RNS Number:5967J
Bristol & London PLC
28 September 2006
28 September 2006
Bristol and London PLC
("Bristol & London")
Interim Results for the Half-Year to September 2006
Bristol and London PLC is the UK's leading specialist provider of prestige motor
cars to drivers following non-fault accidents.
Half-year Summary - An Upsurge in Contract Wins and Agreements
- New agreement signed with a major UK insurer
- New contract with the The Purslow Group
- New contract with a major, national BMW motor dealer group
Bob Woods, Chairman of Bristol and London PLC:
"We have honed our strategy for recovery and growth. Costs have been cut and as
a result of new accident management programmes we have been able to build up an
excellent pipeline of future hire referrals. We are therefore justified in
looking to the future with optimism."
Enquiries:
Bob Woods, Chairman, Bristol & London PLC 01275 811111
Richard Morrison, Hanson Westhouse LLP 020 7601 6100
Peter Gaze, PGA & Co. Limited 0777 589 2544
CHAIRMAN'S STATEMENT
An Overview
The first half's trading period has been challenging. We operate in a
competitive marketplace and despite a number of successful initiatives and
contract wins in the second quarter, sales and profits are below the
expectations we had at the beginning of the year with turnover for the period of
#3.96m (2005 #4.42m) and profit before tax of #0.34m (2005 #0.76m).
We were delighted to announce on 23 August 2006 that Bristol & London had
entered into an arrangement with a major UK motor insurance company to provide
replacement top-end, 'exotic' marques to its insured drivers who are involved in
both fault and non-fault road traffic accidents. Under the terms of this new
arrangement, Bristol & London will provide replacement Aston Martin, Bentley,
Ferrari, Lamborghini, Maserati, Porsche, Rolls Royce and TVRs. I am pleased to
report that this arrangement is now operational. Whilst this notable success
confirms Bristol & London's position as a leading supplier of specialist
replacement prestige cars, it came too late for it to have any impact on the
current period being reported on.
In addition to the above arrangement, Bristol & London's strategy of agreeing
exclusive relationships with dealer networks and repair centres has seen a
number of other successes. These include the new two-year contract with Tony
Purslow Limited ("The Purslow Group"), announced on 26 September 2006, to
provide replacement vehicles and full accident management services under which
Bristol & London will provide replacement Mercedes, Chrysler Jeep, Dodge and BMW
cars to its four depots.
Bristol & London has also signed a new two-year agreement with a major national
BMW motor dealer group previously contracted to another credit hire operator.
Business Development
The significant contract wins have helped us to maintain our position as the
UK's leading specialist provider of prestige motor cars to drivers following
non-fault accidents. During the period, we have extended and developed our
range of accident management services to the customers of prestige franchised
dealerships. We have achieved this by providing a dealer branded marketing
campaign and on behalf of the dealership we enrol its customers into a programme
which provides them with a facility to contact our call centre on a 24/7 basis
should they be unfortunate enough to be involved in an accident. By doing so we
have demonstrated that we are able to increase the level of credit hire
referrals we receive from the participating dealerships whilst simultaneously
enhancing the dealerships' service to their clients.
Outlook
In acknowledging a difficult and challenging period, we look to the future with
optimism. In my year-end statement I mentioned that we had separated out the
major corporate business from core retail activities. This strategy is
producing positive results and was a major factor in securing the agreement with
a major UK motor insurer and the other significant account gains.
We have been able to build up an excellent pipeline of future hire referrals
which should generate significantly higher sales and profits in the second half
compared with the achievement for the fist six months.
Dividend
In line with our stated policy the Board is recommending the payment of an
interim dividend of 0.74p per share (2005 - 1.57p per share) to be paid on 9
October 2006 to shareholders on the register at the close of business on 6
October 2006.
Bob Woods
Chairman
28 September 2006
FINANCE DIRECTOR'S REVIEW
Turnover for the half year to 31 July 2006 was #3.96 million compared to #4.42
million for the first six months of last year.
Direct costs were accordingly lower during the period under review and after
eliminating losses incurred on vehicle disposals, were directly in line with
costs for the same period last year.
Administration costs were also well controlled in the period with expenditure
for the six months to 31 July 2006 amounting to #1.22 million compared to #1.16
million in the corresponding period last year.
Interest charges for the period were marginally lower than the previous year at
#0.33 million reflecting the reduction in bank rate in August 2005.
Profit before tax amounted to #0.34 million for the half year to 31 July 2006
compared to #0.76 million in the first half of 2005.
Earnings per share for the six months were 1.0p compared to 2.4p for the six
months to 31 July 2005.
The recommended dividend for the period is 0.74p per share amounting to
#179,060, which in accordance with FRS21 will be reflected in the accounts when
paid.
Lewis Ross
Finance Director
28 September 2006
PROFIT AND LOSS ACCOUNT
for the six months ended 31 July 2006
Notes Unaudited Unaudited Audited
six months six months year
ended ended ended
31 July 31 July 31 January
(Restated)
2006 2005 2006
#'000 #'000 #'000
Turnover 3,961 4,422 8,710
Cost of sales (2,076) (2,156) (4,211)
--------- --------- ---------
Gross profit 1,885 2,266 4,499
Administrative expenses (1,215) (1,156) (2,467)
--------- --------- ---------
Operating profit 670 1,110 2,032
Other intrest recievable and
similar income 2 - 5
Interest payable and similar
charges (333) (352) (691)
--------- --------- ---------
Profit on ordinary activities
before taxation 339 758 1,346
Tax on profit on ordinary
activities 2 (99) (186) (470)
--------- --------- ---------
Profit on ordinary activities
after taxation 240 572 876
--------- --------- ---------
Earnings per Share 4
Basic 1.0p 2.4p 3.6p
Diluted 1.0p 2.4p 3.5p
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 2006
Unaudited Unaudited Audited
31 July 31 July 31 January
2006 2005 2006
Restated Restated
#'000 #'000 #'000 #'000 #'000 #'000
Fixed assets
Tangible assets 10,101 9,645 9,669
Current assets
Debtors 4,830 4,709 4,807
Cash at bank and
in hand 8 11 14
------- ------- -------
4,838 4,720 4,821
Creditors:
amounts falling
due within one
year (4,658) (3,870) (3,821)
------- ------- -------
Net current
assets 180 850 1,000
------- ------- -------
Total assets less
current
liabilities 10,281 10,495 10,669
Creditors:
amounts falling
due after more
than one year (7,177) (7,659) (7,530)
Provisions for
liabilities
and charges
Deferred tax (483) (486) (483)
------- ------- -------
Net assets 2,621 2,350 2,656
------- ------- -------
Capital and
reserves
Called up share
capital 242 242 242
Share premium
account 726 726 726
Share-based
payment reserve 5 - 2
Profit and loss
account 1,648 1,382 1,686
------- ------- -------
Equity
shareholders'
funds 2,621 2,350 2,656
------- ------- -------
These non-statutory financial statements were approved by the board of directors
on 13 September 2006 and were signed on its behalf by:
RPM Abel
Director
CASH FLOW STATEMENT
for the six months ended 31 July 2006
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 July 31 July 31 January
2006 2005 2006
#'000 #'000 #'000
Net cash inflow from operating activities 1,669 2,586 4,499
Returns on investments and servicing
of finance (331) (352) (686)
Taxation (paid)/received (287) 88 (80)
Capital revenue 1,905 1,015 2,656
Equity dividends paid (278) (273) (653)
Financing (3,133) (1,806) (4,652)
--------- ------- --------
Decrease in cash in period (455) 1,258 1,084
--------- -------- --------
NOTES TO THE CASH FLOW STATEMENT
for the six months ended 31 July 2006
RECONCILIATION OF NET CASH FLOWS TO MOVEMENTS IN NET DEBT
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 July 31 July 31 January
2006 2005 2006
#'000 #'000 #'000
(Decrease)/increase in cash in period (455) 1,258 1,084
Cashflow from decrease in debt less finance
lease repayments 3,133 1,806 4,652
New finance leases (3,437) (2,290) (5,070)
--------- ------- --------
Movement in net debt in the period (759) 774 666
Net debt at start of period (9,490) (10,156) (10,156)
--------- ------- --------
Net debt at end of period (10,249) (9,382) (9,490)
--------- ------- --------
RECONCILIATION OF OPERATING PROFIT TO NET CASH FLOW FROM OPERATING ACTIVITIES
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 July 31 July 31 January
2006 2005 2006
#'000 #'000 #'000
Operating profit 670 1,110 2,032
Depreciation charges 922 922 1,853
Share based payment charge 3 - 2
(Increase)/Decrease in debtors (23) 112 13
(Decrease)/Increase in creditors (81) 410 382
Loss on disposal of fixed assets 178 32 217
--------- ------- --------
Net cash inflow from operating activities 1,669 2,586 4,499
--------- ------- --------
NOTES TO THE FINANCIAL INFORMATION
for the six months ended 31 July 2006
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 2006, except as detailed below under Employee Share Schemes regarding
the implementation of FRS20.
The figures for the full year ended 31 January 2006 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
2006 2005 2006
Restated
#'000 #'000 #'000
Dividend on equity shares - final paid 278 273 273
- interim paid - - 380
--------- ------- --------
278 273 653
--------- ------- --------
The comparative balance sheet at 31 July 2005 has been restated in accordance
with FRS21. The effect of this is to recognise the final dividend declared for
the year ended 31 January 2005 in the six months ended 31 July 2005 when it was
approved by the shareholders. The impact of this is to reduce the creditors due
within one year at 31 July 2005 by #379,898.
4 Employee Share Shemes
The new accounting standard, FRS20 'Share-based Payments', requires that all
equity settled share-based options awarded to employees, are recognised at fair
value in the financial statements over the vesting period of the options. This
treatment applies to all awards of options granted after 7 November 2002 and not
vested by the date of transition or 1 January 2006. The resulting charge to the
profit and loss account is based on the fair value of the share options awarded
at the date they are granted. The fair value has been calculated using the
Black Scholes model and applied only to those options granted after 7 Novembers
2002 and not yet vested. The comparative profit and loss accounts and balance
sheets covering the periods ended 31 July 2005 and 31 January 2006 have been
restated in accordance with FRS 20.
The effect of FRS20 on the profit and loss account has been to reduce the profit
before tax by #nil for the six months to 31 July 2005, by #2,437 for the year
ended 31 January 2006 and by #2,922 for the six months ended 31 July 2006. An
amount corresponding to the charge to profit and loss account has been credited
to reserves.
5 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
2006 2005 2006
#'000 #'000 #'000
Profit for the period 261 572 878
---------- ---------- ----------
Basic weighted average number of shares 24,197,352 24,197,352 24,197,352
Dilutive potential ordinary shares 910,540 809,894 895,795
Employee share options
25,107,892 25,007,246 25,093,147
---------- ---------- ----------
This information is provided by RNS
The company news service from the London Stock Exchange
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