RNS Number:5526S
MS International PLC
27 November 2003
Date: Under embargo until 7.00am - Thursday 27th November,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
Interim Results to 1st November, 2003
Chairman's Statement
It is pleasing to report that the Company returned to a profitable
trading position for the first six months of this financial year. The
pre-tax outcome for the first half, ending 1 November 2003, showed a
#0.55m swing into profit from the previous six months to 3 May 2003 on
turnover that was just #1.25m higher, reversing a disappointing trend
that occurred in last year's weaker second half performance.
Accordingly, the Group earned a profit before tax of #0.35m (2002-
#0.84m), after an additional pension charge of#0.18m, on sales of
#15.21m (2002-#16.71m). Earnings per share were 1.1p (2002-3.0p).
Despite the improvement on the previous six months, the overall sales
performance reflects the continuing subdued level of activity
experienced in many of the markets served by the Group. The exception
being the petrol station forecourt construction market, which was very
buoyant for Global-MSI as the operation readily seized the opportunity
to take advantage of its broadened construction capabilities to
produce a very good result.
A number of the Group's major capital expenditure programmes are
nearing completion although, in the short term, notable development
costs in both the defence and forgings divisions will continue. Such
investments, whilst costly in implementation, are timely and important
to the growth of our business, the maintenance of our competitive
trading position and the longer term prosperity of the Group. These
costs and the buying in of almost one million MS INTERNATIONAL plc
shares for cancellation, left the Group's net borrowings at #0.07m.
The Group is well placed to take advantage of any upturn in world
trading conditions and the Board recommends the payment of an
increased interim dividend of 0.42p per share (2002-0.40p).
Michael Bell
Executive Chairman
27 November 2003
MS INTERNATIONAL plc
Group Profit and Loss Account
These interim financial statements which have been prepared on the
basis of the accounting policies set out in the Company's 2003
statutory accounts do not constitute statutory accounts within the
meaning of section 254 of the Companies Act 1985 and are unaudited.
The abridged accounts for the year ended 3rd May, 2003 are an extract
from the accounts for that period on which the auditors gave an
unqualified report and which have been filed with the Registrar of
Companies.
26 weeks 27 weeks 53 weeks
ended 1st ended 2nd ended 3rd
Nov,2003 Nov,2002 May,2003
#'000 #'000 #'000
Turnover: Group and share of joint venture 15,209 16,707 30,666
Less: Share of joint venture turnover (2,856) (2,141) (4,211)
----------------------------------------- --------- --------- ---------
Group turnover 12,353 14,566 26,455
----------------------------------------- --------- --------- ---------
Operating profit 69 777 479
Share of operating profit of joint venture 285 80 193
----------------------------------------- --------- --------- ---------
Profit on ordinary activities before interest 354 857 672
Interest receivable:
Group 32 53 62
Joint venture 2 4 8
Interest payable:
Group (41) (71) (99)
----------------------------------------- --------- --------- ---------
Profit on ordinary activities before taxation 347 843 643
Taxation on profit on ordinary activities (132) (252) (245)
----------------------------------------- --------- --------- ---------
Profit for the financial period 215 591 398
--------- --------- ---------
Dividends: Interim payable (75) (88) (88)
Final payable - - (238)
Receivable by ESOT - 8 8
--------- --------- ---------
(75) (80) (318)
----------------------------------------- --------- --------- ---------
Profit for the period 140 511 80
----------------------------------------- --------- --------- ---------
Earnings per share 1.1p 3.0p 2.0p
----------------------------------------- --------- --------- ---------
Group Statement of Recognised Gains and Losses
#'000
Profit for the financial period 215
Translation differences on foreign
currency net investments 14
-----------
Total gains recognised in the period 229
-----------
Notes
1.Taxation on profit on ordinary activities has been calculated at
35% (2002 - 30%) on the Group profit for the period as adjusted for
taxation purposes, and includes a charge of#81,000 in respect of the
joint venture.
2.Dividend warrants will be posted on 30th January, 2004 to members
registered on the books of the Company at 5th January 2004.
MS INTERNATIONAL plc
Group Balance Sheet
At At At
1st Nov, 2nd Nov, 3rd May,
2003 2002 2003
#'000 #'000 #'000
Assets employed
Intangible assets 251 - 251
Fixed assets 8,066 8,013 8,039
Investment in joint venture:
Share of gross assets 2,217 1,682 1,456
Share of gross liabilities (1,474) (1,127) (894)
Investment in own shares 1,088 731 731
-------------------------------------- -------- -------- --------
10,148 9,299 9,583
-------------------------------------- -------- -------- --------
Current assets
Stocks 3,772 4,114 3,298
Debtors 4,977 5,024 4,381
Group pension scheme prepayment
- due after more than one year 6,378 6,813 6,558
Cash at bank and in hand 610 1,817 2,468
-------------------------------------- -------- -------- --------
15,737 17,768 16,705
Creditors - amounts falling due
within one year
Bank loans and overdrafts 349 1,132 334
Other 8,623 7,950 8,677
-------------------------------------- -------- -------- --------
Net current assets 6,765 8,686 7,694
-------------------------------------- -------- -------- --------
Total assets less current liabilities 16,913 17,985 17,277
Creditors - amounts falling due
after more than one year
Bank loans and overdrafts 333 667 500
Other 127 104 124
Provisions for liabilities and charges 2,956 3,076 2,956
-------------------------------------- -------- -------- --------
Total assets less liabilities 13,497 14,138 13,697
-------------------------------------- -------- -------- --------
Capital and Reserves
Called up share capital 2,096 2,195 2,195
Capital redemption reserve 645 546 546
Revaluation reserve 1,853 1,853 1,853
Other reserves 3,970 4,650 4,136
Special reserve 1,629 1,487 1,629
Profit and loss account 3,304 3,407 3,338
-------------------------------------- -------- -------- --------
Equity shareholders' funds 13,497 14,138 13,697
-------------------------------------- -------- -------- --------
Notes: #'000
(1) Movement in profit and loss account is as follows :
At 2nd Nov, 2002 3,407
Loss attributable to members 27 weeks ended 3rd May, 2003 (193)
Reallocations 270
Transfer in respect of pension scheme 92
Dividends (238)
--------
At 3rd May, 2003 3,338
Purchase of own shares (354)
Profit attributable to members 26 weeks ended 1st Nov, 2003 215
Transfer in respect of pension scheme 180
Dividends (75)
--------
At 1st Nov, 2003 3,304
--------
(2) During the period the Company redeemed 998,000 of its own
Ordinary shares at market prices as follows:
Date Number of Price paid
shares purchased per share
1st October, 2003 910,000 35.5p
13th October, 2003 88,000 35.5p
MS INTERNATIONAL plc
Group Cash Flow Statement
26 weeks 27 weeks 53 weeks
ended ended ended
1st Nov, 2nd Nov, 3rd May,
2003 2002 2003
#'000 #'000 #'000
Operating profit 69 777 479
Depreciation charge 395 304 669
Foreign exchange gains/(losses) 14 (1) -
RSA grant release (6) (10) (17)
(Increase)/decrease in stocks (241) 487 1,207
Increase in debtors (600) (711) (224)
Decrease in pension scheme debtor 180 - 330
Increase/(decrease) in creditors 154 (708) (511)
Decrease in progress payments (250) (2,432) (1,308)
Increase in provisions 33 33 65
Provisions utilised (33) (33) (114)
----------------------------------- -------- -------- --------
Cash flow from operating activities (285) (2,294) 576
Dividends received from joint venture 25 20 51
Interest paid (2) (24) (61)
Taxation (79) - (644)
-------- -------- --------
Purchase of tangible fixed assets (422) (653) (1,043)
Purchase of intangible fixed assets - - (251)
Sale of tangible fixed assets - 7 6
Shares purchased by ESOT (357) - -
-------- -------- --------
Capital expenditure and financial
investment (779) (646) (1,288)
Dividends paid (238) (259) (313)
----------------------------------- -------- -------- --------
Cash flow before financing (1,358) (3,203) (1,679)
Financing
Purchase of own shares (354) (291) (290)
Grants received - 100 100
Decrease in short term bank loans - (154) (952)
(Decrease)/increase in new long term
bank loans (152) 667 500
New leases 99 - 156
Repayments of capital element of
finance leases and
hire purchase contracts (93) (93) (158)
Share options exercised - 28 28
----------------------------------- -------- -------- --------
(500) 257 (616)
----------------------------------- -------- -------- --------
Decrease in cash (1,858) (2,946) (2,295)
----------------------------------- -------- -------- --------
Reconciliation of net cash flow to movement in net (borrowings)/funds
#'000 #'000 #'000
Decrease in cash (1,858) (2,946) (2,295)
Cash outflow from decrease in loans - 154 952
Cash outflow/(inflow) from
decrease/(increase) in long term bank
loans 152 (667) (500)
Repayments of capital element of
finance leases and
hire purchase contracts 93 93 158
----------------------------------- -------- -------- --------
Changes in net borrowings resulting
from cash flow (1,613) (3,366) (1,685)
New finance leases and hire purchase
contracts (99) - (156)
----------------------------------- -------- -------- --------
Movement in net borrowings (1,712) (3,366) (1,841)
Net funds at 3rd May, 2003 1,208 3,049 3,049
----------------------------------- -------- -------- --------
Net (borrowings)/funds at 1st Nov,
2003 (504) (317) 1,208
----------------------------------- -------- -------- --------
Analysis of net (borrowings)/funds
1st Nov 2003 Cash flows 3rd May, 2003
#'000 #'000 #'000
Cash at bank and in hand 610 (1,858) 2,468
Bank loans and overdrafts (682) 152 (834)
-------- -------- --------
(72) (1,706) 1,634
Finance leases and hire purchase
contracts (432) (6) (426)
-------- -------- --------
Net (borrowings)/funds at
1st Nov,2003 (504) (1,712) 1,208
-------- -------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
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