Last checked at 1 Jun 2012 16:45
1 June 2012
MERCURY RECYCLING GROUP PLC
FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2011
CHAIRMAN'S STATEMENT
At the time of this statement, I hoped that MRG would have concluded the negotiations regarding the acquisition of iron ore assets from Sylvania Platinum Limited. Unfortunately the transaction is taking longer to conclude than we had originally anticipated, but I am hopeful that we will shortly be in a position to move forward with the acquisition.
Sales for the year were £2,537,000 compared to £2,668,000 for the previous year. Operating losses after non-recurring costs were £31,000 compared to a profit of £272,000 in 2010. The volume of lamps recycled has been consistent with the previous period but the price being paid by the sole compliance scheme company purchasing B2B lamp evidence, has been reduced. We have taken advice from Leading Competition Counsel and we have been assured that we have very strong grounds for appeal. We have done so, and are in detailed negotiations.
The results do not therefore give a full picture of our future prospects and I believe that future results will demonstrate a change for the better. On the cost side, there have been substantial non-recurring costs amounting to £160,000 including the cost of preparing the site for the battery recycling business, proposed acquisition costs and a container write down resulting from a review of our container policy in the year. This container review also resulted in a change in accounting policy for our Lampsafe containers, which was accounted for as a prior period adjustment.
The new WEEE Recast consultation process has been moving forward and, as I previously explained, this will be important to the lamp recycling sector, indeed it should further transform our position for the better.
I can also report that our preparations for the move into the battery recycling business are now complete and that interest to date is very encouraging. Unfortunately the granting of battery treatment and export permits has taken much longer than expected but we were eventually granted the permits in February 2012 and have now started processing batteries on our newly installed battery sorting line.
I am hopeful that all this will ensure that Mercury Recycling Limited will have excellent prospects in both lamp and battery recycling.
Once again I would like to thank all our staff for their contribution during these major changes to the Group.
The Rt Hon The Lord Barnett JP PC
Chairman
For further information, please contact:
Mercury Recycling Group plc
Bryan Neill, Managing Director 0161 877 0977
Nick Harrison 0330 3338246
Shore Capital and Corporate Limited 020 7408 4090
Stephane Auton / Toby Gibbs
CONSOLIDATED INCOME STATEMENT
2011 | 2010 | ||
Restated | |||
£000 | £000 | ||
Revenue | 2,537 | 2,668 | |
Cost of sales | (148) | (179) | |
Gross profit | 2,389 | 2,489 | |
Administrative expenses | (2,420) | (2,217) | |
Operating (loss)/profit | (31) | 272 | |
Finance costs | (4) | (7) | |
(Loss)/profit before tax | (35) | 265 | |
Tax | (6) | (14) | |
(Loss)/profit for the period | (41) | 251 | |
(Attributable to owners of the company) | |||
(Loss)/earnings per share | (0.11p) | 0.73p | |
- Basic | |||
- Diluted | n/a | 0.72p |
The income statement has been prepared on the basis that all operations are continuing operations.
There is no difference between the results as disclosed above and the results on an historical cost basis.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2011 | 2010 | ||
Restated | |||
£000 | £000 | ||
Profit for the year | (41) | 251 | |
Other comprehensive income for the year | - | - | |
Total comprehensive income for the year | (41) | 251 | |
(Attributable to the owners of the Company) |
CONSOLIDATED BALANCE SHEET
2011 | 2010 | 2009 | |||
Restated | Restated | ||||
£000 | £000 | £000 | |||
Non-current assets | |||||
Goodwill | 4,122 | 4,122 | 4,122 | ||
Property, plant and equipment | 1,265 | 1,409 | 1,431 | ||
5,387 | 5,531 | 5,553 | |||
Current assets | |||||
Trade and other receivables | 465 | 448 | 478 | ||
Cash and bank balances | 343 | 412 | 1 | ||
Current tax assets | 18 | - | 10 | ||
826 | 860 | 489 | |||
Total assets | 6,213 | 6,391 | 6,042 | ||
Current liabilities | |||||
Trade and other payables | (234) | (270) | (249) | ||
Borrowings | (68) | (86) | (139) | ||
Current tax liabilities | - | (17) | (25) | ||
(302) | (373) | (413) | |||
Non-current liabilities | |||||
Trade and other payables | (24) | (33) | (42) | ||
Borrowings | (88) | (155) | (225) | ||
Deferred tax liabilities | (167) | (157) | (158) | ||
(279) | (345) | (425) | |||
Total liabilities | (581) | (718) | (838) | ||
Net assets | 5,632 | 5,673 | 5,204 | ||
Equity | |||||
Share capital | 3,583 | 3,583 | 3,403 | ||
Share premium | 235 | 235 | 242 | ||
Other reserves | 386 | 386 | 365 | ||
Retained earnings | 1,428 | 1,469 | 1,194 | ||
Total equity | 5,632 | 5,673 | 5,204 | ||
(Attributable to owners of the Company) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share | Share | Other | Retained | Total | |
Capital | Premium | Reserve | Earnings | Equity | |
£000 | £000 | £000 | £000 | £000 | |
Balance at 1 January 2010 | 3,403 | 242 | 365 | 1,263 | 5,273 |
(As previously stated) | |||||
Effect of change in accounting | |||||
policy | - | - | - | (69) | (69) |
As restated | 3,403 | 242 | 365 | 1,194 | 5,204 |
Profit for the period (restated) | - | - | - | 251 | 251 |
Warrants issued | 21 | 21 | |||
Issue of share capital | 180 | (7) | - | - | 173 |
Credit to equity for equity-settled | |||||
share based payments | - | - | - | 24 | 24 |
Balance at 31 December 2010 | 3,583 | 235 | 386 | 1,469 | 5,673 |
(Restated) | |||||
Loss for the period | - | - | - | (41) | (41) |
Balance at 31 December 2011 | 3,583 | 235 | 386 | 1,428 | 5,632 |
CONSOLIDATED CASH FLOW STATEMENT
2011 | 2010 | ||
Restated | |||
£000 | £000 | ||
Net cash from operating activities | 169 | 525 | |
Investing activities | |||
Purchases of property, plant and equipment | (153) | (187) | |
Net cash used in investing activities | (153) | (187) | |
Financing activities | |||
Proceeds on issue of equity | - | 194 | |
Repayment of borrowings | (69) | (66) | |
Net cash generated (used in)/from financing activities | (69) | 128 | |
Net (decrease)/increase in cash and cash equivalents | (53) | 466 | |
Cash and cash equivalents at the beginning of year | |||
396 | (70) | ||
Cash and cash equivalents at end of year | 343 | 396 |
NOTES
1. Basis of preparation
The information in this announcement has been extracted from the Company's audited Financial Statements which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.
2. Revenue
The revenue and profit on ordinary activities before taxation arise from the Group's principal activity.
The Group's revenue has been analysed by geographic area as follows:
2011 | 2010 | ||
£000 | £000 | ||
United Kingdom | 2,537 | 2,668 |
3. Operating (loss)/profit
2011 | 2010 | |||
Restated | ||||
Loss/(profit) for the year is shown after charging / (crediting): | £000 | £000 | ||
Depreciation on tangible assets | 289 | 207 | ||
Government grants | (9) | (9) | ||
Profit on disposal of tangible assets | - | 1 | ||
Operating leases: | -Land and buildings | 86 | 84 | |
-Other | 37 | 40 | ||
Fees paid to the auditor are analysed as follows: | ||||
Audit fees (Group excluding parent company) | 13 | 13 | ||
Audit fees (Parent company) | 4 | 4 | ||
Tax consultancy | 4 | 4 | ||
Other review reports | 13 | 4 | ||
4. (Loss)/earnings per share
Basic - The calculation of basic earnings per share is based on a loss of £41,000 (2010 - Profit - £251,000 restated) and on 35,827,462 (2010 - 34,509,795) ordinary shares, being the weighted average number of ordinary shares in issue during the year.
Diluted - The diluted earnings per share is based on the loss for the year of £41,000 (2010 - Profit - £251,000 restated) and on 35,827,462 (2010 - 34,509,795) ordinary shares as adjusted for share options below:
2011 | 2010 | |||
Number | Number | |||
Basic weighted average number of shares | 35,827,462 | 34,509,795 | ||
Dilutive potential ordinary shares: | ||||
Dilution caused by options | n/a | 117,793 | ||
Diluted weighted average number | n/a | 34,627,588 | ||
5. Annual General Meeting
The Annual General Meeting of Mercury Recycling Group plc ("the Company") will be held at 12 noon on 29 June 2012 at The Thistle Hotel, Cardington Street, Euston, London NW1 2LP.
6. Posting of Financial Statements
The Company's Financial Statements for the year ended 31 December 2011 together with the Notice of the Annual General Meeting are being posted to shareholders on Wednesday 6 June 2012 and will be available for download from the Company's website at www.mercuryrecycling.co.uk