Interim Results
October 31 2003 - 5:22AM
UK Regulatory
RNS Number:5320R
Arlington Group PLC
31 October 2003
ARLINGTON GROUP PLC
CHAIRMAN'S STATEMENT
UNAUDITED CONSOLIDATED RESULTS FOR THE 6 MONTHS TO 30 SEPTEMBER 2003
Dear Shareholder,
In the last 6 months we have witnessed a significant rise in the stock market
indices in the UK and USA and, notwithstanding that the same period has seen
relatively few Initial Public Offers (IPOs) in comparison to the highs seen in
earlier periods, by and large those companies coming to the market have been
well received and the climate for such offerings on both sides of the Atlantic
is showing signs of recovery.
Against this background Arlington has applied some of its cash resources to new
investments and, in the period from April through September, has either closed
or committed nearly #7m to new projects, in both equity and bridge finance
transactions, including a #2.65m Management Buyout transaction in Ster Century
Cinemas and a #3m Placing and Open Offer with Ennstone plc to provide
development funding for Enneurope plc, a company in which Ennstone holds a
29.99% interest.
The period under review has seen continuing improvements in the performance of
the Group's wholly owned trading subsidiary, Cemtron Limited, where the
management team has built further upon the successes reported in the last year's
Report and Accounts. The Company has also benefited from the realisation of
profits on its equity trading portfolio.
I am pleased to report upon the un-audited consolidated financial results of the
Group for the half year ended 30th September 2003. The current period's results
show a Profit before Taxation of #1.31m (2002: #0.18m). The Group's cash
position (#21.8m at the Balance Sheet date) remains robust, with uncommitted
balances currently in excess of #16m, equivalent to circa 25 pence per share.
Dividend policy will be reviewed following the outcome of the Company's
application to the High Court for a capital reconstruction pursuant to the
resolution passed at the last AGM.
The level of activity in our sector continues to increase and I look forward to
reporting to shareholders at the end of the full year.
The Directors and I would like to thank everyone who has worked so hard in
supporting the success of the Group during the last few months and wish to
express our gratitude for their continuing commitment for the future.
NICHOLAS BARHAM
Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
Six months Restated
ended 30
September 2003
Unaudited Six months Year to 31
ended 30 March 2003
September 2002
Unaudited A7udited
Note #'000 #'000 #'000
TURNOVER 9,225 5,458 14,356
Cost of sales - normal 2 (6,234) (4,159) (12,828)
-------- -------- --------
GROSS PROFIT 2,991 1,299 1,528
-------- -------- --------
Administrative expenses (2,191) (1,635) (2,007)
-
normal
- amortisation of 71 71 142
goodwill -------- -------- --------
(2,120) (1,564) (1,865)
-------- -------- --------
OPERATING PROFIT/(LOSS) 871 (265) (337)
Interest receivable 490 498 728
Interest payable and (53) (51) (34)
similar charges -------- -------- --------
PROFIT ON ORDINARY 1,308 182 357
ACTIVITIES BEFORE
TAXATION
Tax on profit on 2 - (78) (56)
ordinary activities -------- -------- --------
RETAINED PROFIT FOR THE 1,308 104 301
PERIOD ======== ======== ========
EARNINGS PER SHARE
Basic 3 1.98p 0.16p 0.46p
Diluted 3 1.98p 0.16p 0.46p
All recognised gains and losses are included in the profit and loss account.
All turnover related to continuing activities.
CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2003
At 30 September Restated
2003
Unaudited At 30 September At 31 March
2002 2003
Unaudited Audited
#'000 #'000 #'000
FIXED ASSETS
Intangible assets (497) (639) (568)
Tangible assets 1,613 1,654 1,704
---------- ---------- ---------
1,116 1,015 1,136
CURRENT ASSETS
Stock 582 532 519
Debtors 1,812 3,008 2,617
Investments 5,296 10,066 3,116
Cash at bank and in hand 21,806 14,802 22,813
---------- ---------- ---------
29,496 28,408 29,065
CREDITORS: (amounts falling due (2,976) (3,151) (3,796)
within one year) ---------- ---------- ---------
NET CURRENT ASSETS 26,520 25,257 25,269
---------- ---------- ---------
TOTAL ASSETS LESS CURRENT 27,636 26,272 26,405
LIABILITIES
CREDITORS: (amounts falling due (319) (460) (352)
after one year)
Provisions for liabilities and - - (44)
charges ---------- ---------- ---------
NET ASSETS 27,317 25,812 26,009
========== ========== =========
CAPITAL AND RESERVES
Called up share capital 329 329 329
Share premium account 30,558 30,558 30,558
Profit and loss account (3,570) (5,075) (4,878)
---------- ---------- ---------
EQUITY SHAREHOLDERS' FUNDS 27,317 25,812 26,009
========== ========== =========
NET ASSET PER SHARE 4 41.3p 39.0p 39.3p
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
Six Restated Year to
months
ended 30 Six months 31 March
September
2003
Unaudited ended 30 2003
September Audited
2002
Unaudited
Note #'000 #'000 #'000
NET CASH (OUTFLOW)/INFLOW FROM OPERATING 6 (1,245) (6,458) 967
ACTIVITIES --------- ----------- ----------
RETURNS ON INVESTMENTS AND SERVICING OF
FINANCE
Interest paid (53) (51) (98)
Interest received 489 497 791
--------- ----------- ----------
NET CASH INFLOW FROM RETURNS ON 436 446 693
INVESTMENTS AND SERVICING OF FINANCE --------- ----------- ----------
TAXATION - - 719
--------- ----------- ----------
CAPITAL EXPENDITURE AND FINANCIAL
INVESTMENT
Receipts from sale of tangible fixed 19 - -
assets
Payments to acquire tangible fixed (120) (666) (937)
assets --------- ----------- ----------
(101) (666) (937)
NET CASH OUTFLOW FROM CAPITAL
EXPENDITURE AND FINANCIAL INVESTMENT --------- ----------- ----------
ACQUISITIONS AND DISPOSALS
Net overdraft acquired with subsidiary - (39) (39)
--------- -----------
----------
NET CASH OUTFLOW FROM ACQUISITIONS AND - (39) (39)
DISPOSALS --------- -----------
----------
FINANCING
Loans received in period - 468 510
Loans repaid in period (80) (16) (150)
Capital repayment of finance leases (17) (18) (35)
--------- ----------- ----------
NET CASH (OUTFLOW)/INFLOW FROM (97) 434 325
FINANCING --------- ----------- ----------
(DECREASE)/INCREASE IN CASH IN THE 8 (1,007) (6,283) 1,728
PERIOD ========= =========== ==========
NOTES
1 REPORT AND ACCOUNTS
The financial information contained in the Interim Results, which is unaudited,
does not constitute accounts within the meaning of section 240 of the Companies
Act 1985. The information for the year ended 31 March 2003 is extracted from the
audited accounts for the year ended 31 March 2003, which have been filed with
the Registrar of Companies upon which the Auditors have expressed an unqualified
opinion.
The information for the six months ended 30 September 2002 has been restated to
reflect the consolidation of the activities of Cemtron Limited with effect from
1 April 2002.
2 TAX ON PROFIT ON ORDINARY ACTIVITIES
Six months Six months Year to
ended 30 ended 30
September 2003 September 2002
Unaudited Unaudited 31 March 2003
Audited
#'000 #'000 #'000
UK Corporation tax at 30% - 78 56
(2002: 30%) ========== ========== ==========
3 EARNINGS PER SHARE
Six months Six months Year to
ended 30 ended 30 31
September 2003 September 2002 March 2003
Weighted average number of ordinary shares in 65,919,277 65,919,277 65,919,277
issue (No.)
Profit after tax (#) 1,308,000 104,000 301,000
Basis earnings per share - pence per share (p) 1.98p 0.16p 0.46p
========== ========== ==========
There is no difference between the basis of calculation of basis and diluted
earnings per share.
4 NET ASSET PER SHARE
The net asset value per share is calculated on the basis of the net assets
attributable to equity shareholders divided by the number of ordinary shares in
issue at that date.
5 DIVIDENDS
The directors do not recommend the payment of an interim dividend (six months to
30 September 2002: #nil, year to 31 March 2003: #nil).
6 RECONCILIATION OF OPERATING PROFIT/(LOSS) TO NET CASH INFLOW/
(OUTFLOW) FROM OPERATING ACTIVITIES
Six months Restated
ended 30
September 2003
Unaudited Six months Year to 31
ended 30 March 2003
September 2002
Unaudited Audited
#'000 #'000 #'000
Operating profit/(loss) 871 (265) (337)
Depreciation 249 192 413
Loss on disposal of fixed 3 - -
assets
Amortisation of goodwill (71) (71) (142)
Grant released - - (16)
Increase in stock (63) (15) (2)
(Increase)/decrease in (2,180) (6,725) 225
investments
Decrease/(increase) in debtors 805 (209) (522)
(Decrease)/increase in (859) 635 1,348
creditors -------- -------- --------
Net cash (outflow)/inflow from (1,245) (6,458) 967
operating activities ======== ======== ========
7 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
Six months Restated
ended 30
September 2003
Six months Year to 31
ended 30 March 2003
September 2002
#'000 #'000 #'000
(Decrease)/increase in cash in (1,007) (6,283) 1,728
the period
Cash inflow from increase in 97 (434) (325)
debt -------- -------- --------
Change in net funds resulting (910) (6,717) 1,403
from cashflows
New finance leases (60) - -
Loans and finance leases - (220) (220)
acquired with subsidiary -------- -------- --------
Movement in funds (970) (6,937) 1,183
Net funds at beginning of the 22,268 21,085 21,085
period -------- -------- --------
Net funds at end of the period 21,298 14,148 22,268
======== ======== ========
8 ANALYSIS OF NET FUNDS
At 30 September Restated At 31 March
2003 2003
At 30 September
2002
#'000 #'000 #'000
Cash at bank and in hand 21,806 14,802 22,813
Debt due after one year (264) (424) (344)
Debt due within one year (160) (170) (159)
Finance leases (84) (60) (42)
-------- ------- --------
Net funds 21,298 14,148 22,268
======== ======= ========
9 INTERIM REPORT
Copies of the Interim Report will be sent to shareholders in due course and will
be available from the Secretary at the company's office, 18 Pall Mall, London
SW1Y 5LU.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFFIIILLVIV