Final Results
25 October 2001 - 10:40PM
UK Regulatory
RNS Number:1440M
OEM PLC
25 October 2001
OEM plc
25 October 2001
Preliminary Statement of Unaudited 2001 Results
Statement by the Chairman
2001 Results
Looking back over the reports I have written as Chairman of OEM, I see I have
continually stressed the difficulty inherent in property trading of predicting
when transactions will complete. This point should always be borne in mind
when considering our results.
The results for the year to 30 June 2001 are particularly affected by timing
issues. The profit after taxation for the year was #247,000 (2000: loss #
353,000). Earnings per share for the year to 30 June 2001 was 3.08p (2000:
Loss 4.43p). Net assets at 30 June 2001 amounted to #4,102,000 (2000:#
3,868,000) equivalent to 51.4p per share (2000: 48.2p). For reasons I have
explained before, the directors do not recommend the payment of a dividend
(2000: #nil). This is something we do keep under review, but for the moment
our policy is not to pay dividends.
Business Review
The highlight of the year was, without doubt, successfully obtaining planning
permission for our client on its site in Warwick. The residential part of the
site was then sold. We were paid a substantial fee, but more importantly our
client enjoyed a (pre-fee to us) roughly 17% IRR for some five years without
any gearing. We also finally completed the winding up of our former pension
scheme, some six years after the last member left the group! A modest surplus
after improving members' benefits was paid to us. The group property at
Northwich, held as stock, has been professionally valued at roughly double its
cost. We are considering our policy on this property. Subsequent to the
year-end we disposed of our property at Horsham and repaid the associated bank
borrowings. A significant gross profit was realised.
Shareholder relations
In April of this year we arranged, together with our financial adviser, Brown
Shipley, a share buy back, such that any shareholder could sell up to 1,000
shares back to the Company free of dealing costs. This was well received and
some 120 shareholders (about 20% by number) took advantage of this
opportunity. We believe that this is a far more attractive approach for small
shareholders than paying dividends and we would hope to repeat this exercise.
Future of the Company
Looking to the future, we continue actively to seek property or corporate
situations, (whether for our own account, as joint ventures or managed for
third parties) where our low-risk strategy coupled to our expertise may be
deployed. It seems that the property market may be slowing down and
historically these conditions have enabled us to make careful purchases
whether for our own or our clients' account.
Our objective remains to continue to invest in property related opportunities
as the way of building up net assets, earnings and consequently shareholder
value, but with minimal financial risk.
Robert P B Noonan
Chairman
Group Profit and Loss Account
For the year ended 30 June 2001
Unaudited Audited
2001 2000
#000 #000
Turnover 868 207
Cost of sales (145) (90)
Gross Profit 723 117
Administrative expenses (509) (480)
Other Operating Income 53 -
Operating Profit (Loss) 267 (363)
Net interest 5 2
Profit (Loss) on Ordinary Activities before 272 (361)
Taxation
Tax on ordinary activities Note 4 (25) 8
Profit (Loss) on Ordinary 247 (353)
Activities after Taxation
Dividends - -
Retained Profit (Loss) 247 (353)
for the Year
Earnings (Loss) per 3.08p (4.43)p
Ordinary Share
There are no recognised gains or losses other than the profit for the year.
Turnover and operating profit all derive from continuing operations.
Balance Sheets
As at 30 June 2001
Group Company
Unaudited Audited Unaudited Audited
2001 2000 2001 2000
#000 #000 #000 #000
Fixed Assets
Tangible assets 29 30 29 30
Investments - - 743 650
29 30 772 680
Current Assets
Stocks 2,320 4,609 - 102
Debtors 3,240 758 5,800 5,622
Cash at bank and in hand 553 455 552 452
6,113 5,822 6,352 6,176
Creditors (amounts falling due
within one year) (1,000) (864) (1,982) (1,868)
Net Current Assets 5,113 4,958 4,370 4,308
Total Assets less Current 5,142 4,988 5,142 4,988
Liabilities
Creditors (amounts falling due (1,040) (1,120) (1,040) (1,120)
after one year)
Net Assets 4,102 3,868 4,102 3,868
Capital and Reserves
Called up share capital 1,996 2,007 1,996 2,007
Capital Redemption Reserve 11 - 11 -
Merger Reserve 169 169 169 169
Other reserve - - 262 228
Profit and loss account 1,926 1,692 1,664 1,464
Shareholders' Funds 4,102 3,868 4,102 3,868
Group Cash Flow Statement
For the year ended 30 June 2001
Unaudited Audited
2001 2000
#000 #000 #000 #000
Net Cash Inflow (Outflow) from Operating Note 5 201 (1,887)
Activities
Returns on Investments
and Servicing of Finance
Interest paid (97) (28)
Interest received 102 5 30 2
206 (1,885)
Capital Expenditure and Financial Investment (11) -
Acquisitions and Disposals - 234
Financing (13) 1,200
Increase (Decrease) in Cash 182 (451)
Reconciliation of net cash flow to
movement in net debt
Increase (Decrease) in cash in year 182 (451)
Cash inflow from increase in debt and lease financing - (1,200)
Net (debt) cash at beginning of year (749) 902
Net (debt) at end of year (567) (749)
ENQUIRIES:
Brian Schneider
OEM plc
Tel: 020 7292 5940
NOTES
1. The annual general meeting of the Company will be held at 10.30am on 7
December 2001 at 14 - 18 Ham Yard, London, W1D 7DT.
2. The financial information set out above does not constitute the
Group's statutory accounts for the years ended 30 June 2001 or 30 June 2000,
but is derived from those accounts. Statutory accounts for 2000 have been
delivered to the Registrar of Companies in England and Wales, and those for
2001 will be delivered following the Company's annual general meeting. The
auditors have reported on the 2000 accounts and their report was unqualified.
3. The figures included in this preliminary announcement have been
prepared on the basis of the accounting policies set out in the 30 June 2000
financial statements.
4. Tax on profit on ordinary activities
The charge (credit) for the year comprises:
2001 2000
#000 #000
Corporation tax on adjusted profits for the year 25 (8)
5. Reconciliation of operating profit to net cash inflow (outflow) from
operating activities:
2001 2000
#000 #000
Operating profit (loss) 267 (363)
Depreciation 12 10
Goodwill - 70
Decrease (Increase) in stocks 2,289 (2,026)
(Increase) Decrease in debtors (2,482) 426
Increase (Decrease) in creditors 115 (4)
Net cash inflow (outflow) from operating activities 201 (1,887)
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