Friday 25 September, 2009
Norman Hay PLC
Half Yearly Report
RNS Number : 6352Z Norman Hay PLC 25 September 2009
NORMAN HAY plc
Norman Hay plc Interim Results for the six months ended 30 June 2009
Chairman's Statement
The Norman Hay Group achieved pre-tax profits of £433,000 in the six months to 30 June 2009 (2008: £1,785,000) on a turnover of £12.4m (2008: £13.7m).
We have been experiencing turbulent trading conditions around the world since the final quarter of 2008 as our customers were affected by prevailing economic conditions.
Since that time we have been restructuring and adjusting our manufacturing base to help offset the effects of lower customer demand, whilst ensuring that our individual businesses remain in a strong position to take advantage of any long-term growth opportunities.
Basic earnings per share are 3.7p (2008: 8.1p) and we are maintaining the interim dividend of 2.0p per share, reflecting our confidence in the underlying strength of the Group.
This dividend will be paid on 30 October 2009 to shareholders on the register on 2 October 2009.
OPERATIONAL OVERVIEW
· Surface Coatings - 'Armourcote'
Overall divisional sales in the first half were comparable with the same period last year, boosted by the turnover from AST Coventry which we acquired in July 2008.
The surface coatings division remained profitable (prior to exceptional costs) despite losses in some of the automotive focused and start-up operations.
During the second half of 2008 zinc plating operations from our Coventry City Centre site were transferred to AST with a resulting reduction in overheads and in May of this year we disposed of the balance of wet processing on the site, creating a profit on sale of £998,000 on a deferred consideration basis.
Following this disposal we incurred reorganisation and redundancy costs of £203,000 which are reflected in the first half results.
· Automotive Sealants - 'Ultraseal'
Ultraseal performed extremely well in extraordinary trading conditions during which several automotive manufacturers not only slowed down but actually stopped all vehicle production for several months.
Remaining profitable at the operating level in a period which suffered the resultant reduction in turnover is a great result, indicating the depth and strength of this global operation and the strict cost management which has been applied over this difficult period.
· Construction Chemicals - 'TAM International'
Turnover increased by 18% as we expanded into new territories in the Asia-Pacific region.
The construction market in the UK has been very depressed and in Hong Kong there have been similar delays in the roll out of government capital projects and other major infrastructure works.
These are now expected to ramp up in the last quarter of the year but in the meantime it has held back the expected rapid growth of our manufacturing unit in Taiwan.
Losses made in these locations, coupled with the cost of start-up operations and the new Tunnelling & Mining division being set up in South-East Asia and Australia, have led to an overall operating loss in the first half of the year.
Our ability to take advantage of the fast growth opportunities in the Asia-Pacific region has been significantly enhanced by the infrastructure and resources in which we have invested over the past three years.
· Chemical Process Plant & Equipment
Our specialized plant manufacturing business remains profitable and has a record level of orders.
However some of these contracts for capital projects have been delayed by 6 to 9 months as customers manage their cash flows in line with their general levels of business.
OUTLOOK
The Group is well placed to benefit from any improvements in sales as and when economies around the world recover and there is an upturn in industrial end markets.
Peter L Hay
Chairman
25 September 2009
ENDS -
Further information:
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Vic Bellanti
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Tel: 0247 622 9373
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Norman Hay plc
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Andrew Kitchingham
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Tel: 0845 2134730
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Brewin Dolphin
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Statement of Comprehensive Income
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for the half year ended 30 June 2009
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Unaudited 6 months 2009
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Unaudited 6 months 2008
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Audited 12 months 2008
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£000
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£000
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£000
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Revenue
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12,399
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13,681
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27,001
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Cost of sales
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(8,678)
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(8,087)
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(17,175)
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Gross profit
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3,721
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5,594
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9,826
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Distribution costs
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(256)
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(331)
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(1,036)
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Administrative expenses
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(4,131)
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(3,869)
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(6,857)
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Other income
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1,129
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413
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497
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Profit from operations
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463
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1,807
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2,430
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Finance income
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13
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58
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139
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Finance costs
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(43)
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(80)
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(206)
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Profit before taxation
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433
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1,785
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2,363
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Taxation
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(61)
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(568)
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(810)
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Profit after taxation
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372
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1,217
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1,553
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Other comprehensive income for the year, after tax
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Exchange differences on translation of foreign operations
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(263)
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122
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723
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Deferred tax on items taken directly to equity
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0
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8
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4
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Other comprehensive income for the year, net of tax
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(263)
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130
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727
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Total comprehensive income for the year
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109
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1,347
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2,280
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Profit attributable to:
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Owners of the parent
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536
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1,174
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1,562
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Minority interest
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(164)
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43
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(9)
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372
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1,217
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1,553
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Total comprehensive income attributable to:
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Owners of the parent
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259
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1,304
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2,302
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Minority interest
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(150)
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43
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(22)
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109
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1,347
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2,280
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Earnings per share
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Basic earnings per share
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3.7p
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8.1p
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10.7p
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Diluted earnings per share
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3.6p
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8.0p
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10.4p
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Statement of Financial Position
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at 30 June 2009
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Unaudited 6 months 2009
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Unaudited 6 months 2008
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Audited 12 months 2008
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£000
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£000
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£000
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Assets
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Non-current assets
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Intangible assets
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2,850
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2,476
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2,952
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Property, plant and equipment
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5,635
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5,165
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5,837
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Investments
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26
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26
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26
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Other receivables
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850
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7
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-
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Total non-current assets
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9,361
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7,674
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8,815
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Current assets
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Inventories
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2,472
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2,041
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2,846
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Trade and other receivables
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6,148
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6,388
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7,206
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Cash and cash equivalents
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1,343
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3,215
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1,015
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Total current assets
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9,963
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11,644
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11,067
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Total assets
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19,324
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19,318
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19,882
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Liabilities
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Current liabilities
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Financial liabilities
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392
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677
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512
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Trade and other payables
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4,398
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4,738
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4,380
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Provisions
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108
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112
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114
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Current tax liabilities
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313
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902
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653
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Total current liabilities
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5,211
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6,429
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5,659
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Non-current liabilities
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Financial liabilities
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1,768
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1,208
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2,000
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Trade and other payables
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-
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-
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21
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Deferred tax liabilities
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435
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159
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422
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Total non-current liabilities
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2,203
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1,367
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2,443
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Total liabilities
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7,414
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7,796
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8,102
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Net assets
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11,910
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11,522
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11,780
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Equity
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Share capital
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1,481
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1,481
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1,481
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Share premium account
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1,254
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1,254
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1,254
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Capital redemption reserve
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94
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94
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94
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Other reserves
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766
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766
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766
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Reserve for own shares
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(322)
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(322)
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(322)
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Share scheme reserve
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51
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34
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43
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Foreign exchange reserve
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508
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158
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772
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Retained earnings
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7,908
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7,657
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7,372
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Equity attributable to equity holders of the parent company
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11,740
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11,122
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11,460
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Minority interest
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170
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400
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320
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Total equity
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11,910
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11,522
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11,780
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Consolidated Cash Flow Statement
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for the half year ended 30 June 2009
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Unaudited 6 months 2009
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Unaudited 6 months 2008
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Audited 12 months 2008
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Cash flows from operating activities
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£000
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£000
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£000
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Operating profit
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463
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1,807
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2,430
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Profit on sale of business
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(998)
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-
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-
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Release of negative goodwill
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-
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-
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(231)
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Depreciation
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313
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220
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566
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Loss/(profit) on sale of property, plant and equipment
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34
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(388)
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(378)
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Share option charge
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8
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8
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17
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Decrease/(increase) in inventories
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351
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(246)
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(614)
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Decrease in receivables
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1,206
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451
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886
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(Decrease)/increase in payables
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(207)
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808
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(721)
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Increase/(decrease) in provisions
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6
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30
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(28)
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Finance income
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13
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58
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139
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Finance costs
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(43)
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(80)
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(206)
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Tax paid
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(387)
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(335)
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(781)
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Net cash generated from operating activities
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759
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2,333
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1,079
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Cash flows from investing activities
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Acquisition of subsidiaries net of cash acquired
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-
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-
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(210)
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Purchase of property, plant and equipment
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(200)
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(670)
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(1,030)
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Proceeds of disposal of property, plant and equipment
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-
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684
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691
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Net cash (used)/raised in investing activities
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(200)
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14
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(549)
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Cash flows from financing activities
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|
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Dividends paid to shareholders
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-
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-
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(669)
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Payments for purchase of share capital in subsidiary
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-
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-
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(26)
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Net proceeds from issue of share capital to minority shareholders
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-
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197
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197
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Finance lease repayment
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(30)
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(28)
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(59)
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New loans raised
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138
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196
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303
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Repayment of loans
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(157)
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(113)
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(214)
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Net cash (used)/raised in financing activities
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(49)
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252
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(468)
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Net increase in cash and cash equivalents
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510
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2,599
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62
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|
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Cash and cash equivalents at the beginning of the period
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827
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541
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541
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Effects of foreign exchange changes
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6
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75
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224
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|
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|
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Cash and cash equivalent at the end of the period
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1,343
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3,215
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827
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Notes
1. The calculation of basic earnings per share is based on the profit of £536,000 (2008 : £1,174,000) and on the weighted average number of ordinary shares in issue 14,546,000 (2008 : 14,546,000).
2. The half yearly report has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) as endorsed by the European Union using accounting policies that are expected to be applied for the financial year ended 31 December 2009.
3. The financial information in this half-yearly report does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.
4. The comparative financial information for the year ended 31 December 2008 does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The statutory accounts of Norman Hay plc for the year ended 31 December 2008 have been reported on by the Company's auditors and have been delivered to the Registrar of Companies. The auditor's report was unqualified, did not include a reference to matters which the auditors drew attention by way of emphasis without qualifying their report, and did not contain statements under Section 237(2) or 272(3) of the Companies Act 1985.
5. This statement will be sent out to shareholders and copies will be made available at the Company's registered office, Godiva Place Coventry, CV1 5PN. Tel: +44 (0)24 7622 9373 www.normanhay.com
This information is provided by RNS
The company news service from the London Stock Exchange END IR CKQKKPBKDCCB
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