NMCN.L Regulatory News (NMCN)

25 Aug 2005 07:00

North Midland Construction PLC25 August 2005 NORTH MIDLAND CONSTRUCTION PLC 2005 INTERIM RESULTS North Midland Construction PLC ("the Company") the UK provider of civilengineering, building, mechanical and electrical services to public and privateorganisations, announces interim results for the six months ended 30 June 2005. Highlights from the results and the Chairman's Statement:- Six Months Ended Six Months Ended 30 June 2005 30 June 2004 £'000 £'000 Revenue 68505 46942 Profit before Tax 1760 1528 Net Profit after Tax 1232 1069 Earnings per Share 12.01p 10.17p Proposed Dividends 2.0p 2.0p • Record half year in terms of Turnover and Profitability. • All aspects of Group trading profitably. • Significant Term Contracts secured with ntl, Kingston Communications, Marconi and Severn Trent Water. • Secured workload at record levels. • Interim Dividend of 2.0p (2004: 2.0p). For further information:- Robert Moyle, Chairman - 01623 518812North Midland Construction PLC Mike Garratt, Finance Director - 01623 518816North Midland Construction PLC INTERIM REPORT for the half year to 30 June 2005 CHAIRMAN'S STATEMENT Further organic growth has been established during the first half of the yearwith turnover advancing to £68.5m, an increase of 45.9% over the comparableperiod last year and profit before taxation to £1.76m, an increase of 15.2%. All the constituent elements of the Group are trading profitably and the Grouphas secured orders in hand of circa £120m. North Midland Building has returnedto its former level of profitability and will achieve an enhanced result for thefull year. Nomenca, the mechanical and electrical subsidiary, has produced aresult in arrears of last year, due to the closure of the water companies AMP3programme. However, as outlined in the previous statement, the company was verysuccessful in the AMP4 procurement process and the commencement of thisprogramme will ensure that a comparable result to that of 2004 is achieved. The commencement of the AMP4 programme, coupled with the size and quality of theorder book, all point to a highly satisfactory year. In view of the results, but in consideration of the rate of expansion of theGroup, your Board is recommending a maintained interim dividend of 2.00p pershare, which will be paid on 23 September 2005 to the shareholders on theregister at 2 September 2005. R MoyleChairmanNorth Midland Construction PLC INCOME STATEMENT The unaudited Group results for the half year ended 30 June 2005 are shown belowtogether with the unaudited Group results for the half year ended 30 June 2004and the audited Group results for the year ended 31 December 2004. Six Months to 30 June Year Ended 2005 2004 31 Dec 2004 £'000 £'000 £'000Revenue 68505 46942 102947Group Profit before Taxation 1760 1528 3278Taxation (528) (459) (993)Group Profit after Taxation 1232 1069 2285Minority Interest (55) (72) (131)Profit attributable to 1177 997 2154ShareholdersDividend paid (392) (343) (539) 785 654 1615Dividend per share 4.00p 3.50p 5.50pEarnings per share 12.01p 10.17p 21.98p In respect of the six months ended 30 June 2005 corporation tax has beenprovided at 30% (2004 - 30%) of the profit without deferment. BALANCE SHEET The unaudited Group Balance Sheet at 30 June 2005 and 30 June 2004 are shownbelow together with the audited Group Balance Sheet at 31 December 2004. 30 June 31 Dec 2005 2004 2004 £'000 £'000 £'000Non-Current Assets Goodwill 106 - 106 Property, Plant and Equipment 5699 4727 5100 5805 4727 5206Current Assets Inventories 378 268 304 Construction Contracts 5673 3599 6976 Trade and other Receivables 26519 22988 23936 Cash and Cash Equivalents 478 971 4151 33048 27826 35367Current Liabilities Trade and other Payables 22004 17968 23318 Tax Liabilities 1878 1745 3400 23882 19713 26718Net Current Assets 9166 8113 8649Total Assets less Current Liabilities 14971 12840 13855 Creditors: Non-current liabilities (934) (584) (659) Provisions for Liabilities and Charges (259) (169) (197) 13778 12087 12999Equity Share Capital 980 980 980 Capital Redemption Reserve 20 20 20 Retained Earnings 12397 10651 11612Equity attributable to equity holders of the parent 13397 11651 12612Minority Interests 381 436 387Total Equity 13778 12087 12999 CASH FLOW STATEMENT Six Months Ended 30 June Year Ended 2005 2004 31 Dec 2004 £'000 £'000 £'000 Profit from operations 1,839 1,550 3,341Depreciation of property, plant and equipment 608 528 1,075Gain on disposal of property, plant and equipment (64) (64) (110)Increase/(decrease) in provisions 62 (20) 8 Operating cash flows before movements inworking capital 2,445 1,994 4,314 Decrease/(increase) in construction contracts 1,303 (465) (3,842)(Increase) in inventories (74) (1) (37)(Increase)/decrease in receivables (2,583) 145 (803)Increase/(decrease) in payables (2,721) (1,687) 5,169 Cash generated by operations (1,630) (14) 4,801 Taxation paid (791) (582) (1,088)Interest paid (79) (22) (63) Net cash from operating activities (2,500) (618) 3,650 Investing activitiesProceeds on disposal of property, plant and equipment 72 81 223Purchase of property, plant and equipment (1,215) (1,259) (2,277)Purchase of shares in subsidiary 0 0 (213) Net cash used in investing activities (1,143) (1,178) (2,267) Financing activitiesDividend paid to equity holders (392) (345) (539)Dividend paid to minority interests (61) (85) (86)Hire purchase advanced 878 626 1,133Hire purchase paid (455) (245) (556)Net cash (used in) financing activities (30) (49) (48) Net (decrease)/increase in cash and cash equivalents (3,673) (1,845) 1,335Cash and cash equivalents at 1 January 2005 4,151 2,816 2,816Cash and cash equivalents at 30 June 2005 478 971 4,151 NOTES 1. The consolidated financial statements of North Midland Construction PLC havebeen prepared in accordance with International Financial Reporting Standards(IFRSs) which comprise standards and interpretations approved by the IASB, andInternational Accounting Standards and Standing Interpretations Committeeinterpretations approved by the IASC that remain in effect. The onlysignificant effect is that proposed equity dividends are not recognised underIFRS's but were under "UK GAAP" 2. The abridged profit and loss account for the year ended 31 December 2004 andthe balance sheet at 31 December 2004 are extracts from the latest publishedaccounts, adjusted by the effects of the IFRS's, which have been delivered tothe Registrar of Companies: the audit report on these accounts was unqualified. The effect of the changes under IFRS's on the figures previously reported is asfollows:- INCOME STATEMENT Six Months to Year Ended 30 June 2004 31 December 2004 £'000 £'000 Profit retained as previously announced 801 1566Add Proposed dividend for the year ended 31 December 2004 - 392 Proposed interim dividend for 2004 196 -Less Proposed dividend for the year ended 31 December 2003 (343) (343) Profit retained under IFRS 654 1615 BALANCE SHEET Six Months to Year Ended 30 June 2004 31 December 2004 £'000 £'000 Retained earnings as previously announced 10455 11220Add Proposed final dividend for year ended 31 December 2004 - 392 Proposed interim dividend for 2004 196 -Retained earnings under IFRS 10651 11612 3. A copy of this circular will be sent to all shareholders on 25 August 2005and copies will be available from the registered office, Nunn Close, The CountyEstate, Huthwaite, Sutton-in-Ashfield, Nottinghamshire, NG17 2HW, for 14 daysfrom today's date. This information is provided by RNS The company news service from the London Stock Exchange