Chamberlin Plc Regulatory News (CMH)

9 Jun 2005 07:00

Chamberlin & Hill PLC09 June 2005 CHAMBERLIN & HILL PLC PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 MARCH 2005 Highlights • Turnover up 54% to £42m • Operating profit up 103% to £2.05 million • Basic earnings per share up 87% to 18.0p • Strong performance from Russell Castings acquisition • Dividend maintained at 11.85p for the year • Dividend cover increased to 1.5 times • Balance sheet remains strong Year to Year to 31 March 31 March 2005 2004 £000 £000 Turnover 41,970 27,311 Operating profit 2,046 1,007 Profit before taxation 1,986 1,013 Basic earnings per share 18.0p 9.6p Dividends per share 11.85p 11.85p Chairman's Statement When I reported to shareholders in November 2004, we expected that the activitylevels experienced in the first half would continue to be broadly similar forthe remainder of the year. In the event this was indeed the case, and I ampleased to report that, for the year ended 31 March 2005, it has allowed theGroup to record a significant improvement over the previous year despite thedifficulties arising from the escalating costs of raw materials and energy. Turnover for the group reached £42.0m (2004: £27.3m), a growth of 54%.Operating profit increased 103% to £2.05m (2004: £1.01m), while profit beforetax, after exceptional items of £325k relating primarily to restructuring of thefoundry divisions, and a net goodwill credit mainly arising from the Russellacquisition of £299k, was £1.99m (2004: £1.01m). Fully diluted earnings pershare rose to 18.0p. The balance sheet remains strong with net debt at the yearend of £42k (2004: net cash £482k) after the purchase of Russell Castings for£1.12m in cash, and capital investment of £1.25m. The Board is recommending an unchanged final dividend of 8.0p per share (11.85ptotal for the year) payable on 29 July 2005 to shareholders on the register asat the close of business on 8 July 2005. The largest contributor to the Group's welcome return to growth was an excellentperformance from Russell Castings, which we acquired on 2 April 2004. RussellCastings has fully lived up to our initial expectations and continues todemonstrate that it was a sound investment. Synergy opportunities and plans forlonger term integration of our foundry activities continue to be developed. TheWalsall foundry and PFP Electrical Products, our specialised lighting business,also showed welcome progress. An improvement in demand was accompanied by very substantial increases in thecosts of our raw materials and energy. Difficulties and delays in recoveringthese cost rises have had the inevitable effect of reducing net margins. At thetime of writing there has been a lull in cost increases, although uncertaintyremains over their future direction. The Group is presently operating in line with budgeted levels of sales andprofitability. We currently anticipate activity to remain broadly similar forthe foreseeable future and if this proves to be the case, we anticipate anotheryear of underlying progress. In addition, we will continue to seek newopportunities to use the Group's strong balance sheet to further enhanceearnings. Tom BrownChairman9 June 2005 Consolidated Profit and Loss Accountfor the year ended 31 March 2005 Goodwill Before amortisation goodwill and and other negative Other exceptional goodwill exceptional Year ended 31 items release items Total March 2004 £000 £000 £000 £000 £000Turnover - continuing activities 30,788 30,788 27,311 - acquisition 11,182 11,182 - 41,970 41,970 27,311Cost of sales (34,831) (34,831) (22,526) Gross Profit 7,139 7,139 4,785Other operating expenses (5,067) 299 (325) (5,093) (3,778) Operating profit - continuing activities 1,290 (13) (325) 952 1,007 - acquisition 782 312 1,094 - Total operating profit 2,072 299 (325) 2,046 1,007 Interest (payable)/receivable (60) (60) 6 Profit on ordinary activitiesbefore taxation 2,012 299 (325) 1,986 1,013 Taxation (656) (106) 97 (665) (306) Profit on ordinary activitiesafter taxation 1,356 193 (228) 1,321 707 Dividends (872) (871) Transfer to/(from) reserves 449 (164) Earnings per share: basic 18.0p 9.6p adjusted 18.5p 9.8p diluted 18.0p 9.6p adjusted 18.4p 9.8p dilutedDividend per share 11.85p 11.85p - interim paid 3.85p - final proposed 8.00p Dividend cover 1.52 0.81 All items dealt with in arriving at the operating profit for both 2005 and 2004relate to continuing activities. The group has no material recognised gains or losses other than the profit forthe year as disclosed. Consolidated Balance SheetAt 31 March 2005 31 March 2005 31 March 2004 £000 £000 £000 £000Fixed assetsIntangible assets - goodwill 188 201 - negative goodwill (105) - 83 201Tangible assets 9,042 8,770 9,125 8,971 Current assetsStocks 5,055 3,496Debtors 9,325 6,656Cash at bank and in hand 1 482 14,381 10,634 Creditors: amounts falling due within one year (8,819) (5,389)Net current assets 5,562 5,245Total assets less current liabilities 14,687 14,216Provisions (726) (734) Net assets 13,961 13,482 Capital and reservesCalled up share capital 1,840 1,835Share premium account 743 718Capital redemption reserve 109 109Revaluation reserve 575 583Profit and loss account 10,694 10,237Equity shareholders' funds 13,961 13,482 Consolidated Cash Flow StatementFor the year ended 31 March 2005 2005 2004 £000 £000 £000 £000 Net cash inflow from operating activities 2,942 2,001Return on investments and servicing of financeInterest paid (70) (8)Interest received 10 14 Net cash (outflow)/inflow from returns oninvestments and servicing of finance (60) 6 TaxationUK Corporation Tax paid (278) (247) Acquisition of business and assets of RussellCastings (1,116) - Capital expenditure and financial investmentPurchase of fixed assets (1,248) (1,147)Disposal of fixed assets 76 49 Net cash outflow from capital expenditure andfinancial investment (1,172) (1,098) Equity dividends paid (870) (871) Net cash flow before financing (554) (209)FinancingIssue of shares (including premium) 30 - Net cash inflow from financing 30 - Decrease in cash and bank balance (524) (209) Reconciliation of operating profit to net cashflowfrom operating activities Operating profit 2,046 1,007Depreciation 1,654 1,377Amortisation (299) 14Profit on disposal of fixed assets (1) (4)Government grants credited - (3)(Increase)/Decrease in stocks (674) (214)(Increase)/Decrease in debtors (950) (1,033)Increase/(Decrease) in creditors 1,116 857Increase/(Decrease) in provisions 50 - 2,942 2,001 There were no activities which would fall under the heading of "management ofliquid resources" during the year. Notes: 1 The results for the year to 31 March 2005 have been extracted from the financial statements for the year which have been audited and will be filed with the Registrar of Companies. The results for the year to 31 March 2004 are an abridged version of the Company's full accounts for that year which have been filed with the Registrar of Companies. The auditors' opinion on those accounts was unqualified and did not include a statement under Section 237 (2) or (3) of the Companies Act 1985. 2 The calculation of basic earnings per share is based on the profit after tax of £1,321,000 (2004: £707,000) and a weighted average of 7,347,398 shares (2004: 7,340,908) in issue during the year. Adjusted earnings per share is calculated after adjusting the profit to exclude exceptional items, the amortisation or release of goodwill and the taxation effects of those adjustments. The adjusted profit figure used was £1,356,000 (2004: £721,000). 3 The full published accounts will again include the transitional provisions of FRS 17 (Retirement Benefits). If FRS 17 had been fully adopted during the year, the effect of making provision for the funding deficit in the staff pension scheme would have resulted in the recognition of a net liability in the balance sheet of the Group of £2,324,000 (2004: £2,001,000). 4 A copy of the Annual Report and Accounts for the year ended 31 March 2005 is expected to be posted to shareholders in week commencing 28 June 2005. The Annual General Meeting will be held on Friday 29 July 2005. 5 Subject to shareholders' approval at the Annual General Meeting, the dividend will be paid on 29 July 2005 to ordinary shareholders on the register at the close of business on 8 July 2005. This information is provided by RNS The company news service from the London Stock Exchange