RNS Number:2005I
Quayle Munro Holdings PLC
03 March 2003
QUAYLE MUNRO HOLDINGS PLC
Interim Report for the Six Months ended 31st December 2002
CHAIRMAN'S STATEMENT
Profits
For the six months ended 31st December 2002, Group profit before taxation was
#316,000 compared with #655,000 for the same period last year, a decrease of 52
per cent.
The fall in pre-tax profits was mainly the result of a quiet six months in terms
of project completions and receipts. Group turnover, after deducting the share
of joint venture's turnover, fell by 41% from #868,000 to #510,000. Included in
this, corporate finance fees fell from #553,000 to #360,000. However, work in
progress rose by #148,000 compared with #115,000 in the comparative period.
There was a rise in directors' and fund management fees from #114,000 to
#181,000, but sundry income dropped sharply from #204,000 to #36,000. Income
from investments and interest received also fell, from #308,000 to #246,000.
Operating charges fell from #763,000 to #729,000.
The overall result is a profit after taxation of #254,000 compared with #519,000
for the same period last year, a decrease of 51 per cent. In view of
satisfactory prospects the Directors have decided to increase the interim
dividend by 10 per cent, to 5.5p per share, which will be paid on 7th April 2003
to shareholders on the register at close of business on 14th March 2003.
Net Assets
The Group balance sheet as at 31st December 2002 shows net assets of #16.287
million, which is equivalent to 463.1p per ordinary share, a rise of 22.9p per
share (5.2 per cent) since 30th June 2002. Net assets as at 31st December 2001
were #13.908 million (395.5p per share), and there has been a rise over the
twelve-month period of 67.6p per share (17.1 per cent).
The last six months have been noteworthy for continued uncertainty in the
financial markets but in that period we have been able to reflect growth in
assets because of our continued commitment to housebuilding through Morris Group
and to our PFI portfolio. During the six month period the value of our unlisted
investments rose by #1.1 million, due mainly to Morris, whose profits in their
current financial year, which ends on 31st March 2003, will show a significant
increase from the preceding year and in excess of expectations when we last
valued this holding in September. There have been small decreases in the
valuations which we have ascribed to Submersible Television Surveys and to
Chiltern Invadex plc. We are now beginning to see the benefits of the early
move that we made into the PFI sector through good rates of return from the
companies in which we have invested underpinned by sound trading performances.
The breakdown of our assets as at 31st December 2002, together with the
equivalent figures for 30th June 2002, is as follows:
December 2002 June 2002
# million %'age # million %'age
Office building and other fixed assets 1.4 8.6 1.4 9.0
Housebuilding 8.3 50.9 7.0 45.2
PFI investments 3.2 19.6 3.1 20.0
Other unlisted investments 1.6 9.8 1.6 10.3
Cash, or cash equivalent, listed securities and 1.8 11.1 2.4 15.5
net working capital
16.3 100.0 15.5 100.0
Prospects
The continued growth of Morris, in which we now have a very substantial
investment, together with our professional experience in advising and investing
in projects under the Private Finance Initiative or Public Private Partnerships
suggest that we are well set for future growth. The second six months are at
this stage expected to show a significant increase in profitability as a result
of PFI advisory projects coming to legal completion and the possibility of
distributions being received from our early PFI investments as a result of
refinancing procedures.
I Q JONES
Chairman
3rd March 2003
GROUP PROFIT AND
LOSS ACCOUNT
For the six months ended
31 December 2002
Half Year Half Year Year
31st December 31st December 30th June
2002 2001 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
TURNOVER - group and share of
joint venture's turnover 576 872 2,100
Less: share of joint venture's
Turnover (66) (4) (35)
GROUP TURNOVER 510 868 2,065
Movements in work in progress 148 115 (37)
658 983 2,028
Gain on trading in financial
Instruments - 19 19
Other operating charges (729) (763) (1,738)
GROUP OPERATING (LOSS)/PROFIT (71) 239 309
Share of joint venture's operating profit 64 4 30
TOTAL OPERATING (LOSS)/PROFIT (7) 243 339
Profit on sales of fixed asset
Investments 91 121 191
Income from investments 230 284 623
Interest receivable 16 24 49
Loan interest payable (14) (17) (30)
TOTAL PROFIT BEFORE TAXATION 316 655 1,172
Taxation (62) (136) (228)
PROFIT ATTRIBUTABLE TO
MEMBERS OF PARENT
COMPANY 254 519 944
Dividend on equity shares (193) (1,055) (1,407)
RETAINED PROFIT/(LOSS) FOR
THE PERIOD 61 (536) (463)
GROUP STATEMENT OF
TOTAL RECOGNISED
GAINS AND LOSSES
For the six months ended
31 December 2002
Half Year Half Year Year
31st December 31st December 30th June
2002 2001 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
Profit for the year excluding
share of profit of joint venture 190 515 914
Share of joint venture's profit
for the period 64 4 30
PROFIT ATTRIBUTABLE TO
MEMBERS OF PARENT
COMPANY 254 519 944
Unrealised revaluation gains
during the period 745 574 2,075
Taxation charged directly to
Reserves - (10) (10)
TOTAL RECOGNISED GAINS
RELATING TO THE PERIOD 999 1,083 3,009
BASIC EARNINGS PER SHARE (Note 3)
7.2p 14.9p 26.9p
DILUTED EARNINGS PER SHARE (Note 3)
7.1p 14.6p 26.5p
DIVIDEND PER SHARE
(Note 2) 5.5p 5.0p 15.0p
SPECIAL DIVIDEND PER
SHARE - 25.0p 25.0p
GROUP BALANCE SHEET
As at 31 December 2002
31st December 31st December 30th June
2002 2001 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
FIXED ASSETS
Tangible assets 1,430 1,489 1,446
Investment in joint venture
- share of gross assets 1,192 109 1,024
- share of gross liabilities (6) (4) (5)
Investments - listed 1,318 3,033 1,681
- unlisted 11,922 8,943 10,735
15,856 13,570 14,881
CURRENT ASSETS
Debtors 912 776 936
Work in progress 323 327 175
Taxation recoverable 18 19 38
Short term deposits and cash at bank 159 1,135 2,285
1,412 2,257 3,434
CREDITORS:
AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loan 43 43 43
Creditors 165 142 954
Taxation payable 99 161 124
Proposed dividends 193 1,055 1,231
500 1,401 2,352
NET CURRENT ASSETS 912 856 1,082
TOTAL ASSETS LESS CURRENT
LIABILITIES 16,768 14,426 15,963
CREDITORS:
AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Bank loan (467) (510) (467)
PROVISIONS FOR LIABILITIES AND CHARGES
Deferred taxation (14) (8) (14)
TOTAL NET ASSETS 16,287 13,908 15,482
CAPITAL AND RESERVES
Called up share capital 352 352 352
Share premium account 738 738 738
Profit and loss account 7,929 7,795 7,868
Other reserves 7,268 5,023 6,524
EQUITY SHAREHOLDERS' FUNDS 16,287 13,908 15,482
NET ASSET VALUE PER SHARE (Note 4) 463.1p 395.5p 440.2p
DILUTED NET ASSET VALUE PER SHARE FRS 14 (Note 4)453.1p 389.1p 432.9p
SUMMARISED STATEMENT
OF GROUP CASH FLOWS
For the six months ended
31 December 2002
Half Year Half Year Year
31st December 31st December 30th June
2002 2001 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES (507) (266) 319
Returns on investments and
servicing of finance 283 298 548
Taxation (68) 69 (74)
Capital expenditure and financial
investment (603) (276) 401
Equity dividends paid (1,231) (349) (525)
Management of liquid resources 318 298 689
NET CASH (OUTFLOW)/INFLOW
BEFORE FINANCING (1,808) (226) 1,358
Financing - 37 (6)
(DECREASE)/INCREASE IN CASH (1,808) (189) 1,352
RECONCILIATION OF NET CASHFLOW
TO MOVEMENT IN NET FUNDS
For the six months ended
31 December 2002
Half Year Half Year Year
31st December 31st December 30th June
2002 2001 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
(DECREASE)/INCREASE IN CASH (1,808) (189) 1,352
Cash outflow from repayment of
Debt - - 43
Cash used to (increase)
liquid resources (318) (298) (689)
Movement of net funds (2,126) (487) 706
NET FUNDS AT 1 JULY/
1 JANUARY 1,775 1,069 1,069
NET FUNDS AT 31
DECEMBER/ 30 JUNE (351) 582 1,775
RECONCILIATION OF OPERATING PROFIT
TO NET CASHFLOW FROM OPERATING ACTIVITIES
For the six months ended
31 December 2002
Half Year Half Year Year
31st December 31st December 30th June
2002 2001 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
GROUP OPERATING (LOSS)/PROFIT (71) 239 309
Depreciation net of profits on
sales of tangible fixed assets 24 35 67
Changes in working capital and
other non cash items (460) (540) (57)
NET CASHFLOW FROM
OPERATING ACTIVITIES (507) (266) 319
NOTES ON THE ACCOUNTS
1 The interim financial information has been prepared on the basis of accounting policies which
are consistent with those used in the Group's statutory accounts for the year ended 30th June
2002. The interim financial information was approved by the Board of Directors on 3rd March
2003 and is unaudited.
2 The interim dividend of 5.5p per share will be paid on 7th April 2003 to members on the register
at 14th March 2003 and will absorb #193,000.
3 The calculation of basic earnings per share for the six months to 31st December 2002 is based on
earnings of #254,000 (2001 - #519,000) and 3,516,801 ordinary shares, being the weighted average
number of shares in issue during the period (2001 - 3,495,321).
The calculation of fully diluted earnings per share is based on the weighted average of
3,594,854 ordinary shares in issue throughout the period (2001 - 3,552,934) and the average
share price during the period.
4 The net assets per share as at 31st December 2002 are based on 3,516,801 Ordinary shares in
issue as at that date (30th June 2002 - 3,516,801).
The diluted net assets per share calculated in accordance with FRS14 are based on net assets and
on 3,594,854 ordinary shares (30th June 2002 - 3,576,016), being the number of ordinary shares
in issue plus 78,053 ordinary shares (30th June 2002 - 59,216), being the notional number of
shares that would have been issued for no consideration using the share price of 367.5p as at
31st December 2002 (30th June 2002 - 335.0p) to represent the fair value of an ordinary share.
5 The financial information contained in this interim statement does not constitute statutory
accounts as defined in section 240 of The Companies Act 1985. The figures for the year to 30th
June 2002 are extracted from the statutory accounts for the year to that date on which the
auditors gave an unqualified report and which have been filed with the Registrar of Companies.
6 This report will be circulated to all shareholders, and copies will be available from the
Company Secretary at 8 Charlotte Square, Edinburgh EH2 4DR.
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