Interim Results

Trio Holdings PLC 2 May 2002 2 May 2002 TRIO HOLDINGS PLC Interim Report for the six months ended 31 March 2002 CHAIRMAN'S STATEMENT Highlights for the six months ended 31 March 2002: Profit before tax £2.206 million (2001 - £0.878 million) Interim dividend 0.25p per share (2001 - 0.15p per share) Net Assets at 31 March 2002 of £10.003 million (2001 - £8.007 million) Cash balances £10.578 million (2001 - £7.078 million) Turnover £17.605 million (2001 - £16.463 million) I am very pleased to report a profit before taxation for the six months of £2.206 million, derived from increased turnover of £17.605 million. This profit results in earnings per share of 1.44p, a substantial increase over the corresponding period last year. In my statement on 11 December last with the preliminary announcement of results for the year to 30 September 2001, I advised that the Board would look for continuing dividend improvement if business buoyancy was maintained. The Board has indeed agreed to still further enhance the traditional yield to shareholders. The interim dividend is increased to 0.25p per share, which will be paid on 12 June 2002 to shareholders on the register on 17 May 2002. Further I highlight that, after provision for this substantially increased interim dividend, net assets have exceeded a milestone £10 million at 31 March, and include very considerable cash balances of over £10.5 million. Buoyant trading conditions prevailed throughout the calendar year 2001. These continued through most of the Group's half-year ended 31 March 2002, although our markets moderated slightly towards the end of the period under review as interest rate volatility declined. An exciting exercise for our senior management and staff over the next few months is a re-location to new premises in London, which I now advise is in hand. Our underlying operating company, Martin Brokers, has been at the present offices opposite St Paul's Cathedral for over twenty years but the landlords have long contemplated the re-development of the site. This, at last, is to become a reality. Therefore after a careful search the Company has negotiated a lease on some 25,000 sq.ft. in the Atrium Building of Cannon Bridge in Dowgate Hill, London EC4, and appropriate 'fit-out' work commenced this week for a proposed occupation date at the end of August, commensurate with the end of the present Deans Court lease at the end of September. Moving a money broking company is demanding, in view of the huge communications and information technology infrastructure inherent to the business. However this re-location will enable us to enjoy the 'open-plan' flexible dealing room concept, utilising modern structured cabling, flood wiring, modular dealing desks, an integrated fully digital dealing platform and faster network technology. Such flexibility is vital to Trio to help retain voice broking pre-eminence in substantially all our key product areas, and to continue to be able to adapt to the highly competitive and constantly evolving market place in global money, securities and derivatives trading. We believe many benefits will accrue from the 'single trading floor' environment, denied until now to our brokers, particularly our renowned 'arbitrage' team, from the inherent access to, and awareness of, complimentary markets. Adding to the stable of modest non-core investments our long-standing wholly owned subsidiary The Network Group, an electronics design and manufacturing company, after over a year of research and development, has launched an innovative and unique Wireless Magnetic Fire Door Retainer. This product, Sureclose, targets institutions such as nursing/residential care homes, museums, galleries, schools, hospitals, hotels and offices. Early responses to the launch are most encouraging. This Group is in a challenging, competitive and consolidating business sector, and the cyclical markets in which we operate are perhaps showing only slightly reduced recent activity after a robust and prolonged period. The financial position of Trio Holdings PLC is strong, our staff and high calibre operating management are outstanding, and my colleagues and I are dedicated to continuing further enhancement of the return to shareholders, underpinned by a strong balance sheet with substantial liquidity. Enquiries to: DAVID HAGAN Executive Chairman, TRIO Holdings PLC Tel: 020 7489 8033 TRIO HOLDINGS PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT For the six months ended 31 March 2002 (unaudited) 6 months to 6 months to Year to 31 March 31 March 30 Sept 2002 2001 2001 £000s £000s £000s Turnover 17,605 16,463 33,817 Net recurring operating expenses (15,662) (15,346) (30,787) ------------ ------------ ------------ Operating profit before exceptional item 1,943 1,117 3,030 Exceptional item - (340) (340) ------------ ------------ ------------ Group operating profit 1,943 777 2,690 Share of loss of associated company (14) (14) (25) ------------ ------------ ------------ Total operating profit 1,929 763 2,665 Net interest receivable less payable 200 115 251 Profit on sale of investment 77 - - ------------ ------------ ------------ Profit on ordinary activities before taxation 2,206 878 2,916 Taxation UK (1,003) (661) (1,589) Overseas - - 60 ------------ ------------ ------------ Profit for the period 1,203 217 1,387 Dividends paid and proposed (209) (125) (292) ------------ ------------ ------------ Retained profit for the period transferred to reserves 994 92 1,095 ======= ======= ======= Earnings per share 1.44p 0.26p 1.66p ======= ======= ======= Dividends per share 0.25p 0.15p 0.35p ======= ======= ======= There were no discontinued operations in the current period STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES Profit for the period 1,203 217 1,387 Foreign exchange translation differences on foreign currency investment in subsidiaries (4) (9) (6) ------------ ------------ ------------ Total recognised gains and losses 1,199 208 1,381 ======= ======= ======= RECONCILIATION OF MOVEMENT IN EQUITY SHAREHOLDERS' FUNDS Profit for the period 1,203 217 1,387 Dividends paid and proposed (209) (125) (292) ------------ ------------ ------------ 994 92 1,095 Other recognised gains and losses (4) (9) (6) ------------ ------------ ------------ Net addition to equity shareholders' funds 990 83 1,089 Opening equity shareholders' funds 9,013 7,924 7,924 ------------ ------------ ------------ Closing equity shareholders' funds 10,003 8,007 9,013 ======= ======= ======= TRIO HOLDINGS PLC CONSOLIDATED BALANCE SHEET as at 31 March 2002 (unaudited) 31 March 30 Sept 31 March 2002 2001 2001 £000s £000s £000s Fixed Assets Tangible assets 658 517 679 Investments 57 77 32 ------------ ------------ ------------ 715 594 711 ------------ ------------ ------------ Current Assets Stocks 75 74 91 Debtors 5,486 6,243 6,159 Cash 10,578 8,110 7,078 ------------ ------------ ------------ 16,139 14,427 13,328 Creditors: due within one year (6,722) (5,869) (4,847) ------------ ------------ ------------ Net Current Assets 9,417 8,558 8,481 ------------ ------------ ------------ Creditors: due after more than one year (128) (138) (1,184) Equity minority interests (1) (1) (1) ------------ ------------ ------------ Net Assets 10,003 9,013 8,007 ======= ======= ======= Capital and Reserves Share capital 4,174 4,174 4,174 Distributable reserves 2,474 2,474 2,474 Profit and loss account 3,355 2,365 1,359 ------------ ------------ ------------ Equity Shareholders' Funds 10,003 9,013 8,007 ======= ======= ======= NOTES 1. Profit and Loss Account There were no businesses acquired or discontinued during the period. The result arises from continuing operations. The results in foreign currencies are translated into Sterling at the average exchange rates ruling in the period. 2. Taxation Taxation has been estimated on the basis that the six month period forms an integral part of an annual reporting period. 3. Earnings per share The profit per share is based on the net profit after taxation attributable to ordinary shareholders and on a weighted average of the number of shares in issue in the period: 83,484,325 (2001: 83,484,325). 4. Creditors under one year This figure includes the loan from Nittan Capital Holding Company Limited of £1 million repayable in one amount in August 2002. 5. Accounts The interim results have been prepared in accordance with accounting policies set out in the accounts for the year ended 30 September 2001 but they have not been audited. The financial information in this report does not constitute full accounts as defined by Section 240 of the Companies Act 1985. The figures and the financial information for the year ended 30 September 2001 have been compiled from an extract of the latest published accounts and do not constitute statutory accounts for the year. Those accounts have been delivered to the Registrar of Companies and included the report of the independent auditors which was unqualified and did not contain a statement under either Section 237(2) or Section 237(3) of the Companies Act 1985. TRIO HOLDINGS PLC CONSOLIDATED CASH FLOW STATEMENT For the six months ended 31 March 2002 (unaudited) 6 months to Year to 6 months to 31 March 30 Sept 31 March 2002 2001 2001 £000s £000s £000s Net cash inflow from operating activities 3,468 2,579 640 Returns on investments and servicing of finance 140 278 132 Taxation (725) (1,008) (270) Capital expenditure and financial investment (251) (104) (42) Acquisitions and disposals 83 2,559 2,615 Dividends paid (167) (626) (501) ------------ ------------ ------------ Net cash flow before financing 2,548 3,678 2,574 Financing (80) (143) (71) ------------ ------------ ------------ Increase in cash in the period 2,468 3,535 2,503 ======= ======= ======= Reconciliation of net cash flow to movement in net funds 6 months to Year to 6 months to 31 March 30 Sept 31 March 2002 2001 2001 £000s £000s £000s Increase in cash in the period 2,468 3,535 2,503 Cash inflow from decrease in debt and lease financing 80 143 71 ------------ ------------ ------------ Change in net funds resulting from cash flows 2,548 3,678 2,574 New finance leases (51) 5 (19) ------------ ------------ ------------ Movement in net funds in the period 2,497 3,683 2,555 Opening net funds 6,965 3,282 3,282 ------------ ------------ ------------ Closing net funds 9,462 6,965 5,837 ======= ======= ======= Reconciliation of operating profit to net cash inflow from operating results 6 months to Year to 6 months to 31 March 30 Sept 31 March 2002 2001 2001 £000s £000s £000s Operating profit 2,020 2,690 777 Depreciation charges 161 406 207 Decrease/(increase) in debtors 740 (1,054) (962) Increase in creditors 552 522 631 Increase/(decrease) in stock (1) 14 (3) Exchange rate movements (4) 1 (10) ------------ ------------ ------------ Net cash inflow from operating activities 3,468 2,579 640 ======= ======= ======= TRIO HOLDINGS PLC REVIEW REPORT OF THE INDEPENDENT AUDITORS Introduction We have been instructed by the company to review the financial information for the six months ended 31 March 2002 which comprises the profit and loss account, the balance sheets, the cash flow statement and related notes 1 to 5. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the Listing Rules of the Financial Services Authority which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with the guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of group management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with United Kingdom auditing standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 31 March 2002. Deloitte & Touche Stonecutter Court Chartered Accountants 1 Stonecutter Street 2 May 2002 London, EC4A 4TR This information is provided by RNS The company news service from the London Stock Exchange

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