Ironveld Regulatory News (IRON)

20 May 2005 07:00

Mercury Recycling Group PLC20 May 2005 MERCURY RECYCLING GROUP PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2004 Turnover increased by 69%; Operating Profits up 147%; EU Directive on waste disposal continues to drive sales Mercury Recycling Group PLC, the UK's largest recycler of fluorescent lighttubes and sodium street lights, quoted on AIM, announces final results for theyear ended 31 December 2004. The results include a full year's contribution fromSimister, Engineering Limited acquired in November of 2003. • Group sales up 69% to £1.603m (2003: £947,000) • Operating profit before goodwill up 147% to £176,000 (2003: £71,000) • Loss before tax of £31,000 (2003: £97,000 loss) after charging goodwill of £204,000 (2003: £168,000) • Loss per share (basic) of 0.09p (2003: 0.35p loss) • Net cash of £170,000 • Implementation of EU Directive on Waste Electrical and Electronic Equipment ("WEEE") disposal now expected in Jan '06 already driving sales. • Major Capital Investment programme including move to purpose-built new site in Trafford Park, nearing completion; increases capacity three fold to capitalise on market growth • New five-year contract signed with UK's leading lighting contractor Commenting on the Group's prospects, Chairman Lord Barnett said: "The current year is likely to be a transitional one as we meet increased demandby a substantial re-organisation and with the installation of new plant andequipment which will more than treble our capacity. "The Group is now the largest lamp recycler in the UK and prospects are highlyencouraging as the Recycling Sector becomes more and more the focus of attentionboth inside and outside Government. When the WEEE Directive is implemented inJanuary 2006, it will provide further momentum to our sales." Enquiries: Simon Lebor, Group Chief ExecutiveBryan Neill, Managing DirectorMercury Recycling Group PLC Tel: 0161 877 0977 Ian Rice, Rowan Dartington Tel: 0117 933 0020 Ken Rees/Paul VannBinns Winningtons Tel: 0117 9200092 CHAIRMAN'S STATEMENT I am pleased to report another year of significant progress in 2004, with salesof £1,603,000 which shows an increase of 69 per cent. when compared to 2003.Operating profits before amortisation were £176,000 as against £71,00 in 2003,showing the economies of scale as turnover increases. The implementation of the European Union Directive on Waste Electrical andElectronic Equipment ("WEEE") scheduled for mid 2005, is now expected to bedelayed by several months. This has not, however, deterred major organisationsand Government Authorities from making early preparations in order to conformwith their legal liabilities to recycle their tubes and lamps. Each month nowsees a growing number of new customers and in this context we have recentlysigned a five year national contract with the country's leading lightingcontractor, giving us additional throughput, which will underwrite our currentinvestment programme. The current year is likely to be a transitional one as we plan to meet theincrease in demand by a substantial reorganisation, and with the installation ofnew plant and equipment which will more than treble our capacity. Nevertheless,there will be some additional one-off costs entailed by the transfer of ouroperations to a new site in Trafford Park, which is some six times the size ofour current premises. Furthermore, there are other costs such as ourapplication for an additional Pollution, Prevention and Control Licence, all ofwhich will be written off in this year's accounts. In addition, orders for theupdating of our present London plant and an increase in the number of vehiclesin our fleet have now been contracted in order to cope with the anticipated newvolumes. The Group is now the largest lamp recycler in the UK and the Board believe it iswell positioned to take advantage of future business, having excellentmanagement, appropriate technology, and the necessary infrastructure. InJanuary 2006, when the WEEE Directive is implemented, it will provide theadditional momentum. Your Directors are, therefore, looking forward with confidence to the rewardingtimes ahead. Prospects are highly encouraging as the Recycling Sector becomesmore and more the focus of attention both inside and outside Government. On your behalf, I would like to thank my colleagues and all our staff for theirhard work and continuing commitment to the Group. The Rt Hon The Lord Barnett JP PCChairman GROUP PROFIT AND LOSS ACCOUNT 2004 2003 £000 £000 Turnover 1,603 947 Cost of sales (188) (105) Gross profit 1,415 842 Administrative expenses (1,443) (939) Operating profit before amortisation 176 71Goodwill amortisation (204) (168) Group operating loss (28) (97) Interest receivable 3 6Interest payable (6) (6) Loss on ordinary activities before taxation (31) (97) Taxation - - Loss on ordinary activities after taxation retained for the year (31) (97) (Loss) earnings per share - Basic (0.09p) (0.35)p - Adjusted 0.52p 0.25p 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 2004 2003 £'000 £'000Fixed assetsIntangible assets 3,429 3,616Tangible assets 578 553 4,007 4,169 Current assetsDebtors 347 232Cash at bank and in hand 170 232 517 464 Creditors: amounts falling due within one year (294) (337)Net current assets 223 127 Total assets less current liabilities 4,230 4,296 Creditors: amounts falling due after more than one year (34) (57) Provisions for liabilities and charges - (12) 4,196 4,227 Capital and reservesCalled up share capital 3,336 3,336Share premium account 242 242Other reserve 695 860Merger reserve (111) (111)Profit and loss account 34 (100)Equity shareholders' funds 4,196 4,227 GROUP CASH FLOW STATEMENT 2004 2003 £'000 £'000 Net cash inflow form operating activities 67 175 Returns on investments and servicing of financeInterest received 3 5Interest paid (6) (5) (3) - Capital expenditure and financial investmentPayments to acquire tangible assets (96) (5) Acquisitions and disposalsPayment to acquire subsidiary (7) (181) Net cash outflow before financing (39) (11) FinancingRepayment of finance lease and hire purchase contract (23) (6) Decrease in cash (62) (17) NOTE: The financial information set out above does not constitute the Company'sfinancial statements for the year ended 31 December 2004. The financialstatements for 2004 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 2004 Report and Accounts will be mailed to shareholders shortly.Further copies will be available for collection from the Company's offices atUnit G, Canalside North, John Gilbert Way, Trafford Park, Manchester M17 1DP. This information is provided by RNS The company news service from the London Stock Exchange