Interim Results
March 07 2003 - 6:22AM
UK Regulatory
RNS Number:4393I
Mid-States PLC
07 March 2003
Press Release
For immediate release 7 March 2003
MID-STATES PLC
("Mid-States" or the "Company", or the "Group")
Preliminary Results for the Year Ended 31 December 2002
The Company is pleased to report on the Group's results for
the year to 31 December 2002, and on the future strategy for
the Company.
Results
2002 was the first full year since the disposal of the Group's
former automotive aftermarket operations in the United States.
Accordingly, the Group had no trading operations during the
year.
As at 31 December 2002, the Group's net assets, principally
comprising its cash balances, totalled #12.8 million
equivalent to 24.5 pence per share. This included the amount
previously held in escrow pending expiry of the warranties
given at the time of the disposal of the Group's former
operations. All of these warranties expired in October 2002,
when the escrow monies, with accrued interest, were released
to the Group.
The escrow monies were held in US dollars during the period of
the escrow and converted into sterling on its expiry. The
currency risk on the majority of this cash was hedged. The
translation loss on the conversion of the remainder was
#89,000.
Interest during the year on the Group's cash balances,
including those held in escrow, totalled #403,000. Expenses
during the period totalled #367,000. The Board remains
mindful of the need to keep expenses as low as possible.
Return of Capital
When the Company reported on the interim results for the 6
months ended 30 June 2002, it advised that the Board was
actively seeking ways in which to maximise shareholder value,
including opportunities to invest the company's capital in new
business ventures. Whilst the Board continues to consider the
potential for such opportunities to deliver shareholder value,
after consulting with certain major shareholders of the
Company, the Board has concluded that it is in the best
interests of the shareholders to return a proportion of the
Company's cash balances to shareholders.
Accordingly, the Board is putting proposals to shareholders
for the return of excess capital to them. The capital
reduction will require the approval of shareholders and of the
High Court. A circular regarding the proposals is separately
being despatched to shareholders.
The return of capital is likely to result in payment to
shareholders of an amount equivalent to approximately 10.3
pence per share held by them on the date the capital reduction
becomes effective.
Future Strategy
Following the return of capital, the Company is expected to
have remaining net assets substantially comprising cash
balances of an amount totalling approximately #7.3 million,
equivalent to approximately 14.0 pence per share.
After the return of capital becomes effective, the Board will
continue to review opportunities to see if additional value
can be created for shareholders, including through the
possible acquisition of a new business. In the event that the
Board does not consider any such acquisition opportunities to
be suitable for investment by the Company during 2003, it is
intended that the remaining cash will be returned to
shareholders.
-ends-
Enquiries:
Mid-States PLC 020 7603 1515
Tony Hunter
Weber Shandwick Square Mile 020 7067 0745
Christian Taylor-Wilkinson
GROUP PROFIT AND LOSS ACCOUNT
For the year ended 31 December 2002
Year to Year to
31 December 31 December
2002 2001
#'000's #'000's
Notes (audited) (audited)
Turnover - discontinued operations - 62,955
Cost of sales - (39,230)
___________ ___________
Gross profit - 23,725
Distribution Costs - (19,141)
Administrative expenses (367) (4,221)
___________ ___________
Operating (loss)/profit - discontinued operations - 363
- continuing operations (367) -
Loss on disposal of discontinued operations - (26,540)
Bank interest receivable and similar income 403 209
____________________________
Interest payable on bank loans and overdraft - (1,136)
Currency translation loss (89) -
____________________________
Interest payable and similar charges (89) (1,136)
___________ __________
(Loss) on ordinary activities before taxation (53) (27,104)
Taxation credit on loss on ordinary activities - 1,027
___________ ___________
(Loss) on ordinary activities after taxation (53) (26,077)
Minority interests - (8)
___________ ___________
Retained (loss) for the year (53) (26,085)
___________ ___________
Basic and diluted (loss) per share 1 (0.1)p (49.8)p
Adjustment for loss on disposal of operations - 50.7p
Basic and diluted adjusted (loss)/earnings per 1 (0.1)p 0.9p
share
GROUP BALANCE SHEET
At 31 December 2002
31 December 31 December
2002 2001
#000's #000's
(audited) (audited)
Current assets
Debtors 45 4,961
Cash at bank and in hand 12,948 8,113
___________ ___________
12,993 13,074
Creditors: amounts falling due within one year (176) (204)
___________ ___________
Net current assets being total assets less current liabilities 12,817 12,870
___________ ___________
Net assets 12,817 12,870
___________ ___________
Capital and reserves
Called up share capital 5,232 5,232
Share premium account 689 689
Capital redemption reserve 253 253
Profit and loss account 6,643 6,696
___________ ___________
Equity shareholders' funds being total capital employed 12,817 12,870
___________ ___________
GROUP CASHFLOW STATEMENT
For the year ended 31 December 2002
Year to Year to
31 December 31 December
2002 2001
#'000 #'000s
Notes (audited) (audited)
Net cash (outflow)/inflow from operating
activities 2 (437) 3,182
Returns on investments and servicing of finance 488 (1,095)
Taxation 640 -
Capital expenditure - 89
Disposal 4,144 8,235
___________ ___________
Net cash inflow before liquid resources and
financing 4,835 10,411
Management of liquid resources (12,936) -
Financing-(decrease) in debt - (2,574)
___________ ___________
(Decrease)/increase in cash in the period 3 (8,101) 7,837
___________ ___________
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the year ended 31 December 2002
Year to Year to
31 December 31 December
2002 2001
#'000 #'000s
(audited) (audited)
(Loss) for the year (53) (26,085)
Currency translation differences on foreign currency
net investments - 472
___________ ___________
Total (losses) recognised since previous balance
sheet date (53) (25,613)
___________ ___________
NOTES:
1. (Loss) / earnings per share
The calculation of basic and diluted loss per share is based
on the loss for the year after tax and minority interests
of #53,000 (2001 - loss #26,085,000) and on the average
number of ordinary shares in issue during the year of
52,315,751 (2001 52,315,751).
The adjusted loss per share in 2001 is based on the profit
after tax and minority interests of #455,000 having
excluded the loss on disposal of operations of
#26,540,000.
2. Reconciliation of operating (loss)/profit to net
cash (outflow)/inflow from operating activities
Year to Year to
31 December 31 December
2002 2001
#'000s #'000s
Operating (loss)/profit (367) 363
Depreciation charge - 1,817
Amortisation - 42
(Profit) on sale of fixed assets - (206)
Decrease in stocks - 646
Decrease in debtors 47 667
(Decrease) in creditors and provisions (28) (147)
Currency translation (loss) (89) -
___________ ___________
Net cash (outflow)/increase from operating activities (437) 3,182
___________ ___________
3. Reconciliation of net funds/(debt)
Year to Year to
31 December 31 December
2002 2001
#'000s #'000s
(Decrease)/increase in cash in the period (8,101) 7,837
Cash outflow/(inflow) from increase/decrease in debt
financing - 2,574
Cash outflow from increase in liquid resources 12,936 -
___________ ___________
Change in net debt resulting from cash flows 4,835 10,411
Debt transferred with disposed subsidiary - 17,558
Translation differences - (325)
___________ ___________
Movement in net debt in the period 4,835 27,644
Net funds/(debt) at beginning of period 8,113 (19,531)
___________ ___________
Net funds at end of period 12,948 8,113
___________ ___________
4. Financial Information
The accounts have been prepared on the historical cost basis
and do not constitute statutory accounts within the
meaning of section 240 of the Companies Act 1985.
The figures for the year ended 31 December 2002 have been
extracted from the statutory accounts which have been
reported on by the group's auditors and will be 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.
Copies of the 2002 Annual report will be sent to
shareholders in due course. Further copies will be
available from the Company's offices: Masters House, 107
Hammersmith Road, London, W14 0QH.
This information is provided by RNS
The company news service from the London Stock Exchange
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