Final Results

Associated British Engineering PLC 29 July 2002 A • B • E C H A I R M A N 'S S T A T E M E N T The Group made a pre-tax loss of £296,000 on the continuing operations compared with a pre tax loss of £177,000 last year. Including discontinued operations and exceptional costs the pre-tax loss for this year was £812,000, which compares with a pre-tax loss last year of £156,000. Included in these results are losses of £176,000 for the year ended 31 March 2002 in a division of British Polar Engines which were unacceptable and therefore the Board decided to close it at a cost of £340,000. This will relieve the Group of a further cash drain on its resources and allow management at British Polar Engines to focus on the core business. The continuing business of British Polar Engines made an operating loss of £205,000 during the year following difficult trading conditions in the medium speed marine business in the second half of the year. To reduce the ongoing costs of the business, redundancies were made at the end of the year at a cost of £36,000. Demand for products and services in the smaller, higher speed, engine sector remains in line with expectation. In common with many other businesses, world events of the past months have created uncertainties in the medium speed engine market. We remain optimistic that some degree of stability will return in the medium term and are confident of our ability to face the challenges that lie ahead. In the interests of simplifying the Group and reducing the risks to shareholder value, the Board consulted certain large shareholders and decided that it would be in the interests of shareholders to see if there were potential buyers for the business of British Polar Engines. If this disposal is completed it is likely to lead to a substantial loss which, in accordance with existing accounting standards is not reflected in the group's profit and loss account for the year ended 31 March 2002. Once the Board is in a position to make a recommendation to the shareholders we will make an announcement and issue a circular to seek shareholders approval. In November 2000 the new reporting standard FRS 17 'Retirement Benefits' was issued replacing SSAP 24 'Accounting for Pension Costs'. This new standard is fully effective for accounting periods ending on or after 22 June 2003, though certain disclosures are required in the transition period. Under these new proposals the market value of the Group's pension fund assets at 31 March 2002 was £7,793,000 and the actuarial value of the liabilities was £9,556,000 resulting in a deficit for FRS 17 purposes of £1,763,000, which is more fully set out in note 24 to the accounts. The debate on how to evaluate and reflect pension surpluses and deficits continues and I fully expect these requirements to change before full implementation. In addition, the Board are currently waiting the results of the triennial actuarial valuation of the Pension Fund as at 1 April 2002. Preliminary results from the actuary to the Fund indicate that on the statutory Minimum Funding Requirement basis the funding level is greater than 90% and that for the purposes of the long term funding of the Fund there maybe a significant deficit which will need to be funded by the Group. The Board are investigating the position of the fund and will make a further announcement once the position has been clarified. The board is continuing to review opportunities for developing the Group and is utilising principally its own time and resources in giving consideration to those situations, which it believes worthwhile before committing external resources. We will keep shareholders informed of developments. Rupert Pearce Gould Chairman 29 July 2002 A • B • E G R O U P P R O F I T A N D L O S S A C C O U N T FOR THE YEAR ENDED 31 MARCH 2002 Before Exceptional items Exceptional items 2002 (Note 2) Total 2001 £000s 2002 2002 £000s £000s £000s Turnover - Continuing operations 3,007 - 3,007 2,862 - Discontinued operations 580 - 580 950 3,587 - 3,587 3,812 Operating loss - Continuing operations (194) (150) (344) (228) - Discontinued operations (176) - (176) (276) (370) (150) (520) (504) Surplus arising from ABE Catering Equipment Ltd - - - 297 Loss arising on closure of trading division - (340) (340) - (Loss)/profit on ordinary activities before finance costs - Continuing operations (194) (150) (344) (228) - Discontinued operations (176) (340) (516) 21 (370) (490) (860) (207) Net finance - Continuing operations 48 - 48 51 income (Loss)/profit on ordinary activities before taxation - Continuing operations (146) (150) (296) (177) - Discontinued operations (176) (340) (516) 21 (322) (490) (812) (156) Taxation - (5) Loss on ordinary activities after taxation (812) (161) Non-equity dividends (51) (51) Retained loss (863) (212) Loss per ordinary share - Continuing operations (26)p (18)p - Basic (66)p (16)p The company does not have distributable reserves and is, therefore, unable to pay the preference dividends. A • B • E S T A T E M E N T O F T O T A L R E C O G N I S E D G A I N S A N D L O S S E S 2002 2001 £000s £000s Loss for the financial year (812) (161) Foreign exchange adjustment - 22 Total recognised gains and losses for the year (812) (139) The foreign exchange adjustment represents exchange gains during 2001 relating to the restatement of the balance sheet and results of Danway Limited, incorporated in the Cayman Islands, using the exchange rate at 31 March 2002 (2001 using the exchange rate at 31 March 2001). R E C O N C I L I A T I O N O F M O V E M E N T S I N S H A R E H O L D E R S F U N D S 2002 2001 £000s £000s Total recognised gains and losses for the year - as above (812) (139) Shareholders' funds at 1 April 2001 3,987 4,126 Shareholders' funds at 31 March 2002 3,175 3,987 A • B • E G R O U P B A L A N C E S H E E T AS AT 31 MARCH 2002 FIXED ASSETS 2002 2001 £000s £000s Tangible assets 553 734 CURRENT ASSETS Stock 1,400 1,751 Property held for sale 116 - Debtors - amounts falling due within one year 621 1,051 Cash at bank and in hand 1,518 2,019 3,655 4,821 Creditors - amounts falling due within one year 991 1,519 Net current assets 2,664 3,302 Total assets less current liabilities 3,217 4,036 Creditors - amounts falling due after one year 15 17 Provisions for liabilities and charges 27 32 Net assets 3,175 3,987 CAPITAL AND RESERVES Called up share capital 3,339 3,339 Share premium account 5,038 5,038 Other reserves 11 11 Profit and loss account (5,213) (4,401) Equity shareholders' funds 2,361 3,224 Non-equity shareholders' funds 814 763 Total shareholders' funds 3,175 3,987 A • B • E G R O U P C A S H F L O W S T A T E M E N T F O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 2 2002 2001 £000s £000s OPERATING ACTIVITIES Cash outflow from operating activities (314) (755) RETURNS ON INVESTMENTS AND SERVICING OF FINANCE Finance income received 52 56 Finance costs paid (3) (3) Finance cost element of finance lease rental payments (1) (2) Net cash inflow from returns on investments and servicing of finance 48 51 TAXATION UK Taxation paid (5) - CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT Purchase of tangible fixed assets (42) (83) Net proceeds on sale of tangible fixed assets 3 45 Net cash outflow from capital expenditure and financial investment (39) (38) ACQUISITIONS AND DISPOSALS Acquisition of Kelvin Diesels (148) (300) Sale of the Middle East operations - 121 Discontinued ABE Diesels operations (74) - Discontinued catering equipment operations - 889 Properties held for sale - 885 Net cash (outflow)/inflow from acquisition and disposals (222) 1,595 Cash (outflow)/inflow before financing (532) 853 FINANCING Decrease in debt (12) (12) Capital element of finance lease repayments (6) (47) (18) (59) (Decrease)/increase in cash in the year (550) 794 A • B • E N O T E S 1 Analysis of turnover by geographical destination 2002 2001 £000s £000s United Kingdom 2,435 2,295 Europe 485 671 Middle East 80 128 Far East and Australasia 263 250 Africa 124 16 North and South America 200 452 3,587 3,812 All of the above turnover arises from diesel and related engineering activities. 2 EXCEPTIONAL ITEMS Exceptional operating item As a result of poor recent trading an exceptional provision of £150,000 has been made against the stock held by British Polar Engines Limited. Discontinued activities (a) 2002 On 31 March 2002 a trading division of British Polar Engines Limited was closed resulting in costs of £340,000. (b) 2001 On 8 February 2000 the Company put its subsidiary, ABE Catering Equipment Limited, into administrative receivership. In 2001, £297,000 of losses previously written off were recovered. 3 The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The summarized balance sheet at 31 March 2002 and the summarized profit and loss account, summarized cash flow statement and associated notes for the year then ended have been extracted from the Group's 2002 statutory financial statements upon which the auditors opinion is unqualified and does not include any statement under Section 237 of the Companies Act 1985. Those financial statements have not been delivered to the Registrar of Companies. 4 The comparative figures for the year ended 31 March 2001 are abridged from the accounts for that year and do not constitute full accounts within the meaning of Section 240 of the companies Act 1985 (as amended). Statutory accounts for that period, on which the Auditors gave an unqualified opinion, have been delivered to the Registrar of Companies. A • B • E N O T E S 5 The board does not recommend a dividend on ordinary shares for the year. (2001 Nil). R A Pearce Gould Enquiries: Mr R A Pearce Gould (Chairman) Mrs K M Good (Finance Director) Tel: 01223 873 600 This information is provided by RNS The company news service from the London Stock Exchange

Companies

Associated British Engineering (ASBE)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today