Interim Results
14 September 2005 - 9:00AM
UK Regulatory
RNS Number:2308R
Bristol & London PLC
14 September 2005
TO ALL CITY EDITORS
EMBARGOED FOR RELEASE 7AM
14 September 2005
BRISTOL & LONDON PLC
INTERIM RESULTS FOR THE
SIX MONTHS TO 31 JULY 2005
Bristol & London PLC ("Bristol & London" or "Company") is one of the UK's
leading specialist prestige motor credit hire companies operating in the growing
motor credit hire sector. The Company's customers include some of the largest UK
insurance companies, motor groups and accident repairers.
* Turnover for the six months to 31 July 2005 was
#4.42 million (same period 2004: #3.83 million) + 15.5%
* PBT for the half year just ended was #0.76 million
(same period 2004: #0.59 million) + 29.4%
* EPS for the period was 2.4p per share
(half year 2004: 1.7p per share) + 41.2%
* Profitability enhanced through better management of debt
and debtor days
Bob Woods, Executive Chairman, commented:
"I am pleased to report that our efforts to rebuild Bristol & London's
performance have begun to bear fruit. We are making changes to our people and
systems that should enable us to take advantage of our niche expertise."
For further information, please contact:
Peter Gaze PGA & Co 020 7808 7676
www.bristolandlondon.com
CHAIRMAN'S STATEMENT
Overview
The six months to 31 July 2005 show a considerable improvement in the Company's
performance. Increased credit hire sales, new personal injury referral
commission, enhanced financial management of key client relationships and the
growth in experience and competence of our sales team have contributed to a good
interim result.
Turnover for the half year to 31 July 2005 was #4.42 million, compared with
#3.83 million for the same period last year, an increase of 15.5%. Profit
before tax was #0.76 million, an increase of 29.4% on 2004's first half figure
of #0.59 million.
In April, we announced that we had entered into an agreement with Eastern
Western Motor Group to supply their Accident Management Programme. Established
in 1927, Eastern Western is Scotland's largest privately-owned prestige dealer
group with 25 prestige outlets. Their new purpose-built, state-of-the-art
accident repair centre at Broxburn in West Lothian won them the United Kingdom's
Bodyshop of the Year Award 2004. The new centre, that has attracted such an
accolade, represents a perfect fit with Bristol & London's premium capabilities.
The agreement is now running well and provides Bristol & London with a strategic
partner through which to expand business in Scotland further. Bristol & London
has met all the requirements for the agreement from its Scottish depot.
Credit Hire
The sector continues to grow in the UK as awareness among prestige car drivers
increases. However, competition is intense and we are addressing this by
recruiting and training the best sales people. New personnel at all levels of
the sales function are beginning to make significant progress and these results
are evidence of that.
We are the only major specialist prestige credit hire company in the UK and will
continue to maintain this focus.
Personal Injury Referral Commission
We began to benefit from this new revenue stream in the half year just ended.
The commission comes from our own client base alone. It provides Bristol &
London with a level of profit, which should grow as our business expands.
Insurance Companies
We enjoy positive relationships with a substantial majority of UK motor
insurers. The improved management of these relationships has resulted in a
reduction in debtor days, a substantial fall in outstanding debt and improved
profitability.
Staff
Our policy has been, and will continue to be, to develop our sales team. Our
national team is now split into four regions, each with its own regional
manager. One of these regions is Scotland, which has recently been successful
in gaining the account of the Eastern Western Motor Group.
In April, we announced that we were in the process of implementing software
across our business and this has begun to transform fleet utilisation and
improve Bristol & London's leading positions further in cash management and
customer service.
Fleet
Our strategy remains to achieve better utilisation of our fleet of hire
vehicles. During the first half of this year, we have identified ways in which
we can better match vehicle makes and models to our client requirements.
These changes will be undertaken during the second half and should deliver
additional profits in the longer term.
Dividend
In line with its stated dividend policy, the Board is recommending the payment
of an interim dividend of 1.57p per share (2004: 1.11p per share) to be paid on
26 September 2005 to shareholders on the register at the close of business on 23
September 2005.
Outlook
The prestige motor credit hire sector continues to grow due to the increase in
awareness among prestige car drivers who are involved in non-fault accidents.
We have every reason to believe that this trend will continue.
We believe our position within this market will be enhanced as a result of the
changes to our people and systems that should enable us to take advantage of our
niche expertise.
Bob Woods
Executive Chairman
September 2005
FINANCE DIRECTOR'S REVIEW
Overview
Turnover for the half year to 31 July 2005 was #4.42 million, a 15.5% increase
on the same period last year of #3.83 million.
Cost of sales increased 11.5% from #1.91 million for the six months to 31 July
2004 to #2.12 million for the same period in 2005. The main increase in costs
was in respect of commissions paid as a result of more competitive commission
arrangements being entered into. Costs generally were well controlled in the
period with several items showing a decrease in real terms.
Profit before tax increased 29.4% to #0.76 million for the half year to 31 July
2005 from #0.59 million in the first half of 2004.
The recommended dividend for the period is 1.57p per share and incorporates the
benefit of a refund of corporation tax relating to prior years amounting to
#50,000.
Earnings per share rose 41.2% to 2.4p per share from 1.7p per share for the six
months to 31 July 2004.
Debtor days have been reduced to 171 at the 2005 half year end from 191 days at
31 July 2004. Trade debtors overall have been reduced by 15.9% from #5.1
million at 31 July 2004 to #4.3m million at 31 July 2005. These reductions have
resulted from the improvements made throughout our cash collection processes.
Cash inflow stood at #2.59 million for the six months to 31 July 2005, up 8.8%
from #2.38 million in the same period of 2004.
Efficiency
Better management of our debtors has produced considerable benefits. Cash flows
have improved and profitability increased. Interest on working capital finance
reduced by 46% from #0.16million for the half year to 31 July 204 to
#0.09million for the same period just ended.
Improved recoveries have also resulted in a reduction in additional debt
provisioning requiring to be made, which has reduced considerably by 87% from
#0.27 million for the six months to 31 July 204 to #0.03 million for the same
period in 2005.
Lewis Ross
Finance Director
September 2005
PROFIT AND LOSS ACCOUNT
for the six months ended 31 July 2005
Notes Unaudited Unaudited Audited
six months six months year
ended ended ended
31 July 31 July 31 January
2005 2004 2005
#'000 #'000 #'000
Turnover 4,422 3,830 7,739
Cost of sales (2,124) (1,905) (3,931)
--------- --------- ---------
Gross profit 2,298 1,925 3,808
Administrative expenses (1,188) (1,011) (2,016)
--------- --------- ---------
Operating profit 1,110 914 1,792
Interest payable and similar charges (352) (328) (621)
--------- --------- ---------
Profit on ordinary activities before taxation 758 586 1,171
Tax on profit on ordinary activities 2 (186) (182) (357)
--------- --------- ---------
Profit on ordinary activities after taxation 572 404 814
Dividends 3 (380) (269) (542)
--------- --------- ---------
Retained profit for the period 192 135 272
========= ========= =========
Earnings per Share 4
Basic 2.4p 1.7p 3.4p
Diluted 2.4p 1.6p 3.3p
The turnover and operating profit for each period arose from continuing
operations.
There were no recognised gains or losses other than included above.
BALANCE SHEET
at 31 July 2005
Unaudited Unaudited Audited
31 July 31 July 31 January
2005 2004 2005
#'000 #'000 #'000 #'000 #'000 #'000
Fixed assets
Tangible assets 9,645 7,303 9,324
Current assets
Debtors 4,709 5,347 4,919
Cash at bank and in hand 11 14 12
------- ------- -------
4,720 5,361 6,931
Creditors: amounts falling
due within one year (3,870) (4,939) (4,306)
------- ------- -------
Net current assets 850 422 625
------- ------- -------
Total assets less
current liabilities 10,495 7,725 9,949
Creditors: amounts falling
due after more
than one year (7,659) (5,367) (7,305)
Provisions for liabilities
and charges
Deferred tax (486) (337) (486)
------- ------- -------
Net assets 2,350 2,021 2,158
======= ======= =======
Capital and reserves
Called up share capital 242 242 242
Share premium account 726 726 726
Profit and loss account 1,382 1,053 1,190
------- ------- -------
Equity shareholders' funds 2,350 2,021 2,158
======= ======= =======
CASH FLOW STATEMENT
for the six months ended 31 July 2005
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 July 31 July 31 January
2005 2004 2005
#'000 #'000 #'000
Net cash inflow from operating activities 2,586 2,377 4,186
Returns on investments and servicing of finance (352) (328) (620)
Taxation received/(paid) 88 (601) (1,227)
Capital revenue 1,015 1,055 1,043
Equity dividends paid (273) (525) (794)
Financing (3,065) (2,422) (4,438)
--------- --------- ---------
Decrease in cash in period (1) (444) (1,850)
========= ========= =========
NOTES TO THE CASH FLOW STATEMENT
RECONCILIATION OF NET CASH FLOWS TO MOVEMENTS IN NET DEBT
for the six months ended 31 July 2005
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 July 31 July 31 January
2005 2004 2005
#'000 #'000 #'000
Decrease in cash in period (1) (444) (1,850)
Cashflow from decrease in debt
less finance lease repayments 3,065 2,422 4,438
New finance leases (2,290) (1,666) (4,419)
--------- --------- ---------
Movement in net debt in year 774 312 (1,831)
Net debt at start of period (10,156) (8,325) (8,325)
--------- --------- ---------
Net debt at end of period (9,382) (8,013) (10,156)
========= ========= =========
RECONCILIATION OF OPERATING PROFIT TO NET CASH FLOW FROM OPERATING ACTIVITIES
for the six months ended 31 July 2005
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 July 31 July 31 January
2005 2004 2005
#'000 #'000 #'000
Operating profit 1,110 914 1,792
Depreciation charges 922 619 1,372
Decrease in debtors 112 641 1,167
Increase/(Decrease) in creditors 410 237 (102)
Loss/(Profit) on disposal of fixed assets 32 (34) (43)
--------- --------- ---------
Net cash inflow from operating activities 2,586 2,377 4,186
========= ========= =========
NOTES TO THE FINANCIAL INFORMATION
1 Basis of Preparation
The unaudited profit and loss account, balance sheet and cashflow statement have
been prepared on a basis consistent with the accounts for the year ended 31
January 2005.
The figures for the full year ended 31 January 2005 have been extracted from the
audited accounts approved at the Annual General Meeting. These accounts included
an unqualified audit report which did not contain a statement under section 237
(2) or section 237(3) of the Companies Act 1985 and have been delivered to the
Registrar of Companies.
This interim report does not constitute statutory accounts within the meaning of
section 240 of the Companies Act 1985.
2 Taxation
The tax charge provided for the period is based on the estimated effective tax
rate applied to the taxable profits for the period.
3 Dividends
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 July 31 July 31 January
2005 2004 2005
#'000 #'000 #'000
Dividend on equity shares - paid - - 269
- proposed 380 269 273
--------- --------- ---------
380 269 542
========= ========= =========
4 Earnings Per Share
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares in issue
during the period. For diluted earnings per share, the weighted average number
of ordinary shares in issue is adjusted to assume conversion of all dilutive
potential ordinary shares.
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 July 31 July 31 January
2005 2004 2005
#'000 #'000 #'000
Profit for the period 572 404 814
Basic weighted average number of shares 24,197,352 24,197,352 24,197,352
Dilutive potential ordinary shares
Employee share options 809,894 688,462 707,162
--------- --------- ---------
25,007,246 24,885,814 24,904,514
========= ========= =========
This information is provided by RNS
The company news service from the London Stock Exchange
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