RNS Number:3508B
Miller Fisher Group PLC
30 March 2001
FOR IMMEDIATE RELEASE 30 MARCH 2001
MILLER FISHER GROUP PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2000
Miller Fisher Group plc, the provider of support services to the insurance and
financial services industries, announces its preliminary results for the year
ended 31 December 2000.
Key points:
* Turnover #59.4 million (1999:#60.8 million)
* Operating Profit before exceptional items and interest #1.1 million
(1999:#6.3 million)
* Pre-tax pre-exceptional loss of #0.9 million (1999: #5.2 million profit)
* Restructuring of operations and cuts in cost base resulted in
exceptional charge of #2.2 million (1999: #2.6 million)
* Pre-tax loss of #3.1 million (1999: #2.6 million profit)
* Benefits of restructuring led to second half operating profit pre
exceptional items of #1.2 million (H1:#0.08 million loss)
* Strong growth from Miller Farrell in Ireland
* Homecare Insurance sold for #4.5 million subject to regulatory consent
Commenting on the outlook for the current year, Chairman Sir Timothy Kitson
said: "The difficulties we encountered in the first half of last year and the
steps we have taken to overcome them have obviously affected the results for
the year as a whole. The outcome is disappointing, especially as it has
interrupted our previous track record of strong growth. We believe that the
action we have taken to cut costs and fundamentally reorganise our operational
strategy will provide a sound base for the future. We have already seen a
marked improvement in the second half of last year and we are determined that
this improvement should follow through in the current year.
We are continuing preliminary discussions with potentially interested parties
which may or may not lead to an offer for the Group. The Board is mindful in
these discussions of the need to maximise shareholder value and shareholders
will be advised as to the outcome of these discussions in due course.
For further information contact:
Miller Fisher Group plc 020 7398 8700
Kevin Kenny - Chief Executive
Richard Horton - Finance Director
Grandfield 020 7417 4170
Clare Abbot/Kirsty Black
MILLER FISHER GROUP PLC
PRELIMINARY RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2000
The results for the year to 31 December 2000 are reported as follows:
Results
The Group reported an operating profit before exceptional items and interest
of #1.1 million compared to #6.3 million in 1999. After interest there was an
overall loss before taxation and exceptional items of #0.9 million compared to
a profit of #5.2 million for the previous year.
During the year the Group embarked upon a cost cutting and re-engineering
programme, which resulted in a charge for exceptional items amounting to #2.2
million (1999: #2.6 million). This charge relates primarily to redundancy,
reorganisation and office closure costs incurred during the year. The charge
also includes provisions for the estimated future disposal costs of surplus
property and the Group has taken the opportunity to write off certain
previously capitalised development costs. Losses before tax after exceptional
items were #3.1 million (1999: #2.6 million profit).
Earnings
Earnings per share before exceptional items showed a loss of 0.57p (1999:
2.72p profit) and after exceptional items showed a loss of 1.95p (1999: 1.51p
profit).
Turnover
Turnover for the Group was #59.4 million (1999: #60.8 million). Within this
figure, the combined turnover of our Claims Management, Administration and
Inspection services was #48.9 million (1999: #50.5 million) and the turnover
of our insurance subsidiary Homecare increased marginally to #10.5 million
from #10.3 million the previous year.
Dividend
An interim dividend of 0.10p per share was paid to shareholders on the 8
December 2000. In view of the results for the year as a whole, no further
dividend is being recommended. The total dividend for the year as a whole is
therefore 0.10p compared to 1.0p in the previous year.
OVERVIEW
As we reported in our interim results announcement, we had a particularly
difficult first half to the year during which the revenues from our UK loss
adjusting business fell materially short of the levels expected by the Board.
The difficult trading conditions continued into the start of the second half
with a continuation of the low level of claims activity in the UK household
market and a resulting reduction in the number of claims outsourced to loss
adjusters. At the back end of the year, the position was reversed with a
substantial increase in the number of claims reported as a result of the
storms and widespread flooding experienced in the UK in October and November.
The Group management put in place a firm action plan during the first half of
the year to reduce the cost base of the loss adjusting division to bring it
into line with the lower than expected level of activity. This action
continued into the second half of the year, and coincided with the start of a
pre-planned re-engineering programme to increase operational productivity by
the introduction of new technology. The re-engineering programme also
continued throughout the second half of the year and was completed in the
early part of 2001. As a result we now have a substantially reduced UK loss
adjusting cost base and a more efficient business from which to go forward.
While the implementation of this programme resulted in a high level of
exceptional costs, at an operational level the benefits are very apparent. In
the first half of 2000 the Group incurred an operating loss before exceptional
items of #80,000. In the second half of 2000 the Group recorded an operating
profit of #1.2 million before exceptional items.
OPERATIONS
During the course of the year we commenced a reorganisation of the Group
operational structure. Previously the Group had been divided into a number of
divisions and activities that broadly reflected the acquisitions that we had
made over the previous few years. We have embarked upon a process to eliminate
the separate operations and create a single operating entity to face the
market. We believe that the benefits of this strategy will include the fact
that we will have fewer trading entities, and thus reduced costs, and we will
have a common marketing and business proposition, which will improve branding
and improve tendering capability. We also believe that by bringing all our
operations into an integrated "one company" approach we will be in a position
to present a unique proposition to the market place.
This reorganisation process is now nearing completion and the various Group
operations in the UK will be relaunched on 1 May 2001 under the single trading
name of Miller Fisher.
Claims Management, Administration and Inspection Services
In the UK, this comprises loss adjusting services, third party administration
and outsourcing services, claims and risk related services as well as accident
and transit damaged motor vehicle inspection services and the investigation of
potentially fraudulent motor accident claims. All these operations will now be
branded in common as Miller Fisher.
As previously mentioned, the UK loss adjusting business had a difficult and
testing year, but now that it has completed its re-engineering process it is
in a much stronger position to benefit from any upturn in its market. The
co-ordination of call centre and third party administration activities with
other group services has resulted in a growing cross fertilisation, with new
business opportunities being introduced and with the main 24/7 call centre in
Waltham Cross developing as a hub for the distribution of a number of claims
and outsourcing opportunities. The growth of inspection services for accident
damaged motor vehicles was marred by the collapse of a major client, Motor and
Legal Group Limited, at the end of the first quarter but revenues from new
clients gained have now almost completely replaced the lost income stream.
Internationally, a separate division comprises Miller Farrell, our loss
adjusting and claims management business in Ireland, our international
adjusting and inspection operations in Dubai, Hong Kong, Singapore, Caracas
and Salzburg and an international office in London.
The business of Miller Farrell in Ireland has gone from strength to strength
and during the year it acquired the business of Brian Collins and Associates,
a specialist liability adjusting firm, which has further consolidated its
position in that market. After a strong start to the year, the rest of the
international division had a quiet second half. However, activity is now
picking up again, and with the opening of the new office in Singapore, a good
contribution is expected in the current year.
Insurance
Homecare Insurance, which specialises in the area of mobile telephone
insurance, expanded its growth in turnover, profits and policy numbers.
However, as part of our drive to focus on core activities we said in the
statement accompanying our interim figures last year that we were seeking ways
to maximise the value of our investment in Homecare. On the 19 March 2001 we
announced the sale of Homecare for #4.5 million, subject to the consent of the
Financial Services Authority to the transaction.
FINANCE
Net borrowings as at 31 December 2000 were #24.7 million, an increase of #7.5
million compared to the figure at 31 December 1999. At the year end, the
increase in borrowings was covered by short term banking facilities. The group
is currently making arrangements for the bulk of the increase to be replaced
by medium term facilities.
ANNUAL GENERAL MEETING
The Annual General Meeting of the Company will be held at Armourers' Hall, 81
Coleman Street, London EC2 on 14 June at 12.30 p.m.
OUTLOOK
The difficulties we encountered in the first half of last year and the steps
we have taken to overcome them have obviously affected the results for the
year as a whole. The outcome is disappointing, especially as it has
interrupted our previous track record of strong growth. We believe that the
action we have taken to cut costs and fundamentally reorganise our operational
strategy will provide a sound base for the future. We have already seen a
marked improvement in the second half of last year and we are determined that
this improvement should follow through in the current year.
We are continuing preliminary discussions with potentially interested parties
which may or may not lead to an offer for the Group. The Board is mindful in
these discussions of the need to maximise shareholder value and shareholders
will be advised as to the outcome of these discussions in due course.
Sir Timothy Kitson
Chairman
Unaudited Consolidated Profit and Loss Account
for the year ended 31 December 2000
Year ended 31 December 2000 Year ended 31 December 1999
Before After Before After
except- Except- except- except- Except- except-
ional ional ional ional ional ional
expenses expenses expenses expenses expenses expenses
Note #'000 #'000 #'000 #'000 #'000 #'000
Turnover 58,833 0 58,833 59,466 0 59,466
Movement in 586 0 586 1,368 0 1,368
work in
progress
Total 2 59,419 0 59,419 60,834 0 60,834
turnover
External (11,867) 0 (11,867) (12,511) 0 (12,511)
charges
Net 47,552 0 47,552 48,323 0 48,323
income
Staff (27,360) (388) (27,748) (24,152) (1,409) (25,561)
costs
Depreciation (1,198) 0 (1,198) (931) 0 (931)
of tangible
fixed assets
Other (17,916) (1,853) (19,769) (16,934) (955) (17,889)
operating
charges
Operating 2,3 1,078 (2,241) (1,163) 6,306 (2,364) 3,942
profit /
(loss)
Change of 3 0 0 0 0 (260) (260)
domicile
expenses
Net (1,942) 0 (1,942) (1,078) 0 (1,078)
interest
payable
(Loss) / (864) (2,241) (3,105) 5,228 (2,624) 2,604
profit on
ordinary
activities
before
taxation
Taxation on (59) 0 (59) (1,019) 750 (269)
(loss) /
profit on
ordinary
activities
(Loss) / (923) (2,241) (3,164) 4,209 (1,874) 2,335
profit on
ordinary
activities
after taxation
Dividends 4 (166) 0 (166) (1,611) 0 (1,611)
paid and
proposed
Retained (1,089) (2,241) (3,330) 2,598 (1,874) 724
(loss) /
profit
Basic 5 (0.57) (1.95) 2.72 1.51
(loss) /
earnings
per
ordinary
share (p)
Diluted 5 (0.57) (1.94) 2.66 1.48
(loss) /
earnings
per
ordinary
share (p)
Dividends per 0.10 0.10 1.00 1.00
ordinary share
(p)
Consolidated Balance Sheet
as at 31 December 2000
unaudited audited
year to year to
31-Dec-00 31-Dec-99
Note #'000 #'000
Fixed assets
Intangible fixed assets - goodwill 31,584 30,575
Tangible fixed assets 5,393 4,874
Total fixed assets 36,977 35,449
Current assets 6 34,310 33,077
Creditors: due within one year 7 (40,174) (27,563)
Net current (liabilities) / assets (5,864) 5,514
Total assets less current liabilities 31,113 40,963
Creditors : due after one year 8 (7,461) (14,663)
Net assets 23,652 26,300
Capital and reserves
Called up share capital 8,201 8,028
Merger and other related reserves 17,303 16,658
Profit and loss account (1,852) 1,614
Shareholders' funds - equity interest 23,652 26,300
Consolidated Cash Flow Statement
for the year ended 31 December 2000
unaudited audited
year to year to
31-Dec-00 31-Dec-99
Note #'000 #'000
Net cash (outflow)/inflow from operating 10 (9) 291
activities
Returns on investment and servicing of finance (2,097) (1,078)
Taxation (865) (874)
Capital expenditure and financial investment (1,710) (1,798)
Acquisitions and disposals (1,492) (8,262)
Equity dividends paid (1,291) (1,428)
Cash outflow before use of liquid resources
and financing (7,464) (13,149)
Financing 6,899 12,453
Decrease in cash for period (565) (696)
Reconciliation of net cash outflow to movement
in net debt:
Decrease in cash for the year (565) (696)
Cash inflow from increase in debt and
lease finance (6,898) (7,539)
Change in net debt resulting from cash flows and
movement in net debt (7,463) (8,235)
Net debt at 1 January (17,240) (9,005)
Net debt at 31 December 9 (24,703) (17,240)
Notes to the Consolidated Results
for the year ended 31 December 2000
1 Principal accounting policies
The results for 2000 have been prepared in accordance with the accounting
policies of Miller Fisher Group Plc as set out in its 1999 Annual Report and
Accounts.
2 Segmental analysis
Turnover Operating Net Turnover Operating Net
profit assets profit assets
2000 2000 2000 1999 1999 1999
#'000 #'000 #'000 #'000 #'000 #'000
Analysis by activity:
Claims management, 48,930 544 22,304 50,575 5,775 25,327
administration and
inspection
Insurance 10,489 534 1,348 10,259 531 973
59,419 1,078 23,652 60,834 6,306 26,300
Exceptional expenses (2,241) (2,624)
59,419 (1,163)23,652 60,834 3,682 26,300
The exceptional expenses incurred in 1999 and 2000 relate to the Claims
management, administration and inspection activity.
unaudited audited
as at as at
31-Dec-00 31-Dec-99
#'000 #'000
3 Exceptional expenses
Exceptional expenses
comprise:
Redundancy and 607 1,600
reorganisation
Office relocation and 827 518
temporary staff
Development costs written 274 246
off
Surplus property - estimated 292 0
future disposal costs
Other reorganisation 241 0
costs
Change of domicile 0 260
expenses
2,241 2,624
4 Dividend
The Board does not recommend the payment of a final dividend (1999: 0.70p). An
interim dividend for 2000 of 0.10p per share (1999: 0.30p per share) was paid
on 8 December 2000.
5 Earnings per ordinary share
(Loss)/earnings per ordinary share has been
calculated as follows:
(Loss)/profit attributable to
ordinary shareholders:
Before exceptional (923) 4,209
expenses
After exceptional (3,164) 2,335
expenses
Ordinary Ordinary shares
shares
Weighted average number of shares 162,040,246 155,019,026
in issue
Adjusted weighted average number 163,313,563 158,309,396
of shares in issue
Notes to the Consolidated Results
for the year ended 31 December 2000
unaudited audited
as at as at
31-Dec-00 31-Dec-99
#'000 #'000
6 Current assets
Work in progress 9,979 9,304
Debtors 19,231 18,108
Cash and liquid investments 5,100 5,665
Total current assets 34,310 33,077
7 Creditors: amounts falling due within one year
Borrowings 23,215 9,192
Trade creditors 6,370 7,032
Corporation tax 568 1,145
Other creditors and accruals 10,021 9,069
Dividends payable 0 1,125
Total creditors falling due within one year 40,174 27,563
8 Creditors: amounts falling due after one year
Borrowings 6,588 13,713
Creditors 485 804
Provisions for liabilities and charges 388 146
Total creditors falling due after one year 7,461 14,663
9 Net debt
Amounts falling due within one year:
Bank loans and overdrafts (secured) 22,637 8,739
Finance lease obligations 578 453
23,215 9,192
Amounts falling due after one year:
Bank loans and overdrafts (secured) 6,320 13,321
Finance lease obligations 268 392
6,588 13,713
Total borrowings 29,803 22,905
Cash and liquid investments (5,100) (5,665)
Net debt at 31 December 24,703 17,240
Notes to the Consolidated Results
for the year ended 31 December 2000
unaudited audited
as at as at
31-Dec-00 31-Dec-99
#'000 #'000
10 Reconciliation of operating profit to net cash
(outflow) / inflow from operating activities
Operating profit 1,078 6,306
Exceptional expenses (2,241) (2,624)
(1,163) 3,682
Depreciation of tangible fixed assets 1,198 953
Increase in work in progress (660) (1,368)
Increase in debtors (781) (3,079)
Increase in creditors and provisions 1,516 717
Decrease in insurance technical provision (119) (614)
Net cash (outflow) / inflow from operating activities (9) 291
11 Post balance sheet event
On 19 March 2001 the Group announced the disposal of Homecare Holdings Limited
(Homecare) and its subsidiary Homecare Insurance Limited (Homecare Insurance),
an authorised insurance company which specialises in providing theft and
accidental damage insurance for mobile telephones and other electrical
products. Homecare Insurance also provides extended warranty insurance.
Completion of the agreement is conditional upon the proposed change of control
of Homecare being approved by the Financial Services Authority.
The consideration comprises an initial payment to the Group of #2,200,000 in
cash. This amount will be increased or decreased by reference to the
consolidated net asset value (as adjusted) of Homecare and Homecare Insurance
at completion. In addition, the purchasers will assume responsibility from the
Group for Homecare's bank debt of #2,250,000. As part of the transaction, the
Group and the purchaser have agreed that the Group will retain the economic
benefit and costs of the insurance premium tax litigation in which Homecare
insurance is currently the claimant.
12 Abridged accounts
These accounts are abridged. The full accounts of Miller Fisher Group plc for
the year ended 31 December 2000 on which the auditors will report in due course
will be lodged at Companies House. The full accounts of Miller Fisher Group plc
for the year ended 31 December 1999 on which the auditors issued an unqualified
report were delivered to the Companies House.
Miller Fisher (LSE:MFG)
Historical Stock Chart
Von Nov 2024 bis Dez 2024
Miller Fisher (LSE:MFG)
Historical Stock Chart
Von Dez 2023 bis Dez 2024
