Interim Results
MS International PLC
27 November 2006
MS INTERNATIONAL plc
EXECUTIVE DIRECTORS
Michael Bell
Michael O'Connell
David Pyle
NON EXECUTIVE
Roger Lane-Smith
SECRETARY
David Pyle
REGISTERED OFFICE
Balby Carr Bank
Doncaster
DN4 8DH
PRINCIPAL OPERATING DIVISIONS
Defence
Forgings
Petrol Station Superstructures
JOINT VENTURE
Global-MSI plc
MS INTERNATIONAL plc
Chairman's Statement
I am pleased to report that we have continued to make good progress in the first
half of the current year. The Group achieved a marked upgrading in performance
across a range of measures during the previous year and I am delighted that we
have consolidated that elevated status in the six months to 28 October 2006.
A profit before taxation of £1.98m (2005 - £2.00m) was achieved on revenue of
£22.88m (2005 - £23.22). Earnings per share were 8.1p (2005 - 8.1p)
The three operating divisions - defence, forgings and petrol station
superstructures sustained a good and stable level of performance, subject only
to programme variations and the timing of their respective market demands.
The balance sheet remains robust, with net cash of £3.24m albeit our policy of
propitious and unrelenting capital investment in advancing the technological
expertise of the businesses proceeds at a high level.
The order book is strong and of good quality and we are positioning ourselves to
make further progress, supported in the belief that there are some interesting
opportunities for the Group in the markets we serve.
The Board continues to view the outlook with cautious optimism. Taking these
matters into account the Board has declared an interim dividend of 0.60p per
share (2005 - 0.58p)
Michael Bell
24 November 2006.
MS INTERNATIONAL plc
Basis of Preparation
These interim financial statements, which have been prepared on the basis of the
accounting policies set out in the Company's 2006 statutory accounts (other than
the adoption of the proportionate method of accounting for the joint venture as
set out below) do not constitute statutory accounts within the meaning of
section 254 of the Companies Act 1985 and are unaudited.
The figures for the year ended 30th April, 2006 do not constitute the Company's
statutory accounts for the period but have been extracted from the statutory
accounts.
The auditor's report on those accounts, which have been filed with the Registrar
of Companies, was unqualified and did not contain any statement under section
237(2) or (3) of the Companies Act 1985.
These interim financial statements have been prepared using the proportionate
method of accounting for the interest of the Group in Global-MSI plc, a jointly
owned entity. The figures for the 26 weeks ended 29th October, 2005 and for the
52 weeks ended 29th April, 2006 have been restated accordingly. It is the
opinion of the directors that the proportionate method of accounting, rather
than the equity method, better reflects the substance and economic reality of
our interest in the joint venture. As a result of the change, the balance sheet
includes the Group's share of the joint venture's assets and liabilities and the
income statement includes its share of the income and expenses but the
restatement does not affect the previously reported figures for profit before
taxation, earnings per share or equity.
Consolidated Income Statement
Restated Restated
26 weeks ended 26 weeks ended 52 weeks ended
28th Oct. 2006 29th Oct. 2005 29th April 2006
£'000 £'000 £'000
Revenue 22,878 23,216 44,435
Profit before finance and taxation 1,683 1,959 3,871
Net finance revenue 292 36 104
Profit before taxation 1,975 1,995 3,975
Taxation (633) (638) (1,478)
Profit for the period attributable to equity holders 1,342 1,357 2,497
of the parent
Earnings per share - basic 8.1p 8.1p 15.0p
Earnings per share - diluted 7.8p 7.7p 14.3p
MS INTERNATIONAL plc
Statement of Recognised Income and Expense
Restated Restated
26 weeks ended 26 weeks 52 weeks
28th Oct. 2006 ended 29th ended 29th
Oct. 2005 April 2006
£'000 £'000 £'000
Actuarial (losses)/ gains on defined benefit pension scheme (970) 636 3,726
Deferred taxation on actuarial losses/gains on defined benefit 291 (191) (1,118)
pension scheme
Currency translation differences on foreign investments (29) 52 85
Net income recognised directly in equity (708) 497 2,693
Profit attributable to equity holders of the parent 1,342 1,357 2,497
Total recognised income and expense for the period 634 1,854 5,190
attributable to equity holders of the parent
Notes
1. Taxation has been calculated at 32% (2005 - 32%) on the Group profit for the period as adjusted for taxation
purposes.
2. The Board has declared an interim dividend of 0.60p per share. Dividend warrants will be posted on 26th
January, 2007 to members registered on the books of the Company at 5th January, 2007
MS INTERNATIONAL plc
Consolidated Balance Sheet
Restated Restated
As at 28th As at 29th As at 29th
Oct. 2006 Oct. 2005 April 2006
£'000 £'000 £'000
ASSETS
Non current assets
Property, plant and equipment 13,011 8,750 12,368
Intangible assets 271 275 296
Deferred income tax asset - 301 -
13,282 9,326 12,664
Current assets
Inventories 4,447 5,246 4,176
Trade and other receivables 6,725 8,545 8,013
Prepayments 2,706 682 1,863
Cash and cash equivalents 3,241 - 5,907
17,119 14,473 19,959
TOTAL ASSETS 30,401 23,799 32,623
EQUITY AND LIABILITIES
Equity
Issued capital 1,871 1,881 1,871
Capital redemption reserve 870 860 870
Other reserves 1,544 1,544 1,544
Revaluation reserve 2,942 - 2,942
Special reserve 1,629 1,629 1,629
Foreign exchange reserve (122) (126) (93)
Own shares (738) (738) (738)
Retained earnings 5,381 2,022 5,082
13,377 7,072 13,107
Non current liabilities
Pension liability 1,883 4,337 1,171
Loans and borrowings 2 4 4
Provisions 81 146 114
Government grants 35 46 41
Deferred income tax liability 713 - 927
2,714 4,533 2,257
Current liabilities
Trade and other payables 13,590 11,193 16,385
Loans and borrowings 2 67 2
Provisions 65 65 65
Government grants 13 13 13
Income tax payable 640 780 794
Cash and cash equivalents - 76 -
14,310 12,194 17,259
TOTAL EQUITY AND LIABILITIES 30,401 23,799 32,623
MS INTERNATIONAL plc
Consolidated Cash Flow Statement
Restated Restated
26 weeks ended 26 weeks ended 52 weeks ended
28th Oct. 2006 29th Oct. 2005 29th April 2006
£'000 £'000 £'000
Net Cash (Outflow)/Inflow from Operating Activities (1,057) (189) 7,005
Investing activities
Purchase of intangible fixed assets (85) (8) (42)
Purchase of tangible fixed assets (1,247) (842) (1,729)
Sale of tangible fixed assets 89 97 115
Net Cash Used in Investing Activities (1,243) (753) (1,656)
Financing activities
Purchase of own shares - (60) (207)
Dividends paid (364) (276) (372)
Repayment of bank loan - (139) (167)
Repayment of capital element of finance leases (2) (44) (81)
Net Cash Flow from Financing Activities (366) (519) (827)
Movement in cash and cash equivalents (2,666) (1,461) 4,522
Opening cash and cash equivalents 5,907 1,385 1,385
Closing cash and cash equivalents 3,241 (76) 5,907
MS INTERNATIONAL plc
Reconciliation of Movement in Equity
Issued Capital Other Revaluation Special Foreign Own Retained Total
capital redemption reserves reserve reserve exchange shares earnings
reserve reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 30th April, 2005 1,886 855 1,544 - 1,629 (178) (738) 556 5,554
Total recognised - - - - - 52 - 1,802 1,854
income and expense
for the period
Dividends paid - - - - - - - (276) (276)
Repurchase of own (5) 5 - - - - - (60) (60)
shares
At 29th October, 1,881 860 1,544 - 1,629 (126) (738) 2,022 7,072
2005
Total recognised - - - - - 33 - 3,303 3,336
income and expense
for the period
Dividends paid - - - - - - - (96) (96)
Repurchase of own (10) 10 - - - - - (147) (147)
shares
Revaluation of Land - - - 3,396 - - - - 3,396
and Buildings
Deferred taxation on - - - (454) - - - - (454)
revaluation
At 29th April 2006 1,871 870 1,544 2,942 1,629 (93) (738) 5,082 13,107
Total recognised - - - - - (29) - 663 634
income and expense
for the period
Dividends paid - - - - - - - (364) (364)
At 28th October 2006 1,871 870 1,544 2,942 1,629 (122) (738) 5,381 13,377
MS INTERNATIONAL plc
Net Cash (Outflow)/Inflow from Operating Activities
Restated Restated
26 weeks 26 weeks 52 weeks ended
ended 28th ended 29th 29th April
Oct. 2006 Oct. 2005 2006
£'000 £'000 £'000
Profit before finance and taxation 1,683 1,959 3,871
Adjustments to reconcile trading profit to net cash flow from
operating activities
Depreciation 507 615 1,250
Amortisation of intangible fixed assets 110 47 69
Foreign exchange (losses)/gains (29) 52 85
Government grant release (6) (6) (11)
Provisions utilised (33) (32) (64)
Pension charge 304 249 486
Loss/(profit) on sale of fixed assets 8 (4) -
Decrease in inventories 823 1,356 2,323
Decrease/(increase) in receivables 1,288 (2,389) (1,857)
Increase in prepayments (843) (302) (1,483)
(Decrease)/increase in payables (714) 40 215
(Decrease)/increase in progress payments (3,224) (1,130) 3,991
Pension fund payments (295) (242) (486)
Cash generated from operations (421) 213 8,389
Interest received/(paid) 74 (37) (38)
Taxation paid (710) (365) (1,346)
Net cash (outflow)/inflow from operating activities (1,057) (189) 7,005
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