White Young Green - Interim Results
April 15 1998 - 3:30AM
UK Regulatory
RNS No 9513k
WHITE YOUNG GREEN PLC
15th April 1998
INTERIM RESULTS ANNOUNCEMENT
six months ended 31 December 1997
WHITE YOUNG GREEN Plc (formerly Ernest Green & Partners
Holdings Plc) the quoted construction services consultancy,
announces its interim results for the six months ended 31
December 1997. White Young Green was formed in July 1997
through the merger of Ernest Green & Partners Holdings Plc and
White Young Consulting Group Ltd.
Financial Highlights
* Turnover up 40% to #14.4m
* Operating profit before merger expenses up 85% to #1.1m
* Earnings per share before merger expenses up 85% to 3.7p
* Interim dividend of 1.5p
Operational Highlights
* Successful merger with White Young Consulting Group
* Head-count up 10% since merger
* Increasing diversity of skill base creating improved
quality of earnings
* Substantial order book from blue chip clients
Commenting on the results, Gareth Cooper, Chairman, said:
"These are the first results of White Young Green since it was
formed by the merger of Ernest Green Partnership and White
Young Consulting Group in July 1997. It is a great pleasure,
therefore, to report that the six months results to December
1997 demonstrate the rapid success of the merger with
significant increases in turnover, profit and earnings per
share.
"With a substantial forward order book and opportunities
arising from a buoyant market place, we are very confident of
the outcome for the financial year as a whole."
For further information, please contact:
Richard Brayson, Chief Executive Today on Tel No: 0171 466 5000
White Young Green Plc and thereafter on Tel No: 0113 278 7111
Tim Anderson / Lisa Baderoon
Buchanan Communications Tel No: 0171 466 5000
Meetings for analysts and press will be held at 10am at Buchanan
Communications, 107 Cheapside, London EC2.
CHAIRMANS STATEMENT
These are the first results of White Young Green since it was
formed by the merger of Ernest Green Partnership and White
Young Consulting Group in July 1997. It is a great pleasure,
therefore, to report that the six months results to December
1997 demonstrate the rapid success of the merger with
significant increases in turnover, profit and earnings per
share.
I am delighted with the outcome of the integration process
following the merger and the Group has enjoyed considerable
support from employees during this time. Substantial cost
savings have been achieved following the rationalisation of the
administration of the business. The Group is benefiting from
the increased opportunities arising from the wider range of
services which are now being offered to existing and new
clients.
Results
Profit increased 85% to #1.1m (1996: #0.6m) on turnover up 40%
at #14.4m (1996: #10.3m).
The expenses of the merger, which principally comprise
professional fees, of #902k are shown as an exceptional item.
Adjusted earnings per share, before merger expenses, have risen
by 85% to 3.7p from 2.0p.
Dividend
The Group has maintained its strong balance sheet with cash
balances of #1.3m at the half year. It is intended to pay an
interim dividend of 1.5p net per ordinary share (1996: 2.0p)
payable on 12 May 1998 to shareholders on the register at 1 May
1998. The overall dividend for the current financial year will
not be less than the dividend paid in the previous year,
provided the present trading performance continues.
Operations
The workload has increased since the merger, with important
contracts being secured from a wide range of private and public
sector clients. The Group has diversified its skills base and
specialist expertise such as environmental engineering, rail
engineering, process engineering and project management are
making an increasing contribution to profitability and
improvement in quality of Group earnings.
The Group has a talented and skilled work force who have
tremendous experience within all of the sectors in which the
Group trades. With the commensurate increase in order book,
staff numbers have increased to over 600 - a 10% increase since
the merger.
New commissions placed with the Group in the six month period
following the merger include major alterations to Harrods store
in Knightsbridge, PFI Adviser appointments on two new private
prisons for the Home Office, a major redevelopment scheme for
Basingstoke Town Centre and six project management commissions
for the Ministry of Defence on projects with a combined capital
value well in excess of #40 million. The Group has also been
appointed as Property Maintenance Consultant to Railtrack on
all of its properties in Northern England and Scotland.
The Company operates throughout many sectors of the industry.
This diversity of activity, together with the wide geographical
spread of offices arising from the merger, allows considerable
opportunity for organic growth. There is also the intention to
seek acquisitions that will enhance the capabilities of the
Company and further contribute to its organic development,
providing further profit growth. Overseas markets are also
being explored with work currently being undertaken on projects
in the Middle East, Khazakstan and Canada for established UK
clients.
Associate Company
RGCM was sold to its management on 6 February 1998 for #250k.
The profit contributed by RGCM for the six month period reduced
to #82k (1996: #212k).
Outlook
White Young Green has made an excellent start. With a
substantial forward order book and opportunities arising from a
buoyant market place, we are very confident of the outcome for
the financial year as a whole.
Gareth Cooper
Chairman
15th April 1998
CONSOLIDATED PROFIT AND LOSS ACCOUNT
six months ended 31 December 1997
Six months Six months Year
ended ended ended
31/12/97 31/12//96 30/06/97
(unaudited) (unaudited) (unaudited)
NOTES #000 #000 #000
Turnover 2 14,442 10,345 22,690
______ ______ ______
Operating Profit 1,027 386 917
Income from interests in
Associated undertaking 82 212 497
______ ______ ______
Profit before merger expenses 1,109 598 1,414
Merger expenses 3 (902) - -
______ ______ ______
Profit before interest 207 598 1,414
Interest (37) (38) (65)
______ ______ ______
Profit before taxation 170 560 1,349
Taxation 4 (365) (180) (428)
______ ______ ______
(Loss)/Profit for the period (195) 380 921
Dividend (289) (154) (502)
______ ______ ______
Transfer (from)/to reserves (484) 226 419
===== ===== =====
Basic earning
per share 5 -1.0p 2.0p 4.7p
Earnings per share before
Merger expenses 5 3.7p 2.0p 4.7p
CONSOLIDATED BALANCE SHEET
as at 31 December 1997
31/12/97 31/12//96 30/06/97
(unaudited)(unaudited) (unaudited)
NOTES #000 #000 #000
Fixed assets 2,716 2,812 2,615
Current assets
Work in progress 3,575 2,474 3,775
Debtors 9,077 5,981 7,685
Cash at bank 1,315 2,404 1,800
______ ______ _______
13,967 10,859 13,260
Creditors - amounts falling
due within one year (8,531) (5,411) (7,292)
______ ______ ______
Net current assets 5,436 5,448 5,968
______ ______ ______
Total assets less
current liabilities 8,152 8,260 8,583
Creditors - amounts
falling due after
more than one year (1,334) (1,325) (1,281)
Provisions for
liabilities and charges (12) (22) (12)
______ ______ ______
6,806 6,913 7,290
______ ______ ______
Capital and reserves
Called up share capital 963 963 963
Share premium account 28 28 28
Profit and loss account 5,815 5,922 6,299
______ ______ ______
Shareholders funds 6,806 6,913 7,290
______ ______ ______
CONSOLIDATED CASH FLOW STATEMENTS
six months ended 31st December 1997
Six months Six months
ended ended
31.12.97 31.12.96
(unaudited) (unaudited)
NOTE #000 #000
Net cash inflow from operating
activities 1 946 1,289
Returns on investment and
servicing of finance (37) (49)
Taxation paid (62) (30)
Capital expenditure and
financial investment (146) 304
Equity dividends paid (289) (136)
Net cash outflow from financing (270) (355)
______ ______
Increase in cash during the period 142 1,023
______ ______
(1) Reconciliation of
operating profit to operating cashflows
Operating Profit 1,027 386
Merger expenses (902) -
Depreciation 424 425
Dividend from associated undertaking - 168
Decrease in work in progress 200 191
(Increase)/decrease in debtors (1,540) 319
Increase/(decrease) in creditors 1,737 (200)
_____ _____
946 1,289
_____ _____
(2) Reconciliation of net cash flow to movement in net
debt
Increase in cash during the period 142 1,023
Cash flow from decrease in
debt and lease financing (95) (534)
_____ _____
Change in net debt resulting
from cash flows 47 489
Net debt at beginning of period (708) 56
_____ _____
Net debt at end of period (661) 545
_____ _____
NOTES TO THE INTERIM REPORT
1 Basis of preparation
On 21 July 1997 the merger was completed between the
Company and White Young
Consulting Group Limited. Full details were reported in
the accounts for the year ended 30 June 1997. The merger
has been accounted for using merger accounting principles
in accordance with Financial Reporting Standard 6.
Accordingly, the financial information for the current
period has been presented, and the comparatives restated,
as if the two entities had been combined throughout the
current and prior periods.
Information in respect of the Company before the merger has
been extracted from the published full year audited group
accounts at 30 June 1997 and published unaudited interim
statement at 31 December 1996. The full year accounts of
the Company have been delivered to the Registrar of
Companies and the report of the auditors on these accounts
was unqualified.
Information concerning White Young Consulting Group Limited
has been extracted from the accounts for the year ended 31
December 1996 which have been delivered to the Registrar of
Companies and includes an unqualified audit report. The
financial position at 30 June 1997
and 1996 has been determined from internal management
accounts.
2 Turnover
Turnover includes sums invoiced on behalf of third parties
amounting to #2,169,000 (1996: #574,000) which is also
included in cost of sales.
3 Merger Expenses
Merger expenses represents the professional fees and
statutory costs incurred in completing the merger.
4 Taxation
The taxation charge for the half year ended 31 December
1997 has been calculated at 34%, being the estimated
effective rate of taxation for the year ending 30 June
1998.
5 Earnings per share
Earnings per share has been calculated by dividing the loss
for the period by the weighted average number of ordinary
shares in issue of 19,263,650 (1996: 19,263,650) assuming
that the 11,558,142 shares issued to effect the merger had
been in issue throughout the current and prior periods.
Earnings per share before merger expenses has been
calculated by excluding the merger expenses from the loss
for the period.
6 Interim Report
The Interim Report will be posted to shareholders on 20
April and copies will be available from 1 April at the
Companys registered office at Arndale Court, Headingley,
Leeds LS6 2UJ.
END
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