16 Nov 2010 07:00
16 November 2010
HML HOLDINGS Plc
("HML or "the Group")
INTERIM RESULTS
HML Holdings plc (AIM: HMLH.L), the property management service group, today announces its interim results for the six months to 30 September 2010.
Highlights for the six month period:
·; 6% growth in revenues (2009: 2%)
·; Operating profit before interest, amortisation and share based payment charges has increased to £286,000 (2009: £151,000)
·; Two new satellite offices opened to broaden geographical coverage
Commenting on the results, Robert Plumb, Chief Executive of HML Holdings Plc, said:
"HML has shown again through the delivery of a consistent quality service that we are capable of winning new business and growing our market share despite the competitive landscape of our sector. We are extremely pleased with the steady and ongoing improvements across our businesses and supporting divisions. The increase in profitability delivered by revenue growth demonstrates how our business model is operationally geared and well positioned to benefit from further growth in market share and any wider market improvement."
For further information:
HML Holdings Plc Robert Plumb, Chief Executive James Howgego, Financial Director
| Tel: 020 8439 8529 |
Tavistock Communications Limited Jeremy Carey/James Verstringhe
| Tel: 020 7920 3150 |
FinnCap Marc Young/Ed Frisby - Corporate Finance Tom Jenkins - Corporate Broking
| Tel: 020 7600 1658 |
CHAIRMAN AND CHIEF EXECUTIVE'S REPORT
We are pleased to report a 6% growth in revenues to £4.7m (2009: £4.4m) for the six months ended 30th September 2010. This improvement reflects the group's continuing organic growth in properties under management and an ongoing enhancement of sales of our ancillary services.
A 3% increase in operating costs combined with this revenue growth has resulted in a 90% improvement in operating profit before amortisation and share based payment charges.
All intra-company services have shown a revenue growth with insurance services from Alexander Bonhill recording the most significant improvement (17%). Building surveying instructions from our management clients have continued steadily with insurance valuations being the most notable area of increase within the professional services division. While the current interest rate environment yields little treasury management fees, revenues from property sales' accounting and legal reports have shown a marked improvement during the period.
Enhancements to our property management systems, particularly in the automation of contractor payments through electronic banking transfer, have made a clear and positive impact on our processing efficiency. We have also expanded our geographical coverage with the opening of satellite offices in Tower Bridge (for London City and Docklands) and Maidstone (for Kent). We are also pleased to report the successful and cost effective relocation of both our North and South London property management offices to Whetstone and Croydon respectively.
These infrastructure advancements combined with the ongoing improvements in our service delivery continue to enable us to build HML profitability despite the current challenging economic circumstances.
Richard SmithChairman | Robert PlumbChief Executive |
15 November 2010
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended 30 September 2010
Continuing operations | Notes | Unaudited 6 months to 30 September 2010 £'000 | Unaudited 6 months to 30 September 2009 £'000 | Audited Year ended 31 March 2010 £'000 |
Revenue | 4,689 | 4,422 | 9,031 | |
Direct operating expenses | (3,995) | (3,894) | (7,871) | |
Central operating overheads | (408) | (377) | (795) | |
Share based payment charge | (3) | (9) | (5) | |
Amortisation of intangible assets | (87) | (80) | (173) | |
Total central operating overheads | (498) | (466) | (973) | |
Operating expenses | (4,493) | (4,360) | (8,844) | |
Profit from operations | 196 | 62 | 187 | |
Finance costs | (2) | (7) | (13) | |
Profit before taxation | 4 | 194 | 55 | 174 |
Income tax charge | (39) | - | (51) | |
Profit for the period attributable to equity holders of the parent | 155 | 55 | 123 | |
Other comprehensive income | - | - | - | |
Total comprehensive income for the period attributable to equity holders of the parent | 155 | 55 | 123 | |
Earnings per share (in pence) | ||||
Basic | 5 | 0.5 | 0.2 | 0.4 |
Diluted | 5 | 0.5 | 0.2 | 0.4 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
COMPANY NUMBER: 5728008
30 September 2010
| Unaudited 30 September 2010 £'000 | Unaudited 30 September 2009 £'000 | Audited 31 March 2010 £'000 | |
ASSETS | ||||
Non Current Assets | ||||
Goodwill | 3,317 | 3,286 | 3,290 | |
Other intangible assets | 2,511 | 2,612 | 2,561 | |
Property, plant and equipment | 245 | 274 | 224 | |
Deferred tax asset | - | 72 | 4 | |
6,073 | 6,244 | 6,079 | ||
Current Assets | ||||
Trade and other receivables | 1,274 | 1,085 | 1,177 | |
1,274 | 1,085 | 1,177 | ||
TOTAL ASSETS | 7,347 | 7,329 | 7,256 | |
LIABILITIES | ||||
Current Liabilities | ||||
Trade and other payables | (1,415) | (1,747) | (1,630) | |
Borrowings | (280) | (172) | (171) | |
Current tax liabilities | (39) | (19) | - | |
(1,734) | (1,938) | (1,801) | ||
Non-Current Liabilities | ||||
Deferred tax | (182) | (182) | (182) | |
(182) | (182) | (182) | ||
TOTAL LIABILITIES | (1,916) | (2,120) | (1,983) | |
NET ASSETS | 5,431 | 5,209 | 5,273 |
EQUITY | ||||
Share capital | 473 | 473 | 473 | |
Share premium | 6,331 | 6,331 | 6,331 | |
Other reserves | (11) | (11) | (11) | |
Merger reserve | (15) | (15) | (15) | |
Retained earnings | (1,347) | (1,569) | (1,505) | |
TOTAL EQUITY | 5,431 | 5,209 | 5,273 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six months ended 30 September 2010
Share | Share | Other | Merger | Retained | Total | ||
capital | premium | reserve | reserve | earnings | equity | ||
£'000s | £'000s | £'000s | £'000s | £'000s | £'000s | ||
Balance at 1 April 2009 | 473 | 6,331 | (11) | (15) | (1,633) | 5,145 | |
Total comprehensive income for the period | - | - | - | - | 55 | 55 | |
Share based payment charge | - | - | - | - | 9 | 9 | |
Balance at 30 September 2009 | 473 | 6,331 | (11) | (15) | (1,569) | 5,209 | |
Total comprehensive income for the period | - | - | - | - | 68 | 68 | |
Share based payment charge | - | - | - | - | (4) | (4) | |
Balance at 31 March 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 |
CONSOLIDATED STATEMENT OF CASH FLOWS
Six months ended 30 September 2010
Notes | Unaudited 6 months to 30 September 2010 £'000 | Unaudited 6 months to 30 September 2009 £'000 | Audited Year ended 31 March 2010 £'000 | |
Operating activities | ||||
Cash generated from operations | 6 | 100 | 451 | 573 |
Income taxes paid | - | (50) | (52) | |
Interest paid | (2) | (7) | (13) | |
Net cash from/used in operating activities | 98 | 394 | 508 | |
Investing activities | ||||
Purchases of property, plant and equipment | (78) | (16) | (30) | |
Purchase of software | (87) | (28) | (114) | |
Acquisition of businesses | (42) | (31) | (44) | |
Net cash used in investing activities | (207) | (75) | (188) | |
Financing activities | ||||
Cash payments relating to long term loan | (86) | (86) | (171) | |
Net cash from financing activities | (86) | (86) | (171) | |
(Decrease)/increase in cash and cash equivalents | (195) | 233 | 149 | |
Cash and cash equivalents at the start of period | (85) | (234) | (234) | |
Cash and cash equivalents at the end of the period | (280) | (1) | (85) |
NOTES TO THE ACCOUNTS
1. General Information
The interim unaudited financial information was approved by the board on 15 November 2010.
The results for the year ended 31 March 2010 have been audited whilst the results for the six months ended 30 September 2009 and 30 September 2010 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 and did not contain a statement under section 495 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 2010.
IFRS 3 and IAS 39 have been adopted during the year as well as the amendments to IFRS 2.
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 2010 is based on the effective rate of taxation which is estimated to apply for the year ending 31 March 2011.
4.
|
Profit before interest, exceptional items, share based payments charges, amortisation and taxation reconciliation
| Unaudited 6 months to 30 September 2010 £'000 | Unaudited 6 months to 30 September 2009 £'000 | Audited Year ended 31 March 2010 £'000 |
Operating profit before interest, exceptional items, share based payment charges, amortisation and taxation | 286 | 151 | 365 | |
Finance costs | (2) | (7) | (13) | |
Operating profit before exceptional item, share based payment charges, amortisation and taxation | 284 | 144 | 352 | |
Share based payment charge | (3) | (9) | (5) | |
Amortisation of intangible assets | (87) | (80) | (173) | |
Profit before taxation | 194 | 55 | 174 |
5. | Earnings per share | Unaudited 6 months to 30 September 2010 | Unaudited 6 months to 30 September 2009 | Audited Year ended 31 March 2010 |
Profits for basic and diluted earnings per share (£'000) | ||||
Profit for the period | 155 | 55 | 123 | |
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 | 299 | 14 | 134 | |
Fully diluted | 31,843 | 31,558 | 31,678 | |
Earnings per share | ||||
Basic | 0.5p | 0.2p | 0.4p | |
Diluted | 0.5p | 0.2p | 0.4p |
6. 6 | Notes to the cash flow statement | Unaudited 6 months to 30 September 2010 £'000 | Unaudited 6 months to 30 September 2009 £'000 | Audited 6 months to 31 March 2010 £'000 |
Cash generated from operations | ||||
Operating profit | 196 | 62 | 187 | |
Share-based payment charge | 3 | 9 | 5 | |
Depreciation of plant and equipment | 57 | 64 | 128 | |
Amortisation of intangible assets | 87 | 80 | 173 | |
(Increase) in trade and other receivables | (93) | (3) | (95) | |
(Decrease)/Increase in trade and other payables | (150) | 239 | 175 | |
Cash generated from operations | 100 | 451 | 573 | |