Half Yearly Report

RNS Number : 1880P
Mercury Recycling Group PLC
30 September 2011
 

 

MERCURY RECYCLING GROUP PLC

 

Interim Report for the period ending 30 June 2011

 

CHAIRMAN'S STATEMENT

 

The Group's unaudited results for the 6 months ended 30th June 2011 show sales of £1,371,821 with Operating Profits of £76,972.  These figures compare to £1,330,154 and £158,000 respectively for the same period in 2010.  Included in these figures were £72,000 of non-recurring costs as detailed below.  The cash position remains strong at £422,524.

The volume of lamps recycled was reasonable, but price reduction has had an effect.  More important has been the expenditure to prepare the premises (£34,000) for the new battery business.  This has saved much larger capital expenditure which would  otherwise have  been required for new premises.  In addition legal costs and aborted acquisition costs accounted for a further £38,000.

The Department for Business Innovation and Skills (BIS), has advised that the position is likely to change considerably in the lamp recycling industry when the 'recast' Waste Electrical and Electronic Equipment Directive (WEEE Directive) is implemented in the UK (probably 2013).  We have been assured that in addition to transposing the new European Directive into UK legislation, it will provide an opportunity for BIS to consider ways in which the current requirements can be improved, and made fairer for all involved.  During 2012 we will be able to participate in the full consultation of that process.  This should ensure major changes and a substantial increase in lamps recycled.

 

The second half of 2011 is difficult to predict, but the battery business should be up and running strongly by the last quarter.  We already have orders in place, and this should help to offset any reduced revenue for lamp recycling.  We are also making major savings to overheads in the second half of the year.

As I have mentioned previously, we have been exploring potential projects in the Natural Resources field.  We now hope to be able to make an announcement shortly.

Prospects for 2012 for the moment remain uncertain on the lamp recycling side, I am optimistic that the major expansion into battery recycling, will broaden our business base and revenue streams.  Thereafter, the major European change in lamp recycling under the new Re-cast Directive will ensure much higher levels of recycling, and should substantially improve that side of our business.

 

Once again I would like to thank all our staff for their contribution and diligence during the last year.

 

 

 

 

The Rt Hon The Lord Barnett JP PC

Chairman

CONSOLIDATED INCOME STATEMENT

 

FOR THE PERIOD ENDED 30 JUNE 2011

 

 

6 Months

6 Months

Year

 

 

ended

ended

ended

 

 

30.6.11

30.6.10

31.12.10

 

 

£'000

£'000

£'000

Revenue

 

1,372

1,330

2,668

Cost of sales

 

(70)

(109)

(137)

Gross profit

 

1,302

1,221

2,531

Administrative expenses

 

(1,225)

(1,063)

(2,251)

Operating profit

 

77

158

280

Finance costs

 

(2)

(4)

(7)

Profit before taxation

 

75

154

273

Tax

 

13

(40)

(13)

Profit for the period

 

88

114

260

Earnings per share :

Basic (pence)

0.25p

0.34p

0.75p

 

Diluted (pence)

0.24p

0.33p

0.75p

 

 

 

 

 

 

 



 

CONSOLIDATED STATEMENT OF COMPRENSIVE INCOME

 

FOR THE PERIOD ENDED 30 JUNE 2011

 

£'000

Profit for the period

88

114

260

Other comprehensive income for the period

-

-

-

Total comprehensive income for the period

88

114

260

 



 

CONSOLIDATED BALANCE SHEET

 

AS AT 30 JUNE 2011

 

As at

As at

As at

 

30.6.11

30.6.10

31.12.10

 

£'000

£'000

£'000

Non-current assets

 

 

 

Goodwill

4,122

4,122

4,122

Property, plant and equipment

1,445

1,513

1,495

 

5,567

5,635

5,617

Current assets

 

 

 

Trade and other receivables

525

511

441

Cash and cash equivalents

436

82

412

 

961

593

853

Total assets

6,528

6,228

6,470

Current liabilities

 

 

 

Trade and other payables

(298)

(281)

(270)

Bank overdrafts and loans

(77)

(103)

(86)

Current tax liabilities

(37)

(58)

(35)

 

(412)

(442)

(391)

Non-current liabilities

 

 

 

Trade and other payables

(30)

(39)

(33)

Bank loans

(123)

(192)

(155)

Deferred tax liabilities

(124)

(168)

(140)

 

(277)

(399)

(328)

Total liabilities

(689)

(841)

(719)

Net assets

5,839

5,387

5,751

Equity

 

 

 

Share capital

3,583

3,403

3,583

Share premium

235

242

235

Other reserves

386

365

386

Retained earnings reserve

1,635

1,377

1,547

Total equity

5,839

5,387

5,751

 



 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

FOR THE PERIOD ENDED 30 JUNE 2011

 

Share

Share

Other

Retained

Total

 

Capital

Premium

Reserves

Earnings

Equity

 

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

Balance at 1 January 2010

3,403

242

365

1,263

5,273

Profit for the period

-

-

-

114

114

Balance at 30 June 2010

3,403

242

365

1,377

5,387

Balance at 1 January 2010

Profit for the year

-

-

-

260

260

Warrants issued

-

-

21

-

21

Issue of share capital

180

(7)

-

-

173

Credit to equity for equity-settled

-

-

-

24

24

share based payments

 

 

 

 

 

Balance at 31 December 2010

3,583

235

386

1,547

5,751

Balance at 1 January 2011

3,583

235

386

1,547

5,751

Profit for the period

-

-

-

88

88

 

 

 

 

 

 

Balance at 30 June 2011

3,583

235

386

1,635

5,839

 

 



 

CONSOLIDATED CASH FLOW STATEMENT

 

FOR THE PERIOD ENDED 30 JUNE 2011

 

6 Months

6 Months

Year

 

ended

ended

ended

 

30.6.11

30.6.10

31.12.10

 

£'000

£'000

£'000

Net cash from operating activities

146

271

567

Investing activities

 

 

 

Purchases of plant and equipment

(88)

(121)

(229)

Net cash used in investing activities

(88)

(121)

(229)

Financing activities

 

 

 

Proceeds on issue of shares

-

-

194

Repayment of loans

(34)

(34)

(66)

Net cash (used)/generated in financing activities

(34)

(34)

128

Net increase in cash and cash

 

 

 

equivalents

24

116

466

Cash and cash equivalents at the beginning of period

396

(70)

(70)

 

 

 

 

Cash and cash equivalents at end of period

420

46

396

 

Note to the cash flow statement

Operating profit

77

158

280

Depreciation on plant and equipment

138

117

241

Decrease in deferred income

(5)

(5)

(9)

Share based payment expense

-

-

24

Loss on disposal of plant and equipment

-

-

1

Operating cash flows before movements in working capital

210

270

537

 

 

 

 

Movement in receivables

(84)

(30)

40

Movement in payables

22

35

21

Cash generated by operations

148

275

598

Interest paid

(2)

(4)

(7)

Tax paid

-

-

(24)

Net cash from operating activities

146

271

567

 



 

NOTES TO CONSOLIDATED ACCOUNTS FOR THE PERIOD ENDED 30 JUNE 2011

 

1.     Basis of preparation and accounting policies

The results for the six months to 30 June 2011 have been prepared under International Financial Reporting Standards (IFRS) as adopted by the EU and International Accounting Standards Board.

 

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2010, as described in those financial statements.

 

The financial information does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. Full accounts of the company for the year ended 31 December 2010 on which the Auditors gave an unqualified report, have been delivered to the Registrar of Companies.

 

 

2.     Earnings per share

The calculation of basic and diluted earnings per share is based upon the profit for the period and the weighted average number of shares in issue during the period.

 

6 months

6 months

Year to

 

to 30.6.11

to 30.6.10

31.12.10

 

'000

'000

'000

Weighted average number of shares

35,827

34,026

34,510

Options - dilution

104

55

117

 

35,931

34,081

34,627

 

 

6 months

6 months

Year to

 

to 30.6.11

to 30.6.10

31.12.10

 

pence

pence

pence

Basic earnings per share

0.25

0.34

0.75

Diluted earnings per share

0.24

0.33

0.75

Under IAS 33, the share warrants in issue at the period end were not considered diluting as the market based vesting conditions of the warrants had not been met at the period end.

 

 

3.     Copies of report

Copies of this interim statement will be despatched to shareholders and will be available to the public at the Registered Office, Mercury House, 17 Commerce Way, Trafford Park, Manchester, M17 1HW.

 


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