Ensor Holdings PLC ("Ensor" or "the Group")
Interim Results for the Period ended 30 September 2009
Chairman's Statement
RECOVERY
I am pleased to report that the half year to 30 September 2009 has seen good
progress for Ensor with the Group now on an upward trend having seen sales
improve against the second half of last year. Although marginally loss-making
in the first quarter, the second quarter results showed a significant
improvement producing an operating profit of £188,000 for the period. This
result is, of course, a considerable improvement compared with the losses in
the full year to 31 March 2009 previously reported.
This time last year I said that the markets that we operated in had
significantly slowed but that we had not experienced the full effect of this
downturn. It was in the second half of our financial year that we felt the full
impact of the recession which saw the Group's continuing activities only
breaking even. This makes the positive result this time all the more
encouraging.
Hard work by the Ensor management team under the leadership of our new CEO,
Roger Harrison, who was appointed in February 2009, including stronger cost
controls, manpower control, stronger buying and stock control has led to
efficiencies across the Group and contributed to the turn around.
Our cash flow is good and our borrowings have reduced during the last six
months leaving our gearing at 18% compared with 27% at our last year end. Our
debtor position is controlled but we remain careful about giving credit due to
the continuing shortage of cash in all markets.
The charge for financial expenses shown in our result is made up of lower
interest of £36,000 (2008: £47,000) on reduced borrowings and an increased
charge of £81,000 (2008: £15,000) relating to our pension scheme as a result of
the reduction in value of the pension investments following the banking crisis.
During the period we disposed of a subsidiary company, Powerplus, which was not
contributing fully to the business. This disposal had no impact on our balance
sheet. At the end of last year we closed one of our subsidiaries, Hawkins
Salmon, the company mainly responsible for previous Group losses. However, we
retained two important and valuable properties, previously used by Hawkins
Salmon, and we are currently looking at ways to maximise the return from these
assets.
During the next half year, we hope to see a further improvement in profits and
a strengthening of the balance sheet as the remaining companies in the Group
are now performing well. However, many indicators suggest that the national
economy is not out of recession yet. I believe Ensor is now well positioned to
take advantage when it does fully recover and we are again actively looking for
suitable acquisitions to strengthen the Group.
It is our intention to resume dividend payments as soon as possible, but I feel
that it would be prudent not to pay an interim dividend this time. We hope to
have a positive review of dividend policy at our March year end.
This has been a testing period for shareholders, staff and management. I thank
them all for their effort, support and dedication to the improvements being
achieved.
K A Harrison TD
Chairman
11 December 2009
Enquiries:
Ensor Holdings plc 0161 945 5953
Roger Harrison / Marcus Chadwick
Westhouse Securities Limited 0113 246 2610
Tim Feather tim.feather@westhousesecurities.com
Matthew Johnson matthew.johnson@westhousesecurities.com
Condensed Group Income Statement
for the six months ended 30 September 2009
Note Unaudited Unaudited Audited
6 months 6 months 12 months
30/9/09 30/9/08 31/3/09
£'000 restated £'000
£'000
Revenue 10,020 11,837 21,706
Cost of sales (7,449) (8,605) (15,644)
----------- ----------- -----------
Gross profit 2,571 3,232 6,062
Distribution costs (404) (492) (1,068)
Administrative expenses (1,979) (2,113) (4,374)
----------- ----------- -----------
Operating profit 188 627 620
Financial expenses (117) (62) (120)
----------- ----------- -----------
Profit before tax 71 565 500
Income tax expense 2 (10) (173) (47)
----------- ----------- -----------
Profit for the period for 61 392 453
continuing operations
Loss for the period on 4 - (570) (2,732)
discontinued operations
----------- ----------- -----------
Profit/(loss) for the period 61 (178) (2,279)
attributable to equity
shareholders
====== ====== ======
Earnings/(loss) per share 3
Basic and fully diluted 0.2p (0.6p) (7.8p)
====== ====== ======
Condensed Group Statement of Comprehensive Income
for the six months ended 30 September 2009
Profit/(loss) for the period 61 (178) (2,279)
Other comprehensive income:
Actuarial gain and related deferred tax - - (1,521)
----------- ----------- -----------
Total comprehensive income attributable 61 (178) (3,800)
to equity sharesholders
====== ====== ======
Condensed Group Balance Sheet
at 30 September 2009
Unaudited Unaudited Audited
30/9/09 30/9/08 31/3/09
£'000 £'000 £'000
ASSETS
Non-current assets
Property, plant & equipment 4,181 5,919 4,231
Intangible assets 2,438 3,147 2,438
----------- ----------- -----------
Total non-current assets 6,619 9,066 6,669
----------- ----------- -----------
Current assets
Assets held for sale 742 - 1,050
Inventories 2,689 4,523 2,769
Trade and other receivables 4,492 5,628 4,571
----------- ----------- -----------
Total current assets 7,923 10,151 8,390
----------- ----------- -----------
Total assets 14,542 19,217 15,059
====== ====== ======
LIABILITIES
Non-current liabilities
Retirement benefit obligations (1,905) (402) (1,980)
Deferred tax (102) (159) (118)
----------- ----------- -----------
Total non-current liabilities (2,007) (561) (2,098)
----------- ----------- -----------
Current liabilities
Cash and cash equivalents (1,413) (2,318) (2,099)
Trade and other payables (3,339) (4,694) (3,140)
----------- ----------- -----------
Total current liabilities (4,752) (7,012) (5,239)
----------- ----------- -----------
Total liabilities (6,759) (7,573) (7,337)
====== ====== ======
NET ASSETS 7,783 11,644 7,722
====== ====== ======
Equity
Share capital 2,945 2,945 2,945
Share premium 470 470 470
Revaluation reserve 571 871 571
Retained earnings 3,797 7,358 3,736
----------- ----------- -----------
Total equity attributable to equity 7,783 11,644 7,722
shareholders
====== ====== ======
Condensed Group Cash Flow Statement
for the six months ended 30 September 2009
Unaudited Unaudited Audited
6 months 6 months 12 months
30/9/09 30/9/08 31/3/09
£'000 £'000 £'000
Cash flows from operating activities
Continuing operations 431 (281) 805
Discontinued operations 196 (232) (1,021)
----------- ----------- -----------
Net cash generated from/(absorbed by) 627 (513) (216)
operating activities
----------- ----------- -----------
Cash flows from investing activities
Proceeds from disposal of property, 30 53 43
plant & equipment
Proceeds from disposal of assets held 234 - -
for sale
Acquisition of property, plant & (130) (194) (278)
equipment
Deferred consideration on acquisition of - (100) (100)
going concern
----------- ----------- -----------
Net cash generated from/(absorbed by) 134 (241) (335)
investing activities
----------- ----------- -----------
Cash flows from financing activities
Equity dividends paid - (230) (230)
Contribution to pension scheme in excess (75) (128) (112)
of charge to income
----------- ----------- -----------
Net cash absorbed by financing (75) (358) (342)
activities
----------- ----------- -----------
Net increase/(decrease) in cash and 686 (1,112) (893)
equivalents
Cash and cash equivalents at beginning (2,099) (1,206) (1,206)
of period
----------- ----------- -----------
Cash and cash equivalents at end of (1,413) (2,318) (2,099)
period
====== ====== ======
Condensed Group Statement of Changes in Equity
for the six months ended 30 September 2009
Attributable to equity holders of the parent
Issued Share Revaluation Retained Total
Capital Premium Reserve Earnings Equity
£'000 £'000 £'000 £'000 £'000
Balance as at 1 April 2,945 470 571 3,736 7,722
2009
Total comprehensive - - - 61 61
income
_____ _____ _____ _____ _____
Balance at 30 September 2,945 470 571 3,797 7,783
2009
_____ _____ _____ _____ _____
Balance as at 1 April 2,945 470 871 7,766 12,052
2008
Total comprehensive - - - (178) (178)
income
Dividends - - (230) (230)
_____ _____ _____ _____ _____
Balance at 30 September 2,945 470 871 7,358 11,644
2008
_____ _____ _____ _____ _____
Balance as at 1 April 2,945 470 871 7,766 12,052
2008
Total comprehensive - - - (3,800) (3,800)
income
Revaluation of land & - - (300) - (300)
buildings
Dividends - - - (230) (230)
_____ _____ _____ _____ _____
Balance at 31 March 2009 2,945 470 571 3,736 7,722
_____ _____ _____ _____ _____
Notes to the Interim Report
1. Basis of preparation
The unaudited results for the six months have been prepared in accordance with
International Financial Reporting Standards ("IFRS") and do not constitute
statutory accounts within the meaning of Section 435 of the Companies Act 2006.
The interim report has not been prepared in accordance with IAS 34, "Interim
Financial Reporting" in that it does not contain full disclosure of accounting
policies and does not detail compliance with other standards. These disclosures
are dealt with in the Group's annual report. The statutory accounts for the
year ended 31 March 2009, prepared under IFRS, have been delivered to the
Registrar of Companies and received an unqualified audit report.
2. Income tax expense
The income tax expense is calculated using the estimated tax rate for the year
ended 31 March 2010.
3 Earnings/(loss )per share
The calculation of earnings/(loss) per share for the period is based on the
profit/(loss) for the period divided by the weighted average number of ordinary
shares in issue, being 29,445,659 (6 months to 30 September 2008 - 29,445,659
and year ended 31 March 2009 - 29,445,659). The fully diluted loss per share is
based upon the weighted average of 29,549,830 shares (6 months to 30 September
2008 - 29,955,405 and year ended 31 March 2009 - 29,644,111). The dilution is
due to subsisting share options.
4 Discontinued operations
Administrators were appointed to Hawkins-Salmon Limited, a wholly-owned
subsidiary of Ensor Holdings PLC, on 31 March 2009, pursuant to a resolution of
the directors. The assets have now been substantially realised.
During February and March 2009, negotiations were undertaken for the disposal
the business and assets of Powerplus (UK) Limited, also a wholly-owned
subsidiary of Ensor Holdings PLC. The sale was completed on 5 May 2009.
The Group Income Statement for the six months ended 30 September 2008 has been
restated to show the discontinued operations separately from continuing
operations.