Interim Results
Reliance Security Group PLC
30 November 2006
EMBARGOED UNTIL 7.00 AM
THURSDAY 30 NOVEMBER 2006
PRESS RELEASE
Reliance Security Group plc
Interim Results for the six months to
27 October 2006
•Turnover up 5.5% to £165.9 m (2005: £157.4m)
•Profit before tax up 2.7% to £5.9m (2005: £5.8m pre exceptionals*)
•Forward Facilities Management order book £724m (£716m at April 2006)
•Earnings per share up 11.2% to 19.8p (2005:17.8p pre exceptionals*)
•Dividend per share up 6.7% to 4.8p (2005: 4.5p)
Brian Kingham, Chairman commenting on the results said:
'The first half year has delivered to our expectations with steadily improving
market conditions, increased sales and a gradual build up in new business
prospects. The uncertainties surrounding private security regulation are lifting
and we have seen improved market conditions and new business wins. Our
facilities management and business process outsourcing activities, in which we
are continuing to invest, have enjoyed increased sales in this large and growing
market'
Notes to Editors
Reliance is an established market leader in the provision of contract security,
facilities management, support services, and business process outsourcing.
Reliance employs over 12,000 people from a network of offices throughout the UK.
For further information:
Julian Nicholls Managing Director 01895 205 002
Mark Harrison Group Finance Director 01895 205 002
(* 2005 comparatives have been restated for the effect of adoption of FRS 20
accounting standard on share options)
Chairman's interim statement
for the six months ended 27 October 2006
The first half year has delivered to our expectations with steadily improving
market conditions, increased sales and a gradual build up in new business
prospects. The uncertainties surrounding private security regulation are lifting
and we have seen improved market conditions and new business wins. Our
facilities management and business process outsourcing activities, in which we
are continuing to invest, have enjoyed increased sales in this large and growing
market.
Results
Turnover for the six months to 27 October 2006 increased by 5.5% to £165.9
million (2005: £157.4 million). Pre-tax profit was £5.9 million (2005: £5.8
million pre exceptionals) and earnings per share were 19.8p (2005:17.8p pre
exceptionals). Cash flow has again been strong and, with £1.6 million cash
generated in the first half, we ended the half-year with net cash of £22.7
million (April 2006: £21.1 million). There were no exceptional items during the
period (2005: £1.5 million, primarily relating to net costs incurred in
preparing for security industry regulation)
Dividend
The directors have decided to pay an increased interim dividend of 4.8p per
share (2005: 4.5p), payable on 19 January 2007 to shareholders on the register
at 29 December 2006.
Security Services
Turnover was up 5.4% at £98.9million (2005: £93.8 million). Segment operating
profit was £1.6 million (2005: £1.3 million pre exceptional), reflecting a
strong performance in our manned security business. As a result, operating
margin, the ratio of segment profit to turnover, increased to 1.6% (2005:1.3%).
Effective control over working capital, which excludes cash balances, resulted
in net operating liabilities of £0.3 million (2005: £1.6 million).
The new management team is now fully established and has made excellent progress
in bringing renewed vigour to our work to innovate in customer care, people
development and teamwork. We have won important long-term contracts with
Sainsbury's, Pilkington, DHL, Deloitte and others.
Regulation of the private security industry, which became effective in March
2006, continues to have a positive impact. With welcome support from our
Regulator, the Security Industry Authority, recovery of the substantial
additional costs incurred in complying with regulation has been negotiated with
our customers and is now largely reflected in our terms of business. This new
environment, whilst heralding higher costs for our customers, with increased
pressure for substitution, has helped to widen the market for our services. It
has given further impetus to the development of the 'wider policing' family and
a mixed economy of public, private, charitable and 'not for profit' provision of
policing and security services.
Facilities Management
Turnover was up 5.5% at £67.1 million (2005: £63.6 million) due to both new
contract starts and growth in existing contracts.
Segment operating profit was £4.2 million (2005: £3.9 million) and segment
operating margin was 6.2% (2005: 6.1%). During the period we have improved the
profitability of continuing contracts. Overheads increased, reflecting further
investment in business development resources to drive continuing growth.
We maintained effective control over working capital and, with no significant
increase in our contract start-up costs, we have reduced our operating assets
over the past twelve months by 3.0%.
The first half has been a busy period; not only have we increased our pipeline
of opportunities, but we have mobilised a number of important contracts,
including with Infineum UK Limited, the AA, Panasonic, Slough Shopping Centre
and Indesit. We also participated in the ground breaking ceremony for our new 30
year PFI contract with the Kent Police Authority.
At the end of the half-year, our forward order book (being the sales value of
contracts currently in hand over the remaining life of those contracts) had
increased slightly to £724 million (April 2006: £716 million).
People
The Reliance Academy has continued to support the enhancement of our people's
knowledge and performance. In September we were delighted to be recognised by
the Corporate Research Foundation as one of the best companies in Britain to
work for. We are profiled in Guardian Books 'Britain's Top Employers'.
As previously announced we welcomed Mark Harrison as Group Finance Director on
10 October 2006, having previously been chief financial officer of ACR Logistics
UK (formerly Hays Logistics) until its sale earlier this year. Neil French our
former Group Finance Director, and latterly non executive director, resigned
from the board on 6 October 2006. I take this opportunity to thank Neil for his
fantastic support and his work in building the strong financial management
regime that we now enjoy.
We continue to strengthen our operating company boards. In July 2006, we were
delighted to welcome Mark Underwood as Managing Director of Reliance Secure Task
Management Ltd. Mark has a record of success in setting up large, complex
outsourced operations and brings us specialist experience in IT solutions. In
September 2006 we welcomed Peter Fisher as Managing Director of Reliance
Integrated Services Ltd. Peter, formerly with the AA, brings to the Group strong
marketing skills and service industry branding expertise.
Outlook
The security services market continues to adjust to the higher costs of a
regulated environment. There are new market opportunities and a ready demand for
substitution and technological change which the Group is well resourced to meet.
We anticipate further improvement in market conditions favouring a greater
emphasis on higher value added services, as well as longer term contractual
relationships with customers.
Our markets in facilities management and business process outsourcing are large
and diverse. We have continued to invest in new skills and technologies to meet
customer demands for innovation and change and we look forward to continuing
steady growth.
The Group remains well positioned for long-term growth and the board's
expectations for the full year remain unchanged.
Brian Kingham
Chairman
30 November 2006
INDEPENDENT REVIEW REPORT TO RELIANCE SECURITY GROUP PLC
Introduction
We have been instructed by the company to review the financial information for
the 26 week period ended 27 October 2006 which comprises the consolidated profit
and loss account, the consolidated statement of total recognised gains and
losses, the consolidated balance sheet, the consolidated cash flow statement and
related notes 1 to 10. 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.
This report is made solely to the company, in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the company, for our review work, for this report, or for the conclusions we
have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are also responsible for ensuring that the accounting policies and presentation
applied to the interim figures are consistent with those applied in preparing
the preceding annual accounts except where any changes, and the reasons for
them, are disclosed.
Review work performed
We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. 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 excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with International Standards on Auditing (UK and
Ireland) 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 26 week period
ended 27 October 2006.
Deloitte & Touche LLP
Chartered Accountants
London
30 November 2006
Reliance Security Group plc
Consolidated profit and loss account
for the six months ended 27 October 2006
Unaudited Unaudited Audited
Restated (*) Restated (*)
Six months to Six months to Year to
27 October 28 October 28 April
2006 2005 2006
Notes £'000 £'000 £'000
--------------------- ------ --------- --- ---------- --------- --------
Turnover: Group and
share of joint venture
- excluding exceptional
item 3 165,948 157,360 317,483
- exceptional item 4 - - 758
--------------------- ------ --------- --- ---------- --------- --------
165,948 157,360 318,241
Less: share of joint
venture's turnover (714) - (259)
--------------------- ------ --------- --- ---------- --------- --------
Group turnover 3,4 165,234 157,360 317,982
---------- --------- --------
Cost of sales
- excluding exceptional
item (134,320) (128,273) (257,598)
- exceptional item 4 - (1,244) (3,828)
---------- --------- --------
Total cost of sales (134,320) (129,517) (261,426)
--------------------- ------ --------- --- ---------- --------- --------
Gross profit 30,914 27,843 56,556
---------- --------- --------
Administrative expenses
- excluding exceptional
items (26,214) (24,455) (48,835)
- exceptional items 4 - (264) (398)
---------- --------- --------
Total administrative
expenses (26,214) (24,719) (49,233)
--------------------- ------ --------- --- ---------- --------- --------
Group operating profit
excluding share of
joint venture and associate 4,700 3,124 7,323
---------- --------- --------
Share of joint
venture's operating profit/(loss) 3 344 (90) 154
Share of associate's operating profit 3 755 598 1,274
---------- --------- --------
Total share of operating profits of joint
venture and associate 1,099 508 1,428
--------------------- ---------- --------- --------
Operating profit: Group and share of
joint venture and associate 3 5,799 3,632 8,751
--------------------- ---------- --------- --------
Finance income/(charges) ---------- --------- --------
Group 480 632 1,050
Joint venture (350) - (137)
Associate 8 8 13
---------- --------- --------
Net finance income 138 640 926
--------------------- ---------- --------- --------
Profit on ordinary activities before
taxation 5,937 4,272 9,677
Tax on profit on ordinary
activities 5 (1,784) (1,281) (2,830)
--------------------- ---------- --------- --------
Profit on ordinary
activities after
taxation
and for the period 7 4,153 2,991 6,847
--------------------- ---------- --------- --------
Earnings per ordinary share
Basic 6 19.8p 13.1p 30.9p
--------------------- ---------- --------- --------
Diluted 6 19.4p 13.1p 30.9p
--------------------- ---------- --------- --------
Dividend per ordinary
share
for the period 4.8p 4.5p 20.0p
--------------------- ---------- --------- --------
All of the activities of the Group are classed as continuing.
(*) The restatements relate to the adoption of FRS 20 as set out in note 2.
Reliance Security Group plc
Consolidated statement of total recognised gains and losses
for the six months ended 27 October 2006
Unaudited Unaudited Audited
Six months to Restated (*) Restated (*)
27 October Six months to Year to
2006 28 October 28 April
2005 2006
-------------------------- ------ --------- --- --------- ---------
Note £'000 £'000 £'000
-------------------------- ------ --------- --- --------- ---------
Profit/(loss) for
the period
- Group 3,625 2,657 5,943
--------- --- --------- ---------
- Joint venture (6) (90) 17
- Associate 534 424 887
--------- --- --------- ---------
Total recognised
gains and losses
relating to the
period 4,153 2,991 6,847
--------- ---------
Prior year
adjustment in
respect of
adoption of FRS 20 2 139
-------------------------- ------ --------- --- --------- ---------
Total recognised
gain since last
financial
statements 4,292
-------------------------- ------ --------- --- --------- ---------
(*) The restatements relate to the adoption of FRS 20 as set out in note 2.
Reliance Security Group plc
Consolidated balance sheet
as at 27 October 2006
Unaudited Unaudited Audited
Restated (*) Restated (*)
27 October 28 October 28 April
2006 2005 2006
Note £'000 £'000 £'000
-------------------------- ----- --------- --------- --------
Fixed assets
Tangible assets 5,511 5,702 5,445
Investments
--------- --------- --------
Share of gross assets of 10,402 10,290 10,602
joint venture
Share of gross liabilities
of joint venture (10,524) (10,513) (10,718)
--------- --------- --------
Share of net liabilities
of joint venture (122) (223) (116)
Associated undertaking 131 231 135
Others 1,702 467 1,701
--------- --------- --------
Total investments 1,711 475 1,720
7,222 6,177 7,165
Current assets
Stocks 1,714 1,468 1,725
Debtors: amounts due
within one year 40,755 34,841 36,488
Debtors: amounts due after
more than
one year 3,474 4,718 3,493
Cash at bank and in hand 22,831 33,452 24,557
68,774 74,479 66,263
Liabilities: amounts falling due within one year
Borrowings (61) (3,379) (3,376)
Creditors (45,985) (41,630) (41,250)
Corporation tax (2,257) (1,793) (2,069)
-------------------------- ----- --------- --------- --------
(48,303) (46,802) (46,695)
-------------------------- ----- --------- --------- --------
Net current assets 20,471 27,677 19,568
-------------------------- ----- --------- --------- --------
Total assets less current
liabilities 27,693 33,854 26,733
Liabilities: amounts
falling due after more
than one year
Borrowings (93) (154) (124)
Other creditors (60) (23) (44)
-------------------------- ----- --------- --------- --------
(153) (177) (168)
-------------------------- ----- --------- --------- --------
Net assets 27,540 33,677 26,565
-------------------------- ----- --------- --------- --------
Capital and reserves
Called up share capital 1,095 1,165 1,095
Capital redemption reserve 70 - 70
Share premium account 2,534 2,534 2,534
Own shares held (5,025) (2,825) (5,025)
Revaluation reserve 232 152 232
Share option reserve 229 85 157
Profit and loss account 28,405 32,566 27,502
-------------------------- ----- --------- --------- --------
Equity shareholders' funds 7 27,540 33,677 26,565
-------------------------- ----- --------- --------- --------
(*) The restatements relate to the adoption of FRS 20 as set out in note 2.
Reliance Security Group plc
Consolidated cash flow statement
for the six months ended 27
October 2006
Unaudited Unaudited Audited
Six months to Six months to Year to
27 October 28 October 28 April
2006 2005 2006
Notes £'000 £'000 £'000
--------------------------- ------ --------- --------- -------
Net cash inflow from
operating activities 8 6,183 8,367 11,835
--------------------------- --------- --------- -------
Dividends from associate 539 441 1,005
--------------------------- ------ --------- --------- -------
Returns on investment and
servicing of finance
Interest received 602 710 1,238
Interest paid (98) (137) (281)
Interest element of finance
lease repayments (8) (22) (31)
--------------------------- ------ --------- --------- -------
Net cash inflow from returns on
investment and servicing of
finance 496 551 926
--------------------------- ------ --------- --------- -------
Taxation
UK corporation tax paid (1,384) (2,033) (3,399)
--------------------------- ------ --------- --------- -------
Capital expenditure and
financial investment
Purchase of tangible fixed
assets (962) (472) (1,389)
Sale of tangible fixed
assets - 4 18
Loan advanced to joint
venture - (1,122) (1,122)
Purchase of fixed asset
investment (2) - -
--------------------------- ------ --------- --------- -------
Net cash outflow from capital
expenditure and financial investment (964) (1,590) (2,493)
--------------------------- ------ --------- --------- -------
Equity dividends paid (3,250) (3,301) (4,245)
--------------------------- ------ --------- --------- -------
Net cash inflow before
financing 1,620 2,435 3,629
--------------------------- ------ --------- --------- -------
Financing
Payments to redeem equity
shares - - (7,660)
Payments to acquire
treasury shares - - (2,200)
Payments of expenses on
redemption of equity shares
and acquisition of treasury shares - - (236)
Repayment of ESOP loan (3,315) - -
Capital element of finance
lease repayments (31) (90) (83)
--------------------------- ------ --------- --------- -------
Net cash outflow from
financing (3,346) (90) (10,179)
--------------------------- ------ --------- --------- -------
(Decrease)/increase in cash
in the period (1,726) 2,345 (6,550)
--------------------------- ------ --------- --------- -------
Reconciliation of cash flow to
movement in net cash
(Decrease)/increase in cash
in the period (1,726) 2,345 (6,550)
Repayment of ESOP loan 3,315 - -
Cash flow from finance
leases 31 (155) (122)
--------------------------- ------ --------- --------- -------
Movement in net cash in the
period 1,620 2,190 (6,672)
Net cash at start of period 21,057 27,729 27,729
--------------------------- ------ --------- --------- -------
Net cash at end of period 9 22,677 29,919 21,057
--------------------------- ------ --------- --------- -------
Reliance Security Group plc
Notes
1 Preparation of interim report
The financial information for the 26 weeks ended 27 October
2006 and ended 28 October 2005 is unaudited and does not
constitute full accounts within the meaning of the Companies
Act 1985. The financial information for the 52 weeks ended 28
April 2006 does not constitute statutory accounts but has been
extracted from the full accounts for that year which have been
delivered to the Registrar of Companies. The auditors' report
was unqualified and did not contain a statement under Section
237(2) or (3) of the Companies Act 1985.
The financial years of all Group companies are the 52 or 53
weeks up to the Friday before, or falling on, the accounting
reference date of 30 April.
2 Principal accounting policies
The results for the 26 weeks ended 27 October 2006 have been
prepared using the same accounting policies set out in the
Annual Report and Accounts for the year ended 28 April 2006
with the exception of the adoption of Financial Reporting
Standard 20 Share-based payment (FRS 20).
The Group had previously estimated the value of its share
options in accordance with UITF 17 Employee Share Schemes. The
adoption of FRS 20 has resulted in the Group restating its
operating profit, net assets and reserves for the prior periods
to reflect the revised basis of calculating the charges and
liabilities relating to its share options issued since November
2002. Under FRS 20 equity-settled share based payments are
measured at fair value at the date of grant and this is
expensed on a straight-line basis over the vesting period,
based on the Group's estimate of the shares that will
eventually vest. In addition, the Group has estimated the
corresponding charge to class 1A National Insurance
Contributions (NIC) which will arise on its estimate of the
number of shares which will eventually vest. Deferred tax is
recognised in respect of the total charge made.
A transfer to a share option reserve is made each period to
match the fair value of the share options which has been
charged to the profit and loss account. The Group's estimated
liability to NIC is held as a creditor on the balance sheet.
The adoption of FRS 20 has resulted in a lower profit and loss
account charge than under UITF 17. The charges for the periods
ended 28 April 2006 and 28 October 2005 are £70,000 and £63,000
lower before tax respectively and £49,000 and £44,000 lower
after tax respectively.
The opening net assets and reserves for the periods ended 28
April 2006 and 28 October 2005 have been increased by £147,000
to reflect the cumulative effect of the implementation of FRS
20 on the prior periods, while the opening net asset position
for the period ending 27 October 2006 has increased by
£296,000. The increases in closing net assets and reserves for
28 April 2006 and 28 October 2005 were £149,000 and £72,000
respectively, reflecting the restatement of profit after tax
and a transfer made to the share option reserve of £100,000 and
£28,000 respectively.
The net impact of the cumulative effect of implementation of
FRS 20 on the opening net assets, the restated profit after tax
and the transfer to the share option reserve have created an
opening balance for the six months ended 27 October 2006 on the
share option reserve of £157,000 and increased the opening
balance on the profit and loss reserve by £139,000, which has
been recorded as a prior year adjustment in the statement of
total recognised gains and losses.
3 Segmental information
Restated (*)
Six Months to 27 October 2006 Six Months to 28 October 2005
-------------------- -------------------
Security Facilities Total Security Facilities Total
Services Management Services Management
£'000 £'000 £'000 £'000 £'000 £'000
------------------ -------- --------- ------- -------- -------- -------
Group turnover 98,862 66,372 165,234 93,790 63,570 157,360
------------------ -------- --------- ------- -------- -------- -------
Share of joint
venture's
turnover - 714 714 - - -
------------------ -------- --------- ------- -------- -------- -------
Turnover:
Group and
share of joint
venture 98,862 67,086 165,948 93,790 63,570 157,360
------------------ -------- --------- ------- -------- -------- -------
Group
operating
profit before
exceptional
items,
excluding
share of joint
venture and
associate 1,631 3,069 4,700 1,252 3,380 4,632
-------- --------- ------- -------- -------- -------
Share of joint
venture's
operating
profit /(loss) - 344 344 - (90) (90)
Share of
associate's
operating
profit - 755 755 - 598 598
-------- --------- ------- -------- -------- -------
Total share of
operating
profits of
joint venture
and associate
before
exceptional
items - 1,099 1,099 - 508 508
------------------ -------- --------- ------- -------- -------- -------
Operating
profit before
exceptional
items: Group
and share of
joint venture
and associate 1,631 4,168 5,799 1,252 3,888 5,140
------------------ -------- --------- ------- -------- -------- -------
Group
operating
exceptional
items - - - (1,371) (137) (1,508)
------------------ -------- --------- ------- -------- -------- -------
Profit/(loss)
on ordinary
activities
before finance
income/(charges) 1,631 4,168 5,799 (119) 3,751 3,632
------------------ -------- --------- ------- -------- -------- -------
In accordance with the equity method adopted for accounting for associates,
Group turnover excludes its share of turnover of its associated undertaking of
£14,908,005 (2005: £10,502,000).
(*) See note 2
3 Segmental information (continued)
Restated (*)
Six Months to 27 October 2006 Six Months to 28 October 2005
------------------ -------------------
Security Facilities Total Security Facilities Total
Services Management Services Management
£'000 £'000 £'000 £'000 £'000 £'000
------------------ ------- --------- ------ ------- -------- --------
Group
operating
assets/(liabilities) (252) 4,894 4,642 (1,607) 5,046 3,439
Share of joint
venture's net
liabilities - (122) (122) - (223) (223)
Share of
associate's
net assets - 131 131 - 231 231
------------------ ------- --------- ------ ------- -------- --------
Total
operating
assets/(liabilities) (252) 4,903 4,651 (1,607) 5,054 3,447
------------------ ------- --------- ------ ------- -------- --------
Reconciliation of
total operating
assets to total
net assets:
Total
operating
assets 4,651 3,447
Items excluded:
Net cash 22,677 29,919
Investments in
other
participating
interests 581 467
Amounts due
from joint
venture 1,122 1,122
Taxation
payable (2,257) (1,793)
Deferred
taxation 710 402
Net interest
receivable 56 113
--------------- ---------- --------- ------ ------- -------- --------
Total net
assets (*) 27,540 33,677
--------------- ---------- --------- ------ ------- -------- --------
Operating assets are those net assets controlled by Reliance's operating
divisions.
(*) See note 2.
4 Exceptional items
Unaudited Unaudited Audited
Six months to Six months to Year to
27 October 28 October 28 April
2006 2005 2006
£'000 £'000 £'000
-------------------------- ---------- --------- --------
Turnover
Revenue received towards cost of
implementation of Private
Security Industry Act - - 758
Cost of sales
Cost of preparation for
implementation of Private
Security Industry Act - (1,244) (3,828)
Administrative expenses
---------- --------- --------
Cost of preparation for
implementation of Private
Security Industry Act - (179) (312)
Legal and professional costs of
re-listing on AIM - (85) (86)
---------- --------- --------
- (264) (398)
-------------------------- ---------- --------- --------
Total exceptional charge - (1,508) (3,468)
Tax credit on exceptional charge - 453 1,040
-------------------------- ---------- --------- --------
- (1,055) (2,428)
-------------------------- ---------- --------- --------
All revenue and expenditure relating to compliance with the Private Security
Industry Act 2001 has been treated as regular, non-exceptional items within
turnover, cost of sales and administrative expenses since the Act came into
force on 20 March 2006.
5 Taxation
Corporation tax for the six months to 27 October 2006 has been
calculated using an effective rate of 30% (six months ended 28 October
2005: 30%, year ended 28 April 2006: 29%).
6 Earnings per share
Unaudited Unaudited Audited
Restated (*) Restated (*)
--------------- --------------- --- ---------------
Six months ended Six months ended Year to
27 October 2006 28 October 2005 28 April 2006
--------------- --------------- --- ---------------
Basic Diluted Basic Diluted Basic Diluted
pence pence pence pence pence pence
per per per per per per
£'000 share share £'000 share share £'000 share share
--------------- ------ ------ ------- ------ ------ ------- --- ------ ------ -------
Profit for the
period
attributable
to equity
shareholders 4,153 19.8p 19.4p 2,991 13.1p 13.1p 6,847 30.9p 30.9p
Add back:
Exceptional
items (see
note 4) - - - 1,055 4.7p 4.7p 2,428 11.0p 11.0p
--------------- ------ ------ ------- ------ ------ ------- --- ------ ------ -------
Earnings
excluding
exceptional
items 4,153 19.8p 19.4p 4,046 17.8p 17.8p 9,275 41.9p 41.9p
--------------- ------ ------ ------- ------ ------ ------- --- ------ ------ -------
(*) See note 2
Unaudited Unaudited Audited
----------- -----------
---------
Six months Six months Year to 28
ended 27 ended 28 April 2006
October 2006 October 2005
Number Number Number
-------------------------- ----------- ----------- ---------
Weighted
average number
of shares 21,912,855 23,305,592 22,808,186
Weighted
average number
of shares held
in treasury (400,000) - (142,857)
-------------------------- ----------- ----------- ---------
Weighted
average number
of shares held
in ESOP trust (542,599) (542,599) (542,599)
-------------------------- ----------- ----------- ---------
Shares used to
calculate
basic earnings
per share 20,970,256 22,762,993 22,122,730
Dilutive
potential
shares 417,170 - -
-------------------------- ----------- ----------- ---------
Shares used to
calculate
diluted
earnings per
share 21,387,426 22,762,993 22,122,730
-------------------------- ----------- ----------- ---------
7 Reconciliation of movement in equity shareholders' funds
Unaudited Unaudited Unaudited
Six months to Year ended Six months to
28 October 28 April 27 October
2005 2006 2006
£'000 £'000 £'000
-------------------------------- --------- --------- ----------
At start of the
period as
previously stated 33,812 33,812 26,269
Prior period
adjustments as a
result of
adoption of FRS20(*) 147 147 296
-------------------------------- --------- --------- ----------
At start of
period as
restated (*) 33,959 33,959 26,565
Purchase of own
shares - (10,096) -
Profit on
ordinary
activities after
taxation 2,991 6,847 4,153
Share based
payments 28 100 72
Dividends paid (3,301) (4,245) (3,250)
-------------------------------- --------- --------- ----------
At end of the
period as
restated (*) 33,677 26,565 27,540
-------------------------------- --------- --------- ----------
Called Capital Share Own Revaluation Share Profit Six months
up redemption premium shares reserve option and loss to 27
share reserve account held reserve account October
capital 2006
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
---------- ------- -------- ------- ------ -------- ------ ------ ---------
At start of
the period
as
previously
stated 1,095 70 2,534 (5,025) 232 - 27,363 26,269
Prior
period
adjustments
as
a result of
adoption of
FRS20 (*) - - - - - 157 139 296
---------- ------- -------- ------- ------ -------- ------ ------ ---------
At start of
period as
restated
(*) 1,095 70 2,534 (5,025) 232 157 27,502 26,565
Purchase of
own shares - - - - - - - -
Profit on
ordinary
activities
after
taxation - - - - - - 4,153 4,153
Share based
payments - - - - - 72 - 72
Dividends
paid - - - - - - (3,250) (3,250)
---------- ------- -------- ------- ------ -------- ------ ------ ---------
At end of
the
period as
restated
(*) 1,095 70 2,534 (5,025) 232 229 28,405 27,540
---------- ------- -------- ------- ------ -------- ------ ------ ---------
In accordance with S.264 Companies Act 1985 the value of own shares held must be
deducted from the profit and loss account of the Company in calculating its
distributable reserves.
(*) See note 2
8 Reconciliation of operating profit to net cash inflow from operating activities
Unaudited Unaudited Audited
Restated(*) Restated(*)
Six months Six months Year
ended ended ended
27 October 28 October 28 April
2006 2005 2006
£'000 £'000 £'000
--------- -------- -------- --------
Operating profit 4,700 3,124 7,323
Depreciation charges 893 1,151 2,272
Loss/(profit) on disposal of fixed assets 4 (2) (3)
Share option expense 72 28 100
Decrease/(increase) in stocks 11 (3) (260)
(Increase)/decrease in debtors (4,248) 3,622 2,317
Increase in creditors 4,751 447 86
-------------------- --------- -------- -------- --------
Net cash inflow from operating
activities 6,183 8,367 11,835
----------------- ----- --------- -------- -------- --------
(*) See note 2
9 Analysis and reconciliation of net cash
Audited Unaudited
-------- --------------
28 April Cash 27 October
2006 flow 2006
£'000 £'000 £'000
-------------------- --------- -------- -------- --------
Cash at bank and in hand 24,557 (1,726) 22,831
-------------------- --------- -------- -------- --------
Loan due within one year (3,315) 3,315 -
Finance leases (185) 31 (154)
--------------------------- -------- -------- --------
Total borrowings (3,500) 3,346 (154)
----------------- ----- --------- -------- -------- --------
Net cash 21,057 1,620 22,677
----------------- ----- --------- -------- -------- --------
10 Distribution
A copy of the financial information will be sent to all shareholders. Copies are
available to the public from the Company's registered office at Boundary House,
Cricketfield Road, Uxbridge, Middlesex, UB8 1QG or from the Company's website
www.reliancesecurity.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
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