Interim Results
Spice Holdings PLC
16 January 2006
16 January 2006
Interim Results 30 October 2005
Spice Holdings plc ('Spice' or 'the Group'), the provider of outsourced support
services, is pleased to announce its interim results for the period ended 30
October 2005.
Financial highlights
Profit before tax of £3.0 million (2004: £1.8 million) - 61% increase
EBITA of £3.8 million (2004: £2.5 million) - 53% increase
Basic earnings per share of 5.4 pence (2004: 4.6 pence) - 17% increase
Adjusted diluted earnings per share of 6.4 pence (2004: 5.3 pence) - 21%
increase
Interim dividend of 0.7 pence per share (2004: 0.5 pence)
Operational highlights
July 2005 Launch of Freedom Data Services
July 2005 Acquisition of Lamva
September 2005 Acquisition of Circle Britannia and Serviceline
September 2005 Placing of 7 million shares raising net proceeds of £14.5
million
September 2005 Acquisition of Hutchison
September 2005 BAA letter of agreement
November 2005 Acquisition of Kemac
Simon Rigby, Chief Executive Officer commented:
'We have delivered excellent growth in the first half of the financial year.
'The Board believes that prospects for the Group remain strong, based on its
position in expanding markets and its highly focused and motivated team. The
Group's trading performance in the second half of the year continues to be in
line with our expectations.
'We look to the future with a degree of confidence.'
...Ends...
For further information, please contact:
Spice Holdings plc Tel: 0113 384 3838
Simon Rigby, Chief Executive Officer
Oliver Lightowlers, Group Finance Director
Carl Chambers, Corporate Development Director
Financial Dynamics Tel: 020 7831 3113
Sally Lewis
Billy Clegg
Chief Executive Officer's statement
Overall performance
I am delighted to present our interim results for the period ended 30 October
2005. The Group has again delivered strong financial performance from its
existing operations and also from acquisitions made during the period. Turnover
for the six months ended 30 October 2005, arising from continuing operations,
was £55.6 million (2004: £41.3 million) and profit on ordinary activities before
tax was £3.0 million (2004: £1.8 million), increases of 35% and 61%
respectively. At the same time our EBITA operating margins improved to 6.9%
(2004: 6.0%). Spice operates via four trading divisions. Looking at each in
turn:
Electricity Services
The first six months of the financial year have been a very busy time for
Electricity Services, particularly with the acquisition of Lamva Limited (Lamva)
and the launch of Freedom Data Services in July 2005. I am pleased to report
that Electricity Services has delivered profit before tax and interest of £1.6
million (2004: £1.2 million) for the six month period ended 30 October 2005, a
38% improvement on the comparative period. Of this increase in profits in the
period, Lamva contributed £0.3 million.
Lamva provides civil and electrical services to the electricity utility sector
including switchgear changes; new connections; overhead line renewal and
maintenance; electrical and civil design services; and wayleaves services. The
business operates primarily in the East and South of England and its customers
include electricity distribution companies and wind farm operators. Spice has
worked alongside Lamva, for many years, as fellow Key Strategic Partners of EdF
Energy, the distribution network operator.
The acquisition of Lamva, which following the acquisition has been re-branded as
Freedom Projects, has accelerated the development of Electricity Services
towards the higher value added areas of professional and technical services
where better margins can be obtained. Utilising the expertise of Freedom
Projects with our existing Technical Services business, we are now constructing
networks to several wind farms within the UK and have recently won projects in
Dundee and Kettering.
We have developed partnerships and alliances with wind farm developers which
allow us to work across the value chain, from obtaining wayleaves and consents
to installing the infrastructure, electrical network, commissioning of turbines
and the ongoing maintenance of the network on behalf of the wind farm operator.
With the political pressure on developing clean energy this is a particular area
where Electricity Services will develop its service offering.
Further acquisitions will be targeted to widen Electricity Services' customer
base, and to add additional high valued skills which will enable us to grow our
private network customer base, in conjunction with Facilities Services. Whilst
acquisitions are adding to the growth of the business, it is pleasing to report
that the existing Electricity Services' businesses have continued to grow
organically. This trend will continue into the second half as our cross selling
efforts continue to bear fruit.
The recently formed business of Freedom Data Services, which manages utility
drawings, plans and other databases, is already performing ahead of schedule and
has won projects and contracts with National Grid. Further, Freedom Data
Services has made a positive contribution in the first half of the financial
year. With the pressure on utilities to reduce their operating costs, we
anticipate that there will be added impetus to outsourcing data management.
Electricity Services, under its Freedom brand, is developing a 'Cradle to Grave'
approach to utility network projects. This, alongside the recent distribution
price review settlements reached with the distribution network operators which
nationally allows for an average 48% increase in capital spend over the next
five years, will enable Electricity Services to be well placed to increase its
customer base and market share.
To enable us to both develop the Freedom brand and to meet our aspirations,
Electricity Services is investing in its key resource, which is people, and
presently has 10% of its staff as trainees and apprentices. By pursuing more
stability through framework contracts, this will enable us to recruit both
graduates and apprentices to fill the UK skills shortage in engineering.
Facilities Services
The newly established Facilities Services Division was created in September 2005
by the acquisition of Circle Britannia Limited (Circle Britannia) and its sister
company Serviceline (Nationwide) Limited (Serviceline). I am pleased to report
that Facilities Services has performed ahead of our expectations for the two
months since the acquisition and that the business contributed profit before
interest and tax of £0.3 million during the six month period ended 30 October
2005.
Circle Britannia is a provider of outsourced facilities services to corporate
clients and reinstatement services for major insurers. Serviceline provides
outsourced maintenance helpdesk services delivered either as part of an
integrated facilities management service, incorporating Circle Britannia's
facilities service operation, or as a stand alone service managing client's
existing suppliers. The activities of Circle Britannia and Serviceline have many
similarities to those carried out by Electricity Services, which maintains and
renews both electrical and building infrastructure within the utilities sector.
In forming this division, the Group acquired a highly prestigious client base
which includes Starbucks, Norwich Union, Dixons and Waterstones.
The acquisition provides the Group with a bridgehead into the commercial
facilities management sector. The facilities management market is estimated to
be worth £100 billion in the UK with the contracted-out element of this market
estimated to be worth around £60 billion. The sector is fast growing with
significant future potential. Already some sizeable opportunities have arisen,
resulting from Spice's acquisition, and these organic growth opportunities are
being rigorously pursued. Further acquisition opportunities will also be sought
to accelerate the development of Facilities Services. Opportunities that are
being considered include bolt ons to our existing business and also activities
that we view as being complementary including energy management,, HVAC (heating,
ventilation and air conditioning) maintenance and M&E (mechanical and
electrical) maintenance.
Telecoms Services
AirRadio continues to deliver improved performance as revenues increased by 12%
compared to the comparative six month period. Additional radio network capacity
has been added to both the Heathrow and Gatwick networks in order that we can
take full advantage of the British Airports Authority (BAA) contract agreed in
September 2005. We continue to look for new opportunities at UK airports to
expand our operations, with Southampton being added to the network in this
period. We hope to add a minimum of two further airports in the second half of
this financial year. Work for our biggest client British Airways (BA) continues
to develop steadily as we provide consultancy services connected to Heathrow
Terminal 5 together with other projects. Our biggest area of growth has been
within non-BA revenues which have grown by 67% compared with the same period
last year.
Our Team Telecom business has benefited from a slight improvement in market
conditions in the wireless communications market and financial performance for
this business has been in line with expectations. In September we acquired
Hutchison Communications Systems Limited and Hutchison Communications Systems
(France) SARL (Hutchison), a specialised telecommunications maintenance
business, which provides first line maintenance and support to internet protocol
(IP) & telephony network operators. Hutchison operates on a pan European basis
and is well placed to tap into the growth in this market. We are currently
undertaking a process of integrating and merging this business with Team
Telecom, in order to gain economies of scale in management, operations and
administration. We anticipate that this process will be completed in the second
half of the financial year and expect to see a positive impact to profits in
this period.
Team Simoco, our Professional Mobile Radio business, continues to re-develop its
UK and overseas distribution channels, adding some 46 new distributors in the
first six months of the financial year, which has been aided by the introduction
of a series of new radio and trunking products which revolutionise the way this
type of technology is both priced and used. During the first half of the
financial year, Team Simoco secured the sale of the first UK commercial
terrestrial trunked radio (TETRA) system which is a considerable regulatory
breakthrough and one we hope to exploit over the coming months and years ahead.
Standard product sales grew steadily (some 31% increase) and UK maintenance
services continue to build, showing a 20% improvement compared to the same
period last year. However, the business continues to suffer from slower than
anticipated international systems sales.
Telecoms Services reported a profit before interest and tax for the six month
period ended 30 October 2005 of £0.7 million (2004: £1.0 million), which is
disappointing. Whilst most of the potential international systems bids remain
live and have not been lost to competitors, the overall performance of the
Telecoms Division has been adversely impacted by this delay.
Water Services
I am pleased to report that Water Services has delivered profit before interest
and tax of £2.3 million (2004: £1.5 million) for the six months ended 30 October
2005. This represents a 52% increase against the comparative six month period.
This profit growth arises from each of our operating businesses and includes the
benefit, for the first time, of a positive contribution of £0.4 million from
Atlantic Water Services (AWS).
H2O Water Services (H2O) and AWS, which undertake water meter installation and
small works operations, delivered enhanced performance as a result of the
completion of the integration plan, which has included the centralisation of
operating centres allowing more efficient use of resources. Recently secured
work from Brey Utilities (a consortium to deliver water and wastewater services
across Ministry of Defence sites in the Midlands, Wales and South West) has
aided in widening both our client and geographical base. In addition, we have
been able to exploit other opportunities by leveraging from the skills and
resources of the other companies within Water Services. This, together with
works being undertaken for our other major clients including United Utilities,
Yorkshire Water, South East Water and Scottish Water, provides a firm platform
for future growth.
Shortly after the period end in November 2005, Water Services completed the
acquisition of Kemac Services Limited (Kemac). Kemac provides meter survey and
installation, meter reading, leakage detection, water regulations inspection and
rectification and emergency plumbing services to the water utility market in the
UK. Its customers include a number of major water utilities, whose geographic
territories are complementary to those in which Water Services already operates.
Metro Rod, which provides drain and environmental services, increased commercial
and key client revenues by 10% compared to the comparative period. Performance
within the business also benefited from the implementation of a new control
system within the franchisee network. This has included jointly setting targets
and objectives with franchisees, followed by the monitoring of subsequent
performance in order to stimulate growth. These system improvements are also
expected to benefit the business in the longer term.
Meter U has experienced continued organic revenue and profit growth during the
period. Meter U is now reading around 1.4 million meters per month compared to
approximately 1.0 million meters at the end of the last financial year. Our
relationship with our key client, Siemens, continues to develop. During the
period, 120 gas meter readers have been recruited in the South of England. In
order to facilitate further resource growth, a number of initiatives have been
put in place including the development of links with the armed forces'
redeployment service and the implementation of a new franchising package.
Acquisitions
Three acquisitions have been made during the period.
In July 2005, we acquired the issued share capital of Lamva for net
consideration of £5.7 million. Consideration was settled by £5.2 million in cash
and £0.5 million in shares. This acquisition reinforces 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.
In September 2005, we acquired the issued share capital of Circle Britannia and
Serviceline for cash consideration of £15.2 million.
In September 2005, we also acquired the issued share capital of Hutchison for
initial cash consideration of £1.1 million. Deferred consideration of up to £3.9
million will also be paid in cash, depending on the earnings of Hutchison in the
12 months to 28 February 2007. The total cash consideration payable will not
exceed £5.0 million.
Subsequent to the period under review in November 2005, we acquired the issued
share capital of Kemac for initial cash consideration of £2.0 million. Deferred
consideration of up to £4.0 million will also be paid in cash, depending on the
earnings of Kemac for the 18 months to April 2007. The total cash consideration
payable will not exceed £6.0 million.
Integration of these acquired businesses is progressing according to plan.
Financial Review
Profitability and net margins have continued to improve.
Turnover
Turnover from existing operations at £46.7 million (2004: £41.3 million) is up
12.9% on the comparative six months. Organic growth has been delivered within
all areas of the business, apart from Team Simoco, which has continued to suffer
from slower than anticipated international sales. In addition, acquisitions made
during the period contributed £8.9 million of turnover, giving rise to total
Group turnover for the period of £55.6 million (2004: £41.3 million), an
increase of 34.5%.
Profit on ordinary activities before interest, tax and amortisation of
intangible fixed assets (EBITA)
EBITA increased by 53.3% to £3.8 million (2004: £2.5 million). Acquisitions
contributed £0.8 million to EBITA in the period. Overall EBITA operating margins
were 6.9% compared with 6.0% for the comparative six month period. Margins were
improved within our Electricity and Water divisions - Electricity Services EBITA
margins were 6.9% against 6.8% last year, Water Services margins were 11.8%
against 9.2%. EBITA margins within Telecoms Services reduced from 18.1% to
14.6%. EBITA margins within Facilities Services were 10.6%.
Interest
Interest payable was reduced to £0.3 million (2004: £0.4 million). The reduction
in interest charge arises from the benefit of the original flotation and placing
proceeds together with the cash generation of our operations offset by the cost
of acquisitions made. During the period, the Group has also taken the
opportunity to re-negotiate its banking facilities with HSBC which has resulted
in more favourable borrowing terms. At 30 October 2005, the Group had
significant unutilised banking facilities. Interest cover for the period is 10.5
times compared with 5.8 times last year.
Profit on ordinary activities before tax
Profit on ordinary activities before tax has increased to £3.0 million (2004:
£1.8 million).
Earnings per share
Basic earnings per share at 5.4 pence (2004: 4.6 pence) increased by 17.4% and
adjusted diluted earnings per share at 6.4 pence (2004: 5.3 pence) by 20.7%. In
prior periods, the Group's ESOP had had adequate shares to satisfy all options
vested and also options granted but not yet vested. As a result of options
granted in the period, this is no longer the case and new shares will have to be
either issued or bought on the market to make up this difference.
Dividend
The Board has approved an interim dividend of 0.7 pence (2004: 0.5 pence) per
share payable on 14 February 2006 to shareholders on the register at 27 January
2006. In so doing, the Board has increased the proportion of the anticipated
full year dividend that is payable in respect of the first half. The dividend is
covered six times (2004: seven) by earnings.
Cashflow
Net cash inflows from operating activities increased by £3.3 million to £3.1
million (2004 net cash outflow: £0.2 million). During the period working capital
utilised increased by circa £1.7 million connected principally with the
acquisitions made. In September 2005, the Group placed 7,009,346 new shares at a
price of 214 pence with institutional and other investors to raise net proceeds
of approximately £14.5 million.
Balance Sheet
Net assets have increased to £35.6 million (2004 as restated: £15.2 million),
reflecting the impact of the net placing proceeds (£14.5 million) together with
retained profit for the period and cash generated from the exercise of employee
share options. Net debt is £9.3 million (2004: £7.0 million).
Outlook
We remain pleased with the overall Group performance to date and trading
continues to be in line with our expectations. The Board believes that the long
term prospects for the Group remain strong based on its position in our
expanding markets, driven by our focussed and motivated team.
W S Rigby
Chief Executive Officer
16 January 2006
Consolidated profit and loss account for the six months ended 30 October 2005
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 October 31 October 30 April
2005 2004 2005
Note £'000 £'000 £'000
as restated as restated
Turnover:
- Continuing operations 46,665 41,318 85,508
- Acquisitions 8,915 - -
Group turnover 2, 6 55,580 41,318 85,508
Cost of sales (39,028) (29,113) (59,713)
Gross profit 16,552 12,205 25,795
Administrative expenses (12,726) (9,975) (19,943)
EBITA 3,826 2,495 6,208
Amortisation of intangible fixed assets (567) (265) (356)
Operating profit:
- Continuing operations 2,662 2,230 5,852
- Acquisitions 597 - -
Group operating profit 3,259 2,230 5,852
Profit/(loss) arising on disposal of fixed assets 31 - (77)
Net interest payable (311) (384) (567)
Profit on ordinary activities before tax 2,979 1,846 5,208
Tax on profit on ordinary activities 3 (867) (554) (1,515)
Profit on ordinary activities after tax 2,112 1,292 3,693
Equity minority interests - (5) (5)
Profit for the period 2,112 1,287 3,688
Dividends 4 (633) - (177)
Retained profit for the period 1,479 1,287 3,511
Earnings per share (pence per share)
Basic 5 5.4 4.6 11.6
Diluted 5 5.1 4.4 10.8
Consolidated balance sheet as at 30 October 2005
Unaudited Unaudited Audited
30 October 31 October 30 April
2005 2004 2005
Note £'000 £'000 £'000
as restated as restated
Fixed assets
Development expenditure 815 576 712
Purchased goodwill 29,678 6,329 6,950
Negative goodwill (174) (394) (174)
Intangible fixed assets 30,319 6,511 7,488
Tangible fixed assets 12,702 12,013 11,876
Investments 212 212 212
43,233 18,736 19,576
Current assets
Stock 3,480 2,131 1,773
Debtors 26,701 15,043 16,609
30,181 17,174 18,382
Creditors - amounts falling due within one year (28,007) (15,626) (16,990)
Net current assets 2,174 1,548 1,392
Total assets less current liabilities 45,407 20,284 20,968
Creditors - amounts falling due after (8,739) (3,154) (1,437)
more than one year
Provisions for liabilities and charges (1,076) (1,882) (1,389)
Net assets 35,592 15,248 18,142
Capital and reserves
Called up share capital 4,946 4,213 4,213
Share premium account 27,462 13,116 13,104
Revaluation reserve 1,513 1,724 1,555
Capital redemption reserve 100 100 100
Profit and loss account 1,571 (3,905) (830)
Equity shareholders' funds 7 35,592 15,248 18,142
Consolidated cash flow statement for the six months ended 30 October 2005
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 October 31 October 30 April
2005 2004 2005
Note £'000 £'000 £'000
Net cash inflow/(outflow) from operating activities 8a) 3,069 (214) 4,024
Returns on investments and servicing of finance
Net interest paid (310) (378) (560)
Interest element of finance lease payments (1) (6) (7)
(311) (384) (567)
Taxation (94) (880) (1,483)
Capital expenditure and financial investment
Purchase of tangible owned fixed assets (1,008) (572) (2,308)
Development expenditure (206) (103) (329)
Sale of tangible fixed assets 348 373 1,786
(866) (302) (851)
Acquisitions and disposals
Purchase of trade and assets - net consideration paid - (566) (1,362)
Purchase of subsidiary undertakings (23,422) - -
Net cash acquired with subsidiary undertakings 2,015 - -
(21,407) (566) (1,362)
Equity dividends paid (633) - (177)
Net cash outflow before financing (20,242) (2,346) (416)
Financing
Principal repayment due under finance leases (36) (65) (133)
Sale of investments - own shares 880 459 1,141
Net proceeds from issue of shares 14,526 11,279 11,267
Bank loan repayments (1,672) (9,820) (11,812)
Bank loan advances 9,000 1,750 1,750
22,698 3,603 2,213
Increase in cash 8c) 2,456 1,257 1,797
Notes to the interim report for the six months ended 30 October 2005
1 Basis of accounting
The interim financial statements have been prepared using the same accounting
policies as were used in the Group's statutory financial statements for the year
ended 30 April 2005 except for the adoption of FRS 21 Events After The Balance
Sheet Date and FRS 22 Earnings per Share on 1 May 2005. Comparative numbers have
been restated to reflect the impact of the adoption of FRS 21 and FRS 22 where
appropriate. In addition, FRS 25 Financial Instruments: Disclosure and
Presentation was adopted on 1 May 2005 and considered in determining disclosures
made within the interim financial statements.
The interim financial statements are unaudited. The interim financial statements
for the six months ended 30 October 2005 and for the six months ended 31 October
2004 contained within the interim report do not constitute statutory financial
statements. The figures for the year ended 30 April 2005 have been extracted
from the financial statements for 2005. These financial statements received an
unqualified auditors' report and have been delivered to 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.
3 Taxation
The taxation charge on the profit on ordinary activities has been based upon the
estimated effective tax rate of 29.1% (2004: 30.0%) for the current year.
4 Dividends
The Board has approved an interim dividend and it is proposed that an interim
dividend for the period ended 30 October 2005 of 0.7 pence per share (2004: 0.5
pence), amounting to £310,000 (2004: £177,000), will be paid on 14 February 2006
to those shareholders on the register at 27 January 2006. Dividends amounting to
£36,000 (2004: £34,000) have been waived by the ESOP trust and deducted in
arriving at the aggregate dividend to be paid.
The adoption of FRS 21 has given rise to an increase in retained profit and
shareholders' funds of £614,000 at 30 April 2005. In accordance with FRS 21, the
interim dividend for the period ended 30 October 2005 will be accounted for,
following payment of that dividend, in the second half of the financial year.
5 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 period used in the calculation of basic
earnings per share was as follows:
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 October 31 October 30 April
2005 2004 2005
'000 '000 '000
Weighted average shares for basic earnings per share 38,845 28,253 31,900
5 Earnings per share (continued)
Diluted earnings per share is the basic earnings per share adjusted for the
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:
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 October 31 October 30 April
2005 2004 2005
'000 '000 '000
Weighted average shares for diluted earnings per share 41,246 29,554 34,043
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
items. Adjusted earnings per share have been presented in order that the effects
on reported earnings of the amortisation of intangible fixed assets and non
operating exceptional items can be fully appreciated. Adjusted earnings used in
the calculation of basic and diluted earnings per share reconciles to basic
earnings as follows:
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 October 31 October 30 April
2005 2004 2005
£'000 £'000 £'000
Basic earnings 2,112 1,287 3,688
Non operating exceptional items (31) - 77
Amortisation of intangible fixed assets 567 265 356
Adjusted earnings 2,648 1,552 4,121
Earnings per share (pence per share)
Basic 5.4 4.6 11.6
Diluted 5.1 4.4 10.8
Adjusted earnings per share (pence per share)
Basic 6.8 5.5 12.9
Diluted 6.4 5.3 12.1
6 Segmental analysis
The turnover for the period was derived from the Group's principal activities
and is attributable to the following markets:
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 October 31 October 30 April
2005 2004 2005
£'000 £'000 £'000
By destination
UK 54,570 40,037 83,830
Continental Europe 667 700 853
Rest of the World 343 581 825
55,580 41,318 85,508
6 Segmental analysis (continued)
Turnover for the period is derived from the Group's principal activities as
follows:
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 October 31 October 30 April
2005 2004 2005
£'000 £'000 £'000
Electricity Services 25,352 17,860 36,742
Facilities Services 3,865 - -
Telecoms Services 6,396 6,855 13,493
Water Services 19,837 16,500 35,045
Head office 130 103 228
55,580 41,318 85,508
Profit before tax is derived from the Group's principal activities as follows:
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 October 31 October 30 April
2005 2004 2005
£'000 £'000 £'000
Electricity Services 1,601 1,161 2,780
Facilities Services 295 - -
Telecoms Services 687 1,043 2,373
Water Services 2,276 1,496 2,937
Head office (1,600) (1,470) (2,238)
3,259 2,230 5,852
Non operating exceptional items 31 - (77)
Net interest payable (311) (384) (567)
2,979 1,846 5,208
7 Reconciliation of movement in equity shareholders' funds
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 October 31 October 30 April
2005 2004 2005
£'000 £'000 £'000
as restated as restated
Profit for the period 2,112 1,287 3,688
Dividends (633) - (177)
Retained profit for the period 1,479 1,287 3,511
Proceeds from sale of own shares 880 458 1,141
Issue of shares 15,565 12,636 12,636
Costs of share issue (474) (1,356) (1,369)
Net addition to equity shareholders' funds 17,450 13,025 15,919
Opening equity shareholders' funds 18,142 2,223 2,223
Closing equity shareholders' funds 35,592 15,248 18,142
8 Notes to the cash flow statement
8a) Reconciliation of operating profit to net cash inflow/(outflow)
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 October 31 October 30 April
2005 2004 2005
£'000 £'000 £'000
Operating profit 3,259 2,230 5,852
Depreciation of tangible fixed assets 925 865 1,720
Amortisation of negative goodwill - - (220)
Amortisation of intangible fixed assets 567 265 576
(Increase)/decrease in stocks (749) 233 742
Increase in debtors (3,479) (705) (2,271)
Increase/(decrease) in creditors 2,546 (3,102) (2,375)
Net cash inflow/(outflow) from operating activities 3,069 (214) 4,024
8b) Analysis of net debt
At At
1 May Non cash 30 October
2005 Cash flows movements 2005
£'000 £'000 £'000 £'000
Bank overdraft (2,713) 2,456 - (257)
Increase/(decrease) in cash during the (2,713) 2,456 - (257)
period
Bank loans due within one year (243) (24) - (267)
Bank loans due after one year (1,429) (7,304) - (8,733)
Finance leases due within one year (55) 34 (1) (22)
Finance leases due after one year (8) 2 - (6)
Net debt (4,448) (4,836) (1) (9,285)
8c) Reconciliation of net cash inflow to movement in net debt
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 October 31 October 30 April
2005 2004 2005
£'000 £'000 £'000
Increase in cash in the year 2,456 1,257 1,797
Cash inflow from increase in debt and lease financing (22,698) (3,603) (2,213)
Change in net debt resulting from cash flows (20,242) (2,346) (416)
Net proceeds received from share issue 14,526 11,279 11,267
Sale of investments - own shares 880 459 1,141
New and acquired finance leases (1) (36) (36)
Net debt at 1 May (4,448) (16,404) (16,404)
Net debt at 30 October (9,285) (7,048) (4,448)
9 Availability of interim report
The interim report will be sent to all shareholders on 17 January 2006. Copies
may be obtained from the Company Secretary at PO Box 111, Bradford Road, Morley,
Leeds LS27 0YE for a period of one month from today's date.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 10th January 2025
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