ABBY.L Regulatory News (ABBY)

13 Jul 2006 07:00

Abbey PLC13 July 2006 ABBEY PLC Preliminary Statement for the year ended 30 April 2006 The Board of Abbey plc announces a profit of €47.1 million before taxation.After a tax charge of €11.1 million the group made a profit of €36.0 millionreflecting earnings per share of 113.78 cents. Group operating profits duringthe year were €45.4 million against €55.7 million the previous year. Dividends of 34 cents per share, absorbing €11.1million of profit have been paidduring the year. The Board is recommending a dividend of 24.00 cents per shareto be considered at the Annual General Meeting in October 2006. Over the last five years the dividends paid will have increased by 104%, whilstearnings per share have increased by 45%. More recently since 2004 dividendspaid will have increased by 39% whilst earnings per share have fallen by 17%. Inthe immediate future, whilst the Board will look to at least maintain thecurrent level of dividend which it believes is both reasonable and sustainable,when considering future dividends the Board will, in the absence of othersignificant factors, probably consider continuing falls in earnings inconsistentwith rises in dividends unless justified by strong future prospects. Our housebuilding operations completed 718 sales (UK 423; Ireland 295) with aturnover of €183.5 million generating an operating profit of €43.3 million. UKtrading was broadly in line with expectations as market conditions improved inthe later months of the year. Margins continue under pressure. In Irelandoverall business conditions have remained good. As expected in the period underreview rising costs in particular land costs impaired margins. Delays in thecompletion of recent land purchases together with construction delays willlikely hold back unit closings in Ireland this year. The division as a whole isaiming to achieve a modestly higher number of unit sales this year. Marginshowever and therefore profits are expected to contract further. In Prague thegroup now owns or controls land for the provision of in the region of 300 unitsat a current net investment of €6.5 million. As previously reported a planningpermit was issued for 95 plots for our site at Slivenec. Unfortunately delayshave occurred in achieving a building permit and whilst we continue to progressthe matter, no start will now be made on this scheme until next year. At theyear end the group owned and controlled land with the benefit of planningpermission for the supply of 2,588 plots. M&J reported operating profits of €1,838,000 on a turnover of €20.7 million.Further productivity enhancements made during the year should help M&J to amodestly better performance this year. Rental income arising primarily from the letting of surplus space at groupproperty was €316,000. Further to the authority granted at Extraordinary General Meeting on 21 June2005 the company has during the period purchased 4,406,038 shares at a cost of€40,516,774. These shares have been cancelled. There are now 29,671,744 sharesin issue. The company has the authority to purchase a further 702,221 shares. At the year end shareholders' funds stood at €225.2 million representing €7.59per share whilst net cash balances stood at €67.7 million. Shareholders should carefully note the exchange rates used for this statement.The profit and loss statement uses the average exchange rate for the year of 100cents: STG68.40p. The balance sheet uses the rate prevailing on 30 April of 100cents: STG69.29p. Trading in the new year is progressing steadily, however further margin erosionis likely to impact profits again this year. Overall the Group remainsfinancially strong and well placed to take advantage of opportunities as theyarise. On behalf of the Board CHARLES H GALLAGHER CHAIRMAN 13 July 2006 GROUP PROFIT AND LOSS ACCOUNT For the year ended 30 April 2006 2006 2005 As restated •'000 •'000 Turnover - continuing (including share of joint venture) 204,544 206,854 Less: share of joint venture - (334) Group turnover 204,544 206,520 Operating costs (159,123) (150,970) Group operating profit -continuing 45,421 55,550 Share of joint venture profit - 122 Trading profit includingshare of joint venture 45,421 55,672 Net interest receivable 1,800 1,916 Other finance charges (159) (111) Profit on ordinaryactivities before taxation 47,062 57,477 Taxation on profit on ordinaryactivities - Irish corporation tax (2,173) (3,114) - United Kingdom corporation tax (8,930) (9,955) (11,103) (13,069) Profit attributable toshareholders 35,959 44,408 Dividend paid of 12.00 cents per share (3,601) (3,749) (2005 : 11.00 cents per share)Dividend paid of 22.00cents per share (7,497) (6,815)(2005 : 20.00 cents per share) Profit retained for thefinancial year 24,861 33,844 Earnings per share basic and diluted 113.78 c 130.31 c SEGMENTAL ANALYSIS Turnover Building and propertydevelopment 183,552 186,429Plant hire 20,676 20,190Property rental 316 235 204,544 206,854 Less: share of joint venture - (334) 204,544 206,520 Net AssetsBuilding and propertydevelopment 124,796 143,798Plant hire 28,836 29,575Property rental 1,418 1,454 155,050 174,827 Investment in joint venture 2,398 2,398Investments 7 7Cash at bank 67,745 64,164 225,200 241,396 Year ended Year ended 30/04/2006 30/04/2005 As restated •'000 •'000 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES Group Profit for the financial year 35,959 44,408 Actuarial gain (loss) on Groupdefined benefit pensionobligations 2,828 (411) Deferred tax (liability) assetrelating to Actuarial gain (loss)on Group defined benefit pension obligations (803) 119 Unrealised revaluation surplusarising in year - 2,465 Translation adjustment arising inyear (2,565) 145 Total recognised gains and lossesfor the year 35,419 46,726 Prior year adjustments 6,226 Total recognised gains and lossessince the last financial statements 41,645 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS Group Shareholders' funds at 1 May aspreviously reported 235,170 199,592 Prior year adjustments 6,226 5,642 241,396 205,234 Profit for the financial year 35,959 44,408 Dividends (11,098) (10,564) Profit retained for the financial year 24,861 33,844 Actuarial gain (loss) on Group defined benefit pension obligations 2,828 (411) Deferred tax (liability) assetrelating to Actuarial gain (loss) on Group defined benefit pension obligations (803) 119 Unrealised revaluation surplus arising in year - 2,465 Translation adjustment arising in year (2,565) 145 Purchase of own shares (40,517) - Net addition in shareholders' funds (16,196) 36,162 Shareholders' funds at 30 April 225,200 241,396 The preliminary statement is prepared on the same basis as set out in theprevious year's annual financial statements, subject to the adoption of FRS17"Retirement Benefits" and FRS21 "Events After the Balance Sheet Date" in thecurrent year. The adoption of these Standards has resulted in the previous yearannual financial statements being restated. The financial information relating to Abbey plc and its subsidiaries includedwithin this statement for the year ended 30 April 2006 does not comprise fullgroup accounts as referred to in Regulation 40 of the European Communities(Companies: Group Accounts) Regulations 1992, copies of which are required bythat Act to be annexed to the company's annual return. The auditors have madereports without qualification under Section 193 of the Irish Companies Act, 1990in respect of all such financial statements. GROUP BALANCE SHEET 30 April 2006 2006 2005 As restated •'000 •'000Fixed AssetsTangible assets 34,867 35,945Investment in joint venture 2,398 2,398 37,265 38,343 Current AssetsStocks 211,881 196,812Debtors 8,078 7,631Other investments 7 7Cash at bank and in hand 67,745 64,164 287,711 268,614 Creditors (amounts falling due within one year)Trade and other creditors (100,404) (64,058) Net current assets 187,307 204,556 Total assets less currentliabilities 224,572 242,899 Provisions for liabilities and charges Deferred taxation (1,248) (1,388) Pension and Post Retirement Asset(Liability) (net of deferred tax) 1,876 (115) Net Assets Including Pension and Post Retirement Asset (Liability) 225,200 241,396 Shareholders' FundsCalled up share capital 9,495 10,905Share premium account 13,321 13,321Revaluation reserve 7,177 7,346Other reservesCapital redemption reserve fund 2,888 1,478Currency translation (957) 1,439Profit & loss account 193,276 206,907 225,200 241,396 FINANCIAL DIARY Preliminary Statement 13th July 2006 Annual Report 4th September 2006 Annual General Meeting 6th October 2006 Dividend Payment 31st October 2006 - payable to shareholders registered on 13th October 2006 Interim Statement January 2007 Year ended Year ended 30/04/2006 30/04/2005 As restated •'000 •'000 GROUP CASH FLOW STATEMENT Net cash inflow from operatingactivities 70,399 27,463 Return on Investment and Servicingof Finance 1,641 1,805 Corporation Tax Paid (10,952) (14,504) Purchase of tangible fixed assets (8,060) (9,119) Sale of tangible fixed assets 2,809 2,475 Capital Expenditure (5,251) (6,644) Equity Dividends Paid (11,098) (10,564) Net cash inflow (outflow) beforeuse of liquid resources 44,739 (2,444) FinancingPurchase of own shares (40,517) - Management of liquid resources 3,717 903 Increase (decrease) in cash in theyear 7,939 (1,541) RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Increase (decrease) in cash in the year 7,939 (1,541)Movement in liquid resources (3,717) (903)Translation difference (641) (44) Movement in net funds in the year 3,581 (2,488)Net funds at 1 May 64,164 66,652 Net funds at 30 April 67,745 64,164 RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES Operating profit 45,421 55,550Depreciation 6,729 6,514Profit on disposal of tangible fixed assets (1,155) (1,037) Translation adjustment 745 (17)Increase in stocks (17,979) (31,650)Increase in debtors (594) (215)Increase (decrease) in creditors 37,163 (1,539)Increase (decrease) in provision forliabilities 69 (143)Net cash inflow from operating activities 70,399 27,463 13 July, 2006 This information is provided by RNS The company news service from the London Stock Exchange