Final Results-Replacement

Aukett Group PLC 11 December 2003 CORRECTION The following replaces the Final Results announcement released today at 7:00 under RNS number 1268T. In the Financial Highlights, 'Profit/(loss) before tax and exceptional items', the figure for 2002 should be (2,114) and not 2,110 as previously stated. All other details remain the same, the full amended text appears below For Release 11th December 2003 AUKETT GROUP PLC 2003 PRELIMINARY RESULTS ANNOUNCEMENT Return to profitability sustained; Improving Outlook Aukett Group Plc ('Aukett'), the international group of architects, designers and engineers, announces its Preliminary Results for the 12 months ended 30 September 2003. Aukett provides creative design consultancy in a diverse range of sectors including: retail, commercial property, urban leisure, hotels, interior design, healthcare, education, technical support facilities and transportation. In the UK significant new projects during the year were undertaken in London, Manchester, Leeds, Cambridge and in the South of England. These include: residential, retail and commercial complexes in Folkestone and the Isle of Dogs, East London; a new Fujitsu facility in Manchester; a new Palestra office development in Southwark; Sky Sports facilities at BsB's West London HQ; new office buildings at Leeds Valley Business Park; master plans for mixed use developments in Brentford, West London and Northfleet, Kent; interior design for the Independent Police Complaints Commission; new offices for the DVLA in Swansea; a retail park in Swindon; and the fit-out for the Diageo HQ Building. In addition, Government funded projects were undertaken for Brunel University, the Institute of Education, Birkbeck College, University of London and Addenbrookes Hospital, Cambridge. Overseas, commercial schemes were undertaken for Habitat Grupo Inmobaliario, in Barcelona, for a new town in Kozino, Russia, for General Electric Global Research in Munich and for a new HQ for Microsoft in Athens. Financial Highlights Year ended 30 September 2003 2003 2002 £000 £000 Turnover 14,032 13,677 Group work done 13,555 13,102 Operating profit/(loss) 530 (1,337) Profit/(loss) before tax and exceptional items 308 (2,114) Basic and diluted loss per share (0.13p) (3.27p) Dividends per share Nil Nil Net assets(compared with 30 September 2003) 1,493 1,102 Gearing(compared with 30 September 2003) 128% 217% Key Points of Statement * Return to profitability from final quarter last year sustained. * Progress towards strengthening group's financial and commercial position. * Effective disposal of two unprofitable European joint ventures. * Positive cash inflow generated of £1.3m before financing and creditor movement. * Net borrowings down by 20.8%, creditors reduced. * Three board appointments from within company. * Six major industry awards won for various UK projects. * UK business improving, working towards long term growth. * European schemes underway for Proctor & Gamble in Moscow, BT in Munich, Royal Bank of Scotland across Europe, and master planning for a new town in Kozino, Russia. * On going framework agreements with the Department of Transport, MoD and Asda. Chairman Ian Mavor said: 'I am pleased that the Group's turnaround has been effected with the resultant small improvements in the Group's balance sheet, led by an improved UK performance. The improvement in cash flow should continue next year. The Board believes that it will be sufficient to support a modest infrastructure investment programme, necessary to enhance the Group's competitive advantage, as well as a further reduction in gearing. The Board believes that the Group's profitability will be sustained in 2003/04 but remains cautious about the pace of growth.' Enquiries: Aukett Group Plc www.aukett.com Ian Mavor, Chairman Tel: 020 7924 4949 Patrick Carter, Group Finance Director Binns & Co PR Ltd Peter Binns, Sam Allen, Victoria Stephens Tel: 020 7786 9600 Results for the twelve months ended 30 September 2003 Introduction I am pleased to report on a year in which progress has been made towards strengthening the Group's financial and commercial position against the background of challenging trading conditions. The return to profitability of the Group as a whole, achieved in the final quarter of last year, has been sustained. Profit on ordinary activities before exceptional write-offs was £308,000 (2002: loss £2,114,000). Decision makers in our sectors remained cautious and, as a result, a significant increase in the volume of business for the Group as a whole did not materialise. Turnover increased marginally to £14.03m (2002: £13.68m). Although results from Europe are poor, positive progress has been made in implementing changes in those operations. At the half-year we indicated our intention to revise the arrangements for the provision of services in Europe. The exceptional losses from subsequent disposals of our interests in certain joint ventures were £465,000 (2002: impairment of goodwill £333,000). The remaining joint ventures are better than break-even. The business has generated a positive cash inflow of £1.3m before financing and movement in creditors. This has been applied to reduce both creditors and bank borrowings resulting in net borrowings falling to £1.911m (2002: £2.390m) and gearing reducing to 128% (2002: 217%). Trade debtor days deteriorated during the year but have improved since the year-end. The bank facility has been renewed for the forthcoming 12 months at a level which the directors believe continues to give the Company sufficient flexibility to address the business needs over that period. Board Changes In June 2003 three executives joined the Board. Stuart McLarty was appointed Director responsible for group marketing, Paul Newman was appointed Director responsible for group project performance and Stephen Embley was appointed Director responsible for group resource co-ordination. All three are qualified design professionals who have been with the Company for over ten years. Together they are responsible for the formulation and implementation of initiatives to utilise across the Group the range of skill sets and client sector knowledge in marketing, sales support and project management. Andrew Lett resigned from the Board in August 2003 and left the Company on 30 September 2003. We appreciate and thank him for his many years of loyal service to the Group. Review of Operations As stated in our half-year results we experienced a slow down in work levels in early spring. This continued through the second half of the year. Costs were trimmed accordingly to ensure that the Group as a whole remained profitable but market research and marketing spend were maintained throughout to develop the opportunities that ultimately will deliver the required long-term growth in both turnover and profit. UK operations In the UK the business unit organisation began to make an impact in accessing new business. The retail sector has had an inconsistent year. As retail is often the driver for mixed use developments, Aukett's expertise has brought success in winning two major new commissions during the year in Folkestone and the Isle of Dogs, East London. They both include approximately 600 apartments as well as retail and commercial elements thus extending our sector coverage into residential. They are currently progressing through planning stages. The corporate office sector has had a difficult year with a significant decline in activity across the industry. Nevertheless major projects have been won and work has started on a new facility for Fujitsu in Manchester, the mechanical and electrical engineering services for the 20,000 sq. metre Palestra office development in Southwark, new office buildings at Leeds Valley Business Park and the office and studio facilities for Sky Sports at the British Sky Broadcasting HQ site in West London. Urban planning in towns and cities and master planning of large greenfield sites have been buoyant and furthermore have opened up major project opportunities. We have received a number of important appointments including a high density mixed use master plan in Brentford, West London, which has been completed, and an on-going 90 acre mixed use master planning project at Northfleet, Kent, which combines commercial, retail, educational, leisure and hotel elements. Our success is not limited to the UK. Inter alia, we have secured and completed a commercial site master plan in Barcelona for Habitat Grupo Inmobiliario and are now working on a 505 hectare master plan for a new town in Kozino, Russia. Interior design has also been increasingly active. A commission for the Independent Police Complaints Commission was completed this year and the Company has projects for new offices for the Driver and Vehicle Licensing Agency in Swansea and a new HQ for Microsoft in Athens. These are supplemented by regular projects arising under existing framework agreements with BT, The Royal Bank of Scotland and the Office of the Deputy Prime Minister. We have been active in pursuing Government funded programmes in health and education. These types of projects will take some time to crystallise. Nevetheless we have completed a master plan for Brunel University during the year and are currently involved in the design of a knowledge laboratory for a collaboration between the Institute of Education and Birkbeck College, University of London. We have also substantially completed a master planning study for Addenbrookes Hospital, Cambridge and a strategic master plan for the adjacent research & development campus. In the UK, the Company has won six major industry awards including the 'Retail Property Award' for the best retail park for the Orbital Shopping Park, Swindon, and from the British Council for Offices their National award for the fit-out of the new headquarters for BT Wholesale Markets Division near Gatwick and their London region award for the fit-out of the Diageo GB headquarters building. European operations Consistency of quality in our design and delivery are the key factors which international clients require in Europe. Aukett's brand concentrates on the integration of marketing and sales and the effective use of our skills and knowledge. There are signs that this approach is bringing some success. We are now undertaking the Moscow HQ for Proctor & Gamble and a refurbishment of BT's office space in Munich. Both of these projects will be ongoing in 2004. The Royal Bank of Scotland has awarded us further project work on their facilities across Europe. Furthermore we have also substantially completed a major new research facility for General Electric Global Research in Munich with the Facilities Group. We intend to continue this drive and our offices in Warsaw and Prague are well placed to market our services as the European Union welcomes new Eastern European member states in 2004. As announced in our Interim Report in June 2003, we were taking action to rationalise our overseas operations. We have now disposed of our interest in our Spanish joint venture which made significant losses over the past few years. In addition we have withdrawn from the management of the Paris based joint venture and as a result we have written off our investment Management and staff The progress the Group has made during the year is in no small way thanks to the skill and enthusiasm of our staff. They have continued to maintain the high standards set both by us and our clients in what is a very demanding and competitive market. We do understand that financial restraints have put increased pressure on management and staff. I am delighted to report that they responded positively to the challenge and made a significant contribution to the changes that have reversed last year's performance. The fact that the Group has won a number of industry awards and many new appointments this year is evidence of their professionalism and quality of work. On behalf of the Board I would like to thank all our employees for their hard work and dedication throughout the year. Summary I am pleased that the turnaround outlined in this report has been effected with the resultant small improvement in the Group's balance sheet. This has been led by an improved UK performance. We have dealt with the two badly performing joint ventures. Our remaining European operations are in fragile local markets but they remain an important conduit for delivering services under the Aukett brand to international clients. There has been a modest improvement in net borrowings. The improvement in cash flow should continue next year and the Board believes that it will be sufficient to support a modest infrastructure investment programme, necessary to enhance the Group's competitive advantage, as well as a further reduction in gearing. The Board believes that the Group's profitability will be sustained in 2003/04 but remains cautious about the pace of growth. IGF Mavor Chairman Consolidated profit and loss account For the year ended 30 September 2003 2003 2002 £000 £000 Group turnover (note 1) 14,032 13,677 Movement in amounts recoverable on contracts (477) (575) -------- -------- Group work done (note 1) 13,555 13,102 ------- ------- Group operating profit/(loss) (note 2) 530 (1,337) Share of operating loss in joint ventures and associate (3) (568) Exceptional charges: Impairment of goodwill in joint venture - (333) Loss on disposal of joint ventures (note 6) (465) - -------- -------- Profit/(loss) on ordinary activities before tax 62 (2,238) -------- -------- Net interest payable by Group (219) (209) -------- -------- Loss on ordinary activities before tax (note 3) (157) (2,447) Tax credit on loss on ordinary activities 62 77 -------- -------- Loss on ordinary activities after tax (95) (2,370) Dividends - - -------- -------- Retained loss for the year (95) (2,370) -------- -------- Basic and diluted loss per share (0.13p) (3.27p) Consolidated Balance Sheet At 30 September 2003 2003 2002 £000 £000 £000 £000 Fixed assets Intangible assets 503 595 Tangible assets 679 1,120 Investments in joint ventures: Share of gross assets 349 242 Share of gross liabilities (311) (213) -------- ------- 38 29 Investment in associate 28 25 --------- ------ 1,248 1,769 Current assets Debtors 6,239 6,624 Cash at bank and in hand 246 429 -------- ------- 6,485 7,053 Creditors falling due within one year (6,092) (7,488) -------- ------- Net current assets/(liabilities) 393 (435) --------- ------ Total assets less current liabilities 1,641 1,334 Creditors falling due after one year (148) (232) --------- ------ Net assets 1,493 1,102 --------- ------ Capital and reserves Called up share capital 724 724 Share premium account 1,794 1,794 Profit and loss account (1,025) (1,416) --------- ------ Equity shareholders' funds 1,493 1,102 --------- ------ Statement of total recognised gains and losses For the year ended 30 September 2003 2003 2002 £000 £000 Loss for the financial year (95) (2,370) Foreign exchange differences 69 - ------- ------- Total gains and losses recognised in the year (26) (2,370) ------- ------- Reconciliation of movements in shareholders' funds For the year ended 30 September 2003 2003 2002 £000 £000 Opening shareholders' funds 1,102 3,472 Exchange movement 69 - Reinstatement of goodwill written off to reserves 417 - Loss attributable to shareholders (95) (2,370) ------- ------- Shareholders' funds at 30 September 1,493 1,102 ------- ------- Consolidated Cash Flow Statement For the year ended 30 September 2003 2003 2002 £000 £000 £000 £000 Net cash inflow/ (outflow) from operating activities 746 (205) Returns on investments and servicing of finance (218) (198) Tax paid (9) (286) Capital expenditure Purchase of tangible fixed assets (9) (91) Acquisitions and disposals Investment in subsidiary undertakings - (3) Investment in joint ventures - (2) Disposal of investment in joint ventures 28 - ------- ------ 28 (5) -------- ------ Net cash inflow/(outflow) before financing 538 (785) Financing Repayment of loans (120) (80) ------- ------ Principal repayments under hire purchase contracts and finance leases (328) (460) ------- ------ Net cash outflow from financing (448) (540) -------- ------ Increase/(decrease) in cash 90 (1,325) -------- -------- Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash for the year 90 (1,325) Cash outflow from decrease in debt 448 540 New finance leases (59) (283) -------- ------ Movement in net debt during the 479 (1,068) Net debt at 1 October 2002 (2,390) (1,322) -------- ------- Net debt at 30 September 2003 (1,911) (2,390) ========= ======== NOTES 1 Turnover and work done An analysis of turnover and work done by geographical area of destination is as follows: 2003 2002 United Rest of United Rest of Kingdom Europe Total Kingdom Europe Total £000 £000 £000 £000 £000 £000 Turnover Gross turnover 12,152 3,484 15,636 11,055 4,544 15,599 Less: Share of joint ventures - (1,204) (1,204) - (1,738) (1,738) Share of associate - (400) (400) - (184) (184) ------- ------ ------ -------- ------- ------- Group turnover 12,152 1,880 14,032 11,055 2,622 13,677 Movement in amounts recoverable on contracts Gross movement (535) 27 (508) (1,159) 303 (856) Less: Share of joint ventures - 37 37 - 262 262 Share of associate - (6) (6) - 19 19 ------- ------ ------ -------- ------- ------- Group movement in amounts recoverable on contracts (535) 58 (477) (1,159) 584 (575) Work done Gross work done 11,617 3,511 15,128 9,896 4,847 14,743 Less: Share of joint ventures - (1,167) (1,167) - (1,476) (1,476) Share of associate - (406) (406) - (165) (165) ------- ------ ------ -------- ------- ------- Group work done 11,617 1,938 13,555 9.896 3,206 13,102 ------- ------ ------ -------- ------- ------- 2 Group operating profit/(loss) 2003 2002 £000 £000 Group work done 13,555 13,102 Staff costs (7,342) (7,471) Amortisation of goodwill (92) (29) Depreciation (509) (651) Other operating charges (5,082) (6,288) -------- ------- Group operating profit/(loss) 530 (1,337) ========= ======= 3 (Loss)/profit on ordinary activities before taxation An analysis of (loss)/profit on ordinary activities before taxation by geographical area is as follows: 2003 2002 United Rest of United Kingdom Rest of Kingdom Europe Total £000 Europe Total £000 £000 £000 £000 £000 Company and subsidiaries 183 (337) (154) (1,660) (219) (1,879) Share of joint ventures - (4) (4) - (529) (529) Share of associate - 1 1 - (39) (39) -------- ------- ------- ------- ------- ------- Group total 183 (340) (157) (1,660) (787) (2,447) ======== ======= ======= ======= ======= ======= 4 Loss per share The loss per share is calculated on the loss attributable to shareholders of £95,000 for the year ended 30 September 2003 (2002: loss £2,370,000) and on 72,421,394 (2002: 72,421,394) ordinary shares, being the weighted average number of shares in issue during the year. There is no additional dilution to the report in either year in accordance with FRS 14, Earnings per Share. 5 Amounts recoverable on contracts Payments on account, as included in creditors, exceeded amounts recoverable on contracts, as included in debtors, by £1,011,000 at 30 September 2003 (2002: £534,000). These amounts comprise: 2003 2002 Amounts Payments on Amounts Payments on recoverable on account recoverable account contracts on contracts £000 £000 £000 £000 Value of work done 18,090 5,006 19,285 7,724 Fees rendered on account (17,655) (6,452) (18,590) (8,953) ----------- ----------- ----------- ----------- 435 (1,446) 695 (1,229) ========== ========= ========= ========== 6 Disposal of joint ventures Spain : Aukett Imagina SL On 16th July 2003 the Group sold its 50% interest in the ordinary share capital of Aukett Imagina SL to its joint venture partner in Spain, Imagina Management Limited, for cash consideration of €40,000 (£28,000) and the assumption by Imagina Management Limited of all liabilities. At the date of the disposal, the share of the cumulative losses of the undertaking recorded in the Group's books amounted to £168,000. Goodwill of £417,000, which relates to the acquisition of the first tranche of Aukett Imagina SL, was eliminated against reserves in accordance with SSAP 22 in the financial year ended 30 September 1998. On disposal of the Group's interest in Aukett Imagina SL, FRS 10 Accounting for Goodwill, requires that goodwill previously eliminated directly against reserves is brought into the profit and loss account as a component of the profit or loss on disposal. This has given rise to an exceptional loss on disposal which is offset against a corresponding movement in reserves. France: Aukett Art & Build SELARL The Group no longer exercises either joint control or significant influence over Aukett Art & Build SELARL. In accordance with FRS 9, it is no longer appropriate to treat the entity as either a joint venture or as an associate. Consequently, the entity has been accounted for as a simple investment and all liabilities, to the extent that the Group is obliged to pay, have been provided. At the effective date of the loss of influence, share of the cumulative losses of the undertaking recorded in the Group's books amounted to £282,000. The exceptional loss arising on the effective disposal was £48,000. 7 Statutory accounts The financial information set out above does not constitute the Company's statutory accounts for the years ended 30 September 2003 or 2002 but is derived from those accounts. Statutory accounts for 2002 have been delivered to the Registrar of Companies and those for 2003 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. The Company's statutory accounts for 2003 will include the following note in respect of their basis of preparation: 'The Group meets its day to day working capital requirements through an overdraft facility which is repayable on demand. The nature of the Group's business is such that there can be considerable uncertainty over the timing of major projects and the commencement of cash flows arising therefrom. The directors have prepared projected cash flow information for the next twelve months and they consider that the Group will continue to operate within the overdraft facility recently agreed, which expires on 30 November 2004. On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis. However, the margin of facilities over requirements is not large and inherently there can be no certainty as to these matters and, in the event that projects are delayed or expectations included in the directors' projections are otherwise not met, the Group may need to renegotiate its banking facilities. The financial statements do not include any adjustments that would result from a failure by the Group to obtain adequate future funding.' 8 Annual Report The Annual Report and Accounts is expected to be mailed to shareholders on or before 29 December 2003. 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. This information is provided by RNS The company news service from the London Stock Exchange FR UAUKROARUARA

Companies

Aukett Swanke Group (AUK)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today