Final Results
Porvair PLC
24 January 2006
For immediate release 24 January 2006
Porvair plc
Preliminary results for the year ended 30 November 2005
Strong profit growth and good technical progress in key growth opportunities
Porvair plc ('Porvair'), the specialist filtration and environmental technology
group, today announces its preliminary results for the year ended 30 November
2005.
Highlights
• Profit before tax, exceptional items and goodwill amortisation is up 18% at
£3.0m (2004: £2.6m). Profit before tax is £0.87m (2004: £0.33m).
• Earnings per share increased by 26% to 4.3p (2004: 3.4p) before goodwill
amortisation and exceptional items. Taken after goodwill and exceptional
items, losses per share reduced by 45% to 1.1p (2004: 2.0p loss).
• The core specialist filtration businesses have performed well with
operating profits before goodwill amortisation and exceptional items up by
29% to £5.0m (2004: £3.9m).
• Good technical progress has been made in all the key growth opportunities
of the Group.
• First set of coal gasification filters delivered and orders for three
more pilot plants received from new customers.
• Sales of aircraft on board fuel-tank inerting filters are expected to
start in 2006.
• Diesel exhaust filter substrates are in pre-production scale-up
trials.
• The latest generation of low cost fuel cell plates has shown excellent
process capability in manufacturing and is now in qualification
trials.
• Recommended final dividend increased to 1.05p (2004: 1.0p) per share.
Commenting on the results, John Morgan, Chairman, said:
'It is truly a pleasure in my last Chairman's statement to be able to report
both a successful 2005 and encouraging prospects for the future. Results at the
core specialist filtration businesses have been good and a strong performance is
expected again. Technical and commercial progress has been made in the Group's
key growth opportunities. 2006 trading has started encouragingly and Porvair is
well positioned for the future. The Board looks forward with confidence.'
For further information please contact:
Porvair plc 0207 466 5000 (today)
Ben Stocks, Chief Executive 01553 765 500 (thereafter)
Chris Tyler, Group Finance Director
Buchanan Communications 0207 466 5000
Charles Ryland / Ben Willey
Chairman's Statement
It is a pleasure to report a good set of results after a busy and successful
year at Porvair. Before tax, exceptional items and goodwill amortisation,
profits were up 18% to £3.0m (2004: £2.6m). Profit before tax increased to
£0.87m (2004: £0.33m).
The core specialist filtration businesses have performed well with operating
profits before goodwill amortisation and exceptional items up by 29% to £5.0m
(2004: £3.9m). Good technical progress has been made in the key growth
opportunities of the Group.
Strategy - focus on specialist filtration and environmental technologies
In recent years Porvair has transformed itself, and these encouraging results
demonstrate the benefits of this work. At the Group's core are profitable and
cash generative specialist filtration operations. These high quality businesses
offer a financial and technical springboard for an exciting range of new product
initiatives, principally aimed at technical solutions for cleaner environmental
performance. The Board sees excellent potential for sustainable growth in this
area. The Group's notable long-term projects in the environmental sector
include the development of:
• filters to clean gasified coal;
• substrates to reduce diesel exhaust emissions;
• fuel cell components;
• bioscience filtration devices;
• plates to improve gas combustion efficiency.
The development investment necessary for these activities has been funded from
core business cash flows, although as expected this investment has had an impact
on Group profits. It is particularly encouraging therefore not only to show
profit growth in 2005, but also demonstrable progress in key development
projects.
Strong trading performance
Group sales were £44.9m (2004: £44.6m) and operating profits before goodwill
amortisation and exceptional items rose by 13% to £3.4m (2004: £3.0m) as our
emphasis on higher quality specialist market niches fed through to the results.
The core filtration businesses delivered a 29% increase in operating profits
before goodwill amortisation and exceptional items to £5.0m (2004: £3.9m). The
Group continued to invest heavily in its key growth opportunities and the net
cost of its Advanced Materials division increased by 22% to £1.6m (2004: £1.3m).
The UK based Microfiltration businesses had a particularly good year delivering
a 5% growth in turnover to £25.4m (2004: £24.1m) and a 31% increase in operating
profits before goodwill amortisation and exceptional items to £4.1m (2004:
£3.1m). Improved microplate sales returned Porvair Sciences to growth with
revenues up 7%. The Porvair Filtration Group ('PFG') had a strong year in
aerospace, high purity liquids and inkjet systems. A particular highlight was
the announcement in June 2005 of the agreement to supply filters for Parker
Hannifin's aircraft on-board fuel tank inerting system, which is expected to
commence during 2006.
The US based Metals Filtration business, Porvair Selee, made healthy progress
and coped well with increases in energy costs in the second half of the year.
Whilst, turnover reduced by 3% to £18.9m (2004: £19.4m), operating efficiencies
and costs control boosted operating profits before goodwill amortisation by 20%
to £0.9m (2004: £0.8m). In March the business signed a five-year supply contract
with Alcoa Inc, the world's leading producer of primary aluminium, thereby
reinforcing Porvair's position as the market leader in the field of aluminium
filtration.
Demonstrable progress in key growth opportunities
Porvair has developed a range of key growth opportunities in recent years, some
incremental and some potentially transformational. I am pleased to report that
several of these key growth opportunities made very encouraging strides towards
commercialisation during 2005. The first set of coal gasification filters due,
under the $20m filtration contract with S G Solutions LLC announced in January
2005, were delivered on time. Further pilot scale orders from new customers were
received in the year and are expected to be delivered in the first half of 2006.
Sales of our combustion plate range more than doubled during the year. The
metallic substrate for diesel exhaust emission control has shown excellent test
results and pre-production scale-up work has started. Qualification trials for
our latest generation of low cost fuel cell plates are underway. The Board is
confident about the prospects for these technologies in the future.
Acquisition of the final stake in PFG
In November 2005 the Group acquired the 21% minority position in PFG for £6.25m
plus expenses. This was funded by a £3.9m share placing with the balance from
borrowings.
Shareholders now get the full benefit of the profits and cash flows generated by
PFG and we are pleased to have secured the continued participation of the
existing management team.
Strong cash flow
I am pleased to report that the Group again delivered strong cash flow from its
operations. Underlying cash inflow before acquisitions, disposals and financing
was £2.5m (2004:£1.3m).
This performance meant that Group net borrowings rose by only £0.5m to £8.5m
(2004:£8.0m). Taking account of the additional borrowings to fund the
acquisition and the £0.9m increase arising from the retranslation of the Group's
dollar denominated debt this is a very encouraging result. Interest cover
before goodwill amortisation and exceptional items was a comfortable 9.1 times
(2004: 6.5 times)
Earnings per share and dividend
Earnings per share before exceptional costs and goodwill amortisation increased
26% to 4.3p (2004: 3.4p). Including exceptional items and goodwill
amortisation, losses per share improved to 1.1p (2004: 2.0p loss). A final
dividend of 1.05p (2004: 1.0p) per share is recommended for 2005. This dividend
increase reflects the capability of the Group to generate cash and its growth
prospects.
Employees and the Board
This will be my last Chairman's statement. After 25 years with the Porvair - the
last seven as non executive Chairman - I have decided to step down. The time is
right so to do. The major changes undertaken in recent years are proving a
success. The Group is on a sound financial footing, has a clear strategy, and
is poised to enter a period of exciting growth. Orderly Board succession
planning over the last two years has led to the introduction of three high
calibre directors to the Group: Charles Matthews and Andrew Walker as
non-executive Directors and Christopher Tyler as Finance Director. I have been
impressed with the contribution they have all made. Your Company is in good
hands. Its management team have faced several difficult challenges in recent
years and proven their ability in overcoming them. We have a strong Board and
an experienced Chief Executive.
I will hand over the role of non-executive Chairman to Charles Matthews at the
AGM in April. Charles has a successful record of entrepreneurial management and
experience of chairmanship in other companies, both public and private. He has
the right blend of skills to help the executive team deliver Porvair's
potential.
On behalf of the Board, I would like to thank our excellent staff for their hard
work in 2005. It has been a busy year, and our people throughout the
organisation have acquitted themselves well. To those of you who, like me, have
been with Porvair for many years, a personal thank you. Much has been achieved
over time and working with you all has been a pleasure. Finally, I am indebted
to Michael Gatenby, the senior non-executive on the Board, whose counsel and
advice, particularly during this transitional period, I have valued highly.
Outlook
It is truly a pleasure in my last Chairman's statement to be able to report both
a successful 2005 and encouraging prospects for the future. Results at the core
specialist filtration businesses have been good and a strong performance is
expected again. Technical and commercial progress has been made in the Group's
key growth opportunities. 2006 trading has started encouragingly and Porvair is
well positioned for the future. The Board looks forward with confidence.
Operating and Financial Review
Porvair is a specialist filtration business whose proprietary micro-porous
materials offer both competitive strength and exciting commercial potential.
The Group specialises in filters for growing market segments where product life
cycles are long and technical specifications challenging. Such segments, which
include aluminium, aerospace, bioscience, nuclear clean-up and high-purity
liquids amongst others, require filtration where product performance is more
critical than unit price. Porvair aims to avoid over-dependence in any one
market - no single market accounts for more than 16% of sales - but the
engineering expertise necessary to design the sort of bespoke filters produced
by the Group can be spread across a number of the markets the Group serves.
Porvair has invested heavily in R&D in recent years in developing new materials
and products that we believe have the potential to transform Porvair. Many of
these opportunities, which range in scale, risk and timeframe, provide technical
solutions to help protect the environment, whether by providing key components
in alternative clean energy systems or controlling emissions from existing
sources. The Group believes such opportunities, driven as they are by
legislation or environmental requirements, offer significant potential for
future growth.
Operations 2005
Microfiltration
The Microfiltration division delivered a strong performance in the year. Sales
in this division grew 5% in 2005 and operating profits before goodwill
amortisation and exceptional items grew by 31%.
Most segments of this business did well. Of particular note was the 29% growth
in high purity liquid filters driven principally by a contract to fit water
filtration systems to Royal Navy ships. Sales of aerospace filters grew by 10%
and ink jet filters growth was 13%. Porvair Sciences recovered well from a
difficult 2004 with the core microplate product range growing 16%.
Several of the Group's key growth opportunities are under development in this
division, and progress was encouraging. A supply agreement for aircraft
on-board fuel tank inerting systems was signed with Parker Hannifin in June
2005. Commercial sales of this product are expected to commence in 2006. Recent
comments by the Federal Aviation Authority in the US suggest that use of such
systems may become widespread in the years ahead. The first set of coal
gasification filters due under the $20m supply agreement with S G Solutions LLC
announced in January 2005 were built and delivered. Enquiries from other
customers in this fast developing field grew quickly during the year and PFG
secured three further orders for pilot gasification plants from new customers.
PFG is also utilising its expertise in porous plastic technology to develop a
range of bioscience filtration devices, several of which are in early stage
trials. These are exciting prospects for the Group.
Metals filtration
Porvair Selee ('Selee') had a good year, and dealt well with pressure on raw
material and energy prices. Sales fell marginally to £18.9m (2004: £19.4m) as a
few US customers idled their capacity in the face of higher energy costs but by
driving through operational efficiencies, controlling costs and, later in the
year, passing through price increases Selee was able to deliver operating profit
before goodwill amortisation growth of 20%.
Several successes at Selee during the year augur well: the plant ran well, with
scrap levels at an all time low. Engineered Ceramics, a division specialising in
metals handling, posted a record year for sales and profits. Selee's innoculant
filter continued to pick up new customers. An alliance agreement with Ashland
Casting Solutions was signed under which Ashland, a major supplier to the
foundry industry worldwide, will sell the Selee foundry filter range. This will
provide Ashland with a new range of high performance products to sell, and
should significantly increase Selee's access to market.
Porvair Advanced Materials ('PAM')
PAM is developing two unique micro-porous materials for use in a range of
applications including fuel cells, diesel exhaust emission control, combustion
and heat exchange. These projects are complex and unforeseen challenges are to
be expected. Consequently, determining when new products will start to generate
revenue is unpredictable and, although 2005 has been a good year for technical
progress at PAM, sales for the year are lower than in 2004 when our 2003
generation of prototype bipolar plates were being sold.
However, the prognosis for the year ahead is exciting. Our metallic substrate
for diesel exhaust emission control has shown excellent test results with over
100,000 miles of on-road testing completed and we are currently working through
the challenges of production scale-up. Our bipolar plate for fuel cells has
made good technical progress in 2005. We are now confident that it can be mass
produced efficiently. This moulded product, when compared to those produced as
recently as 2003, offers similar technical performance at almost one tenth of
the price. Final qualification trials at our lead customer, UTC Fuel Cells, LLC,
started at the end of 2005. Sales of our combustion plate range more than
doubled during the year and we achieved Underwriters Laboratory certification on
a new product designed for food preparation.
Exceptional items
The Group benefited from a net £0.1m exceptional credit in the period. This
comprised an exceptional credit of £0.7m arising on the collection of a debt
that had been written off prior to the acquisitions of 2001; and a charge of
£0.6m principally relating to additional property costs associated with the
business disposals of 2003.
Shareholders' funds
Shareholders' funds of £33.3m were £2.8m higher than at 30 November 2004.
Shareholders' funds were increased by a share issue of £3.9m net of expenses,
profit after tax before goodwill amortisation of £2.2m and exchange gains of
£0.1m. Shareholders' funds were reduced by goodwill amortisation of £2.2m, the
minority's interest in the profit and loss account of £0.4m, and dividends paid
and proposed of £0.8m.
Cash Flow
The Group generated good cash flow in 2005. Net cash inflow from operating
activities before exceptional cash items was £4.6m (2004: £4.9m). Net cash
inflow from operating activities was £4.5m (2004: £2.8m). Exceptional cash
outflows of £0.1m relate to the settlement of a number of items associated with
business disposals undertaken in 2003 off set by the receipt of a previously
written off debt of £0.7m.
Capital expenditure was £0.8m (2004: £1.2m). Net interest paid was £0.3m
(2004: £0.5m) and £0.8m (2004: £nil) was paid in tax making a net cash inflow
from operations before acquisitions disposals and financing of £2.5m (2004:
£1.3m). Interest cover before goodwill amortisation and exceptional items was
9.1 times (2004: 6.5 times).
The Group paid £0.7m (2004: £0.7m) in dividends. £6.6m including professional
fees was paid to acquire the 21% of PFG that the Group did not already own. A
net £3.9m was received from a placing of 3.7m shares issued to raise finance for
the acquisition of the stake in PFG with the balance of the consideration funded
by borrowings. £1.3m was received in relation to disposals which were completed
in 2003 and 2004.
The Group's reduction in net debt before exchange differences was £0.4m.
Currency translation effects of the dollar denominated borrowings increased net
debt by £0.9m, resulting in an overall increase in net debt of £0.5m.
At the year end the Group had net borrowings of £8.5m (2004: £8.0m) comprising
gross borrowings of £9.5m offset by cash balances of £1.0m. The Group had
unutilised borrowing facilities of £4.5m and an unutilised overdraft facility of
£3m.
The Group's gearing (net debt as a percentage of shareholders' funds) remained
constant at 26%.
Tax
The Group tax charge of £0.9m represents an effective tax rate of 29% on profits
before goodwill amortisation and exceptional items. The tax charge comprises
current tax of £1.0m and a deferred tax credit of £0.1m. The Group carries a
deferred tax asset in relation to the losses in its US operations. The tax
credits associated with this year's losses in the US have not been recognised.
Finance & Treasury policy
The treasury function at Porvair is managed centrally, under Board supervision.
It is not a profit centre and does not undertake speculative transactions. It
seeks to limit the Group's exposure to trading in currencies other than its
operations' local currency and to hedge its investments in currencies other than
Sterling. The Group does not hedge against the impact of exchange rate
movements on the translation of profits and losses of overseas operations.
At the year end the Group had $18.1m of dollar borrowings exposure which hedged
underlying US assets on the balance sheet of $17.1m. In addition, the Group has
a Euro 1.6m interest bearing debtor that was fully hedged by borrowings in
Euros.
The Group finances its operations by a combination of share capital and retained
profits and short and long term loans. Borrowings are principally at floating
rate.
Pension schemes
The Group continues to support its closed defined benefit pension scheme in the
UK and provide access to a defined contribution scheme for its US employees and
other UK employees.
In the exceptional charges arising in 2003 the Group provided for additional
cash payments to the defined benefit pension scheme to be paid over the
following three years. During the year the Group made a £550,000 payment, in
addition to its ongoing funding commitments, and expects to make a further
payment of £550,000 in March 2006.
The Group continues to account for its pension scheme under SSAP 24 and carries
a pension prepayment on the balance sheet of £0.7m (2004: £0.7m). Under FRS 17
the Group has a pension scheme deficit of £6.8m (2004: £7.3m). If FRS 17 had
been applied to these accounts then the Group's shareholders' funds would have
been reduced by £4.7m (2004: £4.5m).
Adoption of International Financial Reporting Standards
The Group will be required to adopt International Financial Reporting Standards
('IFRS') with effect from 1 December 2005. An initial assessment of the impact
on the Group's financial statements and underlying processes has been made and
regular updates on progress have been given to the audit committee. The
principal adjustments that the Group will be required to make to the existing
accounts include: ceasing the amortisation of goodwill, providing for the
pension deficit and charging the profit and loss account with an increased
pension charge, revaluing the long term debtor at fair value and charging the
profit and loss account with an appropriate charge for options awards.
Group profit and loss account
For the year ended 30 November
2005 2005 2005 2005 2004 2004 2004
Before Goodwill Exceptional Before Goodwill
exceptional amortisation items goodwill amortisation
items and (note 3) amortisation
goodwill
amortisation
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Turnover 44,873 - - 44,873 44,632 - 44,632
Cost of sales (30,985) - - (30,985) (30,466) - (30,466)
Gross profit 13,888 - - 13,888 14,166 - 14,166
Distribution costs (510) - - (510) (485) - (485)
Research and development
expenses (3,291) - - (3,291) (3,181) - (3,181)
Administrative expenses (6,687) (2,221) 67 (8,841) (7,937) (2,224) (10,161)
Group operating profit/
(loss) before share of
profit in associated
undertaking 3,400 (2,221) 67 1,246 2,563 (2,224) 339
Share of operating profit in
associated undertaking - - - - 454 - 454
Operating profit/(loss) -
continuing operations 3,400 (2,221) 711 1,890 2,563 (2,224) 339
Operating profit/(loss) -
discontinued operations - - (644) (644) 454 - 454
Total operating profit/ 3,400 (2,221) 67 1,246 3,017 (2,224) 793
(loss)
Interest payable (net) (372) - - (372) (460) - (460)
Profit/(loss) on ordinary
activities before taxation 3,028 (2,221) 67 874 2,557 (2,224) 333
Tax on profit/(loss) on
ordinary activities (889) - (20) (909) (833) - (833)
Profit/(loss) on ordinary
activities after taxation 2,139 (2,221) 47 (35) 1,724 (2,224) (500)
Equity minority interests (561) 201 - (360) (457) 208 (249)
Profit/(loss) for the
financial year 1,578 (2,020) 47 (395) 1,267 (2,016) (749)
Dividends (793) (736)
Deficit for the financial (1,188) (1,485)
year
Earnings/(loss) per share
(basic and diluted) 4.3p (5.5)p 0.1p (1.1)p 3.4p (5.4)p (2.0)p
Dividend per share 2.05p 2.00p
Group reconciliation of movements in equity shareholders' funds
For the year ended 30 November
2005 2004
£'000 £'000
Loss for the financial year (395) (749)
Dividends (793) (736)
Deficit for the financial year (1,188) (1,485)
Exchange differences 113 (239)
New shares issued 3,908 -
Net increase/(reduction) in shareholders' funds 2,833 (1,724)
Opening shareholders' funds 30,472 32,196
Closing shareholders' funds 33,305 30,472
Statement of total recognised gains and losses
For the year ended 30 November
2005 2004
£'000 £'000
Loss for the financial year (395) (749)
Exchange differences 113 (239)
Total losses recognised in the year (282) (988)
Group balance sheet
At 30 November
2005 2004
£'000 £'000
Fixed assets
Intangible assets 26,502 27,785
Tangible assets 8,057 8,241
34,559 36,026
Current assets
Stocks 6,103 5,897
Debtors falling due within one year 7,970 8,263
Debtors falling due after more than one year 2,682 3,071
10,652 11,334
Cash at bank and in hand 1,001 3,047
17,756 20,278
Creditors: amounts falling due within one year (8,377) (7,753)
Net current assets 9,379 12,525
Total assets less current liabilities 43,938 48,551
Creditors: amounts falling due after more than one year (9,012) (10,052)
Provisions for liabilities and charges (1,621) (2,508)
33,305 35,991
Capital and reserves
Called up share capital 810 736
Share premium account 32,513 28,679
Other reserves (987) (1,100)
Profit and loss account 969 2,157
Total equity shareholders' funds 33,305 30,472
Equity minority interests - 5,519
Capital employed 33,305 35,991
Group cash flow statement
For the year ended 30 November
2005 2004
£'000 £'000
Net cash inflow from operating activities 4,457 2,811
Dividend from associated undertaking - 161
Returns on investments and servicing of finance
Interest received 185 112
Interest paid (494) (635)
Net cash outflow from returns on investments and servicing of
finance (309) (523)
Taxation
UK corporation tax (paid)/refunded (800) 18
Overseas tax paid - (18)
(800) -
Capital expenditure and financial investment
Purchase of tangible fixed assets (842) (1,228)
Sale of tangible fixed assets - 57
Net cash outflow from capital expenditure and financial
investment (842) (1,171)
Acquisitions and disposals
Disposal of subsidiaries' assets and liabilities 300 -
Sale of associated undertaking 988 526
Acquisition of minority interest in a subsidiary (6,603) -
Net cash (outflow)/inflow from acquisitions and disposals (5,315) 526
Equity dividends paid (736) (736)
Net cash (outflow)/inflow before financing (3,545) 1,068
Financing
Issue of ordinary shares 4,048 -
Expenses of share issue (140) -
Decrease in borrowings (2,508) (1,827)
Net cash inflow/(outflow) from financing 1,400 (1,827)
Decrease in net cash in the year (2,145) (759)
Reconciliation of net cash flow to movement in net debt
Decrease in cash in the year (2,145) (759)
Decrease in borrowings 2,508 1,827
Change in net debt from cash flows 363 1,068
Exchange differences (869) 1,035
Movement in net debt in year (506) 2,103
Opening net debt (8,005) (10,108)
Closing net debt (8,511) (8,005)
Turnover and segmental analyses
The geographical analyses of the Group's turnover and segmental analyses of
turnover, operating profit/(loss) and net assets are set out below:
2005 2004
By
By destination By origin destination By origin
£'000 £'000 £'000 £'000
Turnover
United Kingdom 12,181 25,392 12,707 24,121
Continental Europe 5,144 - 5,735 -
Americas 22,019 19,481 21,036 20,511
Asia 4,376 - 3,526 -
Australasia 503 - 665 -
Africa 650 - 963 -
44,873 44,873 44,632 44,632
2005 2004
£'000 £'000
Turnover
Metals Filtration 18,861 19,387
Microfiltration 25,392 24,121
Advanced Materials 620 1,124
44,873 44,632
Operating profit/ 2005 2004
(loss)
Operating Operating
profit/(loss) profit/
before goodwill Operating (loss) Operating
amortisation profit/ before profit/
and exceptional Exceptional (loss) after goodwill (loss) after
items Goodwill items goodwill amortisation Goodwill goodwill
amortisation (note 3) amortisation amortisation amortisation
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Metals Filtration 919 (1,211) - (292) 765 (1,213) (448)
Microfiltration 4,096 (1,010) 711 3,797 3,123 (1,011) 2,112
Advanced Materials (1,615) - - (1,615) (1,325) - (1,325)
Operating profit/
(loss) -
continuing operations 3,400 (2,221) 711 1,890 2,563 (2,224) 339
Operating profit/
(loss) -
discontinued operation - - (644) (644) - - -
Share of operating
profit in associated
undertaking - - - - - 454 - 454
discontinued
Total operating profit 3,400 (2,221) 67 1,246 3,017 (2,224) 793
/(loss)
Turnover and segmental analyses continued
As at 30 November
Net assets
2005 2004
Before Including Before Including
goodwill Goodwill goodwill goodwill Goodwill goodwill
£'000 £'000 £'000 £'000 £'000 £'000
Metals Filtration 6,323 11,738 18,061 6,252 12,733 18,985
Microfiltration 8,120 14,764 22,884 8,686 15,052 23,738
Advanced Materials 1,034 - 1,034 809 - 809
15,477 26,502 41,979 15,747 27,785 43,532
Long term loan 1,089 1,112
Deferred
consideration 700 1,988
Taxation 67 81
Dividend payable (425) (368)
Net borrowings (8,511) (8,005)
Continuing Group 34,899 38,340
Discontinued
operations (1,594) (2,349)
Net assets 33,305 35,991
Reconciliation of operating profit to net cash flow from operating activities
2005 2004
£'000 £'000
Total Group operating profit before share of
associated undertaking and exceptional items 1,179 339
Goodwill amortisation 2,221 2,224
Depreciation 1,506 1,654
Loss on sale of fixed assets 4 4
(Increase)/decrease in stocks (19) 359
(Increase)/decrease in debtors (235) 963
Decrease in creditors (85) (629)
Net cash inflow from operating activities before
exceptional items 4,571 4,914
Cash inflow relating to exceptional items -
continuing operations 711 -
Cash outflow relating to exceptional items -
discontinued operations (825) (2,103)
Net cash inflow from operating activities 4,457 2,811
Additional notes
1. Exchange rates
Exchange rates for US dollar during the period were:
Average rate 30 Average rate 30 Closing rate 30 Closing rate 30 Closing rate 1
Nov 05 Nov 04 Nov 05 Nov 04 Dec 03
US dollar 1.8377 1.8134 1.7304 1.9115 1.7199
2. Dividends
The Board has recommended a final dividend of 1.05p per share (2004: 1.0p)
to be paid on 2 May 2006 to shareholders on the register at the close of
business on 7 April 2006. The ex-dividend date for the shares is 5 April
2006. This makes a total dividend for the year of 2.05p (2004: 2.00p).
3. Exceptional items
The exceptional items comprised a credit of £0.7m arising on the collection
of a debt that had been written off prior to the acquisitions of 2001; and
a charge of £0.6m principally relating to additional property costs
associated with the business disposals of 2003.
4. Nature of financial statements
These financial statements are not the full financial statements for the
Group. The abridged profit and loss account and balance sheet for the year
to 30 November 2004 is an extract from the full accounts for that year
which have been delivered to the Registrar of Companies; the report of the
auditors on those accounts was unqualified. The full financial statements
for this year, on which the auditors have reported without qualification,
have not yet been delivered to the Registrar of Companies. A full copy of
the financial statements will be delivered to the Registrar following the
Company's annual general meeting.
5. Annual general meeting
The Company's annual general meeting will be held on Wednesday 12 April
2006 at Brampton House, Bergen Way, King's Lynn.
This information is provided by RNS
The company news service from the London Stock Exchange
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