ABM.L Regulatory News (ABM)

17 Sep 2007 07:01

Albemarle & Bond Holdings PLC17 September 2007 ALBEMARLE & BOND HOLDINGS PLC PRELIMINARY ANNOUNCEMENT OF RESULTS FOR YEAR ENDED 30 JUNE 2007 Albemarle & Bond Holdings PLC announces preliminary results for year ended 30 June 2007. Key Highlights • EPS up 11% to 11.57p from 10.42p • Proposed final dividend of 3.5p up from 3.2p bringing the total to 5.25p compared with 4.7p last year - up 12% • Post year end acquisition of the third largest pawnbroking chain in the UK Commenting on these results, the Chairman, Mr Charles Nicolson, said: "the 22% growth in our pawn loan book, combined with the opportunities presented by theHerbert Brown acquisition puts us in a strong position for the future." Enquiries: Charles Nicolson Albemarle & Bond Holdings Plc 0117 933 3213Chairman Greville Nicholls Albemarle & Bond Holdings Plc 0118 955 8100Chief Executive David Pattinson Albemarle & Bond Holdings Plc 0118 955 8100Finance Director Susan Wallace David Venus & Company LLP 01372 465330Secretary Josceline Grove Public Relations Consultant W: 0117 933 3213 H: 01798 344500 Nick Reeve Smith & Williamson Corporate Finance Limited 0117 933 3344 Date of issue: Monday 17 September 2007 PAGE 1 CHAIRMAN'S STATEMENTFOR THE YEAR ENDED 30 JUNE 2007 2007 has been a further year of growth. Earnings per share increased by 11% to11.57p (2006 10.42p), with profit before tax increasing to £7.21m (2006 £6.67m).The directors recommend a final dividend of 3.50p (2006: 3.20p), bringing thetotal for the year to 5.25p (2006: 4.70p), an increase of 12%. During the year we added 11 branches, 4 being acquisitions and 7 greenfieldsites. This is the highest number of greenfield openings since 2001 when weopened 10. As expected these openings have inevitably impacted on profit thisyear but should enhance future earnings. The total number of branches at the end of the year was 86 which is 15% up on last year (2006: 75). We are delighted to state that pawn loans grew by 22% to £15.8m (2006: £12.9m).£0.6m of the pawn loan growth came from acquisitions leaving the growth frombranches open at the previous year end at £2.3m or 18%. Pawnbroking income grewby 17% and accounted for 54% of net income - slightly up on last year. Total retail sales of jewellery are up 8% but on a same store basis virtuallyflat. Sales of second hand jewellery were 71% of total sales compared with 69%last year. Income from third party cheque cashing was up 3% in total but down 3% on a samestore basis. This reflects the competitive state of the market as cheque usagedeclines. Net income from PayDay Advances was up 7% or 4% on a same store basis. Speedloan has had an excellent year. The total number of loans issued during the year was up by 46% on the previous year. This is a result of a very strongmarketing effort and the introduction of commission agents. Income generatedincreased by 56% and net profit by 83%. The Speedloan debtors balance has risenby 55% from £2.9m to £4.5m. The success of the company has been reflected in its share price and this meansthat employees and directors who have exercised share options have had to paytax on the gain at the date of exercise. The company in turn has had to payemployers national insurance on these gains and this has cost an additional£112,000 over last year. The company has received corporation tax relief onthese gains and that is why the effective tax rate is only 25%. Subsequent to the year end we completed the acquisition of the third largestpawnbroker in the UK, a long established jewellery and pawnbroking business,trading under the name of Herbert Brown. The net acquisition cost of £27.7mwas funded in part by additional borrowings and in part by the issue of newshares. This business made a pre-tax profit in excess of £3.0m in the year toMarch 2007. We believe that we can add value to their pawnbroking and otherfinancial services and in turn Herbert Brown can add value to our jewelleryretailing. We expect this acquisition to be earnings enhancing in 2008. We believe that the 22% growth in our pawn loanbook combined with theopportunities presented by the Herbert Brown acquisition puts us in a strongposition for the future. I would like to thank all our employees for the hard work and contributionthey have made to make these excellent results possible. CHARLES NICOLSONCHAIRMAN Our website can be found at www.albemarlebond.com PAGE 2 ALBEMARLE & BOND HOLDINGS PLCCONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 30 JUNE 2007 2007 2006 £'000 £'000 £'000TurnoverContinuing operations 32,887 29,496Acquisitions 267 - -------- -------- 33,154 29,496Cost of sales (8,282) (7,808) -------- --------Gross profit 24,872 21,688Administrative expenses (16,530) (14,089) -------- -------- Continuing operations 8,365 7,599Acquisitions (23) - -------- --------Operating profit 8,342 7,599Interest payable and similar charges (1,134) (933) -------- --------Profit on ordinary activities before 7,208 6,666taxationTax on profit on ordinary activities (1,837) (1,896) -------- --------Retained profit for the year 5,371 4,770 ======== ========Earnings per shareBasic 11.57p 10.42pDiluted 11.17p 10.17p ======== ======== PAGE 3 ALBEMARLE & BOND HOLDINGS PLCCONSOLIDATED BALANCE SHEETAS AT 30 JUNE 2007 2007 2006 restated £'000 £'000 £'000 £'000Fixed assetsIntangible assets 5,865 2,473Tangible assets 6,037 5,267 ------- ------- 11,902 7,740Current assetsStocks 9,353 7,479Debtors 31,098 25,304Cash at bank and in hand 1,964 1,663 ------- ------- 42,415 34,446Creditors: amounts fallingdue within one year (3,160) (2,805) ------- -------Net current assets 39,255 31,641 ------- -------Total assets less currentliabilities 51,157 39,381Creditors: amounts fallingdue after more than one year (24,264) (15,654) Provisions for liabilitiesand charges (311) (226) ------- -------Net assets 26,582 23,501 ======= =======Capital and reservesCalled up share capital 1,883 1,861Share premium account 4,102 3,847Capital redemption reserve 1,018 1,018Shares to be issued reserve 226 180Other reserve (411) (116)Profit and loss account 19,764 16,711 ------- -------Equity shareholders' funds 26,582 23,501 ======= ======= PAGE 4 ALBEMARLE & BOND HOLDINGS PLCCONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 30 JUNE 2007 2007 2006 £'000 £'000 £'000 £'000 Net cash inflow fromoperating activities 3,223 5,770 Returns on investments andservicing of finance Interest paid (1,093) (904)Interest element of hirepurchase payments (18) (15) ------- -------Net cash outflow fromreturns on investmentsand servicing of finance (1,111) (919) TaxationTax paid (2,060) (1,855)Capital expenditurePayments to acquire tangiblefixed assets (1,856) (1,542) Receipts from sale oftangible fixed assets 12 220 ------- -------Net cash outflow fromcapital expenditure (1,844) (1,322) AcquisitionsPayment to acquire (4,450) (4,837)businessesCash acquired with 31 136acquisitions ------- -------Net cash outflow from (4,419) (4,701)acquisitionsEquity dividend paid (2,318) (1,928) ------- -------Net cash outflow before (8,529) (4,955)financingFinancingCapital element of hirepurchase payments (108) (107) Exercise of share options (18) 159Increase in secured loans 8,639 5,381 ------- -------Net cash inflow from 8,513 5,433financing ------- -------(Decrease)/Increase in cash (16) 478 ======= ======= PAGE 5 ALBEMARLE & BOND HOLDINGS PLCNOTES TO THE PRELIMINARY ANNOUNCEMENTFOR THE YEAR ENDED 30 JUNE 2007 1 EARNINGS PER SHARE Basic The calculation of earnings per share is based on earnings of £5,371,000 (2006: £4,770,000) and 46,431,253 ordinary shares (2006: 45,791,306). Both years' figures have been calculated using a weighted average figure following the exercise of share options. The figures are after taking account of the purchase of ordinary shares by the Employee Benefit Trust. Diluted The diluted figure is based on the same figures as above but takes into account the weighted average unexercised share options in existence during the year. The dilutive effect of these share options amounted to 1,653,479 shares (2006: 1,094,160). 2 RESTATED BALANCE SHEET In accordance with FRS 20, the balance sheet at 30 June 2006 has been restated to reclassify the credit side of the payments relating to the long term incentive plan from the profit and loss reserve to the shares to be issued reserve. This has no impact on net assets. 3 DIVIDEND If approved, the final dividend of 3.5p per share will be paid not later than 30 January 2008 to shareholders on the register on 28 December 2007. 4 ACCOUNTS The results set out above are not full accounts within the meaning of s.240 of the Companies Act 1985 and have not been reported on but have been agreed with the Company's auditors. The auditors have made an unqualified report on the accounts for the year ended 30 June 2006 under s.236 of the Companies Act 1985 which have been filed with the Registrar of Companies. The Annual Report and Accounts for the year ended 30 June 2007 will be filed at the Registrar of Companies following the annual general meeting and will be posted to shareholders shortly. 5 ANNOUNCEMENT A copy of this announcement will be available at the offices of the Company for 14 days from the date of this announcement. This preliminary announcement is not being posted to shareholders. THE END This information is provided by RNS The company news service from the London Stock Exchange