Interim Results

5 Aug 2005 10:50

AMCO Corporation PLC05 August 2005 AMCO CORPORATION PLC UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2005 CHAIRMAN'S STATEMENT RESULTS There was an operating profit of £2,495,000 for the first half of 2005 comparedwith a profit of £1,276,000 for the first half of 2004, an increase of 95.5%.The after tax profit was £1,614,000 compared with a profit of £1,019,000 for thefirst half of 2004, an increase of 58.4%. ContractingContracting activities have performed satisfactorily and profitably. PropertyProperty investment and development had a break-even half year. Structural SteelStructural steel activities had an extremely good first half and returned recordprofits. Equipment ManufacturingDosco had a quiet first half and, due to the timing of completion of deliveries,a loss, as anticipated, was incurred. Pension Schemes and Total Recognised GainsThere were losses recognised in the pension schemes of £1,163,000 before tax and£814,000 after tax. Having regard to the after tax profits of £1,614,000, thisresulted in total recognised gains for the first half of 2005 of £800,000. Earnings per ShareThese were 13.7 pence compared with earnings per share of 8.6 pence for thefirst half of 2004 and earnings per share of 23.0 pence for 2004 as a whole. DIVIDEND We do not intend to pay an interim dividend for 2005. LIQUIDITY AND CAPITAL RESOURCES Gearing at 30 June 2005 was nil compared with 10% gearing at 30 June 2004 and 1%at 31 December 2004 PROSPECTS Present indications are that the second half of 2005 will result in asatisfactory profit. Stuart N. Gordon5 August 2005 Consolidated profit and loss account(Unaudited) Six months to 30th Six months to 30th Twelve months to June 2005 June 2004 31st December 2004 £000 £000 £000 Turnover (including share in joint ventures) 59,289 63,290 134,167Share of turnover in joint ventures (2,242) (633) (2,542)Group turnover 57,047 62,657 131,625Group operating profit 2,380 1,270 3,038Share of operating profit in joint ventures 115 6 178Total operating profit 2,495 1,276 3,216Net interest payable (57) (122) (187)Other finance (costs)/income (103) (5) 2Profit on ordinary activities before taxation 2,335 1,149 3,031Taxation on profit on ordinary activities (721) (130) (312)Retained profit for the period 1,614 1,019 2,719Earnings per share 13.7p 8.6p 23.0p Consolidated balance sheet(Unaudited) 30th June 2005 30th June 2004 31st December 2004 £000 £000 £000Fixed assets Tangible assets 14,607 15,010 14,649 Investments 350 0 350 Investments in joint ventures: Share of gross assets 7,630 5,044 5,630 Share of gross liabilities (6,424) (3,924) (4,485) 1,206 1,120 1,145 16,163 16,130 16,144Current assets Stock and work in progress 13,728 13,265 10,801 Amounts recoverable on contracts 5,521 8,174 8,098 Debtors 12,949 12,433 13,209 Cash at bank and in hand 4,099 3,358 5,618 36,297 37,230 37,726Creditors: amounts falling due within one year (30,874) (33,981) (33,634)Net current assets 5,423 3,249 4,092Total assets less current liabilities 21,586 19,379 20,236Creditors: amounts falling due after more thanone year (1,840) (2,251) (1,830)Net assets excluding pension liability 19,746 17,128 18,406Pension liability (12,408) (8,060) (11,840)Net assets including pension liability 7,338 9,068 6,566 Capital and reservesCalled up share capital 1,293 1,293 1,293Share premium 1,864 1,864 1,864Capital redemption reserve 132 132 132Property revaluation reserve 3,284 3,284 3,284Other reserve (624) (580) (596)Profit and loss account 1,389 3,075 589Shareholders' funds 7,338 9,068 6,566 Summary consolidated cashflow statement(Unaudited) Six months to 30th Six months to 30th Twelve months to June 2005 June 2004 31st December 2004 £000 £000 £000 Group operating profit 2,380 1,270 3,038Depreciation on tangible fixed assets 1,223 1,269 2,539Reversal of provision against investment 0 0 (350)Difference between pension charge and cashcontributions (455) (361) (935)Profit on sale of fixed assets (70) (388) (748)Movement in working capital (923) (342) (267)Net cashflow from operating activities 2,155 1,448 3,277Dividend from joint venture 0 0 125Net cashflow from returns on investments andservicing of finance (57) (122) (187)Taxation (135) (1) 153Net cashflow from capital expenditure andfinancial investment (418) 1,330 1,260Net cashflow before financing 1,545 2,655 4,628Net cashflow from financing (3,064) (1,085) (49)(Decrease)/increase in cash (1,519) 1,570 4,579 Notes 1. Reconciliation of net cashflow to movement innet funds /(debt)(Decrease)/increase in cash in the period (1,519) 1,570 4,579Net cashflow on bank and other loans 2,205 177 (1,640)Cash outflow on hire purchase 859 908 1,689Change in net funds /(debt) resulting fromcashflows 1,545 2,655 4,628Inception of hire purchase (721) (1,004) (1,499)Movement in net funds /(debt) in the period 824 1,651 3,129Net debt at start of period (188) (3,317) (3,317)Net funds /(debt) at end of period 636 (1,666) (188) 2. Analysis of net funds /(debt)Cash at bank and in hand 4,099 3,358 5,618Bank overdrafts 0 (749) 0 4,099 2,609 5,618Bank and other loans (921) (1,309) (3,126)Hire purchase (2,542) (2,966) (2,680)Net funds /(debt) 636 (1,666) (188) 3. Gearing 0% 10% 1% Statement of total recognised gains and losses(Unaudited) Six months to 30th Six months to 30th Twelve months to June 2005 June 2004 31st December 2004 £000 £000 £000Profit for the period 1,614 1,019 2,719Actuarial (loss)/gain recognised in the pensionschemes (see note) (1,163) 1,946 (4,032)Movement on deferred tax relating to pensionliability 268 (692) 929Current tax relating to pension liability 81 110 281Total recognised gains/(losses) for the period 800 2,383 (103) Note Actuarial (loss)/gain recognised in the pensionschemesActual return less expected return on pensionscheme assets 1,584 (278) 1,382Experience gains and losses arising on the schemeliabilities (244) 0 79Changes in assumptions underlying the presentvalue of the scheme liabilities (2,503) 2,224 (5,493) (1,163) 1,946 (4,032) Notes: 1. The financial information for the six months ended 30 June2005 and the comparative figures for the six months ended 30 June 2004 areunaudited and have been prepared on the basis of the accounting policies set outin the statutory accounts for the year ended 31 December 2004 and have beenapproved by the Board. This financial information does not constitute statutoryaccounts as defined in Section 240 of the Companies Act 1985. The financialstatements for the year ended 31 December 2004 received an unqualified auditreport and have been delivered to the Registrar of Companies. 2. Earnings per ordinary share have been calculated on thebasis of profit for the period after tax, divided by the weighted average ofordinary shares in issue in the period, excluding those held in the ESOP Trust,of 11,796,246. The comparatives are calculated by reference to the weightedaverage of shares in issue which were 11,817,208 for the period to 30 June 2004and 11,797,808 for the year ended 31 December 2004. 3. This statement is being sent to the shareholders of the Companyand will be available at the Company's Registered Office at Amco House, CedarCourt Office Park, Denby Dale Road, Wakefield, West Yorkshire, WF4 3QZ. This information is provided by RNS The company news service from the London Stock Exchange