Andrew Sykes Regulatory News (ASY)

28 Sep 2006 07:30

Andrews Sykes Group PLC28 September 2006 Andrews Sykes Group plc (the "Company") 28 September 2006 Interim Results for the 26 weeks to 1 July 2006 Chairman's Statement Overview and financial highlights I am pleased to report an increase of 60% in the basic earnings per share fromcontinuing operations due to improved trading performance throughout the firsthalf of 2006. The financial highlights of this period compared with the first half of 2005 areas follows: - Basic earnings per share from continuing operations increased by 2.8 pence (60%) to 7.46 pence. - Turnover from Continuing Operations increased by £4.5m (20%) to £27.6m. - EBITDA (as reconciled on the face of the profit and loss account) derived from continuing operations increased by £1.6m (29%) to £7.1m. - Operating profit increased by £1.4m (35%) to £5.4m. - Net cash inflow from operating activities increased by £1.0m (24%) to £5.3m. The Group's businesses performed well and overall were in line with ourexpectations. The hire of heating and portable air conditioning equipmentbenefited from the colder winter and warm early summer respectively. Our continuing endeavours to improve our processes and strategies haveconsiderably enhanced our business performance during the period and will have apositive impact on growth going forward. This, together with the measuresintroduced to stimulate demand for our product in previous periods, has improvedrevenues compared with 2005. Prospects Our performance continued well into the second half and I am optimistic for theresult for the full year. I remain confident that the Group is well prepared forfuture trading and ready to take advantage of market opportunities as theyarise. JG Murray Chairman 27 September 2006 Andrews Sykes Group plcConsolidated Profit and Loss AccountFor the 26 weeks ended 1 July 2006 26 weeks 26 weeks to 52 weeks to to 1 July 2 July 2005 31 December 2006 2005 Total Continuing Discontinued Total Continuing Discontinued Total activities activities activities activities activities £'000 £'000 £'000 £'000 £'000 £'000 £'000Turnover 27,609 23,077 3,681 26,758 50,673 4,415 55,088 Cost of sales (13,441) (11,597) (2,064) (13,661) (23,675) (2,414) (26,089) Gross profit 14,168 11,480 1,617 13,097 26,998 2,001 28,999 Distribution costs (4,433) (3,800) (599) (4,399) (8,038) (699) (8,737) Administrative expenses (4,372) (4,007) (729) (4,736) (7,898) (960) (8,858) Operating profit 5,363 3,673 289 3,962 11,062 342 11,404 EBITDA * 7,090 5,506 552 6,058 14,747 615 15,362 Depreciation and asset disposals (1,720) (1,826) (263) (2,089) (3,671) (273) (3,944) Operating profit before goodwill 5,370 3,680 289 3,969 11,076 342 11,418amortisation Goodwill amortisation (7) (7) - (7) (14) - (14) Operating profit 5,363 3,673 289 3,962 11,062 342 11,404 Exceptional profit on the disposal - 6,797 6,404of a business - discontinued Profit on ordinary activities 5,363 10,759 17,808before interest and taxation Net interest payable (598) (211) (738) Profit on ordinary activities 4,765 10,548 17,070before taxation Tax on profit on ordinary activities (1,440) (868) (2,943) Profit on ordinary activities after 3,325 9,680 14,127taxation being profit for thefinancial period Earnings per share from continuing operations: Basic (pence) 7.46p 4.66p 15.24p Diluted (pence) 7.46p 4.65p 15.24p Earnings per share from total operatingresults: Basic (pence) 7.46p 16.70p 28.16p Diluted (pence) 7.46p 16.69p 28.16p Dividends paid per equity share 0.0p 14.0p 14.0p(pence) All results for the current period derive from continuing operations. There were no material acquisitions in any period. * Earnings Before Interest, Taxation, Depreciation and Amortisation. Consolidated Balance SheetAs at 1 July 2006 1 July 2 July 31 December 2006 2005 2005 £'000 £'000 £'000Fixed assetsIntangible assets: Goodwill 24 38 31Tangible assets 12,741 11,940 12,011Investments 164 164 164 12,929 12,142 12,206Current assets Stocks 4,475 4,801 4,532Debtors 15,886 14,002 13,929Cash at bank and in hand 11,435 12,308 10,342 31,796 31,111 28,803Creditors falling due within one yearLoans and overdrafts (5,000) (2,000) (5,000)Other creditors (8,560) (7,738) (8,627)Corporation and overseas tax (2,133) (1,267) (1,060) (15,693) (11,005) (14,687) Net current assets 16,103 20,106 14,116 Total assets less current liabilities 29,032 32,248 26,322 Creditors falling due after more than one year Loans (25,000) (9,000) (25,000) Provisions for liabilities (495) (339) (469) Net assets excluding pension liability 3,537 22,909 853 Pension Liability (3,902) (6,050) (4,434) Net (liabilities) / assets including pension liability (365) 16,859 (3,581) Capital and reservesCalled-up share capital 446 11,598 446Share premium account - 10,678 -Revaluation reserve 738 743 741Other reserves 217 7,395 222Profit and loss account (1,776) (13,559) (4,994)ESOP reserve - (6) (6)(Deficit) / surplus attributable to equity shareholders (375) 16,849 (3,591) Minority interests 10 10 10Total capital employed (365) 16,859 (3,581) Andrews Sykes Group plcConsolidated Cash Flow StatementFor the 26 weeks ended 1 July 2006 26 weeks to 26 weeks to 52 weeks to 1 July 2 July 31 December 2006 2005 2005 £'000 £'000 £'000Net cash inflow from operating activities as reconciled in note 4 5,292 4,258 10,196 Returns on investments and servicing of financeInterest received 164 245 484Interest paid (877) (353) (946) Net cash outflow for returns on investments and servicing of finance (713) (108) (462) Cash outflow for taxation (788) (642) (1,984) Capital expenditurePurchase of tangible fixed assets (2,804) (1,856) (4,056)Sale of tangible fixed assets 342 395 608 Net cash outflow for capital expenditure (2,462) (1,461) (3,448) Acquisitions and disposalsCash received on the disposal of subsidiary undertakings - 9,614 10,204Disposal costs paid less consideration received on prior year disposals (138) - -Net cash balances disposed of with subsidiary - (439) (214) Net cash (outflow) / inflow for acquisitions and disposals (138) 9,175 9,990 Equity dividends paid - (8,119) (8,119) Cash inflow before the use of liquid resources and financing 1,191 3,103 6,173 Management of liquid resourcesMovement in bank deposits - (87) 477 FinancingSale of shares held in ESOP 4 9 9New loans drawn down - - 30,000Loan repayments - - (11,000)Purchase of own shares (16) - (24,168)Net cash (outflow) / inflow from financing (12) 9 (5,159) Increase in cash in the period 1,179 3,025 1,491 Analysis of net (debt) / fundsBank current and deposit accounts and cash in hand 11,435 12,308 10,342Total loans and overdrafts (30,000) (11,000) (30,000) Net (debt) / funds as reconciled in note 5 (18,565) 1,308 (19,658) Andrews Sykes Group plcOther Consolidated StatementsFor the 26 weeks ended 1 July 2006 Consolidated statement of total recognised gains and losses 26 weeks to 26 weeks to 52 weeks to 1 July 2 July 31 December 2006 2005 2005 £'000 £'000 £'000 Profit for the financial period 3,325 9,680 14,127 Currency translation differences on (97) (88) 48 foreign currency net investments Actual return less expected return on - 419 2,702 pension scheme assets Experience gains and losses arising on - (38) (4) the pension scheme liabilities Changes in assumptions underlying the - - (3,538) present value of the scheme liabilities UK deferred tax attributable to the pension scheme - (114) 252 asset and liability adjustments Total recognised gains and losses 3,228 9,859 13,587 relating to the period Reconciliation of movement in Group shareholders' funds 26 weeks to 26 weeks to 52 weeks to 1 July 2 July 31 December 2006 2005 2005 £'000 £'000 £'000 Profit for the financial period 3,325 9,680 14,127 Dividends paid - (8,119) (8,119) Consideration for the purchase of own shares (16) - (24,168) Sale of own shares by the ESOP trust 4 9 9 Currency translation differences on (97) (88) 48 foreign currency net investments Actual return less expected return on - 419 2,702 pension scheme assets Experience gains and losses arising on - (38) (4) the pension scheme liabilities Changes in assumptions underlying the - - (3,538) present value of the scheme liabilities UK deferred tax attributable to the pension scheme - (114) 252 asset and liability adjustments Net increase /(decrease) in shareholders' funds 3,216 1,749 (18,691) Shareholders' (deficit) / funds at the beginning of the period (3,591) 15,100 15,100 Shareholders' (deficit)/ funds at the end of the period (375) 16,849 (3,591) Andrews Sykes Group plc Notes to the accounts For the 26 weeks ended 1 July 2006 1. Basis of preparation The interim report for the 26 weeks ended 1 July 2006 was approved by the Board on 27 September 2006. The financial information contained in this interim report does not constitute statutory accounts for the Group for the relevant periods. The interim report is neither audited nor reviewed. The results for the 52 weeks ended 31 December 2005 have been extracted from the audited financial statements that have been filed with the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The interim statement has been prepared on a consistent basis and in accordance with the accounting policies set out in the Group's 2005 Annual Report and Financial Statements. 2. Segmental analysis The Group's turnover may be analysed between the following principal activities: 26 weeks to 26 weeks to 52 weeks to 1 July 2 July 31 December 2006 2005 2005 Activity: £'000 £'000 £'000 Hire 19,151 17,169 36,389 Sales 4,539 5,331 9,509 Installation 3,919 4,258 9,190 Total 27,609 26,758 55,088 The geographical analysis of the roup's turnover was as follows: 26 weeks to 26 weeks to 52 weeks to 1 July 2 July 31 December 2006 2005 2005 By origination: £'000 £'000 £'000 United Kingdom 22,487 23,574 48,041 Rest of Europe 3,131 1,529 3,674 Middle East and 1,991 1,655 3,373 Africa 27,609 26,758 55,088 26 weeks to 26 weeks to 52 weeks to 1 July 2 July 31 December 2006 2005 2005 By destination: £'000 £'000 £'000 United Kingdom 22,137 23,190 47,612 Rest of Europe 3,180 1,561 3,737 Middle East and 2,027 1,665 3,478 Africa Rest of World 265 342 261 27,609 26,758 55,088 The analysis of profit before interest and tax and net assets by geographical origin was as follows: Profit before interest and tax Net assets including pension liability 26 weeks to 26 weeks to 52 weeks to As at As at As at 1 July 2 July 31 December 1 July 2 July 31 December 2006 2005 2005 2006 2005 2005 £'000 £'000 £'000 £'000 £'000 £'000 United Kingdom 4,006 10,146 16,141 20,174 20,262 17,642 Rest of Europe 1,129 387 1,155 2,051 813 1,785 Middle East and Africa 228 226 512 2,010 1,793 2,144 5,363 10,759 17,808 24,235 22,868 21,571 Net (debt) / cash (18,565) 1,308 (19,658) Taxation (2,133) (1,267) (1,060) Pension liability (3,902) (6,050) (4,434) (365) 16,859 (3,581) 3. Earnings per share The basic figures have been calculated by reference to the weighted average number of ordinary shares in issue, excluding those in the ESOP reserve, during the period of 44,562,701 (26 weeks ended 2 July 2005: 57,976,672). The calculation of the diluted earnings per ordinary share is based on the profits as set out in the table below and on 44,565,526 (26 weeks ended 2 July 2005: 57,992,597) ordinary shares. The share options have a dilutive effect for the period calculated as follows: 26 weeks to 1 July 2006 26 weeks to 2 July 2005 Continuing Total No. of shares Continuing Total No. of earnings earnings earnings earnings shares £'000 £'000 £'000 £'000 Basic earnings/weighted 3,325 3,325 44,562,701 2,699 9,680 57,976,672 average number of shares Weighted average number 16,194 30,000 of shares under option Number of shares that would have been issued at fair value (13,369) (14,075) Earnings/ diluted 3,325 3,325 44,565,526 2,699 9,680 57,992,597 weighted average number of shares Diluted earnings 7.46p 7.46p 4.65p 16.69p per ordinary share (pence) Andrews Sykes Group plc Notes to the accounts For the 26 weeks ended 1 July 2006 4. Reconciliation of operating profit to net cash inflow from operating activities 26 weeks to 26 weeks to 52 weeks to 1 July 2 July 31 December 2006 2005 2005 £'000 £'000 £'000 Operating profit 5,363 3,962 11,404 Goodwill amortisation 7 7 14 Depreciation 1,963 2,286 4,280 Profit on sale of fixed assets (243) (197) (336) Decrease in stocks 57 141 37 (Increase) / decrease in debtors (1,252) 20 (591) Decrease in creditors and provisions (603) (1,961) (4,612) Net cash inflow from operating activities 5,292 4,258 10,196 5. Analysis of net debt As at Cash Other non As at 1 July flow cash 31 December 2006 movements 2005 £'000 £'000 £'000 £'000 Cash at bank and in hand 11,435 1,179 (86) 10,342 Debt due in one year (5,000) - - (5,000) Debt due after one year (25,000) - - (25,000) Gross debt (30,000) - - (30,000) Net debt (18,565) 1,179 (86) (19,658) 6. Distribution of interim statement A copy of this statement will be posted to all shareholders and is available from the Company's registered office at Premier House, Darlington Street, Wolverhampton, WV1 4JJ. END This information is provided by RNS The company news service from the London Stock Exchange