Preliminary Results
20 März 2003 - 12:08PM
UK Regulatory
RNS Number:9888I
North Midland Construction PLC
20 March 2003
NORTH MIDLAND CONSTRUCTION PLC
2002 PRELIMINARY RESULTS
North Midland Construction PLC ("the Company") the UK provider of civil
engineering, building, mechanical and electrical services to public and private
organisations, announces preliminary results for the year ended 31 December
2002.
Highlights from the results and the Chairmans Statement:-
Year ended Year ended
31 December 2002 31 December 2001
#'000 #'000
Turnover 78,035 62,527
Profit before Tax 2,815 1,828
Net Profit after Tax 1,944 1,236
Earnings per Share 18.29p 11.39p
Dividends 4.5p 4.0p
* Record year in terms of Turnover and Profitability
* Excellent results from the Civil Engineering division
* Nomenca has produced record results and has opened regional offices in
Bristol and Plymouth
* Healthy workload being carried forward into the New Year
* Proposed final dividend of 3.0p (2001 : 2.5p)
For further information:-
Robert Moyle, Chairman
North Midland Construction PLC - 01623 518812
Mike Garratt, Finance Director
North Midland Construction PLC - 01623 518816
Chairman's Statement
The last year has proved to be a record for the Group, both in terms of turnover
and, more importantly, profit. A return of 3.6% on turnover was particularly
gratifying in what is traditionally such a low margin industry. All the
constituent divisions of the Group traded profitably and significant growth was
achieved in most areas of operation.
As in previous years, it is probably of assistance to highlight the main areas
of activity and comment upon them individually.
The parent company's three operating divisions, Civil Engineering, Highways and
Telecommunications, all provided admirable returns. The elimination of
loss-making contracts and significantly improved operational performance,
produced a significant return to profitability in Civil Engineering. Highways,
whilst not quite achieving budgeted turnover levels, also increased its margins
to deliver a record level of profitability. Telecommunications is currently a
difficult sector, with low volumes prevailing. However, new clients were
secured and returns were maintained.
The two subsidiary companies, North Midland Building Limited and Nomenca Limited
- the mechanical and electrical contractor, achieved growth in turnover of 100%
and 120% respectively, with Building maintaining previous profit levels and
Nomenca producing an unsurpassed result. This was achieved by increasing both
the existing client and geographical bases.
To fuel growth, two extra regional offices have recently been opened in Bristol
and Plymouth, to extend the successful template established in the North West
into the South West and Wales. Staff recruitment and retention is of paramount
importance and to assist in this area, the company is currently seeking
accreditation for Investors in People.
The Water Industry continues to be buoyant and this sector is of vital
importance to both Nomenca and Civil Engineering. Highway Infrastructure and
Repair spending is also high and we are currently partners in the AmScott
consortium, which recently secured the Area 7 contract for the Highways Agency.
Telecommunications still remains a difficult market, with heavy indebtedness,
but the company is well represented with all the major companies and is
expanding into related fields. There is a need to have a broad client base
across the full spectrum of core capability and advances have been made by both
subsidiaries. Civil engineering work on the railways is also developing into a
significant sector of business.
Sadly, I have to report that John Knight, who has demonstrated great loyalty,
integrity and guidance during his fourteen years as a Non-Executive Director,
suffered a major stroke in February 2003. We all wish him a speedy recovery.
The past year has been very difficult for equities with large falls in the
market value. Fortunately, your company has not suffered these travails, but in
spite of a 25% increase in share value over the year, it still fails to reflect
asset value. As in previous years, this still remains of great concern to your
Board and every effort is being pursued to increase potential investor awareness
of the company.
The maintenance of a good yield is a key element in the strategy and this
combined with a healthy order level for 2003, has convinced your Board to raise
the final dividend by 0.5p, making a total of 4.5p for the year.
Demanding budgets have been set for 2003, but a healthy workload has already
been secured and, in spite of a deteriorating economic climate, your Board is
optimistic that they will be achieved.
Profit and Loss Account
Year ended Year ended
31 December 2002 31 December 2001
#'000 #'000
Group Turnover 78,035 62,527
Operating Profit 2,849 1,921
Net Interest (payable) (34) (93)
Profit before Taxation 2,815 1,828
Taxation (871) (592)
Group Profit after Taxation 1,944 1,236
Minority Interest (152) (120)
Profit for the Financial Year 1,792 1,116
Dividend (441) (392)
Retained Profit for the Financial Year 1,351 724
Earnings per share 18.29p 11.39p
Amount of actual final dividend on ordinary shares
proposed to the Shareholders on the register at the
close of business on 11 April 2003, which will be
paid on 15 May 2003. 3.00p 2.50p
Total dividend per ordinary share for the year ended
31 December 2002 4.50p 4.00p
The calculation of earnings per share is based on 9,800,000 shares (2001 :
9,800,000) being the number of shares in issue throughout the period and on a
profit of #1,792,000 (2001 : #1,116,000).
Balance Sheet
Year ended Year ended
31 December 2002 31 December 2001
#'000 #'000
Fixed Assets 3,335 3,202
Current Assets
Stocks 3,236 3,650
Debtors 18,655 16,370
Cash at bank and in hand 3,473 418
25,364 20,438
Creditors - amounts falling due within one year (18,354) (14,745)
Net Current Assets 7,010 5,693
Total Assets less Current Liabilities 10,345 8,895
Creditors - amounts falling due after more than one year (352) (247)
Provision for Liabilities and Charges (356) (475)
Net Assets 9,637 8,173
Capital and Reserves
Called up Share Capital 980 980
Capital Redemption Reserve 20 20
Profit and Loss Account 8,308 6,957
Shareholders' Funds 9,308 7,957
Minority Interests 329 216
9,637 8,173
Cashflow
Year ended Year ended
31 December 2002 31 December 2001
#'000 #'000
Reconciliation of operating profit to net cash inflow
from operating activities
Operating Profit 2,849 1,921
Depreciation 867 836
(Profit) on sale of tangible fixed assets (84) (64)
(Decrease) / Increase in reinstatement reserve (116) 88
Decrease in stocks 414 552
(Increase) in debtors (2,285) (3,290)
Increase in creditors 3,525 2,104
Net cash Inflow from operating activities 5,170 2,147
Cash Flow Statement
Net cash Inflow from operating activities 5,170 2,147
Returns on investment and servicing of finance (34) (93)
Taxation (708) (830)
Capital expenditure (404) (573)
Equity dividends paid (392) (392)
Equity dividends paid to minority shareholders (39) (44)
Cash Inflow before use of liquid resources and financing 3,593 215
Financing - (decrease) in debt (538) (594)
Increase/(Decrease) in cash for the year 3,055 (379)
Reconciliation of net cash flow to movement in net funds
Increase/(Decrease) in cash for the period 3,055 (379)
Cash outflow from decrease in hire purchase 538 594
Change in funds resulting from cash flow 3,593 215
New hire purchase agreements (512) (560)
Movement in net funds in the year 3,081 (345)
Net funds at 1 January 2002 (306) 39
Net funds at 31 December 2002 2,775 (306)
The abridged financial information presented is based on the full accounts of
the Group for the year ended 31 December 2002, on which the auditors have given
an unqualified report.
The accounts have yet to be filed with the Registrar of Companies.
The Annual report and Accounts for the year ended 31 December 2002 will be
despatched to the Shareholders on 18 April 2003.
The Annual General meeting will be held on 15 May 2003 at 12 noon.
This information is provided by RNS
The company news service from the London Stock Exchange
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