ARL.L Regulatory News (ARL)

6 Dec 2005 15:51

Arlington Group Ltd06 December 2005 Arlington Group Limited Interim Results for the six months to 30 september 2005 CHAIRMAN'S STATEMENT Dear Shareholder: UNAUDITED CONSOLIDATED RESULTS I am pleased to report upon the unaudited results for the 6 months ended 30September 2005. The unaudited consolidated financial results of the Group for the period underreview show a profit before taxation of £2.42 million and Earnings Per Share(EPS) of 2.93 pence. The Group's cash position at 30 September was £23.62million, equivalent to 36.38 pence per share, while Net Asset Value per share(calculated on the lower of cost or market value) has increased in the period by5.99% to 53.1 pence per share. HALF YEAR TRADING During the period under review the Company generated modest, but positive,returns in all of its internally segregated funds. Arlington Special Situations The Special Situations fund made profitable realizations in its public andprivate equity portfolios and on a structured finance transaction. Arlington Asian Focus Against the background of the Asian market environment for the period underreview, Arlington's defensive approach has delivered an increase of 5.6% in theNAV of the Arlington Asian Focus fund in the period from April 1 to 30 September2005 Joint venture with EurekaHedge - Arlington Asia Seeding Programme Significant progress has been made in the first few months of the Joint Venturewith an emerging pipeline of potential seeding deals.DIVIDENDS The directors do not recommend the payment of an interim dividend. FUTURE PROSPECTS AND OUTLOOK While the balance sheet is conservatively positioned, the Board continues topursue a number of attractive investment opportunities on a highly selectivebasis and views the future prospects of the Group with confidence. Once again, my fellow Directors and I would like to thank everyone who hasworked so hard in supporting the success of the Group and wish to express ourgratitude for their continuing commitment for the future. NICHOLAS BARHAM6 December 2005 PROFIT AND LOSS ACCOUNT Unaudited Interim Results for the six months to 30th September 2005 Six months Six months Year to ------------ ------------- ---------- to 30/09/05 to 30/09/04 31/03/05 ------------- ------------- ---------- Unaudited Unaudited Audited ----------- ------------- --------- £'000 £'000 £'000 TURNOVER Continuing 6,312 12,904 19,713 operations Discontinued 4,994 7,759 16,177 operations __________ ___________ ___________ 11,306 20,663 35,890 COST OF SALES 7,920 13,119 24,763 __________ ___________ __________GROSS PROFIT 3,386 7,544 11,127 Administrativeexpenses 2,172 3,147 5,352 __________ _________ __________OPERATING PROFIT Continuing 1,131 3,910 4,943 operations Discontinued 83 487 832 operations __________ __________ __________ 1,214 4,397 5,775Profit on disposal ofdiscontinuedoperations 714 - - Interestreceivable 495 406 1,287 Interest (5) (18) (245)payable __________ __________ __________PROFIT ON ORDINARYACTIVITIES BEFORETAXATION 2,418 4,785 6,817 Tax on profit onordinaryactivities 516 238 1,627 __________ __________ __________RETAINED PROFITFOR THE PERIOD 1,902 4,547 5,190 ====== ====== ====== Earnings per sharebasic (pence) 2.93p 7.38p 8.58p ====== ====== ======Earnings per sharefully diluted 2.92p 7.37p 8.55p ====== ====== ====== All recognised gains and losses are included in the profit and loss account. CONSOLIDATED BALANCE SHEET Unaudited Interim Results for the six months to 30th September 2005 At 30/09/05 At 30/09/04 At 31/03/05 ------------- ------------- ------------- Unaudited Unaudited Audited ----------- ----------- --------- £'000 £'000 £'000 FIXED ASSETSIntangible assets - (354) (284)Tangible assets 616 1,371 1,211 __________ __________ __________ 616 1,017 927 __________ __________ __________CURRENT ASSETSStocks - 1,230 809Debtors 842 4,196 5,125Investments 11,292 13,188 9,505Cash at bank and in hand 23,622 17,986 24,693 __________ __________ __________ 35,756 36,600 40,132 CREDITORS: Amounts fallingdue within one year 1,916 5,544 8,446 __________ __________ __________NET CURRENT ASSETS 33,840 31,056 31,686 __________ __________ __________ TOTAL ASSETS LESSCURRENT LIABILITIES 34,456 32,073 32,613 CREDITORS: Amounts fallingdue after more than one year - 91 29 Provisions for liabilities andcharges - 44 27 __________ __________ __________NET ASSETS 34,456 31,938 32,557 ====== ====== ====== CAPITAL AND RESERVES Called up share capital 325 329 325Capital redemption reserve 1 - 1Profit and loss account 34,130 31,609 32,228 __________ __________ __________EQUITY SHAREHOLDERS' FUNDS 34,456 31,938 32,554Minority interest - - 3 __________ __________ __________ 34,456 31,938 32,557 ====== ====== ====== Net assets per share - basic 53.1p 54.4p 50.1p ====== ====== ======Net assets per share - fully diluted 52.0p 52.7p 49.3p ====== ====== ====== CASH FLOW STATEMENT FOR THE SIX MONTHS TO 30TH SEPTEMBER 2005 Unaudited Interim Results for the six months to 30th September 2005 Six months Six months Year to ------------ ------------ --------- to 30/09/05 to 30/09/04 31/03/05 ------------- ------------- ---------- Unaudited Unaudited Audited ----------- ----------- --------- £'000 £'000 £'000 Net cash (outflow)/inflowfrom operating activities (526) 5,064 10,447 __________ __________ __________Returns on investments and servicing of finance Interest paid (5) (16) (240)Interest element of hirepurchase and finance leases - (3) (5)Interest received 495 407 1,287 __________ __________ _________Net cash inflow from returns oninvestments and servicing of finance 490 388 1,042 __________ __________ _________ Taxation paid (1,244) (155) (229) __________ __________ _________Capital expenditure and financial investment Receipts from sale of fixed asset - - 1 Payments to acquire fixed assets (12) (116) (152) __________ __________ _________Net cash outflow from capitalexpenditure and financial investment (12) (116) (151) __________ __________ _________Acquisitions and disposalsSale of subsidiary 1,350 - -Bank balance of disposed subsidiaries (89) - -Purchase of subsidiary - - (90)Cash acquired with subsidiary - - 70 __________ __________ _________Net cash inflow/(outflow) fromacquisitions and disposals 1,261 - (20) __________ __________ _________Cash (outflow)/inflowbefore financing (31) 5,181 11,089 FinancingIssue of new equity shares - - 32Purchase of own shares - (1,127) (1,187)Repayment of loans (76) (64) (173)Capital element of finance leaserepayments (11) (26) (43) __________ __________ _________Net cash outflow from financing (87) (1,217) (1,371) __________ __________ _________(DECREASE)/INCREASE INCASH IN THE PERIOD (118) 3,964 9,718 ===== ===== ===== NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS TO 30TH SEPTEMBER 2005 1. The interim financial statements for the six months ended 30th September 2005are unaudited and were approved by the directors on 6 December 2005. Thefinancial information set out above does not constitute statutory accountswithin the meaning of Section 240 of the Companies Act 1985. The informationgiven as comparative figures for the year ended 31st March 2005 was extractedfrom the Company's audited accounts for that financial year. 2. ACCOUNTING POLICIES The principal accounting policies of the Company have remained unchanged fromthose set out in the Company's accounts for the year ended 31st March 2005. 3. RECONCILIATION OF OPERATING LOSS TO NET CASH (OUTFLOW)/INFLOW FROM OPERATINGACTIVITIES Six months Six months Year to ------------ ------------ --------- to 30/09/05 to 30/09/04 31/03/05 ------------- ------------- ---------- Unaudited Unaudited Audited ----------- ----------- --------- £'000 £'000 £'000 Operating profit 1,214 4,397 5,775Amortisation of goodwill (71) (71) (139)Depreciation 183 184 373Grant released - (18) (35)Loss on disposal of fixed assets - - 1Decrease/(increase) in stocks 100 (436) (15)Decrease/(increase) in debtors 2,472 (1,521) (2,421)(Increase)/decrease in currentasset investments (1,746) 1,366 5,049(Decrease)/increase in creditors (2,678) 1,163 1,859 __________ __________ __________Net cash (outflow)/inflow fromoperating activities (526) 5,064 10,447 ====== ====== ====== NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS TO 30TH SEPTEMBER 2005(Continued) 4. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Six months Six months Year to ------------ ------------ --------- to 30/09/05 to 30/09/04 31/03/05 ------------- ------------- ---------- Unaudited Unaudited Audited ----------- ----------- --------- £'000 £'000 £'000 (Decrease)/increase in cash in theperiod (118) 3,964 9,718Net cash outflow from loans 76 83 173Cash outflow in respect of hirepurchaseand finance leases 11 26 43 __________ __________Change in net funds arising from cashflows (31) 4,073 9,934New finance leases (2) - -Net funds at beginning of period 23,537 13,636 13,636 __________ __________Net funds at end of period 23,537 17,709 23,570 ======= ======= ======= 5. ANALYSIS OF NET FUNDS Cash at bank and in hand 23,622 17,986 24,693Overdrafts - - (953) __________ __________ __________ 23,622 17,986 23,740 __________ __________ __________ Debt due within one year (85) (120) (132)Debt due after one year - (131) (29)Finance leases - (26) (9) __________ __________ __________ (85) (277) (170) __________ __________ __________Net funds 23,537 17,709 23,570 ======= ====== ====== NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS TO 30TH SEPTEMBER 2005(Continued) 6. EARNINGS PER SHARE (EPS) Six months Six months Year to ------------ ------------ --------- to 30/09/05 to 30/09/04 31/03/05 ------------- ------------- ---------- Unaudited Unaudited Audited ----------- ----------- --------- Weighted average number ofordinaryshares in issue (excludingtreasury shares) 64,924,714 61,593,775 61,468,175 ______________ ______________ ______________ Dilutive effect of the weightedaveragenumber of share options inthe period 246,641 138,340 206,519 __________ __________ __________ Profit after tax (£) 1,902,000 4,547,000 5,190,000 _____________ _____________ _____________Basic earning per share -pence 2.93p 7.38p 8.58p ====== ====== ======Fully diluted earnings pershare - pence 2.92p 7.37p 8.55p ====== ====== ====== Diluted EPS/share is calculated by adjusting the weighted average number ofshares in issue on the assumption of conversion of all dilutive potentialordinary shares. In all the periods above, there were 988,790 dilutive potentialordinary shares. 7. NET ASSET VALUE PER SHARE The "basic" net asset value per share figures are calculated on the basis of thenet assets attributable to equity shareholders divided by the number of ordinaryshares (excluding treasury shares) in issue at the relevant dates. The "fully diluted" net assets per share figures are calculated by adjusting thenumber of ordinary shares (excluding treasury shares) on the assumption of theexercise in full of all option and warrant instruments extant as at the relevantdates where the exercise price of any such instrument(s) is less than the"basic" NAV per share. 8. Copies of the interim report are available to the public free of charge for14 days as from today. They may be obtained in any one of the following ways: (a) From the Company Secretary at: Reid House, 31 Church Street, Hamilton HM12, Bermuda.(b) From the Company's share registrars: web.queries@computershare.co.uk(c) From the Company's website: www.arlingtongroup.co.uk This information is provided by RNS The company news service from the London Stock Exchange