Interim Results
September 27 2001 - 3:00AM
UK Regulatory
RNS Number:7090K
Wellington Holdings PLC
27 September 2001
WELLINGTON HOLDINGS PLC
Interim Results for the six months to 30 June, 2001
Wellington Holdings reports big rise in profits, sales and eps
Wellington Holdings plc, manufacturer of specialist polymer seals for
engineering and industrial applications worldwide, today announces interim
results for the six months to 30 June 2001, showing strong growth and
substantial increases in sales, profits and earnings per share. Strong demand
in the energy sector led global growth.
Financial highlights for the period:
* Turnover from continued operations #16.61m (2000: #14.46m) UP 15%
* Operating profit before goodwill #2.4m (#1.97m) UP 22%
* Profit before tax of #1.96m (#1.52m) UP 29%
* Earnings per share of 5.62p (4.45p) UP 26%
Interim dividend is maintained at 2.20p per share
Commenting on the results, the Chairman, Brian Kent, said:
"Our strong presence in the global energy sector, where we supply parts which
are used in the oil industry and longwall coal mining, has been a good
platform for our other products, which have a wide diversity of applications
in a very broad range of equipment worldwide.
"As a result the American continent again performed very well, bringing our
sales there to 54% of the group total and the UK, with 17%, also performed
above average."
Outlook
"Our short-term order book is good, although the sector mix is quite different
from a year ago. We expect another record year to follow the last one."
For further information contact:
Brian Kent, Chairman 020 8941 3774
Peter Bennett, Group Chief Executive 020 8941 3774
David Hardy, Binns & Co. 020 7786 9600
Or visit the Wellington website :- www.wellingtonholdings.com
Chairman's Statement
The impetus of last year's record operating profit for seals has continued
into the first half of 2001 and we are delighted to report earnings per share
of 5.6p, up 26% over the same period last year.
Profit before tax of #1.96 million rose 29% driven by excellent sales of #
16.61 million, up 15% for the half year to June 2001.
Our strong presence in the global energy sector, where we supply parts which
are used in the oil industry and longwall coal mining, has been a good
platform for our other products which have a wide diversity of applications in
a very broad range of equipment worldwide.
As a result, the American continent again performed very well, bringing our
sales there to 54% of the group total, and the UK, with 17%, also performed
above average.
With operating profits at #2.4 million before goodwill amortisation and
margins at 14.5% of sales, it is clear the company is now delivering the
benefits we expected from our tight focus on niche markets using our
established four brands in selected global market sectors.
Financial
We continued to invest in our three key manufacturing centres, and a
significant part of our #0.9 million capital expenditure was used to expand
CDI in Houston to cope with the high demand for oil-industry seals used in
exploration and production, well-servicing, downhole, and in petrochemical
flowlines. Operating cash flow was strong and rose 22% to #1.6 million.
Interest cover also continued to improve to a good 6.6 times.
The Board has maintained the dividend at 2.2p to be paid on 29 November 2001
to ordinary shareholders on the register at the close of business on 5 October
2001.
Outlook
Our short-term order book is good, although the sector mix is quite different
from a year ago.
With increased capacity now on stream in Houston and the USA pursuing an
expansion in domestic energy production, we are in a good position to continue
to benefit from this area.
Some sectors face uncertain times and, although a significant part of our
business lies in the after-market, we find it difficult to forecast demand
levels for the months ahead.
As we have stressed before, with a tightly controlled cost base and very
focused marketing, backed by well-known brands, we should continue to reap the
benefits of the continuing buoyancy in a number of our chosen markets.
We expect another record year to follow the last one but to achieve this our
management team and employees are being asked yet again to perform
outstandingly.
B.H. Kent
Chairman
Wellington Holdings PLC
Group Profit And Loss Account
Results For Half Year Ended 30 June 2001
Half Year Half Year Full Year
To 30 June To 30 June To 31 Dec
2001 2000 2000
(Unaudited) (Unaudited)
#'000 #'000 #'000
Turnover
Continued Operations 16,609 14,459 30,570
Trading Profit
Continued Operations Before
Goodwill Amortisation 2,404 1,975 4,270
Goodwill Amortisation (79) (72) (158)
--------- --------- ---------
2,325 1,903 4,112
Net Interest Payable (366) (381) (818)
--------- --------- ---------
Profit Before Taxation 1,959 1,522 3,294
Taxation (629) (471) (1,072)
--------- --------- ---------
Profit After Taxation 1,330 1,051 2,222
Ordinary Dividend (520) (520) (1,536)
-------- -------- ---------
Retained Profit/(Loss) 810 531 686
===== ===== =====
Earnings per Share 5.62p 4.45p 9.40p
Diluted Earnings Per Share 5.57p 4.21p 9.27p
Pro Forma Earnings Per Share 5.96p 4.75p 10.07p
Net Ordinary Dividend
Per share 2.20p 2.20p 6.50p
Consolidated Balance Sheet as at 30 June 2001
30 June 01 30 June 00 31 December 00
(Unaudited) (Unaudited)
#'000 #'000 #'000
Fixed Assets 14,093 12,891 13,538
-------- -------- --------
Current Assets
Stocks 4,326 4,153 4,378
Debtors 6,295 5,621 5,683
Cash At Bank In Hand 530 374 866
-------- -------- --------
11,151 10,148 10,927
--------- --------- ---------
Creditors-Amounts Falling Due Within
One Year (8,596) (6,870) (8,167)
-------- -------- --------
Net Current Assets 2,555 3,278 2,760
Creditors-Amounts Falling Due After More
Than One Year (7,483) (7,865) (7,838)
Provisions For Liabilities And Charges (146) (216) (181)
-------- ------- --------
Net Assets 9,019 8,088 8,279
==== ==== ====
Called Up Share Capital 2,365 2,364 2,365
Share Premium Account 3,156 3,148 3,156
Profit And Loss Account 1,929 1,007 1,189
Capital Redemption Reserve 1,569 1,569 1,569
------- ------- -------
9,019 8,088 8,279
==== ==== ====
Consolidated cash flow statement for the six months ended 30 June 2001
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 Dec
2001 2000 2000
(Unaudited) (Unaudited)
#'000 #'000 #'000
Net cash flow from continuing operating
activities 1,644 1,343 5,012
Returns on investments and servicing of
finance (366) (408) (818)
Taxation (699) (213) (682)
Capital expenditure and financial investment (905) (488) (1,716)
Acquisitions and disposals 0 500 500
Equity dividends paid (1,017) (1,016) (1,536)
------- ------- -------
Net (outflow)/inflow before financing (1,343) (282) 760
Financing (412) (594) (722)
------- ------- -------
Increase/(decrease) in cash (1,755) (876) 38
------- ------- -------
Reconciliation of net cash flow to movement
in net debt
Increase/(decrease) in cash in the period (1,755) (876) 38
Cash outflow from debt and lease financing 412 364 731
------- ------- -------
Change in net debt resulting from cash flow (1,343) (512) 769
Translation difference (438) 0 (770)
-------- ------ --------
Movement in net debt in period (1,781) (512) (1)
Net debt at beginning of period (8,772) (8,771) (8,771)
------- ------- -------
Net debt at end of period (10,553) (9,283) (8,772)
------- ------- -------
Notes:
1. The comparative figures for the financial year ended 31 December
2000 are not the company's statutory accounts for the financial year. Those
accounts have been reported on by the company's auditors and delivered to the
Registrar of Companies. The report of the auditors was unqualified and did
not contain a statement under section 237(2) or (3) of the Companies Act 1985.
2. The interim ordinary dividend of 2.20p net per share will be paid
on 29 November 2001 to shareholders on the register on 5 October 2001.
3. Earnings per share have been calculated by reference to the average
number of ordinary shares of 10p each in issue in the period being 23,656,946
and on the profit after taxation.
4. The pro-forma earnings per share is calculated after eliminating
the goodwill amortisation. The directors believe that the earnings per share
calculated by adjusting for the above gives a more meaningful indication of
the Group's underlying performance.
5. Copies of the Interim Results are being sent to all registered
shareholders. Further copies may be obtained upon request from the Company
Secretary at 130 Oldfield Road, Hampton, Middlesex TW12 2HT and can be viewed
on the company's website www.wellingtonholdings.com.
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