Final Results
Spice Holdings PLC
21 July 2005
MAIDEN FINAL RESULTS 2005
Spice Holdings plc ('Spice' or the 'Group'), the provider of outsourced support
services to the UK electricity, telecoms and water sectors, is pleased to
announce its final results for the year ended 30 April 2005.
Operational highlights:
June 2004 Launch of Freedom Technical Services
July 2004 Acquisition of Ives Contract Services
August 2004 Admission to AIM
October 2004 Meter U contract extension agreed with Siemens for the
East of England
November 2004 Acquisition of Atlantic Utility Services
July 2005 Acquisition of Lamva
Financial highlights:
* Profit before tax of £5.2 million (2004: £2.4 million) - 117% increase
* EBITA of £6.2 million (2004: £3.6 million) - 70% increase
* Basic earnings per share of 11.6 pence (2004: 6.2 pence) - 87% increase
* Final dividend of 1.7 pence per share (total dividend of 2.2 pence per share)
Sir Rodney Walker, Chairman of Spice, said: 'Over the coming year, our
strategy will be to continue to focus upon growing our existing activities
organically and to pursue acquisition opportunities, which are complementary and
which will enhance our existing operations in the same way that the acquisition
of Atlantic Utility Services has done in the current year. Many exciting
opportunities exist for the current financial year, which has got off to an
excellent start.'
For further information, please contact:
Spice Holdings plc Today only: 01756 770 376
Simon Rigby, Chief Executive Officer Thereafter: 0113 384 3838
Oliver Lightowlers, Group Finance Director
Carl Chambers, Corporate Development Director
Rawlings Financial PR Limited Tel: 01756 770 376
John Rawlings
Catriona Valentine
CHAIRMAN'S STATEMENT
I am very pleased to present our maiden set of full year results in what has
been a year of significant achievement and importance for the Group. Spice was
successfully admitted to the Alternative Investment Market (AIM) on 26 August
2004.
The Group's financial performance during the period has been strong and we have
delivered record results. Turnover for the year, arising from continuing
operations, was £85.5 million (2004: £80.5 million) and profit before tax was
£5.2 million (2004: £2.4 million), increases of 6% and 117% respectively.
Over the coming year, our strategy will be to continue to focus upon growing our
existing activities organically and to pursue acquisition opportunities which
are complementary and which will enhance our existing operations in the same way
that the acquisition of Atlantic Utility Services has done in the current year.
Our acquisition of Lamva Limited on 7 July 2005, following the end of our
financial year, maintains this strategy.
I am looking forward to the next 12 months. Many exciting opportunities exist
for the current financial year, which has got off to an excellent start. We
have set ourselves ambitious internal targets and I have every confidence that
these can be achieved. I would like to extend my personal thanks to all of
Spice's customers, suppliers and advisers but most of all to our employees for
their support, commitment and energy in this momentous year.
Finally, I thank all our shareholders, old and new for their support. We hope,
through our performance, to ensure that your confidence is fully rewarded.
Sir Rodney Walker
Chairman
CHIEF EXECUTIVE OFFICER'S STATEMENT
The Group provides support services and operates via three trading divisions.
Looking at each in turn:
Electricity Services Group
The latest Regulatory Review of the Electricity Distribution Industry
(Distribution Price Control Review 4) has been very much as originally predicted
with significant increases in capital expenditure (incremental spend of £1
billion anticipated, representing an increase of 22% over the next five years
and in our opinion the sustainable level in subsequent review periods) on
infrastructure development required but with pressure on Distribution Network
Operators to reduce revenue spend. Spice launched its Freedom Technical
Services business in June 2004 to enhance its service offering in the area of
specialist electrical engineering projects up to and including 132KV, and in so
doing positioned the Electricity Services business to benefit from the
infrastructure development that is essential to meet increasing demands for
electricity in the UK. I am pleased to report that in its first year of
operation, Technical Services has secured projects with major utility clients
and is already enhancing its reputation and credibility in this specialist
arena.
Electricity Services Group continues to deliver sustainable organic growth in
its traditional maintenance activities. We experienced a significant increase
in demand for cable jointing, service alterations and substation wiring projects
from our utility clients within Freedom Electrical Services, resulting in a 70%
increase in turnover. This increase in demand has encouraged Electricity
Services, in partnership with its franchisee network, to invest in the
establishment of a new electrical apprenticeship scheme, which will enhance the
Group's capacity in this growing market. Freedom Maintenance, which provides
civil substation maintenance services, continues to drive innovation and
enterprise into its service offerings. Our achievements were recognised, when
Freedom Maintenance was declared by EDF Energy, the largest distribution network
operation in the UK, as one of six key strategic partners.
The combined strengths of our higher value, technically challenging services and
our maintenance activities associated with substations and electricity networks
delivered an increased profit before interest and tax of £2.8 million (2004:
£2.5 million) - an increase of 12%. Importantly, these strengths also see
Electricity Services well positioned to pursue further organic growth.
Electricity Services' unique Freedom Model will have a continuing role to play
in delivering lower cost labour solutions and, at a time when Distribution
businesses have already delivered their early wins through the previous Price
Control reviews, they will now be seeking innovative solutions to enable the
delivery of further target reductions.
Electricity Services has already identified a new business stream that will
enhance its existing service offerings and this will be launched in Summer 2005
on the same lines as Technical Services - through identifying opportunities in
the market, securing the services of the right people and growing organically
through impressive service delivery.
Water Services Group
I am pleased to report that profit before interest and tax for Water Services
Group was £2.9 million (2004: £1.3 million), an increase of 123%.
This improvement in profits arose principally from our H2O Water Services
business (H2O), following the rationalisation of its cost base and the
introduction of a new performance/productivity remuneration scheme throughout
the operation. Recent extensions to contracts with United Utilities and
Yorkshire Water have provided a platform for future growth and, together with
other current opportunities, give cause for continued confidence in respect of
the financial year ending 30 April 2006. Atlantic Utility Services (renamed
Atlantic Water Services) was acquired in November 2004 and we focused very
strongly on integrating this business within our existing water operations, in
order to deliver synergy benefits and economy savings. This integration was
completed in late April 2005, which coincided with the appointment of Bill Leach
as Managing Director of Water Services Group, and Atlantic Water Services is
expected to contribute positively to results during the next financial year.
Metro Rod which provides drain and environmental services, enjoyed a record year
with operating profits exceeding £1 million for the first time. This was
achieved through two developments during the year. Firstly, we concluded the
restructuring of the business. This involved the conversion of direct labour
operations in London and Wales into franchised operations. Secondly, we
successfully focused on increasing sales and profitability from our national key
accounts and also on the development of local new business. We believe that
Metro Rod is well placed for further growth and expansion in the next financial
year.
Our meter reading business, Meter U, is now reading around one million meters
per month, compared to half a million 12 months ago. Our relationship with
Siemens continues to be strong, as evidenced by our appointment to provide meter
reading services to Siemens in the East of England. This involved the
mobilisation of 120 meter readers within three months, reflecting our ability to
respond quickly to customer needs whilst maintaining performance in existing
regions such as the East Midlands. Meter U also successfully concluded its
pilot gas meter reading scheme in North London in the second half of the year.
Subsequently, Meter U has been appointed by Siemens to provide gas meter reading
services for the whole of the area, requiring 200 gas meter readers in the South
of England by April 2006.
Telecoms Services Group
The deferral of certain anticipated overseas communications projects in the
second half of the year and the slower recovery of the 3G roll out programmes in
the UK caused Telecoms Services to fall short of revenue and profit expectations
for the year. However, strenuous cost control and better than expected margins
on certain overseas and UK projects ensured that Telecoms Services still
reported a profit before interest and tax for the year of £2.4million (2004:
£2.8million), and operating EBITA margins of 19.0% (2004: 17.3%).
Good progress was made by Team Simoco in the introduction of its new range of
base stations and terrestrial trunked radio (TETRA) equipment where sales
continue to increase in a very satisfactory manner. An exclusive partnership
with Etelm (a French TETRA infrastructure manufacturer), to represent its
products on a world-wide basis (excluding France), resulted in the sale of the
first ever commercial end user TETRA system being licensed in the UK and we
generated large amounts of interest in international markets. The extension and
modernisation of Team Simoco's product and services range led to a major
redevelopment of UK and international distribution channels which is expected to
yield some significant opportunities over the coming financial year.
Team Telecom continued to experience poor trading conditions, due to the slow
expected roll out of 3G infrastructure in the UK and Europe. Compared with last
year, the losses for the period have been significantly reduced by the closure
of Team Telecom's Dutch office in the second half of the year. The business
continues to work with a small number of utility based customers providing
specialist telecoms maintenance support. We expect to see continued growth in
this area of the business over the next 12 months. Our intention is to return
Team Telecom to profit over this period and reduce its dependency on the
cellular installation and commissioning market. During the final quarter of the
year, Team Telecom won a small microwave roll-out framework contract with a
European manufacturer, which we hope signifies the recovery of telecom
programmes.
AirRadio achieved a very creditable performance over the period, continuing to
grow both revenues and profits. Non British Airways ('BA') revenues grew by 45%
as the business opened new airport infrastructure at Luton, Southampton and
Liverpool airports. Further airport systems are expected over the next 12
months. Significant progress has been made with other major airline industry
customers, who have been transferring their business to us on a nationwide
basis. A recent agreement with British Airports Authority ('BAA') means that
any new customers at its seven airports will be automatically referred to
AirRadio for their radio communications requirements. Terminal 5 at Heathrow
Airport is a significant development for BAA, increasing the capacity of the
airport by some 50% to 90 million in terms of annual passenger numbers; this
agreement spans the planned opening date of 2008. Our AirRadio business remains
underpinned by the BA long term contract and we expect to see continued growth
in this account over the coming months. We also expect AirRadio to continue to
develop further UK airport opportunities, whilst looking overseas for potential
longer term expansion.
Acquisitions
Two acquisitions have been made during the year, one in Electricity Services and
one in Water Services.
In July 2004, we acquired the business and assets of Ives Contract Services
Limited for cash consideration of £0.6 million. This is a grounds maintenance
business which complemented our existing maintenance business and brought with
it contracts which expanded our utility client base in this activity.
In November 2004, we acquired the business and assets of Atlantic Utility
Services Limited for cash consideration of £0.6 million. This was H2O's closest
competitor in the installation of water meters and its acquisition has
significantly strengthened our position in the sector.
During the course of the year, we evaluated a number of other acquisition
opportunities, which were eventually rejected. We continue to evaluate other
such opportunities as they arise - however, any acquisition that the Group
undertakes must fulfil our strict criteria, complement our existing businesses,
or move Spice into strategically important areas.
Following the end of the financial year, on 7 July 2005, we completed the
acquisition of Lamva Limited, a specialist provider of civil and electrical
services primarily in the East and South East of England. During the year ended
31 March 2005, Lamva Limited recorded an operating profit of £1.4 million (after
adjusting for non-recurring employment costs). The net consideration paid by the
Group was £5.9 million, representing a multiple of 4.1 times adjusted operating
profit. This acquisition reinforces both our presence and expertise in the
higher value specialist electricity services market, whilst enhancing our
ability to continue our expansion in other parts of the country.
I am delighted with our performance for the year and would like to thank and
extend my congratulations to all of my colleagues in the business for their
contribution to this performance. I very much look forward to delivering
further news of developments for Spice as the new financial year progresses.
W S Rigby
Chief Executive Officer
FINANCIAL REVIEW
The financial performance of the Group during the year has been strong, as we
have continued to focus on improving our net margins and profitability.
Turnover
Turnover from continuing operations increased by 6% to £85.5 million (2004:
£80.5 million). Organic turnover growth has been particularly strong within
Water Services which increased by £5.5 million, an increase of 19% compared to
the prior year after excluding the impact of the acquisition of Atlantic Utility
Services, which contributed £3.0 million of turnover in the current year.
Profit on ordinary activities before tax
Profit on ordinary activities before tax more than doubled to £5.2 million
(2004: £2.4 million) - an increase of 117%.
Profit on ordinary activities before interest, tax, amortisation of intangible
fixed assets and non-operating exceptional costs ('EBITA')
EBITA increased by 70% to £6.2 million. Acquisitions contributed £0.2 million
to EBITA in the year, being the impact of Ives which was acquired prior to our
admission to AIM. Atlantic Water delivered break even performance taking account
of restructuring costs in the period since acquisition.
Overall operating EBITA margins were 7.2% (2004: 4.4%). Margins were improved
across all divisions within the Group - Electricity Services operating EBITA
margins were 7.8% (2004: 7.1%), Water Services operating EBITA margins were 8.5%
(2004: 4.9%) and Telecoms Services operating EBITA margins were 19.0% (2004:
17.3%).
Interest
Interest payable at £0.6 million (2004: £0.8 million) has decreased as a result
of a reduction in borrowings arising from the repayment of debt with the
proceeds of flotation but offset by the effect of acquisitions made in the year
and related debt and working capital. Interest cover has improved significantly
from 4.1 times in 2004 to 10.2 times in 2005.
Tax
The Group's effective rate of tax for the year was 29% (2004: 36%). The
difference between the effective rate and the statutory tax rate of 30% largely
arises from the tax relief available to the Group from the exercise of employee
share options.
Earnings per share
Basic earnings per share at 11.6 pence (2004: 6.2 pence) increased by 87% and
adjusted basic earnings per share (before amortisation of intangible fixed
assets and non-operating exceptional costs) at 12.9 pence (2004: 8.1 pence)
increased by 59%. As at 30 April 2005, the Group's ESOP had adequate shares to
satisfy all share options vested and also options granted but not yet vested.
Dividend
The Board has recommended a final dividend of 1.7 pence per share (2004: nil
pence) which together with the interim dividend amounts to a total dividend of
2.2 pence per share (2004: nil pence). The dividend is covered 4.7 times by
earnings. The final dividend will be paid on 20 September 2005 to members on
the register at the close of business on 9 September 2005.
Cashflow
Net cash inflows arising from operating activities increased by £2.9 million to
£4.0 million (2004: £1.1 million). This inflow is after taking account of £1.1
million of one off payments connected with the Group's admission to AIM. During
2004 and in the first half of this financial year, we improved our trade
creditor position resulting in net working capital outflows of £3.9 million
(2004: £3.9 million), which includes the one off payments connected to admission
to AIM. As anticipated, our utilisation of working capital in the second half
of the financial year has remained broadly neutral, after taking account of the
acquisition of Atlantic Water Services.
Balance Sheet
Net assets increased to £17.5 million (2004: £2.3 million), reflecting the
impact of the net proceeds of flotation (£11.1 million), retained profits for
the year and also the exercise by employees of share options. Net current
assets are £0.8 million (2004: Net current liabilities of £5.8 million). The
net proceeds arising from flotation of £11.1 million were used to repay bank
debt resulting in net debt of £4.5 million (2004: £16.4 million) at the balance
sheet date. During the year, in anticipation of flotation, we conducted a
review of the Group's banking arrangements and available facilities, resulting
in the appointment of HSBC as sole bankers to the Group. At 30 April 2005, the
Group had unutilised bank facilities totalling £18.0 million.
O J Lightowlers
Group Finance Director
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 30 April 2005
Note 2005 2004
£'000 £'000
Turnover:
Continuing operations 81,906 80,466
Acquisitions 3,602 -
--------- ---------
Total continuing operations 85,508 80,466
Discontinued operations - 2,153
--------- ---------
Group turnover 2, 5 85,508 82,619
Cost of sales 5 (59,713) (57,350)
--------- ---------
Gross profit 25,795 25,269
Administrative expenses (19,943) (21,708)
----------------------------------------- --------- ---------
EBITA 6,208 3,647
Amortisation of intangible fixed assets (356) (86)
----------------------------------------- --------- ---------
Operating profit:
Continuing operations 5,707 2,007
Acquisitions 145 1,256
--------- ---------
Total continuing operations 5,852 3,263
Discontinued operations - 298
--------- ---------
Group operating profit 5 5,852 3,561
Loss arising on disposal of subsidiary undertakings - (290)
Loss arising on disposal of associated undertaking - (68)
Losses arising on disposal of fixed assets (77) (20)
Net interest payable (567) (784)
--------- ---------
Profit on ordinary activities before tax 5,208 2,399
Tax on profit on ordinary activities (1,515) (875)
--------- ---------
Profit on ordinary activities after tax 3,693 1,524
Equity minority interests (5) (19)
--------- ---------
Profit for the year 3,688 1,505
Dividends 3 (791) -
--------- ---------
Retained profit for the year 6 2,897 1,505
========= =========
Earnings per share (pence per share) 4
Basic 11.6 6.2
Diluted 10.8 6.1
Adjusted earnings per share (pence per share)
Basic 12.9 8.1
Diluted 12.1 7.9
Acquisitions comprise Ives Contract Services Limited and Atlantic Water Services
Limited. Discontinued operations in 2004 comprise VIP Bin Cleaning Limited and
B2C Support Services Limited.
EBITA comprises profit on ordinary activities before interest, tax, amortisation
of intangible fixed assets and non-operating exceptional costs.
There were no other recognised gains and losses other than reported in the
profit and loss account above.
CONSOLIDATED BALANCE SHEET
As at 30 April 2005
Note 2005 2004
£'000 £'000
as restated
Fixed assets
Development expenditure 712 561
Purchased goodwill 6,950 6,059
Negative goodwill (174) (394)
--------- ---------
Intangible fixed assets 7,488 6,226
Tangible fixed assets 11,876 12,505
Investments 212 212
--------- ---------
19,576 18,943
Current assets
Stock 1,773 2,364
Debtors 16,609 14,338
Cash at bank and in hand - 127
--------- ---------
18,382 16,829
Creditors - amounts falling due within one year (17,604) (22,568)
--------- ---------
Net current assets/(liabilities) 778 (5,739)
--------- ---------
Total assets less current liabilities 20,354 13,204
Creditors - amounts falling due after more than
one year (1,437) (8,519)
Provisions for liabilities and charges (1,389) (2,403)
--------- ---------
Net assets 17,528 2,282
========= =========
Capital and reserves
Called up equity share capital 4,213 3,100
Share premium account 13,104 2,950
Revaluation reserve 1,555 1,724
Capital redemption reserve 100 100
Profit and loss account (1,444) (5,651)
--------- ---------
Equity shareholders' funds 6 17,528 2,223
Equity minority interest - 59
--------- ---------
Capital employed 17,528 2,282
========= =========
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 April 2005
Note 2005 2004
£'000 £'000
Net cash inflow from operating activities 7a 4,024 1,114
Returns on investments and servicing of finance
Net interest paid (560) (761)
Interest element of finance lease payments (7) (23)
--------- ---------
(567) (784)
--------- ---------
Tax paid (1,483) (535)
--------- ---------
Capital expenditure and financial investment
Purchase of tangible fixed assets (2,308) (1,946)
Development expenditure (329) (314)
Sale of tangible fixed assets 1,786 397
--------- ---------
(851) (1,863)
--------- ---------
Acquisitions and disposals
Purchase of trade and assets (1,362) (5,009)
Disposal of subsidiary undertakings - (1,892)
Net cash disposed of with subsidiary undertakings - 515
--------- ---------
(1,362) (6,386)
--------- ---------
Equity dividends paid (177) (142)
--------- ---------
Net cash outflow before financing (416) (8,596)
--------- ---------
Financing
Principal repayment due under finance leases (133) (38)
Sale of investments - own shares 1,141 257
Purchase of investments - own shares - (759)
Net proceeds from issue of shares 11,267 -
Bank loan repayments (11,812) (1,640)
Bank loan advances 1,750 6,595
--------- ---------
2,213 4,415
--------- ---------
Increase/(decrease) in cash 7b, 7c 1,797 (4,181)
--------- ---------
NOTES TO THE PRELIMINARY ANNOUNCEMENT
For the year ended 30 April 2005
1. Basis of accounting
The audited consolidated financial information for the year ended 30 April 2005
has been prepared in accordance with applicable UK accounting standards and is
consistent with accounting policies applied in the financial statements for the
year ended 30 April 2004, with the exception of the accounting policy in respect
of own shares (see below). The financial information included in this
announcement has been extracted from the audited financial statements for the
years ended 30 April 2005 and 2004. The content of this announcement has been
agreed with the Company's auditors.
UITF 38, Accounting for ESOP trusts, has been adopted in these financial
statements from 1 May 2004. Comparative numbers have been restated to reflect
the impact of the adoption of UITF 38 where appropriate. The adoption of UITF
38 has had no effect on the consolidated profit and loss account of either 2005
or 2004 but has resulted in a reduction in shareholders' funds of £7,144,000 at
30 April 2004.
This preliminary announcement does not constitute the Group's financial
statements. The Group's 2005 Annual Report and Financial Statements, on which
the Company's auditors, PricewaterhouseCoopers LLP, have given an unqualified
opinion in accordance with Section 235 of the Companies Act 1985, are to be
delivered to the Registrar of Companies following the Company's Annual General
Meeting. The Group's 2004 accounts, which contain an unqualified audit report,
have been filed with the Registrar of Companies.
2. Turnover
Turnover, which excludes value added tax, arises from several activities.
Turnover is recognised in the profit and loss account at the point that a
service is provided or products supplied for each of the following activities:
- facilities management and maintenance services;
- private mobile radio products;
- drain care, maintenance, repair and cleaning services;
- services for the development and support of telecommunications networks;
- employment agency services;
- property maintenance; and
- information technology installation, commissioning and maintenance
activities.
Where the Group operates as principal to the transaction, turnover is recognised
at gross values. Where the Group acts as agent in the transaction, with the
franchisee being the principal, the Group recognises within turnover the net
commission earned on the transactions.
3. Dividends
2005 2004
£'000 £'000
Interim dividend of 0.5 pence per share paid (2004: nil pence) 177 -
Final proposed dividend of 1.7 pence per share (2004: nil pence) 614 -
--------- ---------
791 -
--------- ---------
Dividends amounting to £136,000 (2004: £nil) have been waived by the ESOP and
therefore deducted in arriving at the aggregate of dividends paid and proposed.
It is proposed that the final dividend per share amounting to £614,000 (2004:
£nil) will be paid on 20 September 2005 to those shareholders on the register at
9 September 2005.
4. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of shares in issue during
each period. The weighted average number of shares, after adjusting for shares
held by the ESOP, in issue during the year used in the calculation of basic
earnings per share was as follows:
2005 2004
'000 '000
Weighted average shares for basic earnings per share 31,900 24,365
---------- ----------
Diluted earnings per share is the basic earnings per share adjusted for the
dilutive effect of the conversion into fully paid shares of the weighted average
number of share options outstanding during the year. The weighted average
number of shares in issue during the period used in the calculation of diluted
earnings per share was as follows:
2005 2004
'000 '000
Weighted average shares for diluted earnings per share 34,043 24,869
---------- ----------
Adjusted earnings per share have been calculated so as to exclude the effect of
the amortisation of all intangible fixed assets and non-operating exceptional
costs. Adjusted earnings per shares have been presented in order that the
effects on reported earnings of the amortisation of intangible fixed assets and
non-operating exceptional costs can be fully appreciated. Adjusted earnings
used in the calculation of basic and diluted earnings per share reconciles to
basic earnings as follows:
2005 2004
£'000 £'000
Basic earnings 3,688 1,505
Non-operating exceptional costs 77 378
Amortisation of intangible fixed assets 356 86
--------- ---------
Adjusted earnings 4,121 1,969
========= =========
5. Segmental analysis
The turnover for the year was derived from the Group's principal activities and
is attributable to the following markets:
2005 2004
£'000 £'000
By destination
UK 83,830 76,680
Continental Europe 853 1,627
Rest of the World 825 4,312
--------- ---------
85,508 82,619
========= =========
All turnover originates in the United Kingdom. The Group's profit before tax
and net assets all substantially arise from UK operations and consequently the
following analyses are presented by business segment only.
Turnover for the year is derived from the Group's principal activities as
follows:
2005 2004
£'000 £'000
Electricity Services 36,742 36,851
Water Services 35,045 26,580
Telecoms Services 13,493 16,264
Head office 228 771
Discontinued operations - 2,153
--------- ---------
85,508 82,619
========= =========
The Group's profit before tax was derived from the Group's principal activities
as follows:
2005 2004
£'000 £'000
as restated
Electricity Services 2,780 2,499
Water Services 2,937 1,257
Telecoms Services 2,373 2,791
Head office (2,238) (3,284)
Discontinued operations - 298
--------- ---------
5,852 3,561
Non - operating exceptional costs (77) (378)
Net interest payable (567) (784)
--------- ---------
5,208 2,399
========= =========
The Group's profit before tax by principal activity for the year ended 30 April
2004 has been restated such that the basis of presentation is consistent with
that presented for the year ended 30 April 2005. Certain central costs that
that were previously allocated, during the year ended 30 April 2004, to
Electricity Services, Telecoms Services and Water Services are now recorded
within Head office costs.
6. Reconciliation of movement in equity shareholders' funds
2005 2004
£'000 £'000
as restated
Profit for the year 3,688 1,505
Dividends (791) -
--------- ---------
Retained profit for the year 2,897 1,505
Proceeds from sale of own shares 1,141 257
Payments to acquire own shares - (759)
Issue of shares 12,636 -
Costs of share issue (1,369) -
--------- ---------
Net addition to equity shareholders' funds 15,305 1,003
Opening equity shareholders' funds 2,223 1,220
--------- ---------
Closing equity shareholders' funds 17,528 2,223
========= =========
Opening equity shareholders' funds were originally stated as £9,367,000 at 1 May
2004 prior to the adoption of UITF 38, as described in Note 1.
7. Notes to the cash flow statement
7a. Reconciliation of operating profit to net cash inflow
2005 2004
£'000 £'000
Reconciliation of operating profit to net cash inflow
Operating profit 5,852 3,561
Depreciation of tangible fixed assets 1,720 1,354
Amortisation of negative goodwill (220) (290)
Amortisation of intangible fixed assets 576 376
Loss on sale of other fixed assets - 15
Decrease in stock 742 1,042
(Increase)/ decrease in debtors (2,271) 266
Decrease in creditors (2,375) (5,210)
--------- ---------
Net cash inflow from operating activities 4,024 1,114
========= =========
7b. Analysis of net debt
At 1 May Non cash At 30 April
2004 Cash flows movements 2005
£'000 £'000 £'000 £'000
Cash at bank and in hand 127 (127) - -
Bank overdraft (4,637) 1,924 - (2,713)
---------- --------- --------- ---------
Increase/(decrease) in cash during
the year (4,510) 1,797 - (2,713)
Bank loans due within one year (3,263) 3,020 - (243)
Bank loans due after one year (8,471) 7,042 - (1,429)
Finance leases due within one year (112) 88 (31) (55)
Finance leases due after one year (48) 45 (5) (8)
--------- --------- --------- ---------
Net debt (16,404) 11,992 (36) (4,448)
========= ========= ========= =========
7c. Reconciliation of net cash inflow to movement in net debt
2005 2004
£'000 £'000
Increase/ (decrease) in cash in the year 1,797 (4,181)
Net cash disposed of with subsidiary undertakings - (515)
Cash inflow from financing (2,213) (4,415)
--------- ---------
Change in net debt resulting from cash flows (416) (9,111)
Net proceeds received from share issue 11,267 -
Sale/(purchase) of investments - own shares 1,141 (502)
New and acquired finance leases (36) -
Net debt at 1 May (16,404) (6,791)
--------- ---------
Net debt at 30 April (4,448) (16,404)
========= =========
8. Notice of Annual General Meeting
The Annual General Meeting of Spice Holdings plc will be held at The Royal
Armouries, Armouries Drive, Leeds LS10 1LT, on Wednesday 7 September 2005 at
2.00pm.
9. Availability of annual report
The annual report will be sent to all shareholders on 9 August 2005. Copies may
be obtained from the Company Secretary at the Registered Office of the Company
at 111 Bradford Road, Tingley, Wakefield, WF3 1SD for a period of one month from
9 August 2005.
This information is provided by RNS
The company news service from the London Stock Exchange
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