Associated British Engineering PLC
23 December 2004
ASSOCIATED BRITISH ENGINEERING PLC
UNAUDITED RESULTS FOR SIX MONTHS
TO 30 SEPTEMBER 2004
CHAIRMAN'S STATEMENT
Interim Results to 30 September 2004
The Group made a pre-tax loss of £40,000 in the six months to 30th September
2004 compared to a pre-tax loss of £83,000 in the same period last year after
adjusting for the property disposal included in last years interim accounts. The
Directors continue to run the Group with as little expenditure as is reasonably
necessary in order to comply with its legal and regulatory obligations and to
supervise the significant issue facing the Group - the pension scheme.
The trading in British Polar Engines has continued to be satisfactory, and the
Board is still in discussions with the management team there concerning the
management 'buy out' that I have referred to before. Unfortunately, this
transaction (or any involving the Group) cannot proceed until the full situation
concerning the pension scheme has been settled.
Following my description of the proposed settlement with the pension fund
Trustees outlined to shareholders in the 2004 final accounts, I can now write
that OPRA - the government watchdog on pensions - is closing its file on the
matter, on the basis that the Trustees appear to be complying with their legal
duties. We are currently awaiting the final figures from the Trustees' actuaries
on the outstanding liabilities within the sections of the pension scheme. When
those are available, the Board expects to be able to proceed finally to
negotiate and sign the compromise agreement. Thereafter the Board should be able
to make more progress in securing a suitable transaction for the Group.
The Board is well aware that it is frustrating for the Company and for both
classes of shareholders, but it is fundamental to the future of the Group to
settle the pension situation. The Directors are doing their very best to effect
this as soon as possible.
ASSOCIATED BRITISH ENGINEERING PLC
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED 30 SEPTEMBER
2004
Six months Six months
--------------------------- --- ------ ------ to to
---------- ----------
30 30
--------------------------- --- ------ ------ September September
---------- ----------
2004 2003
--------------------------- --- ------ ------ ---------- ----------
£'000's £'000's
--------------------------- --- ------ ------ ---------- ----------
--------------------------- --- ------ ------ ---------- ----------
TURNOVER 1,443 1,540
--------------------------- --- ------ ------ ---------- ----------
--------------------------- --- ------ ------ ---------- ----------
Operating loss (41) (95)
--------------------------- --- ------ ------ ---------- ----------
--------------------------- --- ------ ------ ---------- ----------
Profit on sale of property 0 178
--------------------------- --- ------ ------ ---------- ----------
--------------------------- --- ------ ------ ---------- ----------
(LOSS)/PROFIT ON ORDINARY ACTIVITIES
--------------------------- --- ------ ------ ---------- ----------
BEFORE FINANCE COSTS (41) 83
--------------------------- --- ------ ------ ---------- ----------
--------------------------- --- ------ ------ ---------- ----------
Net finance income 1 12
--------------------------- --- ------ ------ ---------- ----------
--------------------------- --- ------ ------ ---------- ----------
(LOSS)/PROFIT ON ORDINARY ACTIVITIES
-------------------------------- ------ ---------- ----------
----------
BEFORE TAXATION (40) 95
------------------------------ ---- ------ ---------- ----------
------------------------------ ---- ------ ---------- ----------
Taxation 0 0
------------------------------ ---- ------ ---------- ----------
----------
--------------------------- ----- ---- ------ ---------- ----------
(LOSS)/PROFIT ON ORDINARY ACTIVITIES
------------------------------ ---- ------ ---------- ----------
AFTER TAXATION (40) 95
------------------------------ ---- ------ ---------- ----------
------------------------------ ---- ------ ---------- ----------
Appropriation in respect of non-equity
shares (26) (26)
------------------------------ ---- ------ ---------- ----------
----------
--------------------------- ----- ---- ------ ---------- ----------
RETAINED (LOSS)/PROFIT (66) 69
------------------------------ ---- ------ ---------- ----------
ASSOCIATED BRITISH ENGINEERING PLC
UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2004
----------------------- ---------- ---------- ----------
30 September 30 September 31 March
----------------------- ------ ---------- ---------- ----------
2004 2003 2004
----------------------- ------ ---------- ---------- ----------
£'000's £'000's £'000's
----------------------- ------ ---------- ---------- ----------
FIXED ASSETS
----------------------- ------ ---------- ---------- ----------
----------------------- ------ ---------- ---------- ----------
Tangible fixed assets 371 450 413
----------------------- ------ ---------- ---------- ----------
----------------------- ------ ---------- ---------- ----------
CURRENT ASSETS
----------------------- ------ ---------- ---------- ----------
Stock 1,258 1,165 1,260
----------------------- ------ ---------- ---------- ----------
Debtors: amounts falling due
within one year 650 633 516
----------------------- ------ ---------- ---------- ----------
Investments 46 30 39
----------------------- ------ ---------- ---------- ----------
Cash at bank and in hand 1,093 1,439 1,210
----------------------- ------ ---------- ---------- ----------
----------------------- ------ ---------- ---------- ----------
CREDITORS: amounts falling
----------------------- ------ ---------- ---------- ----------
due within one year 757 712 736
----------------------- ------ ---------- ---------- ----------
---------------------------- ---------- ---------- ----------
NET CURRENT ASSETS 2,290 2,555 2,289
---------------------------- ---------- ---------- ----------
----------
----------------------- ------ ---------- ---------- ----------
TOTAL ASSETS LESS
----------------------- ------ ---------- ---------- ----------
CURRENT LIABILITIES 2,661 3,005 2,702
----------------------- ------ ---------- ---------- ----------
----------------------- ------ ---------- ---------- ----------
CREDITORS: amounts falling due
----------------------- ------ ---------- ---------- ----------
after more than one year 4 9 5
----------------------- ------ ---------- ---------- ----------
----------------------- ------ ---------- ---------- ----------
Provisions for liabilities and
charges 60 18 60
----------------------- ------ ---------- ---------- ----------
----------------------- ------ ---------- ---------- ----------
NET ASSETS 2,597 2,978 2,637
----------------------- ------ ---------- ---------- ----------
----------------------- ------ ---------- ---------- ----------
----------------------- ------ ---------- ---------- ----------
CAPITAL AND RESERVES
----------------------- ------ ---------- ---------- ----------
Called up share capital 3,339 3,339 3,339
----------------------- ------ ---------- ---------- ----------
Share premium account 5,038 5,038 5,038
----------------------- ------ ---------- ---------- ----------
Other reserves 11 11 11
----------------------- ------ ---------- ---------- ----------
Profit and loss account (5,791) (5,410) (5,751)
----------------------- ------ ---------- ---------- ----------
----------------------- ------ ---------- ---------- ----------
Equity shareholders' funds 1,655 2,087 1,721
----------------------- ------ ---------- ---------- ----------
Non-equity shareholders' funds 942 891 916
----------------------- ------ ---------- ---------- ----------
----------------------- ------ ---------- ---------- ----------
TOTAL SHAREHOLDERS' FUNDS 2,597 2,978 2,637
----------------------- ------ ---------- ---------- ----------
----------------------- ------ ---------- ---------- ----------
ASSOCIATED BRITISH ENGINEERING PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS TO 30 SEPTEMBER
2004
------ ------- ---------- ----------
30 31 March
-------------------------- ------ ------- September ----------
----------
2004 2004
-------------------------- ------ ------- ---------- ----------
£'000's £'000's
-------------------------- ------ ------- ---------- ----------
-------------------------- ------ ------- ---------- ----------
OPERATING ACTIVITIES
-------------------------- ------ ------- ---------- ----------
Cash outflow from operating activities (117) (194)
-------------------------- ------ ------- ---------- ----------
-------------------------- ------ ------- ---------- ----------
RETURNS ON INVESTMENT AND SERVICING
-------------------------- ------ ------- ---------- ----------
OF FINANCE
-------------------------- ------ ------- ---------- ----------
Finance income received 4 32
-------------------------- ------ ------- ---------- ----------
Bank interest paid (2) (6)
-------------------------- ------ ------- ---------- ----------
Finance cost element of finance lease
rental (1) (1)
payments ------ ------- ---------- ----------
--------------------------
------------------------------ ------- ---------- ----------
----------
Net cash inflow from returns on
investment and ------ ------- ---------- ----------
--------------------------
servicing of finance 1 25
-------------------------- ------ ------- ---------- ----------
------------------------------ ------- ---------- ----------
TAXATION
------------------------------ ------- ---------- ----------
UK taxation paid 0 0
------------------------------ ------- ---------- ----------
------------------------------ ------- ---------- ----------
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
------------------------------ ------- ---------- ----------
Sale of property 0 316
------------------------------ ------- ---------- ----------
Purchase of tangible fixed assets (1) (31)
------------------------------ ------- ---------- ----------
Net proceeds of sale of tangible fixed assets 1 0
------------------------------ ------- ---------- ----------
Sale/purchase of current asset investments 20 (27)
------------------------------ ------- ---------- ----------
------------------------------ ------- ---------- ----------
Net cash inflow from capital expenditure and
financial ------- ---------- ----------
------------------------------
investment 20 258
------------------------------ ------- ---------- ----------
----------
-------------------------- ------ ------- ---------- ----------
MANAGEMENT OF LIQUID RESOURCES
-------------------------- ------ ------- ---------- ----------
Cash held at stockbrokers (20) (12)
-------------------------- ------ ------- ---------- ----------
------------------------------ ------- ---------- ----------
----------
Net cash outflow from the management of
liquid (20) (12)
resources ---- ------- ---------- ----------
----------------------------
------------------------------ ------- ---------- ----------
----------
Cash (outflow)/inflow before financing (116) 77
---------------------------- ---- ------- ---------- ----------
---------------------------- ---- ------- ---------- ----------
FINANCING
---------------------------- ---- ------- ---------- ----------
Capital element of finance lease (1) (5)
repayments ---- ------- ---------- ----------
----------------------------
------------------------------ ------- ---------- ----------
----------
Net cash outflow from financing (1) (5)
-------------------------- ------ ------- ---------- ----------
------------------------------ ------- ---------- ----------
------------------------------ ------- ---------- ----------
----------
(Decrease)/increase in cash in the (117) 72
period ------ ------- ---------- ----------
--------------------------
-------------------------- ------ ------- ---------- ----------
ASSOCIATED BRITISH ENGINEERING PLC
UNAUDITED RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2004
-------- ----------
The calculation of (loss)/profit per ordinary share is based
on: -------- ----------
-------------------------------------
-------- ----------
-------------------------- ------ --------- -------- ----------
2004 loss as per accounts £66,000
-------------------------- ------ --------- -------- ----------
-------------------------- ------ --------- -------- ----------
Weighted average number of shares
1,313,427 ------ --------- -------- ----------
--------------------------
-------------------------- ------ --------- -------- ----------
Loss; pence per share 5.02p
-------------------------- ------ --------- -------- ----------
-------------------------- ------ --------- -------- ----------
2003 profit as per accounts £69,000
-------------------------- ------ --------- -------- ----------
-------------------------- ------ --------- -------- ----------
Weighted average number of shares
1,313,427 ------ --------- -------- ----------
--------------------------
-------------------------- ------ --------- -------- ----------
Profit; pence per share 5.2p
-------------------------- ------ --------- -------- ----------
-------------------------- ------ --------- -------- ----------
1. This interim report has been prepared in accordance with accounting policies
adopted in the latest published accounts. This interim report has neither been
audited nor reviewed by our auditors.
2. As required by Financial Reporting Standard 4 the non-equity dividends have
been charged to the profit and loss account and then added back to reserves
because the company does not have sufficient reserves to make this payment. The
cumulative amount of the preference dividends unpaid as at 30 September 2004 was
£230,000.
3. The comparative figures for the year to 31 March 2004 are abridged from the
accounts for that year and do not constitute full accounts within the meaning of
Section 240 of the Companies Act 1985 (as amended). Statutory accounts for that
period, on which the auditors gave a qualified opinion, have been delivered to
the Registrar of Companies.
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