RNS Number:1613S
White Young Green PLC
28 February 2002
FOR IMMEDIATE RELEASE 28 February 2002
WHITE YOUNG GREEN PLC
Interim Results Announcement
For the Six Months Ended 31 December 2001
White Young Green Plc, the engineering and environmental consultant, announces
its Interim Results for the six months ended 31 December 2001.
Financial Highlights
• Profit before tax and exceptional items up 19% to £2.14m (2000:
£1.80m)
• Turnover up 23% to £30.86m (2000: £25.17m)
• Earnings per share up 10% to 5.9p (2000: 5.4p)
• Dividend per share up 6% to 1.9p (2000: 1.8p)
Operational Highlights
• 4 Acquisitions completed during period
• Group services further diversified
• Order book at record levels
On outlook, Chairman Gareth Cooper, said:
"WYG has become a multi skilled business capable of offering clients interlinked
technical and management services appropriate to their diverse business
requirements. This evolution will be developed by continuing with our
successful strategy of blending organic growth with strategic acquisitions.
Order book is 27% higher than at this time last year. Our prospects are bright,
underpinned by the quality of our people and the breadth of our service offering
and consequently we continue to be confident for the future."
For further information, please contact:
Richard Brayson, Chief Executive Today on Tel: 020 7466 5000
WHITE YOUNG GREEN PLC Thereafter on Tel: 0113 278 7111
Tim Anderson/Lisa Baderoon Tel: 020 7466 5000
BUCHANAN COMMUNICATIONS
CHAIRMAN'S STATEMENT
INTRODUCTION
I am pleased to report results for the six month period to 31st December 2001,
that again reflect the consistent growth and development of White Young Green
(WYG). Both turnover and profits have risen strongly with four acquisitions
being completed since the year end bringing further strength and diversity to
the Group. We also continue to develop direct strategic partnerships with our
key clients as a growing range of added value management services, of importance
to those clients, become a much larger proportion of our overall business.
Results
The overall profit before tax and goodwill amortisation increased by 19% to
£2,142,000 (2000: £1,798,000) on turnover up 23% to £30,862,000 (2000:
£25,174,000). The acquisitions contributed a profit before tax of £208,000 on a
turnover of £1,990,000.
Earnings per share before goodwill amortisation increased by 10.0% to 5.9p
(2000: 5.4p).
Gearing has marginally reduced to 50% whilst interest cover remained at a
multiple of more than 6 times.
Dividend
An interim dividend of 1.9p per ordinary share (2000: 1.8p) will be paid on 7th
May 2002, to shareholders on the register at 5th April 2002.
Acquisitions
Since 30 June 2001, we have completed four acquisitions at a total cost of
£6.10m. In September 2001, we acquired the share capital of MCD Consult Ltd
(MCD), civil and structural consulting engineers based in Dublin. The skills
and client base of MCD are complementary to those already existing elsewhere
within our Irish business. They also provide us with an established and dynamic
foothold in the strategically important Dublin marketplace.
Our largest acquisition to date was also completed in September 2001, when we
acquired the share capital of Gemica Ltd and its subsidiary KT Cullen Ltd (KTC),
an environmental consultant also based in Dublin. KTC is one of Ireland's
leading environmental consultancies and the Group's overall environmental
business will now represent approximately 20% of our turnover as a consequence
of this important acquisition.
Later in September 2001, we also acquired the share capital of Fisher Wilson
Planning Ltd (FW), being a London-based town planning business. In the
previous year we had acquired our first town planning business with offices in
Bristol and Manchester. The acquisition of FW has broadened our geographical
coverage in relation to this important service which is creating cross selling
opportunities for other services offered by the Group.
Finally in November 2001, we acquired the share capital of H&ES Limited (HES), a
Belfast-based environmental consultant. HES has a close trading association
with KT Cullen and as a result of this acquisition we can now offer
environmental services to clients throughout Ireland.
Each of these acquisitions have integrated well into WYG and their contribution
has been in line with our expectations.
REVIEW OF OPERATIONS
Our UK business is benefiting from the current public sector investment focus on
Defence, Health, Education and Transportation projects. We were particularly
pleased to be appointed as Principal Support Provider (PSP) to Defence Estates
to assist in the management of the Single Living Accommodation Modernisation
(SLAM) Prime Contract. This appointment is for a duration of 7 years based on a
contract with a capital value of approximately £1 billion. A three year
agreement has also been secured with KMI Water to deliver United Utilities AMP3
Programme in the North West of England involving a capital programme of
£275million. We are also currently engaged on several major new hospital,
university and schools projects procured either conventionally or with the use
of private finance.
Overall our opportunities on major public sector projects are at their highest
ever levels. These projects when secured provide medium and long term quality
earnings and due to the size of project generates significant levels of fee.
Timing issues do, however, sometimes arise on these major projects as there can
be long gestation periods as a result of planning and legal issues that can
delay the start date of the key work stages.
We are pleased to report that our Rail business has been unaffected by the
appointment of administrators in respect of Railtrack. Our work is primarily
focused on repair and maintenance schemes and new orders continue to be secured
at encouraging levels in support of these essential programmes of work.
Our Environmental business is continuing to flourish. The introduction of the
complementary skillbase of KT Cullen to our existing portfolio of environmental
skills has helped to create a multi functional business in which cross selling
opportunities are significant. Currently we are undertaking significant work
for long term clients such as Lattice, Tesco, English Partnerships and Regional
Development Agencies across the UK providing ground remediation services.
In-house skills in water supply, river basin management, bio remediation,
geographical information systems and data management services are also available
to our diverse range of clients. Our Environmental Management Systems business
is developing well and recent orders from CBI and GSK complement the ongoing
work with the DTI.
We have also been very pleased by the progress of White Young Green Planning.
Workload has been at a very high level and many opportunities have been created
for other services offered by the Group. Planning is now also being offered as
an additional service to WYG's existing client base. The development of this
specialism in further regions of the UK is seen as a growth opportunity for the
future.
Employees
We are a service supplier and as such a people business. Staff numbers now
exceed 1,200 and their enthusiasm, professionalism and determination to provide
a quality service is the reason for our growth and success. I sincerely thank
them for their commitment to the business.
OUTLOOK
The process of gradual change in WYG's business will continue with the emphasis
being on the introduction and growth of specialist, high demand skills. In
1997, 87% of our turnover was based on the core skills of civil, structural,
mechanical and electrical engineering. Turnover in relation to these
traditional skill areas has grown since that time but now represents only 60% of
overall group turnover as the business has diversified and moved up the supply
chain. WYG has become a multi skilled business capable of offering clients
interlinked technical and management services appropriate to their diverse
business requirements. This evolution will be developed by continuing with our
successful strategy of blending organic growth with strategic acquisitions.
Order book is 27% higher than at this time last year. Our prospects are bright,
underpinned by the quality of our people and the breadth of our service offering
and consequently we continue to be confident for the future.
Consolidated Profit and Loss Account
Six months to 31 December 2001
Six months Six months Year
ended ended ended
31 December 2001 31 December 2000 30 June
2001
(unaudited) (unaudited)
Notes £'000 £'000 £'000
Turnover 1
- Continuing operations 28,872 25,174 53,029
- Acquisitions 1,990 - -
30,862 25,174 53,029
Operating expenses (28,550) (23,107) (48,502)
Group operating profit
- Continuing operations 2,340 2,166 4,775
- Acquisitions 208 - -
2,548 2,166 4,775
- Goodwill amortisation (236) (99) (248)
2,312 2,067 4,527
Property profit - 192 192
Profit before interest 2,312 2,259 4,719
Interest (406) (368) (714)
Profit before taxation 1,906 1,891 4,005
Taxation 2 (575) (607) (1,244)
Profit after taxation 1,331 1,284 2,761
Dividend (522) (460) (1,141)
Transfer to reserves 809 824 1,620
Earnings per ordinary share excluding
goodwill amortisation and property
profit 3
Basic 5.9p 5.4p 12.1p
Diluted 5.8p 5.3p 11.6p
Earnings per ordinary share 3
Basic 5.0p 5.5p 11.6p
Diluted 5.0p 5.5p 11.1p
Dividend per share 1.9p 1.8p 4.5p
At At At
31 December 2001 31 December 2000 30 June
2001
(unaudited) (unaudited)
£'000 £'000 £'000
Goodwill 13,259 4,964 8,242
Tangible assets 5,372 4,576 4,929
Investments 104 - 104
Work in progress 12,121 9,788 9,471
Debtors 17,531 14,604 16,228
Creditors (10,325) (9,038) (9,388)
38,062 24,894 29,586
Shareholders' funds 25,354 16,301 20,379
Net debt 12,708 8,593 9,207
38,062 24,894 29,586
Movements in Shareholders' Funds
six months to 31 December 2001
Six months Six months Year
ended ended ended
31 December 2001 31 December 2000 30 June
2001
(unaudited) (unaudited)
£'000 £'000 £'000
Profit attributable to shareholders 1,331 1,284 2,761
Dividends (522) (460) (1,141)
809 824 1,620
New share capital issued, net of expenses 4,149 3,119 5,188
Shares to be issued - - 1,275
Currency translation differences 17 - (62)
4,975 3,943 8,021
Shareholders' funds at start of period 20,379 12,358 12,358
Shareholders' funds at end of period 25,354 16,301 20,379
Six months Six months Year
ended ended Ended
31 December 2001 31 December 2000 30 June
2001
(unaudited) (unaudited)
£'000 £'000 £'000
Net cash flow from operating activities
Operating profit 2,312 2,067 4,527
Depreciation and amortisation 1,221 944 2,117
Net movement in working capital (3,091) (2,684) (3,378)
442 327 3,266
Returns on investments and servicing of finance (368) (367) (716)
Taxation (408) (609) (1,394)
Net capital expenditure & financial investment 9 1,263 1,086
Acquisitions and disposals (1,314) (512) (1,126)
Equity dividends paid (681) (581) (1,016)
Financing
Issues of ordinary shares 49 1,806 1,833
(Decrease)increase in debt (1,313) (1,938) 363
(Decrease)increase in cash (3,584) (611) 2,296
Reconciliation to net debt
(Decrease)increase in cash in period (3,584) (611) 2,296
(Increase)decrease in debt and lease financing (820) 1,190 (2,312)
Cash assumed on acquisitions 903 - (19)
Change in net debt from cash flow (3,501) 579 (35)
Currency translation differences - - -
Movement in net debt in period (3,501) 579 (35)
Net debt at start of period (9,207) (9,172) (9,172)
Net debt at end of period (12,708) (8,593) (9,207)
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 2001 has been
calculated at 30%, being the estimated effective rate of taxation for the year
ended 30 June 2002.
3. Earnings per share before goodwill amortisation and property profit is
calculated on adjusted earnings of £1,567,000 (2000: £1,253,000) and the
weighted average number of shares in issue of 26,412,237 (2000: 23,161,815).
Earnings per ordinary share is calculated on the profit after taxation of
£1,331,000 (2000: £1,284,000) and the weighted average number of shares in issue
of 26,412,237 (2000: 23,161,815).
Diluted earnings per share is calculated by taking the earnings as disclosed
above and the weighted average number of shares that would be issued on the full
exercise of outstanding share options of 26,852,423 (2000: 23,482,402).
4. On 17 September 2001 the Group acquired the entire issued share
capital of MCD Consult Limited. The initial consideration was IR£876,000
(£688,400) comprising a cash payment of IR£276,000 (£216,900) and 236,473 in
White Young Green Plc (WYG) shares at a market value of £1.994. Further
consideration of up to IR£750,000 (£589,400) is payable if certain performance
targets are met and a required level of net assets is delivered.
On 20 September 2001 the Group acquired the entire issued share capital of
Gemica Limited. The consideration was IR£4,794,000 (£3,849,400), comprising a
cash payment of IR£1,044,000 (£838,300) and 1,621,502 in WYG shares at a market
value of £1.857.
On 25 September 2001 the Group acquired the entire issued share capital of
Fisher Wilson Planning Limited. The consideration of £905,000 was satisfied by
the issue of £482,000 in interest bearing loan notes and 234,350 shares in WYG
at a market value of £1.805.
On 6 November 2001 the Group acquired the entire issued share capital of H&ES
Limited. The consideration was £244,000 comprising a cash payment of £49,000
and 106,849 shares in WYG at a market value of £1.825.
5. The interim financial information is prepared on the basis of the
accounting policies set out in the accounts for the year ended 30 June 2001 with
the exception of deferred taxation. The Group now provides for deferred
taxation on a full provision basis in accordance with FRS 19. The adoption of
this standard had no material effect on Group results.
The interim financial information is unaudited. The financial information
does not constitute statutory accounts within the meaning of section 240 of the
Companies Act 1985.
The financial information relating to the full year ended 30 June 2001 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 11 March 2002 and
copies will be available at the Company's registered office at Arndale Court,
Headingley, Leeds LS6 2UJ.
This information is provided by RNS
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