Ironveld Regulatory News (IRON)

17 May 2006 07:01

Mercury Recycling Group PLC17 May 2006 MERCURY RECYCLING GROUP PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005 Mercury Recycling Group PLC, the recycler of fluorescent light tubes and sodiumstreet lights, quoted on AIM, announces final results for the year ended 31December 2005. • Group sales up 34% to £2,147,000 (2004: £1,603,000) • Operating profit before goodwill and relocation costs up 52% to £268,000 (2004: £176,000) • Loss before tax of £164,000 (2004: £31,000 loss) after charging goodwill of £204,000 (2004: £204,000) and relocation costs of £216,000 (2004: Nil) Enquiries: Simon Lebor, Group Chief ExecutiveMercury Recycling Group PLC Tel: 0161 877 0977 CHAIRMAN'S STATEMENT I am pleased to report the continued progress of the Group for the year ended 31December 2005. Sales increased by 34 per cent. to £2,147,000 from £1,603,000 in2004. Operating profit increased by 52 per cent. to £286,000 as against£176,000 in 2004. Relocation costs of £216,000 have been written off to theProfit and Loss Account in 2005. Despite the capital expenditure and relocationcosts, in this transitional year, the cash position and facilities remainstrong. The relocation to Mercury House witnessed the introduction and installation ofour own new proprietary and much more productive British made plant andequipment. The installation of this exciting new technology means that ourplant will operate two production lines, one for recycling of fluorescent tubesand the other for the recycling of all other lamp types. The new productivecapacity will provide substantial opportunities to expand the sales growth onthe existing cost base. The new recycling centre was officially opened byBaroness Young, the Chief Executive of the Environment Agency, in November 2005. The WEEE Directive, when implemented, should provide a further boost to sales,as all Gas Discharge lamps in the UK will then have to be recycled.Implementation should have been introduced in 2005, but this has been furtherdelayed by the Government. It is now expected that the Directive will come intooperation at the end of 2006 or early 2007, but in the interim sales haveincreased, reflecting the corporate social responsibility of all our clients toimplement an environmental improvement agenda. It is now established thatrecycling is firmly fixed at the centre of Industry, Commercial and Domesticlife, and your board believe that the sector will continue to offer greatopportunities for the Group. I can report that current trading is showing that sales continue to grow withnew customers coming on board every month. On your behalf I would again like to thank my colleagues and all our staff fortheir hard work and continued commitment to the Group. The Rt Hon The Lord Barnett JP PC Chairman GROUP PROFIT AND LOSS ACCOUNT 2005 2004 £000 £000 Turnover 2,147 1,603 Cost of sales (218) (188) Gross profit 1,929 1,415 Administrative expenses (2,081) (1,443) Operating profit before amortisation and relocation costs 268 176Relocation costs (216) -Goodwill amortisation (204) (204) Group operating loss (152) (28) Interest receivable 2 3Interest payable (14) (6) Loss on ordinary activities before taxation (164) (31) Taxation - - Loss on ordinary activities after taxation retained for the year (164) (31) (Loss) earnings per share - Basic (0.49p) (0.09p) - Diluted n/a 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 2005 2004 £'000 £'000Fixed assetsIntangible assets 3,225 3,429Tangible assets 1,142 578 4,367 4,007Current assetsDebtors 531 347Cash at bank and in hand 1 170 532 517Creditors: amounts falling due within one year (515) (294)Net current assets 17 223 Total assets less current liabilities 4,384 4,230 Creditors: amounts falling due after more than one year (308) (34) Provisions for liabilities and charges (44) - 4,032 4,196 Capital and reservesCalled up share capital 3,336 3,336Share premium account 242 242Other reserve 530 695Merger reserve (111) (111)Profit and loss account 35 34Equity shareholders' funds 4,032 4,196 GROUP CASH FLOW STATEMENT 2005 2004 £'000 £'000 Net cash inflow form operating activities 145 67 Returns on investments and servicing of finance Interest received 2 3Interest paid (14) (6) (12) (3)Capital expenditure and financial investmentPayments to acquire tangible assets (706) (96) Acquisitions and disposalsPayment to acquire subsidiary - (7) Net cash outflow before financing (573) (39) FinancingBank loan received 300 -Repayment of finance lease and hire purchase contract (25) (23) Decrease in cash (298) (62) NOTE: The financial information set out above does not constitute the Company'sfinancial statements for the year ended 31 December 2005. The financialstatements for 2005 have been audited and will be delivered to the Registrar ofCompanies following the Company's Annual General Meeting. The auditors havereported on the 2004 statements; their report was unqualified and did notcontain a statement under section 237(2) or (3) of the Companies Act 1985. Copies of the 2005 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