Interim Results

Marshalls PLC 6 September 2002 MARSHALLS PLC Interim Results for Six Months to 30 June 2002 Marshalls plc, the specialist Landscape, Clay and Stone Products Group, today announces results for the 6 months to 30 June 2002. Six months to Six months to % 30 June 2002 30 June 2001 (Â£m) (Â£m) Turnover 181.3 168.9 7.3 Profit before tax 27.3 24.3 12.3 Adjusted basic EPS 11.39p 10.44p 9.1 Dividend per share 3.30p 3.15p 4.8 â€¢ Half year profits ahead as outlined in the July trading statement, reflecting strong trading conditions in the first five months before the special events in June â€¢ Increasing commercial and public sector activity should lead to a good outcome for the full year â€¢ Capital investment for the year expected to exceed Â£40m â€¢ Dividend increased by 4.8% to 3.30p per share (2001: 3.15p per share) â€¢ Balance sheet gearing at 12.9% (2001: 11.3%) Commenting on these results, Christopher Burnett, Chairman said: 'All Divisions achieved sales growth in the first half despite the special events of June and, while the second half of the year presents the Group with a stiff challenge compared with 2001, having regard to the increasing activity in the commercial and public sector markets, we expect the Group to achieve a good outcome for the full year.' Enquiries: Christopher Burnett Chairman Marshalls plc (020 7404 5959 today Ian Burrell Finance Director Marshalls plc (01484 438900 thereafter Jon Coles Brunswick Group 020 7404 5959 William Cullum Brunswick Group 020 7404 5959 Chairman's Statement Group turnover in the six months to 30 June 2002 at Â£181.3 million (2001: Â£168.9 million) was 7.3 per cent ahead of the same period last year. This resulted in profit before tax of Â£27.3 million (2001: Â£24.3 million), an increase of 12.3 per cent. Basic earnings per share grew by 12.9 per cent to 11.03p (2001: 9.77p restated due to FRS19 'Deferred Tax') and with adjusted basic earnings per share increasing by 9.1 per cent to 11.39p (2001: 10.44p restated due to FRS19 'Deferred Tax'). All Divisions achieved sales growth in the first half despite the special events of June. The Landscape Products Division increased turnover by 4.8 per cent, and the Natural Stone and Emerging Businesses Divisions showed much more significant improvement over last year. Sales in the Clay Products Division were slightly ahead of 2001, pleasingly so, given that Industry volumes were again below the equivalent period last year. With capital expenditure of Â£21.9 million in the first six months, and the purchase of the outstanding 10% Cumulative Preference Shares for Â£2.3 million, net borrowings at the end of June 2002 amounted to Â£25.4 million (2001: Â£20.8 million), a gearing ratio of 12.9 per cent (2001: 11.3 per cent restated for FRS19 'Deferred Tax'). Interest was covered a healthy 17.6 times. Major capital projects completed in the period have included a new automated Heritage Line and Block Plant at St Ives in Cambridgeshire, and additional production capacity at Stonemarket. The Board has decided to declare an interim dividend of 3.30p (2001: 3.15p) per ordinary share, an increase of 4.8 per cent. The dividend will be paid on 2 December 2002 to shareholders on the Register on 1 November 2002. Landscape Products Division The Division, which represents 75 per cent of the Group had sales of Â£136.1 million (2001: Â£129.9 million), 4.8 per cent ahead of last year. Excluding the impact of the Aggregate Levy sales were 4 per cent ahead of 2001. This levy which was introduced on 1 April 2002 has been passed through the distribution chain and is therefore reflected in our customers' prices. The demand for our products in the domestic sector increased by 4 per cent, and in the commercial and public sectors by 7 per cent in the first half. The balance between the sectors changes over time depending on economic conditions, but clearly was also impacted by the lower domestic demand in June. The sales decline in June compared with last year was most noticeable in domestic garden and patio products. Operating profit before reorganisation and other exceptional costs and goodwill amortisation increased by 6.5 per cent to Â£22.7 million (2001: Â£21.3 million). Clay Products Division The Division increased sales by 1.2 per cent to Â£15.3 million in the first half (2001: Â£15.2 million). This was achieved against the background of yet another fall in Industry volumes, which is estimated at 1 per cent in the first 6 months. Operating profit before reorganisation and other exceptional costs was Â£2.7 million (2001: Â£2.7 million). This is the second year in which first half profit has been reported flat. It reflects the efforts that are going on within the Division to improve efficiency to off-set increases in energy costs and overheads that cannot be recovered in prices. This is not something that we find satisfactory, but we take a certain degree of comfort from the fact that our performance during this period has been better than most in the Industry. Natural Stone Division This is the first occasion on which we have provided separately information on our Natural Stone Division. We said we would do so because the business has now reached the size where it merits the status of a Division. It includes our own natural stone products, imported sandstone and granite products, and aggregates sold from our own quarries. The Division is supplying natural stone to a number of prestige projects in London and the South East including the pedestrianisation of Trafalgar Square. In the first six months, sales of this new Division, including Stancliffe Stone acquired in June 2001, amounted to Â£12.4 million (2001: Â£8.3 million), an increase of 50.5 per cent over last year. Organic growth in sales was 16.4 per cent. Operating profit before reorganisation and other exceptional costs and goodwill amortisation increased by 54.8 per cent to Â£2.0 million (2001: Â£1.3 million). Excluding the Stancliffe Stone acquisition the profit increased by 22.3 per cent. Emerging Businesses Division The results of this Division last year incorporated our Natural Stone business. The sales of the remaining businesses, on a like for like basis, increased by 12.0 per cent to Â£17.4 million (2001: Â£15.5 million) in the period. Operating profit before reorganisation and other exceptional costs and goodwill amortisation increased by 4.9 per cent to Â£2.2 million (2001: Â£2.1 million). In the case of Drainage and Flooring, two businesses where we have been investing capital and making structural changes, sales were significantly ahead of last year. The Division's operating profit was held back due to additional costs associated with these structural changes, and costs incurred at Classical Flagstones where the manufacturing operations have been re-organised. Street Furniture also saw a good improvement in sales. Outlook The second half of this year presents the Group with a stiff challenge compared with 2001. Last year we achieved sales growth of 15 per cent as we cleared the backlog of demand from the first half due to widespread floods. The wider economic picture and likely consumer demand are difficult to read at present. There remains, however, a strong interest in our products, and our national network of Registered Installers is busy. While the level of housing transactions is important to continuing growth in the private sector, the home improvement market is the largest contributing factor. One consequence of the rise in house prices is the growth in average equity per household which provides the consumer with the comfort, if needed, to invest in replacing their driveways and patios. We therefore remain optimistic about future prospects. Having regard to the increasing activity in the commercial and public sector markets, to a level that has not been seen for many years in the construction industry, and taking the Group as a whole, we expect to achieve a good outcome for the full year. CHRISTOPHER BURNETT Chairman 6 September 2002 Consolidated Profit and Loss Account for the half year ended 30 June 2002 Unaudited Audited Half year ended Year ended June December (As restated) (As restated) Notes 2002 2001 2001 Â£'000 Â£'000 Â£'000 Turnover 1 181,262 168,852 328,036 Operating costs (152,306) (143,221) (282,703) Operating profit Before reorganisation and other exceptional costs and goodwill amortisation 29,551 27,351 48,865 Reorganisation and other exceptional costs 2 - (1,304) (2,508) Goodwill amortisation (595) (416) (1,024) 1 28,956 25,631 45,333 Gain on disposal of property - 321 321 Profit on ordinary activities before interest 28,956 25,952 45,654 Interest (net) (1,649) (1,642) (2,943) Profit on ordinary activities before taxation 27,307 24,310 42,711 Taxation on profit on ordinary activities (8,782) (7,929) (14,003) Profit for the financial period 18,525 16,381 28,708 Preference dividends: Non equity shares (87) (87) (174) Profit attributable to ordinary shareholders 18,438 16,294 28,534 Ordinary dividends: Equity shares (5,523) (5,246) (15,846) Retained profit for the financial period 12,915 11,048 12,688 Earnings per share: Basic 3 11.03p 9.77p 17.11p Diluted 3 11.01p 9.76p 17.10p Adjusted Basic 3 11.39p 10.44p 18.65p Dividend declared: Pence per share 3.30p 3.15p 9.50p The comparatives have been restated for the effect of FRS19 'Deferred Tax'. Consolidated Balance Sheet at 30 June 2002 Unaudited Audited Half year ended Year ended June December (As restated) (As restated) Notes 2002 2001 2001 Â£'000 Â£'000 Â£'000 Fixed assets Intangible 20,721 20,823 21,316 Tangible 183,947 160,818 169,902 204,668 181,641 191,218 Current assets Stocks 60,103 51,774 54,387 Debtors: Due within one year 62,141 66,541 31,517 Debtors: Due after more than one year - 2,171 - Cash at bank and in hand 136 6,929 14,655 122,380 127,415 100,559 Creditors: Amounts falling due within one year (90,032) (78,533) (66,215) Net current assets 32,348 48,882 34,344 Total assets less current liabilities 237,016 230,523 225,562 Creditors: Amounts falling due after more than one year (20,005) (27,751) (20,007) Provisions for charges and liabilities (19,569) (18,196) (18,843) Net assets 4 197,442 184,576 186,712 Capital and reserves Called up share capital 42,007 42,919 43,006 Share premium account 17,724 18,492 18,910 Revaluation reserve 5,166 5,166 5,166 Other reserves 14,352 10,274 14,352 Profit and loss account 118,193 107,725 105,278 Shareholders' funds 197,442 184,576 186,712 Analysis of shareholders' funds Equity 196,334 182,453 184,589 Non equity 1,108 2,123 2,123 197,442 184,576 186,712 The comparatives have been restated for the effect of FRS19 'Deferred Tax'. Consolidated Cash Flow Statement for the half year ended 30 June 2002 Unaudited Audited Half year ended Year ended June December (As restated) (As restated) Notes 2002 2001 2001 Â£'000 Â£'000 Â£'000 Cash inflow from operating activities 5 17,542 19,710 70,677 Returns on investments and servicing of finance (683) (1,616) (4,118) Taxation (5,297) (4,144) (13,172) Capital expenditure (21,932) (15,755) (30,607) Acquisitions and disposals - (3,826) (5,696) Equity dividends paid - - (15,239) Cash (outflow) / inflow before use of liquid resources and financing (10,370) (5,631) 1,845 Financing Decrease in debt and lease financing (2,312) (16) (262) Repurchase of 10% cumulative preference shares (2,323) - - Issue of shares 138 47 543 (Decrease) / increase in cash in the period (14,867) (5,600) 2,126 Reconciliation of Net Cash Flow to Movement in Net Debt (Decrease) / increase in cash in the period (14,867) (5,600) 2,126 Cash outflow from decrease in debt and lease financing 2,312 16 262 Change in net debt resulting from cash flows (12,555) (5,584) 2,388 Loans issued on acquisition of businesses - (6,408) (6,408) Movement in net debt in the period (12,555) (11,992) (4,020) Net debt at beginning of period (12,862) (8,842) (8,842) Net debt at end of period (25,417) (20,834) (12,862) Net gearing 12.9% 11.3% 6.9% Reconciliation of Movements in Consolidated Shareholders' Funds for the half year ended 30 June 2002 Unaudited Audited Half year ended Year ended June December (As restated) (As restated) 2002 2001 2001 Â£'000 Â£'000 Â£'000 Profit for the financial period 18,525 16,381 28,708 Dividends (5,610) (5,333) (16,020) New share capital issued 138 47 552 Write off on issue of shares to QUEST - - (9) Repurchase of 10% cumulative preference shares (2,323) - - Net additions to shareholders' funds 10,730 11,095 13,231 Shareholders' funds at beginning of period 186,712 173,481 173,481 Shareholders' funds at end of period 197,442 184,576 186,712 (Originally Â£205,555,000 at 31 December 2001 before deducting prior year adjustment of Â£18,843,000) There were no recognised gains or losses in the period (2001: Â£Nil) other than those reflected above. The comparatives have been restated for the effect of FRS19 'Deferred Tax'. Notes to the Interim Statements 1. Analysis of turnover and operating profit 2002 2001 2001 Â£'000 Â£'000 Â£'000 (a) Turnover Landscape Products 136,077 129,894 247,585 Clay Products 15,341 15,155 29,401 Natural Stone 12,429 8,256 19,567 Emerging Businesses 17,415 15,547 31,483 181,262 168,852 328,036 There is no material inter-segmental turnover. (b) Operating profit Operating profit before reorganisation and other exceptional costs and goodwill amortisation Operating profit Unaudited Audited Unaudited Audited Half year ended Year ended Half year ended Year ended June December June December (As restated) (As restated) (As restated) (As restated) 2002 2001 2001 2002 2001 2001 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Landscape Products 22,652 21,263 36,768 22,342 20,018 34,441 Clay Products 2,710 2,704 5,024 2,710 2,505 4,482 Natural Stone 1,981 1,280 2,811 1,827 1,159 2,503 Emerging Businesses 2,208 2,104 4,262 2,077 1,949 3,907 29,551 27,351 48,865 28,956 25,631 45,333 2. Reorganisation and other exceptional costs Reorganisation and other exceptional costs include Â£Nil (2001: Â£1.1 million) in respect of reorganisation costs and Â£Nil (2001: Â£0.2 million) in respect of known irrecoverable non-compulsory insurance prepayments and claims relating to Independent Insurance. 3. Earnings per share Unaudited Audited Half year ended Year ended June December (As restated) (As restated) 2002 2001 2001 Â£'000 Â£'000 Â£'000 Profit for the financial period attributable to ordinary shareholders 18,438 16,294 28,534 Profit for the financial period attributable to ordinary shareholders and potentially ordinary dilutive shares 18,438 16,294 28,534 Adjusted basic earnings per share reconciliation: Profit for the financial period 18,438 16,294 28,534 Reorganisation and other exceptional costs - 1,304 2,508 Goodwill amortisation 595 416 1,024 Gain on disposal of property - (321) (321) Taxation - (286) (640) 19,033 17,407 31,105 Weighted average number of shares 167,115,664 166,706,938 166,804,445 Weighted average number of shares 167,115,664 166,706,938 166,804,445 Dilutive shares 383,164 250,174 45,244 167,498,828 166,957,112 166,849,689 Basic earnings per share 11.03p 9.77p 17.11p Diluted earnings per share 11.01p 9.76p 17.10p Adjusted basic earnings per share 11.39p 10.44p 18.65p An adjusted basic earnings per share has been prepared in order to show the underlying performance of the business. The adjusted basic earnings per share is adjusted for reorganisation and other exceptional costs, goodwill amortisation, gain on disposal of property and the associated taxation. Unaudited Audited Half year ended Year ended June December (As restated) (As restated) 2002 2001 2001 Â£'000 Â£'000 Â£'000 4 Analysis of net assets Landscape Products 170,733 154,911 142,248 Clay Products 44,778 45,076 43,910 Natural Stone 25,366 24,755 25,094 Emerging Businesses 16,498 15,475 15,083 257,375 240,217 226,335 Unallocated net liabilities (59,933) (55,641) (39,623) 197,442 184,576 186,712 Unallocated net liabilities comprise non-operating assets and liabilities of a financing nature, principally net borrowings, corporation tax, deferred tax and dividends payable. 5. Reconciliation of operating profit to cash flow from operating activities 2002 2001 2001 Â£'000 Â£'000 Â£'000 Operating profit 28,956 25,631 45,333 Amortisation charges 595 416 1,024 Depreciation charges 7,751 6,860 14,616 Loss on sale of tangible fixed assets 136 3 301 (Increase) / decrease in stocks (5,716) 6,134 3,663 (Increase) / decrease in debtors (30,624) (32,796) 4,276 Increase in creditors 16,444 13,462 1,464 17,542 19,710 70,677 6. Basis of preparation The interim financial statements have been prepared on the basis of the accounting policies set out in the Group's 2001 statutory accounts modified for the adoption of FRS19 'Deferred Taxation' and therefore the comparatives have been restated. The impact of these changes on the profit for the period ended 30 June 2001 and 31 December 2001 is to increase the tax charge by Â£856,000 and Â£1,503,000 respectively. The impact of these changes on the balance sheet as at 30 June 2001 and 31 December 2001 is to reduce shareholders funds by Â£18,196,000 and Â£18,843,000 respectively. 7. Other The above financial information does not constitute statutory accounts. The financial information for the year ended 31 December 2001 has been extracted from the statutory accounts for that period which have been delivered to the Registrar of Companies and contain an unqualified audit report. An interim dividend of 3.30p per ordinary share will be paid on 2 December 2002 to shareholders on the register at the close of business on 1 November 2002. Independent review report by KPMG Audit Plc to Marshalls plc Introduction We have been instructed by the Company to review the financial information set out on pages 3 to 8 and we have read the other information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Directors' Responsibilities The Interim Report, including the financial information contained therein, is the responsibility of, and has been approved by, the Directors. The Listing Rules of the London Stock Exchange require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual financial statements except where they are to be changed in the next annual financial statements in which case any changes, and the reasons for them, are to be disclosed. Review Work Performed We conducted our review in accordance with guidance contained in Bulletin 1999/4: Review of interim financial information issued by the Auditing Practices Board. A review consists principally of making enquiries of Group management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information. Review Conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 June 2002. KPMG Audit Plc Chartered Accountants Registered Auditor Leeds 6 September 2002 This information is provided by RNS The company news service from the London Stock Exchange

Companies

Marshalls (MSLH)

Monday, 13th May 2024

COMPANIES COVERED:

VCT DPLM ZOO

Diploma shares jump as full year guidance is upgraded in the wake of successful acquisitions but Victrex slides as forecast headwinds hit home. Zoo Digital also finds support as last year’s woes for the wider entertainment industry fade.

Full Archive

UK 100

Latest directors dealings

All directors dealings today