TIDMASTO
RNS Number : 9410T
AssetCo PLC
16 June 2009
16 June 2009
AssetCo plc
Announcement of March Year End 2009 Results
AssetCo plc, (AIM : ASTO) the integrated support services provider to the
Emergency Services, is pleased to announce its results for the year ended 31
March 2009.
KEY POINTS
Financial
* Increase in PBT of over 25% to GBP11.3m
* Dividend increase (2008:1.0p) of 25% to 1.25p
* EPS from continuing operations 14.0p (33% growth on FY08)
* Turnover from continuing operations GBP79.7m (23% growth on FY08)
* Operating Profit GBP17.4m (25% increase on FY08)
* EBITDA before exceptionals and discontinued GBP25.5m (10% increase on FY08)
* EBIT before exceptionals and discontinued GBP19m (23% increase on FY08)
* Increase in cash and cash equivalents of GBP18.4m
* Fall in net debt of 9.4% to GBP76m.
* Fall in net recourse debt of 49% to GBP13.2m
Business
* Continued growth in our two core contracts
* Focus on
* Cash generation and retention
* Improvement of working capital
Tim Wightman, Chairman, commented:
"AssetCo has again produced record results from its continuing operations which
confirm the Company's market leading position. We are better placed than ever to
support our clients in facing the challenges presented by new statutory duties
placed upon them and increasing financial pressures through cuts in public
spending.
Our markets continue to generate opportunities and our sales prospects
nationally and internationally are exciting. We are well positioned to benefit
from a changing market, offering good opportunities for delivering exceptional
long-term value to shareholders. The board therefore looks forward to the
current year with confidence"
Enquiries:
AssetCo plc +44 (0) 20 8515 3999
John Shannon, Chief Executive Officer
Frank Flynn, Chief Financial Officer
James Collins, Investor Relations
Arden Partners plc +44 (0)20 7398 1632
Richard Day
Adrian Trimmings
Pelham +44 (0) 20 7337 1500
Alex Walters
Francesca Tuckett
Chairman's statement - Tim Wightman
It has been a year of progress for the Group on many fronts during which we have
seen an increase in underlying profit before tax and restructuring charges of
over 20 per cent to GBP12.8million and EPS of 33 per cent to 14.0 pence. In what
has been a very challenging economic environment we have continued to grow our
long term PFI contracts with the London and Lincolnshire Fire and Rescue
Authorities by further increasing the scope of our offering. We have developed a
more integrated approach which draws on the wider skills and experience now
available within the group. Whilst some fire authorities want all their support
needs catered for them on a large scale, others wish to avail themselves of
support services and products in more discrete bundles, and accordingly we have
increased our flexibility to offer a menu of options to meet different
customers' needs in this regard.
Another major focus for the year has been the re-organisation and
rationalisation of our manufacturing operations. Six subsidiaries have been
brought together to create an integrated equipment centre in Cambridge which now
designs and supplies a range of fire-fighting equipment, including ladders and
gantries, hose-reels, rescue and lighting equipment and, if our client requires
it, the assembly of fire vehicles. The design and supply of ambulances is now
solely carried out in Leeds. The management challenges involved in this
re-organisation were significant and it undoubtedly disrupted parts of the group
for significant periods during the year. Our original objective was two-fold; to
strengthen and secure the supply chain for vehicles and equipment on behalf of
our integrated support services customers in the fire service, in what was a
fragmented and uncompetitive market-place; and to improve internal operational
efficiencies. Although there are still improvements that we intend to make, we
are pleased that we have achieved our original objective.
We have also continued to pursue the opportunities we believe exist for our
integrated support services in Abu Dhabi. We have always been conscious that
these opportunities would develop over a medium rather than short-term
time-frame. We have an established presence on the ground there and have gained
valuable experience and contacts. We have every reason to believe that our
initial assessments will be borne out.
On the financial management front we have been concentrating on improving
working capital and cash management and rationalising our debt structure and
this focus will continue in the current financial year.
Results
Profit before tax and restructuring costs has increased by 22 per cent in 2009
to GBP12.8 million (2008: GBP10.5 million) with earnings per share improving by
33 per cent to 14.0 pence (2008: 10.5 pence). EBITDA before restructuring has
increased by GBP3.5 million to GBP25.5 million. Operating cash conversion (as
defined in the report of the Chief Financial Officer) prior to restructuring
payments from continuing operations during the period was 100 per cent (2008: 84
percent). Net debt at the year end stood at GBP76 million (2008: GBP83.9
million) a reduction of 9.5 per cent. Of this amount, GBP62.8 million (83 per
cent) was non-recourse asset backed debt that relates to our long-term emergency
services contracts.
Dividend
The directors are recommending an increased dividend of 1.25 pence a share
(2008: 1.0 pence). This increase reflects the higher earnings for 2009 and the
board's confidence in the Group's prospects.
Board
I would like to take this opportunity to formally welcome Peter Manning who
joined the board as a Non-Executive Director on 2 September 2008. Peter has
extensive international experience in senior operating and customer focused
roles in business process outsourcing and in service and technology industries.
He is a Fellow of the Institute of Electrical Engineers, a Fellow of the
Institute of Directors and a Liveryman of the City of London.
Staff
We now have 540 people working for AssetCo and they are motivated to do their
very best to deliver high quality integrated support services and products to
our existing and future clients. This is central to our success and without the
diligence and spirit shown by our staff, working as a team, we would not have
been able to deliver this year's performance. On behalf of the board I would
like to thank them all sincerely for their hard work.
Current trading
Trading in the first two months of the new financial year is in line with the
Board's expectations. We currently have 75% of the current year's forecast
revenues secured. Our vehicle assembly business in Leeds is at full capacity for
the next two years and our Abu Dhabi office is fully embedded and staffed.
Looking forward we will look to improve working capital management and also
increase cash generation and retention.
Outlook
We have restructured and reorganised our businesses significantly in 2008/2009
and despite this have shown a significant increase in profitability. We see the
continuing difficult economic outlook as an ideal opportunity to demonstrate the
economic and operational benefits of our integrated support services
capabilities.
We are better placed than ever to support our clients in facing the challenges
presented by new statutory duties placed upon them and increasing financial
pressures through cuts in public spending.
Our markets continue to generate opportunities and our sales prospects
nationally and internationally are exciting. AssetCo is well positioned to
benefit from a changing market, offering good opportunities for delivering
exceptional long-term value to shareholders. The Board therefore looks forward
to the current year with confidence.
Report of the Chief Executive Officer - John Shannon
As we enter a period of unprecedented UK Public Sector fiscal pressure, the
expansion and extension of our integrated support services offering continues to
position the business for long-term sustainable growth. During the past year we
have focused our efforts in broadening our capabilities and support services to
meet the medium and long-term requirements of our two key clients, London Fire
Brigade (London) and Lincolnshire Fire and Rescue Service (Lincoln). Our
Integrated Support Services business performance reflects the range of services
now offered to those clients. This business, which has been shaped and nurtured
as our engine for growth, delivered an increase in profit of 68% on 2008.
My congratulations go to the Commissioner, Ron Dobson, and his Team at London
Fire Brigade, who earlier this year, were given the top "excellent" rating by
the Audit Commission and to Chief Fire Officer, Mike Thomas and his Team at
Lincolnshire Fire and Rescue Service, who made a virtually unprecedented move of
three categories up the ratings ladder. As budgetary pressures increase, and
with service performance being closely scrutinised, other senior colleagues will
be looking at how well these support service models are performing and I believe
this has enormous potential for AssetCo.
As well as a value proposition built around long-term contracts and the
provision of a comprehensive suite of integrated support services, we are now
also able to offer our support services in a menu of discrete bundles. This menu
has been structured around our client needs with the experience of an AssetCo
team that has pioneered the approach of matching people, processes and systems
with an extensive and brand independent range of products and support services
to deliver innovative integrated solutions.
With a reputation built on partnering and bringing best value, and with an
unrivalled understanding of the challenges that our clients face, we have
developed our services so they can be tailored to meet the specific needs of
individual Fire and Rescue Services. Our menu approach also reduces the
requirement for our clients to enter long, complex and expensive tendering
processes.
During 2007 we decided that to ensure the provision of reliable support services
for our clients we had to expand and strengthen our equipment supply chain; not
to do so could have made us vulnerable to missed performance targets. During the
year we have re-organised and rationalised the manufacturing operations we
acquired in December 2007 and the manufacturing businesses that were already in
the group. We have created a specialist integrated equipment centre in Cambridge
which designs and supplies a range of fire-fighting equipment including ladders
and gantries, hose-reels, and rescue equipment and, if our clients require it,
the fitting-out of fire vehicles and specialist platforms. The design and supply
of ambulances is now solely carried out at our vehicle assembly facility in
Leeds.
The impact of the disruption caused during the year has been painful for the
personnel affected by re-location and redundancy and also financially for the
Group. This involved the closure of TVAC, a business acquired in December 2007.
Although there are still improvements to make, we have achieved what we set out
to do, namely to strengthen and secure the supply chain for vehicles and
equipment on behalf our of integrated support services customers in the fire
service, in what was a fragmented market-place and to improve internal
operational efficiencies.
Strategy
The combination of the 2009 April Budget Report and the recommendations of the
2007/8 Comprehensive Spending Review increases the requirement on UK Fire and
Rescue Authorities to deliver efficiency savings from continuing modernisation
at a greater pace than initially planned.
Our strategy is to prioritise our efforts on those essential support services
accountable for high proportions of our clients' cost base. Our approach is to
offer integrated solutions that assist our clients in delivering these savings,
either directly through economies of scale or efficiency savings, or indirectly
through shared services or long-term gain-share arrangements.
By leveraging off our established track record in being a key operational
support partner to our two long-term clients and the wider UK Fire and Rescue
Service, it is our intention to develop solutions that enable our clients to
have access to alternative delivery models for operational training and
front-line operational services.
Overseas we will continue to develop relationships with Fire Authorities who
look to UK Fire and Rescue and London Fire Brigade in particular as operating
templates to deliver change and improvement.
We have initiated a strategic review of both our Specialist Equipment and
Vehicle Assembly businesses, to ensure each is correctly positioned, structured
and supported to deliver the long-term growth from their current positions as
market leaders in their respective sectors.
Operating performance
As the business has evolved to meet the current and future needs of our client
base, we have established three distinct operating units - Integrated Support
Services, Specialist Equipment and Vehicle Assembly.
+--------------+----------+----------+----------+----------+----------+----------+
| | Integrated Support | Specialist | Vehicle Assembly |
| | Services | Equipment | |
+ +---------------------+---------------------+---------------------+
| | 2009 GBPm |% change | 2009 |% change | 2009 |% change |
| | | on 2008 | GBPm | on 2008 | GBPm | on 2008 |
+--------------+--------------+----------+----------+----------+----------+----------+
| Revenue | 32.2 | +29% | 13.2 | -28% | 43 | -4% |
+--------------+----------+----------+----------+----------+----------+----------+
| Operating | 14.4 | +48% | 1.4 | +15% | 1.5 | -30% |
| Profit | | | | | | |
+--------------+----------+----------+----------+----------+----------+----------+
| PBT | 9.6 | +68% | 1.3 | +15% | 0.7 | -61% |
+--------------+----------+----------+----------+----------+----------+----------+
Integrated Support Services
Our Integrated Support Services business contains our long-term contract,
specialist training and technology activities. We continue to deliver strong
growth through this business, with the benefits of our early investment in
improved systems and people now coming through. The scope of our activities with
both London and Lincoln continues to broaden.
Specialist Equipment
The performance of our Specialist Equipment business reflects the
re-organisation and integration programme initiated and completed during FY09.
We relocated all our Equipment businesses to one single site in Cambridge with a
corresponding disruption in revenue for the businesses but improved margin as
the benefit of integration began to come through. We are now positioned as one
integrated business offering a range of market leading products to our Clients,
which clearly differentiates us both in scale and product development.
Vehicle Assembly
The performance of our Vehicle Assembly business reflects the exceptional level
of build activity in FY08, and the lack of order book in place at our facility
in Leeds when we acquired the business in December 2008. Significant success has
been made in not only correcting the cost base in this business but critically
in winning new business. This facility is now running a record order book with
revenue visibility through to 2012.
Current trading
Trading in the first two months of the new financial year is in line with the
Board's expectations.
The key focus across the business for 2010 is cash generation and retention,
with significant efforts being made to improve working capital management. Each
operating entity is now managed as an autonomous business and is self sufficient
for funding.
We continue to actively support our business development activity in the Middle
East, having secured investment to facilitate this.
Outlook
We are well placed to benefit from the macro-economic pressures facing our core
home market, and consider our Integrated Support Services business to be a
compelling proposition for both existing and potential long-term clients both at
home and overseas.
Our long-term contract activity delivers robust, stable profits and remains
resilient to the current economic climate.
Report of the Chief Financial Officer - Frank Flynn
Business review
I am pleased to report an excellent set of results for the year ended 31 March
2009 (FY09) which has been a year of consolidation following the acquisitions
made in FY08. The backdrop to FY09 was the turmoil in the financial markets
which has seen the fundamentals of the banking structure in the UK changed
radically and creates challenges for all businesses in the UK.
Key Performance Indicators
The Board monitors the Group's Key Performance Indicators Which are summarized
below for FY08 and FY09:
+-------------------+-------------------+-------------------+--------------+--------------+
| | 2009 | 2008 | Variance | Variance % |
+-------------------+-------------------+-------------------+--------------+--------------+
| Profit before tax | 11.3m | 9.0m | 2.3m | 26% |
| from continuing | | | | |
| operations | | | | |
+-------------------+-------------------+-------------------+--------------+--------------+
| EBITDA | 25.5m | 23.1m | 2.4m | 10% |
+-------------------+-------------------+-------------------+--------------+--------------+
| Basic earnings | 14.0p | 10.5p | 3.5p | 33% |
| per share from | | | | |
| continuing | | | | |
| operations | | | | |
+-------------------+-------------------+-------------------+--------------+--------------+
| Net debt | 76m | 83.9m | (7.9)m | 9.5% |
+-------------------+-------------------+-------------------+--------------+--------------+
| Cash conversion | 100% | 84% | 16% | 19% |
+-------------------+-------------------+-------------------+--------------+--------------+
| Staff turnover | 5.1% | 9.1% | (4) | 44% |
+-------------------+-------------------+-------------------+--------------+--------------+
Profit before tax from continuing operations
Profit before tax from continuing operations of GBP11.3m has increased by 26%
from GBP9m. The increase in profit is due to the continued growth of our long
term contracts. FY08 numbers have also been adjusted for TVAC, which is now
included in discontinued operations.
EBITDA
Earnings before interest, tax, depreciation and amortisation have increased by
10% to GBP25.5m.
Basic EPS
Basic earnings per share from continuing operations have increased by 33% to
14.0p.
Net debt
The debt has fallen from GBP83.9m in FY08 to GBP76m in FY09 and this is analysed
in the table below:
+-------------------+-------------------+-------------------+
| | 2009 | 2008 |
+-------------------+-------------------+-------------------+
| Asset finance - | 61.6m | 55.3m |
| emergency | | |
+-------------------+-------------------+-------------------+
| Asset finance - | 1.2m | 2.8m |
| non emergency | | |
+-------------------+-------------------+-------------------+
| Acquisition and | 32.0m | 25.6m |
| other medium term | | |
| loans | | |
+-------------------+-------------------+-------------------+
| Short term loans | 3.7m | 13.1m |
| and overdrafts | | |
+-------------------+-------------------+-------------------+
| Less cash | (22.5)m | (12.9)m |
+-------------------+-------------------+-------------------+
| Net debt | 76m | 83.9m |
+-------------------+-------------------+-------------------+
GBP62.8m (83%) of our net debt is non-recourse asset backed debt which relates
to our long term integrated support services contracts. As is mentioned in the
Chairman's and CEO's reports these contracts continue to grow and accordingly
the levels of asset finance required reflect this. We are continually reviewing
our debt structures to enable the business to meet the debt requirements of our
core long term contracts - London Fire and Lincoln Fire.
During the last 12 months, as we have proactively worked on our "cash
optimisation plans", a number of new debt structures were put in place which
resulted in an increase in our medium term debt from GBP25.6m to GBP32m and we
also were able to reduce our dependence on short term debt from GBP13.1m to
GBP3.7m.
Cash Conversion
Cash conversion, the ratio of cash generated from operating activities to
operating profit before exceptional items and discontinued operations, has
increased significantly from 84% in FY08 to 100% in FY09. In absolute terms this
equates to cash generated from operating activities of GBP23.3m in FY09 (before
restructuring payments of GBP3.1m and earn out payments of GBP1.8m) compared to
GBP1.6m in FY08. This growth is reflective of the increased working capital
focus of the Group and also the streamlining of cash generation processes across
the acquired subsidiary businesses.
Staff turnover
This is calculated excluding redundancy programmes and at 5% is 45% lower than
the FY08 figure of 9.1%.
Historical performance
+------------------------+------------------------+------------------------+------------------------+
| GBPm | 2009 | 2008 | 2007 |
+------------------------+------------------------+------------------------+------------------------+
| Revenue | 79,659 | 64,546 | 90,628 |
+------------------------+------------------------+------------------------+------------------------+
| Gross profit | 36,154 | 32,925 | 22,190 |
+------------------------+------------------------+------------------------+------------------------+
| Gross profit % | 45 | 51 | 24 |
+------------------------+------------------------+------------------------+------------------------+
| Admin expenses | (17,208) | (17,450) | (16,136) |
+------------------------+------------------------+------------------------+------------------------+
| Restructuring costs | (1,516) | (1,549) | - |
+------------------------+------------------------+------------------------+------------------------+
| Operating profit | 17,430 | 13,926 | 6,056 |
+------------------------+------------------------+------------------------+------------------------+
| Operating profit % | 22% | 22% | 7% |
+------------------------+------------------------+------------------------+------------------------+
| Finance costs | (6,152) | (4,944) | (2,780) |
+------------------------+------------------------+------------------------+------------------------+
| Profit before tax | 11,278 | 8,982 | 4,336 |
+------------------------+------------------------+------------------------+------------------------+
| Taxation | (1,135) | (1,860) | (2,211) |
+------------------------+------------------------+------------------------+------------------------+
| Profit | 4,954 | 8,037 | 2,125 |
+------------------------+------------------------+------------------------+------------------------+
Revenues decreased from FY07 to FY08 as we exited from non-emergency activity
which has continued in FY09. FY09 revenues increased as we had the benefit of a
full year's activity from our acquisitions in FY08.
Gross profit decreased slightly as the full year revenues from the acquired
businesses was related largely to lower margin vehicle assembly.
Admin expenses, though relatively unchanged in FY09 compared to FY08,
benefited from our continuous improvement projects and the synergies from our
site rationalisation programme. We expect them to reduce further.
As part of our acquisition strategy in FY08 we acquired a number of businesses
and we planned to deliver synergies from these acquisitions by reducing head
count and site locations. In January 2008 we were employing directly and
indirectly (temporary workers) 1,100 people and the plan was to reduce this
number to 700. This has been achieved and with the closure of TVAC - In
Administration head count was reduced further to 600. On an ongoing basis we are
aligning our head count and cost base with the prevailing order books of our
respective businesses and the plan is to reduce the head count to 500 by the end
of September 2009. Our staff costs are our largest cost and we continually
review these to ensure they are flexed in line with our revenues.
The substantial reduction in staff number and locations has resulted in a
further one off restructuring charge in FY09 of GBP1.5m.
Acquisition update
The material acquisitions made in FY08 were TVAC, UVM and AES.
TVAC
In the interim statement we reported that TVAC had continued to make losses and
absorb cash and that the Board had instigated a strategic review of the
business. The outcome of this review was that TVAC showed no signs of being
viable and accordingly the company was put into administration on 18 December
2008. This resulted in a GBP5.2m loss which is detailed in the Income Statement
and also caused a considerable drain on the group's cash resources. TVAC, which
was in distress at the time of its acquisition, was acquired because it was a
large supplier to AssetCo London supplying fire appliances for the largest build
programme undertaken in UK Fire in FY07 and FY08. Failure to deliver to vehicles
on time could have resulted in substantial penalties for AssetCo. Following the
acquisition of TVAC the deliveries were completed on time, however the business
continued to need ongoing cash support from the parent company.
UVM
On a more positive note, UVM, the ambulance assembly business has been returned
to profitability and has a record order book including the previously announced
orders from the Scottish and North West Ambulance Trusts. It also required
substantial Group support.
AES
AES was acquired because of the potential of its "M Flow" telemetry product
which has been enthusiastically received by the Police and Fire authorities and
is currently being rolled out across London and Lincoln Fire's fleet. There are
great opportunities for this technology.
North Atlantic Value LLP (NAV) investment
As part of our ongoing investment in Abu Dhabi we were delighted to be able to
raise GBP15m in January 2009 at a 20% premium to the prevailing share price. The
funding was to assist us with our contract negotiations in Abu Dhabi and with
our ongoing development of business relationships in this territory and is a
strong endorsement of our business model in the region.
The investment was in zero coupon preference shares which are repayable in 5
years time although there are warrants associated with the shares which can be
converted into AssetCo plc shares at 61.2p. AssetCo can repay the preference
shares, under certain conditions on the first and second anniversary and one
third and two thirds of the warrants vest on these dates. After this date 100%
of the warrants are available to JO Hambro.
CONSOLIDATED INCOME STATEMENT
+----------------------------------------------------------+----+------+------+---------+--------------------------------+------+---------------------------------------+
| | | Year ended |
+-----------------------------------------------------------------------------+---------+-------------------------------------------------------------------------------+
| | | 31.3.09 | |
| | | | 31.3.08 |
+-----------------------------------------------------------------------------+---------+---------------------------------------+---------------------------------------+
| | Notes | GBP000 | GBP000 |
+-----------------------------------------------------------------------------+---------+---------------------------------------+---------------------------------------+
| | | | |
+----------------------------------------------------------------------+----------------+---------------------------------------+---------------------------------------+
| Continuing operations | | | |
+----------------------------------------------------------------------+----------------+---------------------------------------+---------------------------------------+
| Revenue | 4 | 79,659 | 64,546 |
+----------------------------------------------------------------------+----------------+---------------------------------------+---------------------------------------+
| Cost of sales | | (43,505) | (31,621) |
+----------------------------------------------------------------------+----------------+---------------------------------------+---------------------------------------+
| | ------------------------------------- | ------------------------------------- |
+---------------------------------------------------------------------------------------+---------------------------------------+---------------------------------------+
| Gross profit | 36,154 | 32,925 |
+---------------------------------------------------------------------------------------+---------------------------------------+---------------------------------------+
| | ------------------------------------- | ------------------------------------- |
+---------------------------------------------------------------------------------------+---------------------------------------+---------------------------------------+
| | | | |
+---------------------------------------------------------------+-----------------------+---------------------------------------+---------------------------------------+
| Administrative expenses | | (17,500) | (18,466) |
+---------------------------------------------------------------+-----------------------+---------------------------------------+---------------------------------------+
| Other gains | | | 292 | 1,016 |
+----------------------------------------------------------+----+-----------------------+--------------------------------+----------------------------------------------+
| Restructuring costs | | | (1,516) | (1,549) |
+----------------------------------------------------------+----+-----------------------+--------------------------------+----------------------------------------------+
| | | ------------------------------------- | ------------------------------------- |
+---------------------------------------------------------------+-----------------------+---------------------------------------+---------------------------------------+
| Operating profit | 5 | 17,430 | 13,926 |
+---------------------------------------------------------------+-----------------------+---------------------------------------+---------------------------------------+
| | | |
+---------------------------------------------------------------------------------------+---------------------------------------+---------------------------------------+
| Finance income | 6 | 717 | 429 |
+----------------------------------------------------------------------+----------------+---------------------------------------+---------------------------------------+
| Finance costs | 6 | (6,869) | (5,373) |
+----------------------------------------------------------------------+----------------+---------------------------------------+---------------------------------------+
| | ------------------------------------- | ------------------------------------- |
+---------------------------------------------------------------------------------------+---------------------------------------+---------------------------------------+
| Profit before taxation | | 11,278 | 8,982 |
+----------------------------------------------------------------------+----------------+---------------------------------------+---------------------------------------+
| | ------------------------------------- | ------------------------------------- |
+---------------------------------------------------------------------------------------+---------------------------------------+---------------------------------------+
| Taxation | | (1,135) | (1,860) |
+----------------------------------------------------------------------+----------------+---------------------------------------+---------------------------------------+
| | ------------------------------------- | ------------------------------------- |
+---------------------------------------------------------------------------------------+---------------------------------------+---------------------------------------+
| Profit for the year from continuing operations | | 10,143 | 7,122 |
+----------------------------------------------------------------------+----------------+---------------------------------------+---------------------------------------+
| | ------------------------------------- | ------------------------------------- |
+---------------------------------------------------------------------------------------+---------------------------------------+---------------------------------------+
| | | | |
+----------------------------------------------------------------------+----------------+---------------------------------------+---------------------------------------+
| Discontinued operations | | | |
+----------------------------------------------------------------------+----------------+---------------------------------------+---------------------------------------+
| (Loss)/profit for the year from discontinued operations | | (5,189) | 915 |
+----------------------------------------------------------------------+----------------+---------------------------------------+---------------------------------------+
| | ------------------------------------- | ------------------------------------- |
+---------------------------------------------------------------------------------------+---------------------------------------+---------------------------------------+
| Profit for the year | | 4,954 | 8,037 |
+----------------------------------------------------------------------+----------------+---------------------------------------+---------------------------------------+
| | | ======================= | ===================== |
+----------------------------------------------------------------------+----------------+---------------------------------------+---------------------------------------+
| | | | |
+---------------------------------------------------------------+-----------------------+---------------------------------------+---------------------------------------+
| | | | |
+---------------------------------------------------------------+-----------------------+---------------------------------------+---------------------------------------+
| Earnings per share (pence) | | | |
+---------------------------------------------------------------+-----------------------+---------------------------------------+---------------------------------------+
| | | | |
+---------------------------------------------------------------+-----------------------+---------------------------------------+---------------------------------------+
| From continuing operations | | | |
+---------------------------------------------------------------+-----------------------+---------------------------------------+---------------------------------------+
| Basic | 7 | 14.0 p | 10.5 p |
+---------------------------------------------------------------+-----------------------+---------------------------------------+---------------------------------------+
| | ------------------------------------- | ------------------------------------- |
+---------------------------------------------------------------------------------------+---------------------------------------+---------------------------------------+
| Diluted | | 7 | 13.7 p | 10.1 p |
+----------------------------------------------------------+----+-----------------------+--------------------------------+----------------------------------------------+
| | ------------------------------------- | ------------------------------------- |
+---------------------------------------------------------------------------------------+---------------------------------------+---------------------------------------+
| | | | |
+---------------------------------------------------------------+-----------------------+---------------------------------------+---------------------------------------+
| From continuing and discontinued operations | | | |
+---------------------------------------------------------------+-----------------------+---------------------------------------+---------------------------------------+
| Basic | 7 | 6.8 p | 11.8 p |
+---------------------------------------------------------------+-----------------------+---------------------------------------+---------------------------------------+
| | ------------------------------------- | ------------------------------------- |
+---------------------------------------------------------------------------------------+---------------------------------------+---------------------------------------+
| Diluted | | 7 | 6.7 p | 11.5 p |
+----------------------------------------------------------+----+-----------------------+--------------------------------+----------------------------------------------+
| | ------------------------------------- | ------------------------------------- |
+----------------------------------------------------------+----+------+------+---------+--------------------------------+------+---------------------------------------+
CONSOLIDATED BALANCE SHEET
+----------------------------------------------------------+----+----+----+--------+----------------------------+----+---------------+-----------------+
| | | |
+-------------------------------------------------------------------------+--------+-------------------------------------------------------------------+
| | | | 31.3.08 |
| | | 31.3.09 | |
+-------------------------------------------------------------------------+--------+---------------------------------+---------------------------------+
| | Notes | GBP000 | GBP000 |
+-------------------------------------------------------------------------+--------+---------------------------------+---------------------------------+
| | | | Restated |
+-------------------------------------------------------------------------+--------+---------------------------------+---------------------------------+
| ASSETS | | | |
+-------------------------------------------------------------------------+--------+---------------------------------+---------------------------------+
| | | | |
+-------------------------------------------------------------------------+--------+---------------------------------+---------------------------------+
| Non-current assets | | | |
+-------------------------------------------------------------------------+--------+---------------------------------+---------------------------------+
| Property, plant and equipment | | 76,877 | 76,727 |
+-------------------------------------------------------------------------+--------+---------------------------------+---------------------------------+
| Goodwill | | 57,081 | 54,060 |
+-------------------------------------------------------------------------+--------+---------------------------------+---------------------------------+
| Other intangible assets | | 5,666 | 1,576 |
+-------------------------------------------------------------------------+--------+---------------------------------+---------------------------------+
| Investment in associates | | 414 | 414 |
+-------------------------------------------------------------------------+--------+---------------------------------+---------------------------------+
| Deferred tax asset | | 4,572 | 1,817 |
+-------------------------------------------------------------------------+--------+---------------------------------+---------------------------------+
| Retirement benefit surplus | | 429 | 429 |
+-------------------------------------------------------------------------+--------+---------------------------------+---------------------------------+
| | -------------------------- | ------------------------------- |
+----------------------------------------------------------------------------------+---------------------------------+---------------------------------+
| | 145,039 | 135,023 |
+----------------------------------------------------------------------------------+---------------------------------+---------------------------------+
| | ------------------------------ | ------------------------------- |
+----------------------------------------------------------------------------------+---------------------------------+---------------------------------+
| Current assets | | | |
+---------------------------------------------------------------+------------------+---------------------------------+---------------------------------+
| Inventories | | 6,607 | 5,910 |
+---------------------------------------------------------------+------------------+---------------------------------+---------------------------------+
| Trade and other receivables | | 23,997 | 21,513 |
+-------------------------------------------------------------------------+--------+----------------------------+--------------------------------------+
| Cash and cash equivalents | 9 | 22,498 | 12,896 |
+-------------------------------------------------------------------------+--------+----------------------------+--------------------------------------+
| Non current assets held for sale | | - | 3,370 |
+-------------------------------------------------------------------------+--------+----------------------------+--------------------------------------+
| Derivative financial instruments | 10 | - | 2,190 |
+-------------------------------------------------------------------------+--------+----------------------------+--------------------------------------+
| | | ------------------------------- | ---------------------------- |
+---------------------------------------------------------------+------------------+---------------------------------+---------------------------------+
| | | 53,102 | 45,879 |
+---------------------------------------------------------------+------------------+---------------------------------+---------------------------------+
| | ------------------------------- | ---------------------------- |
+----------------------------------------------------------------------------------+---------------------------------+---------------------------------+
| Total assets | | | 198,141 | 180,902 |
+----------------------------------------------------------+----+------------------+-------------------------------------------------+-----------------+
| | | ======================= | ======================= |
+--------------------------------------------------------------------+-------------+---------------------------------+---------------------------------+
| | | | | |
+----------------------------------------------------------+----+------------------+-------------------------------------------------+-----------------+
| EQUITY | | | | |
+----------------------------------------------------------+----+------------------+-------------------------------------------------+-----------------+
| |
+------------------------------------------------------------------------------------------------------------------------------------------------------+
| |
+------------------------------------------------------------------------------------------------------------------------------------------------------+
| Issued share capital | 11 | 18,345 | 17,958 |
+--------------------------------------------------------------------+-------------+---------------------------------+---------------------------------+
| Equity component of compound financial instruments | 11 | 7,917 | - |
+--------------------------------------------------------------------+-------------+---------------------------------+---------------------------------+
| Share premium account | 11 | 26,115 | 25,197 |
+--------------------------------------------------------------------+-------------+---------------------------------+---------------------------------+
| Reverse acquisition reserve | | (11,701) | (11,701) |
+--------------------------------------------------------------------+-------------+---------------------------------+---------------------------------+
| Hedging reserve | 10 | (5,130) | 1,577 |
+--------------------------------------------------------------------+-------------+---------------------------------+---------------------------------+
| Translation reserve | | (304) | 356 |
+--------------------------------------------------------------------+-------------+---------------------------------+---------------------------------+
| Other reserve | 11 | 580 | 384 |
+--------------------------------------------------------------------+-------------+---------------------------------+---------------------------------+
| Retained earnings | | 15,739 | 11,506 |
+--------------------------------------------------------------------+-------------+---------------------------------+---------------------------------+
| | | ------------------------------- | ----------------------------- |
+--------------------------------------------------------------------+-------------+---------------------------------+---------------------------------+
| Total equity | | 51,561 | 45,277 |
+--------------------------------------------------------------------+-------------+---------------------------------+---------------------------------+
| | | ------------------------------- | ----------------------------- |
+----------------------------------------------------------+----+----+----+--------+----------------------------+----+---------------+-----------------+
CONSOLIDATED BALANCE SHEET
+--------------------------------------------------------------+---------------+------------+-----------------------+---------------+--------------+-------------+----------+
| | | | |
+--------------------------------------------------------------+---------------+---------------------------------------------------------------------------------+----------+
| | | 31.3.09 | | |
| | | | 31.3.08 | |
+--------------------------------------------------------------+---------------+-------------------------------------------------------------------+-------------+----------+
| | Notes | GBP000 | GBP000 | |
+--------------------------------------------------------------+---------------+-------------------------------------------------------------------+-------------+----------+
| | | | Restated | |
+--------------------------------------------------------------+---------------+-------------------------------------------------------------------+-------------+----------+
| | | | |
| LIABILITIES | | | |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| | | | |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| Non-current liabilities | | | |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| Borrowings | 12 | 81,676 | 69,970 |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| Liability component of compound financial instruments | 10 | 7,045 | - |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| Deferred tax liabilities | | 6,756 | 5,961 |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| | | ------------------------------------- | ------------------------------------- |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| | | 95,477 | 75,931 |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| | | ------------------------------------- | ------------------------------------- |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| Current liabilities | | | |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| Trade and other payables | | 26,880 | 27,871 |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| Current income tax liabilities | | 255 | 330 |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| Borrowings | 12 | 16,843 | 26,825 |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| Provisions | | - | 1,549 |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| Liabilities associated with assets classified as held for | | - | 3,119 |
| sale | | | |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| Derivative financial instruments | 10 | 7,125 | - |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| | | ------------------------------------- | ------------------------------------- |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| | | 51,103 | 59,694 |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| | | ------------------------------------- | ------------------------------------- |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| Total liabilities | | 146,580 | 135,625 | |
+--------------------------------------------------------------+---------------+----------------------------------------------------+----------------------------+----------+
| | | ------------------------------------- | ------------------------------------- |
+--------------------------------------------------------------+----------------------------+---------------------------------------+---------------------------------------+
| Total equity and liabilities | | 198,141 | 180,902 | |
+--------------------------------------------------------------+----------------------------------------------------+---------------+----------------------------+----------+
| | | ======================= | ======================= |
+--------------------------------------------------------------+---------------+------------+-----------------------+---------------+--------------+-------------+----------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| | Share | Share | Reverse | Hedging | Translation | | Retained | Total |
| | capital | premium | acquisition | reserve | reserve | Other | earnings | Equity |
| | | account | reserve | | | reserve | | |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| At 1 April 2007 | 16,800 | 17,890 | (11,701) | - | - | - | 3,413 | 26,402 |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Gain recognised on cash flow hedge - interest rate | - | - | - | 2,190 | - | | - | 2,190 |
| swap | | | | | | - | | |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Tax on items taken directly to equity | - | - | - | (613) | - | - | - | (613) |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Exchange differences on translation of overseas | - | - | - | - | 356 | | - | 356 |
| operations | | | | | | - | | |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| | | | | | | | | |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Profit for the year | - | - | - | - | - | - | 8,093 | 8,093 |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| | -------- | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ |
| | ---------------------------- | | | | | | | |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Total recognised income and expense for the period | - | - | - | 1,577 | 356 | | 8,093 | 10,026 |
| | | | | | | - | | |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Movement relating to share-based payments | - | - | - | - | - | | - | 384 |
| | | | | | | 384 | | |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Net proceeds from issue of shares | 1,158 | 7,307 | - | - | - | - | - | 8,465 |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| At 31 March 2008 | 17,958 | 25,197 | (11,701) | 1,577 | 356 | 384 | 11,506 | 45,277 |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| | =-----================== | ===================== | ===================== | =====================- | ===================== | ===================== | ===================== | ===================== |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Loss recognised on cash flow hedge - interest rate | - | - | - | (9,315) | - | | - | (9,315) |
| swap (Note 23) | | | | | | - | | |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Tax on items taken directly to equity | - | - | - | 2,608 | - | - | - | 2,608 |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Exchange differences on translation of overseas | - | - | - | - | (660) | | - | (660) |
| operations | | | | | | - | | |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Profit for the year | - | - | - | - | - | - | 4,954 | 4,954 |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Total recognised income and expense for the period | - | - | - | (6,707) | (660) | - | 4,954 | (2,413) |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Dividends paid in the year | - | - | - | - | - | - | (721) | (721) |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Movement relating to share-based payments (Note | - | - | - | - | - | | - | 196 |
| 24) | | | | | | 196 | | |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| Net proceeds from issue of shares (Note 24) | 8,304 | 918 | - | - | - | | - | 9,222 |
| | | | | | | - | | |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| At 31 March 2009 | 26,262 | 26,115 | (11,701) | (5,130) | (304) | 580 | 15,739 | 51,561 |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
| | ===================== | ===================== | ===================== | =====================- | ===================== | ===================== | ===================== | ===================== |
+----------------------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+
+------------+------------+------------+-------+-----------------------------+------------------------+------------+
| CONSOLIDATED CASH FLOW STATEMENT | | |
| | | |
+--------------------------------------+-------+-------------------------------------------------------------------+
| | | Year ended |
+--------------------------------------+-------+-------------------------------------------------------------------+
| | | | 31.3.08 |
| | | 31.3.09 | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| | Notes | GBP'000 | GBP'000 |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Cash flows from operating activities | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Cash generated from operations | 13 | 13,015 | 14,123 |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Finance costs | 6 | (6,687) | (5,373) |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Corporation tax paid | | (44) | (177) |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| | | --------------------------- | --------------------------- |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Net cash generated from operating activities | 6,284 | 8,573 |
+----------------------------------------------+-----------------------------+-------------------------------------+
| | | |
+----------------------------------------------+-----------------------------+-------------------------------------+
| Acquisition of subsidiaries, net of | | (60) | (4,910) |
| cash acquired | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Investment in associated undertaking | | - | (414) |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Purchase of intangible assets | | (3,563) | (1,089) |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Cash element of deferred | | (1,800) | - |
| consideration settlement | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Purchases of property, plant and | | (10,906) | (38,550) |
| equipment | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Proceeds from sale of property, | | 6,229 | 3,518 |
| plant and equipment | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Proceeds from sale of subsidiary | | - | 900 |
| undertakings | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| | | --------------------------- | --------------------------- |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Net cash used in investing | | (10,100) | (40,545) |
| activities | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| | | --------------------------- | --------------------------- |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Cash flows from financing activities | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Proceeds from issue of ordinary | | - | 6,378 |
| shares | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Proceeds from issue of preference | | 14,780 | - |
| shares | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Dividends paid | | (721) | - |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Net increase in/(repayments of) | | 5,842 | (4,552) |
| borrowings | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Net increase in finance leases | | 1,609 | 27,493 |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Finance income | 6 | 717 | 429 |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| | | --------------------------- | -------------------------------- |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Net cash used in financing | | 22,227 | 29,748 |
| activities | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| | | --------------------------- | ------------------------------ |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Net increase/(decrease) in cash, | | 18,411 | (2,224) |
| cash equivalents and bank overdrafts | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Cash, cash equivalents and bank | | 394 | 2,618 |
| overdrafts at beginning of period | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| | | --------------------------- | ----------------------------------- |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| Cash, cash equivalents and bank | 9 | 18,805 | 394 |
| overdrafts at end of period | | | |
+--------------------------------------+-------+-----------------------------+-------------------------------------+
| | | ================= | ================ |
+------------+------------+------------+-------+-----------------------------+------------------------+------------+
NOTES
1. Publication of non-statutory accounts
The financial information set out in this announcement does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985.
The financial information for the year ended 31 March 2008 has been extracted
from the Group's financial statements to that date which received an unmodified
auditor's report and have been delivered to the Registrar of Companies.
The financial information for the year ended 31 March 2009 has been extracted
from the Group's financial statements to that date which have received an
unmodified auditor's report but have not yet been delivered to the Registrar of
Companies.
2. Basis of preparation
The Group's financial statements comply with the AIM Rules and have been
prepared in accordance with International Financial Reporting Standards
("IFRSs") as adopted by the European Union as they apply to the financial
statements of the group for the year ended 31 March 2009 and applied in
accordance with the Companies Act 1985. The financial statements are prepared
using the historical cost convention as modified for the revaluation of certain
assets. The accounting policies which follow set out these policies which apply
in preparing the financial statements for the year ended 31 March 2009.
Going Concern
Management routinely plan future activities including forecasting future cash
flows. Management have reviewed their plans with the Directors and have
collectively formed a judgement that the group has adequate resources to
continue as a going concern for at least 12 months from the date of signing of
the financial statements. In arriving at this judgement the Directors have
reviewed the cash flow projections of the group for the foreseeable future in
light of the trading and financing uncertainties in the current economic climate
and have considered existing commitments together with the financial resources
available to the group. The Group also benefits from the surety of two major
long term contracts which guarantee revenue streams for the next 14 years. This,
aligned with a significant public sector client base gives comfort over future
income streams and thus the going concern of the group. The Directors have also
considered the current global economic downturn together with the unprecedented
markets for debt and equity financing at this time. The Directors have
considered all significant trading exposures and do not consider the group to be
significantly exposed to its trading partners, either clients or suppliers at
this time.
The detailed profit and loss and cash flow budgets prepared by management for
the period up to 30 June 2010 have been subjected to various sensitivity
analyses and show that the group is forecast to have more than sufficient
headroom in that period.
.
3. Primary segment information
For management purposes, the Group is organised into four main business segments
as follows:
Integrated Support Services - provision of management services to the emergency
services market
Specialist Equipment - sale and supply of specialist equipment to emergency
services and the homeland security market
Vehicle Assembly - automotive engineering to the emergency services market
Non Emergency - provision of asset management services
Year ended 31 March 2009
+----------------------------------+-----+-----------------------+------------
=---------+-----------------------+-----------------------+--------------------
=-+-----------------------+-----------------------+
|
| | Integrated | Specialist |
| | | Consolidation |
Total |
| | |
support | equipment | Vehicle | Non
| Discontinued | adjustments | |
|
| | services |
| assembly | emergency | operations |
|
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
=----+-----------------------+-----------------------+
|
| | GBP000 | GBP000 |
GBP000 | GBP000 | GBP000 | GBP000
| GBP000
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
=----+-----------------------+-----------------------+
|
| | | |
| | |
|
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
=----+-----------------------+-----------------------+
| Segment revenue
| | 32,221 | 13,181 |
43,040 | 3,952 | 4,114 | (12,735)
| 83,773
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
=----+-----------------------+-----------------------+
|
| | ===================== | ===================== |
===================== | ===================== | ===================== |
===================== | =====================
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
-----+-----------------------+-----------------------+
| Segment operating
profit/(loss) | | 14,408 | 1,453 |
1,458 | 232 | (5,170) |
(140) | 12,241
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
-----+-----------------------+-----------------------+
| Net segment finance
costs | | (4,854) | (142) |
(791) | (154) | (19) |
(192) | (6,152)
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
=----+-----------------------+-----------------------+
|
| | ===================== | ===================== |
===================== | ===================== | ===================== |
===================== | =====================
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
=----+-----------------------+-----------------------+
| Segment profit/(loss)
before tax | | 9,554 | 1,311 |
667 | 78 | (5,189) | (332)
| 6,089
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
=----+-----------------------+-----------------------+
|
| | ===================== | ===================== |
===================== | ===================== | ===================== |
===================== | =====================
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
-----+-----------------------+-----------------------+
| Depreciation and
amortisation | | 4,305 | 163 |
296 | 1,674 | 108 |
- | 6,546
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
=----+-----------------------+-----------------------+
|
| | ===================== | ===================== |
===================== | ===================== | ===================== |
===================== | =====================
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
=----+-----------------------+-----------------------+
| Segment assets
| | 308,122 | 11,752 |
23,664 | 18,503 | - | (163,800)
| 198,241
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
=----+-----------------------+-----------------------+
|
| | ===================== | ===================== |
===================== | ===================== | ===================== |
===================== | =====================
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
-----+-----------------------+-----------------------+
| Cost of acquired
property, plant | | 10,603 | 163 |
140 | | |
- | 10,906 |
| and equipment | |
| | |
- | - | |
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
=----+-----------------------+-----------------------+
|
| | ===================== | ===================== |
===================== | ===================== | ===================== |
===================== | =====================
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
=----+-----------------------+-----------------------+
| Segment liabilities
| | 179,263 | 2,984 |
26,844 | 14,270 | - | (76,781)
| 146,580
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
=----+-----------------------+-----------------------+
|
| | ===================== | ===================== |
===================== | ===================== | ===================== |
===================== | =====================
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
=----+-----------------------+-----------------------+
|
| | | |
| | |
|
|
+----------------------------------+-----+-----------------------+---------
=------------+-----------------------+-----------------------+-----------------
-----+-----------------------+-----------------------+
All internal sales are generated within the vehicle assembly division
The consolidation adjustments affecting the segment profit before tax
relate to the elimination of inter-segment sales from the Vehicle Assembly
Division to the Integrated Services Division (GBP12.735 million) and a charge
for share-based payments (GBP140,000). Inter-segment sales are at cost.
The disclosures above in respect of discontinued operations all relate to the
TVAC entity now in administration (see Note 30).
The depreciation and amortisation charges for each segment have been reported
within the segment profit before tax.
Year ended 31 March 2008
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| | | Integrated | Specialist | | | | Consolidation | Group |
| | | support | equipment | Vehicle | Non | Discontinued | adjustments | |
| | | services | | assembly | emergency | operations | | |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| | | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| Continuing operations | | | | | | | | |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| Segment revenue | | 25,005 | 18,192 | 43,719 | 6,129 | 4,302 | (25,286) | 72,061 |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| | | ===================== | ===================== | ===================== | ===================== | ===================== | ===================== | ===================== |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| Segment operating profit/(loss) | | 9,730 | 1,262 | 2,086 | 1,560 | 643 | (440) | 14,841 |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| Net segment finance costs | | (4,027) | (125) | (377) | (228) | (187) | - | (4,944) |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| | | ===================== | ===================== | ===================== | ===================== | ===================== | ===================== | ===================== |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| Segment profit/(loss) before tax | | 5,703 | 1,137 | 1,709 | 1,332 | 456 | (440) | 9,897 |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| | | ===================== | ===================== | ===================== | ===================== | ===================== | ===================== | ===================== |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| Depreciation and amortisation | | 4,615 | 174 | 236 | 2,217 | 220 | - | 7,462 |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| | | ===================== | ===================== | ===================== | ===================== | ===================== | ===================== | ===================== |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| Segment assets | | 195,093 | 23,267 | 24,854 | 22,686 | 3,370 | (88,368) | 180,902 |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| | | ===================== | ===================== | ===================== | ===================== | ===================== | ===================== | ===================== |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| Cost of acquired property, plant | | 36,920 | - | 1,300 | | | - | 38,550 |
| and equipment | | | | | 277 | 53 | | |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| | | ===================== | ===================== | ===================== | ===================== | ===================== | ===================== | ===================== |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| Segment liabilities | | 159,465 | 4,397 | 23,764 | 12,941 | 3,119 | (68,061) | 135,625 |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| | | ===================== | ===================== | ===================== | ===================== | ===================== | ===================== | ===================== |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
| | | | | | | | | |
+----------------------------------+-----+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+-----------------------+
The consolidation adjustments affecting the segment profit before tax relate to
the elimination of inter-segment sales from the Vehicle Assembly Division to the
Integrated Services Division (GBP25.286 million) and a charge for share-based
payments (GBP440,000). Inter-segment sales are at cost.
The depreciation and amortisation charges for each segment have been reported
within the segment profit before tax.
Secondary reporting format - geographical segments
The Group manages its business segments in the UK, which is the home country of
the parent Company. In addition, the Group provides business support services
from its base in the Republic of Ireland which is disclosed under "Europe"
below.
The revenue analysis below is based on the location of the service provided or
sale made.
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | 2009 | 2008 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | GBP'000 | GBP'000 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Revenue - continuing | | | | |
| operations | | | | |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| UK | | | 79,029 | 66,028 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Europe | | | 630 | 2,820 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | --------------------------- | --------------------------- |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | 79,659 | 68,848 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | =============== | =============== |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
The majority of current assets are located in the UK where most of the capital
expenditure is also incurred.
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | 2009 | 2008 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | GBP'000 | GBP'000 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Current assets | | | | |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| UK | | | 52,935 | 45,699 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Europe | | | 167 | 180 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | --------------------------- | --------------------------- |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | 53,102 | 45,879 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | =============== | =============== |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
+------------------------------+------------+------------+----------------------------+-----------------------------+
| | | | 2009 | 2008 |
+------------------------------+------------+------------+----------------------------+-----------------------------+
| | | | GBP'000 | GBP'000 |
+------------------------------+------------+------------+----------------------------+-----------------------------+
| Capital expenditure | | | | |
+------------------------------+------------+------------+----------------------------+-----------------------------+
| UK | | | 10,902 | 38,512 |
+------------------------------+------------+------------+----------------------------+-----------------------------+
| Europe | | | 4 | 38 |
+------------------------------+------------+------------+----------------------------+-----------------------------+
| | | | -------------------------- | --------------------------- |
+------------------------------+------------+------------+----------------------------+-----------------------------+
| | | | 10,906 | 38,550 |
+------------------------------+------------+------------+----------------------------+-----------------------------+
| | | | =============== | =============== |
+------------------------------+------------+------------+----------------------------+-----------------------------+
4. Revenue
An analysis of the Group's revenue is as follows:
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | 2009 | 2008 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | GBP'000 | GBP'000 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Continuing operations | | | | |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Sale of goods | | | 39,368 | 26,472 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Emergency-related managed | | | 31,414 | 25,005 |
| services | | | | |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Leasing and contract hire | | | 3,952 | 8,249 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Support services | | | 4,925 | 4,820 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | --------------------------- | --------------------------- |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Revenue | | | 79,659 | 64,546 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | ================ | =============== |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Discontinued operations | | | | |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Leasing and contract hire | | | - | 3,221 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Sale of goods | | | 4,114 | 4,302 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | --------------------------- | --------------------------- |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | 83,773 | 72,069 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | ================ | =============== |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
5. Profit for the year
The profit for the year has been arrived at after charging/(crediting):
+-----------------------------------+--------+------------+-----------+-----------+
| | | | 2009 | 2008 |
+-----------------------------------+--------+------------+-----------+-----------+
| | | | GBP'000 | GBP'000 |
+-----------------------------------+--------+------------+-----------+-----------+
+-----------------------------------+--------+------------+---------------+--------------+
| Net foreign exchange gains | | | (1) | (8) |
+-----------------------------------+--------+------------+---------------+--------------+
| Research and developments costs | | | 1 | 15 |
+-----------------------------------+--------+------------+---------------+--------------+
| Government grants towards | | | (205) | (301) |
| employment costs | | | | |
+-----------------------------------+--------+------------+---------------+--------------+
| Depreciation of property, plant | | | 6,546 | 7,462 |
| and equipment | | | | |
+-----------------------------------+--------+------------+---------------+--------------+
| Staff costs (Note 14) | | | 21,955 | 19,915 |
+-----------------------------------+--------+------------+---------------+--------------+
| Impairment loss recognised on | | | 11 | 51 |
| trade receivables | | | | |
+-----------------------------------+--------+------------+---------------+--------------+
| | | | ============= | ============ |
+-----------------------------------+--------+------------+---------------+--------------+
6. Finance income and finance costs
+---------+---------+---+---------+---------+---------+-------------+---------+----------------+---------+
| | | | 2009 | 2008 |
+-------------------+---+-----------------------------+-----------------------+--------------------------+
| | | | GBP'000 | GBP'000 |
+-------------------+---+-----------------------------+-----------------------+--------------------------+
| Finance income | | | | |
+-------------------+---+-----------------------------+-----------------------+--------------------------+
| Interest income | | | 717 | 429 |
| on short-term | | | | |
| bank deposits | | | | |
+-------------------+---+-----------------------------+-----------------------+--------------------------+
| | | | =============== | =============== |
| | | | | |
+-------------------+---+-----------------------------+-----------------------+--------------------------+
| Finance costs | | | | |
+-------------------+---+-----------------------------+-----------------------+--------------------------+
| Interest on bank | | | 6,677 | 5,373 |
| borrowings and | | | | |
| finance leases | | | | |
+-------------------+---+-----------------------------+-----------------------+--------------------------+
| Increase in | | | 192 | - |
| valuation of | | | | |
| shares classified | | | | |
| as financial | | | | |
| liabilities | | | | |
+-------------------+---+-----------------------------+-----------------------+--------------------------+
| | | | --------------------- | ------------------------ |
+-------------------+---+-----------------------------+-----------------------+--------------------------+
| | | | 6,869 | 5,373 |
+-------------------+---+-----------------------------+-----------------------+--------------------------+
| | | | =========== | ========== |
+---------+---------+---+---------+---------+---------+-------------+---------+----------------+---------+
Included within administrative expenses is a loss of GBP11,000 (2008: GBP51,000)
in respect of the impairment of trade receivables.
7. Earnings per share
a) Basic
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of ordinary shares
in issue during the year.
+------------------------------+---------------+-+------------+-----------------------------+-----------------------------+
| From continuing operations | | | 2009 | 2008 |
+------------------------------+-----------------+------------+-----------------------------+-----------------------------+
| | | | GBP'000 | GBP'000 |
+----------------------------------------------+-+------------+-----------------------------+-----------------------------+
| | | | | |
+----------------------------------------------+-+------------+-----------------------------+-----------------------------+
| Profit attributable to equity holders of the | | | 4,954 | 8,037 |
| Company | | | | |
+----------------------------------------------+-+------------+-----------------------------+-----------------------------+
| Loss/(profit) from discontinued operations | | | 5,189 | (915) |
+----------------------------------------------+-+------------+-----------------------------+-----------------------------+
| | | | --------------------------- | --------------------------- |
+----------------------------------------------+-+------------+-----------------------------+-----------------------------+
| Profit from continuing operations used to | | | 10,143 | 7,122 |
| determine basic earnings per share | | | | |
+----------------------------------------------+-+------------+-----------------------------+-----------------------------+
| | | | | |
+----------------------------------------------+-+------------+-----------------------------+-----------------------------+
| Weighted average number of ordinary shares | | | 72,528,482 | 68,100,097 |
| in issue | | | | |
+----------------------------------------------+-+------------+-----------------------------+-----------------------------+
| | | | ================== | ================= |
+------------------------------+-----------------+------------+-----------------------------+-----------------------------+
| Basic earnings per share (pence per share) | | | 14.0 | 10.5 |
+----------------------------------------------+-+------------+-----------------------------+-----------------------------+
| | | | ================== | ================= |
+------------------------------+---------------+-+------------+-----------------------------+-----------------------------+
+------------------------------+---------------+-+------------+-------------------+------------------+
| From continuing and | | | 2009 | 2008 |
| discontinued operations | | | | |
+------------------------------+-----------------+------------+-------------------+------------------+
| | | | GBP'000 | GBP'000 |
+----------------------------------------------+-+------------+-------------------+------------------+
| | | | | |
+----------------------------------------------+-+------------+-------------------+------------------+
| Profit attributable to equity holders of the | | | 4,954 | 8,037 |
| Company | | | | |
+----------------------------------------------+-+------------+-------------------+------------------+
| | | | | |
+----------------------------------------------+-+------------+-------------------+------------------+
| Weighted average number of ordinary shares | | | 72,528,482 | 68,100,097 |
| in issue | | | | |
+----------------------------------------------+-+------------+-------------------+------------------+
| | | | ================= | ================ |
+------------------------------+-----------------+------------+-------------------+------------------+
| Basic earnings per share (pence per share) | | | 6.8 | 11.8 |
+----------------------------------------------+-+------------+-------------------+------------------+
| | | | ================= | ================ |
+------------------------------+---------------+-+------------+-------------------+------------------+
b) Diluted
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares. Dilutive potential ordinary shares comprise share
options and warrants. A calculation is made to determine the number of shares
that could have been acquired at fair value (determined as the average annual
market share price of the Company's shares) based on the monetary value of the
subscription rights attached to outstanding share options and warrants. The
number of shares calculated as above is compared with the number of shares that
would have been issued assuming the exercise of the share options and warrants.
+------------------------------+-----------+-+-----------+--+---+-----------------------------+----------------------------+
| From continuing operations | | | 2009 | 2008 |
+------------------------------+----------------------------+---+-----------------------------+----------------------------+
| | | | GBP'000 | GBP'000 |
+------------------------------------------+-+------------------+-----------------------------+----------------------------+
| | | | | |
+--------------------------------------------------------+--+---+-----------------------------+----------------------------+
| Profit attributable to equity holders of the Company | | | 4,954 | 8,037 |
+--------------------------------------------------------+--+---+-----------------------------+----------------------------+
| Loss/(profit) from discontinued | | | 5,189 | (915) |
| operations | | | | |
+------------------------------------------+-+------------------+-----------------------------+----------------------------+
| | | | --------------------------- | -------------------------- |
+------------------------------------------+-+------------------+-----------------------------+----------------------------+
| Profit from continuing operations used | | | 10,143 | 7,122 |
| to determine diluted earnings per share | | | | |
+------------------------------+-----------+-+-----------+--+---+-----------------------------+----------------------------+
+------------------------------+------------------------+--+--+-----------------------------+-----------------------------+
| Weighted average number of ordinary shares in issue | | | 72,528,482 | 68,100,097 |
+-------------------------------------------------------+--+--+-----------------------------+-----------------------------+
| | | | | |
+-------------------------------------------------------+--+--+-----------------------------+-----------------------------+
| Adjustments for: | | | | |
+-------------------------------------------------------+--+--+-----------------------------+-----------------------------+
| - share options and warrants | | | 1,585,965 | 1,829,827 |
+-------------------------------------------------------+--+--+-----------------------------+-----------------------------+
| | | | --------------------------- | --------------------------- |
+-------------------------------------------------------+--+--+-----------------------------+-----------------------------+
| Weighted average number of ordinary shares used for | | | 74,114,447 | 69,929,924 |
| diluted earnings | | | | |
| per share | | | | |
+-------------------------------------------------------+--+--+-----------------------------+-----------------------------+
| | | | ================= | ================= |
+------------------------------+---------------------------+--+-----------------------------+-----------------------------+
| Diluted earnings per share (pence per share) | | | 13.7 | 10.1 |
+-------------------------------------------------------+--+--+-----------------------------+-----------------------------+
| | | | ================= | ================= |
+------------------------------+------------------------+--+--+-----------------------------+-----------------------------+
+------------------------------+--------+-+--------+--------+---+------------------------------------------+------------------------------------------+
| From continuing and | | | 2009 | 2008 |
| discontinued operations | | | | |
+------------------------------+----------------------------+---+------------------------------------------+------------------------------------------+
| | | | GBP'000 | GBP'000 |
+---------------------------------------+-+---------------------+------------------------------------------+------------------------------------------+
| | | | | |
+---------------------------------------+-+---------------------+------------------------------------------+------------------------------------------+
| | | | 4,954 | 8,037 |
| Profit attributable to equity holders | | | | |
| of the Company | | | | |
+---------------------------------------+-+---------------------+------------------------------------------+------------------------------------------+
| | | | | |
+---------------------------------------+-+---------------------+------------------------------------------+------------------------------------------+
| Weighted average number of ordinary | | | 72,528,482 | 68,100,097 |
| shares in issue | | | | |
+---------------------------------------+-+---------------------+------------------------------------------+------------------------------------------+
| | | | | |
+---------------------------------------+-+---------------------+------------------------------------------+------------------------------------------+
| Adjustments for: | | | | |
+---------------------------------------+-+---------------------+------------------------------------------+------------------------------------------+
| - share options and warrants | | | 1,585,965 | 1,829,827 |
+---------------------------------------+-+---------------------+------------------------------------------+------------------------------------------+
| | | | --------------------------------------- | ---------------------------------------- |
+---------------------------------------+-+---------------------+------------------------------------------+------------------------------------------+
| Weighted average number of ordinary | | | 74,114,447 | 69,929,924 |
| shares used for diluted earnings per | | | | |
| share | | | | |
+---------------------------------------+-+---------------------+------------------------------------------+------------------------------------------+
| | | | ======================================== | ======================================== |
+---------------------------------------+-+---------------------+------------------------------------------+------------------------------------------+
| Diluted earnings per share (pence per | | | 6.7 | 11.5 |
| share) | | | | |
+---------------------------------------+-+---------------------+------------------------------------------+------------------------------------------+
| | | | ======================================== | ======================================== |
+------------------------------+--------+-+--------+--------+---+------------------------------------------+------------------------------------------+
8. Employee benefit expense
+------------------------------+---------------+-+------------+----------------------------+---------------------------+
| | | | 2009 | 2008 |
+----------------------------------------------+-+------------+----------------------------+---------------------------+
| | | | GBP'000 | GBP'000 |
+----------------------------------------------+-+------------+----------------------------+---------------------------+
| | | | | |
+----------------------------------------------+-+------------+----------------------------+---------------------------+
| Wages and salaries | | | 19,276 | 17,424 |
+----------------------------------------------+-+------------+----------------------------+---------------------------+
| Social security costs | | | 1,947 | 1,597 |
+----------------------------------------------+-+------------+----------------------------+---------------------------+
| Pension costs - defined benefit plans (Note | | | 292 | 454 |
| 18) | | | | |
+----------------------------------------------+-+------------+----------------------------+---------------------------+
| Other pension contributions | | | 300 | - |
+----------------------------------------------+-+------------+----------------------------+---------------------------+
| Share-based payments (Note 24) | | | 140 | 440 |
+----------------------------------------------+-+------------+----------------------------+---------------------------+
| | | | -------------------------- | ------------------------- |
+----------------------------------------------+-+------------+----------------------------+---------------------------+
| | | | 21,955 | 19,915 |
+----------------------------------------------+-+------------+----------------------------+---------------------------+
| | | | ================= | ============= |
+------------------------------+---------------+-+------------+----------------------------+---------------------------+
The average monthly number of employees (excluding non-executive directors) was:
+------------------------------+---------------+-+------------+----------------------------+-----------------------------+
| | | | 2009 | 2008 |
+----------------------------------------------+-+------------+----------------------------+-----------------------------+
| | | | Number | Number |
+----------------------------------------------+-+------------+----------------------------+-----------------------------+
| | | | | |
+----------------------------------------------+-+------------+----------------------------+-----------------------------+
| Directors | | | 4 | 2 |
+----------------------------------------------+-+------------+----------------------------+-----------------------------+
| Production and operations | | | 485 | 419 |
+----------------------------------------------+-+------------+----------------------------+-----------------------------+
| Sales, marketing and distribution | | | 32 | 15 |
+----------------------------------------------+-+------------+----------------------------+-----------------------------+
| Administration | | | 164 | 134 |
+----------------------------------------------+-+------------+----------------------------+-----------------------------+
| | | | -------------------------- | --------------------------- |
+----------------------------------------------+-+------------+----------------------------+-----------------------------+
| | | | 685 | 570 |
+----------------------------------------------+-+------------+----------------------------+-----------------------------+
| | | | =============== | =============== |
+------------------------------+---------------+-+------------+----------------------------+-----------------------------+
The increase in the average monthly number of employees during the year ended 31
March 2009 is due to the full year effect of employing staff previously
connected with prior year acquisitions.
9. Cash and cash equivalents
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | Group | Group |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | 2009 | 2008 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | GBP'000 | GBP'000 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | | |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Cash and cash equivalents | | | 4,533 | 4,219 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Short-term deposits | | | 17,965 | 8,677 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | --------------------------- | --------------------------- |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | 22,498 | 12,896 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | ================= | ================= |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
Cash, cash equivalents and bank overdrafts include the following for the
purposes of the cash flow statement:
+------------------------------+------------+------------+---------------------------+-----------------------------+
| | | | Group | Group |
+------------------------------+------------+------------+---------------------------+-----------------------------+
| | | | 2009 | 2008 |
+------------------------------+------------+------------+---------------------------+-----------------------------+
| | | | GBP'000 | GBP'000 |
+------------------------------+------------+------------+---------------------------+-----------------------------+
| | | | | |
+------------------------------+------------+------------+---------------------------+-----------------------------+
| Cash and cash equivalents | | | 22,498 | 12,896 |
+------------------------------+------------+------------+---------------------------+-----------------------------+
| Bank overdrafts | | | (3,693) | (12,502) |
+------------------------------+------------+------------+---------------------------+-----------------------------+
| | | | ------------------------- | --------------------------- |
+------------------------------+------------+------------+---------------------------+-----------------------------+
| | | | 18,805 | 394 |
+------------------------------+------------+------------+---------------------------+-----------------------------+
| | | | =============== | ================ |
+------------------------------+------------+------------+---------------------------+-----------------------------+
At 31 March 2009, the cash at bank and short-term deposits were held with ten
different international banks (2008: nine). Financial assets are placed with
banks at floating rates over periods ranging from overnight to three months
depending upon forecast cash flow movements and earn interest at prevailing
rates in the money market.
Included within short term deposits is an amount representing GBP6.5m, which is
held as security against borrowings. Per the borrowing agreement this amount is
to be held on deposit until the loan's maturity date. The monies deposited shall
be used to repay any residual balances on the borrowings at the maturity date.
10. Derivative financial instruments
Interest rate swaps
At 31 March 2009, three cash flow hedge arrangements were in place covering
loans of GBP44.5 million at a fixed rate of 5.795% payable monthly, GBP7.9m
million at a fixed rate of 4.63% monthly (2008: GBPnil) and GBP3.7m at a fixed
rate of 3.43% monthly (2008: GBPnil)
The fair value of the hedge arrangements at 31 March 2009 represents a liability
of GBP7.125 million (2008: asset of GBP2.19m) giving rise to a negative hedging
reserve of GBP5.130 million. A deferred tax asset of GBP1.995m has been
reflected in the hedging reserve.
These amounts are based on market values of equivalent instruments at the
balance sheet date. The interest rate swaps are designated and effective as cash
flow hedges and the fair value thereof has been taken to the hedging reserve. An
analysis of the financial instruments designated as hedging instruments, their
fair values at reporting date and the nature of risks being hedged is set out
below.
+----------+-------------+----------+-------------+------------------------+--------------------------+----------------------------+----------------------------+
| Title | Description | Nature | Period | Swap | Settlement | Fair | Swap |
| | | of Risk | termination | fair | paid | value | fair |
| | | being | dates | value | | movement | value |
| | | hedged | | pre | | in the | post |
| | | | | settlement | | year | settlement |
| | | | | 31.03.08 | | | 31.03.09 |
+----------+-------------+----------+-------------+------------------------+--------------------------+----------------------------+----------------------------+
| | | | | | | | |
+----------+-------------+----------+-------------+------------------------+--------------------------+----------------------------+----------------------------+
| | | | | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------+-------------+----------+-------------+------------------------+--------------------------+----------------------------+----------------------------+
| | | | | | | | |
+----------+-------------+----------+-------------+------------------------+--------------------------+----------------------------+----------------------------+
| HBOS | Cash | Interest | 31 March | 2,001 | 2,083 | (10,227) | (6,143) |
| Swap | Flow | Rate | 2021 | | | | |
| | Hedge | Risk | | | | | |
+----------+-------------+----------+-------------+------------------------+--------------------------+----------------------------+----------------------------+
| Co-Op | Cash | Interest | | 189 | 318 | (1,282) | (775) |
| Swap | Flow | Rate | 19 April | | | | |
| | Hedge | Risk | 2026 | | | | |
+----------+-------------+----------+-------------+------------------------+--------------------------+----------------------------+----------------------------+
| Barclays | Cash | Interest | 14 | - | 24 | (231) | (207) |
| Swap | Flow | Rate | October | | | | |
| | Hedge | Risk | 2010 | | | | |
+----------+-------------+----------+-------------+------------------------+--------------------------+----------------------------+----------------------------+
| | | | |---------------------- |------------------------ |-------------------------- |-------------------------- |
+----------+-------------+----------+-------------+------------------------+--------------------------+----------------------------+----------------------------+
| Total | | | | 2,190 | 2,425 | (11,740) | (7,125) |
+----------+-------------+----------+-------------+------------------------+--------------------------+----------------------------+----------------------------+
| | | | | ============= | ============== | =============== | =============== |
+----------+-------------+----------+-------------+------------------------+--------------------------+----------------------------+----------------------------+
11. Share capital
+------------------------------+--------------------------------+--------------------------------+----------------------------+-----------------------------+
| | Number of | Share | Share | Total |
| | Shares | capital | premium | |
+------------------------------+--------------------------------+--------------------------------+----------------------------+-----------------------------+
| | | GBP'000 | GBP'000 | GBP'000 |
+------------------------------+--------------------------------+--------------------------------+----------------------------+-----------------------------+
| | | | | |
+------------------------------+--------------------------------+--------------------------------+----------------------------+-----------------------------+
| At 1 April 2008 | 71,832,554 | 17,958 | 25,197 | 43,155 |
+------------------------------+--------------------------------+--------------------------------+----------------------------+-----------------------------+
| | ------------------------------ | ------------------------------ | -------------------------- | --------------------------- |
+------------------------------+--------------------------------+--------------------------------+----------------------------+-----------------------------+
| Proceeds from ordinary | 1,546,852 | 387 | 918 | 1,305 |
| shares issued | | | | |
+------------------------------+--------------------------------+--------------------------------+----------------------------+-----------------------------+
| Equity element of compound | 7,917,000 | 7,917 | - | 7,917 |
| financial instruments issued | | | | |
+------------------------------+--------------------------------+--------------------------------+----------------------------+-----------------------------+
| | ------------------------------ | ------------------------------ | -------------------------- | --------------------------- |
+------------------------------+--------------------------------+--------------------------------+----------------------------+-----------------------------+
| At 31 March 2009 | 81,296,406 | 26,262 | 26,115 | 52,377 |
+------------------------------+--------------------------------+--------------------------------+----------------------------+-----------------------------+
| | =================== | =================== | ================ | ================ |
+------------------------------+--------------------------------+--------------------------------+----------------------------+-----------------------------+
The total authorised number of ordinary shares is 95,000,000 (2008: 95,000,000)
with a nominal value of 25 pence per share (2008: 25 pence per share). All
issued shares are fully paid.
In addition, the Company issued 1,546,852 shares in part consideration for two
acquisitions made in prior years, one of which was made by another Group
company, in settlement of deferred consideration.
On 28 January 2009, 15,000,000 preference shares were issued at nominal value.
The associated costs of share issue amounted to GBP230,000. In addition
GBP7,045,000 of these shares have been classified as financial liabilities.
GBP7,917,000 of these shares have been classified as equity as the shares can be
converted into ordinary shares of the Group.
Share-based payments
The charge for the year in respect of share-based payments, comprising share
options and warrants, is GBP196,000 (2008: GBP440,000).
a) Share options
Share options are granted to directors and to selected employees. The Group has
no legal or constructive obligation to repurchase or settle the options in cash.
Movements in the number of share options outstanding and their related weighted
average exercise prices are as follows:
+------------------------------+--------------------+--------------------------+--------------------+-----------------------+
| | 31 March 2009 | 31 March 2008 |
+------------------------------+-----------------------------------------------+--------------------------------------------+
| | Average | Options | Average | Options |
| | exercise | | exercise | |
| | price | | price | |
+------------------------------+--------------------+--------------------------+--------------------+-----------------------+
| | GBP per | | GBP per | |
| | share | | share | |
+------------------------------+--------------------+--------------------------+--------------------+-----------------------+
| | | | | |
+------------------------------+--------------------+--------------------------+--------------------+-----------------------+
| At 1 April | 1.77 | 1,819,327 | 1.36 | 1,736,205 |
+------------------------------+--------------------+--------------------------+--------------------+-----------------------+
| Granted | - | - | 2.5858 | 689,500 |
+------------------------------+--------------------+--------------------------+--------------------+-----------------------+
| Exercised | - | - | 2.14 | (60,000) |
+------------------------------+--------------------+--------------------------+--------------------+-----------------------+
| Forfeited | 1.82 | (466,724) | 1.69 | (521,378) |
+------------------------------+--------------------+--------------------------+--------------------+-----------------------+
| Lapsed | - | - | 1.36 | (25,000) |
+------------------------------+--------------------+--------------------------+--------------------+-----------------------+
| | ------------------ | ------------------------ | ------------------ | --------------------- |
+------------------------------+--------------------+--------------------------+--------------------+-----------------------+
| At 31 March | 1.76 | 1,352,603 | 1.77 | 1,819,327 |
+------------------------------+--------------------+--------------------------+--------------------+-----------------------+
| | =========== | ============= | ============= | ============ |
+------------------------------+--------------------+--------------------------+--------------------+-----------------------+
Out of the 1,352,603 outstanding options (2008: 1,819,327), 290,000 (2008:
290,000) were exercisable.
Share options outstanding at the end of the year have the following expiry date
and exercise prices:
+-----------------------------+------------+--------------+-----------------------------+-----------------------------+
| Expiry date | | Exercise | Shares | Shares |
| | | price | | |
+-----------------------------+------------+--------------+-----------------------------+-----------------------------+
| | | GBP per | 31.3.09 | |
| | | share | | 31.3.08 |
+-----------------------------+------------+--------------+-----------------------------+-----------------------------+
| | | | | |
+-----------------------------+------------+--------------+-----------------------------+-----------------------------+
| 4 December 2013 | | 1.00 | 210,000 | 290,000 |
+-----------------------------+------------+--------------+-----------------------------+-----------------------------+
| 29 March 2017 | | 1.45 | 698,103 | 919,827 |
+-----------------------------+------------+--------------+-----------------------------+-----------------------------+
| 30 July 2017 | | 2.30 | 120,000 | 185,000 |
+-----------------------------+------------+--------------+-----------------------------+-----------------------------+
| 30 July 2007 | | 3.00 | 160,000 | 260,000 |
+-----------------------------+------------+--------------+-----------------------------+-----------------------------+
| 22 November 2017 | | 2.30 | 100,000 | 100,000 |
+-----------------------------+------------+--------------+-----------------------------+-----------------------------+
| 22 November 2017 | | 3.00 | 40,000 | 40,000 |
+-----------------------------+------------+--------------+-----------------------------+-----------------------------+
| 28 November 2017 | | 2.04 | 24,500 | 24,500 |
+-----------------------------+------------+--------------+-----------------------------+-----------------------------+
| | | | --------------------------- | --------------------------- |
+-----------------------------+------------+--------------+-----------------------------+-----------------------------+
| | | | 1,352,603 | 1,819,327 |
+-----------------------------+------------+--------------+-----------------------------+-----------------------------+
| | | | ================ | =============== |
+-----------------------------+------------+--------------+-----------------------------+-----------------------------+
The fair value of options at grant date were determined using the Black-Scholes
method.
12. Borrowings
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | Group | Group |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | 2009 | 2008 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | GBP'000 | GBP'000 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Non-current | | | | |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Bank borrowings | | | 27,693 | 18,961 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Finance lease liabilities | | | 53,983 | 50,002 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Other loans | | | - | 1,007 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | --------------------------- | --------------------------- |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | 81,676 | 69,970 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | ================ | ================ |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | Group | Group |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | 2009 | 2008 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | GBP'000 | GBP'000 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Current | | | | |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Bank overdrafts | | | 3,693 | 12,502 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Bank borrowings | | | 4,319 | 5,989 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Finance lease liabilities | | | 8,831 | 8,084 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Other loans | | | - | 250 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | --------------------------- | --------------------------- |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | 16,843 | 26,825 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | ================ | ================ |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
+------------------------------+------------+------------+-----------------+-----------------+
| Total borrowings | | | 98,519 | 96,795 |
+------------------------------+------------+------------+-----------------+-----------------+
| | | | =============== | =============== |
+------------------------------+------------+------------+-----------------+-----------------+
Total borrowings include secured liabilities of GBP98,519 million (2008:
GBP96,795 million). The Group's bank loans and overdrafts are secured by a
debenture over the assets of the Group.
The increase in total borrowings is due to the increase in asset backed finance
in the year. Non recourse finance amounts outstanding have fallen by GBP3m in
the year.
Finance lease liabilities principally relate to assets provided to customers
under long-term arrangements.
The repayment dates of the Group's borrowings are as follows:
+------------------------------+------------+------------+----------------------------+---------------------------+
| | | | Group | Group |
+------------------------------+------------+------------+----------------------------+---------------------------+
| | | | 2009 | 2008 |
+------------------------------+------------+------------+----------------------------+---------------------------+
| | | | GBP'000 | GBP'000 |
+------------------------------+------------+------------+----------------------------+---------------------------+
| | | | | |
+------------------------------+------------+------------+----------------------------+---------------------------+
| Less than one year | | | 16,843 | 26,825 |
+------------------------------+------------+------------+----------------------------+---------------------------+
| One to two years | | | 21,353 | 9,169 |
+------------------------------+------------+------------+----------------------------+---------------------------+
| Two to five years | | | 33,999 | 32,944 |
+------------------------------+------------+------------+----------------------------+---------------------------+
| After five years | | | 26,324 | 27,857 |
+------------------------------+------------+------------+----------------------------+---------------------------+
| | | | -------------------------- | ------------------------- |
+------------------------------+------------+------------+----------------------------+---------------------------+
| | | | 98,519 | 96,795 |
+------------------------------+------------+------------+----------------------------+---------------------------+
| | | | ============== | ============== |
+------------------------------+------------+------------+----------------------------+---------------------------+
Bank borrowings
Bank borrowings mature until November 2016.
Details of the Group's bank borrowings at 31 March 2009 are summarised as
follows:
+--------------------------+--------------------------+--------------------------+--------------------------+
| Date | Initial loan | Term | Rate |
+--------------------------+--------------------------+--------------------------+--------------------------+
| November 2007 | GBP16 million | 9 years | 1.75% over 1 month Libor |
+--------------------------+--------------------------+--------------------------+--------------------------+
| November 2007 | GBP5 million | 41 months | 2% over 1 month Libor |
+--------------------------+--------------------------+--------------------------+--------------------------+
| January 2008 | GBP1.5 million | 5 years | 1.6% over 3 month Libor |
+--------------------------+--------------------------+--------------------------+--------------------------+
| July 2008 | GBP4.5 million | 20 months | 2.5% over 3 month Libor |
+--------------------------+--------------------------+--------------------------+--------------------------+
| September 2008 | GBP4.1 million | 5 years | 2.75% over 1 month Libor |
+--------------------------+--------------------------+--------------------------+--------------------------+
| September 2008 | GBP0.96m | 7 years | 2.5% over 1 month Libor |
+--------------------------+--------------------------+--------------------------+--------------------------+
| March 2009 | GBP4m | 4 years | 2% over base |
+--------------------------+--------------------------+--------------------------+--------------------------+
At 31 March 2009, the Group had seven principal loans with four different
financial institutions. Loans of GBP16 million and GBP5 million were repayable
over 9 years and 3.5 years respectively at a rate of 2% over 3-month Libor.
The fair value of the non-current borrowings is as follows:
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | Group | Group |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | 2009 | 2008 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | GBP'000 | GBP'000 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | | |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Bank borrowings | | | 27,693 | 18,961 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Finance lease liabilities | | | 53,983 | 50,002 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| Other loans | | | - | 1,007 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | --------------------------- | --------------------------- |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | 81,676 | 69,970 |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
| | | | ================ | ================ |
+------------------------------+------------+------------+-----------------------------+-----------------------------+
The fair value of current borrowings equals their carrying amount, as the impact
of discounting is not significant. The fair values are based on cash flows
discounted using a rate based on the borrowing rate of 6.5% (2008: 6.75%).
The carrying amounts of short-term borrowings approximate their fair value.
The facilities expiring within one year are annual facilities subject to review
at various dates during 2009. The other facilities have been arranged to help
finance the ongoing build programme for the London Fire and Emergency Planning
Authority and the Lincolnshire Fire and Rescue Service.
13. Reconciliation of profit before tax to net cash generated from operations
+------------------------------------------+-+------------+----------------------------+----------------------------+
| | | | 2009 | 2008 |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| | | | GBP'000 | GBP'000 |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| | | | | |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| Profit for the year before taxation | | | 6,089 | 9,897 |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| | | | | |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| Adjustments for: | | | | |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| - Depreciation | | | 6,546 | 7,462 |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| - Amortisation | | | 223 | 23 |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| - Profit on disposal of property, plant | | | (292) | (16) |
| and equipment | | | | |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| - Profit on disposal of subsidiary | | | - | (1,000) |
| undertakings | | | | |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| - Increase in share-based payments | | | 140 | 440 |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| - Movement in restructuring provision | | | (1,549) | 1,549 |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| - Decrease in retirement benefit | | | - | (142) |
| obligations | | | | |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| - Finance income | | | (717) | (429) |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| - Finance costs | | | 6,869 | 5,373 |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| Changes in working capital (excluding | | | | |
| the effects of acquisitions) | | | | |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| - Inventories | | | (697) | 1,493 |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| - Trade and other receivables | | | (2,625) | 452 |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| - Trade and other payables | | | (972) | (10,979) |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| | | | -------------------------- | -------------------------- |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| Cash generated from operations | | | 13,015 | 14,123 |
+------------------------------------------+-+------------+----------------------------+----------------------------+
| | | | ============= | ============= |
+------------------------------------------+-+------------+----------------------------+----------------------------+
14. Events after the balance sheet date
On 9th June 2009, the Board recommended a final dividend for the year to 31
March 2009 of 1.25p per share (2008 1p per share). This dividend has not been
included as a liability at 31 March 2009.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR IFFEFRTIELIA
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