Final Results
Morgan Sindall PLC
22 February 2005
MORGAN SINDALL plc
('Morgan Sindall' or 'the Group')
Preliminary Results for the year ended 31 December 2004
Morgan Sindall today announces record preliminary results for the year to 31
December 2004.
2004 2003
Group turnover £1,219.3m £1,137.5m +7%
Profit before tax and goodwill amortisation £31.0m £24.1m +29%
Profit before tax £27.9m £20.9m +34%
Basic earnings per share before goodwill amortisation 50.70p 43.78p +16%
Basic earnings per share 43.26p 36.04p +20%
Diluted earnings per share 42.46p 35.45p +20%
Total dividend per share 18.50p 16.50p +12%
Cash at bank £73.4m £14.6m +403%
Group Highlights
• Record year with particularly strong performances from Affordable
Housing and Fit Out
• £59m of cash generated, driven by improvements in management of
working capital
• Forward order book increased to £2.26bn
Divisional Highlights
Fit Out
• Profit up 34% with margin maintained at 4.5%
• Expansion through growth in market share
Construction
• Margin improvement through continued sector focus
• Three NHS LIFT frameworks now secured and preferred bidder on fourth
Infrastructure Services
• Good progress made on key projects
• NGT West Midlands Alliance contract secures position in gas sector
Affordable Housing
• Another year of strong growth with turnover up 31% and profit up 51%
• Exciting prospects with record order book of £1.34bn
John Morgan, Executive Chairman, commented:
'We are pleased to announce record results for 2004. The Group's excellent
performance demonstrates the strength of our businesses. We have never been in
better shape and look forward to another successful year.'
22 February 2005
ENQUIRIES:
Morgan Sindall plc Tel: 020 7307 9200
John Morgan, Executive Chairman
Paul Smith, Chief Executive
David Mulligan, Finance Director
College Hill Tel: 020 7457 2020
Kate Pope
Matthew Gregorowski
MORGAN SINDALL plc
Chairman and Chief Executive's Statement
We are pleased to announce record results for 2004. Turnover was up 7% to
£1,219m and profit before tax increased 34% to £27.94m. The Group's strong
performance demonstrates the success of our focus on our chosen market places.
In particular, growth has been driven from the market leading positions held by
our Affordable Housing and Fit Out divisions, whilst we have also enjoyed
success in our Construction and Infrastructure Services divisions. In addition,
our margin has improved during 2004 underlining the quality of our delivery,
whilst cash generation has been strong with cash balances peaking at the year
end.
Board changes
John Bishop will retire from the board at the forthcoming AGM in April. Over
the last ten years John has contributed a great deal to the development of the
Group and we thank him for his valuable input. As previously announced, David
Mulligan joined the board on 1 April 2004 as Finance Director.
In September, Geraldine Gallacher stepped down as a non-executive director from
the board having held this position since May 1995. We would like to thank her
for her contribution during a period of rapid growth. Gill Barr joined the
board as a non-executive director in September. She was formerly Business
Development Director of Woolworths plc and we welcome her to the board.
Outlook
We start 2005 in an excellent position to build on last year's success. The
order book has grown to £2.26bn and we have a number of exciting prospects in
the pipeline. Fit Out is strengthening its market position and geographic
coverage and is very well placed to take advantage of the improvement in the
commercial property sector. Construction is making progress with its focus on
the health and education sectors. Infrastructure Services' longer term
prospects are exciting, albeit volumes will be slightly lower in the shorter
term. Finally, Affordable Housing's prospects remain excellent and we
anticipate another year of strong growth.
Overall we are encouraged by the current state of our chosen markets, with
strong Government spending on housing, health and education alongside an
improving commercial sector. We believe we are well placed to take advantage of
market opportunities and have already secured some significant contract wins
early in 2005. The Group has never been in better shape and we look forward to
another successful year.
MORGAN SINDALL plc
Operating and Financial Review
Operating Review
2004 was a record year for the Group with profit before tax increasing 34% to
£27.94m (2003: £20.92m) on turnover of £1,219m (2003: £1,138m). Basic earnings
per share adjusted for goodwill grew by 16% to 50.70p (2003: 43.78p).
Consequently the board recommends an increase in the final dividend to 13.25p
giving a total of 18.50p for the year (2003: 16.50p).
Cash generation during the year was strong at £58.83m giving a cash balance at
the end of December of £73.45m (2003: £14.61m).
The increase in the Group's order book to £2.26bn reflects a change by Lovell in
the calculation of its order book (as explained under Affordable Housing below).
The forward order book without this change would have been £1.74bn (2003:
£1.63bn).
General market conditions
Construction industry output, including the repair and maintenance sector, grew
by around 3.7% during 2004 and is forecast to grow by 2.1% during 2005. Strong
growth is forecast in the health, education, private commercial and public
housing sectors, which are key markets for the Group.
Group strategy
The strategy is to create a diversified construction group with market leading
businesses operating in distinct market sectors in order to provide sustainable
growth. This approach also provides a balance between the public and private
sectors, which reduces the risk to the Group of changes within particular
sectors of the economy.
Divisional performance
Fit Out
Fit Out operates through four individual businesses namely Overbury, Morgan
Lovell, Vivid Interiors and Backbone Furniture. Overbury (turnover of £197m)
provides fit out and refurbishment services to the commercial property sector
and works for larger clients who employ their own professional teams of project
managers and architects. Morgan Lovell (turnover of £46m) provides design and
build fit out solutions to the commercial and public sectors, giving advice to
clients as to their requirements, providing design services and managing the
building works. Vivid Interiors (turnover of £8m) focuses specifically on the
retail, leisure and entertainment sectors. Backbone Furniture (turnover of £1m)
supplies innovative solutions to clients' furniture needs.
The division's strategy is for each of its businesses to be the market leader in
its chosen sector through superior quality, service and workmanship. Its
offices cover the South East, Midlands and North of England.
In 2004 Fit Out delivered an operating profit of £11.24m (2003: £8.41m) on a
turnover of £252m (2003: £189m) giving an operating margin of 4.5% (2003: 4.4%),
which is consistent with the long term margin for this division.
2004 saw a steady recovery in the commercial office fit out market, with demand
for new office space rising modestly. This contributed in part to the increase
in turnover of this division. However, expansion has largely been achieved
through further growth of the division's market share, which demonstrates the
strength of its businesses and the ability of management to fully exploit
opportunities presented by the market.
In 2004 the division extended its geographic coverage with Morgan Lovell opening
an office in Birmingham in June and Overbury establishing an office in
Manchester in October.
The division has started the year well with an order book of £98m compared to
£77m last year. Levels of enquiries remain buoyant and further growth is
anticipated.
Construction
Construction operates through the Bluestone brand and has a national network of
23 offices across England and Wales with an emphasis on contracts up to £20m in
value.
The division's strategy is to develop a business where most of its workload is
with key clients and is delivered through negotiated and framework contracts,
thereby reducing the reliance upon competitively tendered work.
In 2004 Bluestone increased its operating profit to £1.30m (2003: £0.60m) on a
lower turnover of £271m (2003: £300m). The benefits of its focused approach to
the health, education, industrial and property services sectors are being
realised and the division continues to make solid progress.
During the year the division secured two NHS LIFT (Local Improvement Finance
Trust) frameworks for Barnsley and for Camden & Islington NHS Trusts. Since the
year end it was awarded a third framework for East Hants, Fareham & Gosport NHS
LIFT and is preferred bidder on a fourth at Doncaster. LIFTs are a partnership
between the public and private sectors to deliver primary health and social care
facilities in a local area over a prescribed period, typically 25 years.
In December the division augmented its geographic coverage with the £3m
acquisition of part of the trade of Benson Limited, a privately owned
construction company. The acquisition has provided offices in Hatfield, Reigate
and Southampton, strengthening the division's offering in the South and South
East. It is expected to be earnings enhancing in 2005.
Bluestone starts the year with an order book of £197m (2003: £170m), which
comprises the acquired contracts relating to the three new offices and a
moderate increase in the underlying business. Looking ahead growth will be
modest and controlled as the division continues with its focused approach.
Infrastructure Services
Infrastructure Services which operates through the Morgan Est brand, is a
leading provider of civil engineering solutions in the utilities and transport
sectors.
The full spectrum of contractual arrangements are entered into, namely
traditional contracts, design and build, partnering and framework agreements as
well as Private Finance Initiative (PFI) structures. The division is based in
Rugby and has a network of offices around the United Kingdom aligned with its
main clients and project commitments.
Infrastructure Services delivered an operating profit of £7.84m (2003: £9.24m)
on turnover of £332m which was below that of the previous year (2003: £365m).
The reduction in workload was anticipated with a number of the division's larger
projects beginning to draw to a close. During the year good progress was made
on its key projects at Heathrow Terminal 5 and the A92 in Scotland. In December
the Newport Southern Distributor Road was opened concluding the construction
phase of this key PFI project.
The division begins the year with an order book of £626m (2003: £695m, 2002:
£550m), which includes a water framework under Asset Management Programme 4 for
Severn Trent Water and a gas utility contract for National Grid Transco,
securing its position in the water and gas utilities markets. Looking ahead,
the division expects volumes again to be lower in 2005 with modest growth
returning in 2006.
Affordable Housing
The division's brand, Lovell, is the United Kingdom's leading provider of
affordable housing which are homes designed for low income households. The
division's strategy is to strengthen its market leading position and continue to
provide innovative affordable housing solutions.
The division achieved a record operating profit in 2004 of £13.45m, an increase
of 51% on the previous year (2003: £8.92m) on turnover of £364m (2003: £279m).
Lovell has continued to grow strongly as a result of its success in delivering
mixed tenure and refurbishment solutions to local authorities and housing
associations.
Lovell operates through nine regions which cover England, Scotland and Wales and
provides new build homes and housing refurbishment services. Refurbishments are
typically large scale schemes focused on improvements to kitchens, bathrooms,
building exteriors and public areas. New build homes include those for the open
market, local authorities and housing associations. Lovell's particular
expertise is in mixed tenure developments, which combine both open market
properties and homes for public ownership and may also include refurbishment of
existing dwellings.
Lovell starts 2005 with a forward order book of £1.3bn, which now reflects the
full anticipated workload for the duration of its framework agreements.
Previously, Lovell had only recognised the first year's workload from such
agreements in its order book. This change in approach adds £525m to the order
book and brings Lovell into line with industry practice. The Government's
investment in affordable housing through its Decent Homes and Sustainable
Communities programmes is expected to be maintained for the foreseeable future.
As a result we anticipate further growth and improvement in the operating margin
for this business in 2005.
Financial Review
Turnover and operating profit
Group turnover increased by 7% during the year to £1,219m (2003: £1,138m). The
increase was mainly due to growth in Fit Out, up 33% to £252m and Affordable
Housing, up 31% to £364m. Both Construction and Infrastructure Services'
turnovers were around 10% down on the previous year at £271m and £332m
respectively.
Group operating profit was a record at £26.85m, up 22% on the prior year (2003:
£21.97m). This improvement is attributable to the impressive growth in
profitability at Affordable Housing and Fit Out. Affordable Housing again
significantly increased its profit, by 51% to £13.45m (2003: £8.92m) and Fit Out
by 34% to £11.24m (2003: £8.41m) driven by margin enhancement at Affordable
Housing and organic growth within both divisions. Construction continued with
its focus on key sectors with profit more than doubling to £1.30m (2003:
£0.60m). Infrastructure Services' operating profit reduced to £7.84m (2003:
£9.24m) reflecting lower workload. The cost of Group activities has increased
to £6.98m (2003: £5.20m) as the result of a larger executive team during the
year, payment of performance bonuses and the cessation of the rental income
stream following the disposal of investment properties in 2003.
Profit before and after taxation
Profit before taxation of £27.94m was 34% ahead of last year's £20.92m. This
includes a net interest receipt of £0.82m (2003: charge of £1.18m) reflecting
higher cash balances maintained by the Group.
Profit after taxation was £18.05m (2003: £14.91m). The tax charge was £9.89m
(2003: £6.01m) giving a current year effective tax rate of 35%.
International Financial Reporting Standards (IFRS)
In 2001 the European Commission (EC) took the decision to require the use of
IFRS for all entities listed on European stock exchanges. The EC has set 1
January 2005 as the date for this transition and as a result the Group will
report its 2005 results under IFRS commencing with its interim statement in
August 2005.
During 2004 the Group has taken steps to consider the impact of the transition
to reporting under IFRS and has identified the key areas which will impact the
Group's report and accounts. These include accounting for goodwill, pensions,
share based payments and deferred tax.
Currently goodwill is capitalised and amortised over 20 years. Under IFRS
goodwill is required to be carried at cost and is not amortised but will be
subject to annual impairment reviews. Existing goodwill will therefore be
carried forward and will be reviewed annually from the date of transition.
Under existing accounting standards information regarding pensions is disclosed
by way of note and does not impact the accounts. In future pension assets and
deficits will need to be recognised in the
Group balance sheet and movements in those balances will be recognised in the
profit and loss account (to be renamed the income statement). Under IFRS the
current pension deficit will be recognised in the balance sheet and any future
change in the scheme's assets and liabilities will be shown in the income
statement.
With regard to share based payments the fair value of options and share based
incentives issued to employees is to be accounted for in the income statement.
This will impact the Group with regard to any options issued after 7 November
2002.
Deferred taxation has a wider scope under IFRS with the most significant impact
for the Group being in relation to revaluation gains on which deferred taxation
will now be recognised.
Earnings per share and dividends
Basic earnings per share have increased 20% to 43.26p (2003: 36.04p) giving 21%
compound growth since 1995. Basic earnings per share adjusted for goodwill
amortisation are 50.70p (2003: 43.78p).
The final dividend is proposed at 13.25p (2003: 11.75p) giving a total dividend
of 18.50p up 12% on last year (2003: 16.50p). Over the period since 1995 the
compound growth in the dividend is 24%. Earnings cover the ordinary dividend
2.3 times (2003: 2.2 times).
Shareholders' funds and capital structure
Shareholders' funds have increased to £93.22m (2003 restated: £78.88m). The
number of ordinary shares in issue at 31 December 2004 was 42.15m. The increase
of 151,000 is due to the exercise of share options. There were no other new
issues during the year.
At December 2004 directors held interests over 22% of the ordinary shares of the
Company.
Cash flow and treasury
Net cash inflow from operating activities was £78.69m (2003: £22.83m). Capital
expenditure was £4.30m (2003: £3.03m), which reflects ongoing investment in the
business particularly in information technology. Payments of £3.41m were made
during the year to acquire part of the trade relating to three offices from
Benson Limited.
After payments for taxation, dividends and servicing of finance the net increase
in cash and short term deposits was £58.83m (2003: £7.76m). It is anticipated
that these resources will be utilised in the Affordable Housing division as it
focuses on large mixed tenure regeneration schemes.
In addition to its cash resources the Group has a £25m three year revolving
facility, available until June 2006 and a £30m overdraft facility with its main
clearing bankers, which is renewed annually. Banking facilities are subject to
normal financial covenants, all of which have been met in the year.
The Group has established treasury policies setting out clear guidelines as to
the use of counterparties and the maximum period of borrowings and deposits.
Borrowings are for periods of no longer than three months and are at rates
prevailing on the day of the transaction. The Group considers that its exposure
to interest rate movements is not significant. The Group has no exposure to
foreign exchange risk due to its operations being based solely in the United
Kingdom. In addition, it does not use derivatives as a risk management tool.
MORGAN SINDALL plc
Preliminary results for the year ended 31 December 2004
Group Profit and Loss Account
for the year ended 31 December 2004 (Unaudited)
2004 2003
£'000s £'000s
Turnover
Continuing operations 1,221,574 1,139,456
Less share of joint ventures' turnover (2,277) (1,919)
Group turnover (note 1) 1,219,297 1,137,537
Cost of sales (1,095,932) (1,030,719)
Gross profit 123,365 106,818
Administrative expenses (96,536) (85,276)
Other operating income 21 428
Operating profit from continuing operations (note 1) 26,850 21,970
Share of profit of joint ventures 268 132
Net interest receivable/(payable) 822 (1,182)
Profit on ordinary activities before taxation 27,940 20,920
Tax charge on profit on ordinary activities (note 2) (9,891) (6,006)
Profit on ordinary activities after taxation 18,049 14,914
Dividends on equity and non-equity shares (note 3) (7,739) (6,830)
Retained profit for the year 10,310 8,084
Basic earnings per ordinary share (note 4) 43.26p 36.04p
Diluted earnings per ordinary share (note 4) 42.46p 35.45p
MORGAN SINDALL plc
Preliminary results for the year ended 31 December 2004
Group Balance Sheet
at 31 December 2004 (Unaudited)
2004 2003 (restated)
£'000s £'000s £'000s £'000s
Fixed assets
Intangible assets 52,860 53,002
Tangible assets 14,890 13,375
Share of joint ventures' gross assets 87,891 59,509
Share of joint ventures' gross liabilities (78,746) (53,711)
Investment in joint ventures 9,145 5,798
Other investments 103 103
76,998 72,278
Current assets
Stocks 60,817 65,411
Debtors 204,002 195,546
Cash at bank and in hand 73,447 14,613
338,266 275,570
Creditors: amounts falling due within one year (320,339) (267,401)
Net current assets 17,927 8,169
Total assets less current liabilities 94,925 80,447
Creditors: amounts falling due after more than one year (1,707) (1,569)
Net assets 93,218 78,878
Capital and reserves
Called up share capital 2,107 2,100
Share premium account 25,679 25,392
Investment in own shares (993) (1,094)
Capital redemption reserve 623 623
Revaluation reserve 9,142 5,507
Profit and loss account 56,660 46,350
Total equity shareholders' funds 93,218 78,878
The Group Balance Sheet at 31 December 2003 has been restated following
implementation of accounting abstracts UITF 37 (Purchases and Sales of Own
Shares) and UITF 38 (Accounting for ESOP Trusts), which requires the Group's
investment in own shares to be deducted from shareholders' funds.
MORGAN SINDALL plc
Preliminary results for the year ended 31 December 2004
Group Cash Flow Statement
for the year ended 31 December 2004 (Unaudited)
2004 2003
£'000s £'000s
Net cash inflow from operating activities (note 5) 78,685 22,832
Dividend received from joint venture 335 355
Returns on investments and servicing of finance
Interest received 3,217 2,021
Interest paid (2,309) (3,127)
Dividends paid to preference shareholders - (62)
Interest paid on finance lease charges (107) (80)
801 (1,248)
Taxation
Corporation tax paid (6,134) (6,946)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (4,296) (3,034)
Receipts from sale of tangible fixed assets 501 9,205
(3,795) 6,171
Acquisitions and disposals
Purchase of business (3,409) (6,801)
Equity dividends paid (7,099) (6,357)
Management of liquid resources
Increase in short term deposits (1,015) (421)
Net cash inflow before financing 58,369 7,585
Financing
Issue of shares, net of expenses 294 717
Redemption of preference shares - (623)
Capital element of finance leases (844) (336)
Net cash outflow from financing activities (550) (242)
Net cash inflow 57,819 7,343
Net cash inflow 57,819 7,343
Movement in short term deposits 1,015 421
Net increase in cash at bank and in hand per Group Balance Sheet 58,834 7,764
MORGAN SINDALL plc
Preliminary results for the year ended 31 December 2004
Combined statement of movements in reserves and shareholders' funds
for the year ended 31 December 2004 (Unaudited)
2004 2003
Share-
Share Capital Profit Investment Share- holders'
premium redemption Revaluation and loss in own Total Share holders' funds
account reserve reserve account shares reserves capital funds (restated)
£'000s £'000s £'000s £'000s £'000s £'000s £'000s £'000s £'000s
Balance at 1 25,392 623 5,507 46,350 - 77,872 2,100 79,972 70,280
January
(previously stated)
Own shares - - - - (1,094) (1,094) - (1,094) (1,234)
reclassified
Balance at 1 25,392 623 5,507 46,350 (1,094) 76,778 2,100 78,878 69,046
January
(restated)
Retained profit for - - - 10,310 - 10,310 - 10,310 8,084
the year
Own shares - - - - (48) (48) - (48) (32)
purchased
Options exercised 287 - - - - 287 7 294 717
LTIP shares vested - - - - 149 149 - 149 172
Share of joint - - 3,635 - - 3,635 - 3,635 1,514
venture revaluation
surplus
Redeemed preference - - - - - - - - (623)
shares
Balance at 31 25,679 623 9,142 56,660 (993) 91,111 2,107 93,218 78,878
December
Goodwill arising on acquisitions prior to 31 December 1997 was written off
against reserves. Cumulative goodwill written off to the profit and loss
account in prior years amounts to £7,034,000 (2003: £7,034,000)
Statement of total recognised gains and losses
for the year ended 31 December 2004 (Unaudited)
2004 2003
£'000s £'000s
Profit for the financial year before dividends 18,049 14,914
Share of joint venture revaluation surplus 3,635 1,514
Total recognised gain since last annual report 21,684 16,428
MORGAN SINDALL plc
Preliminary results for the year ended 31 December 2004
Notes (Unaudited)
1. Analysis of turnover, operating profit and net assets
2004 2003
Net Net
Profit/ assets/ Profit/ assets/
Turnover (loss) (liabilities) Turnover (loss) (liabilities)
(restated)
£'000s £'000s £'000s £'000s £'000s £'000s
Fit Out 251,594 11,238 (5,336) 189,001 8,407 (3,221)
Construction 271,113 1,301 (4,551) 300,313 599 (690)
Infrastructure Services 332,283 7,841 28,261 365,108 9,241 31,153
Affordable Housing 364,307 13,445 (1,343) 278,814 8,920 24,393
Group activities - (6,975) 5,290 4,301 (5,197) 14,930
1,219,297 26,850 22,321 1,137,537 21,970 66,565
Net funds (note 6) 70,897 12,313
Net assets 93,218 78,878
Segmental net assets are stated after deducting interest bearing net funds. The
principal activities are carried out in the United Kingdom and Channel Islands.
2. Tax charge on profit on ordinary activities
2004 2003
£'000s £'000s
Current taxation:
UK corporation tax charge for the year 9,822 6,697
Adjustment in respect of prior years (302) 24
Share of taxation of joint ventures 221 (23)
Total current tax 9,741 6,698
Deferred taxation:
Origination and reversal of timing differences 150 (692)
Tax charge on profit on ordinary activities 9,891 6,006
3. Dividends on equity and non-equity shares
2004 2003
£'000s £'000s
Non-equity dividends on preference shares:
Paid - 62
- 62
Equity dividends on ordinary shares:
Interim paid 5.25p per share (2003: 4.75p per share) 2,188 1,944
Final proposed 13.25p per share (2003: 11.75p per share) 5,551 4,824
7,739 6,768
Total dividends 7,739 6,830
The proposed final dividend will be paid on 18 April 2005 to shareholders on the
register at 18 March 2005. The ex-dividend date is 16 March 2005.
4. Earnings per ordinary share
The calculation of the basic earnings per share is based on the weighted average
number of 41,718,000 (2003: 41,207,000) ordinary shares in issue during the year
and on the profits for the year attributable to ordinary shareholders of
£18,049,000 (2003: £14,852,000).
In calculating the diluted earnings per share, earnings are no longer adjusted
for any preference dividend (2003: £62,000) giving earnings of £18,049,000
(2003: £14,914,000). The weighted average number of ordinary shares is no
longer adjusted for the dilutive effect of the convertible preference shares
(2003: 313,000) but it is adjusted for share options by 597,000 (2003: 311,000)
and contingent Long Term Incentive Plan shares by 191,000 (2003: 243,000) giving
an adjusted average number of ordinary shares of 42,506,000 (2003: 42,074,000).
5. Reconciliation of operating profit to net cash inflow from operating
activities
2004 2003
£'000s £'000s
Operating profit 26,850 21,970
Depreciation of tangible fixed assets 3,465 4,292
Amortisation of goodwill 3,101 3,191
Loss/(profit) on sale of fixed assets 20 (1,056)
Decrease/(increase) in stocks and work in progress 4,594 (15,767)
Increase in debtors (5,784) (18,367)
Increase in creditors 46,439 28,569
Net cash inflow from operating activities 78,685 22,832
6. Analysis of net funds
31 December Non cash 31 December
2003 Cash flow movement 2004
£'000s £'000s £'000s £'000s
Cash 7,263 57,819 - 65,082
Short term deposits 7,350 1,015 - 8,365
Cash at bank (per Balance Sheet) 14,613 58,834 - 73,447
Finance leases (1,940) 844 (1,094) (2,190)
Loan notes (360) - - (360)
Total 12,313 59,678 (1,094) 70,897
7. Reconciliation of net cash flow to movement in net funds
£'000s
Increase in cash 57,819
Cash inflow from increase in liquid resources 1,015
Cash outflow from decrease in finance leases 844
Changes in net funds from cashflows 59,678
Non cash movement (1,094)
58,584
Net funds at 1 January 2004 12,313
Net funds at 31 December 2004 70,897
8. Accounting policies
This announcement is prepared on the basis of accounting policies as stated in
the financial statements for the year ended 31 December 2003 except for the
adoption of UITF 37 and UITF 38.
The financial information set out in the announcement does not constitute the
Company's statutory accounts for the years ended 31 December 2004 or 2003. The
financial information for the year ended 31 December 2003 is derived from the
statutory accounts for that year which have been delivered to the Registrar of
Companies. The auditors reported on those accounts; their report was unqualified
and did not contain a statement under s237(2) or (3) Companies Act 1985.
No accounts for the Company in respect of the year ended 31 December 2004 have
been delivered to the Registrar of Companies, nor have the auditors of the
Company made a report under Section 236 of the Companies Act 1985 in respect of
any accounts for that financial year.
The statutory accounts for the year ended 31 December 2004 will be finalised on
the basis of the financial information presented by the directors in this
preliminary announcement, will be posted to shareholders on or abouts the 8
March 2005 and will be delivered to the Registrar of Companies following the
Company's Annual General Meeting.
This information is provided by RNS
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