Interim Results
15 September 2003 - 5:00PM
UK Regulatory
RNS Number:7264P
Oakhill Group PLC
15 September 2003
OAKHILL GROUP PLC
Unaudited Interim Results of Oakhill Group plc
for the six months ended 30 June, 2003
INTERIM STATEMENT
Oakhill Group plc announces its interim results for the six months ended 30 June
2003.
Financial summary
2003 2002 Change
Euro'000 Euro'000 %
Sales
Continuing operations
Managed services 12,753 12,566 +1
Specialty print 10,234 10,966 -7
22,987 23,532 -2
Discontinued operations 1,423 9,339
24,410 32,871
Operating profit *
Continuing operations
Managed services 1,182 1,830 -35
Specialty print 1,032 545 +89
2,214 2,375
Centre costs (698) (659)
1,516 1,716 -12
Discontinued operations - 555
1,516 2,271
Goodwill amortisation (676) (1,293)
Interest (204) (529)
Profit before tax 636 449
Profit after tax 328 40
Adjusted earnings per share (cent)* 1.78 2.36 -25
Net debt 3,321 12,618
Shareholders' funds 13,807 31,025
Debt / equity ratio 24% 41%
* before goodwill amortisation
Chairman's Statement
Oakhill Group plc is a supplier of customer contact solutions and document
management services ("Managed Services") and maintains a strong presence in the
manufacture of academic books and journals and self-adhesive labels ("Specialty
Print"), with business units in Ireland and the United Kingdom.
The interim results for the Group for the six months to 30 June 2003 show sales
from continuing operations of Euro22.987 million, down 2% compared with the same
period in 2002 and operating profit before goodwill amortisation of Euro1.516
million, down 12% on the same period in 2002.
Adjusted earnings per share of 1.78 cent are 25% lower than the 2.36 cent
reported in 2002.
The sale of Meridian Printing was completed on 19 February 2003 and net cash
consideration of $5.7 million was used to repay bank debt. Net debt has been
reduced from Euro12.6 million at June 2002 to Euro3.3 million at June 2003.
A reduction of capital was approved by shareholders at the last annual general
meeting. This reduction is subject to the approval of the High Court and an
announcement will be made when the capital reduction is approved.
Operating profit and financial review
The reduction in sales of 2% and operating profit of 12% from continuing
operations in the current year relative to last year is due to the deterioration
of the #stg/Euro exchange rate. Excluding the effect of exchange rate movements
sales from continuing operations are up 6% on last year and operating profit is
up 1% on last year.
In Managed Services, in local currency, sales increased by 12% and operating
profit reduced by 29%. The sales mix in 2002 was such that a significant
proportion of higher margin business fell into the first half of the year with
lower margin business falling into the second half although turnover was similar
in both periods. This profile has been somewhat reversed in the current year
resulting in a lower operating profit on increased sales. This position was
anticipated and results are in line with expectations. The division has
continued to build on its strong performance last year. The card services side
of this business is developing in line with plans, while the marketing materials
side made progress in developing its services business in a difficult trading
environment.
In Specialty Print, in local currency, sales are in line with last year and
operating profit increased by 65%. The books and journals business performed
well with an increase in sales and operating profit. Sales in the labels
business decreased in the period and trading conditions remain very competitive.
The operating profit in labels benefited from a reduced depreciation charge as a
result of the impairment provision in 2002 and improved efficiencies in some of
our manufacturing processes.
The existing bank facilities mature within the next twelve months and the Group
is in the process of refinancing these facilities. One of the aims of this
process is to release appropriate financial resources to underpin the strategic
initiatives already underway in both operating divisions.
Trading Outlook
The trading environment is expected to remain competitive for the remainder of
the year.
Martin Delany
Chairman
15 September 2003
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30 JUNE 2003
2003 2002
Notes Euro'000 Euro'000
Sales
Continuing operations
Managed services 12,753 12,566
Specialty print 10,234 10,966
22,987 23,532
Discontinued operations 1,423 9,339
24,410 32,871
Operating profit before goodwill amortisation
Continuing operations
Managed services 1,182 1,830
Specialty print 1,032 545
2,214 2,375
Centre costs (698) (659)
1,516 1,716
Discontinued operations - 555
1,516 2,271
Goodwill amortisation 2 (676) (1,293)
Profit on ordinary activities before interest
Continuing operations 840 731
Discontinued operations - 247
840 978
Interest (204) (529)
Profit on ordinary activities before taxation 636 449
Taxation (308) (409)
Profit on ordinary activities after taxation 328 40
Earnings per share
- Basic and diluted (cent) 3 0.58 0.07
Adjusted earnings per share
- Basic and diluted (cent) 3 1.78 2.36
UNAUDITED CONSOLIDATED BALANCE SHEET
30 June 30 June
2003 2002
Euro'000 Euro'000
Fixed assets
Tangible fixed assets 7,632 19,030
Intangible assets 8,021 24,926
15,653 43,956
Current assets
Stocks 1,373 3,065
Debtors and other current assets 9,001 13,027
Cash and bank balances 2,538 4,618
12,912 20,710
Creditors (amounts falling due within one year)
Trade and other creditors 7,351 11,875
Bank and other loans 5,765 16,945
Taxation 793 1,351
13,909 30,171
Net current (liabilities) (997) (9,461)
Total assets less current liabilities 14,656 34,495
Creditors (amounts falling due after one year)
Bank and other loans 94 291
Provision for liabilities and charges 755 3,179
13,807 31,025
Shareholders' funds
Share capital 5,644 5,644
Share premium 41,346 41,346
Other reserves 1,885 2,552
Profit and loss account (35,068) (18,517)
13,807 31,025
UNAUDITED SUMMARY CASH FLOW
FOR THE SIX MONTHS ENDED 30 JUNE 2003
30 June 30 June
2003 2002
Euro'000 Euro'000
Operating profit before goodwill amortisation 1,516 2,271
Depreciation 954 1,736
Net working assets (1,327) (392)
Operating cash flow 1,143 3,615
Net interest (226) (662)
Taxation (204) 53
Capital expenditure (698) (1,479)
Disposal/closure of business units 5,069 898
5,084 2,425
Opening net debt (8,748) (16,225)
Currency 343 1,182
Closing net debt (3,321) (12,618)
NOTES TO THE INTERIM STATEMENT
1. Basis of Preparation
The interim financial statements for the six months ended 30 June 2003 have
been prepared in accordance with the accounting policies set out in the
financial statements for the year ended 31 December 2002. Comparative
amounts have been regrouped and restated, where necessary, on the same basis
as the amounts for the current period.
2. Goodwill amortisation
2003 2002
Euro'000 Euro'000
Continuing operations (676) (985)
Discontinued operations - (308)
(676) (1,293)
3. Earnings Per Share
2003 2002
Euro'000 Euro'000
Profit after taxation 328 40
Goodwill amortisation 676 1,293
Adjusted profit after tax 1,004 1,333
Basic and diluted earnings per share
Earnings per share (cent) 0.58 0.07
Goodwill amortisation 1.20 2.29
Adjusted earnings per share (cent) 1.78 2.36
Weighted average number of shares ('000) 56,439 56,439
4. Exchange Rates
2003 2002
Average rate for the period (profit and loss and cash flow)
US$ 1.1049 0.8979
Stg# 0.6857 0.6217
Period-end rate (balance sheet)
US$ 1.1427 0.9975
Stg# 0.6932 0.6498
5. Interim statement
The interim statement for the six months to 30 June 2003 and 30 June
2002 is unaudited and does not constitute the Group's statutory
accounts.
A copy of the interim statement will be sent to shareholders and further
copies are available from the Company's registered office at 2A
Sandymount Green, Sandymount, Dublin 4.
Contacts :
Oakhill Group plc
Martin Delany
353 1 240 1400
Alan Jordan
353 1 240 1400
Copies of the Interim Announcement are available from the Company at its office:
2A Sandymount Green, Sandymount, Dublin 4, Telephone 353 1 240 1400
15 September 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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