Final Results

RNS Number : 9536O

Billington Holdings PLC

17 March 2009

 



Press Release

17 March 2009

Billington Holdings Plc

('Billington' or 'the Group')

Final Results

Billington Holdings Plc (AIM: BILN), one of the UK's leading structural steel and engineering specialists, announces its final results for the year ended 31 December 2008.  

Financial Highlights

	Revenue increased by 11.6% to £78.3 million (FY 2007: £70.1 million)
	Profit before tax from continuing operations increased by 8.5% to £5.2 million (FY 2007: £4.8 million)
	Profit after tax from continuing operations increased by 6.2% to £3.5 million (FY 2007: £3.3 million)
	EPS from continuing operations increased by 6.3% to 30.4 pence (FY 2007: 28.6 pence)
	The use of cash proceeds from the sale of non-core assets to fund working capital requirements has ensured that the Group has no debt
	Recommended final dividend of 7.75 pence per share leading to total dividend of 11.5 pence per share (FY 2007: total dividend of 11 pence per share)

Commenting on the results, Peter Hems, Executive Chairman of Billington Holdings Plc, said: 'I am pleased with the Group's performance since the disposal of non-core assets in April 2008.  Despite some uncertainty with lower activity levels and margins at Billington Structures, the Group's forward order book remains strong. In particular, we are buoyed by our focus on the public sector, including schools and hospitals, and because we are a preferred supplier to a number of main contractors.

'The Group continues to receive a good level of enquiries, and with our strong balance sheet, is well placed and confident of sustained strategic and long-term financial growth.'

  For further information please contact:

Billington Holdings Plc
Peter Hems, Executive Chairman  Steve Fareham, Chief Executive  [e-mail]	Tel: + 44 (0) 116 2575170    [phone]  www.billington-holdings.plc.uk

Brewin Dolphin Investment Banking
Andrew Emmott	Tel: [phone]

  Media enquiries:

Abchurch
Sarah Hollins / Chris Lane / Jack Ballantyne [e-mail]	Tel: [phone]  www.abchurch-group.com

  Notes to Editors

With history dating back to 1970, Billington Holdings Plc was formed in June 2008 following the disposal of non-core assets and change of name from Amco Corporation Plc. The Group comprises three divisions:

  Structural Steel

Billington Structures	One of the leading structural steel contractor businesses in the UK focusing on the design, manufacture and erection of structural steelwork for industrial, public sector and commercial buildings. This division is listed as a 'preferred supplier' to a number of main contractors, including Balfour Beatty and Bovis, and regularly works on a 'back-to-back' basis in competitive tendering.
Hollybank	Design and manufacture of steel arch roof supports for the underground mining industry.

  Safety Solutions

easi-edge

A specialist in the development, production and rental or sale of edge protection systems and of other safety related products for the construction industry.

  Engineering

Dosco Overseas Engineering

Design and manufacture of roadheading and tunnelling machines for the mining and civil engineering industries worldwide.

Billington Holdings Plc is headquartered in Wombwell, South Yorkshire. For further information, visit http://www.billington-holdings.plc.uk.        

  Chairman's Statement

Introduction

I am pleased to report that 2008 operating profit from continuing operations has increased to £5.0 million, an increase of 3.3% over the previous period and is slightly ahead of market expectations. The contribution from steel activities is at a similar level to the previous year on a higher level of sales, and there is a much improved contribution from Dosco, the Group's specialist engineering division.  

Results

Profit on ordinary activities from continuing operations before taxation increased by 8.5% to £5.2 million, which compares with £4.8 million for the same period last year. Profits after taxation from continuing operations increased by 6.2% to £3.5 million compared with £3.3 million for last year.  

Structural Steel

The Group's structural steel activities returned operating profits of £4.6 million compared with £4.6 million in the same period last year, which is broadly in line with our expectations. The structural steel activities comprise Billington Structures, Hollybank Engineering and easi-edge, the Group's safety solutions business.  

Billington Structures, the award winning structural steel business, traded slightly below expectations for the year, and in the latter part of the year started to be impacted by the difficulties in the construction sector, most notably in terms of margins. Billington Structures has a steady forward order book, particularly in relation to public sector work, although the margins available on all work are at a much reduced level.  

Hollybank is continuing to experience a good level of demand for its specialist steelwork for underground tunnels while easi-edge, the innovative safety solutions business, has performed in line with expectations for the year. The current levels of orders and enquiries suggest that both Hollybank and easi-edge should manage to continue to achieve a satisfactory level of activity despite the downturn in the construction sector generally.  

Specialist Engineering

The Group's specialist engineering activity consists of the Dosco business which designs and manufactures underground tunnelling equipment for the worldwide mineral extraction industry. I am pleased to report that this division has achieved an operating profit of £0.7 million for the year on revenue of £12.6 million, compared with £0.1 million on revenue of £11.8 million in 2007, an increase of 442.0% and 6.6% respectively.  The 2008 result has been achieved on an increased level of sales, the bulk of which fell in the latter part of the year such that the factory has been particularly busy with the completion of an order for four machines for India and a boom and shield machine for a civil engineering project at Heathrow. The 2007 results were impacted by a poor performance on a pipe conveyor contract, an activity in which the Group is no longer engaged. 

Group 

The Group figures reflect the costs not recharged direct to the trading divisions and the net finance income. The latter includes the interest earned on monies held on deposit and a charge for the pension scheme interest adjustment.

Discontinued Activities and Loss on Disposal

The profit from discontinued activities amounts to £27,000, which represents the profit after tax from non-core operations for the period up to the date of their disposal. The loss on disposal for the period reflects the profit referred to above together with an accounting adjustment amounting to £0.3 million to reflect the split of the Amco Group Pension Scheme and a taxation adjustment related thereto. In addition, a reserve adjustment amounting to £0.4 million has been made to reflect the split of the Amco ESOP. 

Pension Schemes and Total Recognised Gains

There were actuarial losses recognised in the pension schemes, which net of the taxation impact and the actuarial gains recognised on the discontinued pension liabilities netted down to a loss of £1.2 million. Having regard to the profit for the year of £3.3 million, this resulted in total recognised income for the year of £2.1 million.  

Earnings per Share 

Earnings per share from continuing activities increased by 6.3% to 30.4 pence compared with 28.6 pence for 2007.  

Dividend

I am delighted to announce that the Directors intend to pay a dividend of 7.75 pence per share on 1 July 2009 to shareholders on the register on 5 June 2009. This will make a total dividend proposed in respect of 2008 of 11.5 pence, which compares with 11.0 pence for 2007. 

Liquidity and Capital Resources

The Group had a cash balance of £4.0 million at 31 December 2008 compared with £6.0 million at 31 December 2007. During the year the Group received a total of £8.4 million proceeds (net of costs) from the sale of non-core operations and decided not to have a bank overdraft facility, but to instead use part of those monies to fund the working capital requirements of the Group. 

The cash outflow from operating activities for the year amounted to £8.9 million which is mainly attributable to an increase in work in progress and debtors during the latter part of the year. In particular both Dosco and Billington Structures saw a planned build up of both work in progress and debtors in the run up to the year end due to the timing of cash flows on a small number of large value contracts. The working capital requirement has returned to a more normal level since the year end such that the cash balances at the beginning of March amounted to approximately £11 million. 

Prospects

Current trading is challenging and it is difficult to forecast what the outcome will be for 2009 and 2010. The level of enquiries for Billington Structures has not been impacted to date, however the margins at which work can be won is at much lower levels than has been achieved in recent years.  

The Group has the benefit of a reasonable level of forward orders, particularly with main contractors in the public sector where Billington Structures has achieved preferred supplier status.  The impact of lower activity levels, combined with tighter margins for Billington Structures, gives rise to some uncertainty. However, we expect that the overall impact of this on the results for the current year will be partially mitigated by the performance of our specialist businesses in both the steel and engineering divisions where we expect to achieve normal levels of activity and profitability.  As one of the leading players in its markets, Billington possesses a strong balance sheet which provides a degree of security in the current difficult market conditions and also represents a solid platform for long-term growth.  

Peter K Hems

Executive Chairman

16 March 2009

  Operational Review 

Billington Holdings has made good progress in 2008, by focusing on customers' needs and by employing and developing talented people. The Group has continued to create innovative solutions and deliver them safely to the highest possible standards, through its four trading companies.  Over the year, management has performed a full strategic review and the subsidiaries' management team has been enhanced.   In addition, a new Group wide mission statement, together with a more open communication and management style, was introduced.

Health, Safety and the Environment

The underpinning ethos of the Group is to provide and develop health, safety and environmental standards and always put these first.

As always, there has been considerable time and effort put in over the last year, by both management and the workforce, to continually improve health and safety standards throughout the Group and the supply chain. It was pleasing to note that in Billington Structures, easi-edge and Hollybank no reportable accidents were experienced by their respective workforces, against seven such accidents in 2007.

Certification, verified by external audits, to OHSAS 18001 was reconfirmed at Billington Structures and easi-edge also achieved this high standard. All Group companies operate an integrated quality and environmental management system, which is externally certified to ISO 9001 and ISO 14001.

Billington Structures

In excess of 25,000 tonnes of fabricated steel was supplied and erected during 2008 (compared with 23,000 tonnes in 2007). The wide variety of UK projects included:

	The complex rebuilding of the Royal Shakespeare Companies Stratford upon Avon landmark theatre.
	A major extension to the Eldon Square shopping centre in Newcastle.
	Merchant Square, a landmark multi-storey project in Paddington, London.
	Academies and or schools in Liverpool, Edinburgh, Manchester, Milton Keynes, Bridlington and Bradford.
	Multi-storey structure on Park Lane London, where for the first time ever, a bi-steel core fabricated in our Bristol factory was used to support a tower crane.
	Medium rise structures in Milton Keynes and Reading.
	Various ongoing involvements with Debut's military SLAM schemes now in year 6 of a 10 year programme.

Recognising early the potential for a slowdown in the sector, the Group helped combat this and also better support our customer base with appropriate increases in the staffing levels of the Group's Commercial Team.  These included an additional Business Development Manager in London to complement the team in Barnsley and Bristol. A new position of Marketing Manager was also successfully filled.

During 2008 the Group introduced lean manufacturing principles at the Wombwell factory in an effort to understand and resolve some longstanding factory flow issues and have seen some positive results to date.

The Group remains an approved / preferred partner with many of the construction industry's blue chip contractors including Balfour Beatty, Bovis, Kier, Laing O'Rourke, MACE, Shepherd and Wates.

Dosco Overseas Engineering

Dosco's focus has remained on generating most of its business from export markets. However, it is pleasing to note that 2008 saw a successful return to the civil tunnelling market with a 'Boom in Shield' machine being supplied to Ferrovial Agroman Airports (UK) Ltd for the Heathrow terminal 5 project.  In addition to this project Dosco successfully completed major projects for China and India, continued to service its major UK based customers, and generated spares sales in some twelve different countries around the world. The development and manufacture of a continuous miner should also allow new markets to be targeted.

A full review of the business processes has taken place, the benefits of which should enable future trading activities to be better managed and controlled.

easi-edge

easi-edge continued its progress as the number one supplier of edge protection systems to the UK steel contracting industry, and its distinctive barriers could be seen on structures throughout the UK.  The introduction of new products, notably 'Core Safe', to protect falls in lift shafts has opened a new and developing customer base.  The year also marked easi-edge's entry into the concrete frame sector.

With an ever increasing workforce, a new office complex has been developed at Tuxford, together with associated training and exhibition facilities.  Customers' needs to demonstrate compliance and product familiarity have provided a further new revenue stream through operative and management training.

Hollybank Engineering

As the major supplier of choice to the UK underground coal mining industry, Hollybank enjoyed a significant improvement in demand for its products during 2008.  Diversification into the civil engineering sector allowed steelwork to be supplied to a number of projects including a major flood alleviation scheme in Bristol.  Further improvements have been made to the facility and to the manufacturing process.

Training and Development

Training at all levels is encouraged and secures the Group's future.  We have continued to develop and extend the Billington health and safety culture throughout the Group.  The main Board undertook, with external facilitation, a strategic review and began cascading this through the management team and all employees using 'Team Briefs' and professionally produced handouts. 

Involvement in our respective Trade Associations BCSA, EPF and ABMEC was encouraged, together with links to Universities, Professional Institutions, Chambers of Commerce and the Local Communities. 

Outlook

The Group's strong trading activity during 2008 has allowed Billington Holdings to make a significant step forward in developing and preparing the 'new' Group and its management team to tackle, collectively and individually, the economic challenges that began to affect all spheres of operation during the second half of the year.  

The Group is entering 2009 with a reasonably strong order book across its distinctive divisions, albeit down on the record level of 2008 (£37 million compared with £50 million).  Public sector activities in the form of schools and hospitals dominate recent structural steelwork order intakes. Further Dosco machine sales to India, Turkey, Mexico and the Dominican Republic are also in the pipeline of work. 

The Group is now better placed than ever to strategically and financially sustain its long-term growth.

Steve Fareham

Chief Executive

16 March 2009

  Financial Review

Results for the Year

The profit before tax for the year from continuing operations was £5.2 million, which was £0.4 million, 8.5%, higher than in 2007. This was achieved on revenue of £78.3 million, 11.6% higher than 2007.

Profit after tax on continuing operations was £3.5 million. This was reduced by £0.2 million because of losses generated from the discontinued businesses, mostly from the pension scheme, making the profit attributable to the equity holders £3.3 million, which compared with a loss of £4.2 million in 2007.

Continuing and Discontinued Operations

Nearly all the costs associated with the disposal of a number of Group companies were accounted for in the accounts for 2007. However the transaction was not completed until 11 April 2008 and there was a small trading profit and a loss on disposal shown against discontinued operations in 2008. 

Continuing Operations

Structural Steel

Revenue was substantially higher at £65.7 million, compared with £58.3 million in 2007, but operating profit was marginally lower (£4.58 million compared with £4.59 million). The results reflect the tougher conditions experienced in the market for structural steel, especially in the latter part of the year. Good progress was made in the safety solutions business, easi-edge, both in developing products and in strengthening the team. The underground arch business, Hollybank, also continued successfully to serve its niche customers in the coal mining and civil engineering industries.

Capital expenditure was relatively low; there were no purchases of major items of plant, nor was there a need for a large investment in additional safety barriers for easi-edge.

Engineering

The Engineering interests of the Group are represented by its Dosco subsidiary. This business enjoyed its most profitable year for a long time, making £0.73 million profit on revenue of £12.6 million. This was achieved partly by a modest 6.6% increase in revenue (up £0.6 million), but mainly by avoiding problems concerning exchange rate fluctuations and losses on contracts that have handicapped results in previous years.

Discontinued Operations

Results for the period from the start of the year to the completion of the sale transaction, on 11 April 2008, have been included. In that period these businesses just bettered breakeven on revenue of £21.8 million, as explained in the interim accounts.

Taxation

The tax charge in the year on continuing operations of £1.7 million equated to an effective rate of 32.5% on the Group's profits (2007: 31.1%).

Profit and Dividends per Share

Earnings per share from continuing operations were 30.4 pence in 2008, compared with 28.6 pence per share in 2007.

During the year a final dividend of 7.5 pence per share was paid in respect of the 2007 results and an interim dividend of 3.75 pence per share was paid in respect of the results for 2008.

A final dividend of 7.75 pence per share is proposed in respect of the 2008 results, which would bring the total dividend for 2008 to 11.5 pence per share. This compares with the total dividend in respect of the 2007 results of 11 pence per share.

Cash Flow

The Group had no borrowings at the balance sheet date, but had cash balances of £4.0 million. There had been a net decrease of cash balances of £2.1 million during the year. Net proceeds from the sale of the discontinued operations amounted to £8.4 million, but inventories and work-in-progress increased by £5.2 million and receivables grew by £7.3 million. Most of this increase had occurred within Dosco, the bulk of whose sales had fallen into December and which also had a number of machines on order for the first few months of 2009.  The cash position has improved substantially since the year end. The Group is well placed to fund organic growth and niche acquisitions from its own resources, as and when opportunities arise.  

Pension Schemes

The deficit on the Group's pension schemes increased by £1.1 million to £5.1 million after allowing for deferred tax. On a before tax basis the deficit increased by £1.5 million. This was mainly caused by the £2.0 million net difference between the actuarial loss on the schemes' assets of £8.7 million and the actuarial gain on the schemes' liabilities of £6.7 million partly offset by additional contributions to the Dosco scheme of £0.8 million. These contributions were in accordance with a recovery plan agreed with the trustees, following a triennial revaluation of the scheme. 

The assets and liabilities of the Amco defined benefit scheme were divided between the continuing and discontinued operations as a consequence of the sale. The scheme for the continuing operations has been renamed the Billington Final Salary Scheme. A full actuarial valuation of this scheme is currently taking place. 

Peter Hart

Financial Director

16 March 2009

  BILLINGTON HOLDINGS PLC

Consolidated income statement for the year ended 31st December 2008

		2008		2007
		£'000	£'000	£'000	£'000
Revenue			77,275		69,831
Increase in work in progress			1,030		317
			78,305		70,148
Raw materials and consumables		52,179		46,649
Other external charges		1,936		1,125
Staff costs		16,752		13,415
Depreciation		1,390		1,495
Other operating charges		1,044		2,621
			(73,301)		(65,305)
Group operating profit			5,004		4,843
Finance cost			(1)		(39)
Finance income			431		6
Other finance cost			(217)		0
Profit before tax			5,217		4,810
Tax			(1,696)		(1,496)
Profit for the year from continuing operations			3,521		3,314
Discontinued operations
Profit for the year from discontinued operations			27		1,130
Loss on disposal of discontinued operations			(279)		0
Loss on measurement to fair value less costs to sell of discontinued operations			0		(8,624)
Profit/(loss) for the year attributable to equity holders of the parent company			3,269		(4,180)
Earnings per share (basic and diluted) from continuing operations			30.4p		28.6p
Earnings per share (basic and diluted) from discontinued operations			0.2p		9.7p
Earnings/(loss) per share (basic and diluted) from continuing and discontinued operations			28.2p		(36.0)p

  BILLINGTON HOLDINGS PLC

Consolidated statement of recognised income and expense for the year ended 31st December 2008

		2008	2007
Actuarial (loss)/gain recognised in the pension schemes - continuing		£'000 (1,994)	£'000 5,043
Actuarial (loss)/gain recognised in the pension schemes - discontinued		297	0
Movement on deferred tax relating to pension liability		414	(2,114)
Current tax relating to pension liability		131	489
Net (expense)/income recognised directly in equity		(1,152)	3,418
Profit/(loss) for the year		3,269	(4,180)
Total recognised income and expense in the year attributable to equity holders of the parent company		2,117	(762)

  BILLINGTON HOLDINGS PLC

Consolidated balance sheet as at 31st December 2008

		2008		2007
		£'000	£'000	£'000	£'000
Assets
Non current assets
Property, plant and equipment			10,234		10,920
Deferred tax assets			2,129		1,748
Total non current assets			12,363		12,668
Current assets
Inventories and work in progress		13,623		8,385
Trade and other receivables		12,149		4,812
Cash and cash equivalents		3,979		6,038
Total current assets			29,751		19,235
Assets included in disposal group classified as held for sale			0		57,224
Total assets			42,114		89,127
Liabilities
Current liabilities
Trade and other payables		(19,212)		(19,252)
Current tax payable		(276)		(691)
Total current liabilities			(19,488)		(19,943)
Liabilities included in disposal group classified as held for sale			0		(48,824)
Non current liabilities
Pension liabilities		(7,083)		(5,603)
Total non current liabilities			(7,083)		(5,603)
Total liabilities			(26,571)		(74,370)
Net assets			15,543		14,757
Equity
Called up share capital			1,293		1,293
Share premium			1,864		1,864
Capital redemption reserve			132		132
Other reserve			(899)		(1,310)
Accumulated profits			13,153		12,778
Total equity			15,543		14,757

  BILLINGTON HOLDINGS PLC

Consolidated cash flow statement for the year ended 31st December 2008

		2008	2007
		£'000	£'000
Cash flow from operating activities
Group profit/(loss) after tax		3,269	(4,180)
Adjustments for:
Profits from joint ventures		0	(5)
Depreciation on property, plant and equipment		1,390	3,432
Difference between pension charge and cash   contributions		(702)	(1,490)
Profit on sale of property, plant and equipment		(19)	(122)
Taxation expense recognised in income statement		1,696	1,263
Taxation paid		(1,958)	(1,475)
Finance income		(213)	(55)
Increase in inventories and work in progress		(5,238)	(5,505)
Increase in trade and other receivables		(7,337)	(2,070)
(Decrease)/increase in trade and other payables		(40)	9,090
Loss on disposal of discontinued operations		279	0
Loss on measurement to fair value of disposal group		0	8,624
Net cash flow from operating activities		(8,873)	7,507
Cash flows from investing activities
Distributions from joint ventures		0	192
Net interest received/(paid)		430	(84)
Purchase of property, plant and equipment		(938)	(1,249)
Proceeds from sale of property, plant and equipment		253	438
Net cash inflow from disposal of discontinued operations		8,400	0
Net cash flow from investing activities		8,145	(703)
Cash flows from financing activities
Equity dividends paid		(1,305)	(1,102)
Proceeds of bank and other loans		0	7,153
Repayment of bank and other loans		0	(3,187)
Capital element of hire purchase payments		0	(1,786)
Employee Share Ownership Plan share purchases		(34)	(458)
Employee Share Ownership Plan share sales		8	17
Net cash flow from financing activities		(1,331)	637
Net (decrease)/increase in cash and cash equivalents		(2,059)	7,441
Cash and cash equivalents at beginning of period		6,038	1,950
Cash and cash equivalents at end of period		3,979	9,391
Cash and cash equivalents of continuing Group		3,979	6,038
Included within the disposal group		0	3,353
Total cash and cash equivalents		3,979	9,391

   Notes:

• Basis of preparation

The financial information in this preliminary announcement has been prepared in accordance with accounting policies which are based on the International Financial Reporting Standards (IFRSs) as adopted by the European Union and in issue and in effect at 31st December 2008. 

2.   Accounts

The summary accounts set out above do not constitute statutory accounts as defined by Section 240 of the Companies Act 1985. The summarised consolidated balance sheet at 31 December 2008, the summarised consolidated income statement, the summarised consolidated cash flow statement and the summarised statement of recognised income and expense for the year then ended have been extracted from the Group's 2008 statutory financial statements upon which the auditors' opinion is unqualified, and which did not contain a statement under either sections 237 (2) or 237 (3) of the Companies Act 1985. The statutory financial statements for the year ended 31 December 2008 were approved by the directors on 16 March 2009, but have not yet been delivered to the Registrar of Companies.

3.   Earnings per share

Earnings per share from continuing operations is calculated by dividing the profit for the year from continuing operations of £3,521,000 (2007 - £3,314,000) by 11,588,408 (2007 - 11,598,808) fully paid ordinary shares, being the weighted average number of ordinary shares in issue during the year, excluding those held in the ESOP Trust.

Earnings per share from discontinued operations is calculated by dividing the profit for the year from discontinued operations of £27,000 (2007 - £1,130,000) by 11,588,408 (2007 - 11,598,808) fully paid ordinary shares.

Earnings per share from continuing and discontinued operations is calculated by dividing the profit for the year from continuing and discontinued operations of £3,269,000 (2007 - loss of £4,180,000) by 11,588,408 (2007 - 11,598,808) fully paid ordinary shares.

There is no impact on a full dilution of the earnings per share calculation as all shares are in issue. Options are in respect of shares in issue held by the ESOP Trust.

4.   Report and accounts and AGM

The Annual Report and Accounts for the year ended 31st December 2008 will be posted to shareholders by the end of April 2009 and will be available on the company's website: www.billington-holdings.plc.uk

.

The Annual General Meeting will be held on 21 May 2009 at 11am at Billington Holdings Plc, Steel House, Barnsley Road, Wombwell, South Yorkshire S73 8DS.

5.  Segmental information

The continuing operations of Billington Holdings Plc operate in two segments: - Structural Steel and Engineering. The Structural Steel segment includes the activities of Billington Structures Ltd, Hollybank Engineering Company Ltd and easi-edge Ltd.  The operations of Dosco Overseas Engineering Ltd are included within the Engineering segment. The Group activities comprise services and assets provided to Group companies and a small element of external property rentals and management charges. All assets of the continuing Group reside in the UK.

	Structural Steel	Engineering	Group	Continuing Activities	Discontinued Activities
	£'000	£'000	£'000	£'000	£'000
Year ended 31st December 2008
Revenue
External sales	65,748	12,557	0	78,305	21,798
Segmental result
Operating profit/(loss)	4,576	710	(282)	5,004	(74)
Net finance income	0	18	195	213	112
Profit/(loss) before tax	4,576	728	(87)	5,217	38
Tax				(1,696)	(11)
Profit for the year before loss on disposal of discontinued operations				3,521	27
Assets and liabilities
Segment assets	14,007	14,184	13,923	42,114	0
Segment liabilities	(13,443)	(5,236)	(7,892)	(26,571)	0
Net assets	564	8,948	6,031	15,543	0
Other information
Capital expenditure	658	29	251	938	500
Depreciation	1,255	32	103	1,390	685

	Structural Steel	Engineering	Group	Continuing Activities	Discontinued Activities
	£'000	£'000	£'000	£'000	£'000
Year ended 31st December 2007
Revenue
External sales	58,270	11,781	97	70,148	81,370
Segmental result
Operating profit/(loss)	4,593	131	119	4,843	803
Share of results of joint ventures				0	5
Net finance income			(33)	(33)	89
Profit/(loss) before tax	4,593	131	86	4,810	897
Tax				(1,496)	233
Profit for the year before loss on disposal of discontinued operations				3,314	1,130
Assets and liabilities
Segment assets	12,312	3,923	8,581	24,816	42,557
Unallocated assets				7,087	13,604
Investment in joint ventures				0	1,063
Total assets	12,312	3,923	8,581	31,903	57,224
Segment liabilities	(14,379)	(1,068)	(1,275)	(16,722)	(23,405)
Unallocated liabilities				(8,824)	(25,419)
Total liabilities	(14,379)	(1,068)	(1,275)	(25,546)	(48,824)
Net assets	(2,067)	2,855	7,306	6,357	8,400
Other information
Capital expenditure	863	8	7	878	2,013
Depreciation	1,398	64	33	1,495	1,937

6.    Discontinued activities

On 11th April 2008 the non-core businesses were sold to a NEWCO, Amco Group Limited. Amco Group Limited is owned by Endless LLP, a venture capital business, and members of a management team led by Messrs I Swire and D M Jackson (former directors of Amco Corporation Plc). The non-core businesses consist of Amalgamated Construction Ltd, Amco Developments Limited, Amco Plastics Limited and associated subsidiaries together with a number of dormant companies. The 'held for sale' date is deemed to be 31st December 2007. As set out in the announcement on 14th April 2008, the rationale of the transaction has been to enable the Group to have focus and to develop a strategy around the core activity of its structural steel business. Further details were set out in the Chairman's Statement to the December 2007 Group accounts.

 

END

 

 

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