Interim Results

Ocean Wilsons Holdings Ld 24 September 2003 Chairman's Interim Statement for Ocean Wilsons Holdings Limited Accounts and results The Group produced a strong performance in the first half of 2003. Group operating profit improved 46% to £9.6 million (2002: - £6.6 million) reflecting the strength of the underlying business and general improvement in operating margins. In $Real terms turnover increased 48% mainly due to increased volumes and improved market conditions. Towage continued to perform well. Operating margins showed considerable improvement, benefiting from new tariffs negotiated in 2002 and an increase in the number of vessels attended. The two PSV's (Platform Supply Vessels) constructed at our shipyard in Guaruja were completed during the period and are currently being operated by the Group under contract to Petrobras. Ship Agency results were ahead of the comparative period in 2002 as a result of a new liner service added in the second half of 2002 and increased tramp volumes. Container volumes at Tecon Rio Grande increased 26% over the first half 2002 to 257,611 TEUs (twenty foot equivalent units). Revenue was up 47% in $Real terms and operating margins showed an improvement over the comparative period in 2002. Business at Tecon Salvador continues to develop with both turnover and profit showing improvement over 2002 Profit before taxation was £22.5 million (2002: - loss £4.3 million) benefiting from exchange gains on foreign currency borrowings of £11.3 million (2002: - £ 12.8 million loss), a movement of £24.1 million. Earnings per share based on ordinary activities after taxation and minority interests improved significantly to 41.92p (2002: - 6.43p loss). Exchange rates In the six months to 30 June 2003, the $Real strengthened 19% against the US dollar (from 3.54 to 2.87) and 17% against sterling (from 5.70 to 4.73). In contrast the sterling average exchange rate in the period used to translate the profit and loss account and cash flow was 5.18 against 3.53 for the comparative period in 2002, a change of 47%. Exchange gains/losses on foreign currency borrowings As in prior periods the Group's Brazilian subsidiaries have significant US dollar loans and $Real denominated loans that are monetarily corrected by the movement in the US dollar/ $Real exchange rate. The revaluation of the $Real against the US dollar has generated a £11.3 million (2002: - £12.8 million loss) $Real denominated gain on the Group's US dollar and US dollar linked loans. Under UK GAAP the Group is required to recognise this result in the profit and loss account in the period it occurs. The cash flow effect of these exchange movements will only be realised over the life of the loans when repayments are made. Whilst the value of the loans remain unchanged in US Dollars, repayments need to be made out of local currency. The Board, in internally evaluating the Group's performance, spreads the exchange gain / loss on borrowings over the remaining life of the loans. On the basis of spreading the exchange gains / losses, the portion of current exchange gains and past exchange losses attributable to the period would be a loss of £3.0 million as compared to the reported exchange gain of £11.3 million. Dividend The board has resolved that an interim dividend of 1.00p per share (2002: 1.00p per share) be paid on 31 October, 2003 to shareholders on the register at close of business on 10 October 2003. As previously stated future dividend payments will be determined by the Board taking into consideration all aspects of the Group's business, but especially profitability and free cash flow. Cash flow The net cash inflow from operating activities during the period was £7.7 million which is £1.6 million lower than prior period (2002: - £9.3 million), principally due to an adverse movement in working capital of £4.1 million (2002: - £0.4 million). Free cash flow fell £3.8 million to £1.8 million (2002: - £5.6 million) as a result of lower operating cash flow and higher taxation payments. Free cash flow represents net cash inflow from operations, less net capex, taxation payments and net interest. At 30 June 2003 Group net debt was £26.9 million (31 December 2002: - £30.7 million). Group Net Assets At 30 June 2003, the Group's net assets amounted to £64.2 million (31 December 2002: - £42 million). The increase in the Group's net assets is principally attributable to the revaluation of the $Real as the greater part of the Group's net assets are $Real denominated and financed in US dollars. The Group's net assets represent 181.6p per share (31 December 2002: - 118.9p). Net assets located in Brazil account for 103.8p (31 December 2002: - 47.6p) and net assets outside Brazil 77.8p (31 December 2002: - 71.3p). At 18 September 2003 the total of the investment portfolio (including cash under management) was £25.0 million, an increase of 17% since year end. Future Prospects The operating results for July and August are in line with the same period in 2002 and the operational forecast for the year is positive. However the Groups results remain sensitive to movements in the $Real exchange rate. The Brazilian export sector is performing well and the $Real has remained relatively stable since the period end, trading against the US dollar between 2.88 and 3.13. The Board will review the level of the final dividend payment to be announced in April 2004 in the light of trading conditions and the performance of the $Real. J F Gouvea Vieira 23 September 2003 Ocean Wilsons Holdings Limited Interim Announcement Consolidated Profit and Loss Account At the board meeting held today the following announcement of the unaudited results of the Company and its subsidiary companies for the six months ended 30 June 2003 was approved by the directors. Year to Unaudited Unaudited 31 December Six months Six months 2002 30 June 2003 30 June 2002 (restated refer to note 3) £'000 £'000 £'000 Turnover 88,723 Turnover and share of joint 45,739 45,556 ventures' turnover (8,641) Less share of joint venture (4,279) (4,424) turnover --------- -------- -------- 80,082 Group Turnover 41,460 41,132 (57,433) Operating costs (29,733) (31,594) (4,550) Depreciation (2,100) (2,928) --------- -------- -------- 18,099 Group operating profit 9,627 6,610 2,848 Share of operating profit in joint 1,263 944 ventures 484 Share of operating profit/(loss) in (399) 411 associates 458 Income from fixed asset 79 179 investments 195 Realised surpluses on sales of 649 128 investments 28 (Loss)/profit on disposals of 119 (58) assets 4,672 Other interest receivable and 1,598 2,156 similar income (3,567) Interest payable and similar (1,775) (1,913) charges (23,376) Net exchange gain on foreign 11,334 (12,725) currency borrowings --------- -------- -------- (159) Profit/(loss) on ordinary activities 22,495 (4,268) before taxation 223 Taxation on profit on ordinary (6,304) 1,204 --------- activities -------- -------- 64 Profit/(loss) on ordinary activities 16,191 (3,064) after taxation 765 Minority interests (1,366) 791 --------- -------- -------- 829 Profit/(loss) for the period 14,825 (2,273) Dividends (2,122) Paid and Payable (354) (354) --------- -------- -------- (1,293) Retained profit /(loss) for the 14,471 (2,627) period ========= ======== ======== 2.34 Earnings/(Loss) per share Basic and 41.92p (6.43p) diluted Ocean Wilsons Holdings Limited Interim Announcement Consolidated Balance Sheet Audited Unaudited Unaudited as at as at as at 31 December 30 June 2003 30 June 2002 2002 £'000 £'000 £'000 52,896 Fixed Assets 65,029 62,089 17,964 Investments 21,184 22,686 Current Assets 1,242 Stocks 1,788 1,523 18,849 Debtors 22,667 17,588 1,480 Investment held for resale 1,782 - 33,273 Cash at Bank 33,830 27,529 ---------- --------- -------- 54,844 60,067 46,640 (23,465) Creditors (amounts falling due (26,667) (19,298) within one year) ---------- --------- -------- 31,379 Net Current Assets 33,400 27,342 ---------- --------- -------- 102,239 Total Assets less current 119,613 112,117 liabilities (57,576) Creditors (amounts falling due after (52,972) (59,407) one year) (2,614) Provisions for liabilities and (2,424) (4,509) charges ---------- --------- -------- 42,049 Net Assets 64,217 48,201 ========== ========= ======== Capital and reserves 7,073 Called up share capital 7,073 7,073 23,345 Profit and loss account 39,558 22,797 9,646 Capital reserves 12,059 13,509 363 Revaluation reserve 1,811 2,565 ---------- --------- -------- 40,427 Equity shareholders' funds 60,501 45,944 1,622 Minority interests 3,716 2,257 ---------- --------- -------- 42,049 Total capital employed 64,217 48,201 ========== ========= ======== 118.9p Net assets per share 181.6p 129.9p Ocean Wilsons Holdings Limited Interim Announcement Consolidated Cash Flow Statement for the six months ended 30 June 2003 Unaudited as at Unaudited as at Audited 30 June 2003 30 June 2002 Year to 31 December 2002 £'000 Note £'000 £'000 24,668 Net cash inflow from operating 4 7,655 9,268 activities 1,691 Dividends from joint ventures 1,678 765 2,168 Returns on investments & servicing (70) 51 of finance (4,614) Taxation (3,289) (957) (13,225) Capital expenditure and financial (3,854) (9,412) investment (46) Acquisitions and disposals 301 (22) (2,122) Equity dividends paid (1,768) (1,768) ---------- -------- --------- 8,520 Cash inflow/(outflow) before 653 (2,075) management of liquid resources and financing ---------- -------- --------- (11,516) Management of liquid resources 936 (1,681) 4,565 Financing (2,779) 3,493 ---------- -------- --------- 1,569 (Decrease) / Increase in cash in (1,190) (263) ========== period ======== ========= Exchange rates used Average 4.40 Brazillian $Real to Sterling 5.18 3.53 1.51 US Dollar to Sterling 1.61 1.45 Period End 5.70 Brazillian $Real to Sterling 4.73 4.35 1.61 US Dollar to Sterling 1.65 1.52 3.54 Brazillian $Real to US Dollar 2.87 2.86 Notes to the Interim Accounts 1 In respect of the six monthly results, which are based on unaudited reports for management purposes. (a) The figures are not the Company's statutory accounts; (b) The auditors of the Company have not made any report thereon under section 90(2) of the Bermuda Companies Act. (c) The accounts have been prepared using accounting policies consistent with those set out in the most recent audited financial statements ended 31 December 2002. 2 Taxation Audited 2003 2002 Year to 31 six months to six months to December 2002 30 June 30 June £'000 £'000 £'000 - UK tax - (223) Overseas tax 6,304 (1,204) --------- --------- --------- (223) 6,304 (1,204) --------- --------- --------- 3 Prior Year end adjustment The group policy for translating the profit and loss account into sterling was changed during 2002 from the year end exchange rate to the average rate for the year. The directors consider that the new policy provides a fairer presentation of the result as income is earned throughout the period. The comparative figures in the primary statements and notes have been restated to reflect the new policy. Audited The effects of the new 2003 2002 Year to 31 policy are summarised six months to six months to December below. 30 June 30 June 2002 £'000 £'000 £'000 Profit and Loss account 18,393 (Decrease)/increase in (3,896) 7,715 group turnover 4,878 (Decrease)/increase in (1,009) 1,497 operating profit 390 Decrease in financial (1,404) (278) profit / (loss) for the period Statement of total recognised gains and losses (390) Increase/(decrease) in 1,404 278 foreign currency translation Balance Sheet Increase/(decrease) in net - - assets ------- --------- --------- Audited 4 Reconcilliation of Unaudited Unaudited Year to 31 operating profit to net six months to six months to December cash inflow 30 June 30 June 2002 from operating 2003 2002 activities (restated refer note 3) £'000 £'000 £'000 18,099 Operating profit 9,627 6,610 4,550 Depreciation 2,100 2,938 37 Amortisation 16 23 3 Increase in stocks (546) (278) 1,558 (Increase)/decrease in (3,858) 2,887 debtors 567 Increase/(decrease) in 75 (2,785) creditors (146) Increase/(decrease) in 241 (117) provisions ------- --------- --------- 24,668 Net cash inflow from 7,655 9,268 ======= operating activities ========= ========= 5 The interim dividends of 1.00p per share will be paid on the 31 October 2003, to shareholders on the register at close of business on 10 October 2003. Additional copies of this announcement can be obtained from the company's registered office, Clarendon House, Church Street, Hamilton, Bermuda or from the Company's UK transfer agent, Capita Registrars, The Registry, 34 Beckenham Road, Kent BR3 4TU This information is provided by RNS The company news service from the London Stock Exchange

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