Interim Results

RNS Number : 2708D

Mercury Recycling Group PLC

12 September 2008

 



MERCURY RECYCLING GROUP PLC

INTERIM REPORT FOR THE PERIOD ENDED 30 JUNE 2008

CHAIRMAN'S STATEMENT

I am pleased to report that the Group's unaudited results for the six months ended 30 June 2008, show an increase in sales, compared to the same period last year, to £1,508,831 from £1,304,000. Operating profits increased by approximately 34% from £233,000 to £312,000 and only include one month's trading figures from our newly acquired subsidiary Envirolite Limited and its associated companies.

The full integration of the businesses is proceeding smoothly. In addition, implementation of the WEEE Directive, as anticipated, is bringing increased sales every month.

Even after taking into account the recent cash purchase of Envirolite, our financial position remains healthy and is improving all the time. We continue to look for complementary businesses which can help us broaden our service and further develop our customer base, whilst also focusing on our recently introduced WEEE and Battery Recycling services.

In my Annual Statement in the 2007 accounts, I said, subject to satisfactory results of course, that the Directors would hope to pay a dividend in respect of this financial year. On the basis of current trading and in the absence of unforeseen circumstances, I am hopeful that this intention might be fulfilled.

I conclude by thanking all our staff for coping so well with the increased workload, which augers well for the future of the Group.

The Rt Hon The Lord Barnett JP PC

Chairman

12 September 2008

Enquiries:

Bryan Neill, Managing Director	Tel: [phone]
John Wakefield, Blue Oar Securities Plc	Tel: [phone]

CONSOLIDATED INCOME STATEMENT 

FOR THE PERIOD ENDED 30 JUNE 2008

		6 Months		6 Months		Year
		ended		ended		ended
		30.6.08		30.6.07		31.12.07
		£'000		£'000		£'000
Revenue		1,509		1,304		2,657
Cost of sales		(102)		(204)		(173)
Gross profit		1,407		1,100		2,484
Administrative expenses		(1,095)		(877)		(2,023)
Operating profit		312		223		461
Investment revenues		9		2		7
Finance costs		(13)		(13)		(23)
Profit before taxation		308		212		445
Tax		(78)		-		(79)
Profit for the period		230		212		366
Earnings per share:	Basic (pence)	0.68p		0.63p		1.09p
	Diluted (pence)	0.67p		0.62p		1.07p

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	6 Months		6 Months		Year
	ended		ended		ended
	30.6.08		30.6.07		31.12.07
	£'000		£'000		£'000
Share based payment costs	-		10		18
Net income recognised directly in equity	-		10		18
Profit for the period	230		212		366
Total income and expense for the period	230		222		384
Opening balance	4,559		4,175		4,175
Closing balance	4,789		4,397		4,559

CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2008

	As at		As at		As at
	30.6.08		30.6.07		31.12.07
	£'000		£'000		£'000
Non-current assets
Goodwill	4,096		3,021		3,021
Other intangible assets	1		2		1
Property, plant and equipment	1,263		1,109		1,158
	5,360		4,132		4,180
Current assets
Trade and other receivables	945		578		673
Cash and cash equivalents	84		323		379
	1,029		901		1,052
Total assets	6,389		5,033		5,232
Current liabilities
Trade and other payables	(881)		(163)		(265)
Obligations under finance leases	(5)		(17)		(7)
Current tax liabilities	(124)		(108)		-
Bank overdrafts and loans	(131)		(25)		(28)
	(1,141)		(313)		(300)
Non-current liabilities
Trade and other payables	(56)		(70)		(60)
Bank loans	(318)		(248)		(233)
Deferred tax liabilities	(85)		-		(79)
Obligations under finance leases	-		(5)		(1)
	(459)		(323)		(373)
Total liabilities	(1,600)		(636)		(673)
Net assets	4,789		4,397		4,559
Equity
Share capital	3,373		3,373		3,373
Share premium	242		242		242
Other reserve	365		283		365
Retained earnings reserve	809		499		579
Total equity	4,789		4,397		4,559

CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2008

	6 Months		6 Months		6 Months
	ended		ended		ended
	30.6.08		30.6.07		31.12.07
	£'000		£'000		£'000
Net cash from operating activities	499		255		471
Investing activities
Interest received	9		2		7
Purchases of property, plant and equipment	(169)		(47)		(201)
Acquisition of subsidiaries (net of cash acquired)	(699)		-		-
Net cash used in investing activities	(859)		(45)		(194)
Financing activities
Proceeds on issue of shares	-		-		17
Repayment of loans	(13)		(12)		(26)
Repayments of finance lease obligations	(4)		(10)		(24)
Net cash used in financing activities	(17)		(22)		(33)
Net increase in cash and cash equivalents	(377)		188		244
Cash and cash equivalents at the beginning of
period	379		135		135
Cash and cash equivalents at end of period	2		323		379
Note to the cash flow statement
Operating profit for the period	312		223		461
Depreciation on plant and equipment	79		79		183
Amortisation of other intangible assets	-		-		1
Decrease in deferred income	(5)		(5)		(9)
Share-based payment expense	-		10		18
Operating cash flows before movements in
working capital	386		307		654
Decrease / (increase) in receivables	22		(45)		(157)
(Decrease) / increase in payables	104		6		(2)
Cash generated by operations	512		268		495
Interest paid	(13)		(13)		(24)
Net cash from operating activities	499		255		471

NOTES TO CONSOLIDATED ACCOUNTS

FOR THE SIX MONTHS ENDED 30 JUNE 2008

1.  Basis of preparation and accounting policies

Basis of preparation

The results for the six months to 30 June 2008 have been prepared under International Financial Reporting Standards (IFRS).

The financial information does not constitute statutory accounts as defined by section 240 of the Companies Act 1985. Full accounts of the company for the year ended 31 December 2007 on which the Auditors gave an unqualified report, have been delivered to the Registrar of Companies.

2.  Earnings per share

The calculation of basic and diluted earnings per share is based upon the profit for the period and the weighted average number of shares in issue during the period.

	6 Months		6 Months		Year
	to		to		to
	30.6.08		30.6.07		31.12.07
	'000		'000		'000
Weighted average number of shares	33,726		33,726		33,726
Options - dilution	480		661		577
	34,206		34,387		34,303

3.  Copies of report

Copies of this interim statement will be despatched to shareholders and will be available to the public at the Registered Office, Mercury House, 17 Commerce Way, Trafford Park, Manchester, M17 1HW.

 

END

 

 

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