Last checked at 12 Sep 2008 07:00
MERCURY RECYCLING GROUP PLC
INTERIM REPORT FOR THE PERIOD ENDED 30 JUNE 2008
CHAIRMAN'S STATEMENT
I am pleased to report that the Group's unaudited results for the six months ended 30 June 2008, show an increase in sales, compared to the same period last year, to £1,508,831 from £1,304,000. Operating profits increased by approximately 34% from £233,000 to £312,000 and only include one month's trading figures from our newly acquired subsidiary Envirolite Limited and its associated companies.
The full integration of the businesses is proceeding smoothly. In addition, implementation of the WEEE Directive, as anticipated, is bringing increased sales every month.
Even after taking into account the recent cash purchase of Envirolite, our financial position remains healthy and is improving all the time. We continue to look for complementary businesses which can help us broaden our service and further develop our customer base, whilst also focusing on our recently introduced WEEE and Battery Recycling services.
In my Annual Statement in the 2007 accounts, I said, subject to satisfactory results of course, that the Directors would hope to pay a dividend in respect of this financial year. On the basis of current trading and in the absence of unforeseen circumstances, I am hopeful that this intention might be fulfilled.
I conclude by thanking all our staff for coping so well with the increased workload, which augers well for the future of the Group.
The Rt Hon The Lord Barnett JP PC
Chairman
12 September 2008
Enquiries:
| Bryan Neill, Managing Director | Tel: 0161 877 0977 |
| John Wakefield, Blue Oar Securities Plc | Tel: 0117 933 0020 |
CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2008
| 6 Months | 6 Months | Year | ||||
| ended | ended | ended | ||||
| 30.6.08 | 30.6.07 | 31.12.07 | ||||
| £'000 | £'000 | £'000 | ||||
| Revenue | 1,509 | 1,304 | 2,657 | |||
| Cost of sales | (102) | (204) | (173) | |||
| Gross profit | 1,407 | 1,100 | 2,484 | |||
| Administrative expenses | (1,095) | (877) | (2,023) | |||
| Operating profit | 312 | 223 | 461 | |||
| Investment revenues | 9 | 2 | 7 | |||
| Finance costs | (13) | (13) | (23) | |||
| Profit before taxation | 308 | 212 | 445 | |||
| Tax | (78) | - | (79) | |||
| Profit for the period | 230 | 212 | 366 | |||
| Earnings per share: | Basic (pence) | 0.68p | 0.63p | 1.09p | ||
| Diluted (pence) | 0.67p | 0.62p | 1.07p | |||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| 6 Months | 6 Months | Year | |||
| ended | ended | ended | |||
| 30.6.08 | 30.6.07 | 31.12.07 | |||
| £'000 | £'000 | £'000 | |||
| Share based payment costs | - | 10 | 18 | ||
| Net income recognised directly in equity | - | 10 | 18 | ||
| Profit for the period | 230 | 212 | 366 | ||
| Total income and expense for the period | 230 | 222 | 384 | ||
| Opening balance | 4,559 | 4,175 | 4,175 | ||
| Closing balance | 4,789 | 4,397 | 4,559 |
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2008
| As at | As at | As at | |||
| 30.6.08 | 30.6.07 | 31.12.07 | |||
| £'000 | £'000 | £'000 | |||
| Non-current assets | |||||
| Goodwill | 4,096 | 3,021 | 3,021 | ||
| Other intangible assets | 1 | 2 | 1 | ||
| Property, plant and equipment | 1,263 | 1,109 | 1,158 | ||
| 5,360 | 4,132 | 4,180 | |||
| Current assets | |||||
| Trade and other receivables | 945 | 578 | 673 | ||
| Cash and cash equivalents | 84 | 323 | 379 | ||
| 1,029 | 901 | 1,052 | |||
| Total assets | 6,389 | 5,033 | 5,232 | ||
| Current liabilities | |||||
| Trade and other payables | (881) | (163) | (265) | ||
| Obligations under finance leases | (5) | (17) | (7) | ||
| Current tax liabilities | (124) | (108) | - | ||
| Bank overdrafts and loans | (131) | (25) | (28) | ||
| (1,141) | (313) | (300) | |||
| Non-current liabilities | |||||
| Trade and other payables | (56) | (70) | (60) | ||
| Bank loans | (318) | (248) | (233) | ||
| Deferred tax liabilities | (85) | - | (79) | ||
| Obligations under finance leases | - | (5) | (1) | ||
| (459) | (323) | (373) | |||
| Total liabilities | (1,600) | (636) | (673) | ||
| Net assets | 4,789 | 4,397 | 4,559 | ||
| Equity | |||||
| Share capital | 3,373 | 3,373 | 3,373 | ||
| Share premium | 242 | 242 | 242 | ||
| Other reserve | 365 | 283 | 365 | ||
| Retained earnings reserve | 809 | 499 | 579 | ||
| Total equity | 4,789 | 4,397 | 4,559 |
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2008
| 6 Months | 6 Months | 6 Months | |||
| ended | ended | ended | |||
| 30.6.08 | 30.6.07 | 31.12.07 | |||
| £'000 | £'000 | £'000 | |||
| Net cash from operating activities | 499 | 255 | 471 | ||
| Investing activities | |||||
| Interest received | 9 | 2 | 7 | ||
| Purchases of property, plant and equipment | (169) | (47) | (201) | ||
| Acquisition of subsidiaries (net of cash acquired) | (699) | - | - | ||
| Net cash used in investing activities | (859) | (45) | (194) | ||
| Financing activities | |||||
| Proceeds on issue of shares | - | - | 17 | ||
| Repayment of loans | (13) | (12) | (26) | ||
| Repayments of finance lease obligations | (4) | (10) | (24) | ||
| Net cash used in financing activities | (17) | (22) | (33) | ||
| Net increase in cash and cash equivalents | (377) | 188 | 244 | ||
| Cash and cash equivalents at the beginning of | |||||
| period | 379 | 135 | 135 | ||
| Cash and cash equivalents at end of period | 2 | 323 | 379 | ||
| Note to the cash flow statement | |||||
| Operating profit for the period | 312 | 223 | 461 | ||
| Depreciation on plant and equipment | 79 | 79 | 183 | ||
| Amortisation of other intangible assets | - | - | 1 | ||
| Decrease in deferred income | (5) | (5) | (9) | ||
| Share-based payment expense | - | 10 | 18 | ||
| Operating cash flows before movements in | |||||
| working capital | 386 | 307 | 654 | ||
| Decrease / (increase) in receivables | 22 | (45) | (157) | ||
| (Decrease) / increase in payables | 104 | 6 | (2) | ||
| Cash generated by operations | 512 | 268 | 495 | ||
| Interest paid | (13) | (13) | (24) | ||
| Net cash from operating activities | 499 | 255 | 471 |
NOTES TO CONSOLIDATED ACCOUNTS
FOR THE SIX MONTHS ENDED 30 JUNE 2008
1. Basis of preparation and accounting policies
Basis of preparation
The results for the six months to 30 June 2008 have been prepared under International Financial Reporting Standards (IFRS).
The financial information does not constitute statutory accounts as defined by section 240 of the Companies Act 1985. Full accounts of the company for the year ended 31 December 2007 on which the Auditors gave an unqualified report, have been delivered to the Registrar of Companies.
2. Earnings per share
The calculation of basic and diluted earnings per share is based upon the profit for the period and the weighted average number of shares in issue during the period.
| 6 Months | 6 Months | Year | |||
| to | to | to | |||
| 30.6.08 | 30.6.07 | 31.12.07 | |||
| '000 | '000 | '000 | |||
| Weighted average number of shares | 33,726 | 33,726 | 33,726 | ||
| Options - dilution | 480 | 661 | 577 | ||
| 34,206 | 34,387 | 34,303 |
3. Copies of report
Copies of this interim statement will be despatched to shareholders and will be available to the public at the Registered Office, Mercury House, 17 Commerce Way, Trafford Park, Manchester, M17 1HW.