Interim Results
August 25 2004 - 3:02AM
UK Regulatory
RNS Number:2814C
Spring Grove Prop. Maintenance PLC
25 August 2004
Spring Grove Property Maintenance plc
Interim Results for the Six Months Ended 31 July 2004
Chairman's Statement
The principal item that I have to report to you is the approach which has been
received from Mount Street Holdings Plc in combination with the executive
directors with a cash offer of 43.125 pence per share, full details of which are
being sent to you in an Offer Document. This offer has been recommended by the
Independent Directors, Chris Phillips, Alan Walker and Derek Short, and by the
Company's financial adviser, Shore Capital and Corporate Limited.
You will see from the Offer Document that the other directors, Kevin Childs,
Andrew Milne, Clark Ray and myself, will be continuing with Spring Grove if the
Offer is successful and that the existing employment rights of all Spring Grove
employees will be safeguarded.
It is disappointing that, in my first Chairman's statement, I have to report
that your company made a loss of #64,000 for the six months ended 31 July 2004
(2003 loss #113,000).
The reason for this result is a bad debt provision of #356,000 for a single
customer, Valleyhill Limited, which was placed under administrative receivership
in May 2004. Without this bad debt I would have been reporting a pre-tax profit
of #292,000, which represents the company's underlying performance.
There are many encouraging aspects of the half-year performance:
* turnover of #9.7 million shows an increase of 70 per cent. over last year;
* administrative expenses expressed as a percentage of turnover have been
reduced from 30 per cent. at the half year last year to 25 per cent. at
this half year;
* banking facilities have been agreed with HSBC enabling the cessation of
invoice discounting and a reduction in funding costs.
New contracts commenced since the beginning of the year include, for Spring
Grove, The London Borough of Enfield and ASRA Greater London Housing and, for
Robert Hawkins, Travel Lodge Hotels and Argos. The pipeline for future work is
robust.
Following the AGM in May, Mike Beresford resigned from the Board. I would like
to thank him for his contribution over a number of years. At the same time,
Derek Short, an experienced banker, joined the Board.
The major constraint on future growth is cash for working capital. Should the
current approach from Mount Street Holdings Plc and management not result in a
successful offer, the Company would need to raise further working capital in the
very short term.
John Harrison
Spring Grove Property Maintenance plc
Unaudited Group Profit and Loss Account for the six months ended 31 July 2004
6 months to 31 July 2004 6 months to Year to
31 Jul 03 31 Jan 04
Before
Exceptional Exceptional
bad debt bad debt Total
Note #'000 #'000 #'000 #'000 #'000
Turnover 9,711 0 9,711 5,727 12,806
Cost of sales (6,890) 0 (6,890) (4,049) (8,825)
Gross profit 2,821 0 2,821 1,678 3,981
Administrative expenses 1 (2,420) (356) (2,776) (1,733) (3,828)
Operating profit / (loss) 401 (356) 45 (55) 153
Net interest (109) (58) (177)
(Loss) on ordinary activities
before taxation (64) (113) (24)
Tax on profit on ordinary 2 22 34 (17)
activities
(Loss) retained 8 (42) (79) (41)
Earnings per share - pence 4
Basic (0.33) (0.63) (0.33)
Diluted (0.33) (0.63) (0.33)
Spring Grove Property Maintenance plc
Unaudited Group Balance Sheet as at 31 July 2004
As at As at As at
31 Jul 04 31 Jul 03 31 Jan 04
Note #'000 #'000 #'000
Fixed assets
Intangible assets 565 596 581
Tangible assets 1,789 1,460 1,748
2,354 2,056 2,329
Current assets
Stocks 2,764 1,456 2,067
Debtors 4,355 2,985 3,387
Cash at bank and in hand 4 137 12
7,123 4,578 5,466
Creditors: amounts falling due
within one year (3,945) (3,117) (4,177)
Net current assets 3,178 1,461 1,289
Total assets less current liabilities 5,532 3,517 3,618
Creditors: amounts falling due
after more than one year (2,263) (257) (307)
Provision for liabilities and charges (101) (88) (101)
3,168 3,172 3,210
Capital and reserves
Called up share capital 124 124 124
Share premium account 2,291 2,291 2,291
Profit and loss account 753 757 795
Shareholders' funds 8 3,168 3,172 3,210
Spring Grove Property Maintenance plc
Unaudited Group Cash Flow Statement for the six months ended 31 July 2004
6 months to 6 months to Year to
31 Jul 04 31 Jul 03 31 Jan 04
Note #'000 #'000 #'000
Net cash (outflow) / inflow from operating 5 (2,537) 548 350
activities
Returns on investments and servicing
of finance
Interest paid (77) (45) (135)
Interest element of finance lease (31) (13) (41)
Net cash inflow / (outflow) from returns
on investments and servicing of finance (108) (58) (176)
Taxation (32) (102) (102)
Capital expenditure
Purchase of tangible fixed assets (13) (256) (309)
Sale of tangible fixed assets 0 0 9
Net cash outflow from capital expenditure (13) (256) (300)
Financing
Capital element of finance leases (252) (31) (248)
Loan drawn down 2,000 0 0
Net cash inflow / (outflow) from financing 1,748 (31) (248)
Increase / (decrease) in cash 6 (942) 101 (476)
Spring Grove Property Maintenance plc
Notes to the Unaudited Interim Results for the six months ended 31 July 2004
Preparation of interim financial information
The interim financial statements have been prepared on a basis consistent with
the accounting policies disclosed in the Annual Report and Accounts for the year
ended 31 January 2004.
The consolidated results for the year ended 31 January 2004 have been extracted
from the financial statements for that year and do not constitute full statutory
accounts for the Group. The Group accounts for the year ended 31 January 2004
received an unqualified audit report and did not include a statement under
section 237 (2) or (3) of the Companies Act 1985 and have been filed with the
Registrar of Companies.
1. Exceptional bad debt
On 7th May 2004, Valleyhill Limited, a company which owned and managed pubs and
bars, was placed into Administrative Receivership. The Receivers are in the
process of disposing of the assets of the underlying business as a going
concern. It is anticipated that any recovery of amounts owed to the Group is
unlikely and accordingly, full provision has been made against amounts worked or
due from this company.
2. Taxation
The tax charge for the six months ended 31 July 2004 has been based on the
estimated tax rate for the full year before adjustments.
3. Dividends
No dividend is proposed for the six months ended 31 July 2004.
4. Earnings per share
Basic earnings per share is based upon the loss attributable of #42,000 (2003:
loss #78,750) and12,428,430 (2003: 12,428,430) ordinary shares of 1p each, being
the average number of shares in issue in the period. The calculation of diluted
earnings per share uses the weighted average number of ordinary shares in issue
adjusted by the effects of all dilutive potential ordinary shares. The weighted
average number of shares is 12,622,997. In the period the shares are
anti-dilutive.
5. Net cash inflow from operating activities
6 months to 6 months to Year to
31 Jul 04 31 Jul 03 31 Jan 04
#'000 #'000 #'000
Operating profit / (loss) 45 (55) 153
Depreciation and amortisation 235 235 424
Loss on disposal of fixed assets 21 0 1
(Increase) / decrease in stocks (697) (173) (783)
(Increase) / decrease in debtors (967) (233) (682)
Increase / (decrease) in creditors (1,174) 774 1,237
Net cash inflow from operating activities (2,537) 548 350
6. Reconciliation of net cash flow to movement in net funds
6 months to 6 months to Year to
31 Jul 04 31 Jul 03 31 Jan 04
#'000 #'000 #'000
Increase / (decrease) in cash in the period (942) 101 (476)
Net cash (inflow) / outflow from (2,000) 7 0
bank
Cash (inflow) / outflow in respect of finance leases 252 31 248
Change in net debt resulting from cash flow (2,690) 139 (228)
New finance leases (271) (38) (421)
Change in net debt resulting from cash flow (2,961) 101 (649)
Net debt at start of period (1,218) (569) (569)
Net debt at end of period (4,179) (468) (1,218)
7. Analysis of change in net debt
At Other At
01 Feb 04 Cash Flow Changes 31 Jul 04
#'000 #'000 #'000 #'000
Cash at bank and in hand 12 (8) 0 4
Overdrafts and loans (613) (2,934) 0 (3,547)
Net cash (601) (2,942) 0 (3,543)
Finance leases (617) 252 (271) (636)
Net debt (1,218) (2,690) (271) (4,179)
8. Reconciliation of movements in shareholders' funds
6 months to 6 months to Year to
31 Jul 04 31 Jul 03 31 Jan 04
#'000 #'000 #'000
Profit / (loss) for the period (42) (79) (41)
Net increase / (reduction) in shareholders' (42) (79) (41)
funds
Opening shareholders' equity funds 3,210 3,251 3,251
Closing shareholders' equity funds 3,168 3,172 3,210
9. Interim financial statements
Further copies of the interim statements are available from the registered
office of Spring Grove Property Maintenance plc at The Gatehouse, 2 Richmond
Road, Isleworth, Middlesex, TW7 7BL or on www.sgpm.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QKQKPOBKDKFB
Spring Grove (LSE:SGV)
Historical Stock Chart
From May 2024 to Jun 2024
Spring Grove (LSE:SGV)
Historical Stock Chart
From Jun 2023 to Jun 2024
