Final Results

Hill & Smith Hldgs PLC 23 January 2001 HILL & SMITH HOLDINGS PLC PRELIMINARY RESULTS Hill & Smith Holdings PLC ('Hill & Smith' or the 'Company') is pleased to announce its preliminary results for the year ended 30 September 2000. Highlights * Turnover at £58.86 million (1999: continuing businesses £56.51 million) * Operating profit at £4.62 million (1999: continuing businesses £4.82 million) * Pre-tax profit, after accounting for disposals, at £4.35 million (1999: £ 3.56 million) * IIMR earnings per ordinary share at 7.92p (1999: 7.01p) * Final dividend unchanged at 2.1p - giving 4.2p total for the year * Successful acquisition of Ash & Lacy plc in November 2000 * Year end changed to 31 December, for easy accommodation of Ash & Lacy acquisition Chairman of Hill & Smith, David Winterbottom, said: 'Again, I am pleased to report the progress made in the Group during the financial year ended 30 September 2000. Turnover in our continuing businesses increased by 4.2% to £ 58.86 million (1999: £56.51 million) and, whilst operating profit was a little down on the previous year, profit before tax after accounting for disposals showed a healthy increase of 22.2% to £4.35 million (1999: £3.56 million). 'All in all, it was a sound year of consolidation for the Group, following our extensive re-organisation. However, at the same time, we continued to develop new products and make appropriate acquisitions to complement our core activities. 'Along with other small engineering businesses, the Board is concerned by the need to improve shareholder value. Much time has been devoted to developing our strategy and, following the year end, we completed the acquisition of Ash & Lacy plc ('Ash & Lacy'). We believe that this substantial and innovative acquisition will do much to strengthen our core business activities, introduce new product opportunities and will commence the improvement in shareholder value I referred to earlier.' For further information, please contact: Hill & Smith Holdings PLC Today: 01756 770 376 David Winterbottom, Chairman Thereafter: 01902 357 910 David Grove, Chief Executive Rawlings Financial PR Limited 01756 770 376 John Rawlings Catriona Valentine CHAIRMAN'S STATEMENT General Again, I am pleased to report the progress made in the Group during the financial year ended 30 September 2000. Turnover in our continuing businesses increased by 4.2% to £58.86 million (1999: £56.51 million) and, whilst operating profit was a little down on the previous year, profit before tax after accounting for disposals showed a healthy increase of 22.2% to £4.35 million (1999: £3.56 million). IIMR Earnings per share increased to 7.92p (1999: 7.01) per share. Gearing at 18.6% (1999: 19.2%) improved slightly against the previous year, reflecting tight control, offset by increased cost of holding raw materials, and infill acquisitions made during the year. We also bought in a small number of our shares in the market. All in all, it was a sound year of consolidation for the Group, following our extensive re-organisation. However, at the same time, we continued to develop new products and make appropriate acquisitions to complement our core activities. Along with other small engineering businesses, the Board is concerned by the need to improve shareholder value. Much time has been devoted to developing our strategy and, following the year end, we completed the acquisition of Ash & Lacy plc ('Ash & Lacy'). We believe that this substantial and innovative acquisition will do much to strengthen our core business activities, introduce new product opportunities and will commence the improvement in shareholder value I referred to earlier. We are evaluating still further our acquisition but we welcome the Ash & Lacy companies and personnel into our Group. Dividends Mindful of our recent acquisition and our desire to build on the continuing good health of the Company, the Board is pleased to recommend a final dividend for the year of 2.1p per share (1999: 2.1p per share) making a total for the year of 4.2p per share (1999: 4.2p per share). The Board will be examining the Company's dividend strategy for the future in the context of our enhanced operations. Board Structure and Employees Following the acquisition of Ash & Lacy, Howard Marshall joined the Board as a non-executive director. He was previously Chief Executive of Ash & Lacy. Additionally, Chris Burr joined the Board as Group Finance Director, he was previously Finance Director of Ash & Lacy. I welcome both of them and look forward to working with them. Howard Everett moves to take the role of Executive Director and Company Secretary. May I repeat my thanks to all our employees for their sustained efforts during yet another year of change. I say again that they are our most valuable asset. Trading It is well publicised that conditions continue to be difficult in our sector but, as long as there is no further adverse change in economic conditions, I look forward to a satisfactory outcome to the current trading period, which has started in line with our expectations. As Ash & Lacy had a different year end to our company, the decision was taken to change Hill & Smith Holdings' year end to 31 December. This will give a 15 month period for the enlarged group, which will only include Ash & Lacy companies from the date of acquisition (1 November 2000) to 31 December 2001. David S Winterbottom Chairman 23 January 2001 CONSOLIDATED PROFIT AND LOSS ACCOUNT For the year ended 30 September 2000 2000 1999 1999 1999 Continuing Discontinued Total Notes £000 £000 £000 £000 Turnover 58,858 56,505 5,435 61,940 Cost of sales (42,114) (40,350) (4,389) (44,739) ------ ------ ------ ------ Gross profit 16,744 16,155 1,046 17,201 ------ ------ ------ ------ Distribution costs (3,021) (2,583) (343) (2,926) Administrative expenses (9,103) (8,752) (745) (9,497) ------ ------ ------ ------ Operating profit/(loss) 4,620 4,820 (42) 4,778 Profit on sale of property 464 - - - Loss on sale of net assets (64) - (925) (925) Related goodwill - - 386 386 Loss on sale of businesses (64) - (539) (539) ------ ------ ------ ------ Profit/(loss) on ordinary activities before interest 5,020 4,820 (581) 4,239 Net interest (668) (677) ------ ------ Profit on ordinary activities before tax 4,352 3,562 Tax on profit on ordinary activities 1 (879) (1,269) ------ ------ Profit for the financial year 3,473 2,293 Dividends on equity shares (1,621) (1,635) ------ ------ Retained profit for the 1,852 658 year ====== ====== Earnings per ordinary 2 share: Basic 8.96p 5.82p Diluted 8.93p 5.81p IIMR 7.92p 7.01p ====== ====== Turnover and operating profit for the year ended 30 September 2000 were derived wholly from continuing operations. CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES For the year ended 30 September 2000 2000 1999 £000 £000 Profit for the financial year 3,473 2,293 Realised gain/(unrealised deficit) on revaluation of properties 126 (373) Exchange differences on the retranslation of net investments (54) 4 ------ ------ Total recognised gains and losses relating to the financial year 3,545 1,924 ====== ====== NOTE OF CONSOLIDATED HISTORICAL COST PROFITS AND LOSSES There is no material difference between the results as disclosed in the profit and loss account and the results as given on an unmodified historical cost basis. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS For the year ended 30 September 2000 Group Company 2000 1999 2000 1999 £000 £000 £000 £000 Profit/(loss) for the financial 3,473 2,293 1,708 (4,030) year Dividends (1,621) (1,635) (1,621) (1,635) ------ ------ ------ ------ 1,852 658 87 (5,665) Exchange differences (54) 4 - - Revaluation deficit - (373) - - New share capital subscribed 4 - 4 - Goodwill taken to profit and loss account on disposal - (386) - - Purchase of own shares (198) (406) (198) (406) ------ ------ ------ ------ Net increase/(reduction) in shareholders' funds 1,604 (503) (107) (6,071) Opening shareholders' funds 23,080 23,583 14,551 20,622 ------ ------ ------ ------ Closing shareholders' funds 24,684 23,080 14,444 14,551 ====== ====== ====== ====== CONSOLIDATED BALANCE SHEET As at 30 September 2000 2000 1999 Notes £000 £000 £000 £000 Fixed assets Intangible assets 3,213 2,826 Tangible assets 17,470 17,054 Investments 1,365 1,400 ------ ------ 22,048 21,280 Current assets Property held for realisation - 906 Stocks 7,632 6,624 Debtors 17,689 14,841 Cash at bank and in hand 288 1,291 ------ ------ 25,609 23,662 Creditors: amounts falling due within one year (22,302) (18,488) ------ ------ Net current assets 3,307 5,174 ------ ------ Total assets less current liabilities 25,355 26,454 Creditors: amounts falling due after more than one year (305) (2,843) Provisions for liabilities and charges (330) (531) ------ ------ Net assets 24,720 23,080 ====== ====== Capital and reserves 3 Called up share capital 9,654 9,734 Share premium 135 133 Revaluation reserve 1,781 1,907 Capital redemption reserve 238 156 Profit and loss account 12,876 11,150 ------ ------ Equity shareholders' funds 24,684 23,080 Minority interests - equity 36 - ------ ------ 24,720 23,080 ====== ====== Net assets per share 63.92p 59.28p ====== ====== CONSOLIDATED CASH FLOW STATEMENT For the year ended 30 September 2000 2000 1999 Notes £000 £000 £000 £000 Net cash inflow from operating activities 4 4,213 8,851 Returns on investments and servicing of finance Interest received 2 14 Interest paid (589) (635) Interest element of finance lease rental payments (82) (56) ------ ------ (669) (677) Taxation Corporation tax paid (386) (748) Capital expenditure and financial investment Purchase of fixed assets (1,989) (1,987) Sale of fixed assets 144 3,728 Sale of properties held for realisation 1,370 444 ------ ------ (475) 2,185 Acquisitions and disposals Purchase of businesses (665) (1,175) Sale of businesses net of costs of disposal (64) (377) ------ ------ (729) (1,552) Equity dividends paid (1,632) (831) ------ ------ Cash inflow before financing 322 7,228 Financing Issue of ordinary share capital 4 - Capital element of finance lease rental payments net of advances (378) 189 Repayment of loans (3,500) (1,608) Purchase of own shares (198) (406) ------ ------ (4,072) (1,825) ------ ------ (Decrease)/increase in cash (3,750) 5,403 ====== ====== Reconciliation of net cash flow to movement in net debt (Decrease)/increase in cash in the period (3,750) 5,403 Decrease in debt and lease financing 3,878 1,419 ------ ------ Changes in net debt from cash flows 128 6,822 New finance leases (284) - ------ ------ Movement in net debt in year (156) 6,822 Net debt as at 30 September 1999 (4,433) (11,255) ------ ------ Net debt as at 30 September 2000 5 (4,589) (4,433) ====== ====== NOTES TO THE FINANCIAL STATEMENTS 1. Taxation on profit on ordinary activities 2000 1999 £000 £000 UK corporation tax at 30% (1999: 30.5%) 1,155 1,118 Deferred taxation (26) (29) Adjustments relating to an earlier year corporation tax (250) 180 ------ ------ 879 1,269 ====== ====== 2. Earnings per share The FRS3 basic earnings per share is arrived at by dividing the profit after tax of £3.473m (1999: £2.293m) by 38,777,907 shares (1999: 39,389,495), being the weighted average number of ordinary shares in issue during the year. The FRS3 diluted earnings per share is arrived at by adjusting for share options. The IIMR earnings per share is calculated by reference to earnings of £3.073m (1999: £2.765m) divided by 38,777,907 shares (1999: 39,389,495), being the weighted average number of ordinary shares in issue during the year. The reconciliation to basic earnings per share is as follows: 2000 1999 Pence Pence Basic earnings per share 8.96 5.82 Profit on sale of property (1.20) - Loss on sale of businesses 0.16 1.37 Tax effect on non-operating exceptional items - (0.18) ------ ------ 7.92 7.01 ====== ====== 3. Reserves 2000 1999 £000 £000 (a) Share premium At 30 September 1999 133 133 Premium on shares issued 2 - ------ ------ At 30 September 2000 135 133 ====== ====== (b) Revaluation reserve At 30 September 1999 1,907 2,290 Transfer to profit and loss account - (10) Revaluation deficit - (373) Realised on disposal (126) - ------ ------ At 30 September 2000 1,781 1,907 ====== ====== (c) Capital redemption reserve At 30 September 1999 156 - Purchase of shares 82 156 ------ ------ At 30 September 2000 238 156 ====== ====== (d) Profit and loss account At 30 September 1999 11,150 11,270 Profit for the year 1,852 658 Goodwill on disposal - (386) Exchange difference (54) 4 Transfer from revaluation reserve 126 10 Purchase of own shares (198) (406) ------ ------ At 30 September 2000 12,876 11,150 ====== ====== 4. Reconciliation of operating profit to net cash inflows from operating activities 2000 1999 £000 £000 Operating profit 4,620 4,778 Depreciation 1,972 1,922 Stock (725) 2,259 Debtors (3,145) 1,639 Creditors 1,666 (1,496) Provisions (175) (104) Reorganisation costs - (147) ------ ------ 4,213 8,851 ====== ====== 5. Analysis of net debt Other 2000 Cashflow non-cash 1999 £000 £000 £000 £000 Cash at bank and in hand 288 (1,003) - 1,291 Bank overdrafts (2,747) (2,747) - - ------ ------ ------ ------ (2,459) (3,750) - 1,291 ====== ====== ====== ====== Debt due after one year - 1,000 1,375 (2,375) Debt due within one year (1,375) 2,500 (1,375) (2,500) Finance leases (755) 378 (284) (849) ------ ------ ------ ------ (2,130) 3,878 (284) (5,724) ====== ====== ====== ====== (4,589) 128 (284) (4,433) ====== ====== ====== ====== NOTES 1. The proposed final dividend will be paid on 9 April 2001 to shareholders on the register on 9 February 2001 (ex-dividend date 7 February 2001). 2. The financial information set out in this preliminary announcement does not constitute the company's statutory accounts for the years ended 30 September 1999 or 2000. Statutory accounts for 1999 have been delivered to the Registrar of Companies and those for 2000 will be delivered following the company's annual general meeting. The auditors have reported on those accounts; their reports were unqualified and did not contain statements under Section 237(2) or (3) of the Companies Act 1985. 3. The Annual Report will be posted to shareholders on 1 February 2001 and will be available from the registered office at Springvale Industrial & Business Park, Bilston, West Midlands, WV14 0QL. 4. The Annual General Meeting will be held at The Copthorne Hotel, Level Street, Brierley Hill, at 12:30 hours on Monday 5 March 2001. 5. Financial Calendar: Preliminary announcement of results to 30 September 2000 23 January 2001 Annual General Meeting 5 March 2001 Payment of proposed final dividend 9 April 2001 Interim results announcement for the period to 31 March 2001 June 2001 Payment of interim dividend October 2001 Interim results announcement for the period to 30 September 2001 December 2001 Preliminary announcement of results of results to 31 December 2001 April 2002 6. This Preliminary announcement of results for the year ended 30 September 2000 was approved by the Directors on 23 January 2001.

Companies

Hill and Smith (HILS)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today