Final Results
MS International PLC
28 June 2005
Date: Under embargo until 7.00am - Tuesday 28th June, 2005
Contacts: Michael Bell, Executive Chairman, MS INTERNATIONAL plc
Tel: 01302 322133
Terry Garrett, Weber Shandwick Square Mile
Tel: 0207 067 0700
MS INTERNATIONAL plc
Full Year Results to 30th April, 2005
HIGHLIGHTS
•All three operating divisions produced highly commendable results
•Turnover increased to £38.24m (2004 - £32.32m)
•Pre-tax profits up to £3.34m (2004 - £1.38m)
•Earnings per share more than doubled to 12.7p (2004 - 5.0p)
•Final dividend up by 24% to 1.65p (2004 -1.33p) per share making a total
of 2.15p (2004 - 1.75p)
•Net funds remain positive at £0.76m (2004 - £2.20m)
•Current order book 'remains healthy and well balanced'
•Board considering a move to AIM
Michael Bell, Executive Chairman, commented:
'I am pleased to report that all three divisions have continued to perform well
and the Group has achieved a significant increase in profits for the year.
Looking forward, our order book remains healthy and well balanced and I believe
that we will continue to reap the rewards of our capital investment in both
plant and equipment and our research and development programmes. We are
cautiously optimistic that demand will remain strong throughout the remainder of
the calendar year.'
Chairman's Statement
Results and review
In my interim statement, I highlighted my belief that the Group was in an
excellent position to take advantage of the general upturn in world trading
conditions. I am now pleased to report that the momentum evident during that
first half continued to develop throughout the remainder of the year resulting
in significant profits growth for the 12 months as a whole.
For the year ended 30 April 2005, the Group profit before taxation advanced
strongly to £3.34m (2004-£1.38m), on higher sales of £38.24m (2004-£32.32m).
Earnings per share more than doubled to 12.7p (2004-5.0p).
During the period we overcame the many challenges that were posed by rising
energy costs; limited availability and constantly rising prices for raw
materials; the commissioning of new plant and equipment; the rigorous trials of
new product developments and unfavourable currency movements. Not only did we
overcome these difficulties but also continued to benefit from sustained growth
in demand from our customers for our quality products and services.
The three operating divisions - defence, forgings and petrol station forecourt
structures - produced highly commendable results, with each contributing its
share of growth within the overall results. Persistent and dedicated attention
to detail, innovation and an unyielding commitment to the process of achieving
budgeted cost savings and optimising production efficiency, created the
opportunities to build successfully on recent gains.
The Group's consolidated net funds remained positive at £0.76m (2004-£2.20m).
Though lower than last year, this reflects, in part, the effect of higher raw
material contingency stocks - essential to ensure that we maintained our
outstanding reputation to keep our valued customers supplied during a difficult
trading period - and the ongoing investment in new plant and equipment and
product development. In addition, an important factor was the Company's purchase
of 2.09m MS INTERNATIONAL plc shares for cancellation, at a total cost of
£1.33m.
Outlook
The payback, ensuing from capital invested over recent years in both our plant
and equipment and research and development programmes, should continue to
strengthen our trading position. Recognising that the future prosperity of our
Company depends critically on technological and innovative investment, we
propose to direct further capital into these areas in the current year.
The Group order book remains healthy, well balanced and aligned with the
established patterns associated within the individual businesses.
As a result, we are cautiously optimistic that the markets that we serve will
remain strong throughout the remainder of this calendar year. Naturally, we
remain vigilant to detect any change in the position but currently these markets
are not indicating any signs of the slowdown in activity being reported in many
other industrial activities.
The Board is committed to increasing shareholder value. With this in mind we are
considering whether the AIM market would provide a more appropriate environment
in which to achieve the Group's objectives and whether it would be in the best
interests of the Company and its shareholders to transfer to that market. If a
decision to move is made, the Board would provide shareholders with 20 business
day's notice by way of an announcement.
Finally, the Board recommends the payment of an increased final dividend of
1.65p per share (2004-1.33p), making a total for the year of 2.15p (2004-1.75p).
Michael Bell
28 June 2005
Group Profit and Loss Account
For the 52 weeks ended 30th April, 2005
2005 2004
Total Total
£000 £000
Turnover: Group and share of joint venture 38,241 32,323
Less: Share of joint venture turnover (6,046) (6,093)
_________________________________________________________ _______ _______
Group turnover 32,195 26,230
_________________________________________________________ _______ _______
Operating profit 2,975 1,092
Share of operating profit of joint venture 362 302
_________________________________________________________ _______ _______
Profit on ordinary activities before interest 3,337 1,394
Interest receivable:
Group 37 19
Joint venture 7 10
Interest payable:
Group (38) (48)
_________________________________________________________ _______ _______
Profit on ordinary activities before taxation 3,343 1,375
Tax on profit on ordinary activities (1,061) (451)
_________________________________________________________ _______ _______
Profit on ordinary activities after taxation 2,282 924
Dividends (364) (325)
_________________________________________________________ _______ _______
Retained profit for the Group and its share of
joint venture 1,918 599
_________________________________________________________ _______ _______
Earnings per share: basic 12.7p 5.0p
fully diluted 10.8p 4.2p
_________________________________________________________ _______ _______
Group Statement of Total Recognised Gains and Losses
2005 2004
£000 £000
Profit for the financial period 2,282 924
Translation differences on foreign currency net
investments 8 (43)
_________________________________________________________ _______ _______
Total gains recognised since last annual report 2,290 881
_________________________________________________________ _______ _______
Historical cost profits and losses
There is no material difference between the result as disclosed in the profit
and loss account and the result which would have been reported had the Group
prepared the accounts on an unmodified historical cost basis.
Notes
The financial information set out above does not constitute the Company's
statutory accounts for the periods ended 30th April, 2005 or 1st May, 2004 but
is derived from those accounts. Statutory accounts for 2004 have been delivered
to the Registrar of Companies, and those for 2005 will be delivered following
the Company's Annual General Meeting. The auditors have reported on those
accounts; their reports were unqualified and did not contain a statement under
section 237 (2) or (3) of the Companies Act 1985.
The earnings per share is calculated dividing the profit after taxation of
£2,282,000 (2004 - £924,000) by the weighted average of 18,018,988 (2004 -
18,634,558) shares in issue in the year.
Copies of this announcement are available from the Company's registered office
at MS INTERNATIONAL plc, Balby Carr Bank, Doncaster, DN4 8DH, England. The full
Annual Report and Accounts will be posted to shareholders shortly and will be
delivered to the Registrar of Companies after it has been laid before the
Company in general meeting.
Dividend warrants will be posted on 2nd September, 2005 to members on the books
of the Company at 5th August, 2005.
Balance Sheets
At 30th April, 2005
Group Company
2005 2004 2005 2004
(restated) (restated)
£000 £000 £000 £000
Assets employed
________________________________________ _______ ________ ________ _________
Fixed assets
Intangible assets 280 280 280 280
Tangible assets 8,342 7,995 8,162 7,866
Investment in
subsidiary undertakings - 6,816 6,801
Investment in joint
venture - 50 50
Joint venture:
Share of gross assets 2,090 2,361 - -
Share of gross liabilities (1,382) (1,745) - -
________________________________________ _______ ________ ________ _________
9,330 8,891 15,308 14,997
________________________________________ _______ ________ ________ _________
Current assets
Stocks 5,511 4,143 4,099 3,331
Debtors 5,390 6,554 6,603 7,422
Group pension scheme prepayment
- due after more than one year 6,638 6,368 6,638 6,368
Cash at bank and in hand 1,013 2,919 920 2,872
________________________________________ _______ ________ ________ _________
18,552 19,984 18,260 19,993
Creditors - amounts falling due
within one year 11,193 12,544 17,776 19,422
________________________________________ _______ ________ ________ _________
Net current assets 7,359 7,440 484 571
________________________________________ _______ ________ ________ _________
Total assets less current liabilities 16,689 16,331 15,792 15,568
Creditors - amounts falling due after
more than one year 5 245 - 245
Provisions for liabilities and charges 2,922 2,925 2,921 2,925
________________________________________ _______ ________ ________ _________
Total assets less liabilities 13,762 13,161 12,871 12,398
________________________________________ _______ ________ ________ _________
Capital and reserves
Called up share capital 1,886 2,096 1,886 2,096
Capital redemption reserve 855 645 855 645
Revaluation reserve 1,853 1,853 1,853 1,853
Other reserves 3,967 3,959 3,998 4,005
Special reserve 1,629 1,629 1,629 1,629
Own shares (738) (738) (738) (738)
Profit and loss account 4,310 3,717 3,388 2,908
________________________________________ _______ ________ ________ _________
Equity shareholders' funds 13,762 13,161 12,871 12,398
________________________________________ _______ ________ ________ _________
Group Cash Flow Statement
For the 52 weeks ended 30th April, 2005
2005 2005 2004 2004
(restated) (restated)
£000 £000 £000 £000
Operating profit 2,975 1,092
Depreciation charge 891 818
Foreign exchange gains (13) (22)
RSA grant release (13) (13)
SSAP24 pension charge 360 360
Increase in stocks (2,743) (1,104)
Decrease/(increase) in debtors 1,161 (1,981)
(Decrease)/increase in creditors (514) 1,654
Increase in progress payments 705 1,892
Increase in provisions 48 77
Provisions utilitised (197) (65)
Pension fund payments (630) (170)
_____________________________________________ _______ _______
Cash flow from operating activities 2,030 2,538
Dividends received from joint venture 200 125
Interest paid (2) (35)
Taxation (763) (136)
Purchase of tangible fixed assets (1,250) (688)
Purchase of intangible fixed assets - (29)
Sale of tangible fixed assets 22 13
_____________________________________________ _______ _______
Capital expenditure and financial investment (1,228) (704)
Dividends paid (338) (341)
_____________________________________________ ________ _______
Cash (outflow)/inflow before financing (101) 1,447
Financing
Purchase of own shares (1,325) (354)
Shares purchased by ESOT - (356)
Share options exercised - 349
Decrease in long term bank loans (333) (334)
Repayments of capital element of finance
leases and hire purchase contracts (147) (301)
_______ _______
(1,805) (996)
________________________________________________________________________________________________________
(Decrease)/increase in cash (1,906) 451
________________________________________________________________________________________________________
Reconciliation of net cash flow to movement in net funds
2005 2004
£000 £000
(Decrease)/increase in cash (1,906) 451
Cash outflow from decrease in long terms loans 333 334
Repayments of capital element of finance
leases and hire purchase contracts 147 301
__________________________________________________________ _______ _______
Changes in net funds resulting from cash flow (1,426) 1,086
New leases (10) (99)
__________________________________________________________ _______ _______
Movement in net funds (1,436) 987
Net funds at 1st May, 2004 2,195 1,208
__________________________________________________________ _______ _______
Net funds at 30th April, 2005 759 2,195
__________________________________________________________ _______ _______
Analysis of net funds
Other non-cash
2004 Cash flows movements 2005
£000 £000 £000 £000
Cash at bank and in hand 2,919 (1,906) - 1,013
Bank loans (500) 333 - (167)
Finance leases and hire
purchase contracts (224) 147 (10) (87)
_______ ________ ________ ________
Net funds at
30th April, 2005 2,195 (1,426) (10) 759
_______ ________ ________ ________
Movements in reserves and reconciliation of movements in shareholders' funds
Movements in reserves are as follows:
Capital Profit
Share redemption Revaluation Other Special Own and loss 2005 2004
capital reserve reserve reserves reserves Shares account Total Total
£000 £000 £000 £000 £000 £000 £000 £000 £000
At 1st May, 2004 as
previously reported 2,096 645 1,853 3,959 1,629 - 3,717 13,899 13,697
Prior year adjustment* - - - - - (738) - (738) (731)
_____________________ ______ _______ _______ _______ ______ ______ ______ ______ _______
2,096 645 1,853 3,959 1,629 (738) 3,717 13,161 12,966
Profit attributable
to members - - - - - - 2,282 2,282 924
Dividends - - - - - - (364) (364) (325)
Foreign exchange
adjustments in
retranslation of
overseas investments - - - 8 - - - 8 (43)
Repurchase of shares (210) 210 - - - - (1,325) (1,325) (354)
Movement in own shares - - - - - - - - (7)
_____________________ ______ _______ _______ _______ ______ ______ ______ ______ _______
At 30th April, 2005 1,886 855 1,853 3,967 1,629 (738) 4,310 13,762 13,161
_____________________ ______ _______ _______ _______ ______ ______ ______ ______ _______
* Own shares held in our ESOP trust are now recognised as a deductions from shareholders' funds. Previously own shares
were held as a fixed asset investment. There is no impact on the profit for the Group for the current year or the prior
year as a result of the change in accounting policy.
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