RHL.L Regulatory News (RHL)

23 Jun 2005 08:58

Booth Industries Group PLC23 June 2005 BOOTH INDUSTRIES GROUP PLC INTERIM REPORT FOR THE SIX MONTHS TO 31 MARCH 2005 Chairman's Statement Current Trading For the six months to 31 March 2005 turnover was £13,283,000 (2004;£13,083,000). Operating losses were reduced to £233,000, from £380,000 for thecorresponding period last year. Net loss after taxation was £198,000 (2004;£476,000). In the activity levels of the individual operating businesses, importantadvances were made by Jordan Nuclear Limited ("JN") and its supporting deliverypartner Jordan Projects Limited ("JP"). Booth Industries Limited ("BIL") alsomade good progress, whilst CHB-Jordan Engineering Limited ("CHB-J") returned asteady performance. Unfortunately, these were counteracted by a reduced turnoverin Jordan Manufacturing Limited ("JM"). Operating results from ordinary activities changed very much in line withturnover levels in the businesses. Higher margins earned by the leadingcontributors, BIL and JN, more than compensated for the difficulties beingexperienced by JM, thereby still leaving us with a welcome improvement for theperiod. This was complemented by a profit of £148,000 on the disposal of surplusland, contiguous to our manufacturing facility at Bolton. We were pleased to be able to consolidate the position we have been reaching foras onsite contractors to the nuclear industry and, in the period under review,made important achievements. Firstly in successfully completing our largestrecent contract (valued in excess of £7m) and, secondly, in reaching a safetythreshold of one million man-hours without experiencing any statutorilyreportable safety incidents. Our BIL business continued to show advances in itstarget marketplaces for high integrity walls and doors, whilst retaining a goodbalance between onshore and offshore customers and producing improved margins.CHB-J had a steady half-year but experienced a small decline in operatingmargins as a result of a change in the mix of its workload. For JM, which isgoing through a recovery programme following the cessation of demand from thenuclear fuel reprocessing industry for transportation flasks, the half-year wasvery challenging and it continued to suffer operating losses. Whilst itsworkload improved over the second half of last year, the achievement ofalternative work from different customers was at the expense of margins. Dividend The directors do not recommend an interim dividend (2004 interim; nil; 2004final; nil). Financial Position Our cash position remains broadly similar to that reported at the year-end,whilst capital receipts have allowed us to retire some £630,000 of debt in thesix months to 31 March 2005. Gearing net of cash improved from 17% to 10% in theperiod. Our annual report last year indicated that contract value disputes inrelation to some of JP's former customers represented some £2,760,000 of theamount we were carrying as trade debtors and amounts recoverable on contracts.Within that figure, and subsequent to the end of the period under review,contracts representing some £570,000 have now been negotiated to a satisfactoryconclusion. Prospects We see continuing strength in our businesses which serve the nuclear industry.The Nuclear Decommissioning Authority began its operations in April and we areencouraged to see that their plans include important, medium term opportunitiesfor us which we are now able to target. Some of these opportunities are veryrelevant to JM and these we shall be pursuing vigorously in our efforts toreverse the current loss making position of that business. CHB-J, with its oiland gas industry customer focus, sees a stable market for its services, butcompetition remains intense. Workflow opportunities at BIL remain satisfactory;in particular, important projects for rail and road tunnels continue to becomeavailable. Balanced against the strength of our order books and prospects we aremindful of delays in the execution of work which have been experiencedthroughout the period. In the event that these should continue and in view ofthe continuing losses at JM we anticipate falling short of expectations for theyear. D N Ablett Chairman 22 June 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNT (UNAUDITED) Half year Half year Year ended 31 March 31 March 30 September 2004 2005 2004 (audited) £000 £000 £000 -------- -------- --------Turnover 13,283 13,083 27,442 -------- -------- -------- Operating loss on ordinaryactivities (233) (380) (28) Exceptional items Profit on disposal of fixed asset 148 - -Profit on disposal of discontinuedoperations - - 846 Net interest payable (113) (96) (212) -------- -------- --------(Loss)/profit before taxation (198) (476) 606 Taxation - - 3 -------- -------- --------(Loss)/profit for the periodtransferred (from)/to reserves (198) (476) 609 ======== ======== ======== (Loss)/earnings per share- basic (1.48)p (3.56)p 4.56p- diluted (1.48)p (3.56)p 4.30p The calculations of earnings per share for the six months ended 31 March 2005are based on the average number of shares in issue, being 13,353,606 (2004:13,353,606) and the loss of £198,000 (2004: loss £476,000). The result for the financial period represents all of the gains and lossesrecognised by the group during the period CONSOLIDATED BALANCE SHEET (UNAUDITED) As at As at As at 31 March 31 March 30 September 2005 2004 2004 £000 £000 (audited) £000 Fixed assets -------- -------- --------Tangible assets 1,335 1,574 1,511 -------- -------- -------- Current assets Stocks 189 176 187Debtors 10,598 9,828 12,182Cash at bank 1,002 2,013 1,190 -------- -------- -------- 11,789 12,017 13,559 Creditors: amounts falling due withinone year (5,900) (8,372) (7,044) -------- -------- -------- Net current assets 5,889 3,645 6,515 -------- -------- -------- Total assets less current liabilities 7,224 5,219 8,026 Creditors: amounts falling due aftermore than one year (1,375) (257) (1,979) -------- -------- --------Net assets 5,849 4,962 6,047 ======== ======== ======== Capital Called up share capital 3,338 3,338 3,338 Reserves Share premium account 578 578 578Merger reserve 294 294 294Profit and loss account 1,639 752 1,837 -------- -------- --------Equity shareholders' funds 5,849 4,962 6,047 ======== ======== ======== CONSOLIDATED CASH FLOW (UNAUDITED) Note Half year Half year Year ended 30 September 2004 31 March 2005 31 March 2004 (audited) £000 £000 £000 Cash outflowfrom operatingactivities 1 (511) (2,030) (1,380) Returns on investmentsand servicing offinance Interest paid (131) (89) (137)Interestreceived 19 19 43Interest elementof finance leaserentals (1) (12) (7) Taxation UK Corporation tax paid - - - Capital expenditure andfinancial investment Purchase oftangible fixedassets (25) (25) (88)Proceeds fromdisposals oftangible fixedassets 250 - 10 Disposal Disposal ofOaklandElevatorsLimited: 846 - -Deferred considerationless costsRepaymentfollowingagreement of - - (630)completion accounts pluscosts Dividends Equity dividendspaid - - (668) -------- -------- --------Net cashinflow/(outflow)before financing 447 (2,137) (2,857) Financing Finance leases (6) (14) (18)Medium term loanrepayments (100) (100) (200)Loan stockrepayments (529) (29) (28) -------- -------- --------Decrease in cashfor the period 2 (188) (2,280) (3,103) ======== ======== ======== NOTES TO THE CASH FLOW 1. Reconciliation of operating loss to net cash outflow from operating activities Half-year Half-year Year ended 31 March 31 March 30 September 2005 2004 2004 £000 £000 (audited) £000Operating loss on ordinary activities (233) (380) (28)Depreciation charge 99 115 228Loss on sale of tangible fixed assetsincluded within the operating loss onordinary activities - - 3(Increase)/decrease in stocks (2) 8 (3)Decrease/(increase) in debtors 719 1,373 (113)Decrease in creditors (1,094) (3,146) (1,467) -------- -------- -------- (511) (2,030) (1,380) ======== ======== ======== 2. Reconciliation of net cash flow to movement in net debt Half-year Half-year Year ended 31 March 31 March 30 September 2005 2004 2004 £000 £000 (audited) £000Decrease in cash in the period (188) (2,280) (3,103)Cash outflow from decrease in debt andlease financing 635 143 246 -------- -------- -------- Change in net debt arising from cashflows 447 (2,137) (2,857)Accrual of loan stock redemption premium (25) (39) (111) -------- -------- -------- Decrease/(increase) in net debt duringthe period 422 (2,176) (2,968)Opening net (debt)/funds (1,033) 1,935 1,935 -------- -------- -------- Closing net debt (611) (241) (1,033) ======== ======== ======== Cash is defined as cash in hand lessoverdrafts BASIS OF PREPARATION OF INTERIM FINANCIAL INFORMATION The interim accounts are prepared on the basis of the accounting policies setout in the group's statutory accounts for the year ended 30 September 2004.Taxation is calculated by applying the directors' best estimate of the annualtax rate to the result for the period.The financial information contained herein does not constitute statutoryaccounts within the meaning of Section 240 of the Companies Act 1985. Theaccounts of the company for the year ended 30 September 2004 have been filedwith the Registrar of Companies and carry an unqualified audit opinion.Copies of this interim report are being sent to shareholders and are availablefrom the Company Secretary, Booth Industries Group PLC, PO Box 50, NelsonStreet, Bolton, BL3 2AP. This information is provided by RNS The company news service from the London Stock Exchange