Interim Results
Aukett Group PLC
17 May 2002
AUKETT GROUP PLC
2002 INTERIM RESULTS ANNOUNCEMENT
Aukett Group Plc ('Aukett'), one of Europe's leading architecture, design and
engineering groups, with offices in 14 cities in eleven countries, announces
Interim Results for the six months ended 31 March 2002.
Financial Highlights
Six months ended 31 March 2002 2001 change
(as
re-stated)
Turnover, including share of JV's £6.76m £11.54m -41%
Group work done £6.58m £9.48m -31%
(Loss)/profit before tax:
- UK (£1.16m) £0.22m
- Rest of Europe (£0.48m) £0.28m
- Total (£1.64m) £0.50m
(Loss)/earnings per share (2.03p) 0.42p
Dividends per share nil 0.15p
Net assets (compared with 30 September 2001) £2.01m £3.47m
Gearing (compared with 30 September 2001) 147% 38%
Key Points of Statement
* Disappointing first half
* Key Management changes
* Operational re-structuring and cost savings in place
* New accounting policy on pre-contract costs
* Aukett brand remains strong
Chairman Ian Mavor said: 'The first half results are extremely disappointing.
However, your Board remains confident that the quality of the Aukett brand will
continue to meet the exacting demands of the marketplace. The actions taken
will position the Group at a more competitive level with no diminution in
excellence of service and quality. Furthermore, these actions provide the Group
with a strong platform on which our corporate strategy and additional growth can
be developed.'
Enquiries:
Aukett Group Plc
www.aukett.com
Ian Mavor, Chairman
Andrew Lett, Deputy chairman
Robert Warner, Finance director Tel: 020 7924 4949
Binns & Co PR Ltd
Peter Binns, Simon Ellis Tel: 020 7786 9600
AUKETT GROUP PLC
Interim Statement for the six months ended 31 March 2002
Overview
The results for the first half of the current financial year are poor, showing
an operating loss before exceptional charge of £833,000. The exceptional charge
and the results from joint ventures and the associate increased this loss by a
further £713,000.
The Company's trading statement dated 7 March 2002 referred to tough trading
conditions. These have continued during the period under review with no
immediate sign of the anticipated market recovery. Many funders have proved
unwilling to commit and the generally slow rate of new project commissions has
affected business in both the UK and in mainland Europe. As a result group work
done has reduced by 31% compared with the second half of 2000/01.
The exceptional charge reflected the performance of one of the European joint
ventures and the Board has decided to provide against the carrying value of the
goodwill. A change in accounting policy for pre-contractual expenditure has
impacted both the operating results and the balance sheet, by reducing the value
of work in progress.
These results are extremely disappointing. It became imperative that a
fundamental review of the way in which Aukett manages and controls its business
be carried out. This has been done and implemented, together with a major cost
cutting programme. The cost reduction programme will produce savings of some
£600,000 by the end of our financial year.
The Company's bankers are aware of the basis of preparation of this interim
statement (see note 9) and projected cash flow information for the next twelve
months and continue to provide support with the facilities that are already in
place. The Board anticipates a satisfactory renewal of these facilities at the
end of the financial year and has therefore prepared these interim financial
statements on a going concern basis.
Results
Group work done for the six months ended 31 March 2002 amounted to £6.578
million compared with £9.475 million (as re-stated) in the same period last
year, a decrease of 31%. The Group operating loss, before exceptional charge,
of £833,000 compared with a profit of £501,000 (as re-stated) in the same period
last year. Both Group work done and operating profit include adjustments made
under the new accounting policy, as explained below and set out in note 6. The
effect on the balance sheet at 30 September 2001, after adjusting for tax, was
£588,000 and this has been accounted for through reserves as a prior year
adjustment.
The reported loss before tax was £1.636 million (2001: profit of £499,000, as
re-stated). The loss included provisions of some £432,000 against two of the
European joint ventures, of which £332,000 relates to the impairment of goodwill
and is shown as an exceptional charge. The geographical split of the loss was
£1.161 million from the UK, including the above provisions, and £475,000 from
mainland Europe. Net interest of £90,000 was paid during the period compared
with £86,000 during the comparable period last year, reflecting the higher level
of borrowings, partly offset by lower interest rates.
The loss per share was 2.03p (2001: earnings per share of 0.42p, as re-stated).
The Board has not recommended the payment of any dividend.
Change in accounting policy
The change in accounting policy has been introduced in anticipation of the new
Abstract relating to pre-contract costs, which is due to be issued by the Urgent
Issues Task Force, following the draft issued on 6 December 2001. Although this
is not anticipated to be in force until later this year, the Board considered it
prudent to adopt this standard for the interim statement. The new accounting
standard is based on a 'virtual certainty' principle for carrying forward
pre-contractual work. As a result, the work in progress valuation at 31 March
2002, including the share of joint ventures and the associate, was £970,000
lower than would have been the case under the previous policy. Of this,
£128,000 relates to the current year, reducing both work done and profit
accordingly, and £842,000 relates to prior years and has therefore been taken as
an adjustment to reserves. It remains the management's commercial judgement
that the projects to which these adjustments relate will materialise in due
course and therefore the resultant revenue and profit will be recognised in
future periods.
Management changes
Following the fundamental review of the Company's Executive Management the
following changes have been put in place:
- Andrew Lett, formerly Chief Executive, is appointed
Deputy Chairman with responsibility for Client Relations and professional and
product matters. He will also play a leading role in Corporate Planning as the
principal Executive on the Group's Corporate Planning Committee.
- Geoff Harwood, formerly Group Operations Director, is
appointed Managing Director, UK Operations, responsible for delivering the
Group's business performance in the UK.
- John Thake, formerly Group Managing Director, is
appointed Managing Director, European Operations, responsible for delivering the
business results from each of the Group's overseas offices.
These Executives report to the Chairman, Ian Mavor, and comprise the newly
formed Group Executive Committee. This Committee, chaired by Ian Mavor, will
direct the Group's business and ensure the achievement of the set objectives.
Management has also been reorganised below the executive level to align key
sector and geographic responsibilities. These changes along with improved
monitoring, control and forecasting arrangements are designed to provide the
integrated business and professional focus responsive to Aukett's wide range of
clients.
Group operations
Despite the results across the Group, due in the main to the slow down in
project start-ups, there have been successes. New commissions in the UK during
the period include projects from existing clients such as Akeler, Development
Securities, Asda and Skanska in addition to projects from new clients including
Shell, Syngenta, Marriott, Taylor Woodrow and Tritax Europoint.
New commissions received overseas during the period include Arnhem Business Park
in the Netherlands; Deutsche Bahn archive building in Berlin; the next phase of
Via Bodio for Doughty Hanson in Milan; Offices at Val d'Europe outside Paris for
Arlington; and Jinonice shopping centre for TK Developments in Prague.
The business unit performance targets, sector and geographic, now in place are
designed to improve business results over the second half of this financial year
and build towards growth and profitability.
Board changes
Robert Warner, who has been Finance Director since 1992 and Company Secretary
since 1988, has indicated his intention to leave the Company in order to devote
more time in pursuit of his other wider interests. However, he has agreed to
stay on until 19 July 2002, in order to assist in the implementation of the
programme of change referred to above.
Prospects
Your Board remains confident that the quality of the Aukett brand will continue
to meet the exacting demands of the marketplace. The actions taken will
position the Group at a more competitive level with no diminution in excellence
of service and quality. Furthermore, these actions provide the Group with a
strong platform on which our corporate strategy and additional growth can be
developed.
17 May 2002
Aukett Group Plc
2 Great Eastern Wharf
Parkgate Road
London SW11 4TT
Consolidated profit and loss account
for the six months ended 31 March 2002
Six months ended Six months ended Year ended
31 March 2002 31 March 2001 30 September 2001
unaudited unaudited audited
(as re-stated) (as re-stated)
£000 £000 £000
Turnover: Group and share of joint ventures (note 1) 6,762 11,542 21,518
Less: share of joint ventures' turnover (843) (1,727) (2,739)
--------- ------------ ------------
Group turnover 5,919 9,815 18,779
Movement in amounts recoverable on contracts 659 (340) 220
--------- ------------ ------------
Group work done 6,578 9,475 18,999
--------- ------------ ------------
Group operating (loss)/profit before exceptional
charges (833) 501 773
Exceptional charge relating to impairment of
goodwill in joint venture (332) - -
-------- ----------- ------------
Group operating (loss)/profit (note 2) (1,165) 501 773
Share of operating (loss)/profit in joint ventures
and associate (381) 84 (113)
Net interest payable by Group (90) (86) (180)
--------- ------------ ------------
(Loss)/profit on ordinary activities before tax (1,636) 499 480
(note 3)
Tax on (loss)/profit on ordinary activities (note 4) 168 (198) (322)
--------- ------------ ------------
(Loss)/profit on ordinary activities after tax (1,468) 301 158
Dividends - (109) (109)
--------- ------------ ------------
Retained (loss)/profit of the Group and its share
of joint ventures and associate (1,468) 192 49
===== ======= =======
(Loss)/earnings per share (note 5):
Basic (2.03)p 0.42p 0.22p
Diluted (1.99)p 0.41p 0.21p
--------- ------------ ------------
Summarised consolidated balance sheet
at 31 March 2002
31 March 2002 30 September 2001
unaudited unaudited audited audited
(as re-stated) (as re-stated)
£000 £000 £000 £000
Fixed assets
Intangible assets 630 957
Tangible assets 1,417 1,438
Investments in joint ventures:
Share of gross assets 349 2,900
Share of gross liabilities (301) (2,872)
------------- -------------
48 28
Investment in associate 59 74
------------- ------------
2,154 2,497
Current assets
Debtors 6,312 6,800
Cash at bank and in hand 182 488
------------- -------------
6,494 7,288
Creditors falling due within one year (6,277) (5,882)
------------- -------------
Net current assets 217 1,406
------------- ------------
Total assets less current liabilities 2,371 3,903
Creditors falling due after one year (366) (431)
Provisions for liabilities and charges - -
------------- ------------
Net assets 2,005 3,472
======= =======
Capital and reserves
Share capital 724 724
Share premium account 1,794 1,794
Profit and loss account (513) 954
------------- ------------
Equity shareholders' funds 2,005 3,472
======= =======
Summarised consolidated cash flow statement
for the six months ended 31 March 2002
Six months ended Six months ended Year ended
31 March 2002 31 March 2001 30 September 2001
unaudited unaudited audited
(as re-stated) (as re-stated)
£000 £000 £000
Net cash flow from operating activities (857) 434 1,379
Returns on investments and servicing of finance (90) (86) (180)
Tax paid (353) (262) (427)
Capital expenditure (59) (164) (216)
Acquisitions - (2) (21)
Equity dividends paid - (181) (290)
_______ _______ _______
Net cash (outflow)/inflow before financing (1,359) (261) 245
Net cash outflow from financing (291) (279) (595)
_______ _______ _______
Decrease in cash during the period (1,650) (540) (350)
_______ _______ _______
Reconciliation of operating (loss)/profit to
net cash flow from operating activities
Group operating (loss)/profit (1,165) 501 773
Depreciation and amortisation of fixed assets
- Exceptional write off of goodwill 332 - -
- Other 346 315 724
Decrease/(increase) in debtors 809 (21) 146
Decrease in creditors (1,179) (361) (264)
_______ _______ _______
Net cash flow from operating activities (857) 434 1,379
_______ _______ _______
Statement of total recognised gains and losses
Six months ended Six months ended Year ended
31 March 2002 31 March 2001 30 September 2001
unaudited unaudited audited
(as re-stated) (as re-stated)
£000 £000 £000
(Loss)/profit for the financial period (1,468) 301 158
Currency translation differences 1 4 31
_______ _______ _______
Total recognised gains and losses relating to
the period (1,467) 305 189
Prior period adjustments (note 6) (588) (283) (283)
_______ _______ _______
Total recognised gains and losses since last
annual report (2,055) 22 (94)
_______ _______ _______
Reconciliation of movements in shareholders' funds
31 March 2002 30 September 2001
unaudited audited
(as re-stated)
£000 £000
Opening shareholders' funds as originally presented 4,060 3,666
Prior period adjustments (note 6) (588) (283)
_______ _______
Opening shareholders' funds (as re-stated) 3,472 3,383
Exercise of share options - 38
Capitalisation of ESOT contributions - (29)
Foreign exchange gain 1 31
(Loss)/profit attributable to shareholders (1,468) 158
Dividends proposed or declared - (109)
_______ _______
Closing shareholders' funds 2,005 3,472
_______ _______
Notes
1 Turnover and work done
An analysis of turnover and work done of the Group, including its share of joint
ventures, by geographical area of destination is as follows:
Six months ended Six months ended Year ended
31 March 2002 31 March 2001 30 September 2001
unaudited unaudited audited
Turnover (as re-stated) (as re-stated)
£000 £000 £000
United Kingdom 4,884 8,242 14,476
Rest of Europe 1,878 3,300 7,042
_______ ______ _______
Total 6,762 11,542 21,518
_______ _______ _______
Movements in amounts recoverable on contracts
United Kingdom 114 (262) 777
Rest of Europe 348 (66) (302)
_______ _______ _______
Total 462 (328) 475
_______ _______ _______
Work done
United Kingdom 4,998 7,980 15,253
Rest of Europe 2,226 3,234 6,740
_______ _______ _______
Total 7,224 11,214 21,993
_______ _______ _______
2 Group operating (loss)/profit
Group work done 6,578 9,475 18,999
Staff costs (4,205) (5,145) (9,816)
Amortisation of goodwill (27) (27) (54)
Exceptional write-down of goodwill (332) - -
Depreciation (352) (288) (670)
Other operating charges (2,827) (3,514) (7,686)
_______ _______ _______
Group operating (loss)/profit (1,165) 501 773
_______ _______ _______
3 (Loss)/profit on ordinary activities before tax
An analysis of (loss)/profit on ordinary activities before tax by geographical
area is as follows:
Six months ended Six months ended Year ended
31 March 2002 31 March 2001 30 September 2001
unaudited unaudited audited
(as re-stated) (as re-stated)
£000 £000 £000
United Kingdom (1,161) 216 260
Rest of Europe (475) 283 220
_______ _______ _______
Total (1,636) 499 480
_______ _______ _______
4 Tax (credit)/charge on (loss)/profit on ordinary activities
Six months ended Six months ended Year ended
31 March 2002 31 March 2001 30 September 2001
unaudited unaudited audited
(as re-stated) (as re-stated)
£000 £000 £000
United Kingdom corporation tax at 30% (185) 48 205
Overseas tax 7 111 195
Adjustments in respect of change in accounting
policy (note 6) - 12 (132)
Deferred tax - - -
Share of tax from joint ventures and associate 10 27 54
_______ _______ _______
Total (168) 198 322
_______ _______ _______
5 (Loss)/earnings per share
The (loss)/earnings per share are calculated on the loss attributable to
shareholders of £1,468,000 for the six months ended 31 March 2002 and on
72,421,394 (2001: 72,294,554) ordinary shares, being the weighted average number
of shares in issue during the period. Diluted (loss)/earnings per share are
calculated on 73,826,844 (2001: 73,886,036) ordinary shares.
6 Summary of effects of change in accounting policy
Effect on operating profit Six months ended Six months ended Year ended
31 March 2002 31 March 2001 30 September 2001
unaudited unaudited audited
(as re-stated) (as re-stated)
£000 £000 £000
Operating (loss)/profit, before exceptional
charge, under previous accounting policy (710) 461 1,200
Adjustments to work in progress under new
accounting policy: (123) 40 (427)
_______ _______ _______
Operating (loss)/profit, before exceptional
charge, as now reported (833) 501 773
_______ _______ _______
In addition to the above, adjustments to the share of results from joint
ventures and the associate under the new accounting policy have reduced the
reported results by £5,000 for the six months ended 31 March 2002 (2001: £2,000;
year ended 30 September 2001: £10,000).
Effect on net assets 31 March 2002 31 March 2001 30 September 2001
unaudited unaudited audited
(as re-stated) (as re-stated)
£000 £000 £000
Net assets under previous accounting policy 2,684 3,845 4,060
Adjustments to work in progress under new
accounting policy:
Current period (128) 38 (437)
Prior periods (842) (405) (405)
Tax relating to above adjustments:
Current period 37 (12) 132
Prior periods 254 122 122
_______ _______ _______
Net assets as now reported 2,005 3,588 3,472
_______ _______ _______
7 Analysis of net debt
An analysis of the movement in net debt during the period is as follows:
At 1 October Cashflow Non-cash At 31 March
2001 movements 2002
£000 £000 £000 £000
Cash at bank and in hand 488 (306) - 182
Overdrafts repayable on demand (838) (1,344) - (2,182)
_____ _____ _____ _____
(350) (1,650) - (2,000)
Bank and other loans repayable in:
Less than one year (120) 40 (80) (160)
More than one year (120) - 80 (40)
Hire purchase and finance
lease creditors (732) 250 (272) (754)
_____ _____ _____ _____
(972) 290 (272) (954)
_____ _____ _____ _____
Net debt (1,322) (1,360) (272) (2,954)
===== ===== ===== =====
8 Statutory accounts
The comparative figures for the year ended 30 September 2001 are not the
Company's statutory accounts for that financial year. Statutory accounts for
that financial year have been reported on by the Company's auditors and
delivered to the Registrar of Companies. The report of the auditors was
unqualified and did not contain a statement under section 237(2) or (3) of the
Companies Act 1985.
9 Basis of preparation
The Company meets its day to day working capital requirements through an
overdraft facility, which is repayable on demand. The nature of the Company'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. They consider that the Company will continue to operate within the
existing overdraft facilities, as agreed in January 2002, until the end of the
Company's financial year when it is anticipated that suitable facilities will be
made available prior to the commencement of the new financial year. 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. 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.
10 Further information
Further information about the Group, including copies of the 2001 annual report,
additional copies of this interim report and recent press releases sent to the
London Stock Exchange, may be obtained from the Company's registered office at 2
Great Eastern Wharf, Parkgate Road, London SW11 4TT. Such information may also
be obtained through the Company's website at www.aukett.com. In addition, the
Company Secretary may be contacted by email at cosec@aukett.com. The interim
report is expected to be mailed to shareholders on or before 14 June 2002.
END
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 22nd November 2024
COMPANIES COVERED:
Latest directors dealings
- 1 day ago Cerillion
- 1 day ago Associated British Foods
- 1 day ago B&M European Value Retail S.A. (DI)
- 1 day ago B&M European Value Retail S.A. (DI)
- 1 day ago Haleon