Final Results

Aukett Associates PLC 1 December 2000 AUKETT ASSOCIATES PLC 2000 PRELIMINARY RESULTS ANNOUNCEMENT Pre-tax profits double to £2m; Dividend up 33%; Order book ahead Aukett Associates PLC ('Aukett'), one of Europe's leading building design practices, with 15 offices in 10 countries, announces Preliminary Results for the year ended 30 September 2000. Financial Highlights Year ended 30 September 2000 1999 change Work done, including share of JV's and associate £20.87m £15.41m + 35% Group work done £18.87m £13.85m + 36% Profit before tax and exceptional item £2.05m £1.47m + 39% Exceptional UITF 17 charge - £0.45m Profit before tax £2.05m £1.02m + 101% Earnings per share before exceptional item 2.13p 1.60p + 33% Earnings per share 2.13p 0.97p + 120% Dividends per share 0.40p 0.30p + 33% Net assets £3.67m £2.50m + 47% Net gearing 32% 30% Commenting on the results, Chairman Andrew Lett said: 'In my first statement as Chairman, I am delighted to report Aukett has had another successful year. Our principal objective is to become Europe's premier consultancy in architecture, design and engineering.' Key Points * Turnover and profit increased significantly * Re-branding of Group as Aukett Europe * Consolidation of geographic spread across Europe * New sectors identified for future expansion * Work done in the UK up 19% * Work done overseas up 107% * Significant investment in new overseas offices and UK structure and IT Systems Regarding future prospects, Andrew Lett said: 'Prospects for the Group are encouraging, with order books generally ahead of the same period last year. Our targets for the current year include further improvements in performance from existing operations, consolidation of new ventures within the Group and a continuation of our growth strategy based on the solid platform achieved this year.' Enquiries: Aukett Associate PLC Andrew Lett, Executive Chairman Tel: 020 7786 9600 John Thake, Managing Director until 2:00pm thereafter on Robert Warner, Finance Director (mobile: 07831 685500) Tel: 0207 924 4949 Aukett Website www.aukett.com Binns & Co PR Ltd Peter Binns, Paul Vann, Carole Butcher Tel: 020 7786 9600 CHAIRMAN'S STATEMENT In my first statement to you as Chairman, I am delighted to report that Aukett Associates has had another successful year. Our Group turnover has significantly increased and our profit, after investment for future growth, shows satisfactory improvement. Sustainable growth and improved shareholder value are key objectives of the Company and this year's results are a further demonstration of the progress that has been made in meeting these goals. Results Work done, including share of joint ventures and associate increased by 35% to £20.87 million (1999: £15.41million). Profit before tax in the year increased to £2.05million (1999: £1.02 million after £0.45 million exceptional charge). After excluding the exceptional charge for 1999, the normalised comparison of profit before tax shows an increase of 39% (£1.47million to £2.05million) for the year. Earnings per share increased to 2.13p (1999: 0.97p after the 0.63p effect of the exceptional charge). Investment in acquisition and expansion during the year has increased gearing slightly to 32% (1999: 30%). This year's result has benefited from particularly good margins on some contracts and a favourable outcome to some uncertainties on others. However there have also been some significant start up costs in our latest overseas offices as well as heavy investment in our UK structure and systems. Dividend The Board is recommending a final dividend of 0.25p per share which, added to the interim dividend of 0.15p, makes a total of 0.40p for the year, an increase of 33% over the total of 0.30p paid in 1999. The final dividend will be payable on 2nd March 2001 to all shareholders on the register at 2nd February 2001. Strategic Review Through the acquisition and investment programme undertaken this year we have consolidated the Group's geographic presence and technical and professional resources which will provide a platform for growth in the year ahead. During the year, the Group was re-branded and now trades as Aukett Europe. The creation of a common identity for all our offices was an important strategic step in the progress towards our goal of being the premier European architecture, design and engineering business. With our operations now in ten countries throughout Europe we are well placed to benefit from the globalisation that is undoubtedly taking place. It remains our intention to achieve a greater contribution to the Group's income from overseas and this year has seen a further move in this direction. Including the share of joint ventures and the associate, work done in the United Kingdom increased by 19%, whereas overseas the increase was 107%, with the proportion of overseas work rising from 19% to 29%. New sectors of business are being identified, such as internet infrastructure, healthcare and pharmaceutical research with a view to extending the range of work that the Group can undertake. Your Board will continue to explore the potential for suitable expansion of our range of services by both organic growth and acquisition. Employees Design consultancy is a people business. It is therefore very much to the credit of our employees that the Group achieves such a high level of repeat business. During the year, significant investment was made in the training and personal development of key senior staff. In addition, we have a continuous policy of training for staff at all levels in the development of both technical and professional skills. Our strategy is to seek professional staff of the highest calibre, commensurate with the aspirations of the business. Furthermore, our policy is to encourage and promote share ownership amongst employees and we are now considering the introduction of a new all employee share ownership plan, in addition to the executive share option schemes which exist for senior level staff. On behalf of the Board, I thank all the staff for their support, all round dedication and sheer hard work in the last year. The Future The principal objective of the Group is to become the premier European Consultancy in architecture, design and engineering in the market sectors in which it operates. The European economy is buoyant, with countries such as France and Germany benefiting from the growth in development and construction seen somewhat earlier in the United Kingdom. Globalisation has become an inevitable and unstoppable by-product of the age of information technology and communication. Aukett Europe, with its increasing brand strength and geographic coverage, is in a strong position to provide the specialised skills and delivery, both locally and globally, that multi-national companies require. It is the intention of your Board to maintain the impetus that has been achieved over recent years. To do so, the business must remain vibrant, challenging and rewarding for its employees, whilst continuing to improve shareholder value. As always, we remain committed to enhancing the quality of service provided to our clients. Prospects for the Group are encouraging, with order books generally ahead of the same period last year. Our targets for the current year include further improvements in performance from existing operations, consolidation of new ventures within the Group and a continuation of our growth strategy based on the solid platform achieved this year. Andrew Lett Chairman 30 November 2000 Consolidated profit and loss account For the year ended 30 September 2000 2000 1999 Acquisitions Continuing Total Total £'000 £'000 £'000 £'000 Turnover: Group and share of joint 1,860 18,105 19,965 15,088 ventures Less: share of joint ventures' turnover - (1,592) (1,592) (1,112) Group turnover (Note 1) 1,860 16,513 18,373 13,976 Movement in amounts recoverable on 203 291 494 (127) contracts Group work done (Note 1) 2,063 16,804 18,867 13,849 Group operating profit before exceptional 412 1,519 1,931 1,307 item Exceptional item - - - (450) Group operating profit (Note 2) 412 1,519 1,931 857 Share of operating profit in joint ventures and associate 188 235 Net interest payable by Group (67) (70) Profit on ordinary activities before tax and exceptional item 2,052 1,472 Exceptional item - (450) Profit on ordinary activities before tax 2,052 1,022 (note 3) Tax on profit on ordinary activities (541) (380) Profit on ordinary activities after tax 1,511 642 Dividends (306) (199) Retained profit for the year 1,205 443 Earnings per share (note 5): Basic before exceptional item 2.13p 1.60p Basic 2.13p 0.97p Diluted before exceptional item 2.07p 1.56p Diluted 2.07p 0.95p Acquisitions reflect the trading of Aukett bv (formerly Aukett-Kokon Beltman bv) from the date it became a 100% subsidiary of the Group. During 1999 it was a 50% joint venture of the Group and its results were included in the share of operating profit in joint ventures. Consolidated Balance Sheet At 30 September 2000 2000 1999 £'000 £'000 £'000 £'000 Fixed assets Intangible assets 1,011 675 Tangible assets 1,530 956 Investments in joint ventures: Share of gross assets 854 541 Share of gross liabilities (703) (272) 151 269 Investment in associate 102 69 2,794 1,969 Current assets Debtors 7,429 5,828 Cash at bank and in hand 553 454 7,982 6,282 Creditors falling due within one year (6,471) (5,042) Net current assets 1,511 1,240 Total assets less current liabilities 4,305 3,209 Creditors falling due after one year (639) (703) Provisions for liabilities and charges - (4) Net assets 3,666 2,502 Capital and reserves Share capital 722 661 Share premium account 1,758 1,458 Profit and loss account 1,186 383 Equity shareholders' funds 3,666 2,502 Statement of total recognised gains and losses For the year ended 30 September 2000 2000 1999 £000 £000 Profit for the financial year 1,511 642 Foreign exchange differences (66) - _____ _____ Total gains and losses recognised in the year 1,445 642 ===== ===== Reconciliation of movements in shareholders' funds For the year ended 30 September 2000 2000 1999 £000 £000 Shareholders' funds at 1 October 1999 2,502 1,720 Reserves movement relating to UITF 17 charge - 336 Exercise of share options 25 3 Exchange movement (66) - Profit attributable to shareholders 1,511 642 Dividends paid and proposed (306) (199) _____ _____ Shareholders' funds at 30 September 2000 3,666 2,502 ===== ===== Consolidated Cash Flow Statement For the year ended 30 September 2000 2000 1999 £'000 £'000 £'000 £'000 Net cash flow from operating activities 1,689 1,596 Returns on investments and servicing of finance (63) (71) Taxation paid (444) (56) Capital expenditure Purchase of tangible fixed assets (385) (289) Sale of tangible fixed assets - - (385) (289) Acquisitions Purchase of a subsidiary (394) (346) Purchase of joint ventures (34) (373) (428) (719) Equity dividends paid (324) (99) Net cash inflow before financing 45 362 Financing Issue of ordinary shares 25 3 Repayment of loans (120) (160) Principal re-payments under hire purchase contracts and finance leases (226) (52) Net cash outflow from financing (321) (209) (Decrease)/Increase in cash (276) 153 Reconciliation of net cash flow to movement in net debt (Decrease)/Increase in cash for the year (276) 153 Cash outflow from decrease in debt 346 212 New finance leases and hire purchase contracts (503) (559) Movement in net debt during the year (433) (194) Net debt at 1 October 1999 (751) (557) Net debt at 30 September 2000 (1,184) (751) NOTES 1 Turnover and work done An analysis of turnover and work done by geographical area of destination is as follows: 2000 1999 United Rest United Rest Kingdom of Total Kingdom of Total £'000 Europe £'000 £'000 Europe £'000 £'000 £'000 Turnover Group 13,941 4,432 18,373 12,551 1,425 13,976 Share of joint ventures 376 1,216 1,592 107 1,005 1,112 Share of associate - 370 370 - 472 472 Total 14,317 6,018 20,335 12,658 2,902 15,560 Movement in amounts recoverable on contracts Group 436 58 494 (214) 87 (127) Share of joint ventures - 80 80 2 16 18 Share of associate - (37) (37) - (42) (42) Total 436 101 537 (212) 61 (151) Work done Group 14,377 4,490 18,867 12,337 1,512 13,849 Share of joint ventures 376 1,296 1,672 109 1,021 1,130 Share of associate - 333 333 - 430 430 Total 14,753 6,119 20,872 12,446 2,963 15,409 2 Group operating profit 2000 1999 £'000 £'000 Group work done 18,867 13,849 Staff costs (10,099) (7,661) Amortisation of goodwill (53) (29) Depreciation (371) (203) Other operating charges (6,413) (5,099) Group operating profit 1,931 857 The above figure for staff costs in 1999 included the exceptional UITF 17 charge of £450,000. 3 Profit on ordinary activities before taxation An analysis of profit on ordinary activities before taxation by geographical area is as follows: 2000 1999 Rest of Rest of United Europe United Europe Total Kingdom £'000 Total Kingdom £'000 £'000 £'000 £'000 £'000 Company and subsidiaries 1,378 490 1,868 689 98 787 Share of joint ventures 67 66 133 (5) 184 179 Share of associate - 51 51 - 56 56 Group total 1,445 607 2,052 684 338 1,022 The exceptional charge in 1999 has been applied to a subsidiary company in the United Kingdom. 4 Earnings per share The earnings per share are calculated on the profit attributable to shareholders of £1,511,000 for the year ended 30 September 2000 (1999: £ 642,000 and £1,058,000 before the exceptional item, adjusted for appropriate tax relief) and on 70,905,936, being the weighted average number of shares in issue during the year. 5 Amounts recoverable on contracts Amounts recoverable on contracts, as included in debtors, exceeded payments on account, as included in creditors by £226,000 at 30 September 2000 (1999: payments on account exceeded amounts recoverable on contracts by £223,000). These amounts comprise: 2000 1999 Amounts Amounts Recoverable Payments Recoverable Payments on contracts on account on contracts on account £'000 £'000 £'000 £'000 Value of work done 20,160 7,276 11,552 7,431 Fees rendered on account (18,527) (8,683) (9,836) (9,370) 1,633 (1,407) 1,716 (1,939) 6 Statutory accounts The financial information set out above does not constitute the Company's statutory accounts for the years ended 30 September 2000 or 1999 but is derived from those accounts. Statutory accounts for 1999 have been delivered to the Registrar of Companies and those for 2000 will be delivered following the Company's annual general meeting. The auditors have reported on those accounts; their reports were unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985. 7 Annual Report The Annual Report and Accounts is expected to be mailed to shareholders on or before 22 December 2000. Further copies will be available from the registered office of the Company, 2 Great Eastern Wharf, Parkgate Road, London SW11 4TT, or will be accessible via the Company's website at www.aukett.com.

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