RNS Number:4626J
Boot(Henry) PLC
01 April 2003
PRELIMINARY STATEMENT OF UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2002
Henry Boot PLC, the construction and property group, announces its unaudited
results for the year ended 31 December 2002.
HIGHLIGHTS
PROFIT BEFORE TAX UP 27.8%
PROFIT BEFORE TAX AND DISPOSAL OF DISCONTINUED OPERATIONS UP 12.6%
EARNINGS PER SHARE UP 29.8%
BASIC EARNINGS PER SHARE EXCLUDING PROFIT ON SALE OF DISCONTINUED OPERATIONS UP
9.4%
DIVIDEND UP 10.7%
NET ASSETS PER ORDINARY SHARE UP 14.2%
PROPOSED SALE OF HENRY BOOT HOMES
John Reis, Chairman, comments:
"I am extremely pleased to report that another year's successful trading has
again produced record pre-tax profit and earnings."
"A major contribution to this year's successful out-turn was made by our
Property Development activity which again had a very good year."
"The Land Trading activity also played an important role and achieved a number
of notable acquisition and planning successes in the year."
"....our ongoing businesses will be greatly enhanced by directing the proceeds
from the sale of the housebuilding operation into the higher margin Property
Development and Land Trading activities......"
Enquiries: Jamie Boot, Group Managing Director - Tel: 0114 2555 444
CHAIRMAN'S STATEMENT
I am extremely pleased to report that another year's successful trading has
again produced record pre-tax profit and earnings. As a result, the group's
profit growth has been maintained for a seventeenth successive year.
In summary, profit before tax (excluding #2 million profit from the sale of
Henry Boot Management Limited, our Specialist Construction activity) amounted to
#15.l million, which represents a 12.6% increase on the #13.4 million profit for
2001. This was achieved on a gross turnover of #217 million, slightly down on
the previous year's #231 million.
The proposed sale of our Specialist Construction activity to its management team
was detailed in the circular sent to shareholders on 3 December 2002, and was
overwhelmingly supported at the EGM on 19 December 2002. After accounting for
all costs, a profit of #2 million was realised on the sale and earmarked for
further investment in the group's Property Development and Land Trading
activities. At the same time, we reduced our exposure to inherent risks in the
construction market. Therefore, group profit before tax, inclusive of the
disposed business, amounted to #17.1 million for the year.
Headline basic earnings per ordinary share advanced from 39.3p in 2001 to 51.0p.
Prior to the inclusion of profit on the sale of the discontinued business,
earnings amounted to 43.0p, a near 10% increase. Net interest receivable of
#56,000, excluding associates, compares with interest payable of #628,000 and is
attributed to substantially lower levels of borrowing through the year.
TRADING SUMMARY
Whilst our trading in the past year has been extremely satisfactory, we have at
the same time been careful in countering the general uncertainty prevailing
within our markets. This issue not only affects customer confidence, but it also
presents us with problems in the fiscal and planning regimes in which we
operate.
A major contribution to this year's successful out-turn was made by our Property
Development activity which again had a very good year. This was achieved through
a blend of schemes coming to fruition, investment sales, land sales and rental
income. At the same time, good progress was made with planning and preparatory
works in readiness for 2003 and onwards.
The Land Trading activity also played an important role and achieved a number of
notable acquisition and planning successes in the year. Significant land sales
were also completed.
Although the 694 completions achieved within the New Homes business was
marginally down on the 713 of last year, they were sold at an average price of
#124,000 - a healthy 14% increase. However, the continuing need to replenish the
land bank at soaring land prices, coupled with considerable delays being
experienced in the planning process, present increased risks to a group of our
size. A proposal to sell Henry Boot Homes Limited is being announced today, and
the circular dealing with this matter is being despatched to shareholders.
As predicted, the Construction business had a better year in improving both
turnover and profit. Negotiated partnered projects are increasingly important in
our forward workload.
The Plant Hire business achieved better than anticipated results despite a
number of unexpected bad debts. Both turnover and margins improved as the
company introduced further investment in power tool hire facilities and reduced
its exposure to a saturated access equipment market.
Following a year of change and mixed fortunes in 2001, the Training activity
directed its resources further into the private sector and the Construction
Skills Certification Scheme. The problem in maintaining recruits to construction
apprenticeship courses continues to be exacerbated by the general skills
shortage faced by the industry.
FINANCIAL POSITION, DIVIDENDS AND OUTLOOK
The group entered 2003 with a strong balance sheet and with some significant
risks eliminated for the future. Net Assets, at 361p per share, have increased
considerably in the year by 14.2% from 316p.
The group is well placed to seize on market opportunities as they arise. Our
Property, Land Trading, Construction and associated businesses are moving
forward with strong order books and market positions that should ensure another
successful year.
In addition, our ongoing businesses will be greatly enhanced by directing the
proceeds from the sale of the housebuilding operation into the higher margin
Property Development and Land Trading activities, whilst at the same time
reducing the cash demands and risks to the group as a whole.
Having regard to the positive outlook for our overall trading prospects, your
directors have little hesitation in recommending a further substantial rise in
dividends. It is proposed to pay a final dividend of 9.8p (2001 : 8.8p),
bringing the total for the year to 13.4p (2001 : 12.1p), representing a 10.7%
increase in line with profit growth and earnings.
PENSIONS
Much has been written recently in respect of the problems that surround
pensions, and in particular the plight of Final Salary Schemes. The Company's
Scheme is not immune to the collapse in world stock markets, which in turn has
led to a substantial decrease in the Scheme's assets and increase in liabilities
disclosable under FRS17. Your directors are continuing to review the position of
the Group's Final Salary Scheme during this period of heightened volatility.
EMPLOYEES
It is again my pleasure to acknowledge the valued contribution made during the
year by all Henry Boot Group employees. We have achieved another period of
continuing profit growth, and this is indeed testimony to their endeavour and
team spirit over this time.
In the increasingly challenging conditions we encountered last year, our group
performance was very satisfying. In saying that, however, we must remain mindful
of our need to be flexible and to be able to react to suit changing market
circumstances.
On behalf of the Board, I sincerely thank everyone for their hard work and for
helping the company to achieve its 2002 results.
J S Reis
1 April 2003
Summarised Group Profit & Loss Account for the year ended 31 December 2002
2002 2001
Unaudited Audited
As restated
#000 #000
Turnover - continuing operations
Group and share of associates 178,990 194,028
Less: Share of associates' turnover 3,416 2,669
--------- --------
175,574 191,359
Discontinued operations 41,753 40,096
--------- --------
Group turnover 217,327 231,455
Cost of sales 186,505 203,169
--------- --------
Gross profit 30,822 28,286
Administrative expenses 16,957 15,275
--------- --------
13,865 13,011
Other operating income 38 35
--------- --------
Operating profit
--------- --------
Continuing operations 13,618 12,462
Discontinued operations 285 584
--------- --------
13,903 13,046
Share of associates' operating profits 1,445 1,261
--------- --------
Group operating profit 15,348 14,307
Profit on sale of discontinued operations 2,039 -
Interest 56 (628)
Interest - share of associates (303) (269)
--------- --------
Profit on ordinary activities before taxation 17,140 13,410
Tax on profit on ordinary activities 4,256 3,619
--------- --------
Profit for the financial year after taxation 12,884 9,791
========= ========
Dealt with as follows:
Dividends (including non-equity) 3,416 3,059
Profit retained 9,468 6,732
--------- --------
12,884 9,791
========= ========
Basic earnings per ordinary share 51.0p 39.3p
========= ========
Diluted earnings per ordinary share 49.7p 38.1p
========= ========
Basic earnings per ordinary share excluding 43.0p 39.3p
profit on sale of discontinued operations
========= ========
Summarised Group Balance Sheet at 31 December 2002
2002 2001
Unaudited Audited
#000 #000
Fixed assets 35,289 34,153
--------- --------
Current assets
Stocks 99,473 94,422
Debtors 17,883 15,082
Cash at bank and in hand 14,030 18,653
Creditors: amounts falling due within one year (59,438) (65,497)
--------- --------
Net current assets 71,948 62,660
--------- --------
Total assets less current liabilities 107,237 96,813
Creditors: amounts falling due after more than (11,442) (12,579)
one year
Provisions for liabilities and charges (1,898) (2,587)
--------- --------
Net assets employed 93,897 81,647
========= ========
Capital and reserves
Called up share capital 2,989 2,968
Capital redemption reserve 271 271
Share premium account 2,158 1,698
Property revaluation reserve 14,136 12,010
Profit and loss account 73,648 64,174
Other reserves 695 526
--------- --------
Shareholders' funds 93,897 81,647
========= ========
Being:
Non-equity shareholders' funds 400 400
Equity shareholders' funds 93,497 81,247
--------- --------
93,897 81,647
========= ========
Group Statement of Total Recognised Gains and
Losses for the year ended 31 December 2002
2002 2001
Unaudited Audited
#000 #000
Profit for the financial year 12,884 9,791
Unrealised surplus on property revaluation 2,471 551
Elimination of revaluation surplus on transfer (339) (253)
of properties to stocks
--------- --------
Total recognised gains and losses for the year 15,016 10,089
========= ========
Summarised Group Cash Flow Statement for the
year ended 31 December 2002
2002 2001
Unaudited Audited
#000 #000
Net cash inflow from operating activities 12,043 36,275
Dividends received from associates 695 695
Returns on investment and servicing of finance (34) (672)
Taxation (3,809) (2,884)
Capital expenditure and financial investment (3,374) (267)
Acquisitions and disposals (6,335) (392)
Equity dividends paid (3,130) (2,802)
--------- --------
Cash (outflow)/inflow before use of liquid (3,944) 29,953
resources and financing
Financing (679) (203)
--------- --------
(Decrease)/increase in cash (4,623) 29,750
========= ========
Notes to Group Cash Flow Statement
2002 2001
Unaudited Audited
#000 #000
Reconciliation of net cash flow to movement in
net funds
(Decrease)/increase in cash (4,623) 29,750
Cash outflow from decrease in lease financing 1,160 802
New finance leases - (3,264)
--------- --------
Net cash flow in year (3,463) 27,288
Net funds/(debt) at 31 December 2001 4,998 (22,290)
--------- --------
Net funds at 31 December 2002 1,535 4,998
========= ========
2002 2001
Unaudited Audited
#000 #000
Reconciliation of operating profit to operating
cash flow
Operating profit 13,903 13,046
Depreciation and amortisation 4,224 4,118
Profit on sale of tangible fixed assets (208) (148)
(Increase)/decrease in stocks (5,048) 13,411
(Increase)/decrease in debtors (8,766) 6,088
Increase/(decrease) in creditors and 7,938 (240)
provisions
--------- --------
Net cash inflow from operating activities 12,043 36,275
========= ========
Analysis of net funds
At 31.12.01 Cash flows At 31.12.02
Audited Unaudited Unaudited
#000 #000 #000
Cash at bank 18,653 (4,623) 14,030
Bank loans (10,000) - (10,000)
---------
Decrease in cash (4,623)
Finance leases (3,655) 1,160 (2,495)
-------- --------- --------
4,998 (3,463) 1,535
========= ========= =========
Notes
1 The comparative figures for the year ended 31 December 2001
have been extracted from the Company's statutory accounts which received an
unqualified Auditors' report and did not contain a statement under Section 237
(2) or (3) of the Companies Act 1985. The extracted Group Profit and Loss
Account figures ended 31 December 2001 have been restated to reflect the results
of activities discontinued during 2002. Statutory accounts for the year ended 31
December 2001 have been delivered, and those for the year ended 31 December 2002
will be delivered, to the Registrar of Companies following Henry Boot's Annual
General Meeting to be held on 23 May 2003.
2 At the Board meeting held on 31 March 2003 the Directors
formally approved the issue of these statements.
3 The financial information has been prepared using accounting
policies consistent with those adopted by the group in its accounts for the year
ended 31 December 2001.
4 The Annual Report 2002 is to be published and sent to
shareholders on 22 April 2003. Copies will be available from The Company
Secretary, Henry Boot PLC, Banner Cross Hall, Sheffield, S11 9PD.
5 The Annual General Meeting of the Company is to be held at the
Sheffield Moat House, Chesterfield Road South, Sheffield, S8 8BW on Friday 23
May 2003 at 11.30am.
6 The final dividend will be paid on 5 June 2003, with a record
date of 23 May 2003.
This information is provided by RNS
The company news service from the London Stock Exchange
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