RNS Number:2205L
Chemetall PLC
19 May 2003
Unaudited Interim Results for the six months ended 31 March 2003
Chairman's statement
In the 2002 financial statements we reported our expectation that trading
conditions in 2003 would slightly improve. In fact, Chemetall PLC's operating
performance continues to suffer as a consequence of the on-going weak trading
environment within the UK manufacturing sector. However, some of the fall in
demand in our Automotive and General Industry business has been offset by gains
in Aerospace and Performance Products divisions. Furthermore, the Middle East
business for which we are responsible continues to grow.
The Group has been subjected to continuing price and margin pressures in the UK
market. A shift in the product mix has also contributed to the slight reduction
in the overall gross profit margin.
Results and dividends
Despite the continuing weak trading environment turnover for the six months was
#6.9 million (March 2002: #7.0 million). The Group generated a profit on
ordinary activities before taxation of #2.9 million (March 2002: #2.3 million).
Included in this are exchange gains on loans held by Chemetall PLC with its
holding company Chemetall GmbH totalling #1.6 million (March 2002: #0.3
million). In contrast to the previous twelve-month period this favourable
exchange movement arose as a result of a much stronger Euro, partially offset by
a slightly weaker Dollar.
The Group's loan assets, including exchange movements and interest accrued
thereon, totalled #80.4 million at 31 March 2003 (September 2002: #74.7
million). The increase in these assets since September 2002 was mainly due to
the exchange gains which totalled #5.3 million, of which #3.7 million was due to
the retranslation of foreign currency denominated investments as shown in the
Statement of total group recognised gains and losses.
Preference dividends continue to be paid on the normal due dates.
Operational Review
Our Aerospace Division's sales were 20% above plan largely as a result of
significant new business gained. In contrast, our Automotive and General
Industry business was below that planned and conditions in the next six months
are not likely to improve.
Our Performance Products Division (service industries) continues to win new
business, particularly in the rail cleaning chemicals and bottled water hygiene
sectors. New initiatives are being taken in order to achieve further growth
within this market segment.
During the period, the Group has developed an e-platform business. This business
has shown promising signs for the future with strong levels of interest in this
concept as our customers seek to reduce their supplier base and make the
purchasing transaction simpler and more transparent. Several customers are
already signed up to our SAP-driven business-to-business module.
The Group continues its emphasis on keeping tight control of it's operating
overheads.
Outlook
We expect sales in the UK and Ireland to be at best static for the remainder of
2003 with continued growth in the Middle East. There are signs that the number
of key customers transferring their business to lower cost manufacturing
countries has at last slowed.
Although it is not clear when the economic situation will start to improve, or
indeed, the speed of any recovery, management is committed to winning new
business. In respect of our Aerospace and Performance Products Divisions a
number of key business opportunities are being vigorously pursued. We have
created openings and are tendering for business at a number of key "Original
Equipment Manufacturers".
The Middle East business is significantly ahead of expectation and, provided the
political situation remains stable, we expect this pattern to continue.
People
On behalf of the board, I would like to thank all our employees for their
intensive work throughout the period. They have yet again enabled us to 'hold
our own' in increasingly difficult trading conditions.
Alec Daly CBE
Chairman
Ends
For further information, please contact:
Rob Rydings (Chemetall PLC) 01908 361817
Chemetall PLC
Unaudited results for the six months ended 31 March 2003
Consolidated Profit and Loss Account
Half Year ended Half Year ended Year ended
31 March 2003 31 March 2002 30 September 2002
Notes #'000 #'000 #'000
Group turnover 1 6,906 6,985 13,794
Operating profit 40 123 317
Profit on sale of - 491 357
properties held for
resale
Profit on ordinary 40 614 674
activities before
interest
Net interest 2 2,893 1,650 1,871
receivable and
similar income
Profit on ordinary 2,933 2,264 2,545
activities before
taxation
Taxation on profit (28) (536) (1,053)
on ordinary
activities
Profit on ordinary 2,905 1,728 1,492
activities after
taxation
Dividends on equity (540) (540) (1,699)
and non equity
shares
Amount transferred 2,365 1,188 (207)
to/(from)
reserves
Chemetall PLC
Unaudited results for the six months ended 31 March 2003
Consolidated Balance Sheet
Half Year ended Half Year ended Year ended
31 March 2003 31 March 2002 30 September 2002
#'000 #'000 #'000
Fixed assets
Intangible 3,141 3,365 3,267
Tangible 1,562 1,689 1,630
4,703 5,054 4,897
Current assets
Investments 40 40 40
Stocks 1,087 1,055 1,177
Debtors 85,490 79,510 80,241
Cash at bank and in hand 3 100 3
86,620 80,705 81,461
Creditors: amounts falling (3,836) (4,135) (4,788)
due within one year
Net current assets 82,784 76,570 76,673
Total assets less current 87,487 81,624 81,570
liabilities
Provisions for liabilities (587) (433) (758)
and charges
86,900 81,191 80,812
Capital and reserves
Called-up share capital 18,889 18,889 18,889
Share premium account 29,757 29,757 29,757
Profit and loss account 38,254 32,545 32,166
Shareholders' funds 86,900 81,191 80,812
Equity interest 74,900 69,191 68,812
Non-equity interest 12,000 12,000 12,000
Shareholders' funds 86,900 81,191 80,812
Chemetall PLC
Unaudited results for the six months ended 31 March 2003
Consolidated Cash Flow Statement
Half Year ended Half Year ended Year ended
31 March 2003 31 March 2002 30 September 2002
Notes #'000 #'000 #'000
Net cash inflow/(outflow) 4 290 (618) 257
activities
Returns on investments and servicing of
finance
Interest received 70 2 -
Interest (44) (1) (28)
paid
Dividends paid on non-equity shares (540) (540) (1,080)
Net cash outflow (514) (539) (1,108)
Taxation 362 (643) (993)
Capital expenditure and investments
Purchase of tangible fixed assets (48) (26) (99)
Purchase of intangible fixed assets (6) (15) (30)
Sale of properties for resale - 1,770 1,636
Net cash (outflow)/inflow (54) 1,729 1,507
Increase/(decrease) 6 84 (71) (337)
in cash in the period
Chemetall PLC
Unaudited results for the six months ended 31 March 2003
Statement of total group recognised gains and losses
Half Year ended Half Year ended Year ended
31 March 2003 31 March 2002 30 September
#'000 #'000 2002
#'000
Profit for the period 2,905 1,728 1,492
Currency translation 3,723 (555) 461
differences on foreign
currency net investments
Total recognised gains 6,628 1,173 1,953
relating to the period
Chemetall PLC
Unaudited results for the six months ended 31 March 2003
Notes to the unaudited results
1 Segment information
The directors are of the opinion that there is only one class of business, the
supply of specialised indusrial chemicals and ancilliary equipment.
Half Year ended Half Year ended Year ended
31 March 2003 31 March 2002 30 September 2002
i) Geographical Analysis #'000 #'000 #'000
a) Turnover
UK 6,620 6,815 13,375
Middle East 286 170 419
6,906 6,985 13,794
b) Profit before
taxation
UK 40 614 674
Middle East - - -
Total continuing 40 614 674
operations
Net interest receivable 2,893 1,650 1,871
2,933 2,264 2,545
Turnover by destination is not materially different from turnover by origin
stated above.
2 Net interest receivable
Half Year ended Half Year ended Year ended
31 March 2003 31 March 2002 30 September 2002
#'000 #'000 #'000
Net interest on bank
loans, overdrafts and
other loans:
Wholly receivable within 1,243 1,361 2,739
five years - loans to
parent group
undertakings
Interest receivable on 64 2 2
cash balances
Exchange gain/(loss) on 1,623 288 (842)
loans to parent group
undertakings
Total interest 2,930 1,651 1,899
receivable
Wholly repayable within (37) (1) (28)
five years - bank
overdrafts
Net interest receivable 2,893 1,650 1,871
3 Movement in shareholders' funds
Half Year ended Half Year ended Year ended
31 March 2003 31 March 2002 30 September 2002
#'000 #'000 #'000
Profit for the period 2,905 1,728 1,492
Dividends paid and proposed (540) (540) (1,699)
Transfer to/(from) reserves 2,365 1,188 (207)
Other recognised gains and losses 3,723 (555) 461
relating to the period
Net increase in shareholders' 6,088 633 254
funds
Opening shareholders' funds 80,812 80,558 80,558
Closing shareholders' funds 86,900 81,191 80,812
4 Reconciliaton of operating profit to net cash inflow/
(outflow) from operating activities
Half Year ended Half Year ended Year ended
31 March 2003 31 March 2002 30 September 2002
#'000 #'000 #'000
Operating profit 40 123 317
Depreciation, amortisation and 249 234 479
impairment charges
Exchange gain/(loss) on loans 1,623 288 (843)
to subsidiary undertakings
Decrease/(increase) in 90 48 (74)
stocks
(Increase)/decrease in (637) (570) 773
debtors
Decrease in creditors and (1,075) (741) (395)
other provisions
Net cash inflow/(outflow) from 290 (618) 257
operating activities
5 Analysis of net funds
1 October 2002 Cashflow Exchange Other 31 March
movement 2003
Cash at bank 3 - - - 3
Bank loans and (169) 84 - - (85)
overdrafts
Loans to group 74,725 - 5,226 493 80,444
undertakings
Total 74,559 84 5,226 493 80,362
6 Reconciliation of net cash flow
to movement in net funds
31 March 2003
#'000
Increase in cash in the period 84
Change in net funds resulting from cash flows 84
Non-cash movements on loans* 493
Translation differences 5,226
Movement in net debt in the period 5,803
Net funds at 1 October 2002 74,559
Net funds at 31 March 2003 80,362
*Non-cash movements on loans consist of interest being rolled up into the
principal on existing loans to group undertakings
7. The results for the accounting period ended 30 September 2002 are an
extract from the latest published accounts which have been delivered to
the Registrar of Companies; the report of the auditors on those accounts
was unqualified.
8. The interim results were approved by the Board of Directors on 15 May 2003.
9. The results for the half year have been prepared on a basis consistent with
the previous year end in accordance with the accounting policies disclosed
in the published accounts.
10.The announcement is being posted to all Shareholders on 19 May 2003 and
copies are available at the Company's Registered Office.
11.The financial information in this statement does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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