United Carriers Grp. - Interim Results
24 September 1997 - 9:31AM
UK Regulatory
RNS No 2647x
UNITED CARRIERS GROUP PLC
24th September 1997
UNITED CARRIERS GROUP PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 1997
CHAIRMAN'S STATEMENT
HIGHLIGHTS
I am pleased to report that the Group has continued to make progress and has
increased its half year pre-tax profits by 72% to #1.29m. The financial
highlights for the six months ended 30 June 1997 were:
Six Months to Year to
30 June 1997 30 June 1996 Change 31 Dec 1996
Turnover #65.6m #67.3m -2% #136.0m
Profit before tax #1.29m #0.75m +72% #2.07m
Earnings per share 3.1p 1.9p +63% 5.3p
Dividend 1.7p 1.6p +6% 3.4p
Dividend Cover 1.8 times 1.2 times 1.5 times
Gearing 38.6% 41.8% 39.6%
- Revenue down 2% reflecting the closure of onerous contracts in 1996
- Profit before tax up by 72% as a result of higher margins combined with
tighter cost controls
- Earnings per share were ahead of forecast and rose to 3.1p from 1.9p
- Interim Dividend increased to 1.7p
- Gearing reduces to 38.6% due to lower overdraft levels
Mobile
telephones
Enquiries to: Doug Rogers, Chairman 0836 512 724
John Toyne, Group Managing Director 0410 840 660
Bill Alexander, Group Finance Director 0410 962 138
Telephone: 0171 796 4133 on Wednesday 24 September 1997
01933 440400 thereafter
CHAIRMAN'S STATEMENT
RESULTS
I am pleased to report that the Group has continued to make
satisfactory progress during the first half of the year, with
increases in both profit before tax and earnings, as the Group
continues its drive to enhance margins.
Profit before tax was #1.29m compared with #0.75m in 1996. This
72% improvement is a result of the continued push for better
margin business and our constant attention to the underlying cost
base. Earnings per share increased to 3.1p compared with 1.9p in
1996, an increase of 63%. The taxation charge of #0.26m equates
to an effective rate of 20% following the utilisation of tax
losses brought forward from 1995.
The Group's cashflow continues to benefit from strong controls
and as a result, gearing fell to 38.6% from 41.8% in the same
period last year. Interest payable has also fallen reflecting
the improvement in the Group's cash position over the last year.
DIVIDEND
The Board has increased the Interim Dividend to 1.7p per share
(1996: 1.6p) which will be paid on 31 October 1997 to
shareholders on the Register on 10 October 1997.
PARCELS AND FREIGHT
After an encouraging first quarter, the Parcels & Freight Network
experienced a slow down in the second quarter. This was in line
with the general downturn in manufacturing output over the same
period. As a result, volumes fell in the first half of the year
by 3% although better rates were achieved resulting in turnover
remaining slightly ahead. As expected, the management team were
able to react to the downturn and having created a more flexible
cost base, ensured that profits improved satisfactorily.
In a marketplace that remains extremely competitive, we continue
to be a net gainer of new business. In addition, the proportion
of Next Day business continues to grow. This strategy will allow
margins to improve further over the next 18 months.
Our International Services are progressing satisfactorily and
profits have continued to improve. Our European partner, General
Parcel, now provides its high quality service to 23 countries.
It recently celebrated its fifth anniversary with gaining ISO
9001 quality accreditation; the only organisation of its type in
Europe to do so.
MANSPED
In the first half of the year, Mansped saw volumes on its main
trailer business fall slightly although Mansped Automotives had a
satisfactory first six months, with the volume of imported cars
slightly up on the previous year.
1997 has seen Mansped successfully retain its principal contracts
in the automotive sector for a further three year period. The
tendering process has been highly competitive but with this
business now secured, Mansped is well placed for growth and
development in the future.
CARPET EXPRESS
The first half of 1997 saw Carpet Express make excellent
progress. By maintaining high service levels, Carpet Express has
been able to gain further new contracts which will commence in
the second half of the year. The contracts with Shaw Carpets and
Northern Ireland Carpets commenced in March and as predicted,
made a positive contribution from day one.
The floorcoverings market remains buoyant and volumes in the
first half were in line with expectations, whilst strong cost
controls ensured that Carpet Express achieved its targets.
PROSPECTS
The first half results are particularly pleasing as we have been
able to deliver profits in line with expectations despite an
unexpected short-term downturn in the parcels marketplace in the
second quarter. Our results for the second half so far are on
forecast and I am confident that with the strong management team
now in place and the Mansped contracts having been renewed, we
are capable of enhancing profits and dividends further as we move
forward into 1998.
Doug Rogers
Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Six months ended Year to
30 June 30 June 31 December
1997 1996 1996
#000s #000s #000s
Turnover
Continuing operations 65,553 67,264 136,003
---------- ---------- ----------
65,553 67,264 136,003
====== ====== ======
Operating profit
Continuing operations 1,758 1,301 3,139
Interest payable (464) (551) (1,069)
---------- ---------- ----------
Profit on ordinary activities
before taxation 1,294 750 2,070
Taxation (259) (112) (287)
---------- ---------- ----------
Profit for the financial
period 1,035 638 1,783
Dividends (576) (542) (1,152)
---------- ---------- ----------
Retained profit 459 96 631
====== ====== ======
Earnings per share
(p) (note 3) 3.1 1.9 5.3
====== ====== ======
Dividends per ordinary share
(p) (note 2) 1.7 1.6 3.4
====== ====== ======
CONSOLIDATED BALANCE SHEET
As at As at As at
30 June 30 June 31 December
1997 1996 1996
#000s #000s #000s
Fixed assets
Tangible 23,981 24,274 24,959
Investments 46 53 50
---------- ---------- ----------
24,027 24,327 25,009
Current assets
Properties held for resale 818 818 818
Stock 748 930 790
Debtors 26,903 27,249 27,657
---------- ---------- ----------
28,469 28,997 29,265
Creditors:
Amounts falling due within
one year (20,878) (23,029) (22,913)
---------- ---------- ----------
Net current assets 7,591 5,968 6,352
---------- ---------- ----------
Total assets less current
liabilities 31,618 30,295 31,361
Creditors:
Amounts falling due after
more than one year (5,975) (4,757) (6,034)
Provisions for liabilities
and charges (50) (841) (193)
---------- ---------- ----------
Net assets 25,593 24,697 25,134
====== ====== ======
Capital and reserves
Called up share capital 1,694 1,694 1,694
Share premium account 5,791 5,791 5,791
Revaluation reserve 428 521 428
Other reserves 10,844 11,061 10,844
Profit and loss account 6,836 5,630 6,377
---------- ---------- ----------
Shareholders' funds 25,593 24,697 25,134
====== ====== ======
CONSOLIDATED CASH FLOW STATEMENT
Six months ended Year to
30 June 1997 30 June 1996 31 Dec 1996
#000s #000s #000s
Operating activities
Operating profit on continuing
operations 1,758 1,301 3,139
Depreciation 2,267 2,399 4,809
Net payment relating to
pension schemes (143) (145) (675)
Contract losses utilised 0 (153) (270)
Loss on sale of fixed assets 27 39 3
Decrease in stock 42 155 295
(Increase)/decrease in debtors 432 (1,838) (1,949)
Increase/(decrease) in creditors (1,936) (712) 420
---------- ---------- ----------
Net cash inflow from continuing
operations 2,447 1,046 5,772
Discontinued activities 0 0 0
---------- ---------- ----------
Net cash inflow from operating
activities 2,447 1,046 5,772
---------- ---------- ----------
Returns on investment and servicing of finance
Interest paid (52) (198) (342)
Interest element of finance
lease rentals (349) (349) (723)
---------- ---------- ----------
(401) (547) (1,065)
---------- ---------- ----------
Corporation tax (60) (177) (308)
---------- ---------- ----------
Capital expenditure and financial investment
Payments to acquire tangible
fixed assets (1,267) (608) (999)
Payments to acquire investments 0 (14) (14)
Receipts from sales of fixed
assets 268 372 585
Long term loan 700 0 0
Deferred acquisition costs 0 0 (98)
---------- ---------- ----------
(299) (250) (526)
---------- ---------- ----------
Equity dividends paid (610) (542) (1,084)
---------- ---------- ----------
Management of liquid resources and financing
Capital element of finance
lease rentals (1,454) (1,128) (2,798)
---------- ---------- ----------
Decrease in cash in the period (377) (1,598) (9)
====== ====== ======
NOTES
1.Basis of Preparation
The financial information for the half year to 30 June 1997
and the comparative figures for the half year to 30 June 1996
are unaudited and have been prepared on the basis of the
accounting policies set out in the statutory accounts for the
year to 31 December 1996. This financial information does not
constitute statutory accounts as defined in Section 240 of the
Companies Act, 1985. The financial information for the year
to 31 December 1996 is extracted from the statutory accounts
for that period which, together with an unqualified audit
report have been delivered to the Registrar of Companies.
2.Dividends
The interim ordinary dividend of 1.7p (1996: 1.6p) per share
net will be paid on 31 October 1997 to shareholders on the
Register at the close of business on 10 October 1997.
3.Earnings per share
Earnings per share calculations of 3.1p (1996: 1.9p) are based
on a 1997 profit of #1,035,000 (1996: #638,000) and an average
number of shares in issue of 33,879,163.
4.Copies of the Interim Report will be sent to all
shareholders as soon as possible following the announcement.
Further copies may be obtained from the Company Secretary,
United Carriers Group PLC, PO Box 10, Turnells Mill Lane,
Wellingborough, Northants, NN8 2QQ.
END
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