Solo CEO re-engaging with prospective Tanzania gas stake buyers in the coming weeks #SOLO Watch Now

Less Ads, More Data, More Tools Register for FREE
Solo CEO re-engaging with prospective Tanzania gas stake buyers in the coming weeks #SOLO
Solo CEO re-engaging with prospective Tanzania gas stake buyers in the coming weeks #SOLOView Video
Zephyr Energy raises £2.25M for Paradox Basin Cane Creek well #ZPHR
Zephyr Energy raises £2.25M for Paradox Basin Cane Creek well #ZPHRView Video

Latest Share Chat

Pin to quick picksNorthgate Regulatory News (NTG)

  • There is currently no data for NTG

Watchlists are a member only feature

Login to your account

RNS Alerts are a premium feature

Login to your account

myTerminal is a premium feature

Login to your account

Don't have an account? Click here to register.

Interim Results

Tue, 11th Jan 2005 07:00

Northgate PLC11 January 2005 11 January 2005 NORTHGATE PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2004 Northgate plc ("Northgate", the "Company" or the "Group"), the UK's leadingspecialist in light commercial vehicle hire, announces its interim results forthe half year ended 31 October 2004. Highlights: •Turnover, including the contribution from the now wholly owned Spanish subsidiary Fualsa, increased by 19.3% to £222.6m (2003 - £186.5m excluding Fualsa turnover). •Pre-tax profit before goodwill amortisation up by 23.2% to £27.8m (2003 - £22.6m). •Earnings per share up by 15.9% to 29.1p (2003 - 25.1p). •Dividend increased by 14.3% to 8.0p (2003 - 7.0p). •Fleet size of 52,000 vehicles in the UK and 17,000 vehicles in Spain. •Utilisation in the UK and Spain improved to over 90% and 89% respectively. •Martin Ballinger appointed as new Chairman following retirement of Michael Waring today. Michael Waring, Chairman, commented: "It is gratifying to be able to report strong results from both our UK andSpanish businesses. The UK has seen good fleet growth and utilisation over our targeted level of90%. In the last six months Fualsa has continued to exceed our expectations withfleet growth of over 13%, utilisation over 89% and two new locations opened. Twofurther locations are expected to be opened within the next month. We continue to believe that the UK market has good potential for growth and thatthrough Fualsa we have an excellent opportunity for significant expansion inSpain. Since the end of the period, trading has remained strong and the Board isconfident of the outcome for the full financial year. We expect to continue tomake good progress towards the achievement of the objectives set out in ourthree year Strategy for Growth." Full statement and results attached. For further information, please contact: Northgate plc 01325 467558Steve Smith, Chief ExecutiveGerard Murray, Finance Director Hogarth Partnership Limited 020 7357 9477Andrew JaquesBarnaby Fry Notes to Editors: Northgate plc rents light commercial vehicles and sells a range of fleetproducts to businesses via a network of hire companies. Their NORFLEX productgives businesses access to a flexible method to acquire as many commercialvehicles as they require. Further information regarding Northgate plc can be found on the Company'swebsite: http://www.northgateplc.com CHAIRMAN'S STATEMENT Introduction We are now 18 months through our Strategy for Growth for the three years to 30April 2006, details of which were set out in our 2003 Report and Accounts. Thesix months to 31 October 2004 have continued the excellent start we reported forthe year to 30 April 2004, with earnings per share increasing by 15.9% to 29.1p(2003 - 25.1p). This increase is driven by a number of factors including theincrease in the contribution from Fualsa, our Spanish operation which becamewholly owned on 3 May 2004, the high level of fleet growth in both the UK andSpain and the improved profit from UK used vehicle sales. As a result of thisfleet growth we have further consolidated our position as market leader in theUK and made progress towards achieving the same status in Spain. Results Turnover, including the contribution from the wholly owned Spanish subsidiaryFualsa, increased by 19.3% to £222.6m (2003 - £186.5m, excluding Fualsaturnover). Profit before goodwill amortisation of £0.51m (2003 - £0.16m) and taxationincreased by 23.2% to £27.8m (2003 - £22.6m). Earnings per share increased by 15.9% to 29.1p (2003 - 25.1p) reflecting theincrease in profit before taxation and the full period effect of 3.04m newshares issued as a result of a 5% Cash Placing on 14 January 2004. The composition of the Group's UK turnover and operating profit as between hireactivities and used vehicle sales, is set out below:- United Kingdom 31 October 2004 2003 £000 £000TurnoverHire 141,254 125,941Used vehicle sales 46,619 60,591UK Turnover 187,873 186,532Operating profitHire 29,510 26,093Used vehicle sales 2,152 1,975Goodwill amortisation (179) (38)UK operating profit 31,483 28,030 Operating Margins (excluding goodwill)UK overall 16.9% 15.0%Hire 20.9% 20.7%Used vehicle sales 4.6% 3.3% UK hire turnover increased by 12.2% reflecting the increase in the UK fleet to52,000 (2003 - 45,700). Margins have been maintained as the network has beenexpanded through branch openings and selective acquisitions. The focus on marginremains a crucial element for the remaining period of our three year Strategyfor Growth. Fualsa 31 October Company Joint venture (100%) (100%) (40%) 2004 2003 2003 £000 £000 £000TurnoverHire 25,828 20,615 8,246Used vehicle sales 8,891 9,005 3,602Fualsa Turnover 34,719 29,620 11,848Operating profitHire 5,727 3,800 1,520Used vehicle sales 417 1,771 708Goodwill amortisation (335) - (118)Fualsa operating profit 5,809 5,571 2,110 Operating Margins (excluding goodwill)Fualsa overall 17.7% 18.8% 18.8%Hire 22.2% 18.4% 18.4%Used vehicle sales 4.7% 19.7% 19.7% This is the first period that Fualsa has been reported on as a wholly ownedsubsidiary. The reported operating margin of Fualsa excluding goodwillamortisation has reduced to 17.7% (2003 - 18.8%) reflecting the non-recurringprofits on the disposal of vehicles realised in the prior period of £1.43m, ofwhich the Group's share of the joint venture was £0.57m. These vehicles acquiredbefore 1 January 2001 had excessive depreciation rates applied to them. Thetable above sets out the turnover and operating profit for Fualsa as a whole forboth the current and prior periods and for our interest in it as a joint venturefor the prior period only. The joint venture amounts are shown as 40% of thoseof the company along with the charge for goodwill. Following the acquisition of the remaining 60% of Fualsa on 3 May 2004, theGroup's borrowings now reflect UK borrowings, the consideration for thisacquisition (paid and deferred) and the first time consolidation of theunderlying debt of Fualsa. The net debt of the Group as at 31 October 2004 totals £410m (2003 - £271m) withthe majority of the increase compared to the prior year arising from the firsttime consolidation of Fualsa. The strong fleet growth in both Spain and the UKhas also contributed to this increase. Consequently, the Group's gearing hasincreased to 218.0% (2003 - 171.8%). The prior year comparative for gearing hasbeen amended from 164.9% to reflect our decision that the gearing ratio goingforward will be calculated as net debt (including cash balances) as a percentageof shareholders' funds but after the deduction of goodwill. Following theacquisition of Fualsa, this new basis for calculating shareholders' fundsmaterially changes the gearing ratio. Whilst gearing has increased, the Group'sinterest cover has remained stable at 3.7 times (2003 - 3.8 times). The source of funding for the Group has historically been a mixture of hirepurchase contracts and bank loans. With the Fualsa acquisition introducingfurther sources of funding, we have taken the opportunity to rationalise theloan arrangements of the Group. On 10 January 2005 the Company entered into aseries of unsecured, revolving, bilateral facilities with major UK and Europeanbanks to provide an aggregate facility to the Group of £565m over one, three andfive year terms. These new facilities will replace those facilities that existedat 31 October 2004. Dividend Following the change last year to a dividend profile of broadly a 40% interimand a 60% final dividend, the Board has declared an interim dividend of 8.0p(2003 - 7.0p) per share, payable on 11 February 2005 to shareholders on theregister as at the close of business on 21 January 2005. Operational Review United Kingdom and Republic of Ireland In the six months to 31 October 2004, we are pleased to report very strongdemand for our product Norflex. This demand has resulted in our fleet increasingfrom 47,400 at the end of April to 52,000 at 31 October 2004 with UK hireturnover increasing by 12.2%. The acquisition of Foley Self Drive Limited on 1August 2004 accounted for 850 vehicles of this increase. Our hire locations continue to expand to fleet sizes greater than anticipated inour strategic plan and, as a consequence, we are unlikely to need to open theplanned 100 locations by April 2006. Since 1 May 2004, we have opened three newsites and, including those gained through the acquisition of Foley, now operatefrom 76 locations. Notwithstanding the growth in the fleet, the strong demand for our product hasalso resulted in utilisation being just over our targeted level of 90%throughout the period. Hire rates have softened slightly as a result of continued competitor activityin the rental sector and our focus on fleet growth. As we indicated in theOperational Review of our 2004 Report and Accounts, rising interest rates shouldgive us the opportunity to increase our hire rates or alternatively win businessfrom contract hire competitors. Our decision was to focus on the latter asevidenced by fleet growth of 8%, excluding the acquisition of Foley, in the sixmonths to 31 October 2004. As contract hire companies tend to operate at ratesat the bottom end of our range the impact of this new business has been toslightly reduce our average hire rate. The combination of the factors above has resulted in an operating margin(excluding goodwill amortisation) consistent with our expectations for the hirecompanies of 20.9% (2003 - 20.7%). Used vehicle sales turnover declined to £46.6m (2003 - £60.6m), as a result of areduction in the number of vehicles sold to 7,800 vehicles (2003 - 10,900). Thenumber of vehicles sold in each period is driven by both planned disposals andour management of utilisation. The operating margin on used vehicle salesimproved to 4.6 % (2003 - 3.3%) giving rise to an improved contribution pervehicle sold of £276 (2003 - £181). In November 2003 the Group opened aremarketing centre in Carnaby with an objective to increase the proportion ofretail and semi retail vehicle sales which attract slightly higher margins. Thisproportion increased to 11% (2003 - 4%) of total vehicles sold in the six monthsto 31 October 2004. The total volume of vehicle sales is expected to be higherin the second half of the financial year. Given the fact that the number of semiretail and retail vehicles are to a great extent limited by the supply ofsuitable vehicles, the proportion of total sales represented by these vehicleswill be lower for the full financial year. We therefore expect the profit pervehicle to fall in the second half of the year and be more in line with priorperiods. Continental Europe Following the exercise of our options on 3 May 2004 to acquire the remaining 60%of the equity in Fualsa, this is the first period where we report on Fualsa as asubsidiary undertaking. Since 1 May 2004, the vehicle fleet has grown by over 13% to reach 17,000vehicles at the end of October 2004. When compared to the fleet at 31 October2003, the annual growth rate of 26% is very satisfactory indeed. Since the startof the financial year, new locations have been opened in La Coruna and Murciawith two more locations expected to open in Cadiz and Badajoz later this month.These new openings will give us a network of 14 locations to serve our customersacross Spain. Utilisation has continued to improve and averaged over 89% duringthe period, achieving our 90% objective for the first time in early September2004. Fualsa hire turnover has increased by 25.3% in line with fleet growth. Hireoperating margin (excluding goodwill amortisation) has improved to 22.2% (2003 -18.4%) reflecting the fact that the vast majority of vehicles on the fleet inthe current period were acquired after 1 January 2001 and, as a result, have hadlower rates of depreciation applied to them. This has had the effect ofimproving operating margins for hire and at the same time generating moresensible levels of profit per vehicle on disposal of £219 (2003 - £803), broadlyin line with vehicle disposal profits achieved in the UK. Turnover from Fualsavehicle sales declined marginally to £8.9m (2003 - £9.0m) on slightly reducedsales of 1,900 vehicles (2003 - 2,200). Personal Note Following the publication of these results I shall be stepping down as Chairmanand as a Director of your Company. Martin Ballinger, previously Chief Executiveof Go-Ahead Group PLC, will be taking over as non-executive Chairman. Northgate's ethos and culture of service to its customers, the main drivers forits success to date, are deeply entrenched throughout the Company and itsemployees. It has a strong and committed management team under the leadership ofSteve Smith, the CEO, and a dedicated staff who strive to provide first classservice to our customers. On behalf of shareholders, I wish to thank them allfor their efforts and their support over the years. I also wish to thank themembers of the Board for their support and in particular Ron Williams, thedeputy Chairman, whose wisdom and experience have been invaluable during theperiod in which Northgate's market capitalisation has grown from £170 million toover £500 million. There are many unsung heroes at Northgate who diligently perform the less thanglamorous tasks behind the scenes without public recognition. I would thereforelike to take this, my final opportunity, to thank each and every one of them fortheir contribution to Northgate's success. Finally I wish Martin Ballinger, theBoard, the management team and all our staff every success for the future and Ithank shareholders for their support over the years. Current Trading and Outlook We are encouraged by the continued strong growth in our core UK hire business,confirming our view that the UK market is by no means mature and that plenty ofopportunity still exists to grow our business. Furthermore, the investment beingmade to position Fualsa in the Spanish commercial vehicle rental market for thefuture is proceeding according to plan. Our experience to date has confirmed ouropinion that future prospects for the development of our business in Spain aresignificant. Since the end of the period, trading has remained strong and the Board isconfident of the outcome for the full financial year. We expect to continue tomake good progress towards the achievement of our objectives set out in ourthree year Strategy for Growth. MICHAEL WARINGChairman Consolidated Profit and Loss Accountfor the six months ended 31 October 2004 Six months Six months Year to to to 31.10.04 31.10.03 30.4.04 (Unaudited) (Unaudited) (Audited) Notes £000 £000 £000Turnover- continuing operations 187,873 186,532 355,624- acquisitions 34,719 - -- joint venture - 11,848 23,461 -------- -------- -------- Turnover :Group and share of jointventure 222,592 198,380 379,085 Less : share of jointventure's turnover - (11,848) (23,461) -------- -------- -------- Group turnover 1 222,592 186,532 355,624 -------- -------- -------- Cost of sales- continuing operations (134,914) (137,819) (261,255)- acquisitions (23,073) - - -------- -------- --------Total cost of sales (157,987) (137,819) (261,255) -------- -------- --------Gross profit - continuingoperations 52,959 48,713 94,369- acquisitions 11,646 - - -------- -------- --------Total gross profit 64,605 48,713 94,369 Administrative expenses- continuing operations (21,297) (20,645) (38,552)- acquisitions (5,502) - -- goodwill amortisation (514) (38) (71) -------- -------- --------Total administrativeexpenses (27,313) (20,683) (38,623) Group operating profit -------- -------- --------- continuing operations 31,483 28,030 55,746- acquisitions 5,809 - - -------- -------- --------Total operatingprofit 1 37,292 28,030 55,746 -------- -------- -------- Share of joint venture'soperating profit - 2,228 4,578Amortisation of goodwill onjoint venture investment - (118) (236) -------- -------- --------Profit on ordinary activities beforeinterest and taxation 37,292 30,140 60,088 Interestpayable, net - group (10,032) (7,105) (14,069) - joint venture - (641) (1,286) -------- -------- -------- Profit on ordinaryactivities beforetaxation 27,260 22,394 44,733 Tax on profiton ordinaryactivities - group 2 (8,500) (6,668) (12,914) - joint venture - (446) (389) -------- -------- -------- Profit for the financialperiod 18,760 15,280 31,430Dividends - non equity Preference shares (13) (13) (25) - equity Ordinary shares (5,136) (4,233) (11,039) -------- -------- -------- Profit transferred to reserves 13,611 11,034 20,366 -------- -------- -------- Earnings per Ordinary share - basic 3 29.1p 25.1p 50.9p Diluted earnings perOrdinary share 3 28.8p 25.0p 50.8p Dividends perOrdinary share 8.0p 7.0p 17.6p Consolidated Balance Sheet31 October 2004 31.10.04 31.10.03 30.4.04 As As restated restated (Unaudited) (Unaudited) (Audited) Notes £000 £000 £000Fixed assetsIntangible assets 15,679 1,344 1,981Tangible assetsVehicles for hire 516,697 374,325 379,346Other fixed assets 33,633 23,271 23,342 -------- -------- ------- 566,009 398,940 404,669 -------- -------- ------- Investment in joint venture: -------- -------- -------Share of gross assets - 45,823 50,389Share of gross liabilities - (37,250) (40,215)Goodwill on investment lessamortisation - 4,411 4,293 -------- -------- ------- - 12,984 14,467 -------- -------- ------- Total fixed assets 566,009 411,924 419,136 -------- -------- ------- Current assetsStocks 18,773 9,666 15,285Debtors 87,257 62,141 56,382Cash at bank and in hand 22,570 22,787 46,160 -------- -------- ------- 128,600 94,594 117,827 -------- -------- ------- Creditors: amountsfalling due within one year 200,926 181,940 133,756 -------- -------- ------- Net current liabilities (72,326) (87,346) (15,929) -------- -------- ------- Total assets less currentliabilities 493,683 324,578 403,207Creditors: amounts falling dueafter more than one year 6 280,749 154,005 208,079Provisions forliabilities and charges 9,302 7,005 6,821 -------- -------- ------- 203,632 163,568 188,307 -------- -------- ------- Capital and reservesCalled upshare capital 3,706 3,550 3,702Share premium account 62,201 45,854 61,829Revaluation reserve 602 23 23Merger reserve 4,721 4,721 4,721Own shares held 8 (1,515) (775) (1,330)Profit and loss account 133,917 110,195 119,362 -------- -------- ------- Shareholders' funds 5 203,632 163,568 188,307 -------- -------- ------- Attributable to equityshareholders 203,132 163,068 187,807Attributable to non-equityshareholders 500 500 500 -------- -------- ------- 203,632 163,568 188,307 -------- -------- ------- Consolidated Cash Flow Statementfor the six months ended 31 October 2004 Six months Six months Year to to to 31.10.04 31.10.03 30.4.04 As As restated restated (Unaudited) (Unaudited) (Audited) Notes £000 £000 £000 Cash inflow from operatingactivities 4 92,019 74,553 157,203 Returns on investmentsand servicing of finance (9,357) (7,157) (14,679) Taxation (7,775) (4,490) (11,279) Capital expenditure andfinancial investmentPurchase of vehicles for hire (134,107) (113,725) (215,129)Sale of vehicles for hire 49,183 58,280 106,771Other items, net (2,140) (3,131) (4,333) -------- -------- --------Net cash outflow from capitalexpenditure and financialinvestment (87,064) (58,576) (112,691) -------- -------- -------- Acquisitions 6 (19,360) - (1,092) Equity dividends paid (6,764) (6,754) (11,005) -------- -------- --------Cash (outflow) inflow before useof liquid resources andfinancing (38,301) (2,424) 6,457 Management of liquid resourcesCash withdrawn from (placedon) deposit - 18 (205) FinancingIssue of Ordinaryshares (net of expenses) 376 224 16,351Purchase of investments (net)- purchase of own shares 8 - (526) (1,081)Increase (decrease) inborrowings 47,136 (804) 93,833Capital element of vehicle loansand hire purchase payments (124,030) (116,910) (263,310)Cash inflow from vehicle loansand hire purchase agreements 78,680 102,260 169,577 -------- -------- -------- Net cash inflow (outflow) fromfinancing 2,162 (15,756) 15,370 -------- -------- -------- (Decrease) increase incash for the period (36,139) (18,162) 21,622 -------- -------- -------- Reconciliation of Net Cash Flow to Movement in Net Debtfor the six months ended 31October 2004 Six months Six months Year to to to 31.10.04 31.10.03 30.4.04 (Unaudited) (Unaudited) (Audited) £000 £000 £000 (Decrease) increase incash for the period (36,139) (18,162) 21,622Financing(Increase) decrease inborrowings (47,136) 804 (93,833)Capital element of vehicle loansand hire purchase payments 124,030 116,910 263,310Cash inflow from vehicle loansand hire purchase agreements (78,680) (102,260) (169,577)Cash(withdrawnfrom) placedon deposit - (18) 205 -------- -------- ------- Change in net debt resultingfrom cash flows (37,925) (2,726) 21,727Vehicle loans and hire purchaseagreements acquired with subsidiary undertakings (66,808) - (3,271)Other net debt acquired withsubsidiary undertakings (28,144) - -New vehicle loans (13,528) - -Deferred considerationin respect of Fualsa (Note 6) (10,354) - -Foreign exchangedifferences (3,108) 52 96 -------- -------- ------- Movement in net debt forthe period (159,867) (2,674) 18,552 Opening net debt (249,826) (268,378) (268,378) -------- -------- ------- Closing net debt (409,693) (271,052) (249,826) -------- -------- ------- Statement of Total Recognised Gains and Lossesfor the six months ended 31October 2004 Six months Six months Year to to to 31.10.04 31.10.03 30.4.04 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Profit for thefinancial period 18,760 15,280 31,430Revaluation of land 579 - -Foreign exchangedifferences 944 (125) (290) -------- -------- -------Total recognised gains andlosses for the financial period 20,283 15,155 31,140 -------- -------- ------- Unaudited Notes 1. Segmental analysis Six months Six months Year to to to 31.10.04 31.10.03 30.4.04 (Unaudited) (Unaudited) (Audited) £000 £000 £000 United Kingdomand Republicof Ireland 187,873 186,532 355,624Spain 34,719 - - -------- -------- --------Total turnover 222,592 186,532 355,624 -------- -------- -------- United Kingdomand Republicof Ireland 31,483 28,030 55,746Spain 5,809 - - -------- -------- --------Totaloperatingprofit 37,292 28,030 55,746 -------- -------- -------- Prior to the acquisition of Furgonetas de Alquiler SA ("Fualsa") on 3 May 2004(see Note 6), all turnover from the joint venture arose in Spain. 2. Tax The charge for taxation for the six months to 31 October 2004 is based on theestimated effective rate for the year. 3. Earnings per share The calculation of basic earnings per Ordinary share in respect of the sixmonths to 31 October 2004 is based on the profit attributable to equityshareholders of £18,747,000 (31 October 2003 - £15,267,000) (30 April 2004 -£31,405,000) and the weighted average of 64,446,161 (31 October 2003 -60,809,093) (30 April 2004 - 61,647,279) Ordinary shares in issue (excludingthose shares held by an employee trust in connection with the Group's variousshare schemes). Diluted earnings per Ordinary share have been calculated on the basis ofearnings described above and assume that 382,037 shares (31 October 2003 - nil)(30 April 2004 - nil), remaining exercisable under the Group's various shareschemes, had been fully exercised at the commencement of the relevant period,such that the weighted average number of shares is 64,982,443 (31 October 2003- 60,947,057) (30 April 2004 - 61,817,783), including 154,245 shares (31October 2003 - 137,964) (30 April 2004 - 170,504) held by an employee trust inconnection with the Group's various share schemes. 4. Reconciliation of operating profit to net cash inflow fromoperating activities Six months Six months Year to to to 31.10.04 31.10.03 30.4.04 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Group operatingprofit 37,292 28,030 55,746Depreciation 63,243 48,706 98,547Goodwillamortisation 514 38 71Loss (profit) on sale ofequipment and other fixed assets 19 (1) (63)(Increase) decrease in stocks (668) 659 (4,922)(Increase) decrease in debtors (828) (4,773) 1,450(Decrease) increase increditors (7,553) 1,894 6,374 -------- -------- -------- Net cash inflow fromoperating activities 92,019 74,553 157,203 -------- -------- -------- 5. Reconciliation of movementsin shareholders' funds Six months Six months Year to to to 31.10.04 31.10.03 30.4.04 As As restated restated (Unaudited) (Unaudited) (Audited) £000 £000 £000 Profit for the financialperiod 18,760 15,280 31,430Dividends (5,149) (4,246) (11,064) -------- -------- -------- 13,611 11,034 20,366Issue of Ordinary sharecapital (net of expenses) 376 224 16,351Revaluation of land 579 - -Increase in own shares held (185) - -Foreign exchangedifferences 944 (125) (290) -------- -------- -------- Net addition toshareholders' funds 15,325 11,133 36,427 -------- -------- -------- Opening shareholders'funds (as originally stated) 188,307 153,210 153,210Prior period adjustment(Note 8) - (775) (1,330) -------- -------- --------Opening shareholders'funds (as restated) 188,307 152,435 151,880 -------- -------- -------- -------- -------- --------Closingshareholders'funds 203,632 163,568 188,307 -------- -------- -------- 6. Acquisitions Furgonetas de Alquiler SA ("Fualsa") On 16 July 2002, the Group acquired a 40% share in Fualsa, a company registeredin Spain, for a cash consideration of £10,170,000, including goodwill of£4,726,000. In the year to 30 April 2004, this investment was accounted for as ajoint venture. On 3 May 2004, the Group exercised its option to acquire a further 40% of theshare capital of Fualsa for a consideration of £15,150,000 under the sharepurchase agreement. On the same date, the Group also exercised its option toacquire the final 20% of the share capital of Fualsa. The consideration for thisexercise is deferred until May 2006 and will be dependent upon the profit aftertax of Fualsa for the calendar years 2004 and 2005. With effect from May 2004,Fualsa has been accounted for as a subsidiary undertaking and in accordance withacquisition accounting principles. The detail relating to the 60% share of Fualsa, that was acquired on 3 May2004, is as follows: £000Fair value of net assets acquired 16,128Goodwill 8,362 -------- Acquisition cost (including expenses) 24,490 --------Fair value of consideration:Cash 15,150Deferred consideration 9,340 -------- 24,490 -------- Cash payment made 15,150Cash equivalents with subsidiary undertakingacquired (90) -------- Cash outflow in period on acquisition of Fualsa 15,060 -------- The total goodwill of £13,088,000, arising on this acquisition, comprises£4,726,000 relating to the 40% share and £8,362,000 relating to the 60% share ofFualsa. This is being amortised over a 20 year period from July 2002. The actual deferred consideration of £10,354,000 is included within creditorsfalling due after more than one year. Foley Self Drive Limited ("Foley")On 1 August 2004, the Group acquired the entire issued share capital of Foleyfor a cash consideration of £3,895,000, including goodwill of £1,557,000. Thegoodwill on the acquisition of Foley is capitalised and written off over aperiod of five years, being its estimated useful economic life. The transactionhas been accounted for in accordance with acquisition accounting principles. £000Fair value of net assets acquired 2,338Goodwill 1,557 -------- Acquisition cost (including expenses) 3,895 -------- Fair value of consideration:Cash 3,895Bank overdraft with subsidiary undertaking acquired 475 -------- Cash outflow in period on acquisition of Foley 4,370 -------- The results of Foley for the period 1 August 2004 to 31 October 2004 have notbeen included within acquisitions in the consolidated profit and loss accountas, in the opinion of the Directors, they are immaterial to the results of theGroup as a whole. F Herriman & Sons Limited ("Daman")On 30 April 2004, the Group acquired the entire issued share capital of Damanfor a cash consideration of £960,000, including goodwill of £670,000. During theperiod, the Group received £70,000 from the vendor, under the retention terms ofthe sale and purchase agreement. In all of the above acquisitions, the fair values represent the Directors'current estimates of the net assets acquired. In accordance with FRS7, thevalues attributed may be revised as further information becomes available. 7. Basis of preparation The results have been prepared on the basis of the accounting policies set out in the last annual report and accounts, with the exception of the change in accounting policy referred to in Note 8. The results for the year to 30 April 2004 are extracted from the audited accounts for that year which have been delivered to the Registrar of Companies, and on which the auditors issued an unqualified report and which did not include a statement under Section 237 (2) or (3) of the Companies Act 1985. 8. Prior period adjustment On 1 May 2004, the Group changed its accounting policy in respect of investments in its own shares, in accordance with Urgent Issues Task Force Abstract 38. A prior period adjustment has been made to reflect this change in accounting policy. The impact of this change is to reduce both fixed asset investments and shareholders' funds by £775,000 at 31 October 2003 and £1,330,000 at 30 April 2004. Within the consolidated cash flow statement, the change in accounting policy has caused a reduction in the cash outflow on capital expenditure and financial investment and an increase in the cash outflow on financing of the same amounts. These amounts are £526,000 for the six months to 31 October 2003 and £1,081,000 for the year to 30 April 2004. There is no impact on the consolidated profit and loss account in any period. The change in accounting policy gives rise to an own shares held reserve. This represents shares held by an employee trust in order to meet commitments under the Group's various share schemes. The impact of the change in accounting policy in the current period is to reduce fixed asset investments by £185,000 and to increase the own shares held reserve by the same amount. There is no impact on the consolidated profit and loss account or consolidated cash flow statement in the current period. This information is provided by RNS The company news service from the London Stock Exchange
Date   Source Headline
5th Apr 200711:41 amRNSHolding(s) in Company
4th Apr 200712:16 pmRNSTotal Voting Rights
30th Mar 200710:36 amRNSHolding(s) in Company
27th Mar 20074:40 pmRNSHolding(s) in Company
19th Mar 20074:04 pmRNSHolding(s) in Company

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.