23 Oct 2008 07:00
GSH Group plc
PRELIMINARY RESULTS 2008
INTRODUCTION
GSH Group plc ("the Group" or "GSH") the international provider of bespoke facilities management and energy management solutions, announces preliminary results for the year ended 31 July 2008.
FINANCIAL HIGHLIGHTS:
Underlying profit* before tax rose by 37% to £11.1 million
Revenue increased to £200.4 million, up by 27%
Year end cash reserves stood at £15.0 million
Operating margin increased to 5.6% (2007: 5.2%)
Basic adjusted earnings per share of 36.6 pence, up by 19%
Proposed final dividend of 7.6 pence
Total dividend of 10.5 pence, up by 19%
* Underlying profit is defined as profit before adjustments in respect of non-trading items.
OPERATIONAL HIGHLIGHTS:
Healthy growth across all operating divisions
Order book at £757 million, up £148 million (2007: £609 million)
Acquisition of Utilitec BV in July 2008
New contracts with General Motors, Corus, Archon, Advance Realty Group and The Royal College of Surgeons
Extensions to contracts with HBoS, Thomas Cook, Pfizer and KPN
Further investment in people and products
Rob Painting, interim Non-Executive Chairman of GSH said:
"Once again we have demonstrated that the Group is in good shape with a solid set of results based predominantly on profitable organic growth in the period. Our overseas growth in particular is an exciting aspect and the Board believes that we are well positioned to capitalise on this and other new geographic markets."
For further information, please contact:
GSH Group plc Tel: 01782 200455
Chris McLain/Jamie Reynolds, co-Chief Executive Officers
Bell Pottinger Corporate & Financial
Nick Lambert/Chris Hamilton Tel: 020 7861 3232
KBC Peel Hunt
Julian Blunt/Daniel Harris Tel: 020 7418 8912
CHAIRMAN'S STATEMENT
Introduction
I am delighted to announce a further record year of full year results to the shareholders of GSH Group plc.
The Group once again performed strongly during the period to deliver record full year financial results with profits before tax of £10.3 million and basic adjusted earnings per share of 36.6 pence, representing increases of 28% and 19% respectively compared to the prior full financial year. Cash reserves remain very healthy at £15 million at the end of the year. 2008 was our seventh consecutive year of revenue and profits growth.
During the year we experienced significant levels of organic growth across all our geographic segments with the US especially showing an impressive 92% year-on-year increase in revenue. In addition, our Continental European business acquired Utilitec BV, the Netherlands based specialist mechanical and electrical installation business, in July 2008. This will provide significant opportunities for the existing GSH Netherlands business and further strengthens our international service offering.
Financial Results
Our results are summarised in the table below:
| 31 July 2008 | Growth on 31 July 2007 | |
| Revenue | £200.4m | 27% |
| Underlying profit before tax | £11.1m | 37% |
| Profit before tax | £10.3m | 28% |
| Basic adjusted earnings per share | 36.6p | 19% |
| Dividend per share | 10.5p | 19% |
Dividend
In line with our progressive dividend policy the Board is proposing a final dividend of 7.6p (2007: 6.2p) an increase of 23%. If approved at the Annual General Meeting on 17 December 2008, the dividend will be paid on 23 January 2009 to shareholders on the register at close of business on 5 January 2009.
Including the interim dividend of 2.9p (2007: 2.6p), paid on 16 May 2008, total dividends per share for the year will be 10.5p (2007: 8.8p), up 19%. This is GSH's fourth consecutive year of dividend increase which reflects the Group's continuing growth and an acknowledgement of our continued confidence in the Group's businesses.
Corporate Responsibility
The Board is committed to achieving the highest standards of Corporate Governance throughout the Group. Our commitment as a responsible and considerate employer is demonstrated by our ongoing investment in health and safety, risk management and ensuring that appropriate systems of internal controls are in place. GSH operates in a highly regulated industry and maintains the highest professional standards in all its operations and we will continue to set and comply with these standards.
Board Changes
During the course of the year the Board has undergone a comprehensive restructuring as the Group faces up to the new challenges ahead. On 13 October 2008 we announced the appointment of Chris McLain and Jamie Reynolds as co-Chief Executive Officers following the resignation with immediate effect of Colin Tennent as Chief Executive Officer.
Chris has held a number of senior positions throughout the Group and has been instrumental in the success and growth of the business in recent years. He has extensive knowledge of the energy and facilities management sector. Chris has worked for GSH for 18 years and will take over responsibility for the Group's UK & Eire operations.
Jamie, previously the President of the Group's US business, will head up our existing operations in Europe and the US and also focus on further international opportunities. Jamie joined GSH in 1993 and has over 15 years experience in the energy and facilities management sector.
On 20 October 2008 I was appointed interim Non-Executive Chairman from the position of Senior Non-Executive Director. This followed the resignation of John Kelly as Non-Executive Chairman on 13 October 2008 and also earlier in the year the stepping down from the Board of then Non-Executive Chairman Stuart Graham to pursue other business commitments and opportunities. Non-Executive Director Duncan Hall also stepped down from the Board on 13 October 2008. On 20 October 2008, David Simons resigned as Chief Financial Officer and following brief periods as acting CEO and interim Chairman. David will continue to be employed by GSH to ensure an orderly handover and expects to leave the Group in twelve months. The Group is currently in the process of recruiting a permanent Chief Financial Officer and an appointment will be announced in due course.
The Board would like to thank all the former Board members for their contributions with particular recognition to Colin and David's roles in the Group's development. We wish them every success in the future.
The Board has embarked on the path of identifying some further Non-Executive Directors with the suitable attributes and experience to support our ambitious plans for further growth.
People
I am always impressed by the outstanding levels of service that GSH provides to its clients combined with the dedication and commitment demonstrated by our people. On behalf of the Board I would like to thank them for their efforts and hard work over this last year, helping us maintain our position as a leading provider of technical facilities services and energy management. There are more than 2,000 people directly employed across the Group and the long-term partnerships we have forged with our impressive and growing portfolio of Blue Chip clients would not be possible without such committed and talented individuals.
Outlook
We enter the new financial year with a robust business and a strong pipeline and contracted order book. Despite the worrying economic climate we are confident that the demand for our services and the opportunities for further growth within our current geographic footprint will continue. Looking forward, we also are keen to grow the Group further, developing our overseas presence.
Rob Painting
Interim Non-Executive Chairman
23 October 2008
co-CHIEF EXECUTIVE OFFICERS' STATEMENT
Introduction
This is our first announcement to the shareholders of GSH as co-Chief Executive Officers, following our appointment on 13 October 2008. We have both held a number of senior positions throughout the Group and between us we have over 35 years of experience in the energy and facilities management sector.
The strength of our business model has enabled GSH to deliver another record year of double-digit growth in both revenue and underlying profit. Revenue is up 27% to £200.4 million and underlying profit before tax is up 37% to £11.1 million.
Operational Review
UK & Eire
UK & Eire revenue is up 23% to £153.5 million (2007: £125.3 million) and underlying profit increased by 31% to £9.3 million (2007: £7.1 million).
We have experienced significant growth across all our operating divisions and our strategic focus on the provision of targeted market solutions to existing and new clients has further strengthened our position in the marketplace. This is evident from contract extensions in the second half of the financial year with HBoS, Pfizer and Thomas Cook. We have not only been awarded additional properties within the respective portfolios but also the provision of additional services.
The investment in Information Communication and Technology (ICT) during the period has supported our ongoing innovations in terms of service delivery and customer service. The upgrade of our asset management system Maximo and wireless hand-held technology is strengthening our operational capabilities and ensures we continue to lead the marketplace in terms of innovative technology driven solutions.
The commercial activity in the UK & Eire is strong with a number of new contracts agreed, started and being mobilised this year. The current pipeline is strong with very healthy prospects.
International
Our International business now has the required scale to be a key driver of future growth for the Group. This year our operations in the US and Continental Europe delivered very strong increases in revenue of 46% to £46.9 million (2007: £32.1 million).
We have made solid progress in the US where revenue increased by an impressive 92% to $39.0 million (2007: $20.3 million). This was primarily due to a number of energy management contract wins including Advance Realty Group, Meritage Properties, Principal Global Investors, Archon and Nexus. In the final quarter, we were awarded a facilities management contract with Simon Malls, the largest public real estate company in the US.
2008 has been a good year for our operations in Continental Europe. Revenue increased by 26% and underlying profit before taxation is up 82% to £1.9 million (2007: £1.0 million). We have been awarded a number of major new contract wins and contract extensions including; Corus, General Motors, Global Switch, KPN and Schiphol Airport.
In July 2008 we acquired Utilitec, a mechanical and electrical installation business based in Utrecht, Netherlands. Utilitec is a highly regarded total installation integrator, working as a project manager for commercial clients and datacentres. The acquisition of Utilitec has strengthened the existing project management and installation division.
The commercial activity in both the US and Continental Europe is encouraging and we are confident of converting further tenders in the near future.
Outlook
The Group has experienced a positive start to the new financial year and there is a healthy commercial pipeline for our services.
GSH is equipped to cope with changing market conditions and, whilst the current economic climate is a concern, we look forward to the future with confidence. Our energy management services continue to attract considerable interest across the Group and offer significant opportunities for further growth.
FINANCIAL REVIEW
Revenue up 27% to £200.4 million
Underlying profit before tax increased by 37% to £11.1 million
Basic adjusted earnings per share of 36.6 pence
Cash reserves at year end £15.0 million
Proposed final dividend of 7.6 pence
Introduction
The Group's revenue, profitability and operating margins all showed healthy growth during the year and cash management continued to be very positive.
Underlying profit before tax of £11.1 million was up 37% on last year (2007: £8.2 million) reflecting the continuing focus on top line growth combined with close management of indirect costs and overheads. Conversion of profit to cash was also healthy with an EBITDA to operating cash ratio of 126% (2007: 95%).
Revenue
In the year ended 31 July 2008 revenue increased by 27% to a record £200.4 million (2007: £157.4 million). All geographic areas of the Group recorded strong organic growth.
Acquisitions
In July 2008 we acquired Utilitec BV, the Netherlands based specialist mechanical and electrical installation business. This will provide opportunities for the existing GSH Netherlands business and further strengthens our international service offering.
Profitability
Underlying profit before tax for the Group in the year increased by 37% to £11.1 million (2007: £8.2 million). The main part representing 77% of the Group revenues and profitability is derived from business activities in the UK & Eire where underlying profit before tax was up 31% to £9.3 million (2007: £7.1 million). As regards our overseas businesses, our operations in Continental Europe contributed an underlying profit before tax of £1.9 million (2007: £1.0 million), an increase of 82% over the previous year. In 2008 we invested further in our US operations and revenue increased by 93% to $39.0 million (2007: $20.2 million).
The trend upwards in operating margin continued with an increase of 8% to 5.6% (2007: 5.2%).
There was a share based payment charge in the year of £851k which has been ignored in the calculation of underlying profit.
Taxation
The effective tax rate for the year was 31.7% (2007: 25.5%).
Earnings per share
Basic adjusted earnings per share at 36.6 pence (2007: 30.7 pence) increased by 19% and adjusted diluted earnings per share of 35.8 pence (2007: 30.3 pence) was 18% up in the year.
Dividend
The Board believes that we should maintain the Group's progressive dividend policy and therefore recommends a final dividend of 7.6 pence per share (2007: 6.2 pence) payable on 23 January 2009 to all shareholders on the register at 5 January 2009. The interim dividend of 2.9 pence per share (2007: 2.6 pence) was paid on 16 May 2008, making a total dividend of 10.5 pence per share (2007: 8.8 pence). The dividend is covered 3.1 times by earnings (2007: 3.4 times).
Cash and Cash Management
There were some significant cash flows during the year. Investing activities of £6.3 million includes capital expenditure of £2.8 million, the purchase of Utilitec BV for an initial consideration of £1.6 million and the deferred consideration of £0.4 million in respect of KMH Systems LLC.
Dividends totaling £2.0 million and corporation tax of £2.7 million were paid during the year.
Cash flow from operations in the year was again good with close control of working capital and the operating cash flow of £14.2 million was a healthy 126% (2007: 95%) of EBITDA.
At the end of the year the Group had £15.0 million of cash reserves.
Balance Sheet
Net assets have increased by £4.4 million to £22.3 million (2007: £17.9 million). This increase is predominantly due to retained earnings in the period.
Chris McLain
Jamie Reynolds
co-Chief Executive Officers
CONSOLIDATED INCOME STATEMENT
For the year ended 31 July 2008
| Note | 2008 £000 | 2007 £000 | |
| REVENUE - CONTINUING OPERATIONS | 1, 2 | 200,434 | 157,401 |
| Direct costs | (153,858) | (118,168) | |
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|
| ||
| GROSS PROFIT | 46,576 | 39,233 | |
| Administrative expenses | (35,301) | (31,120) | |
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| ||
| PROFIT FROM OPERATIONS - CONTINUING OPERATIONS | 11,275 | 8,113 | |
| Finance income | 55 | 254 | |
| Finance costs | (186) | (206) | |
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| UNDERLYING PROFIT | 11,144 | 8,161 | |
| Pension gain | - | 132 | |
| Share based payment charge | (851) | (254) | |
|
|
| ||
| PROFIT BEFORE TAXATION | 10,293 | 8,039 | |
| Tax expense | 3 | (3,263) | (2,050) |
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|
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| PROFIT FOR THE FINANCIAL YEAR | 7,030 | 5,989 | |
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| ||
| PROFIT ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | 7,030 | 5,989 | |
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| ||
| EARNINGS PER ORDINARY SHARE | |||
| - Basic | 5 | 32.6p | 29.9p |
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| - Diluted | 5 | 31.9p | 29.5p |
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CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
For the year ended 31 July 2008
| | | 2008 £000 | 2007 £000 |
| | | | |
| PROFIT FOR THE FINANCIAL YEAR | | 7,030 | 5,989 |
| Actuarial (loss) / gain on retirement benefit obligations | | (268) | 121 |
| Deferred tax on actuarial loss / (gain) | | 39 | (36) |
| Deferred tax on share awards | | - | 106 |
| Exchange differences on the retranslation of overseas undertakings | | 479 | 85 |
| | | | |
| TOTAL RECOGNISED INCOME AND EXPENSE FOR THE YEAR | 7,280 | 6,265 | |
| | | | |
| | | | |
| ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | | 7,280 | 6,265 |
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CONSOLIDATED BALANCE SHEET
At 31 July 2008
| Note | 2008 | 2007 | ||||||
| ASSETS | £000 | £000 | £000 | £000 | ||||
| NON CURRENT ASSETS | ||||||||
| Intangible assets | 8,662 | 7,029 | ||||||
| Property, plant and equipment | 7,053 | 4,895 | ||||||
| Investments | 44 | 44 | ||||||
| Deferred taxation | 226 | 368 | ||||||
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| |||||||
| TOTAL NON CURRENT ASSETS | 15,985 | 12,336 | ||||||
| CURRENT ASSETS | ||||||||
| Inventories | 4,977 | 3,648 | ||||||
| Trade and other receivables | 45,082 | 32,403 | ||||||
| Short term investments | 588 | 494 | ||||||
| Cash and cash equivalents | 15,022 | 11,890 | ||||||
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| |||||||
| TOTAL CURRENT ASSETS | 65,669 | 48,435 | ||||||
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| |||||||
| TOTAL ASSETS | 81,654 | 60,771 | ||||||
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| LIABILITIES | ||||||||
| CURRENT LIABILITIES | ||||||||
| Trade and other payables | (56,835) | (40,272) | ||||||
| Financial liabilities | - | (53) | ||||||
| Current taxation | 6 | (1,702) | (1,319) | |||||
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| |||||||
| TOTAL CURRENT LIABILITIES | (58,537) | (41,644) | ||||||
| NON CURRENT LIABILITIES | ||||||||
| Financial liabilities | - | (59) | ||||||
| Provisions | (371) | (832) | ||||||
| Retirement benefit obligations | (467) | (315) | ||||||
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| |||||||
| TOTAL NON CURRENT LIABILITIES | (838) | (1,206) | ||||||
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| |||||||
| TOTAL LIABILITIES | (59,375) | (42,850) | ||||||
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| |||||||
| NET ASSETS | 22,279 | 17,921 | ||||||
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| EQUITY | ||||||||
| Share capital | 7 | 216 | 216 | |||||
| Share premium account | 7 | 5,364 | 5,364 | |||||
| Capital redemption reserve | 7 | 682 | 682 | |||||
| Investment in own shares | 7 | (1,880) | (86) | |||||
| Share based payments reserve | 7 | 1,178 | 363 | |||||
| Translation reserve | 7 | 637 | 158 | |||||
| Retained earnings | 7 | 16,082 | 11,224 | |||||
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| EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | 22,279 | 17,921 | ||||||
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CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 July 2008
| | | 2008 | 2007 | ||||
| | | £000 | £000 | £000 | £000 | ||
| CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | ||
| Profit before taxation | | 10,293 | | 8,039 | | ||
| Adjustments for: | | | | | | ||
| Depreciation | | 740 | | 589 | | ||
| Amortisation of intangibles | | 119 | | 112 | | ||
| Share based payments charge | | 851 | | 254 | | ||
| Finance income | | (55) | | (254) | | ||
| Finance costs | | 186 | | 206 | | ||
| | | | | | | ||
| CASH FLOWS FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL | | | 12,134 | | 8,946 | ||
| Changes in working capital: | | | | | | ||
| (Increase)/decrease in inventories | | | (1,650) | | 2,779 | ||
| Increase in trade and other receivables | | | (10,044) | | (8,820) | ||
| Increase in trade and other payables | | | 14,278 | | 5,322 | ||
| Decrease in provisions | | | (543) | | (1) | ||
| | | | | | | ||
| CASH GENERATED FROM OPERATIONS | | | 14,175 | | 8,226 | ||
| Finance costs | | | (186) | | (206) | ||
| Income tax paid | | | (2,739) | | (2,048) | ||
| | | | | | | ||
| NET CASH GENERATED FROM OPERATING ACTIVITIES | | 11,250 | | 5,972 | |||
| | | | | | | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | ||
| Finance income received | | 55 | | 254 | | ||
| Purchase of intangible assets | | (144) | | (63) | | ||
| Purchase of property, plant and equipment | | (2,764) | | (1,124) | | ||
| Sale of property, plant and equipment | | 108 | | 91 | | ||
| Deferred consideration paid | | (395) | | - | | ||
| Purchase of subsidiary undertakings | | (1,605) | | (5,239) | | ||
| Cash acquired with subsidiary undertakings | 921 | | 1,159 | | |||
| Payments for short term performance bonds and asset funding | (2,436) | | (494) | | |||
| | | | | | | ||
| NET CASH USED IN INVESTING ACTIVITIES | | | (6,260) | | (5,416) | ||
| | | | | | | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | ||
| Finance lease rental payments | | - | | (70) | | ||
| Equity dividends paid | | (1,963) | | (1,560) | | ||
| Issue of ordinary share capital | | - | | 3,971 | | ||
| Receipts from exercised share options | | 1 | | 33 | | ||
| Payments to acquire own shares | | (238) | | (12) | | ||
| Sale of treasury shares | | 8 | | 867 | | ||
| | | | | | | ||
| NET CASH (USED IN)/GENERATED FROM FINANCING ACTIVITIES | | | (2,192) | | 3,229 | ||
| | | | | | | ||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,798 | | 3,785 | ||||
| Cash and cash equivalents at start of year | | | 11,890 | | 8,200 | ||
| Effect of exchange rates on cash and cash equivalents | | | 334 | | (95) | ||
| | | | | | | ||
| CASH AND CASH EQUIVALENTS AT END OF YEAR | 15,022 | | 11,890 | ||||
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| 1. | REVENUE | 2008 £000 | 2007 £000 |
| Facilities management | 140,819 | 121,692 | |
| Projects | 14,566 | 16,966 | |
| Energyplus | 45,049 | 18,743 | |
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| 200,434 | 157,401 | ||
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| 2. | SEGMENTAL REPORT |
For management purposes, the Group's primary segments are analysed by geographical markets in which the business operates. The Group's risks and rates of return are affected predominantly by the countries in which it operates. As a result the group's primary reporting format is geographical segments. The Group's revenue, profit before taxation and net assets were all derived from its principal activities. Segmental information is presented using Group policies.
| Primary reporting format: Geographical Segments | UK and Eire | Continental Europe | USA | Total |
| 2008 | £000 | £000 | £000 | £000 |
| EXTERNAL REVENUE | 153,581 | 27,352 | 19,501 | 200,434 |
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| PROFIT FROM OPERATIONS | 9,378 | 1,897 | - | 11,275 |
| Finance income | 28 | 8 | 19 | 55 |
| Finance costs | (141) | (20) | (25) | (186) |
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| UNDERLYING PROFIT | 9,265 | 1,885 | (6) | 11,144 |
| Pension curtailment gain | - | - | - | - |
| Share based payment charge | (664) | (53) | (134) | (851) |
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| PROFIT BEFORE TAXATION | 8,601 | 1,832 | (140) | 10,293 |
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| TOTAL ASSETS | 61,541 | 13,324 | 6,789 | 81,654 |
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| TOTAL LIABILITIES | (40,988) | (10,163) | (8,224) | (59,375) |
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| Other segment items | ||||
| Capital expenditure | 2,399 | 1,760 | 61 | 4,220 |
| Depreciation expense | 558 | 144 | 38 | 740 |
| Amortisation expense | 80 | 39 | - | 119 |
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| Primary reporting format: Geographical Segments | UK and Eire | Continental Europe | USA | Total |
| 2007 | £000 | £000 | £000 | £000 |
| EXTERNAL REVENUE | 125,334 | 21,656 | 10,411 | 157,401 |
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| PROFIT FROM OPERATIONS | 7,041 | 1,051 | 21 | 8,113 |
| Finance income | 209 | 7 | 38 | 254 |
| Finance costs | (171) | (20) | (15) | (206) |
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| |
| UNDERLYING PROFIT | 7,079 | 1,038 | 44 | 8,161 |
| Pension gain | 132 | - | - | 132 |
| Share based payment charge | (218) | (21) | (15) | (254) |
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| PROFIT BEFORE TAXATION | 6,993 | 1,017 | 29 | 8,039 |
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| |
| TOTAL ASSETS | 49,603 | 7,369 | 3,799 | 60,771 |
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| TOTAL LIABILITIES | (31,980) | (5,808) | (5,062) | (42,850) |
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| Other segment items | ||||
| Capital expenditure | 3,439 | 240 | 643 | 4,322 |
| Depreciation expense | 409 | 160 | 20 | 589 |
| Amortisation expense | 35 | 77 | - | 112 |
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| 3. | TAXATION | 2008 | 2007 | |||
| £000 | £000 | £000 | £000 | |||
| Current tax: | ||||||
| UK corporation tax on profits of the year | 2,793 | 1,920 | ||||
| Foreign tax | 503 | 286 | ||||
| Adjustments in respect of previous years | (236) | (187) | ||||
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| Total current tax | 3,060 | 2,019 | ||||
| Deferred tax: | ||||||
| Origination and reversal of timing differences | 373 | 74 | ||||
| Adjustments in respect of previous years | (170) | (86) | ||||
| Pension scheme | - | 43 | ||||
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| Total deferred tax | 203 | 31 | ||||
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| |||||
| Tax on profit | 3,263 | 2,050 | ||||
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| |||||
| Factors affecting tax charge for the year: | 2008 £000 | 2007 £000 | |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK (28%). The differences are explained below: | |||
| Profit before tax | 10,293 | 8,039 | |
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| Profit before tax multiplied by standard rate of corporation tax in the UK 29.3% (2007: 30%) | 3,016 | 2,412 | |
| Effects of: | |||
| Expenses not deductible for tax purposes | 707 | 77 | |
| Adjustments in respect of previous periods | (406) | (273) | |
| Pension scheme | 127 | 43 | |
| Difference in tax rates in foreign subsidiaries | (181) | (209) | |
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| Total tax charge for the year | 3,263 | 2,050 | |
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| 4. | DIVIDENDS | ||||
| 2008 £000 | 2007 £000 | ||||
| Equity: | |||||
| Ordinary shares - 2006 final | - | 1,032 | |||
| - 2007 interim | - | 528 | |||
| - 2007 final | 1,337 | - | |||
| - 2008 interim | 626 | - | |||
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| 1,963 | 1,560 | |||
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| 5. | EARNINGS PER ORDINARY SHARE |
The calculations of earnings per share are based on the following profits and number of shares:
| | | Basic 2008 £000 | Basic adjusted 2008 £000 | Diluted 2008 £000 | Basic 2007 £000 | Basic adjusted 2007 £000 | Diluted 2007 £000 |
| | | | | | | | |
| | Profit for the financial year | 7,030 | 7,030 | 7,030 | 5,989 | 5,989 | 5,989 |
| | Pension adjustment | - | - | - | - | (132) | - |
| | Tax on pension adjustment | - | - | - | - | 43 | - |
| | Share based payments | - | 851 | - | - | 254 | - |
| | | | | | | | |
| | Adjusted profit for financial year | 7,030 | 7,881 | 7,030 | 5,989 | 6,154 | 5,989 |
| | | | | | | | |
| Weighted average number of shares | 2008 Number of shares | 2007 Number of shares | |||||
| For basic earnings per share | 21,557,529 | 20,019,549 | |||||
| Unexercised share options | 455,877 | 307,010 | |||||
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| For diluted earnings per share | 22,013,406 | 20,326,559 | |||||
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| ||||||
| The Group's earnings per share are as follows: | 2008 | 2007 | |||||
| - Basic | 32.6p | 29.9p | |||||
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| ||||||
| - Diluted | 31.9p | 29.5p | |||||
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| ||||||
| - Basic adjusted | 36.6p | 30.7p | |||||
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| ||||||
| - Diluted adjusted | 35.8p | 30.3p | |||||
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| 6. | CURRENT TAXATION |
The current tax payable of £1,702,000 (2007: £1,319,000) represents the amount of income taxes payable in respect of current and prior year periods.
| 7. | CHANGES IN SHAREHOLDERS' EQUITY |
| | | Share capital £000 | Share premium account £000 | Capital re-demption reserve £000 | Invest-ment in own shares £000 | Share based payment reserve £000 | Trans-lation reserve £000 | Retained earnings £000 | Total £000 |
| | | | | | | | | | |
| | At 1 August 2006 | 200 | 89 | 682 | (913) | 3 | 73 | 6,373 | 6,507 |
| | Total recognised income and expense | - | - | - | - | 106 | 85 | 6,074 | 6,265 |
| | Dividends | - | - | - | - | - | - | (1,560) | (1,560) |
| | Issue of shares in the year and net premium | 16 | 5,275 | - | - | - | - | - | 5,291 |
| | Investment in own shares | - | - | - | 1,083 | - | - | - | 1,083 |
| | Reserve transfer | - | - | - | (256) | - | - | 256 | - |
| | Expense in relation to share-based payments | - | - | - | - | 254 | - | 81 | 335 |
| | | | | | | | | | |
| | At 31 July 2007 | 216 | 5,364 | 682 | (86) | 363 | 158 | 11,224 | 17,921 |
| | Total recognised income and expense | - | - | - | - | - | 479 | 6,801 | 7,280 |
| | Dividends | - | - | - | - | - | - | (1,928) | (1,928) |
| | Reclassification from net assets | - | - | - | (1,730) | - | - | - | (1,730) |
| | Investment in own shares | - | - | - | (81) | - | - | - | (81) |
| | Reserve transfer | - | - | - | 17 | - | - | (17) | - |
| | Expense in relation to share based payment | - | - | - | - | 815 | - | 2 | 817 |
| | | | | | | | | | |
| | At 31 July 2008 | 216 | 5,364 | 682 | (1,880) | 1,178 | 637 | 16,082 | 22,279 |
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STATUS OF FINANCIAL INFORMATION
The preliminary financial information, which comprises the Group income statement, Group statement of recognised income and expense, Group balance sheet, Group cash flow statement and related notes, does not constitute full accounts within the meaning of section 240 of the Companies Act 1985 but is derived from accounts for the years ended 31 July 2008 and 31 July 2007. The audited figures for the year ended 31 July 2007, on which the auditors have issued an unqualified audit report, do not contain a statement under section 237(2) or (3) of the Companies Act 1985. The preliminary announcement is prepared on the same basis as will be adopted in the statutory accounts for the year ended 31 July 2008.
While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS), as adopted by the European Union (EU) and International Financial Reporting Interpretations Committee ('IFRIC') interpretations and with those parts of the Companies Act 1985 applicable to companies reporting under IFRS, this announcement does not in itself contain sufficient information to comply with IFRSs.
GSH Group plc is incorporated and domiciled in the United Kingdom.
ANNUAL REPORT AND FINANCIAL STATEMENTS
The Annual Report and Financial Statements will be posted to shareholders shortly. Copies of the Annual Report and of this announcement will be available at the Company's registered office: GSH House, Forge Lane, Stoke on Trent, ST1 5PZ and on the company's website http://www.gshgroup.com.
ANNUAL GENERAL MEETING
The Annual General Meeting of the Company will be held at GSH House, Forge Lane, Stoke on Trent, ST1 5PZ on 17 December 2008.