Preliminary Results
CCH International plc
19 June 2007
Press Release 19 June 2007
CCH International plc
('CCH' or 'the Company' or 'the Group')
Preliminary results for the year ended 31 December 2006
CCH International plc (AIM: CCH), the trade finance group, today announces its
Preliminary Results for the year ended 31 December 2006.
Highlights
• turnover increased to £19.0 million (2005: £4.8 million)
• gross profit increased to £6.6 million (2005: £2.4 million)
• pre-tax profit increased to £3.9 million (2005: £0.7 million)
• earnings per share increased to 2.76p (2005: 1.21p)
• maintains leading market position in Sharia-compliant trade finance products
• 4th best performing stock on AIM in 2006
Highlights from the current trading period
• Successful commencement of operations in South America
• Successfully completed an additional listing on the PLUS Market
Commenting on the 2006 interim results, Eren Nil, Managing Director of CCH,
said: 'This excellent set of results represents the successful implementation of
our strategy with good deal flow translating into clear profitability. The
company has continued to grow organically as well as through acquisition; we
look forward to building on these results and taking CCH into the next stage of
its development.'
For further information, please contact:
CCH International Plc www.cch-international.com
Eren Nil, Managing Director Tel: +44 (0) 20 8334 0871
eren@cch-international.com
Patrick Kennedy, Finance Director
p.kennedy@cch-international.com
Insinger de Beaufort http://www.insinger.com
Peter Ward Tel: +44 (0) 207 190 7000
pward@insinger.com
Abchurch Communications www.abchurch-group.com
Heather Salmond / Charlie Jack Tel: +44 (0) 20 7398 7700
charlie.jack@abchurch-group.com
Chairman's Report
Year ended 31 December 2006
2006 has been a year of great success and achievement for CCH both operationally
and strategically and the Group has continued to deliver sustained profitability
by building on its strong foundations in a fast-growing global economy.
Operationally, revenue rose 293% to £19,011,241 compared with £4,837,011 for the
14 month period to 31 December 2005. Operating profit rose 447% to £3,775,988
and earnings per share rose 128% to 2.76p.
In April 2006 we announced an agreement with Bill Express Limited of Australia
to implement an A$ 80 million Sharia-compliant facility which is believed to be
the first Sharia-compliant trade finance facility of this size provided to a
listed Australian company. Also in terms of product development we have
continued to offer further innovative Sharia-compliant trade finance products
reinforcing CCH as a recognised leader in this field. The demand for these
products remains unabated.
Strategically, we have enhanced further our global reach with the recently
formed CCH Netherlands BV for global leasing (Ijara) activities and during the
year the acquisition of CCH Investment Consultants EC which is licenced by the
Central Bank of Bahrain to provide investment advice. This acquisition provides
us with the opportunity to develop further our business in the Middle East and
build on our core offerings with a strong and experienced Bahrain-based team.
As part of our commitment to improving liquidity in the Company's shares, our
German subsidiary CCH Europe GmbH has recently sold 225,000 CCH shares held by
that company. We remain committed to providing increased liquidity in the
Company's shares and widening investor appeal. In addition, we have recently
announced the admission for trading of CCH shares on PLUS, a secondary market
trading platform. The Company will remain quoted on and regulated by AIM but
investors will have a wider choice of trading platforms.
CCH is now well positioned to maintain its strong earnings growth and I look
forward with confidence to the future.
These achievements have been made possible by the commitment, spirit and focus
of a very talented team including our Board of Directors whose professional and
commercial skills have helped keep pace with a rapidly changing environment.
Speed of response and our ability to adapt to wide ranging client needs is
paramount to our continued success. Our team has these virtues. I am also most
grateful to you, our shareholders, for the confidence you have placed in the
Company and for your continuing support.
Ian Salter :: Chairman
18 June 2007
Group Profit and Loss Account
Year ended 31 December 2006
Year to 14 months to
31 December 31 December 2005
2006
£ £
Group turnover 19,011,241 4,837,011
Cost of sales (12,405,506) (2,454,441)
Gross profit 6,605,735 2,382,570
Distribution costs (11,359) (140,537)
Administrative expenses (2,767,001) (1,551,935)
Fair value adjustment to listed investments (51,387) -
Operating profit 3,775,988 690,098
Finance fees receivable 162,143 11,559
Finance fees payable and similar charges (3,811) (12,103)
Profit on ordinary activities before taxation 3,934,320 689,554
Tax charge/credit on profit on ordinary activities (1,734,228) 93,132
Profit on ordinary activities after taxation £2,200,092 £782,686
Earnings per ordinary share (pence) 2.76p 1.21p
Group Balance Sheet
31 December 2006
31 December 2006 31 December 2005
(restated)
£ £ £ £
Fixed assets
Intangible assets 557,394 549,658
Tangible assets 33,108 120,714
Investments 98,562 49,949
689,064 720,321
Current assets
Debtors 235,287,239 94,386,344
Forward currency purchase 16,056,566 -
Deferred tax asset 308,774 327,100
Cash at bank and in hand 6,798,318 8,391,898
258,450,897 103,105,342
Creditors: amounts falling due within 238,553,195 101,484,794
one year
16,092,249 -
Forward currency sale
Net current assets 3,805,453 1,620,548
Total assets less current liabilities £4,494,517 £2,340,869
Capital and reserves
Called-up share capital 1,441,269 1,441,269
Share premium account 1,211,266 1,211,266
Other reserves 47,818 94,262
Profit and loss account 1,794,164 (405,928)
Equity shareholders' funds £4,494,517 £2,340,869
Group Cash Flow Statement
Year ended 31 December 2006
14 months to
31 December 2006 31 December 2005
(Restated)
£ £ £ £
Net cash (outflow)/inflow from operating (1,379,159) 6,014,949
activities
Returns on investments and servicing of
finance
Finance fees received 162,143 11,559
Finance fees paid (3,811) (12,103)
Net cash inflow/(outflow) from returns on 158,332 (544)
investments and servicing of finance
Taxation (30,127) -
Capital expenditure and financial investment
Receipts from disposal of fixed assets 956 210
Payments to acquire fixed assets (21,249) -
Acquisition of investments (100,000) (49,949)
Net cash (outflow) for capital expenditure and (120,293) (49,739)
financial investment
Acquisitions
Legal fees on acquisition of subsidiary - (68,960)
Purchase of subsidiary undertaking (63,804) -
Cash acquired with subsidiary 236,991 2,096,759
Net cash inflow from acquisitions 173,187 2,027,799
(Decrease)/increase in cash £(1,198,060) £7,992,465
NOTES TO THE ACCOUNTS
Year ended 31 December 2006
1 The calculation of earnings per share is based on the profit after
tax of £2,200,092 (2005 - £782,686) and on the number of shares in issue being
the adjusted weighted average number of shares in issue during the year of
79,682,539 (2005: 64,480,498).
2 The preliminary results for the year ended 31 December 2006 are
unaudited and were approved by the Directors on 18 June 2007. The financial
information set out above does not constitute statutory accounts within the
meaning of s.240 of the Companies Act 1985.
The statutory accounts for the period ended 31 December 2005 have
been delivered to the Registrar of Companies and received an audit report which
was unqualified, did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying the report, and
did not contain statements under s. 237(2) and (3) of the Companies Act 1985.
The statutory accounts for the year ended 31 December 2006 have not yet been
approved, audited or filed.
3 The accounting policies remain as stated in the Annual Report for the
period ended 31 December 2005, apart from those changes required as a
result of certain new accounting standards which came into force during the
year.
To the extent exemptions are contained within the relevant standard,
the comparative figures have not been changed. However, the comparative amounts
have been amended to reflect the following:
The deferred shares, originally accounted for as non-equity shares, have been
reclassified as part of equity shareholders funds in accordance with Financial
Reporting Standard 25, 'Financial instruments: Disclosure and presentation'. The
deferred shares are not treated as financial liabilities in accordance with the
requirements of Financial Reporting Standard 25, 'Financial instruments:
Disclosure and presentation'.
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