Interim Results

Marshalls PLC 4 September 2000 Interim results for Six Months to 30 June 2000 Marshalls Plc, the specialist Landscape, Stone and Clay Products Group, today announces results for the 6 months to 30 June 2000. Six months to Six months to Increase % 30 June 2000 30 June 1999 (£'000) (£'000) Turnover 159,919 147,125 9 Operating profit 27,534 24,166 14 Profit before tax 26,087 23,022 13 Earnings per share (diluted) 11.11p 9.66p 15 Earnings per share (basic) 12.80p 11.35p 13 Dividend per share 3.00p 2.67p 12 * Record half year profits up 13% at £26.1m * Dividends increased by 12% to 3p per share * Balance sheet remains strong with gearing of 4% * All Divisions produced strong results * Programmes in place to build on this strong performance Commenting on these results, Christopher Burnett, Chairman said: 'The results show a continuing improvement in performance in what was a challenging market in the first half. Domestic demand is good, and the initiatives to enhance our market leading position are proving successful. The second half has started well, and we remain confident of a positive outcome for the year.' Enquiries: Christopher Burnett, Chairman Marshalls Plc 020 7404 5959 today Graham Holden, Finance Director 01422 306 400 thereafter Jon Coles Brunswick Group 020 7404 5959 William Cullum CHAIRMAN'S STATEMENT Despite difficult trading conditions in the six months to 30 June 2000 the Group increased profit before tax by a pleasing 13 per cent to £26.1 million. Included in this result were reorganisation costs of £611,000 offset by exceptional property income of £824,000. Turnover improved by 9 per cent to £159.9 million. Diluted earnings per share were 15 per cent ahead at 11.1p. The consensus industry view on trading conditions, which we share, is that the poor April weather, the closing down of many building sites between the Easter and May Day bank holidays, and the slow start up that followed were the main contributing factors to the lower level of industry activity. Underlying demand in the domestic market has been good. However, activity in commercial construction remains subdued. We are pleased with the results under these circumstances, and particularly after incurring additional marketing costs approaching £0.7 million, associated with the new domestic advertising campaign promoting Marshalls block paving, garden and patio products. They are in line with expectations for the 2000 financial year. The Group balance sheet remains strong with gearing of 4 per cent. Borrowings were £7.7 million at the half year, compared with £6.5 million at the end of the 1999 financial year. Capital expenditure totalled £8.5 million in the half year. There has been a substantial reduction in the temporary increase in debtors reported at the 1999 year end. The Board has decided to declare an interim dividend of 3p per ordinary share compared with 2.67p last year, an increase of 12 per cent. This decision will ensure that both Ordinary and 6.5p Convertible Cumulative Preference Shareholders are treated on a par for dividend income purposes when the final opportunity occurs to convert the Preference shares in October this year. The dividend will be paid on 1 October 2000 to shareholders on the register on 15 September 2000. Landscape Products Division Sales increased by 10 per cent to £123.3 million. Operating profit increased by 11 per cent to £21.0 million before providing for reorganisation costs of £0.3 million arising from the closure of a small works at Bridgend and withdrawal from the bespoke artstone market. We have increased capacity and made improvements in manufacturing efficiency during the period to ensure we have good stock levels going into the second half. Much progress has also been made in implementing the various programmes to maintain our market leadership position. These include the establishment of a Marshalls Register of block paving and garden products layers, a marketing campaign to build demand and persuade consumers to use the approved layers, and reorganising the Division around regional manufacturing and Service Centres to provide even better service to our trade customers. Eaglescliffe and Falkirk, the first fully operational Service Centres under the new concept, experienced a considerable uplift in trading. A wider selection of products is being offered progressively from all our other sites as a first step in turning them into service centres. This gains some of the advantages of the concept while allowing time to create the infrastructure to deliver all the other services we now wish to offer customers. A 14 acre green field site, to the west of London, is expected to be acquired in September 2000 for the construction of a new Service Centre to open in late 2001. We remain very confident of the major benefits that will flow from all these various strategic initiatives, which are still to show through in the Division's results. The improved performance during a period of investment and mixed trading conditions, demonstrates the inherent strength of Marshalls market position. Stonemarket which continues to build its own separate brand identity and distribution channels for its garden and patio products produced another set of excellent results in the first six months. Clay Products Division Profit increased by 13 per cent to £2.7 million on turnover down 2 per cent at £14.8 million, reflecting continued benefits from our performance improvement programme before reorganisation costs of £0.3 million to reduce overheads. Our policy of repositioning the business at higher price points in the market away from volume commodity products, together with efficiency improvements and overhead reduction, has resulted in a further increase in margin on sales from 16 per cent to 18 per cent. The next phase of our change programme will concentrate on improvements in manufacturing efficiency to deliver more flexible and lower cost production. The relatively modest capital investment required will begin during the second half of this year. Emerging Businesses Division This is the first time we have published comparative figures for the Division we created last year. Shareholders may recall that the purpose was to bring together the smaller but nevertheless important businesses to give them more focus, decide their future, and where there was a confirmed strategic fit with the Group, help them grow. Currently the Division includes five separate business units: Pre-cast Flooring, Natural Stone, Drainage Products, Street Furniture and Internal Flagstones. The decision to manage these businesses independently has led to a 24 per cent increase in profits to £4.0 million on a 9 per cent increase in turnover to £21.8 million. In addition to focusing on the operational performance of the businesses management are currently examining a number of bolt on acquisition opportunities. Outlook The second half year has begun in line with plan and should ensure that we have a good result for the full year. The Group's stock position, particularly in the Landscape Products Division, is stronger than at any point in the recent past enabling us to provide customers with excellent service throughout the remainder of the year. The many initiatives underway will also create the platform from which to improve profitability and market position still further. Despite signs of weaknesses in some parts of the construction industry, a very strong balance sheet capable of funding both acquisitions and the capital investment needed by our plans enables us to look to the future with confidence. The excellent efforts of our directors, managers and employees in producing these results for the shareholders is very much appreciated by the Board. Christopher Burnett Chairman 4 September 2000 MARSHALLS PLC PRELIMINARY ANNOUNCEMENT OF RESULTS UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT HALF YEAR ENDED 30 JUNE 2000 Unaudited Audited Half year ended Year ended June December 2000 1999 1999 Notes £'000 £'000 £'000 Turnover 1 159,919 147,125 278,547 ======= ======= ========= Operating Profit 1 27,534 24,166 42,754 Interest - net 1,447 1,144 2,110 _______ _______ ________ Profit on ordinary activities before taxation 26,087 23,022 40,644 Taxation on profit on ordinary activities 7,500 6,900 11,700 _______ _______ ________ Profit for the period 18,587 16,122 28,944 Preference dividends - non equity shares 1,544 1,883 3,596 _______ _______ _______ Profit attributable to ordinary shareholders 17,043 14,239 25,348 ======= ======= ======= Earnings per share : Basic 3 12.80p 11.35p 19.90p Diluted 3 11.11p 9.66p 17.60p ======= ======= ========= Dividends declared : Pence per share 3.00p 2.67p 8.00p ======= ======= ========= Cost (£'000) 3,987 3,350 10,431 ======= ======= ========= MARSHALLS PLC PRELIMINARY ANNOUNCEMENT OF RESULTS UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2000 Unaudited Audited June December 2000 1999 1999 Notes £'000 £'000 £'000 Fixed assets Intangible 13,773 10,991 14,146 Tangible 141,888 135,546 139,910 __________ __________ _________ 155,661 146,537 154,056 Current assets Stocks 51,927 37,959 44,296 Debtors 64,321 64,379 39,412 Cash at bank and in hand 12,494 12,613 13,898 __________ __________ _________ 128,742 114,951 97,606 Creditors due within one year 73,857 67,734 56,292 __________ __________ _________ Net current assets 54,885 47,217 41,314 __________ __________ _________ Total assets less current liabilities 210,546 193,754 195,370 Creditors due after more than one year 22,118 22,733 20,027 __________ __________ _________ 2 188,428 171,021 175,343 ========== ========== ========= Capital & Reserves Called up share capital 43,505 43,651 43,498 Share premium 15,057 14,585 15,023 Revaluation reserve 5,166 5,166 5,166 Other reserves 10,274 10,274 10,274 Profit and loss account 114,426 97,345 101,382 __________ __________ _________ Shareholders' funds 188,428 171,021 175,343 ========== ========== ========== Analysis of shareholders'funds Equity 141,467 113,640 128,382 Non equity 46,961 57,381 46,961 __________ __________ _________ 188,428 171,021 175,343 ========== ========== ========= Net borrowings (7,708) (7,835) (6,451) Net gearing 4.1% 4.6% 3.7% ========== ========== ========== MARSHALLS PLC PRELIMINARY ANNOUNCEMENT OF RESULTS UNAUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 30 JUNE 2000 Unaudited Audited Half year ended Year Ended June December 2000 1999 1999 Notes £'000 £'000 £'000 Cash flow from operating activities 4 14,723 13,182 46,884 Returns on investments and servicing of finance (4,120) (3,048) (4,779) Taxation (3,265) (1,299) (11,785) Capital expenditure (8,623) (10,339) (17,779) Acquisitions and disposals - - (3,508) Equity dividends paid - - (9,198) _______ ________ ______ Cash outflow before use of liquid resources and financing (1,285) (1,504) (165) Management of liquid resources 2,650 7,300 4,650 Financing (119) (111) (165) _______ ________ _______ Increase in cash in the period 1,246 5,685 4,320 ======= ========= ======= Reconciliation of net cash flow to movement in net debt Increase in cash in the period 1,246 5,685 4,320 Cash outflow from decrease in debt and lease financing 159 134 74 Cash inflow from decrease in liquid resources (2,650) (7,300) (4,650) _______ _________ _________ Change in net debt resulting from cash flows (1,245) (1,481) 144 New finance leases and loans on acquisition of businesses - - (251) Translation differences (12) (23) (13) _______ _________ _________ Movement in net debt in the period (1,257) (1,504) (120) Net debt at beginning of period (6,451) (6,331) (6,331) _______ _________ _________ Net debt at end of period (7,708) (7,835) (6,451) ======= ========= ========= MARSHALLS PLC PRELIMINARY ANNOUNCEMENT OF RESULTS UNAUDITED OTHER PRIMARY STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2000 Unaudited Audited Half year ended Year ended June December 2000 1999 1999 £'000 £'000 £'000 Consolidated statement of total recognised gains and losses Profit for the period 18,587 16,122 28,944 Exchange differences on foreign currency net investments (12) (23) (13) _______ _______ _________ Total recognised gains and losses 18,575 16,099 28,931 ======= ======= ========= Reconciliation of movements in consolidated shareholders' funds Profit for the period 18,587 16,122 28,944 Dividends (5,531) (5,232) (14,027) Other recognised gains and losses (12) (23) (13) New share capital 41 24 309 issued _______ _______ _________ Net addition to shareholders' funds 13,085 10,891 15,213 Shareholders'funds at beginning of period 175,343 160,130 160,130 _______ _______ _________ Shareholders'funds at end of period 188,428 171,021 175,343 ======= ======= ========= MARSHALLS PLC PRELIMINARY ANNOUNCEMENT OF RESULTS UNAUDITED NOTES ON THE ACCOUNTS FOR THE HALF YEAR ENDED 30 JUNE 2000 Unaudited Audited Half year ended Year ended June December 2000 1999 1999 £'000 £'000 £'000 1. Analysis of turnover and operating profit (a) Turnover Landscape 123,318 112,082 210,426 Clay 14,840 15,153 29,209 Emerging Businesses 21,761 19,890 38,912 _________ __________ ____________ 159,919 147,125 278,547 ========= ========== ============ (b) Operating profit Landscape 21,015 18,855 32,357 Clay 2,700 2,390 4,316 Emerging Businesses 3,979 3,206 6,195 _________ __________ ____________ 27,694 24,451 42,868 Property 824 - 515 Goodwill amortisation (373) (285) (629) Reorganisation costs (611) - - _________ __________ ____________ 27,534 24,166 42,754 ========= ========== ============ 2. Analysis of net assets Landscape 135,626 121,128 117,368 Clay 44,047 46,159 43,522 Emerging Businesses 23,013 21,823 22,680 _________ __________ ___________ 202,686 189,110 183,570 Unallocated net liabilities (14,258) (18,089) (8,227) _________ __________ ____________ 188,428 171,021 175,343 ======== ========== ============ Unallocated net liabilities comprise non-operating assets and liabilities of a financing nature, principally net borrowings, corporation tax, dividends payable and capitalised goodwill. There is no material inter-segmental turnover. MARSHALLS PLC PRELIMINARY ANNOUNCEMENT OF RESULTS UNAUDITED NOTES ON THE ACCOUNTS (CONTINUED) FOR THE HALF YEAR ENDED 30 JUNE 2000 3. Earnings per share The earnings per share figures below have been calculated using the weighted average number of shares in issue during the period of 133,185,177 (June 1999 - 125,434,485) and, in respect of the basic earnings per share figure, profit for the period of £17,043,000 (June 1999 - £14,239,000). The diluted earnings per share figures below have been calculated using the weighted average number of shares in issue during the period plus the issue of dilute shares, which totals 166,908,648 (June 1999 - 166,345,179) and, in respect of the diluted earnings per share figure, total diluted profit for the period of £18,537,000 (June 1999 - £16,071,000). Unaudited Audited Half year ended Year ended June December 2000 1999 1999 Basic earnings per share 12.80p 11.35p 19.90p Diluted earnings per share 11.11p 9.66p 17.60p 4. Reconciliation of operating profit to cash flow from operating activities £'000 £'000 £'000 Operating profit 27,534 24,166 42,754 Amortisation charges 373 285 629 Depreciation charges 6,393 5,810 12,002 Profit on sale of tangible fixed assets (859) (12) (625) (Increase)/decrease in stocks (7,631) 2,778 (3,509) Increase in debtors (25,750) (34,720) (9,403) Increase in creditors 14,663 14,875 5,036 _________ _________ _________ 14,723 13,182 46,884 ========= ========= ========= 5. Other The above financial information does not constitute statutory accounts. The financial information for the year ended 31 December 1999 has been extracted from the statutory accounts for that period which have been delivered to the Registrar of Companies and contain an unqualified audit report. An ordinary dividend of 3.00p per ordinary share will be paid on 1 October 2000 to shareholders on the register at close of business on 15 September 1999.

Companies

Marshalls (MSLH)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today