Vianet Grp Regulatory News (VNET)

5 Dec 2006 07:02

Brulines (Holdings) PLC05 December 2006 Press Release 5 December 2006 Brulines (Holdings) plc ("Brulines" or "the Company") Interim Results Brulines (Holdings) plc (AIM: BRU), the leading provider of volume and revenueprotection systems for draught alcoholic drinks in the UK Licensed on-trade,today announces its Interim Results for the six month period ended 30 September2006. Highlights: • Joined AIM in October 2006, raising £7 million (net proceeds) • Proforma turnover increased 102% to £9.24 million (2005: £4.56 million) • Underlying trading profit (EBIT) of £1.85 million (2005: £0.9 million) • *Adjusted profit before tax of £1.60 million • Successful roll out of Enterprise Inns installations • 2,889 new installations and 1,133 system upgrades (2005: 954 installations) • Trials of Brand Quality Monitoring ("BQM") ongoing in tenanted and managed sectors • Successful acquisition and integration of Corporate Management Services Ltd ("CMS"), enhancing Brulines' position in 'gaming' machines market * this represents profit before taxation, exceptional items and amortisation ofgoodwill Commenting on the Interim Results, James Newman, Chairman of Brulines, said: "During the last six months, the business has undergone a period of significantchange, including admission to AIM. The primary reason for listing on AIM wasto give the Company a stronger financial base from which to significantly expandits activities. These include the development of new products and markets aswell as looking for suitable acquisitions. The higher profile and increasedfinancial strength as a result of the flotation will provide a good foundationfrom which to expand the Company's activities. "The excellent trading performance in the first half together with an increasingproportion of contracted revenue and the introduction of new products into themarket give the Board confidence that further progress will be made in thesecond half of the year." - Ends - For further information please contact: Brulines (Holdings) plcJames Dickson, Chief Executive Tel: +44 (0) 1642 358 800james.dickson@brulines.com www.brulines.comMark Foster, Finance Directormark.foster@brulines.com RSM Robson Rhodes Corporate FinanceNeil Crawford, Corporate Finance Tel: +44 (0) 113 225 4100neil.crawford@rsmi.co.uk www.rsmi.co.uk Media enquiries:AbchurchJustin Heath / Louise Thornhill Tel: +44 (0) 113 203 1340louise.thornhill@abchurch-group.com www.abchurch-group.com Chairman's Statement I am delighted to report a period of significant change and progress for theCompany, in this, my first statement as Chairman. AIM flotation The Company successfully floated on AIM in late October and thanks must go toall my colleagues on the Board and the Company's advisers for achieving thismilestone without too much disruption to the day to day business operations. The primary reason for listing on AIM was to give the Company a strongerfinancial base from which to significantly expand its activities. These includethe development of new products and markets as well as looking for suitableacquisitions. Results Turnover for the period at £9.24 million was significantly ahead of thecorresponding period in 2005, mainly as a result of the rollout of theEnterprise Inns contract, which commenced in October 2005, and the replacementprogramme for Punch Taverns. As anticipated gross margins were down due to thenecessary increase in costs ahead of the new installations but are expected toimprove in the second half as service income from these installations starts tobe generated. Operating profit before goodwill and exceptional items more than doubled to£1.83 million and compares favourably with the operating profit for the whole oflast year of £2.60 million. After deducting goodwill and interest, both ofwhich occurred as a result of the management buy-out in May 2005, and theexceptional costs of the flotation, profit before tax rose to £1.19 million. Overall, the trading and financial performance was slightly ahead of the Board'sexpectations at the time of the flotation. Earnings per share at 3.6 pence wassignificantly higher than 2005. Dividend In line with the statement made at the time of the flotation, the Board intendsthat its first dividend as a public company will be that of a final dividend inrespect of the year ending 31 March 2007. Board When I became Chairman of the Company at the beginning of May, the Company'sfounder, Derrick Collin, stepped down as Non-Executive Chairman. On behalf ofthe Board, I would like to thank Derrick for his significant contribution to theCompany over many years, as the founder, Chairman and major shareholder. In May, as part of the flotation process, the Board appointed Stewart Gillilandas a Non-Executive Director and Duncan Noble, as Operations Director to the plcBoard. Outlook The higher profile and increased financial strength as a result of the flotationwill provide a good base from which to expand the Company's activities. Theexcellent trading performance in the first half together with an increasingproportion of contracted revenue and the introduction of new products into themarket give the Board confidence that further progress will be made in thesecond half of the year. James Newman Chairman 5 December 2006 OPERATING AND FINANCIAL REVIEW Turnover Growth On a comparable year on year proforma basis, the turnover for the first halfyear more than doubled to £9.208 million (6 months to 30 September 2005: £4.560million) with the majority of growth attributable to the Enterprise Innsinstallation roll out plan. Turnover growth is set to continue in the secondhalf albeit at a slower rate. The mix of turnover in the second half will movetowards recurring revenue as our income from support service contracts isrealised from our increasing installation base. In the first half we completed 2,889 new installations and 1,133 system upgradereplacements, compared to a total of 954 installations in the same period lastyear. Proforma trading table The table shows the proforma results of the business, for the periods from 1April 2006 to 30 September 2006 and 1 April 2005 to 30 September 2005. For thepurposes of this analysis we have not shown the interest charges which wereassociated with the MBO in May 2005: H1 2006 H1 2005 £'000's £'000'sBrulines LimitedTurnover 9,208 4,560Gross Profit 3,951 (42.9%) 2,279 (49.9%)EBITDA 1,959 1,017EBIT 1,847 927 New contracts Negotiations in respect of our core product offering to the tenanted / leasedsector are advancing with other national and regional operators and willincrease our market penetration and continue to both broaden our customer baseand gain deeper penetration within existing customers' estates. New product developments We are pleased with progress on our Brand Quality Monitoring (BQM) product,which enables Brulines to remotely capture five of the seven industry recognisedkey success factors for the ''perfect pint", these being line cleaning,throughput, cellar temperature, dispense temperature and flow rate, leaving onlycleanliness of glass and dispense technique as variables. We believe that within the drinks and, in particular, the beer industry, qualityat the point of dispense is becoming increasingly important and that focus onproduct quality is becoming more evident as pub owners and brewers compete formarket share against a background of falling on-premises beer consumption. Thisis resulting in some key trials within both the national tenanted and managedsectors which, if successful, could lead to significant installations in thenext financial year. Acquisition of Corporate Management Services Limited (CMS) On 31 August we successfully acquired the customer base of CMS for a maximumconsideration of £180,000 and have migrated the customers and basic datamanagement service provision to our newly formed company Machine Insite Limited. We have successfully launched an improved database and data management softwarewith web-based reporting that has helped gain new business with SA Brain, MOTOMotorway services and Spirit. The new company is now trading profitably and it is anticipated that it willcontinue to grow its contribution to group profits over the coming years. We plan to introduce new revenue enhancing AWP monitoring service products, suchas remote data capture, during the coming year. Balance sheet - change post flotation The balance sheet reported in the interim statements is before the impact of theflotation, which took place on 26 October, and the resulting repayment of alldebt following the placing, which raised £8.0 million before costs. The balancesheet at the end of October 2006 provides us with a strong base from which totake advantage of growth opportunities. Cash flow Cash flow continues to be strong with £2.2 million generated in the first halfof the year. Following the flotation on AIM, the business has net cash balancesof over £2 million. James Dickson Mark FosterChief Executive Finance Director5 December 2006 5 December 2006 Consolidated profit and loss account for the six months ended 30 September 2006 Note Unaudited Unaudited Unaudited Audited Continuing Exceptional Total 6 months 6 months ended 6 months ended Period ended Period ended ended 30 September 30 September 30 September 30 September 31 March 2006 2006 2006 2005* 2006* £'000 £'000 £'000 £'000 £'000Turnover 9,237 - 9,237 3,602 11,076 Cost of Sales (5,281) - (5,281) (1,730) (5,901) Gross Profit 3,956 - 3,956 1,872 5,175 Administrative Expenses (2,123) (193) (2,316) (1,064) (2,577) Operating profit beforeamortisation of goodwill 1,833 (193) 1,640 808 2,598Amortisation of goodwill (224) - (224) (18) (432)Group operating profit 1,609 (193) 1,416 790 2,166 Net interest (payable) (233) - (233) (221) (540) Profit on ordinary activitiesbefore taxation 3 1,376 (193) 1,183 569 1,626 Tax on profit on ordinaryactivities 1 (554) - (554) (220) (627) Profit on ordinary activitiesafter taxation 822 (193) 629 349 999 Basic earnings per share (p) 2 4.7 (1.1) 3.6 2.0 5.7 Diluted earnings per share (p) 2 4.6 (1.1) 3.5 2.0 5.7 \* The results included in the periods ended 30 September 2005 and 31 March 2006 relate to the period commencing 19 May 2005 There are no recognised gains or losses other than those shown in the profit and loss account above Reconciliation of movement in shareholders' funds for the six months ended 30 September 2006 Unaudited Unaudited Audited 6 months ended Period ended Period ended 30 September 30 September 31 March 2006 2005 2006 £'000 £'000 £'000 Opening shareholders' funds 2,734 - - Profit for financial period 629 349 999New shares issued 15 1,735 1,735Premium on shares allotted during the period 60 - -Purchase of own shares through Employees' Benefit Trust (155) - - Closing shareholders' funds 3,283 2,084 2,734 Consolidated balance sheet as at 30 September 2006 Unaudited Unaudited Audited 30 September 30 September 31 March 2006 2005 2006 £'000 £'000 £'000Fixed assetsIntangible assets 8,896 9,731 9,382Tangible assets 263 678 281 9,159 10,409 9,663Current assetsStocks and work in progress 1,303 689 920Debtors 2,998 2,249 6,237Bank balances 4,820 624 2,650 9,121 3,562 9,807 Creditors: Amounts falling due within one year (7,246) (2,764) (7,697) Net current assets 1,875 798 2,110 Total assets less current liabilities 11,034 11,207 11,773 Creditors: Amounts falling due after one year (7,729) (9,123) (9,024) Provision for liabilities and charges (22) - (15) Net assets 3,283 2,084 2,734 Capital and reservesCalled up share capital - ordinary shares 1,750 1,735 1,735Share premium account 60 - -Profit and loss account 1,473 349 999 3,283 2,084 2,734 Consolidated cash flow statement for the six months ended 30 September 2006 Unaudited Unaudited Audited 6 months ended Period ended Period ended 30 September 30 September 31 March 2006 2005 2006 Note £'000 £'000 £'000Net cash inflow from operating activities Operating profit 1,416 790 2,166 Depreciation and amortisation 319 152 722Profit on sale of tangible assets (1) (6) (213)Increase in stocks (383) (13) (269)Decrease/ (increase) in debtors 3,242 (640) (5,005)(Decrease)/ increase in creditors (855) (275) 5,085 Net cash inflow from operating activities 3,738 8 2,486 Returns on investment and servicing of finance (233) (221) (540) Taxation (193) (132) (462) Capital expenditure and financial investment (80) (77) 494 Acquisitions and disposals (155) (12,486) (12,486) Net cash inflow/ (outflow) before financing 3,077 (12,908) (10,508) Financing(Repayment)/ draw down of loans (970) 10,042 9,894Repayment of finance leases (12) (66) (292)Net proceeds from issue of shares 75 1,735 1,735 Increase/ (decrease) in cash in the period 4 2,170 (1,197) 829 Notes to the Interim Report 1. Tax on profit on ordinary activities The charge for tax is based on the profit for the period and comprises: Unaudited Unaudited Audited 6 months ended Period ended Period ended 30 September 30 September 31 March 2006 2005 2006 £'000 £'000 £'000 United Kingdom corporation tax 547 214 612Deferred tax: net of originating timing differences 7 6 15 554 220 627 2. Earnings per share The calculations of earnings per share are based on the following results andnumbers of shares in issue. Un-audited Un-audited Audited 6 months ended Period ended Period ended 30 September 30 September 31 March 2006 2005 2006 £'000 £'000 £'000 Net profit attributable to equity shareholders 629 349 999Total 629 349 999 Basic earnings per share (p) 3.6 2.0 5.7Total 3.6 2.0 5.7 Diluted earnings per share (p) 3.5 2.0 5.7Total 3.5 2.0 5.7 The weighted average number of shares used to calculate the basic earnings per share 17,472,920 17,345,050 17,345,050The weighted average number of shares used to calculate the diluted earnings per share 17,812,920 17,345,050 17,345,050 3. Exceptional items The exceptional costs of £193,000 incurred in the six month period ended 30September 2006 represent the committed costs at 30 September 2006, relating tothe Company's admission to AIM. 4. Reconciliation of net cash flow to movement in net debt Unaudited Unaudited Audited 6 months ended Period ended Period ended 30 September 30 September 31 March 2006 2005 2006 £'000 £'000 £'000 Increase/ (decrease) in cash during the period 2,170 (1,197) 829Decrease/ (increase) in overdraft during the period 880 (5,673) (5,678)Net funds acquired - 1,659 1,659Cash flow from lease financing and repayment of debt 11 60 292 Change in net debt resulting from cash flows 3,061 (5,151) (2,898) New hire purchase and finance leases - (45) (154) Movement in net debt during period 3,061 (5,196) (3,052) Opening net debt (3,052) - - Closing net debt 9 (5,196) (3,052) 5. Analysis of net debt At At 01 April 30 September 2006 Cash flow 2006 £'000 £'000 £'000 Bank balances and deposits 2,650 2,170 4,820Overdrafts (878) (322) (1,200) 1,772 1,848 3,620 Debt due after one year (4,800) 1,202 (3,598)Hire purchase and finance lease creditors (24) 11 (13) (4,824) 1,213 (3,611) (3,052) 3,061 9 6. Post balance sheet events On 26 October 2006, the Company's shares were admitted to trading on AIM.6,504,065 new shares were placed with Institutions at 123 pence each andadmitted on the same day. Gross proceeds arising from the placing amounted to£8 million. 7. Basis of preparation This interim report was approved by the Board on 5 December 2006. The financialinformation in this interim report does not constitute statutory accounts withinthe meaning of Section 240 of the Companies Act 1985. It has been preparedusing accounting policies that are consistent with those adopted in thestatutory accounts for the period ended 31 March 2006. The interim report isalso presented and prepared in a form consistent with that which will be adoptedin the annual accounts for the period ending 31 March 2007 having regard to theaccounting standards applicable to such accounts. The figures for the period ended 31 March 2006 were derived from the statutoryaccounts for that period. The statutory accounts for the period ended 31 March2006 have been delivered to the Registrar of Companies and received an auditreport which was unqualified and did not contain statements under s237(2) or (3)of the Companies Act 1985. 8. Distribution to shareholders This statement is being posted to shareholders shortly and is available to thepublic at the Company's registered office: EDIS House, Wellington Court, PrestonFarm Business Park, Stockton on Tees, TS18 3TA. INDEPENDENT REVIEW REPORT TO BRULINES (HOLDINGS) PLC Introduction We have been instructed by the company to review the financial information forthe six months ended 30 September 2006. We have read the other informationcontained in the interim report and considered whether it contains any apparentmisstatements or material inconsistencies with the financial information. Thisreport is made solely to the company having regard to guidance contained inBulletin 1999/4 'Review of interim financial information' issued by the AuditingPractices Board. To the fullest extent permitted by law, we do not accept orassume responsibility to anyone other than the company, for our work, for thisreport, or for the conclusions we have formed. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by, the directors. The directorsare responsible for preparing the interim report in accordance with the AIMListing Rules of the Financial Services Authority, which require that theinterim report must be presented and prepared in a form consistent with thatwhich will be adopted in the annual accounts having regard to the accountingstandards applicable to such accounts except where any changes, and the reasonsfor them, are disclosed. Review work performed We conducted our review having regard to guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand, based thereon, assessing whether the accounting policies and presentationhave been consistently applied, unless otherwise disclosed. A review excludesaudit procedures such as tests of controls and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with International Standards on Auditing (UK andIreland) and therefore provides a lower level of assurance. Accordingly we donot express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 September 2006. RSM Robson Rhodes LLP Chartered Accountants Leeds, England 5 December 2006 This information is provided by RNS The company news service from the London Stock Exchange