Final Results
Gleeson(M J)Group PLC
26 October 2007
Friday 26 October 2007
M J GLEESON GROUP PLC - PRELIMINARY ANNOUNCEMENT
Gleeson announces much improved results for the year to 30 June 2007. The year
has been one of successful execution of the transformation strategy announced in
March 2006, following the Strategic Review.
KEY POINTS - FINANCIAL
• On continuing operations, profit before tax was much improved at £8.3m
(2006: loss £12.3m) on revenue of £194.3m (2006: £189.0m)
• Profit for the year attributable to equity holders of the parent company
increased to £30.0m (2006: £9.7m).
• Basic earnings per share from continuing operations was 14.3p (2006:
loss 23.3p)
• A final dividend per share of 7.3p (2006: 6.9p), up 5.8%, is proposed,
making a total for the year of 9.2p (2006: 8.5p), up 8.2%.
• Year end total equity attributable to the equity holders of the parent
company increased by 17.3% to £183.3m (2006: £156.2m), representing net assets
per share of 351p (2006: 303p), up 15.8%.
• Net cash at 30 June 2007 of £38.0m compared with net debt of £14.7m at
30 June 2006 and £102.3m at 31 December 2005.
KEY POINTS - COMMERCIAL
• Gleeson Regeneration & Homes and Gleeson Strategic Land made an
operating profit of £4.1m (2006: loss £11.7m). This much improved
performance reflects two key factors: an increase in unit sales to 639
(2006: 487) and the inclusion in 2006 of a £7.5m charge in relation to land
value write-downs. Importantly, in April, the Group won its first
regeneration contract in the South, at Ashford in Kent.
• Over the last two years, Powerminster Gleeson Services has transformed
itself from an M&E contractor, working as a sub-contractor to principal
contractors, into a property maintenance service provider. From a material
loss in 2005, the business has now been profitable for the last two years.
• Gleeson Capital Solutions, which focuses on PFI investments, had a
successful year, both operationally and financially.
• Year end employees reduced to 461 (2006: 1,244), mainly as a result of
the disposal of the Engineering Division in October 2006.
PROSPECTS
Dermot Gleeson, Chairman, stated 'The recent turbulence in the financial markets
has resulted in mortgage lenders becoming more cautious. This, combined with
higher interest rates, has had a marked impact on buyer confidence and house
prices in many parts of the country. At this stage it is not clear how
protracted or severe this market adjustment is likely to be.
In these circumstances, it is extremely difficult to forecast house sales.
However, the Board believes that the Group's prominent and highly respected
presence in the regeneration sector, together with its strategic land business,
will enable it to develop strategies to mitigate the effects of a weaker market
and to respond effectively to the challenges and opportunities ahead.
The announcement on 31 March 2006 of the outcome of the Group's Strategic Review
referred to the possibility of a return of cash to shareholders following the
completion of the Board's transformation programme. In the light of the
uncertainty described above, the Board has decided to defer taking a decision
about any return until it has had the opportunity to evaluate thoroughly the
implications of changes in the market that are still unfolding.'
Enquiries:
M J Gleeson Group plc 01252-360 300
Paul Wallwork (Group Chief Executive)
Chris Holt (Group Finance Director)
Bankside Consultants Limited
Ian Seaton 020-7367 8891
Rose Oddy 020-7367 8853
PRELIMINARY STATEMENT
The year has been one of successful execution of the transformation strategy
announced in March 2006, following the Strategic Review.
On 31 March 2006, Gleeson announced its decision to concentrate on, and
substantially increase its involvement in, three related areas: housing
regeneration, strategic land trading and commercial property development.
In the Interim Announcement of 30 March 2007, Gleeson announced its decision to
exit the commercial property development market. This decision reflected the
Board's belief that this market had probably peaked and that Gleeson's cash
resources would be better invested in housing regeneration, the Group's
principal focus.
The Group continues to reduce the scale of its traditional housebuilding
business and to run-off its commercial property businesses. In addition, it has
continuing responsibility for some legacy issues relating to the Building
Contracting Division (which was sold in August 2005) and the Engineering
Division (which was sold in October 2006). Nonetheless, by the year end, the
Group had substantially delivered upon the strategy announced in March
2006.
FINANCIAL OVERVIEW
The results for the year to 30 June 2007 reflect the transitional nature of the
period concerned.
I am pleased to report that the profit before tax from continuing operations was
much improved at £8.3m (2006: loss £12.3m) and that profit for the year
attributable to equity holders of the parent company increased to £30.0m (2006:
£9.7m).
On revenue from continuing operations of £194.3m (2006: £189.0m), operating
profit increased to £5.7m (2006: loss £8.3m). Net financial income was £2.6m
(2006: net financial expense £4.0m). Basic earnings per share from continuing
operations was 14.3p (2006: loss 23.3p).
Discontinued operations in the year under review produced a profit after tax of
£22.5m (2006: £21.6m). These operations comprised the Engineering Division plus,
in the prior year, Gleeson MCL Limited and Concrete Repairs Limited.
The year end total equity attributable to the equity holders of the parent
company increased by 17.3% to £183.3m (2006: £156.2m), representing net assets
per share of 351p (2006: 303p), up 15.8%. Net cash at 30 June 2007 of £38.0m
compared with net debt of £14.7m at 30 June 2006 and £102.3m at 31 December 2005.
BUSINESS REVIEW
The Group's continuing operations include ongoing business units and business
units in run-off. The Group's ongoing business units - Gleeson Regeneration &
Homes and Gleeson Strategic Land; Powerminster Gleeson Services; and Gleeson
Capital Solutions - all improved their performance in the year. The Group's
business units in run-off - Gleeson Properties and Gleeson Construction Services
- also performed satisfactorily.
Performance
Gleeson Regeneration & Homes and Gleeson Strategic Land
Operating profit for the year was £4.1m (2006: loss £11.7m).
The business segment's much improved performance reflects two key factors: an
increase in unit volume from 487 to 639 and the inclusion in the prior year of a
£7.5m charge in relation to land value write-downs.
Gleeson Regeneration & Homes requires capital investment to fund both land
purchases and working capital, regardless of whether the work flows from the
public or private sector. The business has grown organically, assisted by the
Group's strong reputation in this sector.
Gleeson Strategic Land has a lower capital requirement and generates a
significant return on capital employed. Again, the business has grown by
organic means.
Gleeson Regeneration & Homes North
Unit volume increased from 259 to 467.
In the year, build and sales activity increased significantly. Additionally,
projects at Gorton Monastery, East Manchester and Doe Lea, Chesterfield were
secured. Subsequently, as part of a consortium, the business unit has secured a
contract for the provision of housing for private sale on land provided by the
Local Authority ('LA') at North Huyton, Liverpool.
The business unit was active on five regeneration sites during the year, along
with various brown and green field private developments. These were at
Northumberland Street and Clevedon Street in Liverpool, Grove Village and
Beswick in East Manchester, and Norfolk Park in Sheffield.
Richard Edgington has now joined the business unit as Managing Director. Richard
has an extensive track record in both traditional and regeneration house
building and was previously with Bellway Homes.
Gleeson Regeneration & Homes South
During the year, the business has been transforming itself from being
predominantly a traditional green field housebuilder to a more balanced business
model that encompasses estate regeneration and brown field private
housebuilding. Unit volume decreased from 228 to 172.
This transformation has required and will continue to require the achievement of
the following objectives:
- to liquidate work in progress on legacy sites. This has been materially
completed in the year;
- to finalise construction works on sites on which the housing units had
previously been sold. This work was materially completed in the year and is
being managed within the accruals previously made; and
- to develop a workload in estate regeneration. The business unit secured an
estate regeneration project in Ashford, Kent in April 2007, to build and
sell, over a five year period, c.440 new houses, 70% of which have been
pre-sold to a Registered Social Landlord ('RSL').
Gleeson Strategic Land
During the year, one option, over 45 acres at Hassocks, West Sussex, was
exercised and sold to a major house builder. Also, eight option agreements were
entered into over an aggregate 740 acres of land.
As at 30 June 2007, the Group had 3,064 acres (2006: 2,369 acres) held under 65
(2006: 58) option and developments agreements. The business has not in recent
years purchased land outright. The majority of the land held under option and
development agreements is in Southern England, around Kent, Surrey, Sussex,
Berkshire, Oxfordshire and Wiltshire.
Powerminster Gleeson Services
Operating profit for the year was £0.7m (2006: £0.6m).
Over the last two years, Powerminster Gleeson Services has transformed itself
from an M&E contractor, working as a sub-contractor to principal contractors,
into a property maintenance service provider, of both planned and reactive
services, of a compliance and non-compliance nature. It has also divested its
training activities (SBST Sheffield). The business is increasing its long-term
service and repair work for RSLs and LAs.
From a material loss in 2005, the business has now been profitable for the last
two years, reflecting the transformation described above. Whilst revenue has
declined from the prior year margins have improved in a sector which has a low
capital investment requirement.
Gleeson Capital Solutions
Operating profit for the year was £1.6m (2006: loss £0.1m).
Gleeson Capital Solutions had a successful year, both operationally and
financially. Their financial results benefited from the disposal of two non-core
PFI investments: Salisbury Hospital and Sheffield Schools, for proceeds of
£4.4m and a profit of £2.3m.
At 30 June 2007, Gleeson Capital Solutions held four PFI investments, two of
which are considered non-core and will be disposed of when appropriate. The
remaining two are the 49% investment in Grove Village Limited and the 33%
investment in Chrysalis Limited, the special purpose company established to
deliver the Ashford PFI project, both core estate regeneration projects.
Since the year end, Gleeson Capital Solutions has secured financial close on the
Cheshire Extra Care Homes project. In addition to the Group's return on its 33%
investment in Avantage (Cheshire) Limited, the special purpose company
established to deliver this project, this business opportunity will bring
long-term facilities management work to Powerminster Gleeson Services.
Gleeson Properties
Operating profit for the year was £4.6m (2006: £11.3m).
As at 30 June 2007, the Group had 12 commercial property development projects at
various stages of completion. In addition, the Group had only two remaining
investment properties for disposal.
It is the intention of the Group that the orderly sale of the completed
commercial property development projects and the investment properties will be
completed by December 2008.
Gleeson Construction Services Limited
Continuing Operations
The Building Contracting Division recorded no profit or loss for the year
(2006:loss £2.6m).
Discontinued Operations
During the year, a profit after tax of £22.5m was recorded (2006: £21.6m). The
£22.5m is the net of the £26.7m gain on disposal of certain assets and
liabilities of the engineering business and a £4.2m loss from its trading
activities. The prior year result is the sum of a gain of £12.3m on the disposal
of Gleeson MCL Limited and Concrete Repairs Limited and the trading profit of
£9.3m for these businesses and the Engineering Division.
Accruals for retained contracts are maintained in relation to the run-off of
both discontinued and continuing operations.
BOARD
Since November 2006, the Board has had six members. These currently comprise two
Executive Directors - Paul Wallwork (Group Chief Executive) and Chris Holt
(Group Finance Director), three independent Non-Executive Directors - Ross
Ancell, Terry Morgan and Eric Stobart and myself (Non-Executive Chairman).
Accordingly, the Board is smaller than hitherto and has a majority of
Non-Executive Directors.
EMPLOYEES
The average number of employees reduced in the year from 1,996 to 669 and the
number at the year end was 461 (2006: 1,244). This reduction results mainly from
the disposal of the Engineering Division.
The Board would like to thank both continuing employees and those who left the
Group during the year for their significant individual and collective
contributions, especially given the substantial restructuring that has taken
place during the year.
DIVIDENDS
A final dividend of 7.3p per share is proposed, payable on 17 December 2007 to
shareholders on the register on 16 November 2007. This represents an increase of
5.8% on last year's final dividend of 6.9p per share.
Together with the interim dividend of 1.9p per share (2006:1.6p), dividends for
the year will total 9.2p (2006: 8.5p) per share, an increase of 8.2%, covered
1.6 times by basic earning per share from continuing operations.
PROSPECTS
The recent turbulence in the financial markets has resulted in mortgage lenders
becoming more cautious. This, combined with higher interest rates, has had a
marked impact on buyer confidence and house prices in many parts of the country.
At this stage it is not clear how protracted or severe this market adjustment is
likely to be.
In these circumstances, it is extremely difficult to forecast house sales.
However, the Board believes that the Group's prominent and highly respected
presence in the regeneration sector, together with its strategic land business,
will enable it to develop strategies to mitigate the effects of a weaker market
and to respond effectively to the challenges and opportunities ahead.
The announcement on 31 March 2006 of the outcome of the Group's Strategic Review
referred to the possibility of a return of cash to shareholders following the
completion of the Board's transformation programme. In the light of the
uncertainty described above, the Board has decided to defer taking a decision
about any return until it has had the opportunity to evaluate thoroughly the
implications of changes in the market that are still unfolding.
Dermot Gleeson 26 October 2007
Chairman
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2007
2007 2006
£000 £000
Restated
Continuing operations
Revenue 194,252 188,958
Cost of sales (171,069) (177,721)
---------- ---------
Gross profit 23,183 11,237
Administrative expenses (22,760) (27,450)
Profit on sale of investments in PFI projects 2,281 784
Profit on sale of investment and owner
occupied properties 3,274 6,641
Valuation gains on investment properties 50 585
Share of loss of joint ventures (net of tax) (327) (110)
---------- ---------
Operating profit 5,701 (8,313)
Financial income 4,028 2,249
Financial expenses (1,462) (6,260)
---------- ---------
Profit/(loss) before tax 8,267 (12,324)
Tax (830) 402
---------- ---------
Profit/(loss) for the year from continuing
operations 7,437 (11,922)
Discontinued operations
Profit for the year from discontinued
operations and gain on sale of discontinued
operations (net of tax) 22,521 21,574
---------- ---------
Profit for the year attributable to
equity holders of the parent company 29,958 9,652
========== =========
Earnings per share attributable to equity holders of parent
company
Basic 57.76 18.86
---------- ---------
Diluted 56.83 18.86
---------- ---------
Earnings/(loss) per share from continuing operations
Basic 14.34 (23.30)
---------- ---------
Diluted 14.11 (23.30)
---------- ---------
CONSOLIDATED BALANCE SHEET AS AT JUNE 30 2007
2007 2006
£000 £000
Restated
Non-current assets
Property, plant and
equipment 2,413 4,825
Investment properties 5,454 5,010
Investments in joint
ventures 2,830 1,890
Loans and other
investments 22,419 14,112
Trade and other
receivables 9,469 549
Deferred tax assets 3,219 4,849
-------- --------------
45,804 31,235
======== ==============
Current assets
Inventories 81,882 134,195
Trade and other
receivables 91,587 94,010
UK corporation tax - 3,502
Cash and cash equivalents 38,042 53
Assets classified as
held for sale 2,739 16,453
-------- --------------
214,250 248,213
======== ==============
Total assets 260,054 279,448
======== ==============
Current liabilities
Bank overdrafts - (14,706)
Trade and other
payables (75,460) (108,430)
UK corporation tax (1,272) -
Liabilities directly
associated with
assets classified as
held for sale - (97)
-------- --------------
Total liabilities (76,732) (123,233)
======== ==============
-------- --------------
Net assets 183,322 156,215
======== ==============
Equity
Share capital 1,044 1,032
Share premium account 5,465 3,974
Capital redemption
reserve 120 120
Revaluation reserve 638 2,742
Retained earnings 176,055 148,347
-------- --------------
Total equity attributable to
equity holders of the parent
company 183,322 156,215
======== ==============
CONSOLIDATED STATEMENT OF RECOGNISED
INCOME AND EXPENSE
FOR THE YEAR ENDED 30 JUNE 2007
2007 2006
£000 £000
Profit for the year attributable
to equity holders of the parent company 29,958 9,652
-------- --------
Revaluation of owner occupied - (355)
property
Deferred tax on owner occupied - 2
property -------- --------
Net expense recognised directly in - (353)
equity -------- --------
Total recognised income/(expense) for the
year attributable to equity holders of the parent
company 29,958 9,299
======== ========
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2007
2007 2006
£000 £000
Restated
Operating activities
Profit/(loss) before tax from continuing
operations 8,267 (12,324)
(Loss)/profit from discontinued operations (4,216) 10,713
------------- -----------
4,051 (1,611)
Depreciation of property, plant and equipment 1,090 2,902
Share-based payments 1,111 1,779
Profit on sale of investment and owner occupied
properties (3,274) (6,641)
Loss/(profit) on sale of other property, plant
and equipment 129 (3,791)
Profit on sale of investments in PFI projects (2,281) (784)
Loss on disposal of investments in joint ventures 301 -
Valuation gains on investment properties (50) (585)
Share of loss of joint ventures (net of tax) 327 110
New ground rents capitalised (286) (533)
Financial income (4,028) (2,583)
Financial expenses 1,462 6,260
------------- -----------
Operating cash flows before movements in working
capital (1,448) (5,477)
Decrease in inventories 49,187 43,000
Increase in receivables (11,285) (2,891)
Decrease in payables (14,174) (17,156)
----------- ----------
Cash generated from operating activities 22,280 17,476
Tax received 3,548 188
Tax paid (2,567) -
Interest paid (1,310) (7,293)
------------- -----------
Net cash flows from operating activities 21,951 10,371
------------- -----------
Investing activities
Proceeds from disposal of net assets held for sale - (15,898)
Proceeds from disposal of subsidiary undertakings,
net of cash disposed 4,016 19,195
Proceeds from disposal of investments in joint
ventures 71 -
Proceeds from disposal of sale of assets and
liabilities - Engineering Division 15,900 -
Proceeds from disposal of investment and owner occupied
properties 15,882 34,397
Proceeds from disposal of other property, plant and
equipment 43 10,267
Proceeds from disposal of investments in PFI
projects 4,442 757
Interest received 1,779 1,635
Purchase of property, plant and equipment (542) (6,313)
Net increase in loans to joint ventures and
other investments (6,885) (4,411)
--------------- ---------
Net cash flows from investing activities 34,706 39,629
--------------- ---------
Financing activities
Proceeds from issue of shares 1,503 215
Purchase of own shares (900) -
Dividends paid (4,565) (4,119)
--------------- ---------
Net cash flows from financing activities (3,962) (3,904)
--------------- ---------
Net increase in cash and cash equivalents 52,695 46,096
Cash and cash equivalents at beginning of year (14,653) (60,749)
--------------- ---------
Cash and cash equivalents at end of year 38,042 (14,653)
--------------- ---------
Segmental analysis
For management purposes, the Group is organised into five operating divisions,
Regeneration & Homes and Strategic Land, Capital Solutions,Services, Property
and Construction Services. The divisions are the basis on which the Group reports
its primary segment information. Capital Solutions, Services and Construction
Services have been identified as separate segments, previously Construction
Services. Comparative segment results have been reclassified for the
identification of the separate segments and for the recognition of the
Engineering Division as a discontinued operation.
Segment information about the Group's continuing operations, including
joint ventures, is presented below:
2007 2006
£000 £000
Restated
Revenue
Continuing activities:
------------------------
Regeneration & Homes and Strategic 156,991 138,413
Land
Capital Solutions 679 266
Services 17,483 19,290
Property 16,290 2,896
Construction Services 2,809 28,093
--------- --------
194,252 188,958
--------- --------
Discontinued activities:
-------------------------
Construction Services 59,982 249,627
--------- --------
Total revenue 254,234 438,585
========= ========
Profit/(loss) on
activities
Regeneration & Homes and Strategic 4,072 (11,673)
Land
Capital Solutions 1,649 (113)
Services 722 576
Property 4,612 11,310
Construction Services - (2,598)
--------- --------
11,055 (2,498)
Group activities (5,354) (5,815)
Finance income 4,028 2,249
Finance costs (1,462) (6,260)
--------- --------
Profit / (loss) before 8,267 (12,324)
tax
Tax (830) 402
--------- --------
Profit/(loss) for the period from 7,437 (11,922)
continuing operations
Profit for the period from 22,521 21,574
discontinued operations and gain on
sale of discontinued operations (net
of tax)
--------- --------
Profit for the period attributable to 29,958 9,652
equity holders of the parent ========= ========
company
All rental incomes of £682,000 (2006: £2,394,000) are reported within the
Property segment, with the balance of the Property segment revenue being
provision of goods. All long-term contract revenues are reported within
Construction Services segment except for £35,097,000(2006: £25,093,000) which
is reported within Regeneration & Homes and Strategic Land segment with the
balance of that segment being the provision of goods. Service revenues are
reported by Capital Solutions and Services.
Discontinued operations relates to the trading activities and the net sale
proceeds of the Engineering Division and the preceding year also includes
Gleeson MCL Limited and Concrete Repairs Limited, which were previously
classified as construction services.
Discontinued operations
In October 2006 the Group disposed of certain assets and liabilities of the
Engineering Division to Black & Veatch Limited. Assets and liabilities relating
to this operation were not classified as held for sale as at 30 June 2006 as
they did not qualify for such treatment at that date. The results for the prior
year have been restated to include the results of the Engineering Division as
this operation is now classified as a discontinued operation.
In June 2006 the Group disposed of Concrete Repairs Limited. Assets and
liabilities relating to Concrete Repairs were not classified as assets held for
sale as at 30 June 2005 as they did not qualify for such treatment at that date.
In March 2006 the Group disposed of Gleeson MCL Limited. Assets and liabilities
relating to Gleeson MCL were not classified as held for sale as at 30 June 2005
as they did not qualify for such treatment at that date.
Certain assets and liabilities of the Building Contracting Division were
classified as held for sale at 30 June 2005 under IFRS 5; these assets and
liabilities were sold on 1 August 2005. The trading activities of these assets
and liabilities prior to the sale date, together with the retained contracts of
the Building Contracting Division, were accounted for as continuing operations
during the year.
2007 2006
£000 £000 £000 £000
Restated Restated
Revenue 59,982 249,627
Cost of sales (62,244) (226,140)
-------- ---------
Gross (loss)/profit (2,262) 23,487
Staff costs (576) (6,168)
Other expenses (1,378) (6,940)
-------- ---------
Operating (loss)/profit (4,216) 10,379
Gain on disposal of discontinued
operations 31,250 12,320
Financial income - 334
-------- ---------
Profit before tax 27,034 23,033
Tax
Tax on discontinued operations for the
period - (1,459)
Tax on gain on disposal of
discontinued operations (4,513) -
-------- -------
(4,513) (1,459)
-------- ---------
Profit for the period from
discontinued operations 22,521 21,574
======== =========
The post-tax gain on discontinued operations was
determined as follows:
2007 2006
£000 £000 £000 £000
Consideration receivable:
Cash 36,000 24,677
Less net assets disposed:
Goodwill - 4,794
Property, plant and equipment 650 661
Trade and other receivables 15,812 13,684
Cash and bank 12,212 5,482
Trade and other payables (28,674) (12,264)
-------- - -------- (12,357)
-------- --------
Pre-tax gain on
disposal of 36,000 12,320
discontinued
operations
Accrual for onerous
leases and management fees (3,676) -
Cost of disposal (1,074) -
-------- --------
31,250 12,320
Tax (4,513) -
-------- --------
26,737 12,320
======== ========
The net cash inflow
comprises:
Cash received 30,400 24,677
Cash payment, see below (14,500) (5,482)
-------- --------
15,900 19,195
======== ========
The total proceeds for the sale of Engineering Division were £36,000,000, of which,
£27,900,000 was received upon completion of the transaction and the remaining
£8,100,000 became payable upon the completion of certain conditions. At 30 June
2007 £5,600,000 remained outstanding. The disposal resulted in an initial
transfer of £14,500,000 to Black & Veatch to zero the estimated negative net
assets of the Engineering Division at completion, which following the finalisation
of the completion account, was amended to £12,212,000. The balance of £2,288,000
relating to this adjustment was received in July 2007.
The cash flow statement includes the following relating to profit on discontinued
operations:
2007 2006
£000 £000
Restated
Operating activities (4,216) 10,713
Investing activities - 334
-------- --------
(4,216) 11,047
======== ========
Dividends
2007 2006
£000 £000
Amounts recognised as distributions to equity holders
in the period:
Final dividend for the year ended 30 June
2006 of 6.90p (2005: 6.50p) per share 3,576 3,308
Interim dividend for the year ended 30 June
2007 of 1.90p (2006: 1.60p) per share 989 811
-------- --------
4,565 4,119
======== ========
Proposed final dividend for the year ended 30
June 2007 of 7.3p (2006: 6.90p) per share 3,810 3,576
======== ========
The proposed final dividend is subject to approval by equity holders at the
Annual General Meeting and has not been included as a liability in these
financial statements.
Earnings per share
From continuing and discontinued operations
The calculation of the basic and diluted earnings per share is based on the
following data:
Earnings
2007 2006
£000 £000
Restated
Earnings for the purposes of basic earnings per share,
being net profit attributable to equity holders of the parent
company
Profit/(loss) from continuing operations 7,437 (11,922)
Profit from discontinued operations 22,521 21,574
-------- --------
Earnings for the purposes of basic and diluted
earnings per share 29,958 9,652
======== ========
Number of shares
2007 2006
No. 000 No. 000
Weighted average number of ordinary shares for the purposes
of basic earnings per share 51,865 51,173
Effect of dilutive potential ordinary shares:
Share options 853 -
-------- --------
Weighted average number of ordinary shares for the purposes
of diluted earnings per share 52,718 51,173
======== ========
From continuing operations
2007 2006
p p
Restated
Basic 14.34 (23.30)
======== ========
Diluted 14.11 (23.30)
======== ========
From discontinued operations:
2007 2006
p p
Restated
Basic 43.42 42.16
======== ========
Diluted 42.72 42.16
======== ========
From continuing and discontinued operations:
2007 2006
p p
Restated
Basic 57.76 18.86
======== ========
Diluted 56.83 18.86
======== ========
The prior year earnings per share from continuing operations and from discontinued
operations have been restated due to the Engineering Division being classified as
a discontinued operation.
As prior year continuing operations were a loss there is no dilutive effect.
This information is provided by RNS
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