Mercury Recycling Group PLC
17 May 2006
MERCURY RECYCLING GROUP PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005
Mercury Recycling Group PLC, the recycler of fluorescent light tubes and sodium
street lights, quoted on AIM, announces final results for the year ended 31
December 2005.
• Group sales up 34% to £2,147,000 (2004: £1,603,000)
• Operating profit before goodwill and relocation costs up 52% to
£268,000 (2004: £176,000)
• Loss before tax of £164,000 (2004: £31,000 loss) after charging
goodwill of £204,000 (2004: £204,000) and relocation costs of £216,000
(2004: Nil)
Enquiries:
Simon Lebor, Group Chief Executive
Mercury Recycling Group PLC Tel: 0161 877 0977
CHAIRMAN'S STATEMENT
I am pleased to report the continued progress of the Group for the year ended 31
December 2005. Sales increased by 34 per cent. to £2,147,000 from £1,603,000 in
2004. Operating profit increased by 52 per cent. to £286,000 as against
£176,000 in 2004. Relocation costs of £216,000 have been written off to the
Profit and Loss Account in 2005. Despite the capital expenditure and relocation
costs, in this transitional year, the cash position and facilities remain
strong.
The relocation to Mercury House witnessed the introduction and installation of
our own new proprietary and much more productive British made plant and
equipment. The installation of this exciting new technology means that our
plant will operate two production lines, one for recycling of fluorescent tubes
and the other for the recycling of all other lamp types. The new productive
capacity will provide substantial opportunities to expand the sales growth on
the existing cost base. The new recycling centre was officially opened by
Baroness Young, the Chief Executive of the Environment Agency, in November 2005.
The WEEE Directive, when implemented, should provide a further boost to sales,
as all Gas Discharge lamps in the UK will then have to be recycled.
Implementation should have been introduced in 2005, but this has been further
delayed by the Government. It is now expected that the Directive will come into
operation at the end of 2006 or early 2007, but in the interim sales have
increased, reflecting the corporate social responsibility of all our clients to
implement an environmental improvement agenda. It is now established that
recycling is firmly fixed at the centre of Industry, Commercial and Domestic
life, and your board believe that the sector will continue to offer great
opportunities for the Group.
I can report that current trading is showing that sales continue to grow with
new customers coming on board every month.
On your behalf I would again like to thank my colleagues and all our staff for
their hard work and continued commitment to the Group.
The Rt Hon The Lord Barnett JP PC
Chairman
GROUP PROFIT AND LOSS ACCOUNT
2005 2004
£000 £000
Turnover 2,147 1,603
Cost of sales (218) (188)
Gross profit 1,929 1,415
Administrative expenses (2,081) (1,443)
Operating profit before amortisation and relocation costs 268 176
Relocation costs (216) -
Goodwill amortisation (204) (204)
Group operating loss (152) (28)
Interest receivable 2 3
Interest payable (14) (6)
Loss on ordinary activities before taxation (164) (31)
Taxation - -
Loss on ordinary activities after taxation retained for the year (164) (31)
(Loss) earnings per share - Basic (0.49p) (0.09p)
- Diluted n/a n/a
The group's operation in the year continued unchanged; no operations were
disposed of or acquired.
There are no recognised gains or losses other than those passing through the
profit and loss account.
GROUP BALANCE SHEET
2005 2004
£'000 £'000
Fixed assets
Intangible assets 3,225 3,429
Tangible assets 1,142 578
4,367 4,007
Current assets
Debtors 531 347
Cash at bank and in hand 1 170
532 517
Creditors: amounts falling due within one year (515) (294)
Net current assets 17 223
Total assets less current liabilities 4,384 4,230
Creditors: amounts falling due after more than one year (308) (34)
Provisions for liabilities and charges (44) -
4,032 4,196
Capital and reserves
Called up share capital 3,336 3,336
Share premium account 242 242
Other reserve 530 695
Merger reserve (111) (111)
Profit and loss account 35 34
Equity shareholders' funds 4,032 4,196
GROUP CASH FLOW STATEMENT
2005 2004
£'000 £'000
Net cash inflow form operating activities 145 67
Returns on investments and servicing of finance
Interest received 2 3
Interest paid (14) (6)
(12) (3)
Capital expenditure and financial investment
Payments to acquire tangible assets (706) (96)
Acquisitions and disposals
Payment to acquire subsidiary - (7)
Net cash outflow before financing (573) (39)
Financing
Bank loan received 300 -
Repayment of finance lease and hire purchase contract (25) (23)
Decrease in cash (298) (62)
NOTE:
The financial information set out above does not constitute the Company's
financial statements for the year ended 31 December 2005. The financial
statements for 2005 have been audited and will be delivered to the Registrar of
Companies following the Company's Annual General Meeting. The auditors have
reported on the 2004 statements; their report was unqualified and did not
contain a statement under section 237(2) or (3) of the Companies Act 1985.
Copies of the 2005 Report and Accounts will be mailed to shareholders shortly.
Further copies will be available for collection from the Company's offices at
Mercury House, 17 Commerce Way, Trafford Park, Manchester, M17 1HW.
This information is provided by RNS
The company news service from the London Stock Exchange