RNS Number:2976J
ACM Shipping Group PLC
06 December 2007
Press Release 6 December 2007
ACM Shipping Group plc
("ACM" or the "Group")
Interim Announcement for the half year ended 30 September 2007
ACM Shipping Group plc, a leading international tanker broker, today announces
its interim results for the half year ended 30 September 2007.
Highlights
* Revenue in US dollars up 9.7% to US$13.8m (2006: US$12.6m)
* Profit before tax #1.7m (2006: #1.2m)
* Interim dividend of 2p per share
* Time charter forward order book at record level
* Strongly cash positive with #3.1m cash in bank
* New office formally opens in India this month
* Acquisition of ACM Shipping Services
Commenting on the results, Johnny Plumbe, Chief Executive of ACM Shipping Group
plc, said: "I am delighted with these strong results. They reflect the
continued growth and success of the business. We have significantly increased
our profit, despite the weakness of the US dollar and our order book for time
charter is in a very strong position. We continue to expand the business as we
enter new markets and I look forward to the exciting opportunities being
created."
- Ends -
For further information, please contact:
ACM Shipping Group plc
Johnny Plumbe, Chief Executive Tel: +44 (0) 20 7930 7555
Ian Hartley, Finance Director
jplumbe@acmshipping.co.uk www.acmshippinggroup.com
ihartley@acmshipping.co.uk
Noble & Company Limited
Matthew Hall / John Llewellyn-Lloyd Tel: +44 (0) 20 7763 2200
matthew.hall@noblegp.com www.noblegp.com
Media enquiries:
Abchurch
Charlie Jack / Stephanie Cuthbert Tel: +44 (0) 20 7398 7700
charlie.jack@abchurch-group.com www.abchurch-group.com
Chairman and Chief Executive's statement
Results
The business has continued to grow strongly during the first six months of the
current year. Our core revenue from ship broking has increased in US dollar
terms by 9.7% to US$13.8m (2006: US$12.6m). We have executed a similar number
of spot fixtures as in the same period last year and our forward income from
time charters is yet again at a record level.
Our joint venture and associated activities have provided an increased
contribution. ACM Shipping Services (Sale & Purchase) has delivered strong
growth and the contribution from the joint venture with GFI Brokers (freight
derivatives) has also increased. Profit before taxation increased to #1.7m
(2006: #1.2m) despite the continuing weakness of the US dollar, which had an
adverse effect on our sterling equivalent revenues. Earnings per share was 7.1
pence (2006: 4.7 pence).
The business remains very cash generative with #2.5m earned in the half year and
our current level of cash is #3.1m.
Dividend
In line with our commitment to a progressive dividend policy we are paying a
dividend of 2 pence per share for the first 6 months of the year. This dividend
is payable on 25 February 2008 to shareholders on the register as at 25 January
2008.
Strategy
ACM's strategy is to expand into an international diversified and integrated
shipping services broker, whilst continuing its position as one of the most
profitable firms in the tanker broker business. Our aim is to build the right
team of brokers to penetrate regional markets and other shipping sectors. This
strategy will allow us to gain market share and grow our business with existing
and new clients.
Current trading
Trading to date is in line with the Board's expectations. Our business remains
promising and the new areas into which we are moving are progressing well. Our
new office in India formally opens later this month. As announced today, ACM's
acquisition of ACM Shipping Services creates a powerful force in the sale &
purchase market.
Peter Sechiari Johnny Plumbe
Chairman Chief Executive
Unaudited consolidated profit and loss account
Half year to Half year to Year
to
30 September 30 September 31
March
2007 2006
2007
Note (restated)
(restated)
#'000 #'000
#'000
Revenue 2 6,896 6,799
13,502
Administrative expenses (6,118) (5,824)
(11,521)
Operating profit 778 975
1,981
Share of operating profits in joint
ventures and associates 3 802 171
1,480
1,580 1,146
3,461
Net interest receivable 102 25
215
Profit on ordinary activities before 1,682 1,171
3,676
taxation
Taxation on profit on ordinary 4 588 448
1,432
activities
Profit for the period 1,094 723
2,244
All of the activities of the ACM Shipping Group are classed as continuing.
Earnings per share
Basic and fully diluted 6 7.1p 4.7p
14.9p
Unaudited Group statement of recognised income and expense
Half year to Half year to
Year to
30 September 30 September
31 March
2007 2006
2007
(restated)
(restated)
#'000 #'000
#'000
Profit for the period 1,094 723
2,244
Actuarial gain in respect of defined benefit 365 -
297
pension scheme
Deferred tax in respect of defined benefit pension (110) -
(89)
scheme
Exchange differences on translation of foreign 31 -
17
operations
Currency reserve 35 10
5
Deferred tax in respect of currency reserve (10) -
-
Total recognised income and expense 1,405 733
2,274
Unaudited Group balance sheet
30 September 30 September 31
March
2007 2006
2007
(restated)
(restated)
#'000 #'000
#'000
Non-current assets
Property and equipment 423 484
445
Investments 1,975 597
1,981
Deferred tax asset 331 592
457
2,729 1,673
2,883
Current assets
Debtors 3,046 2,758
2,807
Cash and cash equivalents 3,098 2,255
566
6,144 5,013
3,373
TOTAL ASSETS 8,873 6,686
6,256
Current liabilities
Trade creditors and other payables (4,352) (3,690)
(2,669)
Current tax payable (509) (767)
(571)
Dividends payable (306) -
-
(5,167) (4,457)
(3,240)
Non-current liabilities
Deferred tax liabilities (44) (40)
(34)
Pension liability (1,103) (1,973)
(1,522)
(1,147) (2,013)
(1,556)
TOTAL LIABILITIES (6,314) (6,470)
(4,796)
NET ASSETS 2,559 216
1,460
Capital and reserves
Share capital 153 15
153
Merger reserve (135) -
(135)
Retained earnings 2,516 196
1,442
Currency reserve 25 5
-
TOTAL EQUITY 2,559 216
1,460
Unaudited Group statement of changes in equity
Share Share Merger Retained
Currency Total
capital premium reserve earnings
reserve
#'000 #'000 #'000 #'000
#'000 #'000
Balance at 1 April 2006 (as 15 - - (527)
(5) (517)
restated)
Profit for the period - - - 723
723
Currency reserve - - - -
10 10
Balance at 30 September 2006 (as 15 - - 196
5 216
restated)
Profit for the period - - - 1,521
- 1,521
Dividends to equity shareholders - - - (500)
- (500)
Share issue costs - (513) - -
- (513)
Actuarial gain in respect of - - - 297
- 297
defined benefit pension scheme
Deferred tax in respect of defined - - - (89)
- (89)
benefit pension scheme
Currency translation differences - - - 17
- 17
Creation of merger reserve 135 - (135) -
-
Currency reserve - - - -
(5) (5)
Issue of shares 3 513 - -
- 516
Balance at 31 March 2007 (as 153 - (135) 1,442
- 1,460
restated)
Profit for the period - - - 1.094
- 1.094
Dividends to equity shareholders - - - (306)
- (306)
Actuarial gain in respect of - - - 365
- 365
defined benefit pension scheme
Deferred tax in respect of defined - - - (110)
- (110)
benefit pension scheme
Currency translation differences - - - 31
- 31
Currency reserve - - - -
35 35
Deferred tax in respect of currency
(10) (10)
reserve
Balance at 30 September 2007 153 - (135) 2,516
25 2,559
Unaudited Group cash flow statement
Half year to Half year to
Year to
30 September 30 September
31 March
2007 2006
2007
(restated)
(restated)
#'000 #'000
#'000
Profit before taxation 1,682 1,171
3,676
Depreciation 78 71
143
Interest receivable (102) (25)
(215)
Shares of operating profits in joint ventures and (802) (171)
(1,480)
associates
Operating cashflow before changes in working capital 856 1,046
2,124
and provisions
(Increase) in debtors (238) (77)
(376)
Increase/(decrease) in creditors 1,771 (449)
(1,400)
Provision for pension scheme costs 87 -
188
Pension scheme contributions paid (93) -
(253)
Cash generated from operating activities 2383 520
283
Taxation paid (538) -
(1,007)
Net cash from operating activities 1,845 520
(724)
Cash flows from investing activities
Purchase of property and equipment (56) (31)
(64)
Investment -
(1,006)
Dividends received from associates 240 350
502
Amounts received from joint ventures 461 38
919
Interest received 42 52
110
Net cash used in investing activities 687 409
461
Cash flows from financing activities
Dividends paid - -
(500)
Issue of new shares, less share issue costs - -
3
Net cash used in financing activities - -
(497)
Net decrease in cash and cash equivalents 2,532 929
(760)
Cash and cash equivalents at the beginning of the 566 1,326
1,326
period
Cash and cash equivalents at the end of the period 3,098 2,255
566
1. Accounting policies
The consolidated condensed interim financial statements are for the six months
ended 30 September 2007. They have been prepared under the historical cost
convention and in accordance with current International Financial Reporting
Standards (IFRSs), and are covered by IFRS 1, "First-time Adoption of
International Financial Reporting Standards", because they are part of the
period covered by the Group's first IFRS financial statements for the year ended
31 March 2008. The interim financial statements are unaudited. These interim
statements have been prepared in accordance with IAS 34 "Interim Financial
Reporting".
The policies set our below have been consistently applied to all the periods
presented. The Group has made use of the exemption available under IFRS 1 where
cumulative translation differences for all foreign operations are deemed to be
zero at the date of transition. Additionally, as permitted by IFRS 1, the Group
has adopted IAS 31 "Financial instruments: disclosure and presentation" and IAS
39 "Financial instruments: recognition and measurement", prospectively from 1
April 2006
The Group's consolidated financial statements were prepared in accordance with
United Kingdom Generally Accepted Accounting Principles (UK GAAP) until 31 March
2007. UK GAAP differs in some areas from IFRS. In preparing the 2007
consolidated interim financial statements, management has amended certain
accounting and valuation methods applied in the UK GAAP financial statements to
comply with IFRS. The comparative figures in respect of prior periods were
restated to reflect these adjustments as disclosed in the reconciliations and
descriptions of the effect of the transition from UK GAAP to IFRS on the Group's
equity and its net income and cash flows are shown in Note 7.
The interim financial information has been prepared on the basis of the
recognition and measurement requirements of IFRS in issue that either are
endorsed by the EU and effective (or available for early adoption) at 31 March
2008 or are expected to be endorsed and effective (or available for early
adoption) at 31 March 2008, the Group's first annual reporting date at which it
is required to use adopted IFRSs. In addition, the adopted IFRS that will be
effective (or available for early adoption) in the annual financial statements
for the year ending 31 March 2008 are still subject to change and to additional
interpretations and therefore cannot be determined with certainty. Accordingly,
the accounting policies for that annual period will be determined finally only
when the annual financial statements are prepared for the year ending 31 March
2008.
The comparative figures for the year ended 31 March 2007, prior to the
adjustments required on transition to IFRS as described below and in Note 7,
have been extracted from the Group's financial statements, a copy of which has
been delivered to the Registrar of Companies. The auditors' report on those
statements was unqualified and did not include a statement under Section 237(2)
or (3) of the Companies Act 1985. The interim financial information does not
constitute statutory accounts as defined under Section 240 of the Companies Act
1985.
The adoption of the above IFRS did not result in substantial changes to the
Group's accounting policies under UK GAAP and as set out in the Group's
financial statements for the year ended 31 March 2007. In summary:
* IAS 1 "Presentation of Financial Statements" and IAS 7 "Cash Flow Statements" have
affected the overall
presentation and certain disclosures.
* IFRS "Operating Segments" has no material effect on the Group's policy. The Group
continues to operate
in only one business segment being that of tanker broking and this has been identified
as the Group's
primary segment. Geography is the Group's secondary segment.
* IAS 21 "The Effects of Changes in Foreign Exchange Rates" has meant that foreign
exchange gains and
losses following the sale of revenue income into Sterling is now treated within
administrative expenses
rather than within revenue.
* IAS 19 "Retirement Benefits" has meant that the Group no longer offsets the deferred tax
asset arising
from the pension deficit against the deficit but shows this asset separately within
non-current assets.
IFRS 3 "Business combinations" has no material impact as the merger in 2006 falls
outside the scope of
this standard.
* IAS 32 and 39 "Financial Instruments" has meant the Group now recognises the fair value
of forward
foreign exchange deals. The Group uses these deals to hedge its risk and the movement in
these assets
are taken to reserves.
The remaining standards are either not applicable to the business or have no
material effect on the Group's policies.
All other principal accounting policies of the Group are consistent with those
set out in the Annual Report and Accounts for 2007.
ACM Shipping Group plc was formed on 7 November 2006. The first statutory
accounts for ACM Shipping Group plc reflected the results for the year to 31
March 2007.
The consolidated financial statements include the accounts of ACM Shipping
Limited and its subsidiary and associated undertakings and joint venture
arrangements.
2. Segmental analysis
The Group has taken early adoption of IFRS8 "Operating Segments". The Group
operates in one business sector and does not report internally any segmental
information other than revenue streams. As a result no additional business
sector information is provided. Business is the Group's primary business
segment. Geographical information is not produced and is not readily available.
In view of management the cost of developing this information would be
excessive.
Analysis of Group's revenue;
Half year to Half year to
Year to
30 September 30 September
31 March
2007 2006
2007
#'000 #'000
#'000
Spot brokerage 4,128 4,466
8,357
Time charter 2,316 1,771
3,825
Demurrage 268 288
571
Sale and purchase 184 274
749
Joint ventures 6,896 6,799
13,502
3. Share of operating profits of joint ventures and associates
The Group's share of operating profits of joint ventures and associates was:
Half year to Half year to
Year to
30 September 30 September
31 March
2007 2006
2007
#'000 #'000
#'000
Joint ventures 444 38
919
Associates 358 133
561
Joint ventures 802 171
1,480
4. Taxation on profit on ordinary activities
The tax charge for the half year to 30 September 2007 has been provided at the
estimated rate applicable for the year.
5. Earnings per share
Earnings per share is calculated by dividing the profit attributable to equity
shareholders in the period ended by the weighted average number of shares in
issue during each relevant period, adjusting for the effect of the share
exchange. There were no dilutive ordinary shares.
The profit attributable to equity shareholders was #1,094,000 (2006 half year:
#723,000 and 2006 full year #2,244,000). The weighted average number of shares
in issue was 15,318,511 (2006 half year: 15,000,000 and 2006 full year:
15,100,353).
6. Dividends
The interim dividend for the half year ended 30 September 2007 is 2p per share
payable on 25 February 2008 to shareholders on the register on 25 January 2008.
A final dividend of 2p per share in respect of the period from 6 December 2006
(ACM's IPO date) to 31 March 2007 at a total value of #306,000 was paid on 9
October 2007. The directors of ACM Shipping Limited approved the payment of a
dividend to holders of shares in ACM Shipping Limited in respect of the six
months ended 30 September 2006 prior to Admission to AIM at a cost of #500,000.
7. Adoption of IAS
(i) Restatement of Balance Sheets
At 31 March 2006 At 30 September 2006 At
31 March 2007
(date of transition) (comparable interim period) (end of
previous year)
note Under Effect of Under Under Effect of Under Under
Effect of Under
UK GAAP transition IAS UK GAAP transition IAS UK GAAP
transition IAS
#'000 #'000 #'000 #'000 #'000 #'000 #'000
#'000 #'000
Non-current assets
Property and equipment 524 524 484 484 445
445
Investments a 420 573 993 181 416 597 1,320
661 1,981
Deferred tax asset b - 592 592 592 592 -
457 457
944 2,109 665 1,673 1,765
2,883
Current assets
Debtors a,c 3,092 (578) 2,514 3,169 (411) 2,758 3,468
(661) 2,807
Cash and cash 1,326 1,326 2,255 2,255 566
566
equivalents
4,418 3,840 5,424 5,013 4,034
3,573
TOTAL ASSETS 5,362 5,949 6,089 6,686 5,799
6,256
Current liabilities
Trade creditors and (4,098) (4,098) (3,690) (3,690) (2,669)
(2,669)
other payables
Current tax payable (355) (355) (767) (767) (571)
(571)
Dividends payable - - - - -
-
(4,453) (4,453) (4,457) (4,457) (3,240)
(3,240)
Non-current liabilities
Deferred tax liabilities (40) (40) (40) (40) (34)
(34)
Pension liability b (1,381) (592) (1,973) (1,381) (592) (1,973) (1,065)
(457) (1,522)
(1,421) (2,013) (1,421) (2,013) (1,099)
(1,556)
TOTAL LIABILITIES (5,874) (6,466) (5,878) (6,470) (4,339)
(4,796)
NET ASSETS (512) (517) 211 216 1,460
1,460
Capital and reserves
Share capital 15 15 15 15 153
- 153
Merger reserve - - - (135)
- (135)
Retained earnings (527) (527) 196 196 1,442
- 1,442
Currency reserve c - (5) (5) - 5 5 -
- -
TOTAL EQUITY (512) (517) 211 216 1,460
1,460
Explanation of transitional adjustments
a The Group has investments in joint ventures which under UK GAAP were classified as
joint
arrangements not an entity. Balances owing were included within debtors. In accordance
with IFRS
the balance has been reclassified as an investment.
b The pension scheme deficit creates a deferred tax asset. This is included as a
non-current asset
under IFRS whereas previously it was deducted from pension scheme liability.
c The Group takes out forward foreign exchange deals to hedge against fluctuations in
exchange
rates. The fair value of those deals is recognised in the balance sheet and where those
contracts
satisfy the requirements for hedge accounting any gains or losses are recognise through
a
currency reserve.
d The currency reserve creates a deferred tax asset or liability which is included as a
non-current
asset or non-current liability as appropriate.
(ii) Restatement of consolidated profit and loss account
Half year to
Year to
30 September
31 March
2006
2007
#'000
#'000
Revenue:
Under UK GAAP 6,625
13,180
Effect of transition (e) 174
322
Under IAS 6,799
13,502
e Foreign exchange gains and losses following the sale of revenue income from US dollars
into
Sterling are now treated within administrative expenses rather than within revenue.
Administrative expenses have changed by a similar amount to revenue.
There is no change to the operating profit for the Group under IAS.
8. Nature of financial information
The Interim Announcement set out above does not represent statutory accounts for
ACM Shipping Group plc or for any of the entities comprising the ACM Shipping
Group.
The Directors
ACM Shipping Group plc
Kinnaird House
1 Pall Mall
London
SW1Y 5AU
This information is provided by RNS
The company news service from the London Stock Exchange
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