ESR.L Regulatory News (ESR)

11 Dec 2009 07:00

Ensor Holdings PLC ("Ensor" or "the Group") Interim Results for the Period ended 30 September 2009

Chairman's Statement

RECOVERY

I am pleased to report that the half year to 30 September 2009 has seen good progress for Ensor with the Group now on an upward trend having seen sales improve against the second half of last year. Although marginally loss-making in the first quarter, the second quarter results showed a significant improvement producing an operating profit of 188,000 for the period. This result is, of course, a considerable improvement compared with the losses in the full year to 31 March 2009 previously reported.

This time last year I said that the markets that we operated in had significantly slowed but that we had not experienced the full effect of this downturn. It was in the second half of our financial year that we felt the full impact of the recession which saw the Group's continuing activities only breaking even. This makes the positive result this time all the more encouraging.

Hard work by the Ensor management team under the leadership of our new CEO, Roger Harrison, who was appointed in February 2009, including stronger cost controls, manpower control, stronger buying and stock control has led to efficiencies across the Group and contributed to the turn around.

Our cash flow is good and our borrowings have reduced during the last six months leaving our gearing at 18% compared with 27% at our last year end. Our debtor position is controlled but we remain careful about giving credit due to the continuing shortage of cash in all markets.

The charge for financial expenses shown in our result is made up of lower interest of 36,000 (2008: 47,000) on reduced borrowings and an increased charge of 81,000 (2008: 15,000) relating to our pension scheme as a result of the reduction in value of the pension investments following the banking crisis.

During the period we disposed of a subsidiary company, Powerplus, which was not contributing fully to the business. This disposal had no impact on our balance sheet. At the end of last year we closed one of our subsidiaries, Hawkins Salmon, the company mainly responsible for previous Group losses. However, we retained two important and valuable properties, previously used by Hawkins Salmon, and we are currently looking at ways to maximise the return from these assets.

During the next half year, we hope to see a further improvement in profits and a strengthening of the balance sheet as the remaining companies in the Group are now performing well. However, many indicators suggest that the national economy is not out of recession yet. I believe Ensor is now well positioned to take advantage when it does fully recover and we are again actively looking for suitable acquisitions to strengthen the Group.

It is our intention to resume dividend payments as soon as possible, but I feel that it would be prudent not to pay an interim dividend this time. We hope to have a positive review of dividend policy at our March year end.

This has been a testing period for shareholders, staff and management. I thankthem all for their effort, support and dedication to the improvements beingachieved.K A Harrison TDChairman11 December 2009Enquiries:Ensor Holdings plc 0161 945 5953 Roger Harrison / Marcus Chadwick Westhouse Securities Limited 0113 246 2610 Tim Feather tim.feather@westhousesecurities.com Matthew Johnson matthew.johnson@westhousesecurities.com

Condensed Group Income Statement

for the six months ended 30 September 2009

Note Unaudited Unaudited Audited 6 months 6 months 12 months 30/9/09 30/9/08 31/3/09 GBP'000 restated GBP'000 GBP'000 Revenue 10,020 11,837 21,706 Cost of sales (7,449) (8,605) (15,644) ----------- ----------- ----------- Gross profit 2,571 3,232 6,062 Distribution costs (404) (492) (1,068) Administrative expenses (1,979) (2,113) (4,374) ----------- ----------- ----------- Operating profit 188 627 620 Financial expenses (117) (62) (120) ----------- ----------- ----------- Profit before tax 71 565 500 Income tax expense 2 (10) (173) (47) ----------- ----------- ----------- Profit for the period for 61 392 453continuing operations Loss for the period on 4 - (570) (2,732)discontinued operations ----------- ----------- ----------- Profit/(loss) for the period 61 (178) (2,279)attributable to equity shareholders ====== ====== ====== Earnings/(loss) per share 3 Basic and fully diluted 0.2p (0.6p) (7.8p) ====== ====== ======

Condensed Group Statement of Comprehensive Income

for the six months ended 30 September 2009

Profit/(loss) for the period 61 (178) (2,279) Other comprehensive income: Actuarial gain and related deferred tax - - (1,521) ----------- ----------- -----------

Total comprehensive income attributable 61 (178) (3,800) to equity sharesholders

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Condensed Group Balance Sheet

at 30 September 2009 Unaudited Unaudited Audited 30/9/09 30/9/08 31/3/09 GBP'000 GBP'000 GBP'000 ASSETS Non-current assets Property, plant & equipment 4,181 5,919 4,231 Intangible assets 2,438 3,147 2,438 ----------- ----------- ----------- Total non-current assets 6,619 9,066 6,669 ----------- ----------- ----------- Current assets Assets held for sale 742 - 1,050 Inventories 2,689 4,523 2,769 Trade and other receivables 4,492 5,628 4,571 ----------- ----------- ----------- Total current assets 7,923 10,151 8,390 ----------- ----------- ----------- Total assets 14,542 19,217 15,059 ====== ====== ====== LIABILITIES Non-current liabilities Retirement benefit obligations (1,905) (402) (1,980) Deferred tax (102) (159) (118) ----------- ----------- ----------- Total non-current liabilities (2,007) (561) (2,098) ----------- ----------- ----------- Current liabilities Cash and cash equivalents (1,413) (2,318) (2,099) Trade and other payables (3,339) (4,694) (3,140) ----------- ----------- ----------- Total current liabilities (4,752) (7,012) (5,239) ----------- ----------- ----------- Total liabilities (6,759) (7,573) (7,337) ====== ====== ====== NET ASSETS 7,783 11,644 7,722 ====== ====== ====== Equity Share capital 2,945 2,945 2,945 Share premium 470 470 470 Revaluation reserve 571 871 571 Retained earnings 3,797 7,358 3,736 ----------- ----------- ----------- Total equity attributable to equity 7,783 11,644 7,722shareholders ====== ====== ======

Condensed Group Cash Flow Statement

for the six months ended 30 September 2009

Unaudited Unaudited Audited 6 months 6 months 12 months 30/9/09 30/9/08 31/3/09 GBP'000 GBP'000 GBP'000 Cash flows from operating activities Continuing operations 431 (281) 805 Discontinued operations 196 (232) (1,021) ----------- ----------- ----------- Net cash generated from/(absorbed by) 627 (513) (216)operating activities ----------- ----------- ----------- Cash flows from investing activities Proceeds from disposal of property, 30 53 43plant & equipment Proceeds from disposal of assets held 234 - -for sale Acquisition of property, plant & (130) (194) (278)equipment Deferred consideration on acquisition of - (100) (100)going concern ----------- ----------- ----------- Net cash generated from/(absorbed by) 134 (241) (335)investing activities ----------- ----------- ----------- Cash flows from financing activities Equity dividends paid - (230) (230)

Contribution to pension scheme in excess (75) (128) (112) of charge to income

----------- ----------- ----------- Net cash absorbed by financing (75) (358) (342)activities ----------- ----------- ----------- Net increase/(decrease) in cash and 686 (1,112) (893)equivalents

Cash and cash equivalents at beginning (2,099) (1,206) (1,206) of period

----------- ----------- ----------- Cash and cash equivalents at end of (1,413) (2,318) (2,099) period ====== ====== ======

Condensed Group Statement of Changes in Equity

for the six months ended 30 September 2009

Attributable to equity holders of the parent

Issued Share Revaluation Retained Total Capital Premium Reserve Earnings Equity GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Balance as at 1 April 2,945 470 571 3,736 7,7222009 Total comprehensive - - - 61 61income _____ _____ _____ _____ _____ Balance at 30 September 2,945 470 571 3,797 7,7832009 _____ _____ _____ _____ _____Balance as at 1 April 2,945 470 871 7,766 12,0522008 Total comprehensive - - - (178) (178)income Dividends - - (230) (230) _____ _____ _____ _____ _____ Balance at 30 September 2,945 470 871 7,358 11,6442008 _____ _____ _____ _____ _____Balance as at 1 April 2,945 470 871 7,766 12,0522008 Total comprehensive - - - (3,800) (3,800)income Revaluation of land & - - (300) - (300)buildings Dividends - - - (230) (230) _____ _____ _____ _____ _____ Balance at 31 March 2009 2,945 470 571 3,736 7,722 _____ _____ _____ _____ _____

Notes to the Interim Report

1. Basis of preparation

The unaudited results for the six months have been prepared in accordance with International Financial Reporting Standards ("IFRS") and do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The interim report has not been prepared in accordance with IAS 34, "Interim Financial Reporting" in that it does not contain full disclosure of accounting policies and does not detail compliance with other standards. These disclosures are dealt with in the Group's annual report. The statutory accounts for the year ended 31 March 2009, prepared under IFRS, have been delivered to the Registrar of Companies and received an unqualified audit report.

2. Income tax expense

The income tax expense is calculated using the estimated tax rate for the year ended 31 March 2010.

3 Earnings/(loss )per share

The calculation of earnings/(loss) per share for the period is based on the profit/(loss) for the period divided by the weighted average number of ordinary shares in issue, being 29,445,659 (6 months to 30 September 2008 - 29,445,659 and year ended 31 March 2009 - 29,445,659). The fully diluted loss per share is based upon the weighted average of 29,549,830 shares (6 months to 30 September 2008 - 29,955,405 and year ended 31 March 2009 - 29,644,111). The dilution is due to subsisting share options.

4 Discontinued operations

Administrators were appointed to Hawkins-Salmon Limited, a wholly-owned subsidiary of Ensor Holdings PLC, on 31 March 2009, pursuant to a resolution of the directors. The assets have now been substantially realised.

During February and March 2009, negotiations were undertaken for the disposal the business and assets of Powerplus (UK) Limited, also a wholly-owned subsidiary of Ensor Holdings PLC. The sale was completed on 5 May 2009.

The Group Income Statement for the six months ended 30 September 2008 has been restated to show the discontinued operations separately from continuing operations.