Final Results
March 11 2003 - 3:00AM
UK Regulatory
RNS Number:5453I
Metalrax Group PLC
11 March 2003
METALRAX GROUP PLC
AND SUBSIDIARY UNDERTAKINGS 11th March 2003
PRELIMINARY ANNOUNCEMENT with regard to the consolidated accounts for the year
ended 31st December 2002.
Pre-tax profits up 6.3% to #12.3m on new record turnover of #111.7m
"Robust performance in difficult circumstances"
"Another year of satisfactory progress" anticipated
Metalrax Group PLC, the engineering specialists, announce pre-tax profit up by
6.3% to #12.3m on record sales of #111.7m up by 2.9% on 2001 (#108.5m).
Earnings per share are up by 6.1% to 7.09p.
The Board statement calls this "a robust trading performance in difficult
economic circumstances".
A final dividend of 3.75p per share is recommended making an unchanged 5.4p per
share for the full year representing a dividend yield of over 8% per annum
during a substantial part of the year.
Net funds retained in bank balances increased by more than 50% to #11.1m.
For the future "......there are encouraging indications that positive trading
momentum is being maintained and new opportunities identified. If it can
successfully escape.......events beyond our control the group can look forward
to another year of satisfactory progress".
ends
Copies of the board statement and preliminary results follow.
Further information: Mr Eric Moore, chairman - Telephone: 0121-433 3444
Board Statement
Results
A robust trading performance in difficult economic circumstances produced
another year of record turnover which increased in the twelve months to 31st
December 2002 to #111.671m, compared with #108.543m in the previous year. This
provided a strong platform for growth in earnings, with group profit before
taxation rising by 6.3 per cent to #12.337m from #11.610m. These encouraging
figures reflected our ability to react and adapt quickly to changes in global
markets, where demand fluctuations have been extreme, while still meeting the
challenge of retaining the competitive edge for customers.
Dividend
The directors are recommending an unchanged final dividend at the rate of 3.75
pence per share, which together with the interim dividend of 1.65 pence per
share paid in October 2002, will again bring the total distribution for the year
to 5.4 pence per share. Subject to it being approved at the annual general
meeting on 20th May 2003 the final dividend will be payable on 30th May 2003 to
shareholders on the register of members at the close of business on 9th May
2003. A dividend yield in excess of 8 per cent per annum, tax paid, has
continued during a substantial part of the year under review.
Shareholders' Funds
Our continuing emphasis on cash management has been well rewarded, with net cash
inflow from operating activities of #16.01m exceeding pre-tax profits for the
sixth year in succession. The resulting net funds retained in bank balances
increased by more than 50% to #11.11m, leaving substantial cash resources
available for internal investment, corporate acquisitions and possible market
purchases of our own shares. Total shareholders' funds have risen to above
#52m, representing an asset value approaching 44 pence per share.
Prospects
With international and domestic news bulletins dominated by questions relating
to war, terrorism and personal security it is more than ever difficult to
predict the short to medium term spending patterns of consumers, and the
ultimate effect on demand from customers.
Despite these immediate concerns there are encouraging indications that positive
trading momentum is being maintained and new opportunities identified. If it
can successfully escape the repercussions of global events beyond our control
the group can look forward to another year of satisfactory progress.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER, 2002
2002 2001
#'000 #'000 #'000 #'000
TURNOVER
Continuing operations 107412 102859
Discontinued 4259 5684
===== =====
111671 108543
Cost of sales 82055 79105
--------- --------
GROSS PROFIT 29616 29438
Operating expenses
Goodwill amortisation 307 268
Other 17221 17617
===== =======
17528 17885
-------- --------
OPERATING PROFIT
Continuing operations 11819 11678
Discontinued 269 (125)
-------- --------
12088 11553
Exceptional items 142 -
-------- --------
PROFIT ON ORDINARY
ACTIVITIES BEFORE INTEREST 12230 11553
Interest receivable 209 234
-------- -------
12439 11787
Interest payable 102 177
-------- --------
PROFIT ON ORDINARY
ACTIVITIES BEFORE TAXATION 12337 11610
TAXATION 3670 3541
-------- --------
PROFIT ON ORDINARY
ACTIVITIES AFTER TAXATION 8667 8069
Minority interests - equity interests 134 29
-------- --------
PROFIT FOR THE FINANCIAL YEAR 8533 8040
DIVIDENDS:
Interim of 1.65p per share (2001 : 1.65p) 1988 1985
Proposed final of 3.75p (2001 : 3.75p) 4496 4510
======== ========
6484 6495
-------- --------
RETAINED PROFIT FOR THE YEAR 2049 1545
======== ========
EARNINGS PER SHARE - basic 7.09 pence 6.68 pence
The group profit for the financial year #8,533,000
related to 120,366,788, being the weighted average
number of ordinary shares in issue during the year
(2001 : 120,270,740)
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED
31ST DECEMBER 2002
2002 2001
#'000 #'000
Profit for the financial year 8533 8040
Exchange fluctuation on foreign currency investments (209) 51
-------- --------
Total recognised gains and losses for the financial year 8324 8091
========
Prior year adjustment (490)
--------
Total recognised gains and losses since last annual report 7834
========
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
FOR THE YEAR ENDED
31ST DECEMBER 2002
2002 2001
#'000 #'000
restated
Profit for the financial year 8533 8040
Dividends (6484) (6495)
-------- --------
2049 1545
New share capital subscribed 408 -
Purchase of own shares (709) -
Exchange fluctuation on foreign currency investments (209) 51
-------- --------
Net addition to shareholders' funds 1539 1596
Opening shareholders' funds 50550 48954
-------- --------
Closing shareholders' funds 52089 50550
======== ========
CONSOLIDATED BALANCE SHEET
31ST DECEMBER 2002
2002 2001
#'000 #'000 #'000 #'000
Restated
FIXED ASSETS
Intangible assets 5189 5397
Tangible assets 25528 26116
Investments - 200
-------- --------
CURRENT ASSETS 30717 31713
Stocks 15961 18149
Debtors 20473 22648
Freehold property for disposal - 1040
Cash at bank 11108 9310
-------- --------
47542 51147
======== ========
CREDITORS
Amounts falling due within one year 23629 27487
======== ========
Net current assets 23913 23660
-------- --------
Total assets less current liabilities 54630 55373
CREDITORS
Amounts falling due after more than 211 2333
one year
-------- --------
54419 53040
PROVISION FOR LIABILITIES
AND CHARGES
Deferred taxation 1953 1916
-------- --------
NET ASSETS 52466 51124
======== ========
Financed by:
CAPITAL AND RESERVES
Called up share capital 5995 6014
Share premium account 2732 2355
Capital redemption reserve 274 224
Profit and loss account 43088 41957
-------- --------
Shareholders' funds - equity interests 52089 50550
Minority interests - equity interests 377 574
-------- --------
52466 51124
======== ========
CASH FLOW STATEMENT
FOR THE YEAR ENDED
31ST DECEMBER 2002
2002 2001
#'000 #'000 #'000 #'000
Cash inflow from operating activities
Continuing operations 16014 17224
Returns on investments and servicing of finance
Interest received 209 234
Interest paid (102) (177)
======== =======
Net cash inflow from returns on investments and
servicing of finance 107 57
Taxation paid (4036) (4158)
Capital expenditure and financial investment
Purchase of tangible fixed assets (3139) (3660)
Sale of tangible fixed assets 142 232
Purchase of goodwill - (182)
======== =======
Net cash outflow for capital expenditure and
financial investment (2997) (3610)
Acquisitions and disposals
Adjustment to purchase price of subsidiary (13) (667)
Bank balances acquired with subsidiaries - 105
Disposal of subsidiary, less its bank balance 278 -
======== =======
Net cash inflow from acquisitions and disposals 265 (562)
Equity dividends paid (6498) (6495)
-------- --------
Cash inflow before management of liquid
resources and financing 2855 2456
Management of liquid resources
Increase in short term deposits (4) (1809)
======== =======
Net cash outflow for management of liquid
Resources (4) (1809)
Financing:-
Issue of ordinary share capital 408 -
Purchase of own shares (709) -
Borrowings repaid (749) (549)
======== =======
Net cash outflow for financing (1050) (549)
-------- --------
Increase in cash in the period 1801 98
======== ========
NOTES ON THE CASH FLOW STATEMENT
FOR THE YEAR ENDED
31ST DECEMBER 2002
2002 2001
Continuing Continuing
#'000 #'000
1. Reconciliation of operating profit to net
cash flow from operating activities
Operating profit 12088 11553
Depreciation, net of disposal surpluses 3332 3267
Amortisation of goodwill 307 268
Decrease in stocks 960 (590)
Decrease in debtors 1529 (681)
Decrease in creditors (2032) 3407
Exceptional reorganisation costs (170) -
-------- --------
Net cash inflow from operating activities 16014 17224
======== ========
2002 2001
#'000 #'000 #'000 #'000
2. Reconciliation of net cash flow to
movement in net funds
Increase in cash in the period 1801 98
Cash outflow for decrease in debt 749 549
Cash outflow for increase in liquid
Resources 4 1809
-------- --------
2554 2456
Effect of foreign exchange rate changes 137 (66)
Debt disposed of with subsidiary 1153 -
-------- --------
Movement in net funds in the period 3844 2390
Net funds at 31st December 2001 7264 4874
-------- --------
Net funds at 31st December 2002 11108 7264
======== ========
Foreign
At exchange At
31.12.01 Cashflow Disposal movement 31.12.02
#'000 #'000 #'000 #'000 #'000
3. Analysis of net funds
Bank balances 4577 1801 (7) 6371
Short term deposits 4733 4 - 4737
-------- --------
Cash at bank per balance sheet 9310 11108
Debt (2046) 749 1153 144 -
-------- -------- -------- -------- --------
7264 2554 1153 137 11108
======== ======== ======== ======== =======
NOTES ON THE CASH FLOW STATEMENT
FOR THE YEAR ENDED
31ST DECEMBER 2002
2002 2001
#'000 #'000
4. Purchase of subsidiary undertakings
Cash consideration - 594
Bank balances acquired - (105)
Additional consideration 13 73
-------- --------
Net cash outflow 13 562
======== ========
2002
#'000
5. Sale of subsidiary undertaking
Cash consideration 308
Deferred consideration 1149
--------
1457
========
Fixed assets 177
Current assets 2697
Bank balance 30
Current liabilities (529)
Debt (1153)
--------
1222
Less: Minority interest 277
--------
945
========
Profit on disposal 512
========
The subsidiary undertaking disposed of during the year did not have a material
effect on the group's net cash inflow from operating activities and therefore
the cash flows of the subsidiary have not been separately reported but are
included within continuing operations.
NOTES FORMING PART OF THE ACCOUNTS
31ST DECEMBER 2002
1 SEGMENTAL ANALYSIS
Analysis by activity:-
2002 2001
Net Net
Operating Operating Operating Operating
Turnover Profit Assets Turnover Profit Assets
#'000 #'000 #'000 #'000 #'000 #'000
Engineering and storage
Products 56835 7181 22540 55281 6930 22256
Housewares 54836 4907 21191 53262 4623 24982
-------- -------- -------- -------- -------- --------
111671 12088 43731 108543 11553 47238
======== ======== ======== ========
Unallocated net assets 8735 3886
-------- --------
52466 51124
======== ========
Geographical analysis by origin:-
2002 2001
Net Net
Operating Operating Operating Operating
Turnover Profit Profit Turnover Profit Profit
#'000 #'000 #'000 #'000 #'000 #'000
United Kingdom 103666 11251 50618 99618 11209 48447
North America 8005 837 1848 8925 344 2677
-------- -------- -------- ------- -------- --------
111671 12088 52466 108543 11553 51124
======== ======== ======== ======== ======== =======
Geographical turnover analysis by destination:-
2002 2001
#'000 #'000
North America 10739 10869
Austria 1658 1554
France 805 1068
Germany 739 1432
Eire 705 741
Italy 694 428
Holland 607 592
Spain 585 605
Sweden 508 508
Rest of Europe 1387 1520
Africa 186 99
Far East, Australia and other 1206 1149
United Kingdom 91852 87978
-------- --------
111671 108543
======== =======
The annual general meeting will be convened for Tuesday, 20th May 2003.
Copies of the Report and Accounts will be posted to shareholders on 23rd April
2003 and will be available from the same date to the public from:-
The Secretary
Metalrax Group PLC
Ardath Road
Kings Norton
Birmingham
B38 9PN
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GUUWWWUPWPUU