Interim Results

Northgate PLC 11 January 2005 11 January 2005 NORTHGATE PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2004 Northgate plc ('Northgate', the 'Company' or the 'Group'), the UK's leading specialist in light commercial vehicle hire, announces its interim results for the half year ended 31 October 2004. Highlights: â€¢Turnover, including the contribution from the now wholly owned Spanish subsidiary Fualsa, increased by 19.3% to Â£222.6m (2003 - Â£186.5m excluding Fualsa turnover). â€¢Pre-tax profit before goodwill amortisation up by 23.2% to Â£27.8m (2003 - Â£22.6m). â€¢Earnings per share up by 15.9% to 29.1p (2003 - 25.1p). â€¢Dividend increased by 14.3% to 8.0p (2003 - 7.0p). â€¢Fleet size of 52,000 vehicles in the UK and 17,000 vehicles in Spain. â€¢Utilisation in the UK and Spain improved to over 90% and 89% respectively. â€¢Martin Ballinger appointed as new Chairman following retirement of Michael Waring today. Michael Waring, Chairman, commented: 'It is gratifying to be able to report strong results from both our UK and Spanish businesses. The UK has seen good fleet growth and utilisation over our targeted level of 90%. In the last six months Fualsa has continued to exceed our expectations with fleet growth of over 13%, utilisation over 89% and two new locations opened. Two further locations are expected to be opened within the next month. We continue to believe that the UK market has good potential for growth and that through Fualsa we have an excellent opportunity for significant expansion in Spain. Since the end of the period, trading has remained strong and the Board is confident of the outcome for the full financial year. We expect to continue to make good progress towards the achievement of the objectives set out in our three year Strategy for Growth.' Full statement and results attached. For further information, please contact: Northgate plc 01325 467558 Steve Smith, Chief Executive Gerard Murray, Finance Director Hogarth Partnership Limited 020 7357 9477 Andrew Jaques Barnaby Fry Notes to Editors: Northgate plc rents light commercial vehicles and sells a range of fleet products to businesses via a network of hire companies. Their NORFLEX product gives businesses access to a flexible method to acquire as many commercial vehicles as they require. Further information regarding Northgate plc can be found on the Company's website: http://www.northgateplc.com CHAIRMAN'S STATEMENT Introduction We are now 18 months through our Strategy for Growth for the three years to 30 April 2006, details of which were set out in our 2003 Report and Accounts. The six months to 31 October 2004 have continued the excellent start we reported for the year to 30 April 2004, with earnings per share increasing by 15.9% to 29.1p (2003 - 25.1p). This increase is driven by a number of factors including the increase in the contribution from Fualsa, our Spanish operation which became wholly owned on 3 May 2004, the high level of fleet growth in both the UK and Spain and the improved profit from UK used vehicle sales. As a result of this fleet growth we have further consolidated our position as market leader in the UK and made progress towards achieving the same status in Spain. Results Turnover, including the contribution from the wholly owned Spanish subsidiary Fualsa, increased by 19.3% to Â£222.6m (2003 - Â£186.5m, excluding Fualsa turnover). Profit before goodwill amortisation of Â£0.51m (2003 - Â£0.16m) and taxation increased by 23.2% to Â£27.8m (2003 - Â£22.6m). Earnings per share increased by 15.9% to 29.1p (2003 - 25.1p) reflecting the increase in profit before taxation and the full period effect of 3.04m new shares issued as a result of a 5% Cash Placing on 14 January 2004. The composition of the Group's UK turnover and operating profit as between hire activities and used vehicle sales, is set out below:- United Kingdom 31 October 2004 2003 Â£000 Â£000 Turnover Hire 141,254 125,941 Used vehicle sales 46,619 60,591 UK Turnover 187,873 186,532 Operating profit Hire 29,510 26,093 Used vehicle sales 2,152 1,975 Goodwill amortisation (179) (38) UK operating profit 31,483 28,030 Operating Margins (excluding goodwill) UK overall 16.9% 15.0% Hire 20.9% 20.7% Used vehicle sales 4.6% 3.3% UK hire turnover increased by 12.2% reflecting the increase in the UK fleet to 52,000 (2003 - 45,700). Margins have been maintained as the network has been expanded through branch openings and selective acquisitions. The focus on margin remains a crucial element for the remaining period of our three year Strategy for Growth. Fualsa 31 October Company Joint venture (100%) (100%) (40%) 2004 2003 2003 Â£000 Â£000 Â£000 Turnover Hire 25,828 20,615 8,246 Used vehicle sales 8,891 9,005 3,602 Fualsa Turnover 34,719 29,620 11,848 Operating profit Hire 5,727 3,800 1,520 Used vehicle sales 417 1,771 708 Goodwill amortisation (335) - (118) Fualsa operating profit 5,809 5,571 2,110 Operating Margins (excluding goodwill) Fualsa overall 17.7% 18.8% 18.8% Hire 22.2% 18.4% 18.4% Used vehicle sales 4.7% 19.7% 19.7% This is the first period that Fualsa has been reported on as a wholly owned subsidiary. The reported operating margin of Fualsa excluding goodwill amortisation has reduced to 17.7% (2003 - 18.8%) reflecting the non-recurring profits on the disposal of vehicles realised in the prior period of Â£1.43m, of which the Group's share of the joint venture was Â£0.57m. These vehicles acquired before 1 January 2001 had excessive depreciation rates applied to them. The table above sets out the turnover and operating profit for Fualsa as a whole for both the current and prior periods and for our interest in it as a joint venture for the prior period only. The joint venture amounts are shown as 40% of those of the company along with the charge for goodwill. Following the acquisition of the remaining 60% of Fualsa on 3 May 2004, the Group's borrowings now reflect UK borrowings, the consideration for this acquisition (paid and deferred) and the first time consolidation of the underlying debt of Fualsa. The net debt of the Group as at 31 October 2004 totals Â£410m (2003 - Â£271m) with the majority of the increase compared to the prior year arising from the first time consolidation of Fualsa. The strong fleet growth in both Spain and the UK has also contributed to this increase. Consequently, the Group's gearing has increased to 218.0% (2003 - 171.8%). The prior year comparative for gearing has been amended from 164.9% to reflect our decision that the gearing ratio going forward will be calculated as net debt (including cash balances) as a percentage of shareholders' funds but after the deduction of goodwill. Following the acquisition of Fualsa, this new basis for calculating shareholders' funds materially changes the gearing ratio. Whilst gearing has increased, the Group's interest cover has remained stable at 3.7 times (2003 - 3.8 times). The source of funding for the Group has historically been a mixture of hire purchase contracts and bank loans. With the Fualsa acquisition introducing further sources of funding, we have taken the opportunity to rationalise the loan arrangements of the Group. On 10 January 2005 the Company entered into a series of unsecured, revolving, bilateral facilities with major UK and European banks to provide an aggregate facility to the Group of Â£565m over one, three and five year terms. These new facilities will replace those facilities that existed at 31 October 2004. Dividend Following the change last year to a dividend profile of broadly a 40% interim and a 60% final dividend, the Board has declared an interim dividend of 8.0p (2003 - 7.0p) per share, payable on 11 February 2005 to shareholders on the register as at the close of business on 21 January 2005. Operational Review United Kingdom and Republic of Ireland In the six months to 31 October 2004, we are pleased to report very strong demand for our product Norflex. This demand has resulted in our fleet increasing from 47,400 at the end of April to 52,000 at 31 October 2004 with UK hire turnover increasing by 12.2%. The acquisition of Foley Self Drive Limited on 1 August 2004 accounted for 850 vehicles of this increase. Our hire locations continue to expand to fleet sizes greater than anticipated in our strategic plan and, as a consequence, we are unlikely to need to open the planned 100 locations by April 2006. Since 1 May 2004, we have opened three new sites and, including those gained through the acquisition of Foley, now operate from 76 locations. Notwithstanding the growth in the fleet, the strong demand for our product has also resulted in utilisation being just over our targeted level of 90% throughout the period. Hire rates have softened slightly as a result of continued competitor activity in the rental sector and our focus on fleet growth. As we indicated in the Operational Review of our 2004 Report and Accounts, rising interest rates should give us the opportunity to increase our hire rates or alternatively win business from contract hire competitors. Our decision was to focus on the latter as evidenced by fleet growth of 8%, excluding the acquisition of Foley, in the six months to 31 October 2004. As contract hire companies tend to operate at rates at the bottom end of our range the impact of this new business has been to slightly reduce our average hire rate. The combination of the factors above has resulted in an operating margin (excluding goodwill amortisation) consistent with our expectations for the hire companies of 20.9% (2003 - 20.7%). Used vehicle sales turnover declined to Â£46.6m (2003 - Â£60.6m), as a result of a reduction in the number of vehicles sold to 7,800 vehicles (2003 - 10,900). The number of vehicles sold in each period is driven by both planned disposals and our management of utilisation. The operating margin on used vehicle sales improved to 4.6 % (2003 - 3.3%) giving rise to an improved contribution per vehicle sold of Â£276 (2003 - Â£181). In November 2003 the Group opened a remarketing centre in Carnaby with an objective to increase the proportion of retail and semi retail vehicle sales which attract slightly higher margins. This proportion increased to 11% (2003 - 4%) of total vehicles sold in the six months to 31 October 2004. The total volume of vehicle sales is expected to be higher in the second half of the financial year. Given the fact that the number of semi retail and retail vehicles are to a great extent limited by the supply of suitable vehicles, the proportion of total sales represented by these vehicles will be lower for the full financial year. We therefore expect the profit per vehicle to fall in the second half of the year and be more in line with prior periods. Continental Europe Following the exercise of our options on 3 May 2004 to acquire the remaining 60% of the equity in Fualsa, this is the first period where we report on Fualsa as a subsidiary undertaking. Since 1 May 2004, the vehicle fleet has grown by over 13% to reach 17,000 vehicles at the end of October 2004. When compared to the fleet at 31 October 2003, the annual growth rate of 26% is very satisfactory indeed. Since the start of the financial year, new locations have been opened in La Coruna and Murcia with two more locations expected to open in Cadiz and Badajoz later this month. These new openings will give us a network of 14 locations to serve our customers across Spain. Utilisation has continued to improve and averaged over 89% during the period, achieving our 90% objective for the first time in early September 2004. Fualsa hire turnover has increased by 25.3% in line with fleet growth. Hire operating margin (excluding goodwill amortisation) has improved to 22.2% (2003 - 18.4%) reflecting the fact that the vast majority of vehicles on the fleet in the current period were acquired after 1 January 2001 and, as a result, have had lower rates of depreciation applied to them. This has had the effect of improving operating margins for hire and at the same time generating more sensible levels of profit per vehicle on disposal of Â£219 (2003 - Â£803), broadly in line with vehicle disposal profits achieved in the UK. Turnover from Fualsa vehicle sales declined marginally to Â£8.9m (2003 - Â£9.0m) on slightly reduced sales of 1,900 vehicles (2003 - 2,200). Personal Note Following the publication of these results I shall be stepping down as Chairman and as a Director of your Company. Martin Ballinger, previously Chief Executive of Go-Ahead Group PLC, will be taking over as non-executive Chairman. Northgate's ethos and culture of service to its customers, the main drivers for its success to date, are deeply entrenched throughout the Company and its employees. It has a strong and committed management team under the leadership of Steve Smith, the CEO, and a dedicated staff who strive to provide first class service to our customers. On behalf of shareholders, I wish to thank them all for their efforts and their support over the years. I also wish to thank the members of the Board for their support and in particular Ron Williams, the deputy Chairman, whose wisdom and experience have been invaluable during the period in which Northgate's market capitalisation has grown from Â£170 million to over Â£500 million. There are many unsung heroes at Northgate who diligently perform the less than glamorous tasks behind the scenes without public recognition. I would therefore like to take this, my final opportunity, to thank each and every one of them for their contribution to Northgate's success. Finally I wish Martin Ballinger, the Board, the management team and all our staff every success for the future and I thank shareholders for their support over the years. Current Trading and Outlook We are encouraged by the continued strong growth in our core UK hire business, confirming our view that the UK market is by no means mature and that plenty of opportunity still exists to grow our business. Furthermore, the investment being made to position Fualsa in the Spanish commercial vehicle rental market for the future is proceeding according to plan. Our experience to date has confirmed our opinion that future prospects for the development of our business in Spain are significant. Since the end of the period, trading has remained strong and the Board is confident of the outcome for the full financial year. We expect to continue to make good progress towards the achievement of our objectives set out in our three year Strategy for Growth. MICHAEL WARING Chairman Consolidated Profit and Loss Account for the six months ended 31 October 2004 Six months Six months Year to to to 31.10.04 31.10.03 30.4.04 (Unaudited) (Unaudited) (Audited) Notes Â£000 Â£000 Â£000 Turnover - continuing operations 187,873 186,532 355,624 - acquisitions 34,719 - - - joint venture - 11,848 23,461 -------- -------- -------- Turnover : Group and share of joint venture 222,592 198,380 379,085 Less : share of joint venture's turnover - (11,848) (23,461) -------- -------- -------- Group turnover 1 222,592 186,532 355,624 -------- -------- -------- Cost of sales - continuing operations (134,914) (137,819) (261,255) - acquisitions (23,073) - - -------- -------- -------- Total cost of sales (157,987) (137,819) (261,255) -------- -------- -------- Gross profit - continuing operations 52,959 48,713 94,369 - acquisitions 11,646 - - -------- -------- -------- Total gross profit 64,605 48,713 94,369 Administrative expenses - continuing operations (21,297) (20,645) (38,552) - acquisitions (5,502) - - - goodwill amortisation (514) (38) (71) -------- -------- -------- Total administrative expenses (27,313) (20,683) (38,623) Group operating profit -------- -------- -------- - continuing operations 31,483 28,030 55,746 - acquisitions 5,809 - - -------- -------- -------- Total operating profit 1 37,292 28,030 55,746 -------- -------- -------- Share of joint venture's operating profit - 2,228 4,578 Amortisation of goodwill on joint venture investment - (118) (236) -------- -------- -------- Profit on ordinary activities before interest and taxation 37,292 30,140 60,088 Interest payable, net - group (10,032) (7,105) (14,069) - joint venture - (641) (1,286) -------- -------- -------- Profit on ordinary activities before taxation 27,260 22,394 44,733 Tax on profit on ordinary activities - group 2 (8,500) (6,668) (12,914) - joint venture - (446) (389) -------- -------- -------- Profit for the financial period 18,760 15,280 31,430 Dividends - non equity Preference shares (13) (13) (25) - equity Ordinary shares (5,136) (4,233) (11,039) -------- -------- -------- Profit transferred to reserves 13,611 11,034 20,366 -------- -------- -------- Earnings per Ordinary share - basic 3 29.1p 25.1p 50.9p Diluted earnings per Ordinary share 3 28.8p 25.0p 50.8p Dividends per Ordinary share 8.0p 7.0p 17.6p Consolidated Balance Sheet 31 October 2004 31.10.04 31.10.03 30.4.04 As As restated restated (Unaudited) (Unaudited) (Audited) Notes Â£000 Â£000 Â£000 Fixed assets Intangible assets 15,679 1,344 1,981 Tangible assets Vehicles for hire 516,697 374,325 379,346 Other fixed assets 33,633 23,271 23,342 -------- -------- ------- 566,009 398,940 404,669 -------- -------- ------- Investment in joint venture: -------- -------- ------- Share of gross assets - 45,823 50,389 Share of gross liabilities - (37,250) (40,215) Goodwill on investment less amortisation - 4,411 4,293 -------- -------- ------- - 12,984 14,467 -------- -------- ------- Total fixed assets 566,009 411,924 419,136 -------- -------- ------- Current assets Stocks 18,773 9,666 15,285 Debtors 87,257 62,141 56,382 Cash at bank and in hand 22,570 22,787 46,160 -------- -------- ------- 128,600 94,594 117,827 -------- -------- ------- Creditors: amounts falling due within one year 200,926 181,940 133,756 -------- -------- ------- Net current liabilities (72,326) (87,346) (15,929) -------- -------- ------- Total assets less current liabilities 493,683 324,578 403,207 Creditors: amounts falling due after more than one year 6 280,749 154,005 208,079 Provisions for liabilities and charges 9,302 7,005 6,821 -------- -------- ------- 203,632 163,568 188,307 -------- -------- ------- Capital and reserves Called up share capital 3,706 3,550 3,702 Share premium account 62,201 45,854 61,829 Revaluation reserve 602 23 23 Merger reserve 4,721 4,721 4,721 Own shares held 8 (1,515) (775) (1,330) Profit and loss account 133,917 110,195 119,362 -------- -------- ------- Shareholders' funds 5 203,632 163,568 188,307 -------- -------- ------- Attributable to equity shareholders 203,132 163,068 187,807 Attributable to non-equity shareholders 500 500 500 -------- -------- ------- 203,632 163,568 188,307 -------- -------- ------- Consolidated Cash Flow Statement for the six months ended 31 October 2004 Six months Six months Year to to to 31.10.04 31.10.03 30.4.04 As As restated restated (Unaudited) (Unaudited) (Audited) Notes Â£000 Â£000 Â£000 Cash inflow from operating activities 4 92,019 74,553 157,203 Returns on investments and servicing of finance (9,357) (7,157) (14,679) Taxation (7,775) (4,490) (11,279) Capital expenditure and financial investment Purchase of vehicles for hire (134,107) (113,725) (215,129) Sale of vehicles for hire 49,183 58,280 106,771 Other items, net (2,140) (3,131) (4,333) -------- -------- -------- Net cash outflow from capital expenditure and financial investment (87,064) (58,576) (112,691) -------- -------- -------- Acquisitions 6 (19,360) - (1,092) Equity dividends paid (6,764) (6,754) (11,005) -------- -------- -------- Cash (outflow) inflow before use of liquid resources and financing (38,301) (2,424) 6,457 Management of liquid resources Cash withdrawn from (placed on) deposit - 18 (205) Financing Issue of Ordinary shares (net of expenses) 376 224 16,351 Purchase of investments (net) - purchase of own shares 8 - (526) (1,081) Increase (decrease) in borrowings 47,136 (804) 93,833 Capital element of vehicle loans and hire purchase payments (124,030) (116,910) (263,310) Cash inflow from vehicle loans and hire purchase agreements 78,680 102,260 169,577 -------- -------- -------- Net cash inflow (outflow) from financing 2,162 (15,756) 15,370 -------- -------- -------- (Decrease) increase in cash for the period (36,139) (18,162) 21,622 -------- -------- -------- Reconciliation of Net Cash Flow to Movement in Net Debt for the six months ended 31 October 2004 Six months Six months Year to to to 31.10.04 31.10.03 30.4.04 (Unaudited) (Unaudited) (Audited) Â£000 Â£000 Â£000 (Decrease) increase in cash for the period (36,139) (18,162) 21,622 Financing (Increase) decrease in borrowings (47,136) 804 (93,833) Capital element of vehicle loans and hire purchase payments 124,030 116,910 263,310 Cash inflow from vehicle loans and hire purchase agreements (78,680) (102,260) (169,577) Cash(withdrawnfrom) placed on deposit - (18) 205 -------- -------- ------- Change in net debt resulting from cash flows (37,925) (2,726) 21,727 Vehicle loans and hire purchase agreements acquired with subsidiary undertakings (66,808) - (3,271) Other net debt acquired with subsidiary undertakings (28,144) - - New vehicle loans (13,528) - - Deferred consideration in respect of Fualsa (Note 6) (10,354) - - Foreign exchange differences (3,108) 52 96 -------- -------- ------- Movement in net debt for the period (159,867) (2,674) 18,552 Opening net debt (249,826) (268,378) (268,378) -------- -------- ------- Closing net debt (409,693) (271,052) (249,826) -------- -------- ------- Statement of Total Recognised Gains and Losses for the six months ended 31 October 2004 Six months Six months Year to to to 31.10.04 31.10.03 30.4.04 (Unaudited) (Unaudited) (Audited) Â£000 Â£000 Â£000 Profit for the financial period 18,760 15,280 31,430 Revaluation of land 579 - - Foreign exchange differences 944 (125) (290) -------- -------- ------- Total recognised gains and losses for the financial period 20,283 15,155 31,140 -------- -------- ------- Unaudited Notes 1. Segmental analysis Six months Six months Year to to to 31.10.04 31.10.03 30.4.04 (Unaudited) (Unaudited) (Audited) Â£000 Â£000 Â£000 United Kingdom and Republic of Ireland 187,873 186,532 355,624 Spain 34,719 - - -------- -------- -------- Total turnover 222,592 186,532 355,624 -------- -------- -------- United Kingdom and Republic of Ireland 31,483 28,030 55,746 Spain 5,809 - - -------- -------- -------- Total operating profit 37,292 28,030 55,746 -------- -------- -------- Prior to the acquisition of Furgonetas de Alquiler SA ('Fualsa') on 3 May 2004 (see Note 6), all turnover from the joint venture arose in Spain. 2. Tax The charge for taxation for the six months to 31 October 2004 is based on the estimated effective rate for the year. 3. Earnings per share The calculation of basic earnings per Ordinary share in respect of the six months to 31 October 2004 is based on the profit attributable to equity shareholders of Â£18,747,000 (31 October 2003 - Â£15,267,000) (30 April 2004 - Â£31,405,000) and the weighted average of 64,446,161 (31 October 2003 - 60,809,093) (30 April 2004 - 61,647,279) Ordinary shares in issue (excluding those shares held by an employee trust in connection with the Group's various share schemes). Diluted earnings per Ordinary share have been calculated on the basis of earnings described above and assume that 382,037 shares (31 October 2003 - nil) (30 April 2004 - nil), remaining exercisable under the Group's various share schemes, had been fully exercised at the commencement of the relevant period, such that the weighted average number of shares is 64,982,443 (31 October 2003 - 60,947,057) (30 April 2004 - 61,817,783), including 154,245 shares (31 October 2003 - 137,964) (30 April 2004 - 170,504) held by an employee trust in connection with the Group's various share schemes. 4. Reconciliation of operating profit to net cash inflow from operating activities Six months Six months Year to to to 31.10.04 31.10.03 30.4.04 (Unaudited) (Unaudited) (Audited) Â£000 Â£000 Â£000 Group operating profit 37,292 28,030 55,746 Depreciation 63,243 48,706 98,547 Goodwill amortisation 514 38 71 Loss (profit) on sale of equipment and other fixed assets 19 (1) (63) (Increase) decrease in stocks (668) 659 (4,922) (Increase) decrease in debtors (828) (4,773) 1,450 (Decrease) increase in creditors (7,553) 1,894 6,374 -------- -------- -------- Net cash inflow from operating activities 92,019 74,553 157,203 -------- -------- -------- 5. Reconciliation of movements in shareholders' funds Six months Six months Year to to to 31.10.04 31.10.03 30.4.04 As As restated restated (Unaudited) (Unaudited) (Audited) Â£000 Â£000 Â£000 Profit for the financial period 18,760 15,280 31,430 Dividends (5,149) (4,246) (11,064) -------- -------- -------- 13,611 11,034 20,366 Issue of Ordinary share capital (net of expenses) 376 224 16,351 Revaluation of land 579 - - Increase in own shares held (185) - - Foreign exchange differences 944 (125) (290) -------- -------- -------- Net addition to shareholders' funds 15,325 11,133 36,427 -------- -------- -------- Opening shareholders' funds (as originally stated) 188,307 153,210 153,210 Prior period adjustment (Note 8) - (775) (1,330) -------- -------- -------- Opening shareholders' funds (as restated) 188,307 152,435 151,880 -------- -------- -------- -------- -------- -------- Closingshareholders' funds 203,632 163,568 188,307 -------- -------- -------- 6. Acquisitions Furgonetas de Alquiler SA ('Fualsa') On 16 July 2002, the Group acquired a 40% share in Fualsa, a company registered in Spain, for a cash consideration of Â£10,170,000, including goodwill of Â£4,726,000. In the year to 30 April 2004, this investment was accounted for as a joint venture. On 3 May 2004, the Group exercised its option to acquire a further 40% of the share capital of Fualsa for a consideration of Â£15,150,000 under the share purchase agreement. On the same date, the Group also exercised its option to acquire the final 20% of the share capital of Fualsa. The consideration for this exercise is deferred until May 2006 and will be dependent upon the profit after tax of Fualsa for the calendar years 2004 and 2005. With effect from May 2004, Fualsa has been accounted for as a subsidiary undertaking and in accordance with acquisition accounting principles. The detail relating to the 60% share of Fualsa, that was acquired on 3 May 2004, is as follows: Â£000 Fair value of net assets acquired 16,128 Goodwill 8,362 -------- Acquisition cost (including expenses) 24,490 -------- Fair value of consideration: Cash 15,150 Deferred consideration 9,340 -------- 24,490 -------- Cash payment made 15,150 Cash equivalents with subsidiary undertaking acquired (90) -------- Cash outflow in period on acquisition of Fualsa 15,060 -------- The total goodwill of Â£13,088,000, arising on this acquisition, comprises Â£4,726,000 relating to the 40% share and Â£8,362,000 relating to the 60% share of Fualsa. This is being amortised over a 20 year period from July 2002. The actual deferred consideration of Â£10,354,000 is included within creditors falling due after more than one year. Foley Self Drive Limited ('Foley') On 1 August 2004, the Group acquired the entire issued share capital of Foley for a cash consideration of Â£3,895,000, including goodwill of Â£1,557,000. The goodwill on the acquisition of Foley is capitalised and written off over a period of five years, being its estimated useful economic life. The transaction has been accounted for in accordance with acquisition accounting principles. Â£000 Fair value of net assets acquired 2,338 Goodwill 1,557 -------- Acquisition cost (including expenses) 3,895 -------- Fair value of consideration: Cash 3,895 Bank overdraft with subsidiary undertaking acquired 475 -------- Cash outflow in period on acquisition of Foley 4,370 -------- The results of Foley for the period 1 August 2004 to 31 October 2004 have not been included within acquisitions in the consolidated profit and loss account as, in the opinion of the Directors, they are immaterial to the results of the Group as a whole. F Herriman & Sons Limited ('Daman') On 30 April 2004, the Group acquired the entire issued share capital of Daman for a cash consideration of Â£960,000, including goodwill of Â£670,000. During the period, the Group received Â£70,000 from the vendor, under the retention terms of the sale and purchase agreement. In all of the above acquisitions, the fair values represent the Directors' current estimates of the net assets acquired. In accordance with FRS7, the values attributed may be revised as further information becomes available. 7. Basis of preparation The results have been prepared on the basis of the accounting policies set out in the last annual report and accounts, with the exception of the change in accounting policy referred to in Note 8. The results for the year to 30 April 2004 are extracted from the audited accounts for that year which have been delivered to the Registrar of Companies, and on which the auditors issued an unqualified report and which did not include a statement under Section 237 (2) or (3) of the Companies Act 1985. 8. Prior period adjustment On 1 May 2004, the Group changed its accounting policy in respect of investments in its own shares, in accordance with Urgent Issues Task Force Abstract 38. A prior period adjustment has been made to reflect this change in accounting policy. The impact of this change is to reduce both fixed asset investments and shareholders' funds by Â£775,000 at 31 October 2003 and Â£1,330,000 at 30 April 2004. Within the consolidated cash flow statement, the change in accounting policy has caused a reduction in the cash outflow on capital expenditure and financial investment and an increase in the cash outflow on financing of the same amounts. These amounts are Â£526,000 for the six months to 31 October 2003 and Â£1,081,000 for the year to 30 April 2004. There is no impact on the consolidated profit and loss account in any period. The change in accounting policy gives rise to an own shares held reserve. This represents shares held by an employee trust in order to meet commitments under the Group's various share schemes. The impact of the change in accounting policy in the current period is to reduce fixed asset investments by Â£185,000 and to increase the own shares held reserve by the same amount. There is no impact on the consolidated profit and loss account or consolidated cash flow statement in the current period. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Zigup (ZIG)

Monday, 13th January 2025

COMPANIES COVERED:

CRW ENT ONT

A raft of good news stories to kick off the week with Entain up on guidance reiteration, Oxford Nanopore soars over mid term outlook and Craneware advances as US political backdrop adds confidence.

Full Archive

UK 100

Latest directors dealings

2 hours ago Futura Medical
2 hours ago Conygar Investment Company
2 days ago FRP Advisory Group
2 days ago Marks Electrical Group
2 days ago CLS Holdings

All directors dealings today