31 Oct 2011 07:00
HML HOLDINGS Plc
("HML or "the Group")
INTERIM RESULTS
HML Holdings plc (AIM: HMLH.L), the property management services group, today announces its interim results for the six months to 30 September 2011.
Highlights for the six month period:
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• | 6% growth in revenues (2010: 6%) |
• | 20% increase in operating profit before interest, amortisation and share based payment charges to £344,000 (2010: £286,000) |
• | Improvements across all sectors |
Commenting on the results, Robert Plumb, Chief Executive of HML Holdings Plc, said:
"We are pleased to report a consistent growth in revenues and further improvements to our operating margins. Against the background of current market volatility, we remain confident in the resilience of our earnings and our ability to continue growing HML's market share."
For further information:
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HML Holdings Plc | Tel: 020 8439 8529 |
Robert Plumb, Chief Executive James Howgego, Financial Director
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Tavistock Communications Limited | Tel: 020 7920 3150 |
Jeremy Carey James Verstringhe
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FinnCap | Tel: 020 7220 0500 |
Ed Frisby/Christopher Raggett - Corporate Finance Simon Starr - Corporate Broking
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CHAIRMAN'S AND CHIEF EXECUTIVE'S REPORT
We are pleased to report a 6% growth in half year revenue to £5.0 million (2010 £4.7 million). Our consistent revenue growth has been accompanied by a 20% increase in operating profit (before interest, exceptional items, share based payment charges, amortisation and taxation) as we have effected further improvements in our operating margins.
It is pleasing that improvements have come from all sectors within the group with general operating efficiencies consistently contributing to better margins.
While the overall new build residential market remains relatively quiet, we are pleased with the degree to which our improving service standards have contributed to an increase in new business enquiries in both the existing and new build markets. The property services market remains competitive but there is a keener awareness of the quality of service required.
Apart from the financial returns we have made significant improvements in terms of standardising our service procedures and controls. This will continue to underpin the quality of our service to our clients and the heightening demands of lessees.
Richard Smith | Robert Plumb |
Chairman | Chief Executive |
28th October 2011 |
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended 30 September 2011
Continuing operations |
Notes | Unaudited 6 months to 30 September 2011 £'000 | Unaudited 6 months to 30 September 2010 £'000 | Audited Year ended 31 March 2011 £'000 |
Revenue | 4,954 | 4,689 | 9,391 | |
Direct operating expenses | (4,175) | (3,995) | (8,056) | |
Central operating overheads | (435) | (408) | (826) | |
Share based payment charge | (4) | (3) | (6) | |
Amortisation of intangible assets | (94) | (87) | (182) | |
Total central operating overheads | (533) | (498) | (1,014) | |
Operating expenses | (4,708) | (4,493) | (9,070) | |
Profit from operations | 246 | 196 | 321 | |
Finance costs | - | (2) | (7) | |
Profit before taxation | 4 | 246 | 194 | 314 |
Corporation tax charge | (38) | (39) | (81) | |
Profit for the period attributable to equity holders of the parent | 208 | 155 | 233 | |
Other comprehensive income | - | - | - | |
Total comprehensive income for the period attributable to equity holders of the parent | 208 | 155 | 233 | |
Earnings per share | ||||
Basic | 5 | 0.7p | 0.5p | 0.7p |
Diluted | 5 | 0.7p | 0.5p | 0.7p |
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
COMPANY NUMBER: 5728008
30 September 2011
| Unaudited 30 September 2011 £'000 | Unaudited 30 September 2010 £'000 | Audited 31 March 2011 £'000 | ||
ASSETS | |||||
Non Current Assets | |||||
Goodwill | 3,360 | 3,317 | 3,360 | ||
Other intangible assets | 2,475 | 2,511 | 2,530 | ||
Property, plant and equipment | 274 | 245 | 263 | ||
6,109 | 6,073 | 6,153 | |||
Current Assets | |||||
Trade and other receivables | 1,094 | 1,274 | 1,425 | ||
Cash and cash equivalent | 260 | - | - | ||
1,354 | 1,274 | 1,425 | |||
TOTAL ASSETS | 7,463 | 7,347 | 7,578 | ||
LIABILITIES | |||||
Current Liabilities | |||||
Trade and other payables | (1,438) | (1,415) | (1,692) | ||
Borrowings | - | (280) | (115) | ||
Current tax liabilities | (114) | (39) | (77) | ||
(1,552) | (1,734) | (1,884) | |||
Non-Current Liabilities | |||||
Deferred tax | (182) | (182) | (182) | ||
(182) | (182) | (182) | |||
TOTAL LIABILITIES | (1,734) | (1,916) | (2,066) | ||
NET ASSETS | 5,729 | 5,431 | 5,512 | ||
EQUITY | |||||
Share capital | 473 | 473 | 473 | ||
Share premium | 6,331 | 6,331 | 6,331 | ||
Other reserves | (6) | (11) | (11) | ||
Merger reserve | (15) | (15) | (15) | ||
Retained earnings | (1,054) | (1,347) | (1,266) | ||
TOTAL EQUITY | 5,729 | 5,431 | 5,512 | ||
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six months ended 30 September 2011
Share | Share | Other | Merger | Retained | Total | ||
capital | premium | reserve | reserve | earnings | equity | ||
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | ||
Balance at 1 April 2010 | 473 | 6,331 | (11) | (15) | (1,505) | 5,273 | |
Total comprehensive income for the period | - | - | - | - | 155 | 155 | |
Share based payment charge | - | - | - | - | 3 | 3 | |
Balance at 30 September 2010 | 473 | 6,331 | (11) | (15) | (1,347) | 5,431 | |
Total comprehensive income for the period | - | - | - | - | 78 | 78 | |
Share based payment charge | - | - | - | - | 3 | 3 | |
Balance at 31 March 2011 | 473 | 6,331 | (11) | (15) | (1,266) | 5,512 | |
Total comprehensive income for the period | - | - | - | - | 208 | 208 | |
Share based payment charge | - | - | - | - | 4 | 4 | |
Employee benefit trust movement | - | - | 5 | - | - | 5 | |
Balance at 30 September 2011 | 473 | 6,331 | (6) | (15) | (1,054) | 5,729 |
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
Six months ended 30 September 2011
Notes | Unaudited 6 months to 30 September 2011 £'000 | Unaudited 6 months to 30 September 2010 £'000 | Audited Year ended 31 March 2011 £'000 | |
Operating activities | ||||
Cash generated from operations | 6 | 508 | 100 | 568 |
Income taxes paid | - | - | - | |
Interest paid | - | (2) | (7) | |
Net cash from operating activities | 508 | 98 | 561 | |
Investing activities | ||||
Purchases of property, plant and equipment | (73) | (78) | (178) | |
Purchase of software | (39) | (87) | (145) | |
Acquisition of businesses | (21) | (42) | (182) | |
Net cash used in investing activities | (133) | (207) | (505) | |
Financing activities | ||||
Cash payments relating to long term loan | - | (86) | (86) | |
Net cash used in financing activities | - | (86) | (86) | |
Increase/(decrease) in cash and cash equivalents | 375 | (195) | (30) | |
Cash and cash equivalents at the start of period | (115) | (85) | (85) | |
Cash and cash equivalents at the end of the period | 260 | (280) | (115) |
HML HOLDINGS Plc
NOTES TO THE ACCOUNTS
1. General Information
The interim unaudited financial information was approved by the board on 28 October 2011.
The results for the year ended 31 March 2011 have been audited whilst the results for the six months ended 30 September 2010 and 30 September 2011 are unaudited. The financial information contained in this interim report does not constitute statutory accounts for that period. The statutory accounts for the previous year, which were prepared under IFRS, have been delivered to the Registrar of Companies. The auditors' opinion on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498 (2) or 498 (3) of the Companies Act 2006.
Copies of the interim report are available from www.hmlholdings.com or from the Company Secretary at HML Holdings plc, 9-11 The Quadrant, Richmond, Surrey, TW9 1BP.
2. International Financial Reporting Standards
The consolidated financial information has been prepared using accounting policies consistent with International Financial Reporting Standards ('IFRS') as adopted by the European Union applied in accordance with the provisions of the Companies Act 2006.
Except as described below, the accounting policies applied are consistent with those of the audited annual financial statements for the year ended 31 March 2011.
The amendments to IFRS 2 have been adopted during the period.
Whilst the financial figures included in this interim report have been computed in accordance with IFRS, this interim report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS 34.
3. Taxation
Taxation for the six months to 30 September 2011 is based on the effective rate of taxation which is estimated to apply for the year ending 31 March 2012.
4.
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Profit before interest, exceptional items, share based payments charges, amortisation and taxation reconciliation
| Unaudited 6 months to 30 September 2011 £'000 | Unaudited 6 months to 30 September 2010 £'000 | Audited Year ended 31 March 2011 £'000 |
Operating profit before interest, exceptional items, share based payment charges, amortisation and taxation | 344 | 286 | 509 | |
Finance costs | - | (2) | (7) | |
Operating profit before exceptional item, share based payment charges, amortisation and taxation | 344 | 284 | 502 | |
Share based payment charge | (4) | (3) | (6) | |
Amortisation of intangible assets | (94) | (87) | (182) | |
Profit before taxation | 246 | 194 | 314 |
5. | Earnings per share | Unaudited 6 months to 30 September 2011 | Unaudited 6 months to 30 September 2010 | Audited Year ended 31 March 2011 |
Profits for basic and diluted earnings per share (£'000) | ||||
Profit for the period | 208 | 155 | 233 | |
Weighted average number of shares (000s) | ||||
For basic earnings per share | 31,544 | 31,544 | 31,544 | |
Effect of dilutive potential ordinary shares: | ||||
- share options | 172 | 299 | 186 | |
Fully diluted | 31,716 | 31,843 | 31,730 | |
Earnings per share | ||||
Basic | 0.7p | 0.5p | 0.7p | |
Diluted | 0.7p | 0.5p | 0.7p |
6. | Notes to the cash flow statement | Unaudited 6 months to 30 September 2011 £'000 | Unaudited 6 months to 30 September 2010 £'000 | Audited 6 months to 31 March 2011 £'000 |
Cash generated from operations | ||||
Operating profit | 246 | 196 | 321 | |
Share-based payment charge | 4 | 3 | 6 | |
Depreciation of plant and equipment | 62 | 57 | 135 | |
Amortisation of intangible assets | 94 | 87 | 182 | |
Decrease/(increase) in trade and other receivables | 331 | (93) | (248) | |
(Decrease)/increase in trade and other payables | (229) | (150) | 168 | |
Disposal of fixed assets | - | - | 4 | |
Cash generated from operations | 508 | 100 | 568 | |