Last checked at 30 Mar 2007 07:00
Garner Plc (formerly Constellation Corporation plc) (the "Company") Preliminary Results Chairman's Statement
I ended my Chairman's Statement for 2005 with "prospects for the Company look better than they have for some considerable time, certainly for as long as I have been involved, with the early months of 2006 continuing the progress made in the last half of the year. The Board remains cautiously optimistic regarding trading prospects for the Group".
I am very pleased to report that the full and final results for 2006 reported herein demonstrate, as did the interim results, that this optimism was well founded.
Turnover for the year shows an increase of 65% to ‚£2,612,000 (2005: ‚£1,580,000) building strongly on the 23% increase shown in the previous year. Significantly, we have seen strong progress in each of the last 3 half year periods, further confirming that the description of 2005 as a "turnaround" year was not misplaced.
As a result of this growth, 2006 has delivered strong profit improvement; an operating profit of ‚£567,000 (2005: ‚£154,000) and pre-tax profit of ‚£451,000 (2005: ‚£46,000). In 2 years, therefore, we have seen a more than doubling of the Company's turnover.
The cost side of our operations, which is well controlled, has also grown with the appointment of additional consultants and researchers. As the profit growth illustrates, the carefully considered investment of this increased headcount has most certainly borne fruit.
I remain very encouraged and impressed by the quality and efforts of all those working at Garner in support of the continued sterling efforts of Andrew Garner and Sue O'Brien in leading the Company. It was a pleasure to invite Sue O'Brien to join our Board as a reflection of her major contribution to the Company's progress since joining.
We have a strong team of 9 consultants and the Company has an impressive client base with several repeat contracts with top FTSE 100 companies.
I would also like to thank and pay tribute to Roger Hingley who has now left the Board for all the hard work and effort he expended on our behalf over a number of years, many of them far from easy.
As a result of 2006's progress we are now starting to see some improvement in our balance sheet position, albeit with a long way still to go. Further improvement here continues to be a major focus of our attention, as does the management of our cash position and of our creditors.
Prospects remain good and the Board remain optimistic that the Company will continue to build on the progress made over the last 18 months. I thank all those involved and look forward to reporting further progress.
J BARTLEChairman30 March 2007
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 31 December 2006 31 December 2006 31 December 2005 ‚£000 ‚£000 TURNOVER 2,612 1,580 ADMINISTRATIVE EXPENSES 2,045 (1,426) TOTAL OPERATING PROFIT/(LOSS) 567 154 Interest payable and similar (116) (108)charges PROFIT/(LOSS) ON ORDINARY 451 46ACTIVITIES BEFORE TAXATION Tax on profit/(loss) on (153) -ordinary activities PROFIT/(LOSS) FOR THE FINANCIAL 298 46YEAR Profit / (loss) per share - 0.97p 0.00pBasic Profit / (loss) per share - 0.97p 0.00pDiluted
All activity arose from continuing operations.
There are no recognised gains and losses other than the gains for the currentand previous years. Accordingly, no statement of total recognised gains andlosses is given.CONSOLIDATED BALANCE SHEETYear ended 31 December 2006 31 December 2006 31 December 2005 ‚£000 ‚£000 ‚£000 ‚£000 FIXED ASSETS Intangible assets - Goodwill 892 959 Tangible assets 16 - 908 959 CURRENT ASSETS Debtors 671 303 Investments - - Cash at bank and in hand - 4 671 307 CREDITORS: amounts falling due 2,845 (3,105) within one year NET CURRENT LIABILITIES (2,174) (2,798) TOTAL ASSETS LESS CURRENT (1,266) (1,839)LIABILITIES CREDITORS: amounts falling due (504) (678)after more than one year PROVISIONS FOR LIABILITIES AND - -CHARGES NET LIABILITIES (1,770) (2,517) CAPITAL AND RESERVES Called up share capital 4,942 4,795 Share premium account 3,845 3,543 Other reserve - - Profit and loss account (10,557) (10,855) TOTAL SHAREHOLDERS' FUNDS (1,770) (2,517)
These financial statements were approved by the Board of Directors on 30 March 2007
Signed on behalf of the Board of Directors
A C GARNER R G ROBINSON
Director Director
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2006 Year ended Year ended 31 December 31 December 2006 2005 ‚£000 ‚£000 Net cash inflow from operating 90 148activities Returns on investment and servicing of (116) (108)finance Capital expenditure and financial (20) -investment Cash flow before use of liquid resources (46) 40and financing Financing 67 (66) (Decrease) / increase in net cash in the 21 (26)period
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Year ended Year ended 31 December 31 December 2006 2005 ‚£000 ‚£000 Increase/(decrease) in cash in the 21 (26)period Net movement on secured loans 76 143 Directors loan advance 300 (80) Changes in net debt resulting from cash 397 37flows Net debt at start of period (1,684) (1,721) Net debt at end period (1,287) (1,684) Notes
1. The financial information set out above does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985. Statutory accounts for the previous year ended 31 December 2005 have been delivered to the Registrar of Companies. Statutory accounts for the year 31 December 2006 will be delivered to the Registrar of Companies and sent to shareholders. An unqualified auditors' report has been given on such accounts.
2. The Directors have not recommended the payment of a dividend.
3. On the basis of current trading trends, with an overdraft facility which
continues to be subject to a quarterly review and discussions with the Group's bankers, the directors have formed a judgement at the time of approving the financial statements that the Company will be able to work within agreed overdraft facilities. On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis.
4. In accordance with FRS 14, profit per ordinary share of 0.97p (2005: 0.00p)
has been calculated by dividing the profit on ordinary activities after taxation of ‚£298,000 by the weighted average number of ordinary shares in issue and ranking for dividend during the period. There were no preference shares at 31 December 2006 (2005: nil) available for conversion and so diluted profit per ordinary share is also 0.97p.
5. The Annual General Meeting of the Company has been convened for Tuesday 8
May 2007 at 2.00pm at the offices of Field Fisher Waterhouse LLP at 35 Vine
Street, London, EC3N 2AA.
6. The Annual Report and Accounts will be mailed to shareholders at their
registered address and copies of the Annual Report will be made available to the public free of charge for one month at the Company's registered office, 6 Derby Street, London W1Y 7HD and at the offices of City Financial Associates Limited, Pountney Hill House, 6 Laurence Pountney Hill, London EC4R 0BL. These may also be viewed on the Company's website at www.garnerinternational.com.
GARNER PLC