RNS Number:5039M
Spring Grove Prop. Maintenance PLC
19 June 2003
SPRING GROVE PROPERTY MAINTENANCE PLC
Preliminary results for the year ended 31 January 2003
Spring Grove Property Maintenance plc, the specialist provider of repair and
maintenance services to the social housing and retail sectors, today announces
its preliminary results for the year ended 31 January 2003.
Highlights
* Turnover up 46% to #10.8 million (2002: #7.4 million)
* Profit before tax #395,000 (2002: #394,000)
* Fully diluted EPS of 2.10p (2002: 3.96p as restated)
* Results include an initial contribution from Robert Hawkins
(Contractors) Limited which was acquired in November 2002
* Spring Grove now active in both commercial and public sectors
Chris Phillips, Chairman, commented as follows:
"In an increasingly competitive and demanding marketplace for new business in
the public sector, the Company has continued to invest in systems in order to
enhance its service offering. Spring Grove has also suffered in respect of the
slow build-up in work levels in major contracts. The change in the business mix
combined with increased investment has resulted in lower margins.
These pressures have continued in the first quarter of the current year as a
result of which we expect that trading will be poor in the first half with a
modest recovery during the second six months of the financial year."
Press enquiries:
Kevin Childs and Andrew Milne, Spring Grove Tel: 020 8577 8040
Alex Borrelli and Jonathan Nelson, Shore Capital Tel: 020 7408 4090
SPRING GROVE PROPERTY MAINTENANCE PLC
Preliminary results for the year ended 31 January 2003
Chairman's Statement
I am pleased to report a further successful year of expansion for your Company
with an initial contribution from Robert Hawkins (Contractors) Limited which we
acquired in November 2002.
For the year ended 31 January 2003, turnover rose by 46% to #10.8 million (2002:
#7.4 million). Profit before tax amounted to #395,000 (2002: #394,000) and
fully diluted earnings per share were 2.10p (2002: 3.96p as restated). During
this period, Sean Cufley, our finance director, assisted with the group's
reorganisation and has now left to fill a similar position with another group;
your Board is actively seeking a replacement for this role.
I am also pleased to report that for the second year in succession Spring Grove
won an award in the Deloitte & Touche Indy (Independent on Sunday) 100 Fastest
Growing Company Awards.
The acquisition of Robert Hawkins for a total consideration of #920,000
(#720,000 in cash and #200,000 through the issue of new ordinary shares) adds a
new dimension to the Company. Robert Hawkins provides repair and maintenance
services to the retail sector and includes among its client list such household
names as Boots, Alliance & Leicester and Ladbrokes. The sales, marketing and
systems expertise which Spring Grove has been able to bring to Robert Hawkins is
already having an impact on tendering for contracts in the commercial sector.
In an increasingly competitive and demanding marketplace for new business in the
public sector, the Company has continued to invest in systems in order to
enhance its service offering. Spring Grove has also suffered in respect of the
slow build-up in work levels in major contracts. The change in the business mix
combined with increased investment has resulted in lower margins.
These pressures have continued in the first quarter of the current year as a
result of which we expect that trading will be poor in the first half with a
modest recovery during the second six months of the financial year.
Finally, I would like to thank my fellow directors and the staff of Spring Grove
for their dedication and hard work over the past year.
Chris Phillips
Chairman
SPRING GROVE PROPERTY MAINTENANCE PLC
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2003
2003 2002
as restated
# #
TURNOVER 10,792,813 7,395,637
Cost of sales (7,612,722) (5,000,095)
GROSS PROFIT 3,180,091 2,395,542
Net operating expenses (2,720,109) (1,802,194)
OPERATING PROFIT 459,982 593,348
PROFIT ON ORDINARY ACTIVITIES BEFORE INTEREST 459,982 593,348
Interest receivable 2,326 2,232
Interest payable and similar charges (67,759) (201,186)
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 394,549 394,394
Tax on profit on ordinary activities (137,472) (126,928)
RETAINED PROFIT FOR THE FINANCIAL YEAR 257,077 267,466
Earnings per share - basic 2.12p 3.96p
- diluted 2.10p 3.96p
SPRING GROVE PROPERTY MAINTENANCE PLC
GROUP BALANCE SHEET
AS AT 31 JANUARY 2003
2003 2002
as restated
# # # #
FIXED ASSETS
Intangible assets 611,467 67,856
Tangible assets 1,421,441 1,076,834
2,032,908 1,144,690
CURRENT ASSETS
Stocks 1,283,222 1,018,170
Debtors 2,705,559 1,670,285
Cash at bank and in hand 74,623 409,578
4,063,404 3,098,033
CREDITORS:
Amounts falling due within one year (2,500,274) (1,172,862)
NET CURRENT ASSETS 1,563,130 1,925,171
TOTAL ASSETS LESS CURRENT LIABILITIES 3,596,038 3,069,861
CREDITORS:
Amounts falling due after more than one year (257,493) (200,701)
3,338,545 2,869,160
PROVISION FOR LIABILITIES AND CHARGES
Deferred taxation (88,006) (64,423)
3,250,539 2,804,737
CAPITAL AND RESERVES
Called up share capital 124,284 120,511
Share premium account 2,290,497 2,105,545
Profit and loss account 835,758 578,681
EQUITY SHAREHOLDERS' FUNDS 3,250,539 2,804,737
SPRING GROVE PROPERTY MAINTENANCE PLC
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2003
2003 2002
# #
NET CASH FLOW (OUTFLOW)/INFLOW FROM
OPERATING ACTIVITIES 932,701 (923,439)
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received 2,326 2,232
Interest paid (38,685) (185,022)
Interest element of finance lease (29,074) (16,164)
NET CASH OUTFLOW FROM RETURNS ON INVESTMENTS AND SERVICING OF FINANCE (65,433) (198,954)
TAXATION (94,810) (108,189)
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Payments to acquire tangible fixed assets (277,169) (620,566)
Receipts from sale of fixed assets 19,405 10,275
Payments to acquire intangible fixed assets - (3,888)
NET CASH OUTFLOW FROM CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT (257,764) (614,179)
ACQUISITIONS AND DISPOSALS
Legal fees capitalised in investment (116,605)
Purchase of subsidiary undertaking (905,558) (63,697)
Net cash acquired with subsidiary 89,608
NET CASH FLOW OUTFLOW FOR ACQUISITIONS AND DISPOSALS (932,555) (63,697)
CASH (OUTFLOW) /INFLOW BEFORE FINANCING (417,861) (1,908,458)
FINANCING
Issue of equity share capital 3,773 60,954
Share premium on issue of equity share capital 184,952 1,898,353
Increase in bank loans 12,177 23,413
Capital element of finance lease (117,996) 178,680
NET CASH INFLOW FROM FINANCING 82,906 2,161,400
DECREASE/INCREASE IN CASH (334,955) 252,942
Notes:
1. BASIS OF PREPARATION
The financial information set out in the announcement does not constitute the
statutory accounts for the years ended 31 January 2003 and 2002. The financial
information for the year ended 31 January 2002 is derived from the statutory
accounts for that year which have been delivered to the Registrar of Companies.
The auditors reported on those accounts; their report was unqualified and did
not contain a statement under s237(2) or (3) Companies Act 1985. The statutory
accounts for the year ended 31 January 2003 will be finalised on the basis of
the financial information presented by the directors in this preliminary
announcement and will be delivered to the Registrar of Companies following the
Company's annual general meeting.
2. TAX ON PROFIT ON ORDINARY ACTIVITIES
(a) Analysis of charge in the year 2003 2002
# #
Current tax:
In respect of the year:
UK Corporation tax based on the results for the year at
30% (2002 - 30%) 113,889 95,324
Total current tax 113,889 95,324
Deferred tax:
Increase in deferred tax provision 23,583 31,604
Tax on profit on ordinary activities 137,472 126,928
(b) Factors affecting current tax charge
The tax assessed on the profit on ordinary activities for the year is lower than the
standard rate of corporation tax in the UK of 30% (2002-30%).
2003 2002
# #
Profit on ordinary activities before taxation 394,549 394,394
Profit on ordinary activities by rate of tax 118,365 118,318
Expenses not deductible for tax 1,252 4,307
Income not liable to tax - (3,582)
Tax depreciation in excess of accounting depreciation (617) (14,044)
Adjustments relating to marginal tax relief (5,111) (9,675)
Total current tax 113,889 95,324
3. EARNINGS PER SHARE
2003 2002
as restated
Earnings per ordinary share - basic 2.12p 3.96p
- diluted 2.10p 3.96p
Basic and fully diluted earnings per share have been calculated based on the
earnings attributable to the ordinary shareholders of #257,077 (2002: #267,466
as restated) divided by the weighted average number of ordinary shares of
12,113,965 (2002: 6,749,420) and for diluted earnings per share 12,223,965
(2002: 6,749,420).
4. RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING
ACTIVITIES
2003 2002
# #
Operating profit 459,982 593,348
Depreciation 255,920 177,700
Amortisation 5,138 -
Loss on disposal of fixed assets 3,340 3,361
Increase in stocks (100,959) (577,878)
Increase in debtors (710,239) (369,390)
Increase/(decrease) in creditors 1,019,519 (750,580)
Net cash (outflow) inflow from operating activities 932,701 (923,439)
5. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
2003 2002
# # # #
Decrease/Increase in cash in the period (334,955) 252,942
Net cash inflow from bank loans (12,177) (23,413)
Cash outflow in respect of finance lease 117,996 (178,680)
Change in net debt resulting from cash
flow (229,136) 50,849
New finance leases (244,512)
Change in net debt (473,648) 50,849
Net debt at 1 February 2002 (94,964) (145,813)
Net debt 31 January 2003 (568,612) (94,964)
6. ANALYSIS OF CHANGES IN NET DEBT
At 1 Feb Cash flows Other At 31 Jan
2002 Changes 2003
# # # #
Net cash:
Cash in hand and at bank 409,578 (334,955) - 74,623
Debt:
Debt due within 1 year (188,071) (12,177) - (200,248)
Finance leases (316,471) 117,996 (244,512) (442,987)
(504,542) 105,819 (244,512) (643,235)
Net debt (94,964) (229,136) (244,512) (568,612)
7. CALENDAR
The annual report and accounts will be mailed to registered shareholders at
their registered addresses in June 2003 and, from the date of release, copies
will be made available to the public at the Company's Registered Office, Spring
Grove House, Ivy Road, Hounslow, Middlesex TW3 2DH.
This information is provided by RNS
The company news service from the London Stock Exchange
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