RNS Number:7366M
MS International PLC
25 June 2003
Date: Under embargo until 7.00am - Wednesday June 25th 2003
Contacts: Michael Bell, Executive Chairman, MS lNTERNATIONAL plc
Tel: 01302 322133
Terry Garrett, Weber Shandwick Square Mile
Tel: 0207 067 0700
MS INTERNATIONAL plc
Full Year Results to May 3rd, 2003
HIGHLIGHTS
* Turnover of #30.67m (2002-#35.69m)
* Pre-tax profits #0.64m (2002-#2.51m)
* Final dividend increased to 1.20p (2002-1.17p) per share making a
total of 1.60p (2002-1.55p)
* Net cash of #1.63m (2002-#3.48m)
Michael Bell, Executive Chairman, commented:
"A year ago I commented that the Group would not remain immune from
the deepening economic recession and clearly these results demonstrate
the impact on the Group of deteriorating markets. Nevertheless we
have taken action and maintained our market share and sustained our
underlying margins before the unprecedented increases in insurance
premium costs and pension charges."
"Despite the prevailing harsh market climate the Group is in good
shape. The cash position is strong, even after investing heavily in
capital expenditure and upgrading our freehold properties. We have
good quality products that are competitively priced, good quality
teams within the operations and a Board committed to developing the
strength of the business by exploiting the opportunities that arise."
Chairman's Statement
Introduction
At the interim stage I re-iterated the comments made in my last year-
end statement - that our business would not remain immune to the
impact of a deepening global recession. Clearly, with a 14% reduction
in turnover this has proven to be the case. Yet it is pleasing that
the all round commercial strength of the Group is enabling us to
withstand the prevailing global economic conditions reasonably well.
Notwithstanding the pressure that the persistently deteriorating
markets have imposed on our trading position, we have not only
preserved market share by providing consistently high standards of
customer service, but also sustained margin by taking prompt action to
reduce costs within our direct control. Conversely, costs beyond our
commercial control, such as an unprecedented up-lift in insurance
premiums and an increased pensions charge, added an additional burden
to our overhead costs of some #0.50m compared to last year.
Inevitably, the reduced level of turnover when combined with the
additional overhead burden impinged heavily on the result, and for the
period ended May 3rd, 2003, with sales down at #30.67m (2002-#35.69m)
a profit before tax of #0.64m (2002-#2.51m) was achieved. Earnings per
share amounted to 2.0p (2002-8.1p).
The consolidated net cash position of the Group remained strong,
although reduced to #1.63m (2002-#3.48m). This was after considerable
further capital expenditure on the upgrading of our manufacturing
capabilities, development work and the programmed refurbishment of our
freehold properties. In addition the Company purchased for
cancellation MS INTERNATIONAL plc shares that resulted in a cash
outflow of #0.29m.
Given these circumstances, the overall operating performance was
creditable, despite impeding the forward momentum of all three
divisions.
Operating Divisions
The defence division achieved a good result on sales lower than the
record output reported this time last year. Both the phasing and the
value of the order book has become more in line with that established
in recent years.
The forgings division with a broad exposure to all three of the
world's principal trading areas, North America, the Euro-zone and the
Asian-Pacific region did well in the harsh trading environment of
plunging markets.
The Global-MSI performance was not dissimilar to that experienced
elsewhere around the Group. Sales were down on last year and profits
were lower on a pro-rata basis.
Outlook
We remain committed to developing the strength of the business, by
exploiting market opportunities as they arise and generating both cash
and profits. There is cash at the bank; we have good quality products
that are competitively priced in the market place, and many highly
competent people within the individual operations.
The business is in good shape. Cash has been invested wisely in
'twenty first century' plant and equipment, research and development
of products and technology, and in maintaining and upgrading the
quality of the Group's freehold properties. These major capital
programmes are now nearing completion and we expect such expenditure
to return to the more modest levels of earlier years.
All matters considered, the Board recommends the payment of an
increased final dividend of 1.20p (2001-1.17p) making a total for the
year of 1.60p (2002-1.55p).
Michael Bell
Wednesday June 25th 2003
Group Profit and Loss Account
For the 53 weeks ended May 3rd, 2003
2003 2002
Total Total
#000 #000
Turnover: Group and share of joint venture 30,666 35,687
Less: Share of joint venture turnover (4,211) (5,250)
-------------------------------------------- --------- ---------
Group turnover 26,455 30,437
-------------------------------------------- --------- ---------
Operating profit 479 2,106
Share of operating profit of joint venture 193 405
-------------------------------------------- --------- ---------
Profit on ordinary activities before interest 672 2,511
Interest receivable:
Group 62 108
Joint venture 8 6
Interest payable:
Group (99) (114)
-------------------------------------------- --------- ---------
Profit on ordinary activities before taxation 643 2,511
Tax on profit on ordinary activities (245) (818)
-------------------------------------------- --------- ---------
Profit on ordinary activities after taxation 398 1,693
Dividends (318) (298)
-------------------------------------------- --------- ---------
Retained profit for the Group and its share
of joint venture 80 1,395
-------------------------------------------- --------- ---------
Earnings per share, basic and fully diluted 2.0p 8.1p
-------------------------------------------- --------- ---------
Group Statement of Recognised Gains and Losses
2003 2002
#000 #000
Profit for the financial period 398 1,693
Translation differences on foreign currency
net investments (14) 2
Prior year adjustment - (463)
-------------------------------------------- --------- ---------
Total gains recognised since last annual
report 384 1,232
-------------------------------------------- --------- ---------
Historical cost profits and losses
There is no material difference between the result as disclosed in the
profit and loss account and the result which would have been reported
had the Group prepared the accounts on an unmodified historical cost
basis.
Notes
The financial information set out above does not constitute the
Company's statutory accounts for the periods ended May 3rd, 2003 or
April 27th, 2002 but is derived from those accounts. Statutory
accounts for 2002 have been delivered to the Registrar of Companies,
and those for 2003 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 a statement under
section 237 (2) or (3) of the Companies Act 1985.
The earnings per share is calculated dividing the profit after
taxation of #398,000 by the weighed average of 19,882,992 shares in
issue in the year.
Copies of this announcement are available from the Companies
registered office at MS INTERNATIONAL plc, Balby Carr Bank,
Doncaster, DN4 8DH, England. The full Annual Report and Accounts
will be posted to shareholders shortly and will be delivered to the
Registrar of Companies after it has been laid before the Company in
general meeting.
Dividend warrants will be posted on September 5th, 2003 to members on
the books of the Company at August 8th, 2003.
Balance Sheets
At May 3rd, 2003
Group
2003 2002
#000 #000
Assets employed
--------------------------------------------- ------- -------
Fixed assets
Intangible assets 251 -
Tangible assets 8,039 7,671
Joint venture:
Share of gross assets 1,456 1,712
Share of gross liabilities (894) (1,196)
Investment in own shares 731 759
--------------------------------------------- ------- -------
9,583 8,946
--------------------------------------------- ------- -------
Current assets
Stocks 3,298 2,745
Debtors 4,381 4,233
Group pension scheme prepayment
- due after more than one year 6,558 6,888
Cash at bank and in hand 2,468 4,763
--------------------------------------------- ------- -------
16,705 18,629
Creditors - amounts falling due within one
year 9,011 10,547
--------------------------------------------- ------- -------
Net current assets 7,694 8,082
--------------------------------------------- ------- -------
Total assets less current liabilities 17,277 17,028
Creditors - amounts falling due after more
than one year 624 209
Provisions for liabilities and charges 2,956 3,076
--------------------------------------------- ------- -------
Total assets less liabilities 13,697 13,743
--------------------------------------------- ------- -------
Capital and reserves
Called up share capital 2,195 2,217
Capital redemption reserve 546 524
Revaluation reserve 1,853 1,853
Other reserves 4,136 4,654
Special reserve 1,629 1,487
Profit and loss account 3,338 3,008
--------------------------------------------- ------- -------
Equity shareholders' funds 13,697 13,743
--------------------------------------------- ------- -------
Group Cash Flow Statement
For the 53 weeks ended May 3rd, 2003
2003 2003 2002 2002
#000 #000 #000 #000
Operating profit 479 2,106
Depreciation charge 669 619
RSA grant release (17) (38)
Decrease/(increase) in stocks 1,207 (614)
(Increase)/decrease in debtors (224) 2,730
Decrease in pension scheme debtor 330 50
(Decrease)/increase in creditors (511) 379
Decrease in progress payments (1,308) (1,367)
Increase in provisions 65 65
Provisions utilitised (114) (180)
-------------------------------- ------- -------
Cash flow from operating
activities 576 3,750
Dividends received from joint
venture 51 155
Interest paid (61) (11)
Taxation (644) 31
Purchase of tangible fixed assets (1,043) (2,077)
Purchase of intangible fixed
assets (251) -
Sale of tangible fixed assets 6 9
Shares purchased by ESOT - (518)
-------------------------------- ------- -------
Capital expenditure and financial
investment (1,288) (2,586)
Dividends paid (313) (289)
-----------------------------------------------------------------------------------
Cash (outflow)/inflow before
financing (1,679) 1,050
-----------------------------------------------------------------------------------
Cash (outflow)/inflow before
financing (1,679) 1,050
Financing
Purchase of own shares (290) (467)
New grants received 100 -
(Decrease)/increase in short term
bank loans (952) 1,286
Increase in long term bank loans 500 -
Repayments of capital element of
finance leases and hire purchase
contracts (158) (216)
New leases 156 296
Share options exercised 28 25
------- -------
(616) 924
-----------------------------------------------------------------------------------
(Decrease)/increase in cash (2,295) 1,974
-----------------------------------------------------------------------------------
Reconciliation of net cash flow to movement in net funds
2003 2002
#000 #000
(Decrease)/increase in cash (2,295) 1,974
Cash outflow/(inflow) from
decrease/(increase) in loans 952 (1,286)
Cash (inflow) from increase in long term
loans (500) -
Repayments of capital element of finance
leases and hire purchase contracts 158 216
-------------------------------------------------- ------- -------
Changes in net funds resulting
from cash flow (1,685) 904
New leases (156) (296)
-------------------------------------------------- ------- -------
Movement in net funds (1,841) 608
Net funds at April 27th, 2002 3,049 2,441
-------------------------------------------------- ------- -------
Net funds at May 3rd, 2003 1,208 3,049
-------------------------------------------------- ------- -------
Analysis of net funds
2003 Cash flows 2002
#000 #000 #000
Cash at bank and in hand 2,468 (2,295) 4,763
Bank loans and overdrafts (834) 452 (1,286)
------- ------- -------
1,634 (1,843) 3,477
Finance leases and hire purchase contracts (426) 2 (428)
------- ------- -------
Net funds at May 3rd, 2003 1,208 (1,841) 3,049
------- ------- -------
Movement on reserves and reconciliation of movements in shareholders'
funds
Movement in reserves are as follows:-
Capital Profit
Share redemption Revaluation Other Special and loss
capital reserve reserve reserves reserves account Total
#000 #000 #000 #000 #000 #000 #000
At April 27th,
2002 2,217 524 1,853 4,654 1,487 3,008 13,743
Profit
attributable to
members - - - - - 398 398
Dividends - - - - - (318) (318)
Foreign exchange
adjustments in
retranslation of
overseas - - - (14) - - (14)
investments
Reallocations - - - (412) 142 270 -
Transfer in
respect of
pension
scheme - - - (92) - 92 -
Repurchase of
shares (22) 22 - - - (112) (112)
------- ------- ------- ------- ------- ------- -------
At May 3rd, 2003 2,195 546 1,853 4,136 1,629 3,338 13,697
------- ------- ------- ------- ------- ------- -------
This information is provided by RNS
The company news service from the London Stock Exchange
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