Ms Intl. Regulatory News (MSI)

29 Nov 2005 07:00

MS International PLC29 November 2005 MS INTERNATIONAL plc EXECUTIVE DIRECTORS Michael Bell Michael O'Connell David Pyle NON EXECUTIVE Roger Lane-Smith SECRETARY David Pyle REGISTERED OFFICE Balby Carr Bank Doncaster DN4 8DH PRINCIPAL OPERATING DIVISIONS Defence Forgings Petrol Station Forecourt Structures JOINT VENTURE Global-MSI plc Chairman's Statement I am pleased to report that the year has started well, reflecting the continuingstrength of the markets we serve. In addition, our commitment to investing inthe business, through both capital investment and product developmentprogrammes, continued to serve us well and placed us in a good position to takeadvantage of the many global opportunities available to us. The outcome wasescalating levels of activity that culminated in both higher revenues andprofits for the Group. A profit before taxation of £2.00m (2004 - £1.54m) was achieved on revenue of£19.30m (2004 - £16.41m) for the twenty-six weeks to 29 October 2005. Earningsper share were 8.1p (2004 - 5.4p). The three operating divisions - defence, forgings and petrol station forecourtstructures - each achieved higher revenue and enhanced profitability,highlighting the improving quality of the underlying substance and operatingperformances of the individual businesses. The cumulative value of the Group's order book has grown progressively in linewith the upturn in business activity that coincided with some superiorproduction processes coming on stream. In September, the order book was enhanced significantly when the UK Ministry ofDefence (MoD) announced that it had awarded the Company a £15m contract toup-grade a first batch of twenty-four of our in-service MSI-DS 30mm naval gunsystems. Since 2000 it has been evident that the MoD required an effectivesolution to reduce the vulnerability of warships operating in littoral watersfrom armed combatants approaching vessels by using small, fast civil craft.Following three years of research and the development of a trials demonstrator,the Royal Navy, in 2003, conducted comprehensive sea trials of the MSI solution.The up-grade, which incorporates innovative sensor and tracking technology in areconfigured design, was down-selected by the MoD as the most efficient and costeffective solution proposed, when compared to other offerings from internationalcompetitors. Deliveries commence in 2006 and will be phased over a number ofyears. During the half year the Company purchased 50,000 MS INTERNATIONAL plc sharesfor cancellation, at a total cost of £60,000. At the end of the half-year, netborrowings amounted to £420,000. I advised shareholders in my last annual statement that the Board wasconsidering a move to the AIM market. After further review the Board is of theopinion that such a move would not necessarily provide a more appropriate optionto the main exchange and therefore we do not currently propose a change. The Board remains cautiously optimistic that the levels of trading will continuethrough the remainder of the year. These matters considered the Board hasdeclared an interim dividend of 0.58p per share (2004 - 0.50p). Michael Bell 28th November 2005 MS INTERNATIONAL plc Basis of Preparation These interim financial statements, which have been prepared on the basis of theaccounting policies set out in the announcement restating financial informationunder International Financial Reporting Standards (copies of which are availablefrom the Company Secretary, on request), do not constitute statutory accountswithin the meaning of section 254 of the Companies Act 1985 and are unaudited. The figures for the year ended 30th April, 2005 do not constitute the Company'sstatutory accounts for that period but have been extracted from the statutoryaccounts and then translated into International Financial Reporting Standards. The auditor's report on those accounts, which have been filed with the Registrar of Companies, was unqualified and did not contain any statement under section 237(2) or (3) of the Companies Act 1985. Consolidated Income Statement 26 weeks ended 26 weeks ended 52 weeks ended 29th Oct. 2005 30th Oct. 2004 30th April 2005 £'000 £'000 £'000Group revenue 19,301 16,408 32,195 Profit before interest and taxation 1,570 1,293 2,921Interest receivable - 35 37Interest payable (39) (20) (38)Share of profit of joint venture 464 236 369 Profit before taxation 1,995 1,544 3,289 Taxation (638) (519) (1,046) Profit for the period attributable to equity holders of the parent 1,357 1,025 2,243 Earnings per share - basic 8.1p 5.4p 12.4p Earnings per share - diluted 7.7p 5.0p 11.5p MS INTERNATIONAL plc Statement of Recognised Income and Expenses 26 weeks 26 weeks 52 weeks ended 29th Oct. ended 30th ended 30th 2005 Oct. 2004 April 2005 £'000 £'000 £'000 Actuarial gains/(losses) on defined benefit pension 636 23 (203)schemeDeferred taxation on actuarial gains/losses on defined (191) (7) 61benefit pension schemeCurrency translation differences on foreign investments 52 (8) 7Profit attributable to equity holders of the parent 1,357 1,025 2,243 Total recognised income and expenses for the period 1,854 1,033 2,108 Notes1. Taxation on profit has been calculated at 32% (2004 - 34%) on the Group profit for the period as adjusted for taxation purposes, and includes a charge of £125,000 in respect of the joint venture (2004 - £64,000) 2. The Board has declared an interim dividend of 0.58p per share. Dividend warrants will be posted on 27th January, 2006 to members registered on the books of the Company at 6th January, 2006 3. On the 3rd October, 2005, the Company redeemed 50,000 of its own ordinary shares at a market price of 120 1/2p MS INTERNATIONAL plc Consolidated Balance Sheet 26 weeks ended 26 weeks ended 52 weeks ended 29th Oct. 2005 30th Oct. 2004 30th April 2005 £'000 £'000 £'000ASSETSNon current assetsProperty, plant and equipment 8,412 8,030 8,299Intangible assets 275 326 323Investment in joint venture 1,047 596 708Deferred income tax asset 301 505 514 10,035 9,457 9,844 Current assetsInventories 4,906 5,190 5,511Trade and other receivables 6,421 6,552 5,030Prepayments 609 102 360Cash and cash equivalents - 1,454 1,013 11,936 13,298 11,914 TOTAL ASSETS 21,971 22,755 21,758 EQUITY AND LIABILITIESEquityIssued capital 1,881 1,969 1,886Capital redemption reserve 860 772 855Revaluation reserve 1,544 1,544 1,544Special reserve 1,629 1,629 1,629Foreign exchange reserve (126) (185) (178)Own shares (738) (738) (738)Retained earnings 2,022 240 556 7,072 5,231 5,554Non current liabilitiesPension liability 4,337 4,787 5,039Loans and borrowings 4 42 5Provisions 146 243 178Government grants 46 60 52 4,533 5,132 5,274 Current liabilitiesTrade and other payables 9,201 11,366 10,145Loans and borrowings 67 422 249Provisions 65 164 65Government grants 13 13 13Income tax payable 600 427 458Cash and cash equivalents 420 - - 10,366 12,392 10,930 TOTAL EQUITY AND LIABILITIES 21,971 22,755 21,758 MS INTERNATIONAL plc Consolidated Cash Flow Statement 26 weeks ended 26 weeks ended 52 weeks ended 29th Oct. 2005 30th Oct. 2004 30th April 2005 £'000 £'000 £'000 Net Cash (Outflow)/Inflow from Operating Activities (253) 13 1,265Investing activitiesDividends received from joint venture - 200 200Purchase of intangible fixed assets (8) (46) (46)Purchase of tangible fixed assets (750) (443) (1,204)Sale of tangible fixed assets 97 - 22 Net Cash Used in Investing Activities (661) (289) (1,028)Financing activitiesPurchase of own shares (60) (669) (1,325)Dividends paid (276) (250) (338)Repayment of bank loan (139) (167) (333)Repayment of capital element of finance leases (44) (103) (147) Net Cash Flow from Financing Activities (519) (1,189) (2,143) Movement in cash and cash equivalents (1,433) (1,465) (1,906)Opening cash and cash equivalents 1,013 2,919 2,919 Closing cash and cash equivalents (420) 1,454 1,013 MS INTERNATIONAL plc Reconciliation of Movement in Equity Share Capital Revaluation Foreign Special Own Retained Total Capital Redemption reserve exchange reserve Shares Earnings reserve reserve At 30th October, 2004 1,969 772 1,544 (185) 1,629 (738) 240 5,231Profit attributable to - - - - - - 1,218 1,218equity holders of theparentDividends - - - - - - (88) (88)Actuarial losses on - - - - - - (226) (226)deferred benefit pensionschemeDeferred taxation on - - - - - - 68 68actuarial lossesForeign exchange - - - 7 - - - 7adjustments inretranslation of overseas investmentsRepurchase of own shares (83) 83 - - - - (656) (656) At 30th April 2005 1,886 855 1,544 (178) 1,629 (738) 556 5,554 Profit attributable to - - - - - - 1,357 1,357equity holders of theparentDividends - - - - - - (276) (276)Actuarial profits on - - - - - - 636 636defined benefit pensionschemeDeferred taxation on - - - - - - (191) (191)actuarial profitsForeign exchange - - - 52 - - - 52adjustments inretranslation of overseasinvestmentsRepurchase of own shares (5) 5 - - - - (60) (60) At 29th October 2005 1,881 860 1,544 (126) 1,629 (738) 2,022 7,072 MS INTERNATIONAL plc Net Cash (Outflow)/Inflow from Operating Activities 26 weeks ended 26 weeks ended 52 weeks ended 29th Oct. 2005 30th Oct. 2004 30th April 2005 £'000 £'000 £'000 Profit before interest and taxation 1,570 1,293 2,921Depreciation 552 418 891Amortisation of intangible fixed assets 47 - -Foreign exchange gains/(losses) 52 (16) (13)Government grant release (6) (5) (13)Provisions utilised (32) (33) (197)Pension charge 176 140 414Profit on sale of fixed assets (4) - -Decrease/(increase) in inventories 1,433 (1,101) (2,743)(Increase)/decrease in receivables (1,331) (499) 1,123(Increase)/decrease in prepayments (309) 296 38(Decrease)/increase in payables (529) 560 (514)(Decrease)/increase in progress payments (1,243) (359) 705Increase in provisions - 48 48Pension fund payments (242) (381) (630) Cash generated from operations 134 361 2,030Interest (paid)/received (39) 13 (2)Taxation paid (348) (361) (763) Net cash (outflow)/inflow from operating activities (253) 13 1,265 This information is provided by RNS The company news service from the London Stock Exchange