New World Oil And Gas Regulatory News (NEW)

24 Mar 2006 07:01

Newcourt Group plc24 March 2006 Newcourt Group Plc Preliminary Results Newcourt Group plc ("Newcourt", the "Group" or the "Company"), a leading supportand outsourced service group with businesses in the security and recruitmentsectors in Ireland, today announces its results for the year ended 31 December2005. Highlights • 53% increase in turnover to €65 million • 224% increase in EBITDA (excluding IPO related transaction costs) to €5.2 million • Admission to AIM and IEX on 10 November 2005 • Equity fundraising of €10m (net of expenses) Since the year end Newcourt has acquired Kenny-Whelan Associates Limited and ThePeople Group Limited to expand its operations in the recruitment sector. For further information please contact: Ted O'Neill, Chief ExecutiveMobile: +353 86 8214467 Damien Murray, Company SecretaryTel: +353 1 6698242 Chairman's Statement I am pleased to present the results of Newcourt Group Plc for the financial yearending 31 December 2005. This is the first set of results published since ourshares were quoted on the Alternative Investment Market (AIM) and the IrishEnterprise Exchange (IEX) in November of last year. We believe that the quotewill give Newcourt greater scope and flexibility in implementing its plan tobecome a major support and outsourced services group focussed, principally, onthe island of Ireland. Results Pre-tax profits for the Group for the period were €2.235 million after chargingtransaction costs of €340,000 associated with the IPO and goodwill amortisationof €1.126 million. This compares with a pre-tax profit of €340,000 in the yearto 31 December 2004. Turnover achieved in 2005 amounted to €65.3 million, which compares to €42.7million for the previous period (of which €13.8 million related to acquisitionsmade during that period). The total adjusted earnings per share for the period was 6.09 cents, compared to2.40 cents in 2004. Net debt, including deferred payments on acquisitions atthe year end fell to €4.590 million from €12.582 million at the end of 2004,largely reflecting the additional funds raised at the time of our IPO. Dividends Prior to the IPO, Newcourt declared an extraordinary dividend of €0.2025 pershare to shareholders on the register of members on 22 September 2005. Theboard is not recommending the payment of any further dividends at this point. Personnel Prior to the listing of our shares on AIM and IEX, Ray French, Barry Herriott,Niall McFadden and Donal Roche all retired from the board. I would like totake this opportunity to thank them for the contribution they have made to thedevelopment of Newcourt since its inception in November 2002. John Barry, Managing Director of Sigmar Group Limited, joined the board as anexecutive director on 14 September 2005. Bill McGinnis, who is Chairman ofFederal Security Services in Northern Ireland, was appointed to the board as anon-executive director on 1 December 2005. Outlook Newcourt operates in a dynamic and changing marketplace and is well positionedto capitalise on the opportunities that such an environment produces. Theresults for 2005 were very satisfactory and the Group's performance in the firstmonths of 2006 encourage us to believe that this trend will continue in thecurrent financial year. Finally, on behalf of the board, I would like to thank all of the management andstaff of the Newcourt Group for their commitment and contribution during 2005. James Osborne Chairman 24 March 2006 Chief Executive's Review 2005 was a very positive and important year for us. The Group experiencedstrong organic growth across all of its businesses, while at the same timeconsolidating the acquisitions made in 2003 and 2004. Prior to the listing ofour shares on AIM and IEX, we increased our holding in Sigmar RecruitmentConsultants Limited from 51% to 100% as this will enable us to accelerate thegrowth and development of our recruitment business. As part of thesearrangements, those sellers that have executive responsibilities in SigmarRecruitment Consultants Limited elected to receive part of the consideration inthe form of shares in Newcourt, thus enabling them to continue to participate inthe further growth and development of the Group going forward. Operations Security & Outsourced Services Turnover in this division for the year at €54 million represents an increase of46% on the previous year. Most of this increase represents organic growthacross all of the businesses within this division. Operating profit (beforegoodwill amortisation, Group and IPO costs) grew by 75% to €4.188 million,reflecting strong growth in all markets. The Group has now branded all of its manned guarding businesses under theFederal umbrella but the major electronic security solutions business continuesto operate under the HEA name. The Federal Group's business is focussed principally in the following threeareas: (i) major retail, commercial and financial institutions; (ii) healthboards and hospitals; and (iii) State body and government work throughout theisland of Ireland. The current year has started off well for the division and I am optimistic thatthis business will continue to show further progress in 2006. Recruitment Turnover in this division of €11.3 million represented an increase of 96% overthe previous period. Again, most of this growth was organic, and includeddevelopments in Prague, further growth in Sigmar Aviation and the establishmentof Dal Riada Executive Search & Selection. Operating profit (before goodwill amortisation, Group and IPO costs) grew by314% to €1.266 million, reflecting strong growth in Sigmar RecruitmentConsultants Limited and the further development of the other businesses in thedivision. Sigmar Group is focussed primarily on the mid-market sector of the Irishrecruitment sector but the development of Sigmar Aviation and Dal RiadaExecutive Search & Selection significantly expand the business offering.Outside Dublin, Sigmar has established offices in both Cork and Galway and isusing the base in Prague to develop a presence in Bratislava. In addition,Sigmar opened an office in Warsaw in January 2006. New Developments In February of this year, Sigmar Group acquired 100% of Kenny-Whelan AssociatesLimited ("Kenny-Whelan"). Kenny-Whelan, which is based in Cork, specialises inthe provision of outsourced staffing, recruitment and human resource services,principally through the provision of contract staff to the pharmaceutical andengineering sectors. It counts a number of leading national and internationalcompanies amongst its clients to whom it supplies qualified and experiencedengineering and other technical staff from its extensive data base ofexperienced contract personnel on long and short term contracts. Initialconsideration was €2.5 million with deferred payments estimated at €3.5 millionbased on the forecast results of the company for 2006 and 2007. We are pleasedto have acquired this long standing and much respected business. Progress sincethe acquisition has been encouraging. On 21 March 2006 Sigmar Group acquired 100% of The People Group Limited ("PeopleGroup") for an initial consideration of €2.685 million. Based in Dublin, PeopleGroup is a market leader in the area of marketing and sales executiverecruitment that counts a number of leading national and international companiesamongst its clients. Additional consideration may become payable subject to thefuture performance of People Group. The maximum additional considerationpayable, should certain profit targets be achieved, is capped at €5 million. Looking Forward I have no doubt that we will be busy in the current year both with thedevelopment of our existing businesses through further organic growth and inassessing further strategically targeted acquisitions and other developments inthe support and outsourced services sector. Our intention is to create a broadly based support services group and I lookforward to continuing to develop this strategy in conjunction with my executivecolleagues Hugh O'Neill, Managing Director - Security and Outsourced Services,John Barry, Managing Director - Sigmar Group Limited and Damien Murray - ChiefFinancial Officer and Group Secretary. I would also like to take this opportunity to thank our Chairman and the boardfor their help and assistance during the past year and to thank the managementand staff throughout the Group for their contribution to the successfuldevelopment of Newcourt. Ted O'Neill Chief Executive 24 March 2006 Consolidated Profit and Loss Account (Audited) Year ended 31 December 2005 2004 •'000 •'000Turnover- continuing operations 65,325 28,944- acquisitions - 13,782 65,325 42,726Cost of sales (53,408) (34,529)Gross profit 11,917 8,197Administration expenses (6,463) (5,397)Trading profit 5,454 2,800Group overhead (934) (821)IPO related transaction costs (340) -Amortisation of goodwill (1,126) (972) Operating profit (loss)- continuing operations 3,054 1,156- acquisitions - (149) 3,054 1,007Interest receivable 12 2Interest payable and similar charges (831) (669)Profit on ordinary activities before taxation 2,235 340Taxation (538) (299)Profit on ordinary activities after taxation 1,697 41 Basic earnings per ordinary shareAfter IPO costs and goodwill amortisation •.03271 •.00098Before IPO costs and goodwill amortisation •.06096 •.02426 Diluted earnings per ordinary shareAfter IPO costs and goodwill amortisation •.03265 •.00098Before IPO costs and goodwill amortisation •.06086 •.02426 Consolidated Balance Sheet (Audited)As at 31 December 2005 2004 •'000 •'000 Fixed assets Tangible assets 3,133 2,501 Intangible assets - goodwill 20,985 20,925 Intangible assets - intellectual property 133 - 24,251 23,426 Current assets Stocks 491 273 Debtors 15,597 10,670 Cash at bank and in hand 9,099 800 25,187 11,743 Creditors (amounts falling due within one year) (15,363) (10,229) Net current assets 9,824 1,514 Total assets less current liabilities 34,075 24,940 Creditors (amounts falling due after more than one year) (7,520) (9,661) Provisions for liabilities and charges (39) (47) Net assets 26,516 15,232 Capital and reserves Called up share capital 17,076 9,777 Share premium account 9,330 5,007 Other reserves (112) (77) Profit and loss account 222 525 Shareholders' funds 26,516 15,232 Consolidated cash flow statement (audited)As at 31 December 2005 2004 •'000 •'000 Net cash inflow from operating activities 2,425 746Returns on investment and servicing of finance (2,819) (667) Taxation (543) (408) Capital expenditure and financial investment (752) 405 Acquisitions and disposals (3,568) (10,328) Net cash outflow before financing (5,257) (10,252) Financing 13,556 10,580 Increase in cash during the year 8,299 328 Reconciliation of net cash flow to movement in net debt Increase in cash during the year 8,299 328 Net increase in loans, overdrafts and invoice discounting facilities (3,990) (287) Repayment of finance leases 299 202 Changes in net cash resulting from cash flows 4,608 243 Net debt at beginning of year (7,230) (6,967) Finance leases acquired with subsidiaries - (274) New finance leases drawn down (484) - Loans acquired with subsidiaries - (232) Net debt at end of year (3,106) (7,230) Notes 1 Segmental analysis The segmental analysis of turnover and operating profits are as 2005 2004 follows: •'000 •'000 Turnover - Security 54,000 36,956 - Recruitment 11,325 5,770 Total turnover 65,325 42,726 Operating profits - Security 4,188 2,397 - Recruitment 1,266 403 - Other (2,400) (1,793) Total operating profits 3,054 1,007 2 Employees The average weekly number of employees, including executive directors, during the year, was as follows: 2005 2004 Administration staff 77 52 Security staff 1,685 1,308 Engineers 36 29 Recruitment consultants and temporary placements 203 118 2,001 1,507 3 Earnings per share 2005 2004 •'000 •'000 Earnings as reported 1,697 41 Adjustment for goodwill and IPO related costs 1,466 972 Earnings adjusted for goodwill and IPO related costs 3,163 1,013 Weighted average number of ordinary shares 51,882,232 41,750,351 Basic earnings per ordinary share After IPO costs and goodwill amortisation •.03271 •.00098 Before IPO costs and goodwill amortisation •.06096 •.02426 Diluted earnings per ordinary share After IPO costs and goodwill amortisation •.03265 •.00098 Before IPO costs and goodwill amortisation •.06086 •.02426 4 Reconciliation of movements in shareholders' funds 2005 2004 •'000 •'000 Shareholders' funds at beginning of year 15,232 4,584 Total recognised gains and losses 1,662 (36) Dividends paid (2,000) - Nominal value of shares issued 4,757 5,677 Movement in share premium net of issue costs 6,865 5,007 Shareholders' funds at end of year 26,516 15,232 5 Gross cash flows 2005 2004 •'000 •'000 Reconciliation of operating profit to net cash inflow from operating activities Operating profit 3,054 1,007 Depreciation 640 322 Profit on sale of tangible fixed assets (17) (20) Amortisation of goodwill 1,126 972 Increase in debtors (4,851) (2,870) Increase in creditors 2,691 838 (Increase)/decrease in stock (218) 497 Net cash inflow from operating activities 2,425 746 Return on investment and servicing of finance Interest received 12 2 Interest paid (790) (633) Interest element of finance lease rental payments (41) (36) Dividends paid (2,000) - (2,819) (667) Capital expenditure and financial investment Payments to acquire tangible fixed assets (815) (523) Receipts from sale of tangible fixed assets 96 928 Payments to acquire intellectual property (33) - (752) 405 Acquisitions and disposals Payments in respect of the acquisition of subsidiaries - (9,910) Cash and cash equivalents acquired with subsidiaries - 1,050 Overdrafts acquired with subsidiaries - (478) Finance leases acquired with subsidiaries - (276) Payments in respect of deferred consideration (3,568) (714) (3,568) (10,328) Financing Issue of share capital (net of costs allocated to share premium 9,993 10,218 of €1,697,000) Drawdown of loans 3,070 - Repayment of loans - (600) Repayment of finance leases (299) (158) Increase in invoice discounting facilities 792 1,120 13,556 10,580 6 Analysis of changes in net funds At 31 December At 31 December 2004 Cash flows Other 2005 •'000 •'000 •'000 •'000 Cash at bank and in hand 800 8,299 - 9,099 Bank loans, overdrafts and (7,741) (3,862) (128) (11,731) invoice discounting facilities Finance leases (289) 299 (484) (474) (7,230) 4,736 (612) (3,106) 7 Post balance sheet events Subsequent to the year end, the company acquired Kenny-Whelan Associates Limited for an upfront cost of €2.4 million with deferred payments estimated at €3.6 million based on the results of the company for 2006 and 2007. 8 Annual report and accounts The financial information contained above does not constitute the group's full statutory accounts for the year ended 31 December 2005 but has been extracted from these accounts. The full statutory accounts and auditor's report thereon will be sent to shareholders in due course and filed with the Companies Office. This information is provided by RNS The company news service from the London Stock Exchange