Active Energy Regulatory News (AEG)

16 Sep 2005 12:02

16 September 2005 BUCKLAND GROUP PLC ("Buckland" or the "Company") Interim Report Chairman's StatementI present the interim results for Buckland for the six months ended 30 June2005. These show a profit before tax from continuing operations andacquisitions of ‚£ 23,344 on sales of ‚£ 1,671,785. After losses fromdiscontinued operations of ‚£ 228,050 on sales of ‚£ 320,695 and after chargingan exceptional item of ‚£ 90,000 relating to closure costs, the consolidatedpre-tax loss for the period was ‚£ 294,706 on total sales of ‚£1,992,480 (2004Interim: loss of ‚£ 277,800 on sales of ‚£ 1,411,365). Earnings per share fromcontinuing operations were 0.01 p; after discontinued operations and theexceptional charge, the loss per share was 0.09 p. (2004: 0.15p loss pershare). No interim dividend is proposed.Review of Derlite, DK Gas Components & Euro Asia ConnectorsAs already advised to shareholders, Euro Asia Connectors Co Ltd (`EAC') ceasedall manufacturing on 22 July this year. EAC incurred trading losses of ‚£228,050 in the six months to the end of June and a further amount of ‚£ 90,000has been provided as an exceptional item to cover trading losses in July andthe estimated net costs to complete the closure of the business after allowingfor redundancies, sale of assets, etc. .Derlite's production has not been affected by the closure of EAC and theprocess of rationalising our operations in Bangkok to allow us to releasesurplus factory space previously utilised by EAC will be completed within thenext month. Derlite's prospects remain favourable with good demand from itslong standing customer base in the cooker market being steadily augmented bynew sales to the domestic gas boiler market in Western Europe and to the cookermarket in the USA and Mexico.The trading results of DK Gas Components, consolidated since its acquisition on18th February, have been in line with our expectations, with demand from itstraditional customer base in the UK cooker market remaining good. Variousprojects are in hand jointly with Derlite which are expected to generatesignificant sales growth over the coming year whilst short term we have beenable to achieve some improvement in DK Gas' operating margins by trimming thecost structure. Much more significant gains in this area should clearly flow aswe relocate its manufacturing operations from the UK to Bangkok; the firstphase in this process has already commenced.Balance sheetFollowing the acquisition of DK Gas and the related placing of new shares tofinance it, shareholders' funds at the end of June this year stood at ‚£825,096. With the drain on cash from EAC having been eliminated, the group'sliquidity is expected to improve steadily over time although the short termposition remains tight. In the circumstances, the Board considers that it wouldbe appropriate to propose a capital reorganisation so that the nominal value ofthe ordinary shares is reduced from 0.5p to 0.01p. This would permit the issueof further new shares, if this were thought to be appropriate and in the bestinterests of shareholders. A circular setting out in more detail this proposedcapital reorganisation is being posted to shareholders with this interim reportand will be available free of charge for a period of one month from 19September 2005 at the Company's registered office: 3 Draycott Place, London SW32SEOutlookWith the loss making EAC business eliminated from the Group, Buckland is now inthe much stronger position of having two profitable subsidiaries with mostencouraging prospects. Although the second half of the year will bear some oneoff costs associated with the transfer of UK production to Bangkok, this is aprocess that will ultimately greatly enhance the performance of the Group. Theanticipated labour and overhead savings arising from the transfer will start toimpact profits in the first half of 2006 and provide the Board with confidencein the future of the Group.Patrick RogersChairman16 September 2005Interim ReportConsolidated profit and loss account for the six month period ended 30 June2005 Unaudited Six Unaudited Six Twelve month month period month period period ended ended 30 June ended 30 June 31 December 2005 2004 2004 ‚£ ‚£ ‚£ Turnover Continuing 559,903 Operations Acquisitions 1,111,882 Discontinued 320,695 Operations 1,992,480 1,411,365 2,957,083 Cost of sales (1,400,104) (1,183,268) (2,458,683) Gross profit 592,376 228,097 498,400 Administrative (860,485) (467,234) (1,029,754)expenses Other operating 88,458 (24,739) 70,418(expense)/income Operating profit/ (loss) Continuing 20,795 Operations Acquisitions 26,612 Discontinued (228,050) operations (179,651) (263,876) (460,936) Exceptional item (90,000) Interest 2 8 97receivable Interest payable (24,065) (13,932) (27,537)and similar charges (Loss) on ordinary (294,706) (277,800) (488,376)activities before taxation Tax on ordinary - - -activities Retained (loss) (294,706) (277,800) (488,376)transferred (from) reserves (Loss) per (0.09)p (0.15)p (0.26)pordinary share: Basic and Diluted Consolidated balance sheet at 30 June 2005 At 30 June 2005 At 31 December 2004 ‚£ ‚£ ‚£ ‚£ Fixed assets Intangible assets 1,236,425 318,313 Tangible assets 371,772 173,382 1,608,197 491,695 Current assets Stocks 541,740 423,088 Debtors 1,762,719 331,243 Cash at bank and in hand 16,619 37,298 2,321,078 791,629 Creditors: amounts falling (3,095,449) (1,206,754) due within one year Net current (liabilities)/ (774,371) (415,125) assets Total assets less current 833,826 76,570 liabilities Creditors: amounts falling (8,730) (26,768) due after more than one year 825,096 49,802 Capital and reserves Called up share capital 3,487,752 2,417,752 Share premium account 735,775 735,775 Profit and loss account (3,398,431) (3,103,725) Equity shareholders' funds 825,096 49,802 Consolidated cash flow statement for the six month period ended 30 June 2005 Unaudited Year ended Six month 31 December period 2004 ended 30 June 2005 ‚£ ‚£ Net cash (outflow)/inflow from operating (665,775) 47,226 activities (see below) Returns on investments and servicing of (24,064) (27,440) finance Taxation (945,539) (2,066) Purchased Goodwill & Acquisition Costs Capital expenditure (180,265) (62,927) Cash outflow before management of liquid (1,815,643) (45,207) resources and financing Share issue 1,070,000 8,166 Debt 712,707 (Decrease) in cash (32,936) (37,041) Reconciliation of net cash flow to movement in net funds (Decrease) in cash in the period (32,936) (37,041) Cash inflow from increase in debt (712,707) (8,166) Change in net debt resulting from cash flows (745,643) (45,207) Exchange movement 10,533 (6,653) Movement in net debt in the period (735,110) (51,860) Opening net debt (289,102) (237,242) Closing net debt (1,024,212) (289,102) Reconciliation of operating (loss)/profit to net cash outflow from operating activities Operating (loss) (270,643) (460,936) Depreciation 65,538 191,095 Amortisation of goodwill 27,428 17,875 (Profit)/Loss on sale of fixed assets (83,662) (560) Decrease/(Increase) in stocks (118,652) 48,558 Decrease/(Increase) in debtors (1,431,476) 250,627 Increase in creditors 1,145,692 30,782 Other non cash operating adjustment - (30,215) Net cash (outflow) from operating activities (665,775) (47,226) Notes to the Interim Results:1The consolidated profit and loss account incorporates the unaudited results ofBuckland Group Plc and all its subsidiary undertakings up to 30 June 2005, andhas been prepared on a basis consistent with the accounting policies set out inthe audited financial statements for the year ended 31 December 2004. Earnings/(loss) per share for the six months to 30 June 2005 have been calculated basedon the weighted average number of shares in issue for the period of346,845,706.2This Interim Report was approved by the board of directors on 16 September2005.This interim financial information does not comprise statutory accounts asdefined in Section 240 of the Companies Act 1985.The financial information for the period ended 31 December 2004 is an extractfrom the latest company accounts. Those accounts received an unqualifiedauditors report and have been filed with the Registrar of Companies.The financial information for the period ended 30 June 2005 has not beensubject to review by the auditors.For further information please contact,Patrick Rogers,ChairmanTel. 07711 420 702Ben SimonsHansard CommunicationsTel. 020 7245 1100ENDBUCKLAND GROUP PLC