Ms Intl. Regulatory News (MSI)

28 Jun 2005 07:01

MS International PLC28 June 2005 Date: Under embargo until 7.00am - Tuesday 28th June, 2005 Contacts: Michael Bell, Executive Chairman, MS INTERNATIONAL plc Tel: 01302 322133 Terry Garrett, Weber Shandwick Square Mile Tel: 0207 067 0700 MS INTERNATIONAL plc Full Year Results to 30th April, 2005 HIGHLIGHTS •All three operating divisions produced highly commendable results •Turnover increased to £38.24m (2004 - £32.32m) •Pre-tax profits up to £3.34m (2004 - £1.38m) •Earnings per share more than doubled to 12.7p (2004 - 5.0p) •Final dividend up by 24% to 1.65p (2004 -1.33p) per share making a total of 2.15p (2004 - 1.75p) •Net funds remain positive at £0.76m (2004 - £2.20m) •Current order book "remains healthy and well balanced" •Board considering a move to AIM Michael Bell, Executive Chairman, commented: "I am pleased to report that all three divisions have continued to perform welland the Group has achieved a significant increase in profits for the year.Looking forward, our order book remains healthy and well balanced and I believethat we will continue to reap the rewards of our capital investment in bothplant and equipment and our research and development programmes. We arecautiously optimistic that demand will remain strong throughout the remainder ofthe calendar year." Chairman's Statement Results and review In my interim statement, I highlighted my belief that the Group was in anexcellent position to take advantage of the general upturn in world tradingconditions. I am now pleased to report that the momentum evident during thatfirst half continued to develop throughout the remainder of the year resultingin significant profits growth for the 12 months as a whole. For the year ended 30 April 2005, the Group profit before taxation advancedstrongly to £3.34m (2004-£1.38m), on higher sales of £38.24m (2004-£32.32m).Earnings per share more than doubled to 12.7p (2004-5.0p). During the period we overcame the many challenges that were posed by risingenergy costs; limited availability and constantly rising prices for rawmaterials; the commissioning of new plant and equipment; the rigorous trials ofnew product developments and unfavourable currency movements. Not only did weovercome these difficulties but also continued to benefit from sustained growthin demand from our customers for our quality products and services. The three operating divisions - defence, forgings and petrol station forecourtstructures - produced highly commendable results, with each contributing itsshare of growth within the overall results. Persistent and dedicated attentionto detail, innovation and an unyielding commitment to the process of achievingbudgeted cost savings and optimising production efficiency, created theopportunities to build successfully on recent gains. The Group's consolidated net funds remained positive at £0.76m (2004-£2.20m).Though lower than last year, this reflects, in part, the effect of higher rawmaterial contingency stocks - essential to ensure that we maintained ouroutstanding reputation to keep our valued customers supplied during a difficulttrading period - and the ongoing investment in new plant and equipment andproduct development. In addition, an important factor was the Company's purchaseof 2.09m MS INTERNATIONAL plc shares for cancellation, at a total cost of£1.33m. Outlook The payback, ensuing from capital invested over recent years in both our plantand equipment and research and development programmes, should continue tostrengthen our trading position. Recognising that the future prosperity of ourCompany depends critically on technological and innovative investment, wepropose to direct further capital into these areas in the current year. The Group order book remains healthy, well balanced and aligned with theestablished patterns associated within the individual businesses. As a result, we are cautiously optimistic that the markets that we serve willremain strong throughout the remainder of this calendar year. Naturally, weremain vigilant to detect any change in the position but currently these marketsare not indicating any signs of the slowdown in activity being reported in manyother industrial activities. The Board is committed to increasing shareholder value. With this in mind we areconsidering whether the AIM market would provide a more appropriate environmentin which to achieve the Group's objectives and whether it would be in the bestinterests of the Company and its shareholders to transfer to that market. If adecision to move is made, the Board would provide shareholders with 20 businessday's notice by way of an announcement. Finally, the Board recommends the payment of an increased final dividend of1.65p per share (2004-1.33p), making a total for the year of 2.15p (2004-1.75p). Michael Bell28 June 2005 Group Profit and Loss AccountFor the 52 weeks ended 30th April, 2005 2005 2004 Total Total £000 £000 Turnover: Group and share of joint venture 38,241 32,323Less: Share of joint venture turnover (6,046) (6,093)_________________________________________________________ _______ _______ Group turnover 32,195 26,230_________________________________________________________ _______ _______ Operating profit 2,975 1,092Share of operating profit of joint venture 362 302_________________________________________________________ _______ _______ Profit on ordinary activities before interest 3,337 1,394 Interest receivable:Group 37 19Joint venture 7 10 Interest payable:Group (38) (48)_________________________________________________________ _______ _______ Profit on ordinary activities before taxation 3,343 1,375 Tax on profit on ordinary activities (1,061) (451)_________________________________________________________ _______ _______ Profit on ordinary activities after taxation 2,282 924 Dividends (364) (325)_________________________________________________________ _______ _______Retained profit for the Group and its share ofjoint venture 1,918 599 _________________________________________________________ _______ _______ Earnings per share: basic 12.7p 5.0p fully diluted 10.8p 4.2p_________________________________________________________ _______ _______ Group Statement of Total Recognised Gains and Losses 2005 2004 £000 £000 Profit for the financial period 2,282 924Translation differences on foreign currency netinvestments 8 (43)_________________________________________________________ _______ _______ Total gains recognised since last annual report 2,290 881_________________________________________________________ _______ _______ Historical cost profits and lossesThere is no material difference between the result as disclosed in the profitand loss account and the result which would have been reported had the Groupprepared the accounts on an unmodified historical cost basis. Notes The financial information set out above does not constitute the Company'sstatutory accounts for the periods ended 30th April, 2005 or 1st May, 2004 butis derived from those accounts. Statutory accounts for 2004 have been deliveredto the Registrar of Companies, and those for 2005 will be delivered followingthe Company's Annual General Meeting. The auditors have reported on thoseaccounts; their reports were unqualified and did not contain a statement undersection 237 (2) or (3) of the Companies Act 1985. The earnings per share is calculated dividing the profit after taxation of£2,282,000 (2004 - £924,000) by the weighted average of 18,018,988 (2004 -18,634,558) shares in issue in the year. Copies of this announcement are available from the Company's registered officeat MS INTERNATIONAL plc, Balby Carr Bank, Doncaster, DN4 8DH, England. The fullAnnual Report and Accounts will be posted to shareholders shortly and will bedelivered to the Registrar of Companies after it has been laid before theCompany in general meeting. Dividend warrants will be posted on 2nd September, 2005 to members on the booksof the Company at 5th August, 2005. Balance SheetsAt 30th April, 2005 Group Company 2005 2004 2005 2004 (restated) (restated) £000 £000 £000 £000Assets employed________________________________________ _______ ________ ________ _________ Fixed assets Intangible assets 280 280 280 280Tangible assets 8,342 7,995 8,162 7,866Investment insubsidiary undertakings - 6,816 6,801Investment in jointventure - 50 50Joint venture: Share of gross assets 2,090 2,361 - - Share of gross liabilities (1,382) (1,745) - -________________________________________ _______ ________ ________ _________ 9,330 8,891 15,308 14,997________________________________________ _______ ________ ________ _________Current assetsStocks 5,511 4,143 4,099 3,331Debtors 5,390 6,554 6,603 7,422Group pension scheme prepayment- due after more than one year 6,638 6,368 6,638 6,368Cash at bank and in hand 1,013 2,919 920 2,872________________________________________ _______ ________ ________ _________ 18,552 19,984 18,260 19,993Creditors - amounts falling due within one year 11,193 12,544 17,776 19,422________________________________________ _______ ________ ________ _________ Net current assets 7,359 7,440 484 571________________________________________ _______ ________ ________ _________ Total assets less current liabilities 16,689 16,331 15,792 15,568 Creditors - amounts falling due after more than one year 5 245 - 245 Provisions for liabilities and charges 2,922 2,925 2,921 2,925________________________________________ _______ ________ ________ _________ Total assets less liabilities 13,762 13,161 12,871 12,398________________________________________ _______ ________ ________ _________ Capital and reservesCalled up share capital 1,886 2,096 1,886 2,096Capital redemption reserve 855 645 855 645Revaluation reserve 1,853 1,853 1,853 1,853Other reserves 3,967 3,959 3,998 4,005Special reserve 1,629 1,629 1,629 1,629Own shares (738) (738) (738) (738)Profit and loss account 4,310 3,717 3,388 2,908________________________________________ _______ ________ ________ _________ Equity shareholders' funds 13,762 13,161 12,871 12,398________________________________________ _______ ________ ________ _________ Group Cash Flow StatementFor the 52 weeks ended 30th April, 2005 2005 2005 2004 2004 (restated) (restated) £000 £000 £000 £000 Operating profit 2,975 1,092Depreciation charge 891 818Foreign exchange gains (13) (22)RSA grant release (13) (13)SSAP24 pension charge 360 360Increase in stocks (2,743) (1,104)Decrease/(increase) in debtors 1,161 (1,981)(Decrease)/increase in creditors (514) 1,654Increase in progress payments 705 1,892Increase in provisions 48 77Provisions utilitised (197) (65)Pension fund payments (630) (170)_____________________________________________ _______ _______ Cash flow from operating activities 2,030 2,538 Dividends received from joint venture 200 125 Interest paid (2) (35) Taxation (763) (136) Purchase of tangible fixed assets (1,250) (688)Purchase of intangible fixed assets - (29)Sale of tangible fixed assets 22 13_____________________________________________ _______ _______ Capital expenditure and financial investment (1,228) (704) Dividends paid (338) (341)_____________________________________________ ________ _______ Cash (outflow)/inflow before financing (101) 1,447 FinancingPurchase of own shares (1,325) (354)Shares purchased by ESOT - (356)Share options exercised - 349Decrease in long term bank loans (333) (334)Repayments of capital element of finance leases and hire purchase contracts (147) (301) _______ _______ (1,805) (996) ________________________________________________________________________________________________________(Decrease)/increase in cash (1,906) 451________________________________________________________________________________________________________ Reconciliation of net cash flow to movement in net funds 2005 2004 £000 £000 (Decrease)/increase in cash (1,906) 451Cash outflow from decrease in long terms loans 333 334Repayments of capital element of financeleases and hire purchase contracts 147 301__________________________________________________________ _______ _______ Changes in net funds resulting from cash flow (1,426) 1,086 New leases (10) (99)__________________________________________________________ _______ _______ Movement in net funds (1,436) 987 Net funds at 1st May, 2004 2,195 1,208__________________________________________________________ _______ _______ Net funds at 30th April, 2005 759 2,195__________________________________________________________ _______ _______ Analysis of net funds Other non-cash 2004 Cash flows movements 2005 £000 £000 £000 £000Cash at bank and in hand 2,919 (1,906) - 1,013Bank loans (500) 333 - (167)Finance leases and hirepurchase contracts (224) 147 (10) (87) _______ ________ ________ ________ Net funds at 30th April, 2005 2,195 (1,426) (10) 759 _______ ________ ________ ________ Movements in reserves and reconciliation of movements in shareholders' fundsMovements in reserves are as follows: Capital Profit Share redemption Revaluation Other Special Own and loss 2005 2004 capital reserve reserve reserves reserves Shares account Total Total £000 £000 £000 £000 £000 £000 £000 £000 £000At 1st May, 2004 aspreviously reported 2,096 645 1,853 3,959 1,629 - 3,717 13,899 13,697 Prior year adjustment* - - - - - (738) - (738) (731)_____________________ ______ _______ _______ _______ ______ ______ ______ ______ _______ 2,096 645 1,853 3,959 1,629 (738) 3,717 13,161 12,966Profit attributableto members - - - - - - 2,282 2,282 924 Dividends - - - - - - (364) (364) (325)Foreign exchangeadjustments inretranslation ofoverseas investments - - - 8 - - - 8 (43)Repurchase of shares (210) 210 - - - - (1,325) (1,325) (354)Movement in own shares - - - - - - - - (7)_____________________ ______ _______ _______ _______ ______ ______ ______ ______ _______ At 30th April, 2005 1,886 855 1,853 3,967 1,629 (738) 4,310 13,762 13,161_____________________ ______ _______ _______ _______ ______ ______ ______ ______ _______ * Own shares held in our ESOP trust are now recognised as a deductions from shareholders' funds. Previously own shares were held as a fixed asset investment. There is no impact on the profit for the Group for the current year or the prior year as a result of the change in accounting policy. This information is provided by RNS The company news service from the London Stock Exchange