RNS Number:1184S
Mice Group PLC
17 November 2003
FOR IMMEDIATE RELEASE 17 NOVEMBER 2003
MICE GROUP PLC
Interim Results for the six months ended 31 August 2003
MICE Group Plc, the international marketing support services group, announces
record results for the six months to 31 August 2003.
Highlights:
* Turnover up 12% to #66.4 million (2002: #59.6 million)
* Increase in gross margin to 34% (2002: 32%)
* Operating profit has grown by 13% to #4.2 million (2002: 3.7 million)
* Earnings per share, excluding exceptionals, has grown by 5% to 2.40p
(2002: 2.29p)
* Cash inflow from operating activities of #2.7 million (2002: #7.1
million outflow)
* Increase in interim dividend per share of 4% to 0.50p per share (2002:
0.48p per share)
Commenting on the results, Chairman Michael Curley, said:
"We are again pleased to report a period of strong growth which demonstrates the
resilience of our strategy against a background of difficult worldwide trading
conditions. The record level of orders and enquiries indicates that our progress
is sustainable."
Enquiries:
MICE Group Plc 020 7466 5000(today only)
Michael Curley, Chairman 01676 542000
Buchanan Communications 020 7466 5000
Bobby Morse
CHAIRMAN'S STATEMENT
REVIEW OF RESULTS
We are again pleased to report a period of strong growth which demonstrates the
resilience of our strategy against a background of difficult worldwide trading
conditions. In May 2003 it was indicated that we were experiencing particular
delays to projects in the Middle East and had various orders deferred because of
the Iraqi war. We also had orders for events cancelled in China and Canada as a
result of the SARS virus. Despite all of this we have again achieved record
first half results.
Group turnover for the six months ended 31 August 2003 increased by 12% to #66.4
million (2002: #59.6
million) and the further strengthening of our creative design and project
management services produced an increase in gross margin to 34% (2002: 32%).
Total operating profit has grown by 13% to #4.2 million (2002: #3.7 million)
despite the downward pressure on operating margins and the investment in
overheads required to generate our record order and enquiry levels.
During the six months the Group generated a net cash inflow from operating
activities of #2.7 million. The #10.5 million increase in net interest bearing
debt was due to the settlement of past acquisition considerations and necessary
investment in capital expenditure.
Earnings per share for the six months has grown by 5% to 2.40p (2002: 2.29p
before exceptional gain).
Following these results the Board has recommended an interim dividend of 0.5p
per share which is a 4% increase over the previous years' interim payment.
These results again show that, despite the background of worldwide trading
difficulties, the Group continues to grow successfully by delivering solutions
to national, multinational and global clients.
INTERNATIONAL DIVISION
The International Division provides design services, project management and the
organisation of conferences, road shows, leisure projects, product launches and
international events.
The Division generated 53% of the Group's turnover during the six month period
and 60% of the Group's gross profit. This reflects an increase in the number of
multinational organisations using the Group.
In March 2003 six branches of Colorco were acquired and these central London
locations have now been fully re-launched as Expocentric communication centres
to serve the outsourcing needs of financial institutions, government departments
and commercial clients.
U.K. DIVISION
The operating companies within the U.K. Division work closely with the other
divisions of MICE Group to support the provision of a turnkey range of services,
with approximately ten per cent of their sales being made to fellow Group
companies.
The Division continues its strategy of integrating and rationalising its
businesses. As part of this programme the Reflections, point of sale display,
business has been integrated into the Silver Knight site near Coventry and
Essanby have relocated their point of sale operations in Hertford. The
amalgamation and rationalisation of operations, which may impair the carrying
value of certain assets, is already producing a more efficient production and
selling platform for the Division.
Difficult trading conditions in the Middle East have affected the Division and a
major project has recently been severely disrupted by fire. On the other hand,
the Division has benefited from substantial intercompany work towards the end of
the six-month period thereby enhancing the overall margin of the Group.
NORTH AMERICAN DIVISION
The various operating companies located in the U.S.A. and Canada work closely
together with the rest of the Group in delivering an integrated solution to
clients who require below the line marketing services in the North American
market and other parts of the world.
The North American Division continues to expand and has just experienced its
third consecutive quarter of revenue growth delivering 23% of the Group's gross
profit for the six months ended 31 August 2003. This compares with 15% during
the first six months of the previous year.
Further offices have been opened in Atlanta, Georgia and in Ottawa, Ontario. The
portfolio of projects being secured and delivered within North America is
supporting the development of strategic partnerships and new business
opportunities. We are also pleased with the progress being made by last year's
acquisitions as they work together by providing an integrated solution for the
marketing requirements of our clients.
FINANCIAL RESOURCES
In August 2003 we completed the negotiation of an #80 million multicurrency term
and revolving facility with Barclays, RBS and HSBC. In addition, the terms of
the facility are such that the Group has access to a further #28 million of
funds. The enhanced banking resource will help to support organic growth
opportunities and further acquisitions.
CURRENT TRADING AND OUTLOOK
We have demonstrated the resilience of our strategy which has gained the support
of a growing number of international clients by providing marketing services
that deliver measurable and enhanced returns to a target audience. Currently our
order book stands at a record level of #65 million.
There are early signs that economic conditions are improving and that
multinational organisations are again beginning to focus on revenue growth as
well as the efficiency of procurement. We are well placed to support both
existing and potential clients with value added below-the-line marketing
services.
Our strategy remains that of acting as a catalyst for consolidation within a
highly fragmented market whilst at the same time promoting strong organic
growth. We continue to look for opportunities to further develop the range and
geographic spread of our operations.
The Group's proven track record for delivering growth, the opportunities for
further expansion and the supportive financing arrangements in place all
indicate that successful progress will continue to be achieved.
Michael Curley
Chairman
Group Profit and Loss Account
for the six months ended 31 August 2003
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 August 31 August 28 February
2003 2002 2003
#'000 #'000 #'000
Turnover - continuing 64,616 59,566 120,341
operations
- acquisitions 1,830 - -
--------- -------------------- --------- ----------- -----------
66,446 59,566 120,341
Cost of sales (43,959) (40,432) (79,784)
---------------------------- --------- ----------- -----------
Gross profit 22,487 19,134 40,557
Selling and administrative (18,328) (15,421) (31,943)
expenses --------- ----------- -----------
----------------------------
Operating - continuing 4,007 3,713 8,614
profit operations
- acquisitions 152 - -
--------- ----------- -----------
Group operating 4,159 3,713 8,614
profit
Share of operating 25 (13) (11)
profit / (loss) of --------- ----------- -----------
associate
Total operating profit 4,184 3,700 8,603
---------------------------- --------- ----------- -----------
Profit on disposal of fixed assets - 1,620 1,630
note 3 --------- ----------- -----------
----------------------------
Profit/on ordinary activities 4,184 5,320 10,233
before interest --------- ----------- -----------
----------------------------
Net - Group interest (1,075) (617) (1,542)
interest
payable
- Share of interest of 1 7 18
associate --------- ----------- -----------
Net interest payable (1,074) (610) (1,524)
--------- -------------------- --------- ----------- -----------
Profit on ordinary activities 3,110 4,710 8,709
before taxation
Taxation (902) (956) (2,155)
---------------------------- --------- ----------- -----------
Profit/on ordinary activities 2,208 3,754 6,554
after taxation
Minority interests - equity 24 (55) 36
---------------------------- --------- ----------- -----------
Profit attributable to ordinary 2,232 3,699 6,590
shareholders
Dividends note 4 (465) (417) (1,610)
---------------------------- --------- ----------- -----------
Retained profit for the period 1,767 3,282 4,980
---------------------------- --------- ----------- -----------
Pre-exceptional Earnings Per Share 2.40p 2.29p 5.56p
note 5
Pre-exceptional Diluted Earnings 2.37p 2.27p 5.49p
Per Share
Basic Earnings Per Share note 5 2.40p 4.08p 7.38p
Diluted Earnings Per Share note 5 2.37p 4.03p 7.29p
--------- ----------- -----------
Group Balance Sheet
as at 31 August 2003
Unaudited Unaudited Audited
as at as at as at
31 August 31 August 28 February
2003 2002 2003
#'000 #'000 #'000
Fixed assets
Intangible fixed assets 43,850 24,087 42,109
Tangible fixed assets and investments 41,918 31,485 39,762
---------------------------- --------- ----------- -----------
85,768 55,572 81,871
Current assets
Stocks and work in progress 8,617 4,887 9,452
Debtors 25,710 25,024 23,285
Cash at bank and in hand 7,539 1,123 6,419
---------------------------- --------- ----------- -----------
41,866 31,034 39,156
Creditors
Amounts falling due within one year (33,793) (25,568) (39,043)
---------------------------- --------- ----------- -----------
Net current assets 8,073 5,466 113
---------------------------- --------- ----------- -----------
Total assets less current liabilities 93,841 61,038 81,984
Creditors
Amounts falling due after more than one (44,411) (20,114) (33,770)
year
Provisions for liabilities and
charges
Deferred taxation (1,000) (1,152) (976)
---------------------------- --------- ----------- -----------
Net assets 48,430 39,772 47,238
---------------------------- --------- ----------- -----------
Capital and reserves
Called up share capital 3,763 3,527 3,758
Share premium account 19,022 15,571 18,939
Unissued shares 3,517 1,585 3,517
Reserves 22,551 19,252 21,492
---------------------------- --------- ----------- -----------
Shareholders' funds 48,853 39,935 47,706
Minority interests - equity (423) (163) (468)
---------------------------- --------- ----------- -----------
48,430 39,772 47,238
--------- ----------- -----------
Group Cash Flow Statement
for the six months ended 31 August 2003
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31August 31 August 28 February
2003 2002 2003
#'000 #'000 #'000
Operating profit 4,159 3,713 8,614
Depreciation of tangible fixed 1,933 1,757 3,322
assets
Profit on disposal of tangible (431) - (103)
fixed assets
Increase in working capital (2,970) (12,596) (11,778)
---------------------------- --------- ----------- -----------
Net cash inflow / (outflow) from 2,691 (7,126) 55
operating activities
Dividend from associate 33 - -
Returns on investments and (1,066) (610) (1,496)
servicing of finance
Taxation paid (71) (415) (492)
Capital (expenditure) / disposals (1,940) 725 (5,512)
and financial investment
Acquisitions and disposals (8,557) (5,816) (10,896)
---------------------------- --------- ----------- -----------
(8,910) (13,242) (18,341)
Equity dividends paid (1,180) (736) (1,153)
---------------------------- --------- ----------- -----------
Net cash outflow before use of (10,090) (13,978) (19,494)
liquid resources and financing
Financing - issue of shares - - 2,711
- purchase of own shares - (2,984) (2,984)
- loans and finance leases 10,835 (9,479) 3,591
---------------------------- --------- ----------- -----------
Increase / (decrease) in cash 745 (26,441) (16,176)
during the period --------- ----------- -----------
----------------------------
RECONCILIATION OF NET CASH FLOW
TO MOVEMENT IN NET (DEBT) / CASH
note 6
Net (debt) / cash at start of the (21,574) 41 41
period
Increase / (decrease) in cash 745 (26,441) (16,176)
during the period
Loans and finance leases (10,835) 9,242 (5,777)
Currency translation differences (398) 241 338
---------------------------- --------- ----------- -----------
Net debt at the end of the (32,062) (16,917) (21,574)
period --------- ----------- -----------
----------------------------
Notes to the Interim Results
1. COPIES OF UNAUDITED INTERIM REPORT
This statement is being sent to shareholders on 17 November 2003 and can be
obtained by the public from the company's registered office at 10 Arley Park,
Colliers Way, Arley, Coventry CV7 8HN.
2. FINANCIAL INFORMATION
The financial information for the six months ended 31 August 2003 has not been
audited nor has the financial information for the equivalent period in 2002.
The interim report has been prepared on a consistent basis using accounting
policies set out in the February 2003 annual report.
The figures for the 12 months ended 28 February 2003 do not constitute the
Group's full statutory financial statements. Full statutory statements have been
delivered to the Registrar of Companies.
3. NON OPERATING EXCEPTIONAL ITEMS
The profit on disposal of fixed assets in 2002 arose from the sale and operating
leaseback of premises.
4. DIVIDENDS
The Directors are recommending the payment of an interim dividend of 0.5p per
share which will be paid on 15 December 2003 to shareholders on the register at
28 November 2003.
5. EARNINGS PER SHARE
Earnings per share is calculated as follows
6 MONTHS TO 31 AUGUST 2003 6 MONTHS TO 31 AUGUST 2002
PENCE PROFIT NUMBER PENCE PROFIT NUMBER
PER SHARE #'000 OF SHARES PER SHARE #'000 OF SHARES
Pre-exceptional 2.40p 2,232 2.29p 2,079
net profit for ------- -------
the period
Exceptional - 1,620
profit on --------- ---------
disposal of
fixed assets
Net profit for 2,232 3,699
the period
Weighted average 92,897,151 90,621,374
number of
shares
Basic Earnings 2.40p 4.08p
Per Share ------- -------
Number of shares 2,757,957 1,523,026
under option
Number of shares (1,534,980) (400,080)
that would be --------- ------- --------- -------
issued at fair
value
Diluted Earnings 2.37p 2,232 94,120,128 4.03p 3,699 91,744,320
Per Share ------- --------- ------- ------- --------- -------
6. ANALYSIS OF CHANGES IN NET DEBT
AS AT CASH OTHER EXCHANGE AS AT
01.03.03 ACQUISITONS FLOWS CHANGES MOVEMENTS 31.08.03
#'000 #'000 #'000 #'000 #'000 #'000
------- --------- ------- ------- --------- -------
Cash at bank 6,419 - 1,312 - (192) 7,539
and in
hand
Bank (979) - (567) - - (1,546)
Overdrafts ------- --------- ------- ------- --------- -------
5,440 - 745 - (192) 5,993
------- --------- ------- ------- --------- -------
Debt due (1,316) - - (209) - (1,525)
within one
year
Debt due (25,698) - (10,835) 209 (206) (36,530)
after more ------- --------- ------- ------- --------- -------
than one
year (27,014) - (10,835) - (206) (38,055)
------- --------- ------- ------- --------- -------
------- --------- ------- ------- --------- -------
(21,574) - (10,090) - (398) (32,062)
------- --------- ------- ------- --------- -------
This information is provided by RNS
The company news service from the London Stock Exchange
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