RNS Number:5341W
Spring Grove Prop. Maintenance PLC
29 May 2002
SPRING GROVE PROPERTY MAINTENANCE PLC
PRELIMINARY RESULTS
FOR THE YEAR ENDED 31 JANUARY 2002
Spring Grove Property Maintenance plc, the specialist provider of repair and
maintenance services to the social housing sector, today announces its
preliminary results for the year ended 31 January 2002, its first trading period
since admission to trading on the Alternative Investment Market of the London
Stock Exchange in December 2001.
Highlights:
• Turnover up 36% to £7.4 million
• Profit before tax up 98% to £394,000
• EPS of 4.43p (2001 2.05p)
• Successful admission to trading on AIM in December 2001 following a
placing raising £2.1 million, after expenses
• Contracts renewed with the London Borough of Barking & Dagenham and
Notting Hill Housing Trust
• Contract won with the London Borough of Camden
• Award as the UK's 46th fastest growing company in 2001 in the recent
Deloitte & Touche Indy 100 Awards
Chris Phillips, Chairman, commented:
"Spring Grove's start to trading in the current year has been encouraging and
the combination of the new contracts, improved systems and strengthening of the
management team give us confidence of further growth this year."
29 May 2002
Press enquiries:
Kevin Childs and Andrew Milne, Spring Grove Tel: 020 8577 8040
Alex Borrelli and Jonathan Nelson, Shore Capital Tel: 020 7408 4090
CHAIRMAN'S STATEMENT
I am pleased to report a further successful year of growth for the Company in
which we also joined the Alternative Investment Market in December 2001.
For the year ended 31 January 2002, turnover rose by 36% to £7.4 million (2001
£5.43 million) and profit before tax increased 98% to £394,000 (2001 £199,000).
Basic earnings per share were 4.43p, a 116% increase (2001 2.05p). This growth
has been achieved with a maintained gross margin. I am also pleased to report
that Spring Grove won an award as the 46th fastest growing company in the UK in
2001 in the recent Deloitte & Touche Indy ('Independent on Sunday') 100 Awards.
This excellent financial performance was achieved in a year when the Company
transferred from the OFEX market to commence trading on AIM and raised £2.1
million, after expenses, by means of a placing of new shares. The funds raised
were applied in eliminating the factoring debt, improving the corporate
infrastructure and IT systems and strengthening the equity base which has
enabled the Company to expand its customer base. The Directors expect that the
full benefit of the new capital will be reflected in the results for the year
ending 31 January 2003.
The ethos of Spring Grove is to provide a fast, efficient and cost effective
repair and maintenance service to the social housing sector and to work in
partnership with our customers to meet the demands of their tenants. In the
past year, this focus has enabled us to expand the volume of work with our
existing customer base and also to win new contracts. We are increasingly
recognised as a high quality service provider resulting in the Company
successfully tendering for a greater number of new contracts. We were pleased
to have renewed contracts with the London Borough of Barking & Dagenham and
Notting Hill Housing Trust and have recently won a contract with the London
Borough of Camden. We have opened new units in Camden and Reading.
These financial results, the expanding volume of business and our recognition in
national awards are a tribute to the dedicated way your managing directors and
the staff of Spring Grove have performed over the past year. I would like to
thank them all for their efforts and the way in which they have adapted to
change within the industry and their own company over the past year.
We have recognised the need to allocate sufficient operational and financial
resource to support the rapid and sustained growth of Spring Grove over the past
three years, compounded by the increasing burden of legislation. As such, we
are pleased to announce a further strengthening of our management team.
Following the retirement at the forthcoming Annual General Meeting of Mike
Watson, acting Finance Director, John Harrison, formerly a partner of Deloitte &
Touche, has agreed to join the Board as a non-executive Director with overall
responsibility for financial control and we have also recently appointed a
senior financial controller. We are grateful to Mike Watson for the major role
he has played in the development of the business over the past seven years and
my colleagues and I wish him well.
The start to trading in the current year has been encouraging and the
combination of the new contracts, improved systems and strengthening of the
management team give us confidence of further growth this year.
Chris Phillips
Chairman
SPRING GROVE PROPERTY MAINTENANCE PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED
31 JANUARY 2002
2002 2001
£ £
Turnover 7,395,637 5,434,143
Cost of sales (5,000,095) (3,778,667)
Gross profit 2,395,542 1,655,476
Administrative expenses (1,810,944) (1,240,228)
Other operating income 8,750 3,750
Operating profit 593,348 418,998
Net interest (198,954) (219,482)
Profit on ordinary activities 394,394 199,516
Tax on profit on ordinary activities (95,324) (82,379)
Profit on ordinary activities after taxation 299,070 117,137
Profit for the financial year 299,070 117,137
Dividends - -
Profit retained 299,070 117,137
Earnings per share
Basic 4.43p 2.05p
All amounts relate to continuing activities.
There were no recognised gains or losses other than the profit for the financial
year.
SPRING GROVE PROPERTY MAINTENANCE PLC
CONSOLIDATED BALANCE SHEET AS AT 31 JANUARY 2002
2002 2001
£ £ £ £
Fixed assets
Intangible assets 67,856 -
Tangible assets 1,076,834 647,604
1,144,690 647,604
Current assets
Stocks 1,018,170 440,292
Debtors 1,670,285 1,297,007
Cash at bank and in hand 409,578 156,636
3,098,033 1,893,935
Creditors: amounts falling due within one year (1,172,862) (1,860,653)
Net current assets 1,925,171 33,282
Total assets less current liabilities 3,069,861 680,886
Creditors: amounts falling due after more than one (200,701) (70,103)
year
2,869,160 610,783
Capital and reserves
Called up share capital 120,511 59,557
Share premium account 2,105,545 207,192
Profit and loss account 643,104 344,034
Equity shareholders' funds 2,869,160 610,783
SPRINGROVE PROPERTY MAINTENANCE PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2002
2002 2001
£ £
Net cash flow (outflow)/inflow from operating activities (923,439) 620,429
Returns on investments and servicing of finance
Interest received 2,232 390
Interest paid (185,022) (203,621)
Finance lease and hire purchase interest paid (16,164) (16,251)
Net cash outflow from returns on investments and servicing of finance (198,954) (219,482)
Taxation paid (108,189) -
Capital expenditure
Purchase of tangible fixed assets (620,566) (316,624)
Sale of tangible fixed assets 10,275 -
Purchase of intangible fixed assets (3,888) -
Net cash outflow from capital expenditure (614,179) (316,624)
Acquisitions
Purchase of subsidiary undertakings (63,697) -
Net cash outflow from acquisitions
Equity dividends paid - -
Financing
Issue of equity share capital 60,954 2,857
Share Premium on issue of shares 1,898,353 69,089
Repayment of borrowings 23,413 (11,863)
Capital element of finance leases and hire purchases rentals 178,680 10,795
Net cash inflow from financing 2,161,400 70,878
Increase in cash 252,942 155,201
Notes:
1. Basis of preparation
The financial information set out in the announcement does not
constitute the statutory accounts for the years ended 31 January 2002 and 2001.
The financial information for the year ended 31 January 2001 is derived from the
statutory accounts for that year which have been delivered to the Registrar of
Companies. The auditors reported on those accounts; their report was
unqualified and did not contain a statement under s237(2) or (3) Companies Act
1985. The statutory accounts for the year ended 31 January 2002 will be
finalised on the basis of the financial information presented by the directors
in this preliminary announcement and will be delivered to the Registrar of
Companies following the Company's annual general meeting. The comparative
figures for 2001 relate to the company only as it did not have any subsidiaries
during that year.
2. Tax on profit on ordinary shares
The tax charge represents:
2002 2001
£ £
United Kingdom Corporation Tax 24.2% (2001: 41.3%) 95,324 82,379
3. Earnings per share
Basic earnings per share is based on equity earnings £299,070 (2001: £117,137)
and 6,749,420 (2001: 5,710,952) ordinary shares at 1p each, being the weighted
average number of shares issued during the year.
4. Net cash inflow from operating activities
2002 2001
£ £
Operating profit 593,348 418,998
Depreciation 177,700 117,127
Loss on disposal of fixed assets 3,361 -
(Increase)/Decrease in stocks (577,878) 115,521
(Increase) in debtors (369,390) (275,323)
(Decrease)/Increase in creditors (750,580) 244,106
Net cash outflow from operating activities (923,439) 620,429
5. Reconciliation of net cash flow to movement in net funds/(debt)
2002 2001
£ £
Increase in cash in the year 252,942 155,201
Cash (inflow)/outflow from financing (23,413) 11,863
Cash outflow from finance leases and hire purchase contracts (178,680) (10,795)
Change in net debt resulting from cash flows 50,849 156,269
Net debt at 1 February 2001 (145,813) (302,082)
Net funds/(debt) at 31 January 2002 (94,964) (145,813)
6. Analysis of changes in net funds/(debt)
At 1 February Cash At 31 January
2001 Flow 2002
Cash at bank and in hand 156,636 252,942 409,578
Debt (164,658) (23,413) (188,071)
Finance leases and hire purchase contracts (137,791) (178,680) (316,471)
(145,813) 50,849 (94,964)
7. Calendar
The annual report and accounts will be mailed to registered shareholders at
their registered addresses in June 2002 and, from the date of release, copies
will be made available to the public at the Company's Registered Office, Spring
Grove House, Ivy Road, Hounslow, Middlesex TW3 2DH.
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