Synergia Energy Regulatory News (SYN)

13 Dec 2007 07:01

Plastics Capital PLC13 December 2007 For Immediate Release 13 December 2007 Plastics Capital Plc Maiden Interim Results for six months ended 30 September 2007 Plastics Capital Plc (AIM: PLA; Plastics Capital or the "Company") theconsolidator of plastics products manufacturers focused on proprietary productsfor niche markets, today announces its maiden interim results for the six monthsended 30 September 2007. Plastics Capital, which floated on AIM on 3 December 2007, was incorporated on 2October 2007 by Plastics Capital Trading Limited as a vehicle to float on AIMand to acquire in a share for share exchange on 6 December 2007, PlasticsCapital Trading Limited and its subsidiary undertakings in the UK, Japan and theUnited States. The interim financial information presented represents the consolidated resultsand financial position of Plastics Capital Trading Limited and subsidiaries("Trading group") for the six month period to 30 September 2007. The financialinformation has been prepared using International Financial Reporting Standardsas adopted by the EU ("IFRS"). Financial highlights +-----------------------------+------------------+----------------+---------+| | Six months| Six months| || | | | || |ended 30 September| ended 30| || | 2007| September 2006| || | | | %|| | £000| £000| Increase|+-----------------------------+------------------+----------------+---------+|Revenue | 10,149| 8,222| +23|+-----------------------------+------------------+----------------+---------+|Gross Profit | 4,094| 3,520| +16|+-----------------------------+------------------+----------------+---------+|EBITDA excluding exceptionals| 1,390| 1,242| +12|+-----------------------------+------------------+----------------+---------+|Profit before tax* | 629| 560| +12|+-----------------------------+------------------+----------------+---------+|Profit after tax* | 616| 370| +66|+-----------------------------+------------------+----------------+---------+|Adjusted EPS.* | £0.59| £0.35| +69|+-----------------------------+------------------+----------------+---------+ *excluding amortisation and exceptionals (a reconciliation of the financial highlights table above to the consolidatedincome statement is shown in note 3) Operational highlights •Strong new business growth, particularly in the bearings business where new products have been secured across a range of applications including business machinery, security and domestic appliances; •Three acquisitions, Cobb Slater Limited ("Cobb Slater"), Sabre Plastics Limited ("Sabre Plastics") and Channel Matrix Limited ("Channel") have been completed in the six month period; •Integration of Cobb Slater and Sabre Plastics have been successfully completed, with Channel, acquired in August 2007, in the process of being integrated; and •Overall performance in line with the Board's expectations. Commenting on these results, Faisal Rahmatallah, Chairman, said: "The Trading group has made good progress during the period under review.Acquisitions completed in this period will provide good future growth as thebenefits of integration are fully realised. Since the end of this interimreporting period we have become an AIM quoted company, thereby strengthening ourability to execute further acquisitions. Our acquisition pipeline remainsstrong." Plastics Capital plc Tel: 020 7326 8423Faisal Rahmatallah, ChairmanNick Ball, Finance Director Charles Stanley Securities Tel: 020 7149 6000Nominated Adviser & BrokerPhilip DaviesCarl Holmes Buchanan Communications Tel: 020 7466 5000Richard DarbySusanna GaleChristian Goodbody Notes to Editors Plastics Capital successfully floated on AIM on 3 December 2007 and undertook ashare for share exchange to acquire Plastics Capital Trading Limited with itssubsidiary undertakings on 6 December 2007. Plastics Capital is a consolidator of plastics products manufacturers focused onproprietary products for niche markets. The Group has five factories in the UK,an assembly operation in Thailand and sales offices in the US and Japan.Approximately 70 per cent. of sales are exported to countries worldwide.Production is concentrated in the UK where significant engineering know-how andautomation underpins the Group's competitiveness. The Group has 250 employees. Further information can be found on www.plasticscapital.com CHAIRMAN'S STATEMENT Introduction We are pleased to present our first interim results for the six months ended 30September 2007 following our successful flotation on AIM on 3 December 2007.Plastics Capital was incorporated on 2 October 2007 by Plastics Capital TradingLimited as a vehicle to float on AIM and to acquire in a share for shareexchange on 6 December 2007, Plastics Capital Trading Limited and its subsidiaryundertakings in the UK, Japan and the United States. The interim financial information presented represents the consolidated resultsand financial position of Plastics Capital Trading Limited and subsidiaries("Trading group") for the six month period to 30 September 2007. The financialinformation has been prepared using International Financial Reporting Standardsas adopted by the EU ("IFRS"). Financial Review Overall performance is in line with expectations. Compared to the same period last year, the Trading group has: •increased revenue by 23% to £10.1 million; •increased earnings before interest, tax, depreciation and amortisation (EBITDA) and exceptional items by 12% to £1.39 million; •increased profit after tax, excluding amortisation, by 66%, to £0.62 million. Revenue and earnings have increased as a result of organic and acquisitivegrowth. Organic growth has been strongest in our bearings business, where theintake of new projects, which will lead to sales in the future, has beenparticularly strong. Acquisitions have contributed significantly to sales withtwo small transactions completed at the beginning of the period, both of whichhave been integrated into our main businesses incurring restructuring costs inthe process. The full benefit of these acquisitions should commence in thesecond half. In addition, the major acquisition of Channel Matrix Limited("Channel") was completed towards the end of the period. Prior year comparisons are influenced by certain exceptional items: specificallylast year, an exceptional profit of £1.6 million was made on the sale of aproperty in the UK, whilst this year there are restructuring costs of £0.64million and a negative goodwill credit of £0.21m in the first half of the year.The restructuring costs have been incurred for the closure of two factories thathave been integrated into other operations. The negative goodwill has arisen onthe acquisition of the business and assets and Sabre Plastics Limited ("SabrePlastics"). Acquisitions The Company completed three acquisitions during the period under review. Cobb Slater Limited ("Cobb Slater"), a small UK based bearings competitor to BNL(UK) Limited ("BNL"), our plastics bearings business, was acquired on 4 April2007. After a full consultation period, closure of the factory was announced andthe business and assets transferred to BNL, our plastics bearings business, atthe end of June. This is expected to produce approximately £1 million ofincremental turnover in bearings annually for BNL. The business and assets of Sabre Plastics, a producer of general extrusions, wasacquired on 1 May 2007 and similarly to Cobb Slater, the business and assetswere transferred to our business in Narborough, Leicester, which we have renamedSabreplas Limited ("Sabreplas"). The integration of Sabre Plastics was largelycomplete by the end of the reporting period and fully complete by the end ofOctober 2007. This acquisition has produced an additional £1.4 million of annualturnover for Sabreplas. On 31 August 2007, we completed the major acquisition of Channel, which togetherwith Trimplex, consolidates our position as the leading global supplier ofcreasing matrix and related consumables. We are in the process of integratingChannel and Trimplex over the next six months, which should lead to improvementsin profitability. New Business Development In the six month period under review, there has been strong development of newbusiness. BNL, our plastics bearings business, has secured new products for OEMcustomers with annualised sales in excess of £1 million across a range ofapplication sectors including business machinery, security and domesticappliances. Bell Plastics Limited ("Bell"), our mandrel hose business, hassecured new business from a number of new customers, although at this stage atrelatively low levels and in some cases for trials. There has also been goodgrowth in certain overseas markets. Finance To finance the acquisitions completed in the period, net debt increased by £12.2million with increased facilities secured with Royal Bank of Scotland. The AIMflotation raised £16.2 million of which £12.6 million has been used to repaydebt in the Trading group. Consequently our gearing has reduced to relativelyconservative levels, with our earnings more than twice covering our debt. Gross profit margins have been adversely affected by the weakening of the USdollar over the period although the Trading group is hedged against this througha certain proportion of borrowings being in US dollars and through derivativecontracts. This hedging has effectively neutralised the impact of the US dollarat the pre-tax profit line. Compared to last year there has been an increase in overhead during the periodas resources were added ahead of the significant growth in the business and toprepare for being an AIM quoted business. Capital expenditure has been higher than in the comparative period due to theconsolidation of the Cobb Slater and Sabre Plastics operations and also due tothe growth achieved by BNL. We have added new injection moulding machines andnew tooling to facilitate growth and the introduction of new products. Current trading and future prospects Following satisfactory trading in the first half that was in line with theBoard's expectations; and with attractive new product developments in thepipeline; the potential for profit improvement by integrating the Channelacquisition as well as strong cash flows and a strong pipeline of attractiveacquisition opportunities, the directors believe the Group is well positionedfor further growth in the future. Finally, the Board wishes to extend its sincere thanks to all the Group'semployees. The listing process in particular and the acquisitions completed haveput extra demands on many members of staff. The response has been uniformlypositive and is fully appreciated. Faisal Rahmatallah Chairman Plastics Capital Trading Limited Consolidated Income Statement (unaudited) Note Six Six Year months months ended 31 ended 30 ended 30 March September September 2007 2006 2007 £000 £000 £000 Revenue 10,149 8,222 16,660Cost of sales (6,055) (4,702) (9,695) Gross profit 4,094 3,520 6,965 Other operating income beforeprofit on saleland and buildings and negative - - -goodwill credit:Profit on sale of land and - 1,604 1,604buildingsNegative goodwill credit 2 206 - -Total other operating income 206 1,604 1,604Distribution expenses (1,154) (993) (1,986)Administrative expenses before (2,200) (1,808) (3,527)restructuring costs:Restructuring costs 2 (638) - -Total administrative expenses (2,838) (1,808) (3,527) Operating profit 308 2,323 3,056 Financial income 90 120 214Financial expenses (558) (569) (2,141) Net financing costs (468) (449) (1,927) (Loss)/Profit before tax (160) 1,874 1,129Taxation 5 (13) (190) 92 (Loss)/Profit for the year (173) 1,683 1,221 Attributable to:Equity holders of the parent (163) 1,590 1,147Minority interest (10) 93 74 (Loss)/Profit for the year (173) 1,683 1,221 Earnings per shareBasic 7 (17)p 161p 117pDiluted 7 (17)p 157p 114p Plastics Capital Trading Limited Statements of Recognised Income and Expense (unaudited) Six months Six months Year ended 30 ended 30 ended 31 September September March 2007 2006 2007 £000 £000 £000 Foreign exchange translation 13 (102) (181)differences Net income recognised 13 (102) (181)directly in equity (Loss)/Profit for the year (173) 1,683 1,221 Total recognised income and (160) 1,581 1,040expense Total recognised income andexpense for the period isattributable to:Equity holders of the parent (150) 1,488 966Minority interest (10) 93 74 (160) 1,581 1,040 Plastics Capital Trading Limited Consolidated Balance Sheet (unaudited) As at As at As at 30 30 31 September September March 2007 2006 2007 £000 £000 £000Non-current assetsProperty, plant and equipment 2,826 1,632 1,722Intangible assets 20,320 10,511 10,344 23,146 12,143 12,066 Current assetsInventories 2,801 1,777 1,545Trade and other receivables 5,888 3,611 4,204Other financial assets - 35 -Cash and cash equivalents 510 2,109 995 9,199 7,532 6,744 Total assets 32,345 19,675 18,810 Current liabilitiesInterest-bearing loans and 1,480 1,364 791borrowingsTrade and other payables 3,261 2,167 2,040Corporation tax liability 150 261 401 4,891 3,792 3,232 Non-current liabilitiesInterest-bearing loans and 19,483 7,919 8,420borrowingsOther financial liabilities - - 12Deferred tax liabilities 2,181 1,393 1,205 21,664 9,312 9,637 Total liabilities 26,555 13,104 12,869 Net assets 5,790 6,571 5,941 Equity attributable to equityholders of the parentShare capital 10 10 10Share premium 1,408 1,408 1,408Capital Redemption reserve 1 1 1Translation reserve (168) (102) (181)Retained earnings 3,496 4,186 3,650 4,747 5,503 4,888Minority interest 1,043 1,068 1,053 Total equity 5,790 6,571 5,941 Plastics Capital Trading Limited Consolidated Cash Flow Statement (unaudited) Six Six months months Year ended ended ended 30 30 31 September September March 2007 2006 2007 £000 £000 £000 Cash flows from operatingactivities before tax(Loss)/profit for the period (160) 1,874 1,129Adjustments for:Depreciation, amortisation and 444 523 1,043impairmentFinancial income (90) (120) (214)Financial expense 558 569 2,141Gain on disposal of PPE - (1,604) (1,592)Equity settled share based payment - - 8expenses 752 1,242 2,515Operating profit before changes inworking capital and provisionsIncrease/(decrease) in trade and (75) 16 (539)other receivablesIncrease/(decrease) in inventories (8) (77) 155Increase/(decrease ) in trade and (320) 399 (20)other payables Cash generated from operations 349 1,580 2,111Interest paid (274) (281) (507)Income tax paid - (33) (217) Net cash from operating activities 75 1,266 1,387 Cash flows from investingactivitiesAcquisition of subsidiary, net of (10,946) - -cash acquiredRefund of consideration in respect - - 49of acquisitionsAcquisition of property, plant and (629) (54) (379)equipmentInterest received 4 6 17Acquisition of intangible assets - - (53)Proceeds from disposal of PPE - 2,669 2,669 Net cash from investing activities (11,571) 2,621 2,303 Cash flows from financingactivitiesProceeds from the issue of share - - 70capitalProceeds from new loan 17,171 - 4,438Drawdown on invoice discounting (6,160) (2,211) (6,736)facilityRepayment of borrowings - - (900) Net cash from financing activities 11,011 (2,211) (3,128) Increase/(decrease) in cash and (485) 1,676 562cash equivalentsCash and cash equivalents at 1 995 433 433April Cash and cash equivalents at 30September 510 2,109 995 and 31 March 1 Basis of preparation and accounting policies Basis of Preparation Plastics Capital Plc ("The Company") was incorporated on 2 October 2007 byPlastics Capital Trading Limited as a vehicle to float on AIM and to acquire ina share for share exchange Plastics Capital Trading Limited. Plastics CapitalTrading Limited is a private limited company incorporated in England and Wales,with subsidiary undertakings in the UK, Japan and the United States. The Company has chosen to present interim financial information in respect ofPlastics Capital Trading Limited. The interim financial information presented inthis statement represents the consolidated results and financial position ofPlastics Capital Trading Limited and subsidiaries ("Trading group") for the sixmonth period to 30 September 2007. The financial information has been preparedusing International Financial Reporting Standards as adopted by the EU ("IFRS"). The Company's first financial statements will be for the period ending 31 March2008 and will be prepared under IFRS. The first financial statements willconsolidate the results and financial position of Plastics Capital TradingLimited and subsidiaries for the 12 month period ending 31 March 2008, byreverse acquisition accounting as required by IFRS 3 'Business Combinations'. The consolidated interim financial information represents Plastics CapitalTrading Limited and its subsidiaries and is for the six months ended 30September 2007 and the comparative period in 2006. Comparatives included for theyear ended 31 March 2007 are audited. Plastics Capital Trading Limited preparesits statutory financial statements in accordance with UK GAAP and is expected tocontinue to do so. First time adoption of Adopted IFRS The interim financial information has been prepared on the basis of therecognition and measurement requirements of adopted IFRSs as at 30 September2007 that are effective (or available for early adoption) as at 31 March 2008,Plastics Capital Plc's first annual reporting date at which it is required touse adopted IFRSs. Based on these adopted IFRSs, the directors have applied theaccounting policies, as set out below, which they expect to apply when the firstannual IFRS financial statements are prepared for the period ending 31 March2008. However, the adopted IFRSs that will be effective (or available for earlyadoption) in the annual financial statements for the period ending 31 March 2008are still subject to change and to additional interpretations and thereforecannot be determined with certainty. Accordingly, the accounting policies forthat annual period will be determined finally only when the annual financialstatements are prepared for the period ending 31 March 2008. The comparative figures for the financial year ended 31 March 2007 preparedunder IFRS, are not Plastics Capital Trading Limited statutory accounts for thatfinancial year but rather those presented in the Company's Admission Document.The statutory accounts, which were prepared under UK GAAP, have been reported onby the company's auditors and will be delivered to the registrar of companies.The report of the auditors was (i) unqualified, (ii) did not include a referenceto any matters to which the auditors drew attention by way of emphasis withoutqualifying their report, and (iii) did not contain a statement under section 237(2) or (3) of the Companies Act 1985. Accounting policies The interim accounts has been prepared using the same accounting policies asthose disclosed in the Plastics Capital Trading Limited's IFRS ConsolidatedFinancial Information presented in the Company's Admission Document. 2 Restructuring Costs Restructuring costs relate to closure and redundancy costs for Cobb Slater andSabre Plastics incurred during the six months to 30 September 2007. Negative goodwill has arisen on the acquisition of Sabre Plastics' business andassets and is disclosed in Note 4. 3 Reconciliation of financial highlights table to the consolidated incomestatement Six months Six months to to 30 September 30 September 2007 2006 £000 £000 Operating profit 308 2,323 Add back: depreciation 311 235Add back: amortisation 339 288 ExceptionalsAdd back: Profit on sale of - (1,604)land & buildingsAdd back: Restructuring costs 638 -Add back: Negative goodwill (206) -credit EBITDA before exceptionals 1,390 1,242 Depreciation (311) (235)Interest (468) (449)Interest hedge derivative 18 2costs PBT before exceptionals & 629 560amortisation Taxation (13) (190) PAT before exceptionals & 616 370amortisation 4 Acquisitions Cobb Slater Limited On 4 April 2007, BNL acquired 100% of the ordinary share capital of Cobb Slaterfor a total consideration of £0.48m. Cobb Slater is engaged in the design,moulding and manufacture of plastic bearings. In the six months to 30 September2007, the subsidiary produced a net loss of £(0.3)m which has been reflected inthe consolidated net profit for the period. Effect of acquisition The acquisition had the following effect on the Company's assets andliabilities: Acquiree's Fair value Provisional book value adjustments Fair value £000 £000 £000Acquiree's net assets at theacquisition date:Property, plant and equipment 337 (165) 172Intangible assets 29 193 222Inventory 563 (302) 261Trade and other receivables 600 - 600Cash and cash equivalents 1 - 1Trade and other payables (1,465) 19 (1,446)Deferred tax liability - (67) (67) Net identifiable assets and 65 (322) (257)liabilities Consideration paid:Cash 474Costs of acquisition 2 Goodwill 733Cash consideration paid 476including costs of acquisitionCash (acquired) 1 Net cash outflow 475 At 30 September 2007 the fair values of the assets and liabilities acquirednoted above are provisional. Sabre Plastics Limited On 1 May 2007, Sabreplas acquired the net assets and trade of Sabre Plastics fora total consideration of £0.3m. Sabre Plastics was engaged in the manufacture ofgeneral extrusion. In the six months to 30 September 2007, the subsidiaryproduced a net loss of £0.06m which has been reflected in the consolidated netprofit for the period. Effect of acquisition The acquisition had the following effect on the Company's assets andliabilities: Acquiree's Fair value Provisional book value adjustments Fair value £000 £000 £000Acquiree's net assets at theacquisition date:Property, plant and equipment 346 - 346Intangible assets - - -Inventory 169 - 169Trade and other payables (7) - (7) Net identifiable assets and 508 - 508liabilities Consideration paid:Cash 302Costs of acquisition - Negative Goodwill (206) Cash consideration paid 302including costs of acquisitionCash (acquired) - Net cash outflow 302 At 30 September 2007 the fair values of the assets and liabilities acquirednoted above are provisional. Channel Matrix Limited On 31 August 2007, the Company acquired the ordinary share capital of Channelfor a total consideration of £10.1m. Channel Matrix is engaged in themanufacture of creasing matrix. In the six months to 30 September 2007, thesubsidiary produced a net profit of £0.05m which has been reflected in theconsolidated net profit for the period. Effect of acquisition The acquisition had the following effect on the Company's assets andliabilities: Acquiree's Fair value Provisional book value adjustments Fair value £000 £000 £000Acquiree's net assets at theacquisition date:Property, plant and equipment 292 (13) 279Intangible assets 600 2,770 3,370Investments 690 - 690Inventory 817 - 817Trade and other receivables 1,057 (23) 1,034Cash and cash equivalents 230 - 230Trade and other payables (940) (10) (950)Deferred tax liability (20) (831) (851) Net identifiable assets and 2,726 1,893 4,619liabilities Consideration paid:Cash 10,085Costs of acquisition 82 Goodwill 5,548 Cash consideration paid 10,167including costs of acquisitionCash (acquired) 230 Net cash outflow 9,937 At 30 September 2007 the fair values of the assets and liabilities acquirednoted above are provisional. In addition, to the consideration paid to date, the Company is required to pay abonus consideration up to a maximum of £2.5m if the average EBITDA for year 2and year 3 for the business of Channel and its subsidiaries together with thecreasing matrix business of Trimplex is equal to or greater than £3m. In thiscase the Company must pay to the vendors the amount by which the average EBITDAfor year 2 and year 3 following completion exceeds £2.5m. As at 30 September2007, no provision had been made for this possible amount. The cash consideration was funded by further borrowings from Royal Bank ofScotland and the issue of a shareholder loan of £3m. 5 Taxation The taxation charge is calculated by applying the directors' best estimate ofthe annual tax rate for the (loss)/profit for the period. 6 Dividends The directors do not recommend the payment of an interim dividend (2006: nil). 7 Earnings per share Six months Six months Year to to to 31 March 30 September 30 September 2007 2007 2006 £000 £000 £000 Profit for the period (173) 1,683 1,221 Add back: Interest hedge 18 2 2derivative costsAdd back: Profit on sales of land - (1,604) (1,604)& buildingsAdd back: Restructuring costs 638 - -Add back: Negative goodwill (206) - -creditAdd back: Goodwill amortisation 339 288 576 Profit for the period beforeprofit on sale of land andbuildings, restructuring costsand goodwill amortisation 616 370 195 Weighted average number of shares 1,046,314 1,046,314 1,046,314used in basic EPSEffect of employee share options 14,132 24,992 24,992Weighted average number of shares 1,060,446 1,071,306 1,071,306used in diluted EPS Basic earnings per share (17)p 161p 117pDiluted earnings per share (17)p 157p 114p Adjusted basic earnings per share 59p 35p 119pbefore profit on sale of land andbuildings, restructuring costsand goodwill amortisationAdjusted diluted earnings per 58p 34p 118pshare before profit on sale ofland and buildings, restructuringcosts and goodwill amortisation 8 Consolidated statement of changes in capital and reserves Share Share Translation Capital Retained Minority Total capital premium reserve Redemption earnings Total interest equity reserve £000 £000 £000 £000 £000 £000 £000 £000 Balance at 1 April 10 1,408 (181) 1 3,650 4,888 1,053 5,9412007Total recognisedincome andexpense for the - - 13 - (154) (141) (10) (151)year Balance at 30 10 1,408 (168) 1 3,496 4,747 1,043 5,790September 2007 9 Accounts These interim accounts are being sent to all shareholders. Copies may also beobtained from the Company Secretary at the Registered Office of the Company:St Mary's House, 42 Vicarage Crescent, London, SW11 3LD. This information is provided by RNS The company news service from the London Stock Exchange