
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