Billington Regulatory News (BILN)

2 Aug 2006 07:00

AMCO Corporation PLC02 August 2006 AMCO CORPORATION PLC UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2006 CHAIRMAN'S STATEMENT RESULTS Total operating profits for the first half of 2006 of £4,638,000 were 86% up onthe profits of £2,495,000 for the first half of 2005. Profits before taxation of£4,675,000 were 100% up on the corresponding period for 2005. Structural Steel Structural steel activities had an extremely good first half and returnedoperating profits of £2,334,000. This was well in excess of expectations. Property Property investment and development returned operating profits of £1,940,000 ascompared with a break-even for the first half of 2005. Specialist Engineering Specialist engineering operating profits at £250,000 were substantially belowthe 2005 corresponding figures due mainly to the cessation of the UK coal miningbusiness in October 2005, start up costs on new long term contracts for NetworkRail and a shortage of work in the major projects division. Manufacturing There were modest operating profits of £30,000. Pension Schemes and Total Recognised Gains There were actuarial gains recognised in the pension schemes of £5,477,000before taxation and £3,834,000 after taxation. Having regard to the profits forthe period of £3,264,000 this resulted in total recognised gains for the firsthalf of 2006 of £7,098,000. Earnings per Share These were 28.0 pence compared with 13.7 pence for the corresponding period in2005 and 42.7 pence for the whole of 2005. DIVIDEND I am delighted to announce that the directors intend to pay a dividend of 7.0pence per share on 2 October 2006 to shareholders on the register on 1 September2006. LIQUIDITY AND CAPITAL RESOURCES Gearing at 30 June 2006 was nil, as at 30 June 2005 and 31 December 2005.Shareholders' funds increased from £10,043,000 at 1 January 2006 to £15,792,000at 30 June 2006. PROSPECTS Present indications are that the second half of 2006 will result in satisfactoryprofits and at this time we see no reason why a further dividend should not bepaid based on the 2006 results as a whole. Stuart N. Gordon2 August 2006 Consolidated profit and loss account(Unaudited) Six months to 30th Six months to 30th Twelve months to June 2006 June 2005 31st December 2005 £000 £000 £000Total turnover (including share of turnover injoint ventures) 68,936 59,289 126,028Less: Share of turnover in joint ventures (4,706) (2,242) (7,222)Group turnover 64,230 57,047 118,806Group operating profit 2,828 2,380 6,472Share of operating profit in joint ventures 1,810 115 739Total operating profit 4,638 2,495 7,211Net interest 19 (57) (68)Other finance income/(costs) 18 (103) (192)Profit on ordinary activities before taxation 4,675 2,335 6,951Taxation on profit on ordinary activities (1,411) (721) (1,971)Profit transferred to reserves 3,264 1,614 4,980Earnings per share 28.0p 13.7p 42.7pDividends per share 7.0p 0.0p 11.0p Consolidated balance sheet(Unaudited) 30th June 2006 30th June 2005 31st December 2005 £000 £000 £000Fixed assets Tangible assets 16,217 14,607 15,136 Investments 350 350 350 Investments in joint ventures: Share of gross assets 9,968 7,630 12,595 Share of gross liabilities (7,738) (6,424) (10,934) 2,230 1,206 1,661 18,797 16,163 17,147Current assets Stock and work in progress 18,305 13,728 11,381 Amounts recoverable on contracts 4,413 5,521 957 Debtors 14,127 12,949 15,823 Cash at bank and in hand 5,323 4,099 7,738 42,168 36,297 35,899Creditors: amounts falling due within one year (35,625) (30,874) (28,653)Net current assets 6,543 5,423 7,246Total assets less current liabilities 25,340 21,586 24,393Creditors: amounts falling due after more thanone year (1,761) (1,840) (1,710)Net assets excluding pension liability 23,579 19,746 22,683Pension liability (7,787) (12,408) (12,640)Net assets including pension liability 15,792 7,338 10,043 Capital and reservesCalled up share capital 1,293 1,293 1,293Share premium 1,864 1,864 1,864Capital redemption reserve 132 132 132Property revaluation reserve 3,284 3,284 3,284Other reserve (865) (624) (798)Profit and loss account 10,084 1,389 4,268Shareholders' funds 15,792 7,338 10,043 Summary consolidated cashflow statement(Unaudited) Six months to 30th Six months to 30th Twelve months to June 2006 June 2005 31st December 2005 £000 £000 £000Group operating profit 2,828 2,380 6,472Depreciation on tangible fixed assets 1,290 1,223 2,349Difference between pension charge and cashcontributions (1,438) (455) (908)Profit on sale of fixed assets (136) (70) (260)Movement in working capital (4,524) (923) 49Net cashflow from operating activities (1,980) 2,155 7,702Dividends from joint ventures 700 0 0Net cashflow from returns on investments andservicing of finance 19 (57) (68)Taxation (537) (135) (486)Net cashflow from capital expenditure andfinancial investment (1,157) (418) (797)Net cashflow before financing (2,955) 1,545 6,351Net cashflow from financing 540 (3,064) (4,231)(Decrease)/increase in cash (2,415) (1,519) 2,120 Notes 1. Reconciliation of net cashflow to movement innet funds /(debt)(Decrease)/increase in cash in the period (2,415) (1,519) 2,120Net cashflow on bank and other loans (1,430) 2,205 2,290Cash outflow on hire purchase 823 859 1,739Change in net funds /(debt) resulting fromcashflows (3,022) 1,545 6,149Inception of hire purchase (1,078) (721) (1,779)Movement in net funds /(debt) in the period (4,100) 824 4,370Net funds/(debt) at start of period 4,182 (188) (188)Net funds at end of period 82 636 4,182 2. Analysis of net funds /(debt)Cash at bank and in hand 5,323 4,099 7,738Bank and other loans (2,266) (921) (836)Hire purchase (2,975) (2,542) (2,720)Net funds 82 636 4,182 Statement of total recognised gains and losses(Unaudited) Six months to 30th Six months to 30th Twelve months to June 2006 June 2005 31st December 2005 £000 £000 £000Profit for the period 3,264 1,614 4,980Actuarial gain/(loss) recognised in the pensionschemes (see note) 5,477 (1,163) (1,858)Movement on deferred tax relating to pensionliability (2,080) 268 342Current tax relating to pension liability 437 81 215Total recognised gains for the period 7,098 800 3,679 Note Actuarial gain/(loss) recognised in the pensionschemesActual return less expected return on pensionscheme assets (59) 1,584 5,257Experience gains and losses arising on the schemeliabilities 33 (244) (415)Changes in assumptions underlying the presentvalue of the scheme liabilities 5,503 (2,503) (6,700) 5,477 (1,163) (1,858) Notes: 1. The financial information for the six months ended 30 June 2006 and the comparative figures for the six months ended 30 June 2005 are unaudited and have been prepared on the basis of the accounting policies set out in the statutory accounts for the year ended 31 December 2005 and have been approved by the Board. This financial information does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The financial statements for the year ended 31 December 2005 received an unqualified audit report and have been delivered to the Registrar of Companies. 2. Earnings per ordinary share have been calculated on the basis of profit for the period after tax, divided by the weighted average of ordinary shares in issue in the period, excluding those held in the ESOP Trust, of 11,662,508. The comparatives are calculated by reference to the weighted average of shares in issue which were 11,796,246 for the period to 30 June 2005 and 11,654,508 for the year ended 31 December 2005. 3. This statement is being sent to the shareholders of the Company and will be available at the Company's Registered Office at Amco House, Cedar Court Office Park, Denby Dale Road, Wakefield, West Yorkshire, WF4 3QZ. This information is provided by RNS The company news service from the London Stock Exchange