Interim Results
21 February 2003 - 6:00PM
UK Regulatory
RNS Number:7829H
Avingtrans PLC
21 February 2003
Avingtrans plc
Interim results for the six months to 30 November 2002
Highlights
Six months to 30 November 2002 Six months to 30 November 2001
#'000 #'000
Turnover 2,002 Nil
EBITDA 307 (120)
EBIT 162 (120)
Basic EPS 1.6p (0.2)p
EPS before goodwill amortisation 1.8p (0.2)p
* Acquisition of Jena Group completed 28 June 2002
* Directors subscribe to 727,273 new shares
* Ken Baker appointed Chairman 30 June 2002
* Integration of Jena Group successfully completed
* Jena appointed exclusive UK agent for leading European spindle
manufacturer from 1 January 2003
* Profit and cash generation in line with expectations
Ken Baker, Chairman, commented: "This reporting period includes the first five
months of trading after the acquisition of the Jena Group of companies on 28
June 2002, operating in the field of precision equipment and critical services
to manufacturing in the UK, Germany and USA. A lot of work has been performed
by the Board during that period to integrate the Jena companies and I am
delighted to report that the Company was profitable and cash generative during
that time, notwithstanding difficult trading conditions and the need to perform
a good deal of administrative work to implement the integration. Your Board
therefore looks forward with cautious confidence to the future."
Enquiries:
Avingtrans plc
Ken Baker, Steve Lawrence 0115 939 4707
Bridgewell Limited
Greg Aldridge 0207 003 3000
Chairman's Statement
I am pleased to announce the results of Avingtrans plc for the six months ended
30 November 2002. These results are the first following the acquisition by
Avingtrans of the Jena Group of companies ("Jena Group"), which were acquired on
28 June 2002. Following this acquisition, Avingtrans' business is in the field
of precision equipment and critical services to manufacturing in the UK, Germany
and USA.
The period covered by these results includes one month during which the Company
had no operating business and income was derived only from interest on bank
deposits and five months of trading by the Jena Group. The comparative figures
represent a time when Avingtrans had no trading activities and do not represent
the performance of the Jena Group.
Results
For the six months ended 30 November 2002 earnings before interest, tax,
depreciation, and goodwill amortisation (EBITDA) was #307,000 (2001: #120,000
loss) on turnover of #2,002,000 (2001: nil).
Operating profit for the period was #162,000 (2001: #120,000 loss)
The Company had a positive cash flow from operations during the period of
#133,000 and at 30 November 2002, had cash at bank and in hand of #1,204,000
with a net cash balance of #941,000.
Earnings per share
Earnings per share, for the period ended 30 November 2002, before goodwill
amortisation, were 1.8p (2001: 0.2p loss).
Earnings per share after goodwill amortisation and full dilution were 1.6p
(2001: 0.2p loss)
Dividend
The Board is not recommending a dividend for the half year.
Six months review
Operations during a difficult five months of trading were broadly to
expectations. The Jena Group was profitable during the first five months of its
ownership by Avingtrans and achieved positive operating cash flows. Profit
margins were maintained at acceptable levels due to improved manufacturing
efficiency and a redeployment of assets in the USA. A trend of increasing order
intake and sales activity levels was observed during the period, starting from a
low base at the beginning of the year.
A number of new opportunities for the Company's products and services were
processed during the six months under review. New market sectors addressed by
the Company as a result include high value equipment spindles in the UK and the
supply of polishing and finishing services to the medical equipment sector.
Expenditure on capital equipment during the six months at #73,000, enabling the
Company to keep all operating plant and equipment in good working condition and
productively effective.
Directors
As previously noted in the annual report for the year ended 30 May 2002 a number
of changes and additions were made to the board of directors of the company
during the six months ended 30 November 2002.
On 30 June 2002 K.M.Baker, previously a Non-executive Director, was appointed
Chairman of the Board. S.M.Bruh, who had previously been an Executive Director
and J.J.Hamer have continued as Non-executive Directors. On the same date,
S.J.Lawrence, Managing Director of the Jena Group, was appointed to the Board as
an Executive Director.
On 2 September 2002, S.M.King joined the Company from PricewaterhouseCoopers and
was appointed to the Board as Finance Director and Company Secretary.
Strategy and Prospects
In the 2002 annual report, the Board announced its aim to use its combined
experience to build Avingtrans over the next few years with the objectives of
generating long-term earnings per share growth, cash generation and a
sustainable dividend policy. The acquisition of the Jena Group and its
successful integration over the six months ended 30 November 2002 sees the start
of this process.
During a difficult trading time the Jena Group has performed well and prospects
for the second half of the financial year continue to look favourable with a
trend in slowly increasing enquiry levels and orders. Management continues to
effect the strategy through the gaining of new business and the launch of new
products and services against a background of productivity improvement and
efficiency. Management is also seeking to augment this organic growth with
suitable acquisitions, a selected number of which are under review.
Over the last six months a good deal of administrative work has been necessary
to finalise and close of matters arising from prior year's events. This work has
now been largely achieved and your Board looks forward with cautious confidence
to the future.
K.M.Baker
Chairman
Consolidated Profit and Loss Account
6 mths to 6 mths to
30 November 30 November 12 mths to
2002 2001 31 May 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
Note
Turnover
Current period acquisitions 2,002 - -
Operating profit before amortisation 175 - -
Amortisation of goodwill (13) - -
Operating profit/(loss)
Current period acquisitions 243 - -
Continuing operations (68) (120) (498)
Goodwill amortisation (13) - -
Operating profit/(loss) 162 (120) (498)
Profit/(loss) on ordinary activities before interest 162 (120) (498)
Net interest payable and similar charges (3) 109 189
Profit/(loss) on ordinary activities before taxation 159 (11) (309)
Tax on profit on ordinary activities 3 (50) - -
Retained profit for the period 109 (11) (309)
Earnings per share 4
Basic 1.6p (0.2)p (4.9)p
Basic - before goodwill amortisation 1.8p (0.2)p (4.9)p
Diluted 1.6p (0.2)p (4.9)p
Diluted - before goodwill amortisation 1.8p (0.2)p (4.9)p
Statement of Total Recognised Gains and Losses
6 mths to 30 6 mths to 30
November 2002 November 2001 12 mths to 31
Unaudited Unaudited May 2002
Audited
#'000 #'000 #'000
Profit for the financial period 109 (11) (309)
Other recognised gains and losses
Currency translation loss (33) - -
Total recognised gains relating to the period 76 (11) (309)
Summarised Consolidated Balance Sheet
At 30 November At 30 At 31
2002 Unaudited November 2001 May 2002
#'000 Unaudited Audited
#'000 #'000
Fixed assets
Intangible assets 613 - -
Tangible assets 1,914 - -
2,527 - -
Current assets
Stocks 1,430 - -
Debtors due within one year 605 93 1
Cash at bank and in hand 1,204 4,399 4,080
3,239 4,492 4,081
Creditors: Amounts falling due within one year (926) (153) (252)
Net current assets 2,313 4,339 3,829
Total assets less current liabilities 4,840 4,339 4,041
Creditors: Amounts falling due after more than one year (417) - -
Provisions for liabilities and charges 94 - -
Net assets 4,517 4,339 4,401
Capital and reserves
Called up share capital 352 316 316
Share premium account 3,611 3,247 3,247
Capital redemption reserve 813 813 813
Other reserves 180 180 180
Profit and loss account (439) (217) (515)
4,517 4,339 4,041
Consolidated Cash Flow Statement
6 mths to 30 6 mths to 30 12 mths to
November 2002 November 2001 31 May 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
Net cash inflow/(outflow) from operating activities 133 (103) (388)
Returns on investment and servicing of finance
Net interest (3) (1) 189
Net cash (outflow)/inflow from returns on investment and (3) (1) 189
servicing of finance
Taxation (158) - -
Capital expenditure and financial investment
Purchase of fixed assets (73) - -
Sale of fixed assets 15 - -
Net cash outflow from capital expenditure and financial (58) -
investment
Acquisitions and disposals
Purchase of subsidiary undertakings (3.374) - (212)
Net cash acquired with subsidiaries 50 - -
Net cash outflow from acquisitions and disposals (3,324) - (212)
Equity dividends - - -
Financing
Issue of share capital 400 - -
Repayment of loan capital (8) - -
Capital element of finance lease payments (89) - -
Net cash inflow from financing 303 - -
(Decrease) in cash (3,107) (104) (411)
Reconciliation of Operating Profit to Net Cash Flow from Operating Activities
6 mths to 30 6 mths to 30 12 mths to
November 2002 November 2001 31 May 2002
#'000 #'000 #'000
Operating profit/(loss) - - (498)
Amortisation of intangible assets and goodwill 15 - -
Depreciation of tangible fixed assets 130 - -
(Profit) on disposal of tangible fixed assets (2) - -
(Increase) in stocks (79) - -
Decrease/(increase) in Debtors 166 (29) -
(Decrease)/increase in Creditors (259) 45 (110)
Net cash inflow/(outflow) from operating activities 133 (104) (388)
NOTES
1. This interim report was approved by the Board on 20 February 2003. It has
been prepared using accounting policies that are consistent with those
adopted in the statutory accounts for the year ended 31 May 2002.
The figures for the year to 31 May 2002 were derived from the statutory
accounts for that year. The statutory accounts for the year ended 31
May 2002 have been delivered to the Registrar of Companies and received an
audit report which was unqualified and did not contain statements under
s237(2) or (3) of the Companies Act 1985.
2. This statement is being sent to shareholders of the Company and will be
available at the Company's Registered Office.
3. The taxation charge is based upon the expected rate for the year ended
31 May 2003.
4. Earnings per share has been calculated using the weighted average number of
6,930,579 Ordinary Shares in issue during the period (2001: 6,322,531)
(Audited 2002: 6,322,531).
5. Capitalised goodwill amounting to #621,000 is being amortised over twenty
years on a straight line basis. Goodwill has been calculated on book value
pending a final review of the fair value of assets acquired during the
period.
6. Analysis of Net Cash
Exchange 30 Nov.
1 June 2002 Cash flow movement 2002
#'000 #'000 #'000 #'000
Cash at bank and in hand 4,080 (2,877) 1 1,204
Bank overdraft (34) (230) 1 (263)
Cash 4,046 (3,107) 2 941
7. Reconciliation of movements in Shareholders' Funds
6 mths to 30 6 mths to 30
November 2002 November 2001 12 mths to 31
Unaudited Unaudited May 2002
Audited
#'000 #'000 #'000
Profit/(loss) for the financial period 109 (11) (309)
Currency translation loss (33) - -
Proceeds of share issue 400 - -
Increase/(decrease) in shareholders' funds 476 (11) (309)
Opening shareholders' funds 4,041 4,350 4,350
Closing shareholders' funds 4,517 4,339 4,041
This information is provided by RNS
The company news service from the London Stock Exchange
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