Ironveld Regulatory News (IRON)

11 May 2007 07:01

Mercury Recycling Group PLC11 May 2007 MERCURY RECYCLING GROUP PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006 Mercury Recycling Group PLC, the recycler of fluorescent light tubes and sodiumstreet lights, quoted on AIM, announces final results for the year ended 31December 2006. • Group sales up 11% to £2,399,000 (2005: £2,147,000) • Operating profit up 25% to £336,000 (2005: £268,000) • Profit before tax of £84,000 (2005: £193,000 loss) after charging goodwill of £204,000 (2005: £204,000) and relocation costs of nil (2005:£216,000) Enquiries: Simon Lebor, Group Chief ExecutiveMercury Recycling Group PLC Tel: 0161 877 0977 John Wakefield, DirectorBlue Oar Securities Plc Tel: 0117 933 0020 CHAIRMAN'S STATEMENT I am pleased to report further improvement for the year ended 31 December 2006.Sales increased by 11% to £2,399,000 from £2,147,000 in 2005. Operating profitincreased by some 25% to £336,000 as against £268,000 in 2005. As will be seenfrom the Balance Sheet, our liquid position is healthy, with current assets of£668,000 despite the substantial capital expenditure setting up our newrecycling facilities. I would have been reporting an even better outcome had it not been for thefurther delay in implementing the WEEE Directive by the Government. ThisDirective, will legally enforce the recycling of all separately collected end oflife Gas Discharge Lamps which should give a significant boost to the numbers oflamps to be recycled. The official start date is now 1 July 2007. However, there is still confusionin Government Departments, The Environment Agency, Lamp Manufacturers,Distributors, Purchasers, and Lamp Recyclers, as to how the implementation willwork in practice, and thus the determination of our position in this matter, isgiving us some concern. Uncertainty has been created by the four major Lamp Manufacturers, who controlsome 85% of the market. They have set up a single Compliance Scheme whichdominates the arrangements, and thus causes us major problems. The DTI, shareour concerns and are keen to help. Despite all these difficulties, Governmentand Lamp Manufacturers advise that some 120 million lamps are sold per year, andthe current estimate is that only 25% of these are being recycled. As a leadinglamp recycler, we stand to benefit substantially, if the WEEE Directive issensibly implemented, and discussions are now taking place to sort out some ofthe problems of the suggested Compliance Scheme. Current trading continues to show new customers still coming to us every month.However, the uncertainty in the market will affect volumes in the short term assome of our customers are as yet unsure as to how the implementation will affectthem. The WEEE Directive was aimed at household waste and we had alwaysunderstood that our existing relations with customers would not be affected, butthe Compliance Scheme plans to cover business transactions, to which we areopposed. I have to report that Simon Lebor, our Chief Executive, wishes to retire at theend of this year, and your Board have respected his wishes, but in doing so wantto pay a tribute to his tremendous service to the Group, from the verybeginning, as a small private company, to it's current status as a successfulquoted company. The Board hopes that Simon enjoys his retirement in goodhealth. Mr Bryan Neill will continue in his present position as Managing Director.Fortunately, Simon will remain in his customary active capacity as C.E.O. duringthe difficult implementation of the WEEE Directive. In addition Mr A J Leon hasbeen appointed Non-Executive Financial Director. On your behalf, I would again like to thank my colleagues and all our staff fortheir hard work and continued commitment to the Group. Yours sincerely, The Rt Hon The Lord Barnett JP PCChairman GROUP PROFIT AND LOSS ACCOUNT As restated 2006 2005 £000 £000 Turnover 2,399 2,147 Cost of sales (193) (218) Gross profit 2,206 1,929 Administrative expenses (2,096) (2,110) Operating profit before amortisation and relocation costs 336 268Relocation costs - (216)Share based payment costs (22) (29)Goodwill amortisation (204) (204) Group operating profit/(loss) 110 (181) Interest receivable 1 2Interest payable and similar charges (27) (14) Profit/(loss) on ordinary activities before taxation 84 (193) Taxation - - Profit/(loss) on ordinary activities after taxationretained for the year 84 (193) Earnings/(loss) per share - Basic 0.25p (0.58p) - Diluted 0.24p n/a The group's operation in the year continued unchanged; no operations weredisposed of or acquired. There are no recognised gains or losses other than those passing through theprofit and loss account. GROUP BALANCE SHEET As restated 2006 2005 £'000 £'000 Fixed assetsIntangible assets 3,021 3,225Tangible assets 1,142 1,142 4,163 4,367 Current assetsDebtors 533 531Cash at bank and in hand 135 1 668 532 Creditors: amounts falling due within one year (307) (515)Net current assets 361 17 Total assets less current liabilities 4,524 4,384 Creditors: amounts falling due after more than one year (271) (308) Provisions for liabilities (78) (44) 4,175 4,032Capital and reservesCalled up share capital 3,373 3,336Share premium account 242 242Other reserve 365 530Merger reserve (111) (111)Profit and loss account 306 35 Equity shareholders' funds 4,175 4,032 GROUP CASH FLOW STATEMENT 2006 2005 £'000 £'000 Net cash inflow from operating activities 404 145 Returns on investments and servicing of financeInterest received 1 2Interest paid (27) (14) (26) (12) Capital expenditure and financial investmentPayments to acquire tangible assets (96) (706) Net cash inflow/(outflow) before financing 282 (573) FinancingReceipts from issue of equity shares 20 -Bank loan received - 300Repayment of bank loan (15) -Repayment of finance lease and hire purchase contract (24) (25) Increase/(decrease) in cash 263 (298) NOTE: The financial information set out above does not constitute the Company'sfinancial statements for the year ended 31 December 2006. The financialstatements for 2006 have been audited and will be delivered to the Registrar ofCompanies following the Company's Annual General Meeting. The auditors havereported on the 2005 statements; their report was unqualified and did notcontain a statement under section 237(2) or (3) of the Companies Act 1985. Copies of the 2006 Report and Accounts will be mailed to shareholders shortly.Further copies will be available for collection from the Company's offices atMercury House, 17 Commerce Way, Trafford Park, Manchester, M17 1HW. This information is provided by RNS The company news service from the London Stock Exchange