ABBY.L Regulatory News (ABBY)

8 Dec 2006 07:00

Abbey PLC08 December 2006 ABBEY PLC INTERIM STATEMENT DECEMBER 2006 The Board of Abbey plc reports a profit before taxation of €22.58m whichcompares with a profit of €22.32m for the corresponding period last year.Profits at the operating level were €21.68m as compared to €21.34m at the halfway stage last year. Our housebuilding division completed 339 sales (UK 231; Ireland 108) with aturnover of €85.65m generating an operating profit of €20.23m. Overall tradingemerged in line with our financial budgets for the period. Market conditions inEngland have been steady throughout the six months with some signs of improvingconfidence in the recent past notwithstanding rises in interest rates. TheIrish market has continued to be firm with prices considerably higher than ayear ago. A number of significant new projects are now under construction andwill form a good platform for 2007. Looking forward the housing division is, as last year, on course for more salesin the second half, however, the final outcome will critically turn on the lastquarters trading. Margins in the UK are forecast to narrow noticeably. InIreland there are some indications that trading conditions are stabilising afterthe hectic growth of early 2006 which is likely to temper further increasesgoing forward. In Prague progress is consistent albeit slow towards putting inplace the conditions for a building start in 2007. A planning permit has beengranted for the renovation and extension of a building in Andel, Prague 5 forthe provision of 18 flats and a suite of offices. M & J Engineers, our UK plant hire business, generated operating profits of€1.22m on a turnover of €10.75m. A healthy improvement in margins as a resultof last years productivity enhancements together with a better market has givena welcome boost to this division. We are hopeful further progress will be madein the seasonally weaker second half. Rental income for the period amounted to €231,000 for the half year. Further to the authority granted at the EGM on 21 June 2005 the Company hasduring the period purchased and cancelled 702,221 ordinary shares at a cost of€6,359,767. There are now 28,969,532 shares in issue. The Group held substantial cash balances at the end of October. Commitments forland purchases amounting to €26m existed at the end of the half year and thegroup continues to actively pursue further opportunities. Shareholders should carefully note the exchange rates used for this statement.The profit and loss statement uses the average exchange rate for the period of100 cents: STG 68.02p. The balance sheet uses the rate prevailing on 31 Octoberof 100 cents: STG 66.92p. The Board is pleased to declare an interim dividend of 12 cents per share. Thedividend is covered 4.88 times. This dividend will be paid on 14th February 2007to shareholders on the register at 22nd December 2006. Overall, the Group istrading in line with expectations and the Board is hopeful of a satisfactoryoutcome for the year. On behalf of the Board Charles H Gallagher - Chairman 8th December 2006 GROUP PROFIT AND LOSS ACCOUNT Unaudited 6 months ended Audited Year ended 31/10/2006 31/10/2005 30/04/2006 As restated •'000 •'000 •'000 Group Turnover - continuing 96,627 96,993 204,544Operating costs (74,944) (75,656) (159,123)Trading profit 21,683 21,337 45,421 Net interest receivable 895 987 1,800Other finance charges - - (159) Profit on ordinary activities before taxation 22,578 22,324 47,062Estimated taxation on profit on ordinary (5,624) (5,462) (11,103)activities Profit attributable to shareholders 16,954 16,862 35,959Dividends paid (6,953) (7,497) (11,098)Retained profit 10,001 9,365 24,861 Earnings per share - basic and diluted 57.97 c 50.77 c 113.78 c Earnings per share has been calculated by reference to the weighted averagenumber of shares in issue of 29,248,12 at 31 October 2006 (33,213,379 at 31October 2005 and 31,605,167 at 30 April 2006) SEGMENTAL ANALYSISTurnoverBuilding and property development 85,651 86,528 183,552Plant hire 10,745 10,348 20,676Property rental 231 117 316 96,627 96,993 204,544Net AssetsBuilding and property development 150,842 135,377 124,796Plant hire 29,608 29,820 28,836Property rental 1,468 1,452 1,418 181,918 166,649 155,050 Investment in joint venture 2,398 2,398 2,398Investments 7 7 7Cash at bank 48,320 53,558 67,745 232,643 222,612 225,200 Unaudited 6 months ended Audited Year ended 31/10/2006 31/10/2005 30/04/2006 As restated •'000 •'000 •'000STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES GroupProfit for the financial period 16,954 16,862 35,959Actuarial gain on Group defined benefit pension - - 2,828 obligationsDeferred tax liability relating to - - (803)Actuarial gain on Group defined benefit pensionobligationsTranslation adjustment arising in period 3,802 (320) (2,565) Total recognised gains and losses related to 20,756 16,542 35,419the period Prior year adjustments 6,226 6,226Total recognised gains and losses since last 22,768 41,645financial statements The valuation of land and buildings and investment properties have been carriedforward from the 30 April 2005 audited financial statements. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDSGroupOpening shareholders' funds as previously 225,200 235,170 235,170reportedPrior year adjustments - 6,226 6,226Balance at beginning of year as restated 225,200 241,396 241,396 Profit for the financial period 16,954 16,862 35,959Dividends paid (6,953) (7,497) (11,098)Profit retained for the financial period 10,001 9,365 24,861 Actuarial gain on Group defined benefit pension - - 2,828 obligationsDeferred tax liability relating to Actuarial - - (803)gain on Group defined benefit pension obligations Translation adjustment arising in period 3,802 (320) (2,565) Purchase of own shares (6,360) (27,829) (40,517)Net movement in shareholders' funds 7,443 (18,784) (16,196)Closing shareholders' funds 232,643 222,612 225,200 GROUP BALANCE SHEET Unaudited Unaudited Audited 31/10/2006 31/10/2005 30/04/2006 As restated •'000 •'000 •'000 Fixed assets 37,528 35,866 34,867Investment in joint venture 2,398 2,398 2,398 39,926 38,264 37,265 Current assetsStocks 213,883 203,732 211,881Debtors 8,975 8,379 8,078Other investments 7 7 7Cash at bank and in hand 48,320 53,558 67,745 271,185 265,676 287,711 Creditors (amounts falling due within one year)Trade and other creditors (79,110) (79,827) (100,404) Net current assets 192,075 185,849 187,307 Total assets less current liabilities 232,001 224,113 224,572 Provisions for liabilities and chargesDeferred taxation (1,293) (1,386) (1,248) Pension and post retirement asset (liability)(net of deferred tax) 1,935 (115) 1,876 232,643 222,612 225,200 Shareholders' FundsCalled up share capital 9,270 10,905 9,495Share premium account 13,321 13,321 13,321Revaluation reserve 7,415 7,337 7,177Other reserves Capital redemption reserve fund 3,112 1,478 2,888 Currency translation 2,608 1,128 (957)Profit & loss account 196,917 188,443 193,276 232,643 222,612 225,200 Notes 1) The unaudited interim report has been consolidated and prepared on a basisconsistent with the accounting policies set out in the Abbey plc annual reportand accounts for the year ended 30 April 2006. Full accounts for the year ended30 April 2006 which received an unqualified report, have been filed with theIrish Registrar of Companies. 2) The surplus on the pension schemes included in the interim balance sheet isthe amount calculated at the prior year end. No revaluation of assets andliabilities of the scheme has been carried out in the period, and accordinglythere is no gain or loss shown in the statement of total recognised gains andlosses in respect of the interim period. Actuarial gains and losses for thefull year and the surplus/deficit at the end of the year will be presented inthe annual financial statements for the year ending 30 April 2007. 3) The unaudited figures for the period ended 31 October 2005 have beenrestated in respect of the effect of the adjustments to a change in accountingpolicies to adopt 'FRS17 - Retirement Benefits' and 'FRS21 - Events After TheBalance Sheet Date' in full. 4) An interim dividend of 12 cent per share will be paid on 14th February 2007to ordinary shareholders on the register at 22nd December 2006. 5) A copy of this statement will be circulated to shareholders on Friday the5th of January 2007. Copies are available to members of the public at thecompany's registered office, 25/28 North Wall Quay, Dublin 1. Unaudited 6 months ended Audited Year ended 31/10/2006 31/10/2005 30/04/2006 As restated •'000 •'000 •'000GROUP CASH FLOW STATEMENTNet cash inflow from operating activities 1,360 30,889 70,399 Returns on Investment and Servicing of FinanceInterest paid (1) (29) (164)Interest received 896 1,016 1,805 895 987 1,641Corporation Tax Paid (4,918) (4,360) (10,952) Capital ExpenditurePurchase of tangible fixed assets (5,932) (4,203) (8,060)Sale of tangible fixed assets 1,516 1,486 2,809 (4,416) (2,717) (5,251)Equity Dividends Paid (6,953) (7,497) (11,098) Net cash (outflow) inflow before use of liquid (14,032) 17,302 44,739resourcesFinancingPurchase of own shares (6,360) (27,829) (40,517)Management of liquid resources 13,251 (11,331) 3,717(Decrease) increase in cash (7,141) (21,858) 7,939 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS (Decrease) increase in cash in the period (7,141) (21,858) 7,939Movement in liquid resources (13,251) 11,331 (3,717)Translation difference 967 (79) (641)Movement in net funds in the period (19,425) (10,606) 3,581Opening net funds 67,745 64,164 64,164Closing net funds 48,320 53,558 67,745 RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES Operating profit 21,683 21,337 45,421Depreciation 3,439 3,355 6,729Profit on disposal of tangible fixed assets (609) (606) (1,155)Translation adjustment (728) (53) 745Decrease (increase) in stocks 1,780 (7,130) (17,979)Increase in debtors (679) (756) (594)(Decrease) increase in creditors (23,526) 14,742 37,163Increase in provision for liabilities - - 69Net cash inflow from operating activities 1,360 30,889 70,399 - FINANCIAL DIARY - Interim Statement 8th December 2006 Interim Dividend Payment 14th February 2007 Preliminary Statement July 2007 Annual Report September 2007 Annual General Meeting October 2007 8 December 2006 This information is provided by RNS The company news service from the London Stock Exchange