Final Results
17 April 2003 - 9:01PM
UK Regulatory
RNS Number:1587K
Fortress Holdings PLC
17 April 2003
FORTRESS HOLDINGS plc
PRESS RELEASE
________________________________________________________________________
PRELIMINARY ANNOUNCEMENT
17th April 2003
For Immediate Release
Fortress Holdings plc today announces its results for the year ended 31st
December 2002
2002 PRELIMINARY RESULTS
PRE TAX PROFITS AND EARNINGS PER SHARE DOUBLE
DIVIDEND MAINTAINED
Results 2002 2001
#000 #000
Turnover 3,061 3,045
Profit before taxation 508 246
Dividend per share 0.5p 0.5p
Earnings per share 0.6p 0.3p
KEY POINTS
* 10.4m shares bought in by the company during and soon after the year
end.
* Dividend being maintained.
Commenting on these results, Chairman Greville Howard said:
"Columbia-Staver continues to work hard to overcome the continuing departure of
its customers from Britain. This has involved extensive travel by senior
management pursuing business in new locations. The benefit of this hard work is
starting to be seen and hopefully will result in continuing profits."
For further information, please contact:
Greville Howard, Chairman, Fortress Holdings plc 07850 631556
David Haggie, Haggie Financial Limited 020 7417 8989
CHAIRMAN'S STATEMENT
Over the years my colleagues and I have consistently stated that our priority is
the enhancement of shareholder value. Your Directors have continued to seek a
suitable acquisition for your Company and, although the expectations of vendors
are more realistic, two problems have arisen. The first is that, given the
current state of the market, almost any acquisition might, in the short term,
detract rather than enhance shareholder value. The price of Fortress shares
reflects the amount of cash in the Company. Once this is invested and that
support is taken away there might be deterioration in the share price. Any
acquisition must, in so far as is possible, be capable of providing substantial
uplift in shareholder value in the medium term to compensate for short term
turbulence. The second problem is the United Kingdom economy, where over
regulation and competition from low cost economies are decimating British
manufacturing. The recent increases in taxation and, the Government borrowing
requirement which is about to rise, are creating further uncertainties. Your
Directors will continue to look for real value. It is because of this
insistence that your Company still has resources to invest.
During and soon after the year end 10,432,500 of the Company's shares were
bought in. Certain shareholders at recent General Meetings have asked the Board
to consider returning funds to shareholders. Others have taken a different
view. It was thought buying in would be a means of satisfying both wishes. It
is unfortunate that, while pursuing a major acquisition, regulations prohibited
your Company from buying in shares when your Board wished to and so others
stepped in. This meant that, although satisfied with our purchases, a slightly
higher price was paid than would otherwise have been the case.
Your Directors are recommending a dividend of 0.5p per share.
GREVILLE HOWARD
Chairman
17th April 2003
FORTRESS HOLDINGS plc
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER 2002
2002 2001
#000 #000
TURNOVER 3,061 3045
Cost of sales (2,407) (2,450)
GROSS PROFIT 654 595
Selling and distribution costs (356) (364)
Administrative expenses (549) (768)
Other operating income 49 -
OPERATING LOSS (202) (537)
Net interest receivable 711 925
Amounts written off investments (1) (142)
PROFIT ON ORDINARY ACTIVITIES 508 246
BEFORE TAXATION
Taxation (109) (60)
PROFITS FOR THE FINANCIAL YEAR 399 186
Dividends (270) (322)
TRANSFER TO/(FROM) RESERVES 129 (136)
EARNINGS PER 20p SHARE
- basic 0.6p 0.3p
- diluted 0.6p 0.3p
All of the results are derived from continuing operations.
All recognised gains and losses are included in the profit and loss account.
There is no difference between the results disclosed in the profit and loss
account and the results as given on an unmodified historical cost basis.
FORTRESS HOLDINGS plc
CONSOLIDATED BALANCE SHEET
AS AT 31ST DECEMBER 2002
2002 2001
#000 #000
FIXED ASSETS
Tangible fixed assets 326 424
326 424
CURRENT ASSETS
Stocks 485 448
Debtors 820 617
Investments 244 265
Cash at bank and in hand 18,755 18,914
20,304 20,244
CREDITORS - amounts falling due within one year (1,097) (1,120)
NET CURRENT ASSETS 19,207 19,124
TOTAL ASSETS LESS CURRENT LIABILITIES 19,533 19,548
CREDITORS - amounts falling due after more than one year (10) (31)
PROVISIONS FOR LIABILITIES AND CHARGES (72) (133)
NET ASSETS 19,451 19,384
CAPITAL AND RESERVES
Called up share capital 12,821 12,871
Capital redemption reserve 1,531 1,481
Profit and loss account 5,099 5,032
EQUITY SHAREHOLDERS' FUNDS 19,451 19,384
Approved by the Board of Directors on 17th April 2003.
FORTRESS HOLDINGS plc
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2002
2002 2001
#000 #000
Operating loss (202) (537)
Depreciation charges 184 192
Gain on disposal of fixed assets (8) (13)
Gain on disposal of investments (13) -
Increase in stocks (37) (93)
(Increase)/decrease in debtors (168) 271
Increase/(decrease) in creditors 72 (235)
Decrease in provisions (65) (108)
NET CASH OUTFLOW FROM OPERATING ACTIVITIES (237) (523)
Returns on investments and servicing of finance 715 945
Taxation (85) (339)
Capital expenditure and financial investment (45) 98
Equity dividends paid (322) (327)
CASH INFLOW/(OUTFLOW) BEFORE MANAGEMENT OF LIQUID RESOURCES 26 (146)
AND FINANCING
Management of liquid resources 402 186
Financing (185) (436)
INCREASE/(DECREASE) IN CASH IN THE YEAR 243 (396)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
FOR THE YEAR ENDED 31ST DECEMBER 2002
2002 2001
#000 #000
Increase/(decrease) in cash in the year 243 (396)
Cash flow from movement in debt and financing 123 176
Cash flow from movement in liquid resources (402) (186)
Decrease in net funds in the year (36) (406)
Net funds at the start of the year 18,609 19,015
Net funds at the end of the year 18,573 18,609
FORTRESS HOLDINGS plc
NOTES
1. The financial information set out above does not constitute the
Company's statutory accounts for the years ended 31st December 2002 or 31st
December 2001, but is derived from those accounts. Statutory accounts for 2001
have been delivered to the Registrar of Companies and those for 2002 will be
delivered following the Company's Annual General Meeting. The auditors have
reported on those accounts. Their reports were unqualified and did not contain
statements under section 237 (2) or (3) of the Companies Act 1985.
2. The final dividend of 0.5p per ordinary share, if approved at
the Annual General Meeting, will be paid on 6th June 2003 to all shareholders on
the register as at 16th May 2003.
3. The basic and diluted earnings per share have been calculated on
the profit after tax of #399,000 (2001: #186,000) and on the weighted average
number of shares in issue of 64,297,506 (2001: 65,094,286).
4. The accounting policies used have been reviewed by the Board in
accordance with FRS 18 and, subject to the adoption of FRS 19 on deferred
taxation, remain consistent with those used in the most recent published
accounts.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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