Interim Results

Eleco PLC 05 March 2003 5 March 2003 ELECO PLC INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2002 Good progress in difficult markets Profit before tax up 52% Enquiries to: John Ketteley, Executive Chairman Tel: 01920 443 830 Eleco plc john@ketteley.com David Dannhauser, Finance Director Tel: 01920 443 830 Eleco plc mail@elecoplc.co.uk Tarquin Edwards/Simon Rothschild Tel: 020 7929 5599 Holborn tarquin.edwards@holbornpr.co.uk simon.rothschild@holbornpr.co.uk Change 6 months ended 6 months ended 31 December 2002 31 December 2001 Turnover Up 28 % £18.17m £14.21m Profit Before Tax Up 52 % £0.87m £0.57m Earnings per Share Up 31% 1.37p 1.04p Dividend per Share Up 7% 0.375p 0.35p Dividend Cover 3.5x 3.0x • Strong cash generation continues and net cash at 31 December 2002 was £0.74m, compared with net borrowings at 31 December 2001 of £1.51m Executive Chairman, John Ketteley, said: 'In the six months ended 31 December 2002, we continued to offer high quality, innovative products to the building industry together with excellent construction software programs and state-of-the-art internet solutions. We also made selective investments in new products and facilities, while having regard to the need to maintain a sound financial base.' 'The recent acquisition of Consultec has given us critical mass in the construction software market and strengthened the management of our software interests. These actions have enabled us to make progress in these difficult market conditions and we will continue to adopt the same approach to our business in the months ahead.' CHAIRMAN'S STATEMENT Profits before tax in the six months ended 31 December 2002 at £871,000 were 52 per cent. higher than those of the first half last year and cash flow was again strong. Turnover in the six months ended 31 December 2002 amounted to £18,167,000 (2001: £14,210,000) an increase of 29 per cent. Turnover of Eleco Building Systems was £17,659,000 (2001: £13,566,000), an increase of 30 per cent., while turnover of Eleco Software Systems was lower at £508,000 (2001: £644,000). Operating profits amounted to £937,000 (2001: £653,000). Eleco Building Systems contributed £1,487,000 (2001: £896,000), 66 per cent. ahead of the same period last year. Eleco Software Systems incurred a loss of £160,000 (2001: loss £17,000). Interest charges were further reduced to £29,000 (2001: £81,000) and profits on ordinary activities before tax for the six months were £871,000 (2001: £572,000). Profits after tax amounted to £572,000 (2001: £428,000), giving earnings per share equivalent to 1.37p (2001: 1.04p per share). As a result of the strong operating cash flow, net cash balances increased during the period by £278,000 despite expenditure on tangible and intangible assets and other investments in the period amounting to £1,271,000. Net cash at 31 December 2002 amounted to £742,000 (2001: net borrowings £1,509,000). The Board has declared an interim dividend of 0.375p per share (2001: 0.35p), which will be payable on 4 April 2003 to shareholders on the Register on 24 March 2003. The interim dividend is covered 3.5 times by earnings. Eleco Building Systems Structural Precast Concrete Bell & Webster Concrete successfully completed the contract, which was well advanced at the last financial year-end, for the provision of 1,601 Fastbuild(R) rooms for student accommodation to the University of Hertfordshire. Good progress was made on the contract for the supply of student accommodation to the University of Essex. Further opportunities are currently being progressed for the supply of Fastbuild(R) rooms for projects in the higher education sector and for the Ministry of Defence. Considerable interest was generated by Bell & Webster Concrete in its new precast railway platform products at the Railtex Exhibition in November 2002 and I am pleased to report that it has subsequently received an order for approximately £750,000. Demand for retaining walls and ground beams were somewhat lower and orders for terracing were affected by the financial problems currently being experienced by some football clubs. However, overall Bell & Webster Concrete achieved an increase of 110% on sales in the same period last year. A further expansion of product storage facilities at the Grantham site was also completed in the period. Roofing, Cladding and Panels Although SpeedDeck Building Systems processed a similar number of roofing orders in the period, the lack of larger orders, reflecting activity in the commercial and industrial building sector, resulted in turnover from roofing being 26% below that of the corresponding period last year and in significantly reduced profits. This shortfall was partially offset by increased sales of Vitesse(R) composite wall panels and the number of projects for which Vitesse(R) was specified showed an encouraging increase in the period. During the period under review, an additional mobile rollformer was purchased to produce SpeedZip(R), a new standing seam roofing profile to complement the existing SpeedDeck(R) secret-fix product. I am pleased to report that the first SpeedZip(R) orders have already been delivered. The introduction of SpeedZip(R) into the product range should improve SpeedDeck Building Systems' ability to generate business in the continuing difficult conditions in the roofing market. I am pleased to report that Downer Cladding Systems made an excellent contribution in the period under review and continues the good progress made following its acquisition in May 2002. The restructuring of the Stramit Industries has delivered the benefits anticipated in my last statement and Stramit Industries returned to profit in the period and at a higher level than the corresponding period last year, despite a small decline in sales. Timber Engineering Gang-Nail Systems produced an excellent performance in the first six months. The Gang-Nail Roof and Truss software is now being used by an increasing proportion of customers and is currently being evaluated by an increasing number of prospective customers. Ecojoist(R) continues to make excellent progress, increasing the number of customers using the system and record sales were achieved in the period. Gang-Nail Systems continued to benefit from the manufacture of connector plates supplied to customers of Eleco Bauprodukte, although the results of the latter itself continued to be adversely affected by intense competition in the depressed German market. International Truss Systems made an excellent contribution against the background of a generally buoyant South African market. The move to larger, more modern facilities with its own warehousing has been an important factor in enabling International Truss Systems to service an increase in sales of 45% over the corresponding period last year. Eleco Software Systems Construction Software MBA Computing experienced difficult trading conditions and incurred an increased loss, following the decision of a potential major overseas customer not to place an order due to its uncertainties about software developments in the US market. However, software solutions provided by MBA Computing to Bell & Webster Concrete and Gang-Nail Systems contributed to their success. At the beginning of February 2003, Consultec became part of the Group. I consider that the prospects for MBA Computing's business will improve as it gains access to Consultec's construction software portfolio in the months ahead. Internet Solutions Forma Communications also produced disappointing results. A number of significant projects came to an end and replacements were not started. However, careful control of costs contained its loss. A notable success was the winning of a mandate from the Ford Motor Company to develop the website for its Centre for Manufacturing and Engineering Excellence, against stiff competition. In February 2003, the Group acquired Leonardo Internet, a provider of integrated web and print solutions. I anticipate that the prospects for both businesses will be enhanced by the exploitation of the synergies between them. Outlook We continue to offer high quality, innovative products to the building industry together with excellent construction software programs and state-of-the-art internet solutions. We have also made selective investments in new products and facilities, while having regard to the need in these difficult markets to maintain a sound financial base. The recent acquisition of Consultec has added critical mass in the construction software market and strengthened the management of our software interests. These actions have enabled us to make progress during the first six months of this financial year and we will continue to adopt the same approach to our business in the months ahead. John Ketteley Executive Chairman Eleco plc Consolidated profit and loss account (Unaudited) (Audited) Half year ended Year ended 31 December 30 June 2002 2001 2002 £'000 £'000 £'000 Turnover Continuing operations 18,167 14,210 32,873 Operating profit Continuing operations 937 653 1,878 Loss on disposal of tangible assets (37) - - Profit on ordinary activities 900 653 1,878 before interest Net interest payable (29) (81) (142) Profit on ordinary activities 871 572 1,736 before tax Tax on ordinary activities (299) (144) (497) Profit on ordinary activities after 572 428 1,239 tax Dividend on ordinary shares (Note (163) (142) (477) 2) Retained profit 409 286 762 Dividends per share 0.375p 0.35p 1.00p Earnings per share (Note 3) 1.4p 1.0p 3.0p Diluted earnings per share (Note 4) 1.4p 1.0p 3.0p Notes 1. The interim results have been prepared on the basis of the accounting policies adopted for the year ended 30 June 2002, as set out in the Company's Annual Report and Accounts. The interim results do not comprise statutory accounts within the meaning of section 240 of the Companies Act 1985. 2. The dividend will be payable on 4 April 2003 to shareholders on the register on 24 March 2003. 3. Based on the profit attributable to shareholders and a weighted average of 41,828,190 ordinary shares (Dec 2001 - 41,080,957 and Jun 2002 - 41,195,519). 4. Based on the profit attributable to shareholders and a diluted weighted average of 42,017,296 ordinary shares (Dec 2001 - 41,712,205 and Jun 2002 - 41,769,703). The dilution is caused by outstanding share options. 5. Post Balance Sheet Events On 3 February 2003, the company acquired the entire issued share capital of Consultec Group AB for a consideration of SEK 33,648,000 paid in cash and the issue of 5,705,660 ordinary shares credited as fully paid and ranking pari passu with existing ordinary shares except that they will not rank for the interim dividend. On 7 February 2003, the company acquired the entire issued share capital of Leonardo Internet Limited for a consideration of £200,000 paid in cash. 6. The comparative figures for the year ended 30 June 2002 have been taken from but do not constitute the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. 7. Copies of this interim statement and results, which were approved by the Board on 5 March 2003, are available from the registered office of the Company, which is at Eleco House, 15 Gentlemen's Field, Westmill Road, Ware, Herts SG12 0EF. Statement of Total Recognised Gains and Losses (Unaudited) (Audited) Half year ended Year ended 31 December 30 June 2002 2001 2002 £'000 £'000 £'000 Profit for the period 572 428 1,239 Currency translation differences on 68 (159) (115) foreign currency net investments Total recognised gains for the period 640 269 1,124 Reconciliation of movement in equity shareholders' funds (Unaudited) (Audited) Half year ended Year ended 31 December 30 June 2002 2001 2002 £'000 £'000 £'000 Profit for the period 572 428 1,239 Dividends (163) (142) (477) Other recognised gains/(losses) 68 (159) (115) Proceeds from issue of ordinary shares 45 2 5 Issue of ordinary shares on acquisition - - 50 of subsidiary undertakings Net increase in equity shareholders' funds 522 129 702 Opening equity shareholders' funds 9,247 8,561 8,545 Closing equity shareholders' funds 9,769 8,690 9,247 Eleco plc Summarised consolidated balance sheet (Unaudited) (Audited) 31 December 30 June 2002 2001 2002 £'000 £'000 £'000 Fixed assets 9,562 8,539 8,808 Current assets Stocks 1,886 2,218 1,838 Debtors 6,175 5,688 7,026 Cash and bank balances 3,924 368 3,333 11,985 8,274 12,197 Creditors falling due within one year Bank loans and overdrafts (1,663) (456) (1,073) Obligations under finance leases (155) (221) (195) Other creditors (8,323) (5,878) (8,606) Net current assets 1,844 1,719 2,323 Creditors falling due after more than one year Bank loans (1,262) (1,038) (1,488) Obligations under finance leases (102) (162) (113) (1,364) (1,200) (1,601) Provisions for liabilities and charges (273) (368) (283) Net assets 9,769 8,690 9,247 Capital and reserves Called up share capital 4,309 4,260 4,282 Share premium account 5,098 5,049 5,080 Merger reserve 367 367 367 Profit and loss account (5) (986) (482) Equity shareholders' funds 9,769 8,690 9,247 Eleco plc Consolidated cash flow statement (Unaudited) (Audited) Half year ended Year ended 31 December 30 June 2002 2001 2002 £'000 £'000 £'000 Net cash inflow from operating 1,891 844 4,191 activities Returns on investment and servicing of finance Net interest paid (29) (81) (142) Net cash outflow from returns on (29) (81) (142) investment and servicing of finance Taxation 25 28 (6) Capital expenditure and financial investment Increase in loans to Employee Share (39) (60) (60) Ownership Trust Purchase of fixed assets (1,271) (311) (914) Sale of tangible fixed assets 7 3 65 Net cash outflow from capital expenditure and financial investment (1,303) (368) (909) Acquisitions and disposals Purchase of subsidiary (6) - (538) undertakings net of cash acquired Sale of subsidiary undertaking's operations 10 767 770 Net cash inflow from acquisitions and 4 767 232 disposals Equity dividends paid (339) (267) (412) Net cash inflow before financing 249 923 2,954 Financing New bank loans - - 750 Repayment of principal under (115) (118) (282) finance leases Repayment of bank loans (226) (151) (301) Issue of ordinary shares 45 2 5 Net cash (outflow)/inflow from (296) (267) 172 financing (Decrease)/increase in cash in the (47) 656 3,126 period Eleco plc Consolidated cash flow statement - reconciliations (Unaudited) (Audited) Half year ended Year ended 31 December 30 June 2002 2001 2002 £'000 £'000 £'000 Reconciliation of operating profit to net cash flow from operating activities Operating profit 937 653 1,878 Depreciation charge 530 552 1,182 Amortisation of intangible assets 44 38 94 Amortisation of LTIP Awards 41 72 84 Profit on sale of tangible fixed assets (7) (2) (9) Working capital decrease/(increase) 346 (469) 962 Net cash inflow from operating activities 1,891 844 4,191 Reconciliation of net cash flow to movement in net debt (Decrease)/increase in cash in the period (47) 656 3,126 Cash outflow/(inflow)from decrease in 341 269 (167) debt and lease financing Decrease in net debt resulting from 294 925 2,959 cash flows New finance leases (64) (73) (162) Effects of changes in foreign exchange 48 (115) (87) rates Decrease in net debt 278 737 2,710 Opening net cash/(debt) 464 (2,246) (2,246) Closing net cash/(debt) 742 (1,509) 464 Segmental analysis Group turnover and profits were attributable as follows External sales Profit/(loss) (Unaudited) (Audited) (Unaudited) (Audited) Half year ended Year ended Half year ended Year ended 31 December 30 June 31 December 30 June 2002 2001 2002 2002 2001 2002 £'000 £'000 £'000 £'000 £'000 £'000 Continuing activities Building systems 17,659 13,566 31,523 1,487 896 2,610 Software systems 508 644 1,350 (160) (17) 12 Corporate - - - (390) (226) (744) Total continuing 18,167 14,210 32,873 937 653 1,878 Exceptional losses (37) - - Profit before interest 900 653 1,878 This information is provided by RNS The company news service from the London Stock Exchange

Companies

Elecosoft Public Limited Company (ELCO)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today