OneView Group Regulatory News (ONEV)

7 Apr 2005 07:00

Armour Group PLC07 April 2005 Armour Group Plc Interim Results for the six months ended 28 February 2005 CHAIRMAN'S STATEMENT RESULTS AND DIVIDEND I am pleased to report excellent progress and a good set of results for the sixmonths to 28 February 2005. The financial highlights are as follows: • Sales increased by 27% to £17.6 million (29 February 2004: £13.9 million). • Operating profit before amortisation of goodwill, interest and tax rose by 21% to £2.0 million (29 February 2004: £1.7 million). • Basic underlying earnings per share rose by 4% to 2.4p (29 February 2004: 2.3p). • Equity shareholders' funds of £17.3 million (29 February 2004: £15.7 million). • Net debt position was £6.2 million (29 February 2004: £3.2 million). The Board is not recommending an interim dividend. OPERATIONS Armour Automotive Armour Automotive has continued to grow, win new business and invest further inits management team and new product development. It has also extended itsoperating facilities in Bordon. Our proprietary brands continue to attract new business and remain the driver tothe Division's sales with like for like sales up 3% in the six months to 28February 2005. Autoleads, the specialist range of connectivity solutions forin-car entertainment and communications, and CTI, the range of GSM and GPSaerials and antennae for the automotive and marine aftermarkets, have securedincreasing levels of business with Vodafone for telemute leads and GSM antennae.Mutant, the range of amplifiers and speakers for the in-car market, hasperformed well and has recently been expanded with the launch of the new MutantX range. RM Audio, the specialist range of in-vehicle customer branded speakersand head units, has won new OEM business with Lunar Caravans and with Claas forits range of agricultural vehicles in the United Kingdom and in Germany. Veba, the specialist range of in-car audio-visual entertainment systems, hassecured new business with Rolls Royce. We are also in the final stages ofdeveloping a prototype multi-media solution for Bentley Motors. In December2004, we started deliveries to Mitsubishi for its Shogun model. In January 2005,we delivered our first systems to BMW for its X3 model. We have had strongrepeat orders from Hyundai for its Matrix and Trajet models and have seen asteady growth in business with the vehicle dealership chains of Pendragon andArnold Clark. We continue to develop new solutions for a number of vehiclemanufacturers, which we are confident will be launched in due course. To meet the growing needs of the business, the management team has beenstrengthened with the appointment of a Business Development Director, who isresponsible for new product development, purchasing and channels to market.Elsewhere in the Division, we have added to our logistics, purchasing andresearch and development teams. The continuing growth of the business has required an extension to our existingfacilities in Bordon. Two new mezzanine levels have been constructed andadditional warehousing space has been leased, which increases our operatingcapacity by 35%. Armour Home Electronics Armour Home Electronics has had a busy six months with like for like salesincreasing by 2% in the six months to 28 February 2005. There have been twoacquisitions, extension of our warehousing and distribution facilities andexpansion of our sales, business development and new product research teams. In September 2004, the Group acquired The Hi-End Limited ("Hi-End"), which hasbeen integrated into our service business. This business provides specialistcustom design and installation services to home builders, architects andhomeowners in the home automation market. In November 2004, the Group acquiredMyryad Systems Limited ("Myryad"), a designer and manufacturer of hi-fiseparates, which is now being integrated into our product business. Thisbusiness designs, manufactures and sells products into the hi-fi, home theatreand home entertainment market. Our proprietary brands have benefited from a number of new product launches andawards in the past six months, which form an important part of maintaining andimproving our brand awareness in the market place. QED launched a complete rangeof digital cables to meet the growing demand for digital connectivity to plasmascreens and DVD players; Sound Style, Sound Organisation and Arca have launchednew furniture ranges; Goldring launched two new turntables and SystemlineModular launched multi-channel audio and video modules. Systemline Modular, our multi-room entertainment system, has continued togenerate significant interest and demand from home builders and custominstallers alike. In February 2005, the Group announced a major nationalagreement with David Wilson Homes. We have invested in marketing and a dedicatedsales and support team, which is wholly focused on building the keyrelationships between ourselves, the home builder and our specialist custominstall partners. There are now over 15,000 new homes being built or due to bebuilt within the next twelve months where Systemline Modular is being includedas part of the build programme either as a standard fit or offered as an option.To date, home builders such as David Wilson Homes, Persimmon Homes, CrestNicholson, Westbury Homes, Taylor Woodrow, George Wimpey and Laing Homes areoffering Systemline Modular as part of the build programme. The new product research and development team has been strengthened byspecialist audio/video engineering expertise and an expansion of our industrialdesign capability to meet the increased work load, which now includes theproduct development responsibilities of the newly acquired Myryad range. In thecoming months, the programme for new product launches is demanding, with all keyproprietary brands scheduled to launch new products. Our service business has made good progress and, following the Hi-Endacquisition, is now in a position to offer a complete range of services to boththe new build as well as the retro-fit market. OUTLOOK The Group's focus over the past six months has been on investment for growth.There have been two acquisitions and a range of internal investments targeted atdeveloping key areas of our operations. The Board believes that this investmentwill play an important part in delivering future growth and is confident withregard to the future prospects of the Group. Bob MortonChairman7 April 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS TO 28 FEBRUARY 2005 ---------- ---------- ---------- Notes Six months to Six months to Twelve months to 28 February 29 February 31 August 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £000 £000 £000 ---------- ---------- ----------Turnover Continuingoperations 16,847 13,885 31,113Acquisitions 3 763 - - ---------- ---------- ---------- 2 17,610 13,885 31,113 ---------- ---------- ----------Operating profit Continuingoperations 1,939 1,671 3,677Acquisitions 3 81 - - ---------- ---------- ----------Operating profitbefore amortisationof goodwill 2,020 1,671 3,677Amortisation ofgoodwill (399) (264) (599) ---------- ---------- ----------Profit on ordinaryactivities beforeinterest 1,621 1,407 3,078 Net interest (225) (72) (200) ---------- ---------- ----------Profit on ordinaryactivities beforetaxation 1,396 1,335 2,878 Taxation on profiton ordinaryactivities 4 (534) (499) (1,131) ---------- ---------- ----------Profit on ordinaryactivities aftertaxation 862 836 1,747 Dividend - - (237) ---------- ---------- ----------Profit for theperiod retained 5 862 836 1,510 ---------- ---------- ---------- Earnings perordinary share 7 Basic 1.6p 1.8p 3.5pBasic - underlying 2.4p 2.3p 4.7pDiluted 1.5p 1.6p 3.3pDiluted -underlying 2.3p 2.1p 4.4p ---------- ---------- ---------- CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE SIX MONTHS TO 28 FEBRUARY 2005 ---------- ---------- ---------- Six months to Six months to Twelve months to 28 February 29 February 31 August 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £000 £000 £000 ---------- ---------- ---------- Profit for the period 862 836 1,747 Currency translationdifferences on foreign currency net investments (1) - (7) ---------- ---------- ---------- Total recognised gains and lossesrelating to the period 861 836 1,740 ---------- ---------- ---------- CONSOLIDATED BALANCE SHEET AT 28 FEBRUARY 2005 ---------- ---------- ---------- Notes 28 February Re-presented* 31 August 2005 29 February 2004 (Unaudited) 2004 (Audited) £000 (Unaudited) £000 £000 ---------- ---------- ----------Fixed assets Intangible assets 14,742 13,729 13,068Tangible assets 1,869 1,570 1,765 ---------- ---------- ---------- 16,611 15,299 14,833 ---------- ---------- ---------- Current assets Stocks 6,309 4,350 5,904Debtors 6,273 6,550 7,207Cash at bank and in hand 85 694 1,081 ---------- ---------- ---------- 12,667 11,594 14,192 ---------- ---------- ----------Creditors: Amounts falling duewithin one year Borrowings (3,538) (545) (599) Other (5,423) (7,361) (8,961) ---------- ---------- ---------- (8,961) (7,906) (9,560) ---------- ---------- ----------Net current assets 3,706 3,688 4,632 ---------- ---------- ----------Total assets less currentliabilities 20,317 18,987 19,465 ---------- ---------- ----------Creditors: Amounts falling dueafter more than one year Borrowings (2,777) (3,328) (3,048) Other (192) - - ---------- ---------- ---------- (2,969) (3,328) (3,048) ---------- ---------- ----------Net assets 17,348 15,659 16,417 ---------- ---------- ---------- Capital and reserves Called up share capital 5,374 5,261 5,341Share premium account 3,760 3,712 3,723Other reserves 444 444 444Profit and Loss Account 7,970 6,442 7,109Share trust reserve (200) (200) (200) ---------- ---------- ----------Equity shareholders' funds 5 17,348 15,659 16,417 ---------- ---------- ---------- * See Note 1 CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS TO 28 FEBRUARY 2005 ----------- ---------- ---------- Notes Six months to Re-presented* Twelve months to 28 February Six months to 31 August 2005 29 February 2004 (Unaudited) 2004 (Audited) £000 (Unaudited) £000 £000 ----------- ---------- ---------- Net cash inflowfrom operatingactivities 6(a) 1,465 872 2,462 Returns on investmentand servicing of financeInterest received 8 30 54Interest paid (161) (62) (156)Bank loanarrangement costs (13) (127) (135)Interest element offinance lease rentals (4) (5) (9) ----------- ---------- ---------- Net cash outflow fromreturns on investmentand servicing of finance (170) (164) (246) Corporate taxation paid (922) (476) (843) Capital expenditure andfinancial investment Payments to acquiretangible fixedassets (477) (251) (854)Sale of tangiblefixed assets 65 8 76 ----------- ---------- ---------- Net cash outflow from capital expenditure and financial investment (412) (243) (778) Acquisitions and disposalsPurchase of subsidiaryundertakings (3,590) (13,182) (13,177)Net cash acquired with subsidiary undertakings 140 1,812 1,812 ----------- ---------- ---------- Net cash outflow fromacquisitionsand disposals (3,450) (11,370) (11,365)Dividend paid (237) (135) (138) ----------- ---------- ---------- Net cash outflowbefore financing (3,726) (11,516) (10,908) FinancingIssue of ordinaryshare capital 70 4,823 4,914New bank loans - 4,000 4,000Repayment of bank loans (285) - (286)Capital element of finance lease rental repayments (24) (20) (40) ----------- ---------- ----------Net cash(outflow)/inflowfrom financing (239) 8,803 8,588 ----------- ---------- ----------Net cash outflow afterfinancing, being the decrease in cash in theperiod 6(b) (3,965) (2,713) (2,320) ----------- ---------- ---------- * See Note 1 NOTES TO THE FINANCIAL STATEMENTS 1. BASIS OF PREPARATION The interim financial statements have been prepared on the basis of accountingpolicies consistent with those set out in the Group's Annual Report andfinancial statements for the twelve months to 31 August 2004. The consolidated balance sheet at 29 February 2004 and the consolidated cashflow statement for the six months to 29 February 2004 have been re-presented tobe consistent with the presentation adopted in the Group's consolidatedfinancial statements for the twelve months to 31 August 2004. The results of the Group for the six months to 28 February 2005, and thecomparative figures for the six months to 29 February 2004, are unaudited. Thefinancial information contained herein does not constitute statutory accountswithin the meaning of Section 240 of the Companies Act 1985. The statutory accounts for the twelve months to 31 August 2004, which wereapproved by the shareholders at the Annual General Meeting and which have beendelivered to the Registrar of Companies, carry an unqualified Auditor's Report.They do not contain a statement under Section 237(2) or 237(3) of the CompaniesAct 1985. 2. TURNOVER ----------- ----------- ----------- Six months to Six months to Twelve months to 28 February 29 February 31 August 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £000 £000 £000 ----------- ----------- ----------- Group sales by business segmentArmour Automotive 8,842 8,570 18,736Armour Home Electronics 8,768 5,315 12,377 ----------- ----------- ----------- 17,610 13,885 31,113 ----------- ----------- ----------- Group sales by country ofoperationUnited Kingdom 17,416 13,726 30,708Sweden 324 316 763Inter-area eliminations (130) (157) (358) ----------- ----------- ----------- 17,610 13,885 31,113 ----------- ----------- ----------- Group sales by country ofdestinationUnited Kingdom 13,828 10,539 24,176Rest of Europe 3,298 3,014 5,959Rest of world 484 332 978 ----------- ----------- ----------- 17,610 13,885 31,113 ----------- ----------- ----------- 3. ACQUISITIONS On 22 September 2004, the Group acquired The Hi-End Limited, a specialistcompany providing design, integration and installation services for hometheatre and home automation systems. On 4 November 2004, the Group acquiredMyryad Systems Limited, a company that designs and manufactures quality CDplayers, DVD players and amplifiers for the home entertainment market. 4. TAXATION ON PROFIT ON ORDINARY ACTIVITIES The taxation charge for the six months to 28 February 2005 is based on theeffective taxation rate, which it is estimated will apply to earnings for thefull year. 5. RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS' FUNDS ----------- ----------- ----------- Six months to Six months to Twelve months to 28 February 29 February 31 August 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £000 £000 £000 ----------- ----------- ----------- Profit for the period 862 836 1,747Dividend - - (237) ----------- ----------- -----------Profit for the periodretained 862 836 1,510New share capitalsubscribed (net of issueexpenses) 70 4,823 4,914Ordinary shares issued asconsideration foracquisitions - 550 550Currency translation differenceson foreign currency investments (1) - (7) ----------- ----------- -----------Net movement in equityshareholders' funds 931 6,209 6,967Opening equityshareholders' funds 16,417 9,450 9,450 ----------- ----------- -----------Closing equityshareholders' funds 17,348 15,659 16,417 ----------- ----------- ----------- 6(a). RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES ----------- ----------- ----------- Six months to Six months to Twelve months to 28 February 29 February 31 August 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £000 £000 £000 ----------- ----------- ----------- Operating profit 1,621 1,407 3,078Depreciation of tangiblefixed assets 379 284 630Amortisation of goodwill 399 264 599Decrease/(increase) instocks 178 (252) (1,740)Decrease/(increase) indebtors 1,184 (744) (1,231)(Decrease)/increase increditors (2,289) (88) 1,131(Profit)/loss on disposalof tangible fixed assets (7) 1 (5) ----------- ----------- -----------Net cash inflow fromoperating activities 1,465 872 2,462 ----------- ----------- ----------- 6(b). RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT) ----------- ----------- ----------- Six months to Six months to Twelve months to 28 February 29 February 31 August 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £000 £000 £000 ----------- ----------- ----------- Decrease in cash (3,965) (2,713) (2,320)New bank loans - (4,000) (4,000)Repayment of bank loans 285 - 286Cash outflow from financeleases 24 20 40 ----------- ----------- -----------Change in net debtresulting from cash flows (3,656) (6,693) (5,994)New finance leases (1) (31) (31)Bank loan arrangement costs 13 127 135Bank loan arrangement costsexpensed (20) - (23)Exchange adjustments - - (6) ----------- ----------- -----------Movement in net debt in theperiod (3,664) (6,597) (5,919)Opening net (debt)/funds (2,566) 3,353 3,353 ----------- ----------- -----------Closing net debt (6,230) (3,244) (2,566) ----------- ----------- ----------- 6(c). ANALYSIS OF NET DEBT MOVEMENT -------- ------- -------- -------- -------- 31 August Cash Other Acquisitions 28 February 2004 Flow non-cash £000 2005 changes £000 £000 £000 £000 -------- ------- -------- -------- --------Cash 1,081 (996) - - 85Overdraft - (2,969) 7 - (2,962)Loans: due withinone year (554) 285 (285) - (554)Loans: due aftermore than one year (3,048) - 271 - (2,777)Finance leases (45) 24 - (1) (22) -------- ------- -------- -------- --------Net debt (2,566) (3,656) (7) (1) (6,230) -------- ------- -------- -------- -------- 7. EARNINGS PER ORDINARY SHARE Basic earnings per share is calculated using the weighted average number ofshares in issue during the period of 52,638,710 (29 February 2004: 47,567,290and 31 August 2004: 49,934,924). Underlying earnings per share is also shown calculated by reference to earningsbefore amortisation of goodwill. The Directors consider that this informationgives a useful additional indication of underlying performance. Six months to Six months to Twelve months to 28 February 29 February 31 August 2005 2004 2004 (Unaudited) (Unaudited) (Audited)Basic earnings per ordinaryshare £000 p £000 p £000 p ------- ------- ------- ------- ------- ------- Profit for the period 862 1.6 836 1.8 1,747 3.5Amortisation of goodwill 399 0.8 264 0.5 599 1.2 ------- ------- ------- ------- ------- -------Underlying earnings 1,261 2.4 1,100 2.3 2,346 4.7 ------- ------- ------- ------- ------- ------- Diluted earnings per share is calculated with reference to 56,037,243 (29February 2004: 51,226,791 and 31 August 2004: 53,569,068) ordinary shares. Six months to Six months to Twelve months to 28 February 29 February 31 August 2005 2004 2004 (Unaudited) (Unaudited) (Audited)Diluted earnings perordinary share £000 p £000 p £000 p ------- ------- ------- ------- ------- ------- Profit for the period 862 1.5 836 1.6 1,747 3.3Amortisation of goodwill 399 0.8 264 0.5 599 1.1 ------- ------- ------- ------- ------- -------Underlying earnings 1,261 2.3 1,100 2.1 2,346 4.4 ------- ------- ------- ------- ------- ------- 8. COPIES OF INTERIM REPORT Copies of this interim report are being sent to shareholders and will also bemade available upon request to members of the public at the Company's RegisteredOffice, Lonsdale House, 7-9 Lonsdale Gardens, Tunbridge Wells, Kent TN1 1NU. This information is provided by RNS The company news service from the London Stock Exchange