Interim Results

RNS Number : 9076Z
Mountfield Group plc
30 September 2009
 



Press Release 

30 September 2009



Mountfield Group plc


('Mountfield' or the 'Group')


Interim Results


Mountfield Group plc (AIM:MOGP), a provider of integrated specialist construction support services, announces its interim results for the for the six months ended 30 June 2009.


Overview

Total revenue of £5.37 million

Pre tax loss of £0.77 million

Cash position of £0.8 million

Cost efficiency programme implemented  


Subsequent highlights

Contract slippage has stopped, trading in the current period has started well as market for data centre financing improves


Commenting on the maiden Preliminary Results, Graham Read, Chief Executive Officer of Mountfield Group plc, said: 'Whilst this has been a difficult and disappointing period for the Group with a number of contracts delayed, we are now seeing an increase in activity in our core divisions and the data centre market sector reviving.'  

        


- Ends -





For further information:

Mountfield Group plc


Peter Jay, Executive Chairman

Tel: +44 (0) 20 7398 7718

Graham Read, Chief Executive Officer

www.mountfieldgroupplc.com



Daniel Stewart & Company Plc


Paul Shackleton / Oliver Rigby

Tel: +44 (0) 20 7776 6550

oliverr@danielstewart.co.uk

www.danielstewart.co.uk


Media enquiries:


Abchurch


Charlie Jack / Stephanie Cuthbert

Tel: +44 (0) 20 7398 7718

stephanie.cuthbert@abchurch-group.com

www.abchurch-group.com

 

  

Chairman's Statement



The first six months of this year have been extremely testing for Group. This resulted from the dramatic fall in business activity in the data centre sector in which it operates and the postponement of a number contracts which the Group had expected to begin work on. The causes for postponement were largely due to 3rd party financing of these centres being restricted and accordingly tendering for new business slowed and contracts were postponed.  


However there is current evidence of a return of confidence in the sector, as liquidity pressure eases. This has been reflected in the increased number and size of tenders in which the Group is now involved and the indications that some of the postponed contracts will now be activated at the end of this year or during the early part of 2010.  


In the period the Group's revenue was £5.4 million and the loss before taxation was £0.77 million.


The decision was made to re-structure the operations of Mountfield Land Limited by closing down the operation in East Grinstead which concentrated on small to medium scale social housing schemes and to run the Company from the Group's headquarters in Wickford, Essex. Mountfield Land has been re-focussed on larger scale developments for social housing providers with the intention that the Group will also offer construction services as well as land sourcing for such projects. 


In addition the Company is assessing exciting opportunities in the broader contracting market, as conditions in the sector improve. These include targeting other social housing projects that will draw on the Group's considerable project management skills.  


  Outlook

Although trading conditions remain difficult the Directors expect the second half of the year to produce a significant improvement on the first half and to be able to reverse the trend of the first six months.


For the reasons stated the Directors remain confident of the Group's prospects during the second half of this year and more particularly during 2010.



Peter Jay

Executive Chairman


28 September 2009



  Mountfield Group plc


Condensed consolidated statement of comprehensive income


For the six months ended 30 June 2009 




Six months 

to 30 June

2009

(unaudited)

Six months to 30 June

2008 (unaudited)

Twelve months

 to 31 December 

2008 

(audited)


Note

£

£

£






Revenue


5,371,783

9,668,005

17,444,169

Cost of sales 


(4,690,010)

(8,016,912)

(14,689,825)


Gross profit



681,773


1,651,093


2,754,344






Administrative expenses


(1,011,981)

(600,667)

(1,453,980)

Negative Goodwill


-

-

126,308

Charge in respect of share based payments


(144,987)

-

(52,357)

Loans written off


(217,777)

-

-


Operating (loss)/profit


(692,972)

1,050,426

1,374,315






Net finance costs


(74,405)

16,414

(13,838)


(Loss)/profit before income tax


(767,377)

1,066,840

1,360,477






Income tax expense 

2

143,603

(320,052)

(187,610)

(Loss)/profit for the period and total comprehensive (Loss)/income for the period


(623,774)

746,788

1,172,867






(Loss)/Earnings per share 






Basic (p)

3

(0.37)

1.46

1.55

Diluted (p)

3

(0.37)

1.46

1.54






All amounts relate to continuing operations.










  Mountfield Group plc


Condensed consolidated statement of financial position


As at 30 June 2009 




30 June

2009 (Unaudited)

30 June

2008 (unaudited)

31 December 2008

(audited)



£

£

£

ASSETS





Non-current assets





Intangible assets 


15,816,529

-

15,816,529

Property, plant and equipment


185,698

114,417

193,349



16,002,227

114,417

16,009,878

Current assets





Inventories


141,926

-

135,480

Trade and other receivables


4,397,225

3,802,329

4,328,004

Cash and cash equivalents


806,490

1,508,123

2,178,667

Deferred tax asset


132,069

-

-



5,477,710

5,310,452

6,642,151

TOTAL ASSETS


21,479,937

5,424,869

22,652,029






EQUITY AND LIABILITIES





Share capital and reserves





Issued share capital


171,311

100

169,558

Share premium


492,074

-

318,500

Other reserve


197,344

-

52,357

Merger reserve


12,951,180

-

12,951,180

Reverse acquisition reserve


(2,856,756)

-

(2,856,756)

Retained earnings


726,135

923,830

1,349,909

TOTAL EQUITY


11,681,288

923,930

11,984,748






Current liabilities





Trade and other payables


3,326,066

3,937,941

4,317,056

Short-term borrowings


645,655

52,053

170,325

Finance lease liabilities


13,922

9,851

6,920

Current tax payable


393,269

488,099

731,630



4,378,912

4,487,944

5,225,931

Non-current liabilities





Loan notes


5,419,737

-

5,419,737

Finance lease liabilities


-

12,995

10,079

Provision for deferred taxation


-

-

11,534

TOTAL LIABILITES


9,798,649

4,500,939

10,667,281






TOTAL EQUITY & LIABILITIES


21,479,937

5,424,869

22,652,029









Mountfield Group plc


Condensed consolidated statement of changes in equity


For the six months ended 30 June 2009




Share capital

Share premium

Other reserves

Reverse Acquisition reserve

Merger reserve 

Retained earnings

Total


£

£

£

£

£

£

£


Balance at 1 January 2008

100

-

-

-

-

177,042

177,142









Profit for the period

-

-

-

-

-

746,788

746,788









Balance at 30 June 2008

100

-

-

-

-

923,830

923,930









Balance at 1 July 2008

100

-

-

-

-

923,830

923,930


Shares issued for cash in the period

32,238

-

-

-

-

-

32,238

Shares issued on conversion of loan notes

6,500

318,500

-

-

-

-

325,000









Shares issued on acquisition

  130,820

  -

  -

  -

 12,951,180

  -

13,082,000









Reverse acquisition

(100)

-

-

(2,856,756)

-

-

(2,856,856)









Share based payments

-

-

52,357

-

-

-

52,357









Profit for the period

-

-

-

-

-

426,079

426,079


Balance at 31 December 2008

169,558

318,500

52,357

(2,856,756)

12,951,180

1,349,909

11,984,748









Balance at 1 January 2009

169,558

318,500

52,357

(2,856,756)

12,951,180

1,349,909

11,984,748









Loss for the period

-

-

-

-

-

(623,774)

(623,774)









Share based payments

-

-

144,987

-

-

-

144,987









Shares issued in period to settle creditor

1,753

173,574

-

-

-

-

175,327










Balance at 30 June 2009

171,311

492,074

197,344

(2,856,756)

12,951,180

726,135

11,681,288


  Mountfield Group plc


Condensed consolidated cash flow statement


For the six months ended 30 June 2009





Six months to

30 June 2009

(unaudited)

Six months to

30 June 2008

(unaudited)

Twelve months to 31 December 2008 (audited)



£

£

£

Cash from operating activities: 





(Loss)/profit from operations before interest and tax


(692,972)

1,050,426

1,374,315

Adjusted for:





Depreciation


27,338

3,681

18,776

Share based reserve 


144,987

-

52,357

Negative goodwill


-

-

(126,308)

(Decrease)/increase in inventories


(6,446)

-

243

(Decrease)/increase in trade and other receivables


(69,221)

(1,272,291)

1,107,589

(Decrease)/increase trade and other payables


(890,351)

1,553,749

(1,068,193)

Cash generated by operations


(1,486,665)

1,335,565

1,358,779






Finance costs 


-

-

(8,106)

Finance income


283

16,414

40,679

Taxation paid


(338,362)

167,846

(99,969)

Net cash flows from (used in) operating activities



(1,824,744)


1,519,825


1,291,383






Cash flows from investing activities





Purchase of equipment


(19,686)

(5,709)

(8,671)

Costs of acquisition


-

-

(783,817)

Cash acquired on acquisition


-

-

1,653,603

Net cash flows from (used in) investing activities



(19,686)


(5,709)


861,115






Cash flows from financing activities:





Finance lease rentals 


(3,077)

(1,073)

(6,920)

Repayment of loans


-

(8,414)

(140,730)

Net cash flows used in financing activities



(3,077)


(9,487)


(147,650)

Net (decrease)/increase in cash and cash equivalents



(1,847,507)


1,504,629


2,004,848






Cash and cash equivalents brought forward


2,008,342

3,494

3,494


Cash and cash equivalents carried forward 



160,835


1,508,123


2,008,342






Mountfield Group plc


1.    Notes to the Interim Report


i.    Status of the interim financial statements

The Group's interim financial statements for the six months ended 30 June 2009 were authorised for issue by the directors on 30 of September 2009.


The consolidated interim financial statements, which are unaudited, do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The statutory accounts for the year ended 31 December 2008 have been reported on by the Group's auditors, received an unqualified audit report and have been filed with the registrar of companies at Companies House.


ii.    Accounting policies

The consolidated interim financial statements have been prepared in accordance with the disclosure requirements of the AIM rules and using the accounting policies used in the Report and Accounts of the Group for the year ended 31 December 2008. The AIM rules do not require compliance with the requirements of IAS 34 'Interim Financial Statements' and these interim financial statements have not been prepared in accordance with the requirements of that standard.


iii.    Basis of Preparation

On 9 September 2008, Acre 1124 Limited changed its name to Mountfield Group Limited and on 23 October 2008 it re-registered as Mountfield Group plc ('the Company').


On 16 October 2008, Mountfield Group plc acquired the entire issued share capital of Mountfield Building Group Limited, which had one wholly owned subsidiary, MBG Construction Limited (the 'MGB Group') acquired in August 2008. The consideration of £7,622,000 was satisfied by the issue of 51,220,000 Ordinary Shares of 0.1p each at a price of 10p per share and by the issue of £2,500,000 unsecured non-convertible loan notes. 


As a result of these transactions, the former shareholders of MBG Group became the majority shareholder in the Company. Accordingly, the substance of the transaction was the MBG Group acquired the Company in a reverse acquisition.


Under IFRS 3 'Business Combinations', the acquisition of MBG Group was accounted for as a reverse acquisition. As a consequence of applying reverse acquisition accounting, the results for the period ended 31 December 2008 comprise those of Mountfield Building Group Limited plus those of the Mountfield Group plc and other acquired entities from 16 October 2008.


The comparative figures are those of Mountfield Building Group Limited for the period ended 30 June 2008. The consolidated statement of financial position comprises the combined balances of MBG Group, the Company, together with those of acquired entities mentioned below at 30 June 2009 and 31 December 2008. The comparative consolidated statement of financial position is that of Mountfield Building Group Limited alone at 30 June 2008.


The acquisitions of Connaught Access Flooring Limited, MBG Construction Limited and Mountfield Land Limited were accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree plus any costs directly attributable to the business combination.     



2.    Income tax expense



Six

months to

30 June

2009

Six

months to

30 June

2008


Twelve 

months to 

31 December 2008


£

£

£

Current tax on income for the period

-

320,052

195,721

Deferred tax credit

(143,603)

-

(8,111)


Income tax expense in the income statement

(143,603)

320,052

187,610


3.    (Loss)/Earnings per share


Basic loss/earnings per share


The basic loss/earnings per share are calculated by dividing the earnings attributable to equity shareholders by the weighted average number of shares in issue. In calculating the diluted loss per share, share options outstanding have been taken into account where the impact of these is dilutive. 


The weighted average number of shares in the period were:



Six 

months to

 30 June

2009

Six 

months to 

30 June

2008

Twelve 

months to 

31 December

 2008






Number

Number

Number





Basic ordinary shares of 0.1p each

170,439,897

51,220,000

75,611,034

Dilutive ordinary shares from warrants

-

-

736,776


Total diluted

170,439,897

51,220,000

76,347,810


In the six months to 30 June 2009, the conditions attached to the deferred consideration shares were not met and as such there is no dilutive effect on the average weighted number of ordinary shares or the diluted loss per share.


Earning attributable to equity shareholders of the parent 



Six 

months to

 30 June

2009

Six

months to

30 June

2008

Twelve 

months to 

31 December 2008


Basic (loss)/earnings per share (p)

(0.37)

1.46

1.55

Diluted (loss)/earnings per share (p)

(0.37)

1.46

1.54

  






This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR UKOBRKWRKUAR
UK 100