Ironveld Regulatory News (IRON)

23 Sep 2005 13:27

Mercury Recycling Group PLC23 September 2005 MERCURY RECYCLING GROUP PLC INTERIM REPORT FOR THE PERIOD ENDING 30 JUNE 2005 CHAIRMAN'S STATEMENT I am pleased to present the Group's Report for the 6 months to 30 June 2005. These unaudited results show a further substantial increase in sales of morethan 30% on the same period last year, from £783,000 to £1,031,000. Operatingprofits for the six months before goodwill amortisation, and exceptional items,increased from £96,000 to £133,000 at the interim stage, compared to £176,000for the full year. I indicated in my statement with the 2004 full year's accounts, that 2005 wouldbe a transitional year. I can now say that the group's re-organisation isproceeding as planned. Administrative staff have already been relocated to ourmajor new site in Trafford Park. The recycling equipment comprising of new andrefurbished plant currently being installed and commissioned. It will be seen, that some of the 'one-off' relocation costs in respect of themove to Kiwi Park have been included. These are on line with our initialbudget. By the end of 2005, we will be in a very strong position to meet any furtherboost to sales when the WEEE Directive is implemented in 2006. The very latesttechnology in our plant, together with the necessary staff and infrastructure,will all be in place. Even without the WEEE Directive, closure of landfill sites, and new registrationrequirements, that were introduced through the Hazardous Waste Regulations, bythe Environment Agency in mid July this year, have helped to boost the increaseddemand for recycling from industry. This transitional year continues to produce monthly increases in both sales andoperating profits. Not surprisingly, I look forward to 2006 and beyond, withconsiderable optimism. The Rt Hon The Lord Barnett JP PC Chairman 23 September 2005 GROUP PROFIT AND LOSS ACCOUNT for the six months ended 30 June 2005 6 Months ended 6 Months ended Year 30.6.05 30.6.04 ended 31.12.04 £'000 £'000 £'000 Turnover 1,031 783 1,603 Cost of Sales (120) (53) (188) Gross Profit 911 730 1,415 Administrative expenses (778) (634) (1,239) Group operating profit before goodwill amortisationand exceptional item 133 96 176 Relocation costs (57) - -Goodwill amortisation (102) (101) (204) Group operating loss (26) (5) (28) Interest receivable 7 2 3Interest payable (1) (2) (6) Loss on ordinary activities before taxation (20) (5) (31) Taxation - - -Loss on ordinary activities after taxation retained for the period (20) (5) (31) Earnings per share: Basic (pence) (0.06) (0.02) (0.09) Adjusted (pence) 0.42 0.29 0.52 GROUP BALANCE SHEETas at 30 June 2005 As at As at As at 30.6.05 30.6.04 31.12.04 £'000 £'000 £'000Fixed assetsTangible assets 994 543 578Intangible assets 3,327 3,515 3,429 4,321 4,058 4,007Current assetsStock - 10 -Debtors 445 293 347Cash at bank and in hand 181 159 170 626 462 517Creditors: amounts due within one year (727) (235) (294) Net current assets (101) 227 223 Creditors: amounts due after more than one year (44) (51) (34)Accruals and deferred income - (12) - Total assets less current liabilities 4,176 4,222 4,196 Capital and reservesCalled up share capital 3,336 3,336 3,336Share premium account 242 1,541 242Other reserve 612 - 695Merger reserve (111) (111) (111)Profit and loss account 97 (544) 34Equity shareholders' funds 4,176 4,222 4,196 GROUP CASHFLOW STATEMENTfor the six months ended 30 June 2004 6 Months ended 6 Months ended Year 30.6.05 30.6.04 ended 31.12.04 £'000 £'000 £'000 Net cash inflow/(outflow) from operating activities 148 (39) 67 Returns on investment and servicing of financeInterest paid (1) (2) (6)Interest received 7 2 3 Capital expenditure and financial investmentPurchase of tangible fixed assets (431) (23) (96) AcquisitionsCash acquired with subsidiary undertakings - - (7) (277) (62) (39) FinancingNew loan 300 - -Repayment of loans (7) - -Capital element of hire purchase (5) (11) (23)Increase/(Decrease) in cash in period 11 (73) (62) Reconciliation of operating loss to netcash outflow from operating activities Operating loss (26) (5) (28)Depreciation 43 33 71Amortisation of goodwill 102 101 204Profit on disposal of assets (5) - -Increase in stocks - (10) -Increase in debtors (98) (60) (114)(Decrease)/increase in creditors 132 (98) (66)Net cash inflow (outflow) from operating activities 148 (39) 67 NOTES: 1. Earnings per share The calculation of basic loss per share is based upon the loss for the period of£20,000 (2004 - first half - £5,000) and the weighted average number of33,359,000 (2004 - first half - 33,359,000) shares in issue during the period.As the Group reports a loss for the period, in accordance with FinancialReporting Standard 14, the share options are not considered dilutive. Adjusted earnings per share is calculated using earnings before amortisation ofgoodwill and exceptional items. Adjusted earnings is one of the primaryperformance measures used by the directors and is provided, in addition to thestatutory results prepared under UK GAAP, to assist the shareholders to gain aclearer understanding of the underlying performance of the business. 6 Months to 6 months to Year to 30.6.05 30.6.04 31.12.04 pence pence pence Basic loss per share (0.06) (0.02) (0.09)Goodwill and exceptional item 0.48 0.31 0.61Adjusted earnings per share 0.42 0.29 0.52 2. Basis of preparation The interim financial information has been prepared on the basis of theaccounting policies set out in the accounts for the year ended 31 December 2004. The interim financial information is unaudited. The financial information doesnot constitute statutory accounts as defined by section 240 of the Companies Act1985. Full accounts of the company for the year ended 31 December 2004 on whichthe Auditors gave an unqualified report, have been delivered to the Registrar ofCompanies. These accounts consolidate the accounts of Mercury Recycling GroupPlc and all of its wholly owned subsidiaries. The goodwill arising on theacquisition of Mercury Recycling Limited and Simister Engineering Limited hasbeen capitalised and amortised over the Directors' estimate of its useful life. 3. Copies of report Copies of this interim statement will be despatched to shareholders and will beavailable to the public at the Registered Office, Mercury House, 17 CommerceWay, Trafford Park, Manchester, M17 1HW. This information is provided by RNS The company news service from the London Stock Exchange