Interim Results

Allen PLC 27 November 2000 FOR RELEASE 7.00AM 27 November 2000 ALLEN PLC (Hire Services, Utility Services, Building Contracting) Interim results for six months ended 1 October 2000 Main Points 2000 1999 % Change (26 Weeks) (27 Weeks) Turnover £171.50m £170.77m 0.4 Operating profit before exceptionals £6.55m £11.52m (43.1) Pre-tax profit £0.54m £10.07m (94.6) Basic earnings per share (pence) 0.90p 16.92p (94.7) Continuing earnings per share (pence) 10.17p 12.88p (21.0) Dividends per share (pence) 5.60p 5.60p - Net assets per share (pence) 189.09p 173.17p 9.2 Gearing (%) 43.6% 59.5% (26.7) Interest cover (times) before exceptionals 4.1 7.9 (48.1) * Objective to establish Speedy as a separate quoted company * Strong growth continues in Hire Services * Good performance by Ryan in Utility Services * First loss from Building Division For further information: Allen Plc 01204 699277 Don Greenhalgh (Chairman) Ken Fox (Chief Executive) Neil O'Brien (Finance Director) Binns and Co Public Relations 020 77869600 Brian Coleman-Smith Bruce Croxford ALLEN PLC (Hire Services, Utility Services, Building Contracting) Interim results for the six months ended 1 October 2000 CHAIRMAN'S STATEMENT Donald Greenhalgh, the Chairman, made the following comments on the results: Overview The Group has evolved rapidly over the last six months most significantly with the disposal programme, which has resulted in the Group being reclassified in the Support Services Sector. We have continued to review strategy and it is the Board's objective to establish Speedy as a separate quoted company. The Board is currently discussing with its advisors the achievement of this objective. Results Turnover on continuing activities was £152.81 million (1999: £139.15 million), profit before tax on these continuing activities was £6.04 million (1999: £ 7.64 million) and adjusted earnings per share were 10.17p (1999: 12.88p). Profit before tax (including exceptional items and losses on discontinued operations) was £0.54 million (1999: £10.07 million) on turnover of £171.50 million (1999: £170.77 million). Earnings per share were 0.90p (1999:16.92p). Gearing at the half year end was 43.6% (1999: 59.5%). Dividend The Board has decided to maintain the interim dividend at 5.60p per share and it is the Board's intention, subject to unforeseen circumstances, to recommend a maintained final dividend. Disposals The major decision implemented during this half year was to withdraw from Housebuilding and we announced on 14 August 2000 the sale of this division to Morris Homes. This followed the successful sale of the land at Lymm which resulted in an exceptional profit before tax of £7.0 million after expenses in the results for the year ended 2 April 2000. Morris Homes has notified Allen of a claim which is material relative to the net assets of the Homes division. The Board is vigorously disputing the amount of the claim. On 18 September we announced the decision to close or sell G Pearce, which was loss making in the first half of the year. Pearce is a small non specialist civil engineering sub contractor and we are currently in discussions to sell the business to a third party. We also disposed of Speedy Scaffolding and Sheet Piling (UK). Exceptional items of £4.42 million relate to transaction costs on the disposal of Allen Homes, losses on the run down or sale of Pearce and the Directors' estimate of the value of the Morris claim. Management Changes With a view to restructuring and taking forward the Building and Utility Services divisions we have made two senior appointments at the operational level. Nick Davies, who joined us from Mansell Plc, was appointed a Group Director and Managing Director of our Building Contracting Division and Mike Rowan, who was previously with Balfour Beatty Group, was appointed Managing Director of our utility services activities. Outlook The strong performance experienced in Hire Services is continuing and we expect another excellent result. Ryan continues to perform well in Utility Services. Building's performance needs to improve substantially. Its losses are disappointing and the Board has taken action to improve its performance, including the appointment of new management and more rigorous financial controls. However, the benefits of these actions are unlikely to be fully realised in the current financial year. The Board is actively progressing its objective to establish Speedy as a separate quoted company and looks forward to making further announcements. Don Greenhalgh Chairman CHIEF EXECUTIVE'S REVIEW Ken Fox, the Group Chief Executive, reviewing the Group's activities said: My review focuses on continuing activities. Hire Services Our Hire service companies have produced a record result in a market which has seen few, if any, price rises. Following the sale of Speedy Scaffolding, turnover in continuing operations has increased by 22% with operating profit up by 13% even after the 'start up' costs of Power and Survey. In total we have 182 depots under the Speedy banner. We believe that Speedy has reached the No.2 position in the tool hire sector and has closed the gap with the market leader. 'Like for like' sales in our Hire centres rose by 15% and depot numbers at the end of September were 159 following the opening of 5 'Greenfield' depots. Supply agreements were concluded in the period with Mowlem and Jackson. Since the period end we have completed a further supply agreement with Tilbury Douglas and we believe that agreements such as these will be an ongoing feature of the rental business as clients consolidate the number of their preferred suppliers. Speedy Space increased their cabin fleet by 9% to 10,019 and maintained a utilisation rate averaging 91% over the half year. The planned expansion of our hire services business continues. Since the end of September we have purchased the Rapid Hire Tool business from Tilbury Douglas. We have also acquired one depot in New Mills, Derbyshire giving a net increase of 10 depots. We are on target to open 20 'Greenfield' depots during the year. We also continue to seek acquisitions at the right price. Our fourth Hire Centre Region - Speedy Western - commenced trading as a separate entity in October and is already operating successfully. Continued steady growth is expected in Space. We are optimistic about prospects for Speedy Power which commenced trading in April and which has got off to a flying start having already generated revenue in Spain and France. Our second Speedy Power depot is due to open on 1 December. The outlook for the full year is very promising in Hire Services. Utility Services Ryan, our Utility Services contractor, has again performed well producing increases in turnover and operating profit. In the period work commenced on the 5 year term contracts for North West Water and Transco. As expected start up costs have reduced margins. Managing Director, Mike Rowan, joined the company in September bringing a wealth of experience and expertise to the management team, and the potential to extend activities particularly in the field of multi utility provision. Work in hand is very healthy and the level of enquiries from new and existing clients is encouraging. We expect another good year from Ryan. Building The results of our building division are extremely disappointing. This is the first loss reported by Allen in our 54 year history as a building contractor and arises predominantly from certain larger contracts. Procedures have been tightened and we have recently announced the planned closure of Yorkshire based Allenbuild Projects which is responsible for most of these loss making contracts. All other geographic regions are profitable. Nick Davies our new divisional Managing Director joined us in September and I am confident that he has the positive approach, and is taking the actions necessary, to improve the performance of this division. However the benefits of these actions are unlikely to be fully realised in this financial year. Ken Fox Chief Executive ALLEN PLC UNAUDITED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 1 OCTOBER 2000 26 Weeks 27 Weeks Year to to 1 to 3 October 2 April October 1999 2000 2000 £'000 £'000 £'000 TURNOVER Continuing operations 152,810 139,148 280,478 Discontinued operations 18,690 31,625 67,472 ---------- --------- ---------- 171,500 170,773 347,950 OPERATING PROFIT Continuing operations 8,168 9,458 19,406 Discontinued operations (1,086) 2,430 12,030 Unrecovered central overheads (529) (367) (825) Exceptional items (4,416) - (197) ---------- --------- --------- 2,137 11,521 30,414 Interest payable (1,602) (1,450) (2,948) ---------- ---------- ---------- Profit on ordinary activities before taxation 535 10,071 27,466 Taxation (161) (3,030) (8,265) ---------- ---------- --------- Profit on ordinary activities after taxation 374 7,041 19,201 Equity minority interests - (13) (24) ---------- ---------- ----------- Profit for the period attributable to the 374 7,028 19,177 group Dividends (2,326) (2,326) (5,773) ---------- ---------- ---------- (Loss)/retained profit for the period (1,952) 4,702 13,404 ---------- ---------- --------- Earnings per share (pence) 0.90 16.92 46.17 ---------- ---------- -------- Dividends per share (pence) 5.60 5.60 13.90 ---------- ---------- -------- ALLEN PLC UNAUDITED BALANCE SHEET AS AT 1 OCTOBER 2000 As at As at As at 1 October 3 October 2 April 2000 1999 2000 £'000 £'000 £'000 Fixed assets Intangible assets 654 222 696 Tangible assets 82,456 89,198 95,432 ---------- ---------- --------- 96,086 82,678 89,894 ---------- ---------- -------- Current assets Stocks and work in progress 4,280 41,712 38,438 Debtors falling due in less than one year 91,996 74,527 83,997 Debtors falling due after more than one year 5,000 - - Cash at bank and in hand 1,021 - 2,476 ---------- ---------- --------- 102,297 116,239 124,911 Creditors: amounts falling due in less than one year (95,804) (97,665) (112,372) ---------- ---------- --------- Net current assets 6,493 18,574 12,539 ---------- ---------- --------- Total assets less current liabilities 102,579 101,252 102,433 Creditors: amounts falling due after more than one year (16,206) (24,966) (16,230) Provisions for liabilities and charges (7,834) (4,360) (5,564) ---------- ---------- ---------- 78,539 71,926 80,639 ---------- ---------- --------- Capital and reserves Called-up share capital 2,077 2,077 2,077 Share premium 30,119 30,119 30,119 Merger reserve 3,660 3,660 3,660 Revaluation reserve 390 390 390 Investment property revaluation reserve 675 675 675 Capital redemption reserve 26 26 26 Profit and loss account 41,592 34,842 43,544 ---------- ---------- --------- Equity shareholders' funds 78,539 71,789 80,491 Equity minority interests - 137 148 ---------- ---------- --------- 78,539 71,926 80,639 ---------- ---------- --------- ALLEN PLC UNAUDITED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 1 OCTOBER 2000 26 Weeks 27 Weeks Year to to to 2 April 1 October 3 October 2000 2000 1999 £'000 £'000 £'000 Cash flow from operating activities 4,121 7,024 33,629 --------- --------- --------- Returns on investments and servicing of finance Interest received - - 19 Interest paid (504) (86) (405) Interest element of hire-purchase and finance lease rental payments (1,098) (1,364) (2,562) ---------- ----------- ------- Net cash outflow from returns on investments and servicing of finance (1,602) (1,450) (2,948) ---------- ----------- ------- Taxation (1,611) - (4,364) ---------- ----------- ------- Capital expenditure and financial investment Purchase of tangible fixed assets (9,537) (6,864) (20,197) Sale of tangible fixed assets 4,270 3,428 8,423 ---------- ----------- ------ Net cash (outflow)/inflow for capital expenditure and financial investment (5,267) (3,436) (11,774) ---------- ----------- ------- Acquisitions and disposals Purchase of businesses - - (1,994) Disposal of subsidiaries 16,012 - - Net overdraft disposed of 4,716 - - ---------- --------- -------- Net cash inflow from acquisitions and disposals 20,728 - (1,994) ---------- --------- -------- Equity dividends paid (3,447) (2,908) (5,234) ---------- -------- --------- Financing Decrease in debt due within one year - repayments of amounts borrowed (5,660) (715) (1,445) Increase in debt within one year - - 6,600 Capital element of hire-purchase and finance lease rental payments (8,717) (8,120) (17,515) ---------- -------- --------- Net cash outflow from financing (14,377) (8,835) (12,360) --------- ---------- -------- Decrease in cash in the period (1,455) (9,605) (5,045) --------- --------- --------- NOTES 1. Turnover and Operating Profit 26 Weeks 27 Weeks Year to to to 1 October 3 October 1999 2 April 2000 £'000 2000 £'000 £'000 Turnover - Continuing Operations Hire Services 47,235 38,724 79,120 Utility Services and Civil 25,535 19,196 40,955 Engineering Building 80,040 81,228 160,403 ---------- --------- ---------- 152,810 139,148 280,478 ----------- --------- ---------- Turnover - Discontinued Operations Hire Services 623 1,804 3,446 Utility Services and Civil 7,189 10,160 22,133 Engineering Housebuilding 10,878 19,661 41,893 --------- --------- --------- 18,690 31,625 67,472 --------- --------- --------- Total 171,500 170,773 347,950 --------- -------- --------- Operating Profit - Continuing Operations Hire Services 8,237 7,310 15,097 Utility Services and Civil 1,022 2,063 Engineering 1,056 Building (1,125) 1,126 2,246 ---------- --------- --------- 8,168 9,458 19,406 Operating Profit - Discontinued Operations Hire Services 80 179 269 Utility Services and Civil (1,466) 245 512 Engineering Housebuilding 300 2,006 4,215 Housebuilding - Exceptional - - 7,034 --------- -------- ---------- (1,086) 2,430 12,030 --------- --------- --------- Total 7,082 31,436 11,888 Unrecovered central overhead (529) (367) (825) ---------- --------- ---------- 6,553 11,521 30,611 ---------- --------- ---------- Exceptional items (4,416) - (197) ---------- --------- ---------- 2,137 30,414 11,521 ---------- ---------- --------- 2. Movement in shareholders' funds 26 Weeks 27 Weeks Year to to 1 to 3 October 2 April October 1999 2000 2000 £'000 £'000 £'000 Profit for the period attributable to the 374 7,028 19,177 group Dividends (2,326) (2,326) (5,773) ---------- ---------- --------- Net (decrease)/increase in shareholders' funds (1,952) 4,702 13,404 Opening shareholders' funds 80,491 67,087 67,087 ---------- ---------- --------- Closing shareholders' funds 78,539 71,789 80,491 ---------- ---------- --------- 3. Losses and Provisions against losses on discontinued operations 26 Weeks 27 Weeks Year to 1 October to 3 to 2 2000 October April £'000 1999 2000 £'000 £'000 Loss on disposal of discontinued (197) - - operation Provision against loss on disposal or termination of discontinued operations (4,416) - (197) Release of provision against losses on a terminated activity 197 - - -------- ------- ------ (4,416) - (197) -------- ------- ------ 4. Reconciliation of operating profit to net cash flow from operating activities 26 Weeks 27 Weeks Year to to 1 to 3 October 2 April October 1999 2000 2000 £'000 £'000 £'000 Operating profit 6,553 11,521 30,611 Exceptional items (1,791) - - Depreciation 7,155 5,839 12,873 Amortisation 42 12 43 Profit on sale of tangible fixed (1,354) (839) (1,853) assets Increase in stocks (887) (4,080) (516) Increase in debtors (5,248) (7,799) (17,003) (Decrease)/increase in creditors (349) 2,370 9,474 ---------- ----------- ---------- 4,121 7,024 33,629 ---------- ----------- ---------- 5. Reconciliation of net cash flow to movement in net debt 26 27 Weeks Year Weeks to to to 3 October 2 April 1 1999 2000 October £'000 £'000 2000 £'000 (Decrease) in cash in the period (1,455) (9,605) (5,045) Cash outflow from decrease in debt and hire-purchase and lease financing 14,377 8,835 12,360 -------- -------- -------- Change in net debt resulting from cash flows 12,922 (770) 7,315 On disposal of subsidiary undertakings 12 - - New hire-purchase and finance lease contracts (9,232) (7,924) (11,149) --------- -------- -------- Movement in net debt in the period 3,702 (8,694) (3,834) Net debt at the start of the period (37,914) (34,080) (34,080) --------- ------- --------- Net debt at the end of the period (34,212) (42,774) (37,914) --------- -------- -------- 6. The charge for taxation for the period is based on the estimated effective rate for the year of 30%. 7. The calculation of earnings per share is based upon earnings of £ 374,000 (1999: £7,028,000) and the time weighted average number of shares in issue during the period of 41,535,835 (1999: 41,535,835). The table below reconciles earnings per share, earnings per share (pre-exceptionals) and earnings per share (continuing operations). 26 Weeks 27 Weeks Year to to 1 October to 3 2 April 2000 October 2000 1999 Earnings per share (continuing 10.17 12.88 26.31 operations) Operating (loss)/profit on discontinued operations per share 5.85 12.03 (2.61) Tax on loss on discontinued operations per share 0.79 (1.78) (3.62) Minority interest on discontinued operations per share - (0.03) (0.06) -------- --------- -------- Earnings per share 8.35 16.92 34.66 (pre-exceptionals) Post tax exceptional items per share (7.45) - 11.51 -------- --------- -------- Earnings per share 0.90 16.92 46.17 -------- --------- --------- 8. The Board has declared an interim dividend of 5.60 pence per share to be paid on Friday 26th January 2001 to shareholders on the register on Monday 8th January 2001. 9. The results for the year ended 2 April 2000 are extracts from the Annual Report and Accounts as filed with the Registrar of Companies. These were audited and reported upon without qualification by Lathams and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. 10. The interim report will be posted to all shareholders on or about 5th December 2000 and copies of this and the last published Annual Report and Accounts are available from the Secretary, Allen Plc, Northern House, 24/26 Chorley Road, Blackrod, Bolton BL6 5JS. 11. In the financial statements for the year ended 2 April 2000, property development and investment business was combined with building. Previously disclosed comparative information for the period to 3 October 1999 has been restated in respect of this change. 12. Approval The interim statement for the six months ended 1 October 2000 was approved by the Board of Directors on 24th November 2000 and has been prepared on the basis of the accounting policies as set out in the financial statements for the year ended 2 April 2000. The financial information contained in this interim report does not constitute statutory accounts for the Group for the relevant periods.

Companies

Speedy Hire (SDY)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today