SID Silverdell

RNS Number:2965O
Silverdell PLC
20 December 2006



        Silverdell Plc   ("Silverdell" or the "Company" or the "Group")
  Unaudited Preliminary results for the 27 week period ended 30 September 2006



Silverdell, the asbestos removal group is pleased to announce its Preliminary
results for the 27 week period ended 30th September 2006.


Financial Highlights


For the 27 week period ended 30th September 2006

This includes the trading results of Silverdell (UK) Ltd for 10 weeks from its
acquisition on 19th July 2006.


Turnover:                                                 #6.05million
Operating profit before Goodwill amortisation:            #366,000
                         See note 1

Profit on ordinary activities after interest
and  before taxation :                                    #93,000


Basic and Diluted loss per share                         (0.27p) per share

Adjusted basic and diluted earnings per share:
                          See note 2                      0.81p per share



Note 1

Operating profit before goodwill amortisation reflects operating profit of
#175,000 adjusted for the add back of goodwill amortisation of #191,000.

Note 2

Adjusted basic and diluted e.p.s. is based on earnings of #143,000 derived from
the loss after tax of #48,000 adjusted for the add back of goodwill amortization
of #191,000.







Chairman's Statement



                              CHAIRMANS STATEMENT



The results being reported are our first as a publicly listed company and cover
the period from the date of incorporation, 24th March 2006, to 30th September
2006, being our financial year end. As such these results do not reflect a full
years trading and should be viewed in this context.



For the period under review, turnover was #6.05 million, operating profit before
goodwill amortisation amounted to #366,000 and diluted loss per share was 0.27
pence.



We listed on AIM on 21st April 2006 as Bow Lane Capital Plc. The object of the
listing was to identify and acquire a business in the environmental services
sector where consolidation opportunities existed. We were pleased to secure the
purchase of Silverdell (UK) Limited ("Silverdell UK") and following the
successful completion of this deal, your company was renamed Silverdell Plc. To
fund the deal 16 million shares were issued on 19th July 2006 at a price of 75
pence per share and warrants over 3.2 million shares to the Marwyn Neptune fund.



Silverdell UK is one of the country's leading asbestos remediation businesses
which was started in 1979. It has a reputation in its sector for innovation and
professionalism and works for some of the FTSE 100 companies as well as central
and local government. Silverdell UK has been involved with a number of
prestigious projects, such as the refurbishment of the Old Admiralty Building
and the restoration of the Royal Festival Hall.



Over one third of Silverdell UK's revenue is underpinned by framework contracts
and growth in the Silverdell UK business has been entirely organically driven.
In recent years legislative changes have created significant opportunities in
the sector, resulting in strong growth in revenues.



The management team and key staff have all remained with the business and as a
listed company we have been able to provide them with some meaningful ownership
of the business through the issue of share options. The management also took a
significant portion of their consideration for the sale of the Silverdell UK
business in ordinary shares in the company and further demonstrated their
commitment to the business through signing a two year lock-in over this equity
stake.



Your company is now beginning to enjoy the benefits of its public company status
as not only is it now able to use its tradable equity as currency to acquire
businesses but the reporting transparency will allow potential clients to easily
gauge the financial strength of the business. This is increasingly important now
that stringent legislation and detailed tendering processes require the highest
standards from contractors. Only a few companies of Silverdell UK's size exist
within the asbestos contracting market and are able to meet all of the
regulatory requirements necessary to tackle the larger and more complex
projects. Silverdell UK has held a full HSE Asbestos Licence continuously since
its initial grant in 1984 and in March 2006 this licence was renewed until 2009.



The performance to date and prospects for the current year are very positive.
Not only are customer renewal rates at a highly satisfactory level but many new
customers are looking to work with Silverdell. Our order book for the normally
quiet winter months is at a level above that expected. While it is too early to
take this as a firm indicator for the rest of the year, nevertheless it is very
encouraging.



Part of the strategy when seeking a listing for Silverdell Plc was to acquire
complementary businesses. I am delighted to report that we have secured just
such a deal for Silverdell Plc, with the acquisition of Redhill Analysts Limited
for up to #10 million which we hope to complete on 31 December 2006 and details
of which are contained in a separate announcement released today.



With a busy start to the year, a hard working and properly incentivised team and
another well run business about to join the Group, your directors have every
reason to look forward to the future with confidence.





Financial Review



The Preliminary Results are for the 27 week period from incorporation in March
2006 to 30th September 2006.  Prior to the acquisition of Silverdell UK on 19th
July 2006, Silverdell Plc's only activity was the identification of potential
acquisitions. Therefore, in the initial 27 week period ended 30th September
2006, a ten week contribution from Silverdell UK resulted in turnover of #6.05
million and operating profit before goodwill amortisation of #366,000. Net
Interest payable and similar charges in the 27 week period ended 30th September
2006 amounted to #82,000.



Earnings per share

The Basic loss per share and the diluted equivalent for the 27 week period ended
30th September 2006 were both 0.27 pence.

Adjusted basic and diluted earnings per share (before amortisation of goodwill)
for the 27 week period ended 30th September 2006 were both 0.81 pence per share.



Taxation

The effective rate of taxation for the 27 weeks ended 30th September 2006 on
profit before goodwill and taxation was 49.3%.  The effective rate is above the
standard rate of Corporation tax arising from disallowable expenditure related
to the acquisition of Silverdell UK.



Equity Funding

Since incorporation and subsequent admission to AIM in April 2006, at which time
the Group had issued an initial 11,400,000 shares, the Group has issued a
further 16,000,000 ordinary shares to help fund  the acquisition of Silverdell
UK.  The costs in relation to these share issues amounted to #0.72 million.  In
addition, the vendors of Silverdell UK were issued with 4,801,055 ordinary
shares as part payment of their consideration.

At 30th September 2006, Silverdell had 32,201,055 ordinary shares in issue. A
total of 5,982,706 share options or warrants over ordinary shares have been
granted to date.





David Williams

Chairman




Silverdell Plc

Consolidated Profit and Loss Account for the period from 24th March 2006 to 30th
September 2006






                                                                       27 week period

                                                              ended 30 September 2006
                                                                                 #000
Turnover                                                                        6,046
Cost of Sales                                                                 (4,318)
Gross Profit                                                                    1,728
Administration Expenses excluding goodwill amortisation                       (1,362)
Operating profit before goodwill amortisation                                     366
Goodwill amortisation                                                           (191)
Operating profit                                                                  175
Net interest charge                                                              (82)
Profit before taxation                                                             93
Taxation                                                                        (141)
Loss after tax and retained                                                      (48)


Basic and diluted loss per share                                    0.27)p per share





There are no other recognised gains and losses other than those in the profit
and loss account above.


Consolidated Balance Sheet as at 30th September 2006                   30th Sept 2006

                                                                                 #000
Goodwill                                                                       19,539
Tangible fixed assets                                                           1,014

Debtors, Stocks and Work in progress                                            8,781
Cash at Bank and in hand                                                        3,300
Creditors, Amounts falling due within one year                                (5,092)
Net Current Assets                                                              6,989
Creditors after one year                                                        (336)
Provisions for liabilities and Charges                                        (6,304)
Net Assets                                                                     20,902
Capital and reserves
Share Capital                                                                   3,220
Other Reserves                                                                  17,682
Total equity shareholders funds                                                 20,902



The financial information set out in the announcement does not constitute the
Company's statutory financial statements for the period ended 30 September 2006.
The statutory accounts  for the period ended 30 September 2006 will be finalised
on the basis of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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