RNS Number:0798J
Meriden Group PLC
24 March 2003
24 March 2003
Enquiries:
Russell Stevens, Chief Executive 0121 504 0992
Meriden Group Plc russell@meriden-group.co.uk
David Bick/Trevor Phillips 020 7929 5599
Holborn Trevor.Phillips@holbornpr.co.uk
Hugh Oram 020 7710 7400
Nabarro Wells & Co.Limited HughOram@nabarro-wells.co.uk
Meriden Group Plc (the "Company")
Interim results for the 6 months ended 31 January 2003
Highlights
* Profit before tax up 20% to #306,371 (2002: #253,930
* Turnover up 6.5% to #2,865,327 (2002: #2,678,298)
* Interim Dividend of 0.1p representing half of the maiden year's dividend
Commenting on the results Russell Stevens, Chief Executive said:
"I am very pleased to report a 20% increase in pre tax profits on turnover up
6.5%. This is a very satisfying result given the current economic climate. We
have increased profitability by keeping a tight rein on operating costs and will
continue to do so over the rest of the year.
We have opened a centre in London that is currently offering marketing services
to a blue chip client base and we continue to explore opportunities for further
operating sites. However, we will only open these where we are confident that
they will contribute earnings growth and increase shareholder value."
Meriden Group Plc (the "Company")
Interim results for the six months ended 31 January 2003
Chairman's Statement
I am pleased to present my Chairman's report for Meriden Group Plc for the
period ended 31 January 2003.
The Group has performed satisfactorily during this period, delivering a pre-tax
profit of #306,371 (2002: #253,930) on a turnover of #2,865,327 (2002:
#2,678,298) and having cash balances at the end of the period of #660,920 (2002:
#703,447).
We are particularly pleased that the Board is recommending an interim dividend
of 0.1p per share, which represents half of the dividend voted in the last
financial year. The Board will review the full year's dividend recommendation
when the annual results are known.
The Group was admitted to the Alternative Investment Market in August 2001 and
has continued to follow the strategy set out in the Admission Document. We have
consolidated on the good start we made last year and have eight operating
divisions delivering a wide range of services to the business and public service
communities. The composition of the divisions has evolved during the period as
a consequence of the Group's policy to continually review the performance of
each division and to streamline or divest as appropriate. Our attractive
performance-driven remuneration packages and dynamic business environment means
that we are able to attract high calibre individuals to senior positions in the
divisions. This divisional structure and scope of the services provided will
continue to evolve as the demands of the market place change. The Group will
maintain its policy of taking a cautious approach to the establishment of new
divisions.
While the Group's progress has been satisfactory, the adverse market conditions
have meant that we have made less progress than planned in opening additional
operating centres. We have established one Centre in London, which is initially
concentrating on delivering our marketing services, and we will continue to
search for suitable opportunities across the country. However, we will only act
if we are confident that the proposed Centre will deliver robust earnings growth
for the Group and enhance the brand.
My fellow Board members and I continue to be grateful for the high levels of
competence and commitment from all members of the Meriden team. We are
confident of further satisfactory progress in the next six months.
Derek Hall
24 March 2003
Consolidated Profit and Loss Account for the 6 months ended 31 January 2003
Note 6 months ended Period ended Period
31 January 2003 31 January ended
(unaudited) 2002 31 July 2002
# (unaudited) (audited)
# #
Turnover 2,865,327 2,678,298 5,511,923
Cost of sales (2,197,653) (2,242,539) (4,101,319)
_________ _________ _________
Gross Profit 667,674 435,759 1,410,604
Administration Expenses (367,129) (188,673) (809,421)
_________ _________ _________
Operating Profit 300,545 247,086 601,183
Interest Receivable 5,826 6,844 8,106
_________ _________ _________
Profit on ordinary activities before taxation 306,371 253,930 609,289
Taxation (91,533) (76,179) (174,578)
_________ _________ _________
Profit for the financial period 214,838 177,751 434,711
Dividends (29,000) - (58,000)
_________ _________ _________
Retained profits 185,838 177,751 376,711
_________ _________ _________
Basic earnings per share (pence) 3 0.74 1.04 2.05
Earnings per share in trading period (pence) 3 0.74 0.61 1.50
Dividend per share (pence) 0.10 - 0.20
_________ _________ _________
The company has no recognised gains or losses other than the profit for the
period, which has been derived from continuing operations.
The company was incorporated on 15th February 2001 and commenced trading on 14th
August 2001. The periods ended 31 January 2002 and 31 July 2002 therefore
represent a trading period of 170 and 351 days respectively.
Consolidated Balance Sheet as at 31 January 2003
Note As at As at As at
31 January 31 January 2002 31 July 2002
2003 (unaudited) (audited)
(unaudited) # #
#
Fixed assets
Tangible assets 294,057 381,282 364,731
Fixed asset investments 177,853 - 177,853
_________ _________ _________
471,910 381,282 542,584
Current assets
Stocks and work in progress 59,684 185,389 67,228
Debtors 1,603,309 192,799 1,287,120
Cash at bank and in hand 660,920 703,447 538,817
_________ _________ _________
2,323,913 1,081,635 1,893,165
Current liabilities falling due within one year (1,350,281) (409,610) (1,168,414)
_________ _________ _________
Net current assets 973,632 672,025 724,751
Total assets less current liabilities 1,445,542 1,053,307 1,267,335
Provisions for liabilities and charges (69,638) - (77,269)
_________ _________ _________
Net assets 1,375,904 1,053,307 1,190,066
_________ _________ _________
Capital and reserves
Called up share capital 290,000 290,000 290,000
Share premium 523,355 585,556 523,355
Profit and loss account 562,549 177,751 376,711
_________ _________ _________
Equity shareholders' funds 4 1,375,904 1,053,307 1,190,066
_________ _________ _________
Consolidated Cash Flow Statement for the 6 months ended 31 January 2003
Note 6 months Period ended 31 Period ended 31
ended 31 January 2002 July 2002
January 2003 (unaudited) (audited)
(unaudited) # #
#
Net cash inflow from operating activities 5 152,179 220,999 331,171
Return on investments
Interest received 5,826 6,844 8,106
Net cash inflow from returns on investment and
servicing of finance 5,826 6,844 8,106
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (18,199) (399,952) (436,169)
Payments to acquire fixed asset investments - - (177,853)
Receipts from the sale of tangible fixed assets 40,297 - 207
_________ _________ _________
Net cash inflow/(outflow) from capital 22,098 (399,952) (613,815)
expenditure and financial investments
Dividend paid (58,000) - -
_________ _________ _________
Net cash inflow/(outflow) before financing 122,103 (172,109) (274,538)
Financing
Issue of ordinary share capital - 1,250,000 1,250,000
Share issue costs - (374,444) (436,645)
_________ _________ _________
Net cash inflow from financing - 875,556 813,355
_________ _________ _________
Increase in cash 6 122,103 703,447 538,817
_________ _________ _________
Notes to the Interim Results for the period ended 31 January 2003
1 Basis of preparation
The interim report does not represent statutory accounts within the meaning of section 240 Companies Act
1985. The interim report has not been audited or reviewed but was approved by the board on 24 March 2003.
2 Basis of consolidation
The Consolidated Profit and Loss Account, Balance Sheet and Cash Flow Statement consolidates those of the
Company and its subsidiary undertakings as at 31 January 2003. Intra-group transactions have been
eliminated in full.
3 Basic earnings per share
The calculation of the basic earnings per share is based on the profit on ordinary activities after
taxation and on the weighted average number of shares in issue during the period. The profit and
weighted average number of shares used in the calculations are set out below:
Average
number of
Weighted shares Basic Earnings per
average in trading Earnings share in
number period per share trading period
Profit of shares # (pence) (pence)
#
6 months ended 31 January 2003 214,838 29,000,000 29,000,000 0.74 0.74
Period ended 31 January 2002 177,751 17,119,659 29,000,000 1.04 0.61
Period ended 31 July 2002 434,711 21,154,136 29,000,000 2.05 1.50
_______ _________ _________ _______ ______
The earnings per share in the trading period is based on the number of shares in issue in the trading
period and not from the date of incorporation as with the basic earnings per share. The directors
believe this provides a more accurate basis in the initial years on which to monitor the progress of
the group.
4 Reconciliation of movements in shareholders' funds
6 months Period ended Period
ended 31 January 2002 ended
31 January (unaudited) 31 July 2002
2003
(unaudited) # (audited)
# #
Profit on ordinary activities after taxation 214,838 177,751 434,711
Dividend (29,000) - (58,000)
_________ _________ ________
Profit of ordinary activities after taxation and 185,838 177,751 376,711
dividends
Issues of ordinary share capital - 875,556 813,355
Opening shareholders' funds 1,190,066 - -
_________ _________ ________
Closing shareholders' funds 1,375,904 1,053,307 1,190,066
_________ _________ ________
5 Reconciliation of operating profit with net cash flow from operating activities
6 months ended Period ended Period
31 January 2003 31 January 2002 ended
(unaudited) (unaudited) 31 July 2002
# # (audited)
#
Operating profit 300,545 247,086 601,183
Depreciation 48,576 18,670 71,231
Decrease/(increase) in stocks and work in progress 7,544 (185,389) (67,228)
(Increase) in debtors (316,189) (192,799) (1,287,120)
Increase in creditors 111,703 333,431 1,013,105
_________ _________ ________
Net cash inflow from operativing activities 152,179 220,999 331,171
_________ _________ ________
6. Analysis of changes in net funds
As at
1st August 2002 Cash flow 31 January 2003
# in period #
#
Cash at bank 538,817 122,103 660,920
_________ _________ _________
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