Final Results - Year Ended 31 December 1999

Seascope Shipping Holdings PLC 13 April 2000 Creditable performance in difficult trading conditions Final dividend maintained Seascope Shipping Holdings PLC today announced preliminary results for the year ended 31 December 1999. Seascope provides specialised broking and consultancy services to the international shipowning, shipbuilding and oil industries. In a year which was dominated by the impact of the OPEC production cuts in two of the company's business streams the results are in line with market expectations and the Board is recommending a final dividend of 10.0p (1998: 10.0p) per ordinary share, payable on 23 June 2000 to shareholders on the register on 2 May 2000, making a total for the year of 15.0p (1998: 15.0p). HIGHLIGHTS * Turnover up 9.9% to £10.388 million (1998: £9.454 million) * Pre-tax profit of £2.003 million (1998: £3.220 million) * Final dividend of 10.0p (1998: 10.0p) * 1999 acquisitions of Wavespec and GFL fully integrated Tom Young, Chairman, said: 'This was a solid performance in a year that, as we warned, proved to be difficult for the company and its clients. OPEC production cuts and their effects on the outlook for oil prices in both our tanker and offshore businesses underlined the validity of our strategy to broaden our earnings base into fee earning shipping services businesses. 'The spot tanker market has started the year well as oil production has increased and as oil companies increasingly focus on the use of double hull vessels following the Erika disaster at the end of last year. Tanker sale and purchase business has also been stimulated by possible EU double hull legislation. 'We expect a slow recovery in offshore markets which may strengthen later in the year if oil prices stabilise at around the $20 per barrel levels. 'We feel that whilst 1999 was disappointing for shipping as a whole, in 2000 we shall participate in markets enjoying varying degrees of recovery. In this respect, it is encouraging to note some of the quoted tanker owners' improved performance with their share prices close to 12 month highs. In conclusion, with the values of tankers and their charter rates climbing we can only be optimistic about the outlook for the current year.' For further information, contact: Tom Young Chairman Seascope Shipping Holdings plc 0207 903 2600 Michael Henman/Clare Abbot Grandfield 0207 417 4170 PRELIMINARY ANNOUNCEMENT CHAIRMANS STATEMENT A creditable performance in difficult trading conditions enables the Directors to recommend a maintained final Dividend of 10p per share. The results for the year ended 31 December 1999 show net profit before taxation at £2.003 million (1998: £3.220 million) on increased turnover of £10.388 million (1998: £9.454 million). The Directors believe the above result to be a creditable performance in a difficult trading year when two of our major markets were negatively affected by movements in oil prices world-wide. The increase in turnover mainly relates to the activities of Wavespec, the technical services group purchased by the Company at the start of 1999. The increase in operating expenses relates mainly to the costs of Wavespec and GFL, the new additions to the Group in 1999. Earnings per share fully diluted at 18.16p (1998: 29.53p) reflect the above results. Cash Balances at the year end amounted to £1.4 million (1998: £2.9 million), the reduction reflecting both the lower profits and the initial cash consideration payments made on the acquisitions concluded during the year. In view of the above results which have been achieved in difficult market conditions and the general outlook for the current year, the Directors are pleased to recommend an unchanged final dividend of 10.00p (1998: 10.00p) per ordinary share payable on the 23 June 2000 to shareholders on the register at 2 May 2000. This final dividend added to the interim dividend will make a total dividend of 15.00p per share, unchanged from 1998. Operational Review of 1999 This was the 'year of the unexpected' for us and for the majority of our clients in that we all suffered from the effective adherence to Spring 1999 OPEC production cuts of 1.7 million barrels per day (6.5% of overall production). This resulted in a substantial fall off in demand for tankers. The uncertain climate also had a slowing down effect on tanker sale transactions. Offshore oil exploration had already eased back resulting in a strong decline in North Sea rig support vessel utilisation. As the year progressed, it became apparent that all sectors of the shipping markets were going to continue to suffer from weak freight rates in the short term and brokerage commissions would be similarly affected. In fact our exposure was eased to some extent by long term charter income and the delivery of newbuildings. However, it did again remind us of the need to further expand our activities into non- cyclical marine service business. Offshore Oil rigs world-wide were laid off as producers were uncertain about the rising oil price being sustained. This reduction in drilling inevitably had a negative effect on rig support vessel utilisation and thereby spot and term rates. Newbuilding deliveries and long term charters eased some of our exposure to the weak markets. Sale and Purchase We enjoyed a significant increase in transaction turnover as our enlarged team of brokers lifted our market share. High value double hull tanker sales particularly assisted these activities. New building contracting work was comparatively slow for us as our clients mostly were inactive. Tanker Chartering. From the Spring 1999 OPEC production cut back, all tankers suffered, particularly weak spot freight but, despite these conditions, developments were taking place which should bode well for the future. Economic recovery in the Far East stimulated increased oil consumption, poor freight rates drove a large number of elderly tankers to scrap and then in December the world watched with dismay the effect and potential danger of operating an old single hull tanker when 'ERIKA' broke up in the Bay of Biscay spilling large quantities of fuel oil along the French coast. Wavespec Having secured increased work in supervising ship construction, we expanded the team of engineers which will contribute to future earnings as their services become better known in the international shipping community. Capital Services The acquisition of GFL and its integration into our existing ship financing team matured in the latter part of the year and we are confident that in the future its services will add significantly to our profits as the business grows. Outlook for 2000 The tanker spot markets and period enquiry are vibrant after a lifting of oil production quotas in the year and - post the 'ERIKA' event - the major oil companies desire to focus on the utilisation of double hull vessels or the later generation of single hull vessels. The need to replenish rundown oil inventories is expected to keep freight levels high through the summer and into the winter months. An example of the change is that a VLCC trading AG/West in 1999 earnt $1.7m for the voyage and today it's up to around $3.3m. Tanker sale and purchase enquiry is active, with an emphasis on double hull tankers or newbuilding tankers, especially as it appears that the European Union shortly will adopt similar mandatory legislation to the USA, phasing out old single hull tankers from its waters. Some recovery in dry cargo freights has also stimulated buyers, so we envisage a busy year in all sectors of ship sale transactions. We expect recovery of rates in the Offshore markets to be slow, especially as the volume of new construction and pipe laying work for this year is well below normal. However, if the oil companies can feel confident of a sustainable North Sea oil price in the area of $20 per barrel, then we expect overall activity to pick up later in the year. As part of the policy of broadening our earnings base, we were pleased to announce during the year the acquisition of GFL and welcome them all into the Seascope team. It remains an important objective for us to continue to broaden our income streams through corporate acquisition or other means. We recognise that the Internet revolution will change the way we do some of our business and provide new opportunities in the future. However, our activities in this area are aimed at delivering long-term value and will continue to be developed during 2000. We feel that whilst 1999 was disappointing for shipping as a whole, in 2000 we shall participate in markets enjoying varying degrees of recovery. In this respect, it is encouraging to note some of the quoted tanker owners' improved performance with their share prices close to 12 month highs. In conclusion, with the values of tankers and their charter rates climbing we can only be optimistic about the outlook for the current year - analysts are even speculating about a major freight rate spike in the next 18 months. T.D.H. Young Chairman SEASCOPE SHIPPING HOLDINGS PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 1999 1999 1998 £'000 £'000 Turnover - continuing operations 9,021 9,454 - acquisitions 1,367 - --------- -------- 10,388 9,454 Operating expenses (8,452) (6,317) -------- -------- Operating profit - continuing operations 1,979 3,137 - acquisitions (43) - -------- -------- 1,936 3,137 Interest receivable and similar income 89 116 Interest payable and similar charges (22) (33) -------- -------- Profit on ordinary activities before taxation 2,003 3,220 Taxation on profit on ordinary activities (666) (1,082) -------- -------- Profit on ordinary activities after taxation 1,337 2,138 Dividends (995) (930) -------- -------- Retained profit for the year 342 1,208 Accumulated (loss) brought forward (1,612) (2,820) -------- -------- Retained (loss) carried forward (1,270) (1,612) ===== ===== Earnings per ordinary share Basic 21.03p 34.49p Earnings per ordinary share Fully Diluted 18.16p 29.53p All activities relate to continuing operations. The 1999 basic earnings per share on the net basis figure is based on the profit on ordinary activities after taxation and after deduction of dividends and other apporiations in respect of non equity shares namely £1,336,441 (1998: £2,137,887) and on the weighted average of shares in issue during the year. The weighted average number of shares in issue is 6,356,098 (1998: 6,198,620) being the weighted average number of shares in issue and ranking for dividend during the year. The fully diluted earnings per share figure is based on the weighted average number of shares after taking into account the share options issued but remaining unexercised during the period of 7,361,026 (1998: 7,240,690). The group has no recognised gains or losses other than those included in the consolidated profit and loss account above and therefore no separate statement of total recognised gains and losses has been presented. There is no material difference between the profit on ordinary activities before taxation and the retained profit for the year stated above, and their historical cost equivalents. SEASCOPE SHIPPING HOLDINGS PLC CONSOLIDATED BALANCE SHEET AS AT 31ST DECEMBER 1999 1999 1998 £'000 £'000 Fixed Assets Intangible fixed assets: Goodwill 2,159 63 Tangible assets 919 509 Investments 734 620 ------- ------- 3,812 1,192 Current Assets Debtors 1,652 2,285 Cash at bank and in hand 1,416 2,861 ------- -------- 3,068 5,146 Creditors: amounts falling due within one year (2,194) (2,821) -------- -------- Net current assets/(liabilities) 874 2,325 -------- ------- Total assets less current liabilities 4,686 3,517 Creditors: amounts falling due after more than one year (150) (235) -------- -------- Net Assets 4,536 3,282 ===== ===== Capital and Reserves Called up share capital 682 627 Capital Redemption Reserve 396 396 Share Premium 4,728 3,871 Profit and Loss account (1,270) (1,612) ---------- --------- Total equity shareholders' funds 4,536 3,282 ====== ====== SEASCOPE SHIPPING HOLDINGS PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 1999 1999 1998 £'000 £'000 Net cash inflow from operating activities 2,857 2,267 Returns on investments and servicing of finance Interest received 91 114 Interest paid (2) - Interest element of finance lease rental payments (16) (32) ------- ------- Net cash inflow from returns on investments and servicing of finance 73 82 Taxation UK Corporation tax paid (1,298) (1,089) Capital expenditure and financial investment Payments to acquire tangible fixed assets (732) (83) Receipts from sale of tangible fixed assets - 3 ------- ------- Net cash (outflow) from investing activities (732) (80) Acquisition and disposals Purchase of subsidiary (1,462) (71) Cash acquired with subsidiary 184 3 -------- ------- Net cash (outflow) for acquisitions (1,278) (68) Equity dividends paid (940) (856) --------- -------- Net cash (outflow)/inflow before financing (1,318) 256 Financing Payment of principal under finance lease (127) (154) -------- ------- Net cash (outflow) from financing (127) (154) -------- -------- (Decrease)/Increase in cash (1,445) 102 ===== ===== Reconciliation of movement in shareholders' funds 1999 1998 £'000 £'000 Retained profit for the year 342 1,208 Issue of ordinary share capital including premium 912 - -------- -------- Net addition to shareholders' funds 1,254 1,208 Opening shareholders' funds 3,282 2,074 -------- -------- Closing shareholders' funds 4,536 3,282 ===== ===== NOTES 1. The financial information set out above does not constitute the Company's statutory accounts for the years ended 31st December 1998 and 1999. The financial information in respect of 1999 is unaudited. Statutory accounts for the year ended 31 December 1998, on which the auditors gave an unqualified report pursuant to section 235 of the Companies Act 1985, have been filed with the Registrar of Companies. 2. The 1999 Annual Report and Accounts (together with the Auditors Report) will be posted to shareholders during the week commencing 1 May 2000. 3. The accounting policies are consistent with the 1998 statutory accounts in all material respects.

Companies

Braemar (BMS)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today