Interim Results
03 September 2003 - 5:02PM
UK Regulatory
RNS Number:3179P
ATA Group PLC
03 September 2003
ATA GROUP PLC ("ATA Group" or the "Company")
INTERIM RESULTS FOR THE SIX MONTH PERIOD TO 30 JUNE 2003
Highlights
*Turnover #7.5m (2002: #6.2m) an increase of 21 per cent.
*Profit before tax and before exceptional credit #0.45m (2002: #0.38m) an
increase of 18 per cent.
*Profit before tax including exceptional credit #0.50m (2002: #0.64m)
*Earnings per share before exceptional credit 3.71p (2002: 3.28p) an
increase of 13 per cent.
*Dividend per share 2.1p (2002: 2.0p)
*Positive cash generation of #0.4m since 31 December 2002
Bill Douie, Chairman commented:
"In spite of many comments that recovery has commenced, economic conditions
continue to create tough trading conditions, particularly in recruitment.
Nonetheless I am pleased to be able to report another year on year improvement
across the Group as a whole. Group turnover in the six months to 30 June 2003
increased 21% to #7.5m (2002 #6.2m). Profit before tax and before exceptional
credit rose 18% to #0.45m (2002 #0.38m).
ATA Group continues to demonstrate significant underlying strengths and
resilience during trying conditions. We have used the recent period to good
effect in continuing to improve efficiency and to make substantial investments
in IT and other infrastructure for the future.
To this end Andrew Bailey joined the Group Board on 24th April 2003 as
Commercial Director adding further top level skills and providing more time for
both the Chairman and Chief Executive to address Corporate Development matters.
"
Enquiries:
Bill Douie, Chairman
Clive Chapman, Chief Executive
ATA Group Plc
Head Office,
Telephone 01454 310069
CHAIRMAN'S STATEMENT
I am pleased to present the interim report of the Company for the six months to
30 June 2003.
Progress
In spite of many comments that economic recovery has commenced, made more in
hope than on the basis of hard evidence, there are no tangible signs that
activity in general is on an increasing trend. Nonetheless I am pleased to be
able to report another year on year improvement across the Group as a whole.
Trading
General
Economic conditions continue to create tough trading conditions, particularly in
recruitment. Nonetheless, Group turnover in the six months to 30 June 2003
increased 21% to #7.5m (2002 #6.2m). Profit before tax and before exceptional
credit rose 18% to #0.45m (2002 #0.38m). Taking into account the exceptional
credit relating to the disposal of the Fairbourne Hotel profit before tax was
#0.50m (2002 #0.64m including exceptional credit of #0.26m relating to
resolution of disputes over the rateable value of our Derby premises). EPS
excluding the exceptional credit rose 13% to 3.71p.
Recruitment
Recruitment turnover in the period was #3.09m (2002 #2.42m), a rise of 28%.
Operating results fell to a loss of (#0.106m) (2002 profit #0.02m)
During the period a fallback from the buoyant conditions enjoyed by Rail in 2002
occurred, offset by an improvement from Sales and Engineering Technology.
Nonetheless overall the Recruitment Division broadly maintained it's position,
prior to re-organisation costs at Ganymede, compared with the first half of
2002.
The re-organisation of Ganymede Tracklayers Limited, acquired for #1 in October
2002, is largely complete and historic concerns over liabilities to HM Customs
and Excise and to the Inland Revenue are now fully agreed and resolved. Trading
in this formative period has been difficult and has not been helped by the
decision by Network Rail to form it's own Infrastructure Maintenance Company and
to replace the incumbent supplier with whom the Company has a good trading
relationship, in the Reading and Heathrow Express areas. In aggregate these
factors have adversely affected results in the period by in excess of #100,000.
Training
Training turnover in the period was #4.39m (2002 #3.83m) a rise of 14.6%.
Operating profit was #0.59m (2002 # 0.39m)
Trading has been fully up to expectations in the period and profitability
exceeds that in the same period in 2002. The business of Sloan Shrago has been
subsumed into Catalis Rail Training and has continued to make a useful
contribution.
Steady development at Rail Training Audit Services continues with trading at
above budgeted levels. The additional opportunities for business identified at
the mid point of 2002 are now fully operational and trading results for the
period are satisfactory.
Insurance
All industries, but none more so than the Railway Industry, have been adversely
affected by swingeing increases in premiums and this factor has materially
affected the forward momentum of profitability, particularly in the Training
Division.
Exceptional item
As forecast in the recent Annual Report and Accounts, The Fairbourne Hotel has
now been sold and, as a consequence, the trading results for that Company are
treated as discontinued. The disposal of the freehold gave rise to an
exceptional profit which more than offset the trading losses in the final period
before disposal.
Dividends
Whilst this remains a time for prudence your Directors have concluded that cash
generation within the businesses continues to remain at satisfactory levels and
therefore your Board has decided to declare an interim dividend of 2.1p (2002 :
2.0p), payable on 15 December 2003 to shareholders on the register on 21
November 2003.
Outlook
ATA Group continues to demonstrate significant underlying strengths and
resilience during trying conditions. We have used the recent period to good
effect in continuing to improve efficiency and to make substantial investments
in IT and other infrastructure for the future.
To this end Andrew Bailey joined the Group Board on 24th April 2003 as
Commercial Director adding further top level skills and providing more time for
both the Chairman and Chief Executive to address Corporate Development matters.
The strong performance by the Training Division is expected to continue.
Recruitment remains difficult but is poised to participate in general economic
recovery assisted by a move into contract recruitment in both Engineering
Technology and Rail.
W.J.C.Douie, Chairman.
ATA GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
6 months to 30 6 months to 30 12 months to 31
June 2003 June 2002 Dec 2002
(unaudited) (unaudited) (audited)
______________________________________________________
Notes #'000 #'000 #'000 #'000 #'000 #'000
Turnover
Continuing 7,377 5,953 12,572
Operations
Discontinued 106 291 558
Operations ______________________________________________________
2 7,483 6,244 13,130
______________________________________________________
Operating
Profit
Continuing 534 438 1,162
Operations
Discontinued (46) (22) (49)
Operations ______________________________________________________
2 488 416 1,113
Exceptional 3 53 260 352
item
Net interest (35) (32) (41)
payable
______________________________________________________
18 228 311
Profit on 506 644 1,424
ordinary
activities
before
taxation
Tax on profit 4 (152) (200) (500)
on ordinary ______________________________________________________
activities
Profit on 354 444 924
ordinary
activities
after
taxation
Dividends 5 (170) (162) (471)
______________________________________________________
Retained 184 282 453
profit for the
financial
period
______________________________________________________
Earnings per 6 4.36 5.49 11.41
share (pence)
Earnings per 6 3.71 3.28 8.64
share (pence) ______________________________________________________
before
exceptionals
ATA GROUP PLC
CONSOLIDATED BALANCE SHEET
As at As at As at
30 Jun 03 30 Jun 31 Dec
2003 2002 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
FIXED ASSETS
Intangible assets 1,123 1,185 1,181
Tangible assets 2,174 2,154 2,375
_______________________________________
3,297 3,339 3,556
_______________________________________
CURRENT ASSETS
Stock 12 26 20
Debtors falling due after 834 860 843
more than one year
Debtors falling due within 3,897 2,996 4,391
one year
Cash at bank (net of 531 654 131
overdraft)
_______________________________________
5,274 4,536 5,385
CREDITORS: Due within one (4,460) (3,987) (4,850)
year
_______________________________________
NET CURRENT ASSETS 814 549 535
_______________________________________
TOTAL ASSETS LESS CURRENT 4,111 3,888 4,091
LIABILITIES
CREDITORS: Due after more (405) (538) (569)
than one year
PROVISIONS FOR LIABILITIES (201) (231) (201)
AND CHARGES
_______________________________________
NET ASSETS 3,505 3,119 3,321
_______________________________________
CAPITAL AND RESERVES
Called up share capital 81 81 81
Share premium account 1,763 1,732 1,763
Capital redemption 50 50 50
reserve
Profit and loss account 1,611 1,256 1,427
_______________________________________
SHAREHOLDERS' FUNDS 3,505 3,119 3,321
_______________________________________
ATA GROUP PLC
CONSOLIDATED CASHFLOW STATEMENT
6 Months 6 Months 12 Months
to to to
30 Jun 2003 30 Jun 2002 31 Dec 2002
(unaudited) (unaudited) (audited)
Notes #'000 #'000 #'000
CASH INFLOW /
(OUTFLOW) FROM
OPERATING 7 801 (203) 569
ACTIVITIES
Returns on (35) (32) (41)
investments and
servicing of
finance
Taxation (200) - (249)
Payments to acquire (470) (97) (602)
tangible fixed
assets
Receipts on disposal 447 - 72
of tangible fixed
assets
Net debt acquired - - (26)
with subsidiary
Equity dividends - - (438)
paid
_____________________________________
Net cash inflow /
(outflow) before use
of
liquid resources and 543 (332) (715)
financing
Decrease in medium (129) (188) (266)
term loans
Capital element of (14) (3) (32)
finance lease rental
payments
_____________________________________
INCREASE / 400 (523) (1,013)
(DECREASE) IN CASH _____________________________________
BALANCES
ATA GROUP PLC
NOTES TO THE INTERIM STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2003
1. ACCOUNTING POLICIES
The accounting policies used in the preparation of the interim accounts are
consistent with those used in the preparation of the audited annual accounts for
the year ended 31 December 2002. The Group financial information consolidates
the accounts of ATA Group Plc and all its material subsidiary undertakings using
the acquisition method.
The comparative figures for the year ended 31 December 2002 do not constitute
statutory accounts within the meaning of S.240 of the Companies Act 1995, but
they have been derived from the audited financial statements for that year,
which have been filed with the Registrar of Companies. The report of the
auditors was unqualified and did not contain a statement under section 237 (2)
or (3) of the Companies Act 1985.
2. SEGMENTAL ANALYSIS
6 Months to 6 Months to 12 Months to
30 Jun 2003 30 Jun 2002 31 Dec 2002
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
TURNOVER
Recruitment 3,092 2,416 5,250
Training and 4,392 3,828 7,880
consultancy
______________________________________________
7,483 6,244 13,130
______________________________________________
OPERATING PROFIT
Recruitment (106) 21 246
Training and 594 395 867
consultancy
______________________________________________
488 416 1,113
==============================================
Operating profit is stated after amortisation of goodwill of #36,000 in the
period (2002: #39,000).
Discontinued operations relate to Fairbourne Hotel Ltd and Fairbourne Adventure
Ltd.
3. EXCEPTIONAL ITEM
A profit of #53,000 arose on the disposal of the Fairbourne Hotel on 10 June
2003. The 2002 exceptional item relates to the release of an overprovision for
rates previously provided
4. TAX ON PROFIT ON ORDINARY ACTIVITIES
The tax on profit on ordinary activities for the period to 30 June 2003 has been
provided at the estimated rate applicable to the group for the period.
5. DIVIDENDS
An interim dividend of 2.1p per ordinary share net will be paid on 15 December
2003 to shareholders on the register of members at 21 November 2003.
6. EARNINGS PER SHARE
The earnings per share have been calculated on the profit on ordinary activities
after taxation, both before and after exceptional items, and on the number of
shares in issue (8,122,812) during the period. The fully diluted earnings per
share is not materially different from the basic earnings per share and has not
been disclosed.
7. CASH FLOW
RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES
2003
#
Operating profit 488,000
Amortisation 36,000
Depreciation 298,000
Decrease in stocks 8,000
Decrease in debtors 498,000
Decrease in creditors (527,000)
___________
Net cash inflow from operating activities 801,000
===========
ANALYSIS OF CHANGES IN NET DEBT
At 1 Jan 2003 Cash flows At 30 Jun 2003
# # #
Net cash:
Cash in hand and at 131,000 400,000 531,000
bank
______________________________________________
Debt:
Debt due within 1 year (260,000) - (260,000)
Debt due after 1 year (496,000) 129,000 (367,000)
HP and finance leases (158,000) 14,000 (144,000)
______________________________________________
(914,000) 143,000 (771,000)
______________________________________________
Net debt (783,000) 543,000 (240,000)
==============================================
ATA GROUP PLC
Registered Office
Kingston House,
Oaklands Business Park,
Armstrong Way,
Yate,
South Gloucestershire BS37 5NA
Approved and authorised for release
for and on behalf of ATA Group Plc
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The company news service from the London Stock Exchange
END
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