Final Results

MS International PLC 19 June 2002 Date: Under embargo until 7.00am - Wednesday June 19th 2002 Contacts: Michael Bell, Chairman, MS INTERNATIONAL plc Tel: 01302 322133 Terry Garrett, Weber Shandwick Square Mile Tel: 0207 950 2800 MS INTERNATIONAL plc Full Year Results to April 27th 2002 HIGHLIGHTS • Pre-tax profits rose by 16% to £2.51m (2001: £2.17m) • Sales increased by 9% to £35.69m (2001: £32.87m) • Earnings per share climbed by 23% to 8.1p (2001: 6.6p) • 17% increase in final dividend to 1.17p (2001: 1.00p) making 1.55p (2001: 1.33p) total per share • Net cash at a record £3.48m, 25% up on the comparable figure, (2001: £2.79m) even after considerable capital expenditure and the share buy back Michael Bell, Executive Chairman, commented: 'The Group has made excellent progress. In a year when we faced global weakness in the markets we serve we enlarged our market share and maintained the momentum of our progress. All the key figures on sales, margins, profits and earnings per share are ahead of the previous year while our net cash position advanced to record levels.' 'All divisions performed well despite the challenging markets and, indeed, we perceive that our real successes in commercial terms have stretched beyond the achievements that the actual numbers indicate.' 'Focusing on the strengths of the Group has resulted in delivering enhanced shareholder value over the past two years. We will strive to build on our success but, given the economic background at this point, it seems prudent and realistic to temper expectations for the coming year.' Chairman's Statement Introduction In 2002 we faced up to, and overcame with remarkable success, the many challenges that arose in the world-wide markets that we serve. In the circumstances, it is pleasing to report that the Group maintained its forward momentum. We enlarged our market share during a period of global economic weakness and achieved growth in both sales and profit margins, which resulted in a healthy advance in pre-tax profits and earnings per share. In addition, the Group's net cash position was at a record year-end level. Such are the clear tangible indicators of the progress that the Group has attained. Accordingly, for the period ended April 27th 2002, the Group's continuing businesses produced a 16% increase in profit before tax to £2.51m (2001-£2.17m), on sales 9% higher at £35.69m (2001-£32.87m). Earnings per share rose by 23% to 8.1p (2001-6.6p). The consolidated net cash position of the Group advanced yet again, this time by 25% to £3.48m (2001-£2.79m). This was after considerable capital expenditure on the upgrading of our manufacturing capabilities, development work and the programmed refurbishment of our freehold properties. Added to that, we purchased 1,257,719 of the Company's own shares for cancellation at a cost of £0.65m. In all, the year has produced a satisfying set of results. Furthermore, we perceive that our real successes in commercial terms have stretched beyond the ' snap-shot' financial figures for the year. Operating Divisions The defence division's phased bulge in its order book provided the basis for a record sales figure much higher than earlier years. The outcome was an excellent performance. The order book is now returning to a more regular and sustainable level. The growing political uncertainties in the world have led to defence becoming more important on the international agenda, and yet individual government budget restraints invariably lead to frustrating delays in the placing of defence contracts. The forgings division demonstrated increased sales levels, despite the prevailing soft trading conditions, particularly in the United States. Whilst steadfastly defending our market positions against competitors driven by a need to fill under utilised capacity, there were occasions when unacceptable margins necessitated a resolute 'walking away' from some business that had become unattractive in the short term. The order book of this division is traditionally short-term and makes the future somewhat difficult to predict. Nevertheless, the division is a world leader in its chosen markets and will respond quickly to take advantage of any upturn. Global-MSI, our joint venture company that designs, manufactures and constructs petrol station canopies for retailers across Europe, traded strongly, producing an outstanding performance. Although the order book is relatively strong, it is again short term, and when coupled with the vagaries of the oil industry offers little in the way of certainty over a twelve month period. That said, Global-MSI is the market leader in the industry. Outlook We have focused the Group on its strengths and the resulting achievements of the past two years have successfully enhanced shareholder value. It would be very disappointing after such progress, if the persistent weakness within our markets continued for too long. Nevertheless we will strive to continue building on the progress of last year although, given the economic background at this point, it seems prudent and realistic to temper expectations for the coming year. All matters considered, the Board recommends the payment of a 17% increase in the final dividend to 1.17p (2001-1.00p) making a total for the year of 1.55p (2001-1.33p). Michael Bell Executive Chairman June 19th 2002 Group Profit and Loss Account For the 52 weeks ended April 27th, 2002 2002 2001 2001 2001 Year 2001 comparatives have been restated for the adoption of FRS19* As restated As restated As restated* Total Continuing Discontinued Total £000 £000 £000 £000 Turnover: Group and share of joint venture 35,687 32,866 2,994 35,860 Less: Share of joint venture turnover (5,250) (5,648) - (5,648) ------------------------------------------ ------ ------ ----- ------ Group turnover 30,437 27,218 2,994 30,212 ------------------------------------------ ------ ------ ----- ------ Operating profit/(loss) 2,106 1,948 (2,293) (345) Share of operating profit of joint venture 405 197 - 197 2,511 2,145 (2,293) (148) Exceptional items: Profit/(loss) on sale of tangible fixed assets: Group - 9 (18) (9) Joint venture - 1 - 1 (Loss) on sale/closure of businesses: Net assets less sale proceeds/closure costs - - (305) (305) Goodwill previously written off to reserves - - (488) (488) ------------------------------------------ ------ ------ ----- ------ Profit/(loss) on ordinary activities before interest 2,511 2,155 (3,104) (949) Interest receivable: Group 108 144 - 144 Joint venture 6 1 - 1 Interest payable: Group (114) (130) - (130) ------------------------------------------ ------ ------ ----- ------ Profit/(loss) on ordinary activities before taxation 2,511 2,170 (3,104) (934) Tax on profit/(loss) on ordinary activities (818) (782) 850 68 ------------------------------------------ ------ ------ ----- ------ Profit on ordinary activities after taxation 1,693 1,388 (2,254) (866) ------------------------------------------ ------ ------ ----- ------ Dividends (298) (292) ------------------------------------------ ------ ------ ----- ------ Retained profit/(loss) for the Group and its share of joint venture 1,395 (1,158) ------------------------------------------ ------ ------ ----- ------ Earnings/(loss) per share - basic and fully diluted 8.1p 6.6p (10.8p) (4.2p) ------------------------------------------ ------ ------ ----- ------ Group Statement of Recognised Gains and Losses 2002 2001 As restated* £000 £000 Profit/(loss) for the financial period 1,693 (866) Translation differences on foreign currency net investments 2 (67) Prior year adjustment (463) - ----------------------------------------------------------- ----- ---- Total gains/(losses) recognised since last annual report 1,232 (933) ----------------------------------------------------------- ----- ---- Historical cost profits and losses There is no material difference between the result as disclosed in the profit and loss account and the result which would have been reported had the Group prepared the accounts on an unmodified historical cost basis. Notes The financial information set out above does not constitute the Company's statutory accounts for the periods ended April 27th, 2002 or April 28th, 2001 but is derived from those accounts. Statutory accounts for 2001 have been delivered to the Registrar of Companies, and those for 2002 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 a statement under section 237 (2) or (3) of the Companies Act 1985. The accounts for the year ended April 27th, 2002 include a prior year adjustment relating to the adoption of FRS 19 ' Deferred Tax'. The effect of the prior year adjustment is to increase the deferred tax provision for the year ended April 28th, 2001 by £463,000 and at April 29th, 2000 by £454,000 and to increase the tax charge for the year ended April 28th, 2001 by £9,000. The earning per share is calculated dividing the profit after taxation of £1,693,000 by the weighed average of 21,040,016 shares in issue in the year. Copies of this announcement are available from the Companies registered office at MS INTERNATIONAL plc, Balby Carr Bank, Doncaster, DN4 8DH, England. The full Annual Report and Accounts will be posted to shareholders shortly and will be delivered to the Registrar of Companies after it has been laid before the Company in general meeting. Dividend warrants will be posted on September 6th, 2002 to members on the books of the Company at August 9th, 2002 Balance Sheets At April 27th, 2002 Group 2002 2001 Year 2001 comparatives have been restated for the adoption of FRS 19* As restated* £000 £000 Assets employed -------------------------------------------------------- ------ ------ Fixed assets Tangible assets 7,671 6,222 Investment in joint venture: Share of gross assets 1,712 1,621 Share of gross liabilities (1,196) (1,284) Investment in own shares 759 266 -------------------------------------------------------- ------ ------ 8,946 6,825 -------------------------------------------------------- ------ ------ Current assets Stocks 2,745 2,666 Debtors 4,233 7,041 Group pension scheme prepayment - due after more than one year 6,888 6,938 Cash at bank and in hand 4,763 2,789 -------------------------------------------------------- ------ ------ 18,629 19,434 Creditors - amounts falling due within one year 10,547 9,944 -------------------------------------------------------- ------ ------ Net current assets 8,082 9,490 -------------------------------------------------------- ------ ------ Total assets less current liabilities 17,028 16,315 Creditors - amounts falling due after more than one year 209 217 Provisions for liabilities and charges 3,076 3,107 -------------------------------------------------------- ------ ------ Total assets less liabilities 13,743 12,991 -------------------------------------------------------- ------ ------ Capital and reserves Called up share capital 2,217 2,343 Capital redemption reserve 524 398 Revaluation reserve 1,853 1,853 Other reserves 4,654 4,652 Special reserve 1,487 1,487 Profit and loss account 3,008 2,258 -------------------------------------------------------- ------ ------ Equity shareholders' funds 13,743 12,991 -------------------------------------------------------- ------ ------ Group Cash Flow Statement For the 52 weeks ended April 27th, 2002 2002 2002 2001 2001 £000 £000 £000 £000 Operating profit/(loss) 2,106 (345) Closure costs - (305) Depreciation charge 619 625 Foreign exchange gains - (33) RSA grant release (38) (37) (Increase)/decrease in stocks (614) 1,320 Decrease/(increase) in debtors 2,780 (1,187) Increase in creditors 379 550 Decrease in progress payments (1,367) (25) Increase in provisions 65 117 Provisions utilitised (180) (65) ---------------------------------------------------- ----- ----- Cash flow from operating activities 3,750 615 Dividends received from joint venture 155 50 Interest paid (11) (8) Taxation received/(paid) 31 (236) Purchase of tangible fixed assets (2,077) (556) Sale of tangible fixed assets 9 58 Shares purchased by ESOT (518) (160) Loan repaid by joint venture - 75 ---------------------------------------------------- ----- ----- Capital expenditure and financial investment (2,586) (583) Dividends paid (289) (254) ------------------------------------------------------------------------------------------------------------------------ Cash inflow/(outflow) before financing 1,050 (416) ------------------------------------------------------------------------------------------------------------------------ Cash inflow/(outflow) before financing 1,050 (416) Financing Purchase of own shares (467) - Increase in short term bank loans 1,286 - Repayments of capital element of finance leases and hire purchase contracts (216) (83) New leases 296 322 Share options exercised 25 492 ----- ----- 924 731 ------------------------------------------------------------------------------------------------------------------------ Increase in cash 1,974 315 ------------------------------------------------------------------------------------------------------------------------ Reconciliation of net cash flow to movement in net funds 2002 2001 £000 £000 Increase in cash 1,974 315 Increase in short term bank loans (1,286) - Repayments of capital element of finance leases and hire purchase contracts 216 83 ------- ----- Changes in net funds resulting from cash flow 904 398 New leases (296) (322) ------- ----- Movement in net funds 608 76 Net funds at April 28th, 2001 2,441 2,365 ------- ----- Net funds at April 27th, 2002 3,049 2,441 ------- ----- Analysis of net funds 2002 Cash flows 2001 £000 £000 £000 Cash at bank and in hand 4,763 1,974 2,789 Bank loans and overdrafts (1,286) (1,286) - ------ ------- ----- 3,477 688 2,789 Finance leases and hire purchase contracts (428) (80) (348) ------ ------- ----- Net funds at April 27th, 2002 3,049 608 2,441 ------ ------- ----- Movement on reserves and reconciliation of movements in shareholders' funds Movements in reserves are as follows: Capital Profit Share redemption Revaluation Other Special and loss capital reserve reserve reserves reserves account Total £000 £000 £000 £000 £000 £000 £000 ------- --------- --------- -------- -------- -------- ------ At April 28th, 2001 2,343 398 1,853 4,652 1,487 2,721 13,454 Prior year adjustment - - - - - (463) (463) As restated 2,343 398 1,853 4,652 1,487 2,258 12,991 Profit attributable to members - - - - - 1,693 1,693 Dividends - - - - - (298) (298) Foreign exchange adjustments in retranslation of overseas investments - - - 2 - - 2 Repurchase of shares (126) 126 - - - (645) (645) ------- --------- --------- -------- -------- -------- ------ At April 27th, 2002 2,217 524 1,853 4,654 1,487 3,008 13,743 ------- --------- --------- -------- -------- -------- ------ This information is provided by RNS The company news service from the London Stock Exchange

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