New World Oil And Gas Regulatory News (NEW)

25 Sep 2006 07:01

Newcourt Group plc25 September 2006 Newcourt Group Plc Interim Results Newcourt Group plc ("Newcourt", the "Group" or the "Company"), a leading Irishsupport and outsourced service group with businesses in the security,recruitment and other related sectors, today announces its results for the sixmonths ended 30 June 2006. Highlights Six months ended Six months ended Year ended 30 June 2006 30 June 2005 31 December 2005 unaudited Change audited audited •'000 % •'000 •'000 Turnover 45,391 52% + 29,836 65,325 Gross profit 7,843 45% + 5,423 11,917 Trading profit 3,668 42% + 2,578 5,454 Profit before tax 1,815 49% + 1,220 2,235 • Turnover increased by €15.5 million (52%) on the same period in theprior year. €5.7 million of this increase relates to contributions fromacquisitions completed in 2006. The balance, €9.8 million, relates to organicgrowth in turnover (33% increase on the same period in the prior year). • The following organic growth in trading profit was achieved: Manguarding Security division: 33% Recruitment/Aviation outsourcing division: 30% • Operating profit as adjusted for the effect of FRS 22 (Share Options)increased by €680k (42%) on the same period in the prior year. €360k of thisincrease relates to contributions from 2006 acquisitions (post goodwill). Thebalance, €320k, relates to organic growth in operating profit (20%). Newcourt completed the following acquisitions during the period: Company Sector DateKenny-Whelan Associates Limited Recruitment FebruaryThe People Group Limited Recruitment MarchSecurity Technology Ireland Limited Electronic Security AprilBruce Shaw Facilities Management Limited Property and Facilities Management AprilEcom Interaction Limited Business Process Outsourcing and May Contact Centre • Newcourt completed the following acquisitions subsequent to the periodend: Company SectorLoss Control Services Limited (Nifast) Health and Safety Training and ConsultancyEly Property Group plc Property Manager and Student Accommodation Provider Group management are pleased with the integration of all of these acquisitions. • The company completed a successful fundraising in April 2006 raisingcirca €9.1m. For further information please contact: Ted O'Neill, Chief ExecutiveMobile: +353 86 8214467 Damien Murray, Finance DirectorTel: +353 1 6698242 Chairman's Statement I am very pleased to report a strong trading performance for the first sixmonths of 2006. Results Turnover in the period was €45 million, an increase of 52% over the same periodlast year. New acquisitions accounted for €5.7 million of turnover with existingbusinesses increasing their turnover by €9.8 million or 33%. Profit before tax of €1.8 million compares with profit before tax of €1.2million in the six months to June 2005, equating to a 49% increase in pre-taxprofits. The group completed five acquisitions in the first half of the year to furtherdevelop existing areas of the business and to broaden the group's base in boththe support services and outsourced services markets. Since the period end thegroup has acquired Loss Control Services t/a Nifast. The group's management arevery pleased with the progress of the integration of these acquisitions. Shareholders will also be aware that an EGM of the company, held on 17th August2006, approved the acquisition of Ely Property Group plc and I look forward tothe integration and further development of the Ely business during the remainderof the year. I am very pleased that John Butler joined the board as a non-executive directoron 16th June 2006 replacing Philip Cunningham who retired having made asignificant contribution to the development of the group since joining the boardin April 2004. I am also pleased to announce that Philip Marley, the CEO of Ely Property Groupplc, joined the board as an executive director on 31 August 2006. Outlook The strong organic growth together with the successful integration ofacquisitions delivered a strong performance in the first half of the year. I amoptimistic that this performance will continue for the remainder of the year. James Osborne Chairman Consolidated Profit and Loss Account (2006:unaudited 2005:audited) Before Goodwill and Six Before Goodwill Six goodwill group months goodwill and group months and group overhead ended 30 and group overhead ended 30 overhead June overhead June 2006 2006 2006 2005 2005 2005 Total Total •'000 •'000 •'000 •'000 •'000 •'000Turnover- continuing operations 39,668 - 39,668 29,836 - 29,836- acquisitions 5,723 - 5,723 - - - 45,391 - 45,391 29,836 - 29,836Cost of sales (37,548) - (37,548) (24,413) - (24,413)Gross profit 7,843 - 7,843 5,423 - 5,423 Administration expenses (4,175) - (4,175) (2,845) - (2,845)Trading profit 3,668 - 3,668 2,578 - 2,578Share options and warrant costs - (87) (87) - - -Group overhead - (500) (500) - (454) (454)Amortisation of goodwill - (887) (887) - (523) (523) 3,668 (1,474) 2,194 2,578 (977) 1,601Operating profit- continuing operations 3,006 - - 2,578 - -- acquisitions 662 - - - - - 3,668 (1,474) 2,194 2,578 (977) 1,601Interest receivable 25 4Interest payable and similar charges (404) (385)Profit on ordinary activities before taxation 1,815 1,220Taxation (444) (290)Profit on ordinary activities after taxation 1,371 930Minority Interests - (7)Profit for the period 1,371 923 Consolidated statement of total recognised gains and losses Six Six months months ended ended 30 June 30 June 2006 2005 •'000 •'000 Profit for the financial period 1,371 923Exchange translation difference on foreign currency (144) (208) Total recognised gains and losses for the period 1,227 715 Consolidated Balance Sheet 30 June 30 June 31 Dec (2006:unaudited, 2005:audited) 2006 2005 2005 •'000 •'000 •'000 Fixed assetsTangible assets 5,268 2,899 3,133Intangible assets - goodwill 43,388 21,402 20,985Intangible assets - intellectual property 205 - 133 48,861 24,301 24,251Current assetsStocks 679 440 491Debtors 23,750 12,525 15,597Cash at bank and in hand 5,001 985 9,099 29,430 13,950 25,187Creditors (amounts falling due within one year) (28,020) (11,868) (15,363)Net current assets 1,410 2,082 9,824 Total assets less current liabilities 50,271 26,383 34,075 Creditors (amounts falling due after more than one (13,002) (10,357) (7,520)year)Provisions for liabilities (61) (72) (39) Net assets 37,208 15,954 26,516 Capital and reservesCalled up share capital 18,917 9,777 17,076Share premium account 16,867 5,007 9,330Share options/warrant reserve 87 - -Other reserves (256) (285) (112)Profit and loss account 1,593 1,477 222Shareholders' funds 37,208 15,976 26,516Minority interests - (22) - 37,208 15,954 26,516 Consolidated cash flow statement (2006: unaudited, 2005:audited) Six months Six months ended ended 30 June 30 June 2006 2005 •'000 •'000 Net cash inflow from operating activities 1,834 1,771Returns on investment and servicing of finance (379) (381)Taxation (180) (136)Capital expenditure and financial investment (298) (247)Acquisitions and disposals (12,339) (516)Net cash outflow before financing (11,362) 491 7,270 (306) Financing(Decrease)/Increase in cash during the period (4,092) 185 Reconciliation of net cash flow to movement in net debt(Decrease)/Increase in cash during the year (4,092) 185Net increase in loans, overdrafts and invoice discounting facilities 1,376 186Repayment of finance leases 90 120Changes in net cash resulting from cash flows (2,626) 491 (3,106) (7,230)Net debt at beginning of periodFinance leases acquired with subsidiaries (76) -New finance leases drawn down - (289)Loans acquired with subsidiaries (3,025) -Foreign exchange translation difference 131 (266)Net debt at end of period (8,702) (7,294) Notes 1. Accounting policies In accordance with Irish GAAP, the company has adopted FRS 22, "Accounting forShare Options and Warrants". The financial information for the six months hasbeen prepared on the basis of the accounting policies set out in the full annualaccounts of the group for the year ended 31 December 2005, except for theaccounting policy for share options and warrants outlined below. Share options and warrants The fair value of options granted under the group's equity settled share optionscheme is recognised as an expense with a corresponding increase in equity. Thefair value is measured at grant date and spread over the period during which theemployees become unconditionally entitled to the options. The fair value of theoptions granted is measured using a binomial lattice model, taking into accountthe terms and conditions upon which the options were granted. Vesting conditionsare non-market and, consequently, the amount recognised as an expense isadjusted to reflect the actual number of share options that vest. 2 Segmental analysis Six months Six months ended ended 30 June 30 June 2006 2005 •'000 •'000 The segmental analysis of turnover and operating profits are as follows: Turnover Security - Manguarding 28,864 22,963 - Electronics 2,866 2,082 Recruitment/Aviation outsourcing 12,411 4,791 Facilities Management/Other 1,250 - Total turnover 45,391 29,836 Trading profits •'000 •'000 Security - Manguarding 2,459 1,853 - Electronics (149) 187 Recruitment/Aviation outsourcing 1,253 538 Facilities Management/Other 105 - Total trading profits 3,668 2,578 3 Employees Six months Six months ended ended 30 June 30 June 2006 2005 The average weekly number of employees, including executive directors, during the year, was as follows: Administration staff 104 76 Security staff 1,922 1,556 Engineers 53 37 Facilities management/other 112 - Recruitment consultants and temporary placements 227 186 2,418 1,855 4 Earnings per share Six months ended 30 June 2006 •'000 Earnings as reported 1,371 Adjustment for share options/warrants 87 Adjustment for goodwill 887 Earnings adjusted for goodwill and share options/warrants 2,345 Weighted average number of ordinary shares 71,659 Diluted weighted average number of ordinary shares 73,104 Basic earnings per ordinary share - After goodwill amortisation and share options/warrants €0.019 - Before goodwill amortisation and share options/warrants €0.033 Diluted earnings per ordinary share - After goodwill amortisation and share options/warrants €0.019 - Before goodwill amortisation and share options/warrants €0.032 Basic earnings per share is calculated by dividing the profit attributable toequity holders of the Company by the weighted average number of ordinary sharesin issue during the period, excluding ordinary share options and warrants. Diluted earnings per share is calculated by adjusting for the weighted averagenumber of ordinary shares outstanding to assume conversion of all dilutivepotential ordinary shares. Options and warrants granted under Employee ShareOption Schemes dilute the earnings per share by increasing the weighted averagenumber of shares without changing the net profit. 5 Reconciliation of movements in shareholders' funds 30 June 30 June 2006 2005 •'000 •'000 Shareholders funds at beginning of period 26,516 15,261 Total recognised gains and losses 1,227 715 Increase in share options/warrant reserve 87 - Nominal value of shares issued 1,841 - Movement in share premium net of issue costs 7,537 - Shareholders funds at end of period 37,208 15,976 6 Gross cash flows Six months Six months ended ended 30 June 30 June 2006 2005 •'000 •'000 Reconciliation of operating profit to net cash inflow from operating activities Operating profit 2,194 1,601 Depreciation 468 267 Share options and warrant costs 87 - Profit on sale of tangible fixed assets - (19) Amortisation of goodwill 887 523 (Increase) in debtors (2,425) (1,855) Increase in creditors 868 1,421 (Increase) in stock (245) (167) Net cash inflow from operating activities 1,834 1,771 Return on investment and servicing of finance Interest received 25 4 Interest paid (382) (367) Interest element of finance lease rental payments (22) (18) (379) (381) Capital expenditure and financial investment Payments to acquire tangible fixed assets (226) (338) Receipts from sale of tangible fixed assets - 91 Payments to acquire intellectual property (72) - (298) (247) Acquisitions and disposals Payments in respect of the acquisition of subsidiaries (13,737) - Cash and cash equivalents acquired with subsidiaries 1,937 - Payments in respect of deferred consideration (539) (516) (12,339) (516) Financing Issue of share capital 8,736 - Movement in loans (833) - Repayment of loans - - Repayment of finance leases (90) (120) Increase in invoice discounting facilities (543) (186) 7,270 (306) 7 Analysis of changes in net debt At 31 December Cashflows Foreign Acquisitions At 30 June 2005 exchange 2006 •'000 •'000 •'000 •'000 •'000 Cash at bank and in hand 9,099 (4,092) (6) - 5,001 Bank loans, overdrafts and invoice discounting facilities (11,731) 1,376 137 (3,025) (13,243) Finance leases (474) 90 - (76) (460) (3,106) (2,626) 131 (3,101) (8,702) 8 Analysis of borrowings: 30 June 30 June Bank loans, overdrafts and invoice discounting facilities 2006 2005 •'000 •'000 Repayable within one year 6,730 2,937 Repayable between one and two years 1,386 1,535 Repayable between two and five years 3,621 2,873 Repayable after five years 1,506 477 13,243 7,822 9 Post balance sheet events Subsequent to the period end, the company acquired Loss Control Services Limitedfor an upfront cost of €2.5 million with deferred payments of €0.75 million duein July 2007. In addition the company acquired Ely Property Group Plc for c€19.4 million of which €14.5 million was paid in cash. The balance of theconsideration, c €4.9 million was settled by the issue of new non-transferableconvertible preference shares in Newcourt. The company completed a successfulfundraising in July 2006 raising circa €9.1m. 25 September 2006 This information is provided by RNS The company news service from the London Stock Exchange