Andrew Sykes Regulatory News (ASY)

1 May 2008 07:01

Andrews Sykes Group PLC01 May 2008 Andrews Sykes Group plc 1 May 2008 Final Results Preliminary announcement For the 52 weeks ended 29 December 2007 Summary of Results 52 weeks ended 52 weeks ended 29 December 2007 31 December 2006 £000 £000 Revenue from continuing operations 57,846 59,768Normalised EBITDA* from continuing operations 18,173 18,887Adjusted operating profit** 14,184 15,272Profit for the financial period 8,549 9,708Basic earnings per share from continuing operations (pence) 19.19p 22.11pAdjusted basic earnings per share from continuing operations 20.62p 22.11pexcluding pension curtailment chargeNet Cash inflow from operating activities 7,067 11,537Net Debt 12,344 16,167 * Earnings Before Interest, Taxation, Depreciation, profit on saleof fixed assets, Amortisation and impairment charges as reconciled on theconsolidated income statement. ** Normalised operating profit before pension curtailment charge Chairman's Statement Overview and financial highlights The group achieved an adjusted operating profit * of £14.2 million for 2007which compares with £15.3 million in 2006, our record year. Therefore althoughthese profits are lower than 2006 I still consider that this is an extremelygood performance, particularly considering we did not experience the very hotand favourable weather conditions of the summer of 2006 which contributed to a£2 million decrease in revenue to £57.8 million. More importantly, this result highlights the fact that the group is now lessweather dependent than ever before. It has been our strategy for some time tomove away from this dependency and our group now has a diverse range of incomestreams thereby providing a solid base of revenue underpinning the business.This, combined with our ongoing strict cost control policy, ensures that we areable to deliver satisfactory results even in the face of less than favourableclimatic conditions. Our main trading subsidiary, Andrews Sykes Hire continues to perform well. Itcontinues to expand its business in non-seasonal hire markets, particularlythrough its specialist hire division. It has continued to expand its presence inniche markets and these non-traditional businesses operate without undueinfluence from seasonal weather patterns. We have, of course, continued to support our traditional business roots. Thepumping division performed extremely well in 2007, taking advantage of theopportunities presented. We will invest more in this business, as well as in ourprofitable air conditioning and heating divisions, in order that we are wellplaced to satisfy our customers' demands whenever they arise. Pension curtailment offer As I reported at the half year, an offer was made to all deferred members of ourdefined benefit pension scheme giving them the opportunity to transfer theiraccrued rights to an alternative pension provider. The offer, which was substantially completed in 2007, has resulted in areduction of the pension scheme deficit of £3.5 million, a charge to the incomestatement of £0.9 million and a cash outflow of £4.3 million. This was mainlyfinanced by an agreed reduction in the July 2007 loan repayment from £5 millionto £1 million. Net Debt Net debt has been reduced by £3.9 million from £16.2 million to £12.3 millionthis year despite the following significant cash outflows: £mCapital expenditure net of disposal proceeds 4.6Pension curtailment offer 4.3Corporation tax payments 3.0Regular defined benefit pension scheme payments 1.5 13.4 This reflects the strong cash generating ability of the group. * Normalised operating profit before pension curtailment charge Share buyback programme The board continues to believe that shareholder value will be optimised by thepurchase, where appropriate, of our own shares. Consequently at the forthcomingAGM, the board will request that shareholders vote in favour of a resolution torenew the authority to purchase up to 12.5% of the ordinary shares in issue. Subsequent events Recognising the fact that no interim or final dividends were declared or paidduring either the current or previous financial period, I am pleased to reportthat the board has announced two interim dividends for the 2008 financial yearamounting to approximately £15.0 million since the year-end. This continues theboard's policy of returning value to shareholders wherever possible. Prior to the payment of the above dividends the company consulted with theAndrews Sykes Defined Benefit Pension Scheme trustees and the pension regulatorand agreed to pay an additional one-off contribution of £1.7million into thescheme as well as maintaining the regular monthly payment of £125,000. The above payments will be mainly financed by additional borrowings of £10million. Outlook The group's continuing strategy of investing in its traditional core productsand services, the increase in non-seasonal business and investment in newtechnically advanced and environmentally friendly products proved to besuccessful in 2007 and will therefore be continued into 2008. Overall trading inthe first quarter of 2008 was in line with expectations. J G MurrayChairman 30 April 2008 Andrews Sykes Group plcConsolidated Income StatementFor the 52 weeks ended 29 December 2007 52 weeks ended 29 December 2007 52 weeks Pension ended curtailment 31 December Normalised charge Total 2006 £'000 £'000 £'000 £'000Continuing operations Revenue 57,846 - 57,846 59,768Cost of sales (25,816) - (25,816) (26,918) Gross profit 32,030 - 32,030 32,850 Distribution costs (9,751) - (9,751) (9,471)Administrative expenses (8,095) (911) (9,006) (8,107) Operating profit 14,184 (911) 13,273 15,272 EBITDA* 18,173 (911) 17,262 18,887Depreciation and impairment charges (4,463) - (4,463) (4,153)Profit on the sale of property, plant and equipment 474 - 474 538Operating profit 14,184 (911) 13,273 15,272 Income from other participating interests 209 -Finance income 624 500Finance costs (1,728) (1,772) Profit before taxation 12,378 14,000 Taxation (3,829) (4,150) Profit for the period from continuing operations 8,549 9,850 Discontinued operations Loss for the period from discontinued operations - (142) Profit for the financial period attributable to equity holders of 8,549 9,708the parent Earnings per share from continuing operations Basic (pence) 19.19p 22.11pDiluted (pence) 19.19p 22.10p Earnings per share from total operations Basic (pence) 19.19p 21.79pDiluted (pence) 19.19p 21.79p Dividends paid per equity share (pence) 0.0 p 0.0p * Earnings Before Interest, Taxation, Depreciation, profit on sale of fixedassets, Amortisation and impairment charges. Andrews Sykes Group plcConsolidated Balance SheetAs at 29 December 2007 29 December 2007 31 December 2006 £'000 £'000 £'000 £'000Non-current assetsGoodwill - 31Property, plant and equipment 15,668 15,201Lease prepayments 96 229Trade investments 164 164Deferred tax asset 1,404 3,201Derivative financial instruments 13 23 17,345 18,849Current assetsStocks 5,742 4,336Trade and other receivables 16,317 16,217Cash and cash equivalents 13,102 10,190Assets held for sale 494 - 35,655 30,743 Current liabilitiesTrade and other payables (11,371) (10,108)Current tax liabilities (1,370) (2,292)Bank loans (5,000) (5,000)Obligations under finance leases (415) (233)Provisions (15) (24) (18,171) (17,657) Net current assets 17,484 13,086 Total assets less current liabilities 34,829 31,935 Non-current liabilitiesBank loans (19,000) (20,000)Obligations under finance leases (1,006) (1,147)Retirement benefit obligations (1,238) (6,577) Derivative financial instruments (38) - (21,282) (27,724) Net assets 13,547 4,211 EquityCalled-up share capital 446 446ESOP reserve - -Retained earnings 12,595 3,854Translation reserve 274 (321) Other reserves 222 222 Surplus attributable to equity holders of the parent 13,537 4,201 Minority interest 10 10 Total equity 13,547 4,211 Andrews Sykes Group plc 52 weeks 52 weeksConsolidated Cash Flow Statement ended endedFor the 52 weeks ended 29 December 2007 29 December 31 December 2007 2006 £'000 £'000Cash flows from operating activitiesCash generated from operations 11,211 15,935Interest paid (1,115) (1,591)Net UK corporation tax paid (2,202) (2,465)Withholding tax recovered / (paid) 50 (52)Overseas tax paid (877) (290) Net cash flow from operating activities 7,067 11,537 Investing activitiesDividends received from participating interests (trade investments) 209 -Disposal costs paid less consideration received on prior year disposals 295 (183)Sale of property, plant and equipment 778 526Purchase of property, plant & equipment (5,346) (7,067)Interest received 440 476 Net cash flow from investing activities (3,624) (6,248) Financing activitiesLoan repayments (1,000) (5,000) Finance lease capital repayments (141) (131) Purchase of own shares - (16)Sale of own shares by ESOP - 4 Net cash flow from financing activities (1,141) (5,143) Net increase in cash and cash equivalents 2,302 146 Cash and cash equivalents at the beginning of the year 10,190 10,342Effect of foreign exchange rate changes 610 (298) Cash and cash equivalents at end of the year 13,102 10,190 Reconciliation of net cash flow to movement in net debt in the period Net increase in cash and cash equivalents 2,302 146Cash outflow from the decrease in debt 1,141 5,131 Non cash movements in respect of new finance leases (182) -Non cash movements in the fair value of derivative instruments (48) 23Movement in net debt during the period 3,213 5,300Opening net debt at the beginning of the year (16,167) (21,169)Effect of foreign exchange rate changes 610 (298)Closing net debt at the end of the year (12,344) (16,167) Andrews Sykes Group plcConsolidated Statement of Recognised Income and ExpenseFor the 52 weeks ended 29 December 2007 52 weeks 52 weeks ended ended 29 December 31 December 2007 2006 £'000 £'000 Actual return less expected return on pension scheme 154 636assetsExperience gains and losses arising on plan obligation 424 (340)Changes in demographic and financial assumptions underlying the present value of plan obligations (279) (1,937) Currency translation differences on foreign currency net investments 595 (321)Deferred tax on items posted directly to equity (107) 493 Net income / (expense) recognised directly in equity 787 (1,469) Profit for the period attributable to parent's shareholders 8,549 9,708 Total recognised income and expense for the period attributable to equityholders of the parent 9,336 8,239 Movement on share capital and reserves Share ESOP Retained Translation Other Total capital reserve earnings reserve reserves 0 £'000 £'000 £'000 £'000 £'000 £'000 At 1 January 2006 446 (6) (4,688) - 222 (4,026)Total recognised income and expense - - 8,560 (321) - 8,239Purchase of own shares - - (16) - - (16)Sale of shares by the ESOP - 6 (2) - - 4 At 31 December 2006 446 - 3,854 (321) 222 4,201Total recognised income and expense - - 8,741 595 - 9,336 At 29 December 2007 446 - 12,595 274 222 13,537 Notes 1. Whilst the financial information included in this preliminaryannouncement has been prepared in accordance with the recognition andmeasurement criteria of International Financial Reporting Standards (IFRSs),this announcement does not itself contain sufficient information to comply withIFRSs. The group expects to distribute copies of the full Annual Report andFinancial Statements that comply with IFRSs by the middle of May 2008 followingwhich copies will be available from the registered office of the Company;Premier House, Darlington Street, Wolverhampton, WV1 4JJ. 2. The Company's Annual General Meeting will be held at 10.30 a.m. onWednesday 11 June 2008 at Floor 5, 10 Bruton Street, London, W1J 6PX. ENDS This information is provided by RNS The company news service from the London Stock Exchange