Ms Intl. Regulatory News (MSI)

22 Jun 2007 16:33

MS International PLC22 June 2007 Chairman's Statement Results and review It is a pleasure to report a further year of good progress and profitable growthfor the Group. Revenue, pre-tax profit, earnings per share, cash at bank, orderintake and the forward order book all closed higher than the previous year. For the year ended 28 April 2007, the Group profit before taxation amounted to£4.40m (2006-£3.81m) on revenue of £47.88m (2006-£44.44m). Earnings per sharewere 18.2p (2006-15.0p). The balance sheet is stronger and net cash at the year-end had risen to £7.61m(2006-£5.91m). The Group's progressive trend of achieving an enhanced performance is a directresult of major internal effort and the successful implementation of strategicdecisions taken over recent years. Product research and development in defencehas been vitally important in attaining our success, whereas in the other twodivisions, improved facilities and the commissioning of new advanced highcapacity process plant and equipment made the distinction. These initiatives,when supported by superior contract execution and project management, haveyielded a substantial gain in our commercial and financial accomplishments.Conversely, implementing the programmes resulted in a degree of inevitable shortterm disruption to ongoing production. That said, our instinctively cautious butoptimistic approach to managing our operations enabled us to maintain areasonably balanced and satisfactory outcome in all respects. In the defence division, work progresses effectively on both UK Royal Navy andforeign naval projects. Recent success in booking a number of new equipmentorders for overseas navies' ship building programmes has added clarity to ourprospective longer term revenue visibility. Advanced technologies introduced inthe forgings division have been instrumental in creating positive commercialbenefits, as we expand our market share. The petrol station forecourtconstruction joint-venture business traded to a high standard, despite revenuebeing lower than last year, influenced largely by start-up delays in clients'construction programmes. The Group's phased forward order book has enjoyed a significant boost recentlyand is now some 24% higher than that recorded at the corresponding time lastyear, reflecting our strengthening position in the current buoyant markets weserve. Outlook As we enter the new financial year, the Group is well positioned. Currently, ourglobal markets are reasonably optimistic about the short to medium term outlookand we are encouraged by the high level of new business prospects presentlyemerging. Providing this upbeat trend continues into the foreseeable future, wewill endeavour to take advantage of opportunities as they arise. The importance of personal commitment and investment in the businesses cannot beignored. It is essential that we preserve our established agile approach ofadapting rapidly to the ever changing expectations of our customers, by beingtechnologically innovative and simultaneously upgrading internal processes andstreamlining production. These features played a central role in ourachievements during 2006/7 and are critical to our future success. All thingsbeing equal, we are determined to stretch them into 2007/8. The Board recommends the payment of a final dividend of 3.00p (2006-2.20p)making a total for the year of 3.60p (2006-2.78p). Michael Bell22 June, 2007 Group Income StatementFor the 52 weeks ended 28th April, 2007 Restated 2007 2006 Total Total £000 £000Revenue 47,878 44,435Cost of sales (35,795) (32,936) Gross profit 12,083 11,499 Distribution costs (1,970) (1,961)Administrative expenses (6,243) (5,845) (8,213) (7,806) Group trading profit 3,870 3,693 Finance revenue 102 11Finance costs (7) (40)Other finance revenue - pension 435 142 530 113 Profit before taxation 4,400 3,806 Taxation (1,384) (1,309) Profit for the period attributable to equity holders of the 3,016 2,497parent Earnings per share: basic 18.2p 15.0p diluted 17.5p 14.3p Statement of Recognised Income and ExpenseFor the 52 weeks ended 28th April, 2007 Group Company Restated Restated 2007 2006 2007 2006 Total Total Total Total £000 £000 £000 £000Revaluation surplus on land and buildings - 3,396 - 3,396Deferred taxation on revaluation surplus on land and buildings - (454) - (454)Actuarial gains on defined benefit pension scheme 1,550 3,726 1,550 3,726Deferred taxation on actuarial gains on defined benefit pension (465) (1,118) (465) (1,118)schemeCurrency translation differences on foreign investments (58) 85 (55) 91 Net income recognised directly in equity 1,027 5,635 1,030 5,641Profit attributable to equity holders of the parent 3,016 2,497 2,687 2,139 Total recognised income and expense for the period attributable 4,043 8,132 3,717 7,780to equity holders of the parent The financial information set out above does not constitute the Company'sstatutory accounts for the periods ended 28th April, 2007 or 29th April, 2006but is derived from those accounts. Statutory accounts for 2006 have beendelivered to the Registrar of Companies, and those for 2007 will be deliveredfollowing the Company's Annual General Meeting. The auditors have reported onthose accounts; their reports were unqualified and did not contain a statementunder section 237 (2) or (3) of the Companies Act 1985. The financial information has been prepared using the proportionate method ofaccounting for the interest of the Group in Global-MSI plc. The figures for the52 weeks ended 29th April, 2006 have been restated accordingly. It is theopinion of the directors that the proportionate method of accounting rather thanthe equity method better reflects the substance and economic reality of ourinterest in the joint venture. Disclosing the Group's share of the assets,liabilities, revenue and costs of the joint venture provides a more completeunderstanding of the performance and position of the Group. As a result of thechanges, the balance sheet includes the Group's share of the joint venture'sassets and liabilities and the income statement includes its share of the incomeand expenses but the restatement does not affect the previously reported figuresfor profit before taxation, earnings per share or equity. The earnings per share is calculated by dividing the profit after taxation of£3,016,000 (2006 - £2,497,000) by the weighted average of 16,557,004 (2006 -16,639,123) 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 31st August, 2007 to members on the books ofthe Company at 3rd August, 2007. Balance SheetsAt 28th April, 2007 Group Company Restated 2007 2006 2007 2006 £'000 £'000 £'000 £'000ASSETSNon-current assetsProperty, plant and equipment 14,676 12,368 13,837 11,814Intangible assets 253 296 253 296Investments in subsidiaries - - 6,869 6,869Investment in joint venture - - 50 50Defined benefit pension asset 894 - 894 - 15,823 12,664 21,903 19,029 Current assetsInventories 4,327 4,176 3,141 2,710Trade and other receivables 7,288 7,971 6,874 8,435Prepayments 2,109 1,863 2,025 1,781Cash 7,608 5,907 6,884 5,212 21,332 19,917 18,924 18,138 TOTAL ASSETS 37,155 32,581 40,827 37,167 EQUITY AND LIABILITIESEquityIssued capital 1,871 1,871 1,871 1,871Capital redemption reserve 870 870 870 870Other reserves 1,544 1,544 1,544 1,544Revaluation reserve 2,942 2,942 2,942 2,942Special reserve 1,629 1,629 1,629 1,629Foreign exchange reserve (151) (93) (111) (56)Own shares (738) (738) (738) (738)Retained earnings 8,719 5,082 7,110 3,802 16,686 13,107 15,117 11,864 Non-current liabilitiesDefined benefit pension liability - 1,171 - 1,171Finance leases 4 4 - -Provisions 48 114 48 114Government grants 28 41 28 41Deferred income tax liability 1,779 927 1,759 922 1,859 2,257 1,835 2,248 Current liabilitiesTrade and other payables 18,060 16,343 23,423 22,322Finance leases 7 2 - -Provisions 65 65 65 65Government grants 13 13 13 13Income tax payable 465 794 374 655 18,610 17,217 23,875 23,055 TOTAL EQUITY AND LIABILITIES 37,155 32,581 40,827 37,167 Cash Flow StatementsFor the 52 weeks ended 28th April, 2007 Group Company Restated 2007 2006 2007 2006 £000 £000 £000 £000 Trading profit 3,870 3,693 3,420 3,053Adjustments to reconcile trading profit to net cash in flows from operatingactivitiesDepreciation charge 1,127 1,254 924 1,054Amortisation charge 128 69 128 69Diminution in value of subsidiaries - - - (97)Foreign exchange (losses)/gains (58) 85 (55) 91RSA grant release (13) (11) (13) (11)Pension charge 528 486 528 486Decrease in inventories 576 2,323 296 2,114Decrease/(increase) in receivables 683 (1,815) 1,561 (2,151)Increase in prepayments (246) (1,483) (244) (1,462)Increase/(decrease) in payables 1,061 173 572 670(Decrease)/increase in progress payments (68) 3,991 (198) 4,036Provisions utilised (66) (64) (66) (64)Pension fund payments (608) (486) (608) (486) Cash generated from operating activities 6,914 8,215 6,245 7,302 Interest received/(paid) 95 (29) 78 (25)Taxation paid (1,329) (1,177) (1,155) (940) Net cash flow from operating activities 5,680 7,009 5,168 6,337 Investing activitiesPurchase of property , plant and equipment (3,613) (1,733) (3,053) (1,446)Purchase of intangible asset (85) (42) (85) (42)Sale of property, plant and equipment 178 115 106 93Dividends received from joint venture - - - 175 Net cash used in investing activities (3,520) (1,660) (3,032) (1,220) Financing activitiesPurchase of own shares - (207) - (207)Dividends paid (464) (372) (464) (372)Repayment of bank loans - (167) - (167)New finance leases 12 - - -Repayments of capital element of finance leases (7) (81) - (79) Net cash flow used in financing activities (459) (827) (464) (825) Movement in cash and cash equivalents 1,701 4,522 1,672 4,292Opening cash and cash equivalents 5,907 1,385 5,212 920 Closing cash and cash equivalents 7,608 5,907 6,884 5,212 Reconciliation of movement in equity Capital Foreign Issued redemption Other Revaluation Special exchange Own Retained capital reserve reserves reserve reserves reserves Shares earnings Total £000 £000 £000 £000 £000 £000 £000 £000 £000(a) Group At 30th April, 2005 1,886 855 1,544 - 1,629 (178) (738) 556 5,554Total recognised income and - - - 2,942 - 85 - 5,105 8,132expense for the yearDividends paid - - - - - - - (372) (372)Repurchase of shares (15) 15 - - - - - (207) (207) At 29th April, 2006 1,871 870 1,544 2,942 1,629 (93) (738) 5,082 13,107 Total recognised income - - - - - (58) - 4,101 4,043and expense for the yearDividends paid - - - - - - - (464) (464) At 28th April, 2007 1,871 870 1,544 2,942 1,629 (151) (738) 8,719 16,686 (b) Company At 30th April, 2005 1,886 855 1,544 - 1,629 (147) (738) (366) 4,663Total recognised income - - - 2,942 - 91 - 4,747 7,780and expense for the yearDividends paid - - - - - - - (372) (372)Repurchase of shares (15) 15 - - - - - (207) (207) At 29th April, 2006 1,871 870 1,544 2,942 1,629 (56) (738) 3,802 11,864 Total recognised income - - - - - (55) - 3,772 3,717and expense for the yearDividends paid - - - - - - - (464) (464) At 28th April, 2007 1,871 870 1,544 2,942 1,629 (111) (738) 7,110 15,117 (1) Share Capital The balance classified as share capital includes the nominal value on issue of the Company's equity share capital, comprising 10p Ordinary shares. (2) Capital redemption reserve The balance classified as capital redemption reserve represents the nominal value of issued share capital of the Company, repurchased (3) Other reserves This is the revaluation reserve previously arising under UK GAAP which is now part of non-distributable retained reserves. (4) Revaluation reserve The asset revaluation reserve is used to record increases in the fair value of land and buildings and decreases to the extent that such decrease relates to an increase on the same assets previously recognised in equity. (5) Special reserve The balance classified as special reserve represents the share premium on the issue of the Company's equity share capital. (6) Foreign exchange reserve The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries. It is also used to record the effect of hedging net investments in foreign operations. (7) During 1991 the Company established an Employee Share Ownership Trust ("ESOT"). The trustee of the ESOT is Appleby Trust (Jersey) Ltd, an independent company registered in Jersey. The ESOT provides for the issue of options over Ordinary shares in the Company to Group employees, including executive directors, at the discretion of the Remuneration Committee. The trust has purchased an aggregate 2,154,069 Ordinary shares, which represents 11.4% of the issued share capital of the Company at an aggregate cost of £738,000. The market value of the shares at 28th April, 2007 was £3,425,000. The Company has made payments of £Nil (2006 - £Nil) into the ESOT bank accounts during the period. No options over the shares (2006 - Nil) have been granted during the period. Details of the outstanding share options are included in the Directors' Remuneration Report. The assets, liabilities, income and costs of the ESOT have been incorporated into the Company's financial statements. Total ESOT costs charged to the profit and loss account in the period amounts to £5,000 (2006 - £Nil). During the period no share options were exercised (2006 - £Nil) and no additional shares purchased (2006 - Nil). This information is provided by RNS The company news service from the London Stock Exchange