Interim Results
August 05 2003 - 3:00AM
UK Regulatory
RNS Number:3070O
Infast Group PLC
05 August 2003
INTERIM RESULTS 2003
Infast Group plc ("Infast" or the "Company"), the inventory management services
group, is pleased to announce its interim results for the six months to 30 June
2003.
Key points:
* Substantial investment continues to support expansion and future growth
* New contracts and extensions secured from new and existing customers
* Board confident of growth in 2003 and beyond in UK, USA and export markets
Financials:
* Turnover up 10.5% at #88.6m (2002: #80.2m)
* Operating profit before goodwill amortisation at #2.5m (2002: #3.1m)
* #0.3m restructuring costs expensed in first half
* Earnings per share of 0.8p (2002: 1.0p)
* Interim dividend per share unchanged at 0.8p
* Debt reduced to #14.0m in first half from #16.5m at year end
Graham Titcombe, Chairman of Infast, said: "New multi year contracts and
extensions, worth several million pounds per year, have been won in the first
half from our current customer base. These contracts will be serviced out of
existing Distribution Service Centres and continue to provide growth
opportunities in control systems, the rail industry and from the Ministry of
Defence. These will benefit the Group over the second half and the next several
years."
For further information, please contact:
Infast Group plc Today: 01756 770 376
Robert Sternick, Group Chief Executive Thereafter: 01452 880 500
Rawlings Financial PR Limited Tel: 01756 770 376
John Rawlings
Catriona Valentine
CHAIRMAN'S STATEMENT
FINANCIAL RESULTS
I am pleased to announce that during the first six months of this year the
Group's turnover increased to #88.6m (2002: #80.2m), 10.5% up on the same period
last year despite the continuing difficult economic environment.
Operating profits (before goodwill amortisation) were #2.5m (2002: #3.1m).
Whilst improvements in profitability have been made in some areas, the continued
growth of our Inventory Management Services operations, 32% increase in turnover
in the last 18 months, has required substantial investment in our
infrastructure, people and systems. We are pleased to report that the roll out
of our new Company wide IT System (IBS2) is accelerating.
These profits are stated after charging the previously announced #0.3m of
restructuring costs in our manufacturing operations which, whilst impacting
these results, will benefit the year as a whole.
During this period of growth, net debt has continued to be reduced, ending the
period at #14.0m, down from #16.5m at the year-end. This reduction has been
achieved by the continued focus on working capital management. As a consequence
the interest cost was reduced to #0.4m (2002: #0.5m).
The tax charge of #0.6m (2002: #0.8m) represents an effective rate of 28%, which
is similar to last year's rate of 27%.
DIVIDEND
The Board intends to pay an unchanged interim dividend of 0.8p per share.
OPERATING PERFORMANCE
First quarter sales for the UK companies were marginally ahead of Q1 2002,
despite some customers suffering from lower order intake. The US business
performed well ahead of last year. In addition, second quarter sales improved as
new contracts were implemented and volumes from existing customers in the UK and
US increased.
The largest of the new contracts, which started in June 2003, was the extension
of our relationship with Land Rover where we secured a new five year contract to
supply a variety of parts for their existing and new vehicle ranges. As I
reported on 27 March 2003, the absorption of start up costs will provide for
little profit contribution in the current year - full benefit of the contract
will be felt starting in 2004.
CURRENT TRADING AND PROSPECTS
New multi year contracts and extensions, worth several million pounds per year,
have been won in the first half from our current customer base. These contracts
will be serviced out of existing Distribution Service Centres and continue to
provide growth opportunities in control systems, the rail industry and from the
Ministry of Defence. These will benefit the Group over the second half and the
next several years.
We continue to invest in our development to support our expansion. The Board
remains confident of achieving growth during 2003 and beyond in the UK, USA and
export markets.
Graham Titcombe
Chairman
5 August 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30 June 2003
Six months to Six months to Year ended
30 June 2003 30 June 2002 31 Dec 2002
Unaudited Unaudited Audited
#m #m #m
Turnover (Note 1)
Continuing operations 88.6 80.2 161.7
Operating Costs
Goodwill amortisation (0.6) (0.7) (1.3)
Other operating costs (86.1) - (156.2)
---------- ---------- ----------
(77.8) (157.5)
---------- ---------- ----------
Operating profit (Note 2)
Continuing operations 1.9 2.4 4.2
Amounts written off fixed
asset investment (note 3) - - (1.3)
---------- ---------- ----------
Profit on ordinary activities
before interest 1.9 2.4 2.9
Net interest (0.4) (0.5) (1.0)
---------- ---------- ----------
Profit on ordinary activities
before taxation 1.5 1.9 1.9
Taxation on profit on ordinary
activities (Note 4) (0.6) (0.8) (1.2)
---------- ---------- ----------
Profit for the financial period 0.9 1.1 0.7
Dividends (Note 5) (0.9) (0.9) (2.3)
---------- ---------- ----------
Retained profit/(loss) for the
period - 0.2 (1.6)
---------- ---------- ----------
Basic and diluted earnings per
share (Note 6) 0.8p 1.0p 0.6p
Adjusted earnings per share
(Note 6) 1.3p 1.6p 2.8p
Dividend per share 0.8p 0.8p 2.0p
GROUP BALANCE SHEET
As at 30 June 2003
As at As at As at
30 June 2003 30 June 2002 31 Dec 2002
Unaudited Unaudited Audited
#m #m #m
Fixed assets
Intangible fixed assets 19.2 21.0 19.9
Tangible fixed assets 15.7 15.2 15.4
Investments 0.9 2.2 1.0
---------- ---------- ----------
35.8 38.4 36.3
Current assets
Stocks 28.1 24.3 25.7
Debtors 37.2 40.5 40.3
Cash at bank and in hand - 0.2 -
---------- ---------- ----------
65.3 65.0 66.0
Creditors: Amounts falling due
within one year (44.3) (41.8) (42.6)
---------- ---------- ----------
Net current assets 21.0 23.2 23.4
---------- ---------- ----------
Total assets less current
liabilities 56.8 61.6 59.7
Creditors: Amounts falling due
after more than one year (4.5) (7.2) (6.8)
Provisions for liabilities and
charges (0.6) (0.7) (1.2)
---------- ---------- ----------
51.7 53.7 51.7
---------- ---------- ----------
Capital and reserves
Called up share capital 22.9 22.9 22.9
Share premium 9.8 9.8 9.8
Other reserves 4.0 4.0 4.0
Profit and loss account 14.7 16.7 14.7
---------- ---------- ----------
Equity shareholders' funds 51.4 53.4 51.4
Equity minority interest 0.3 0.3 0.3
---------- ---------- ----------
51.7 53.7 51.7
---------- ---------- ----------
Included within net current assets and creditors due after more than one year is
net debt of #14.0m (2002 whole year: #16.5m; 2002 half year: #14.8m).
SUMMARY CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 June 2003
Six months to Six months to Year ended
30 June 2003 30 June 2002 31 Dec 2002
Unaudited Unaudited Audited
#m #m #m
Net cash inflow from
operating activities (Note 9) 4.3 3.6 6.0
Net interest paid (0.4) (0.5) (1.0)
Tax received 0.3 0.5 0.4
Capital expenditure
Payments to acquire tangible
fixed assets (2.0) (1.6) (3.2)
Receipts from the disposal of
tangible fixed assets 0.2 0.4 0.7
Equity dividends paid - - (2.3)
---------- ---------- ----------
Net cash inflow before financing 2.4 2.4 0.6
Financing
Repayment of finance lease
obligations (0.4) (0.6) (1.2)
Repayment of loans (2.1) (2.5) (2.5)
---------- ---------- ----------
Net cash outflow from financing (2.5) (3.1) (3.7)
---------- ---------- ----------
Decrease in cash (0.1) (0.7) (3.1)
---------- ---------- ----------
Under FRS 1 (revised), cash is defined as cash in hand plus deposits less
overdrafts, each of which are repayable on demand. Bank deposits, which are not
repayable on demand are treated as liquid resources, and not cash, in the cash
flow statement but are netted off against bank overdrafts in the balance sheet
where there is right of set-off.
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the six months ended 30 June 2003
Six months to Six months to Year ended
30 June 2003 30 June 2002 31 Dec 2002
Unaudited Unaudited Audited
#m #m #m
Profit for the financial period 0.9 1.1 0.7
Exchange adjustments - (0.1) (0.3)
---------- ---------- ----------
Total recognised gains and
losses in the period 0.9 1.0 0.4
---------- ---------- ----------
NOTES TO THE ACCOUNTS
1. Basis of Preparation
The accounts have been prepared in accordance with applicable accounting
standards under the historical cost convention and using the accounting policies
as set out on pages 9 and 31 of the Annual Report and Accounts 2002.
The above accounts do not constitute full accounts within the meaning of Section
240 of the Companies Act 1985. Full audited accounts for the year ended 31
December 2002 have been filed with the Registrar of Companies. The audit report
on those accounts was unqualified and contained no statement under S237(2) or
(3) of the Companies Act 1985. Copies of this report have been sent to
shareholders and are also available at the Company's registered office.
2. Segmental Analysis
Continuing operations relate entirely to inventory management services
operations.
3. Non-operating Exceptional Item
During 2002 an amount of #1.3m was provided against a fixed asset investment
which represented a loan of $3.4m to Haden International Group, Inc. The loan
was made in respect of the disposal of the Process Engineering division in 1999.
There is no cash effect for this provision.
4. Taxation
Taxation has been provided at an effective rate of 28% (2002: 32%) which
represents an estimate of the year ending 31 December 2003.
5. Dividend
The interim dividend is payable on 31 October 2003 to shareholders on the
register at the close of business on 10 October 2003.
6. Earnings per share
The calculation of basic and diluted earnings per share of 0.8p (2002 whole
year: 0.6p, 2002 half year: 1.0p) is based on the Group profit of #0.9m (2002
whole year: #0.7m, 2002 half year: #1.1m) and on the weighted average number of
20p ordinary shares in issue during the period of 114.3m (2002 whole year:
114.3m; 2002 half year: 114.3m). Adjusted basic earnings per share is calculated
as follows:
Earnings Earnings per share
Half year Half year Full year Half year Half year Full year
2003 2002 2002 2003 2002 2002
Unaudited Unaudited Audited Unaudited Unaudited Audited
#m #m #m pence pence pence
Basic earnings and
earnings per share 0.9 1.1 0.7 0.8 1.0 0.6
Basic earnings and
earnings per share
attributable to:
Goodwill amortisation 0.6 0.7 1.3 0.5 0.6 1.1
Non-operating
exceptional items - - 1.3 - - 1.1
-------- -------- ------- -------- -------- -------
Adjusted basic earnings
and earnings per share 1.5 1.8 3.3 1.3 1.6 2.8
-------- -------- ------- -------- -------- -------
The adjusted basic earnings per share is presented so as to show more clearly
the underlying performance of the Group for continuing operations.
7. Net Debt
The Group's net debt/(funds) can be summarised as follows:
30 June 2003 30 June 2002 31 Dec 2002
Unaudited Unaudited Audited
#m #m #m
Cash at bank - (0.2) -
Bank overdraft 6.8 4.5 6.7
Medium term loan 6.5 9.3 8.9
Finance leases 0.7 1.2 0.9
---------- ---------- ----------
14.0 14.8 16.5
---------- ---------- ----------
8. Reconciliation of net cash flow to movement in net debt
Half year Half year Full year
2003 2002 2002
Unaudited Unaudited Audited
#m #m #m
Decrease in cash as shown in cash flow
statement (0.1) (0.7) (3.1)
Adjust for:
Loans repaid 2.1 2.5 2.5
Finance lease repayments 0.4 0.6 1.2
---------- ---------- ----------
Change in net debt resulting from cash flow 2.4 2.4 0.6
New finance leases (0.2) (0.4) (0.7)
Exchange movements 0.3 0.4 0.8
---------- ---------- ----------
Movement in net debt in the period 2.5 2.4 0.7
Net debt at the beginning of the period (16.5) (17.2) (17.2)
---------- ---------- ----------
Net debt at the end of the period (14.0) (14.8) (16.5)
---------- ---------- ----------
9. Reconciliation of operating profit to net cash inflow from operating
activities
Half year Half year Full year
2003 2002 2002
Unaudited Unaudited Audited
#m #m #m
Operating profit 1.9 2.4 4.2
Depreciation 1.5 1.4 2.7
Amortisation of goodwill 0.6 0.7 1.3
Profit on sale of tangible fixed assets - - (0.1)
Movement on provisions (0.6) (0.1) -
Movement in net current assets 1.2 (0.9) (1.9)
Exchange adjustments (0.3) 0.1 (0.2)
---------- ---------- ----------
Net cash inflow from operating
activities 4.3 3.6 6.0
---------- ---------- ----------
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The company news service from the London Stock Exchange
END
IR USANROSRWRAR