Final Results

RNS Number:0562E
Brockhampton Holdings PLC
23 May 2001





                         Brockhampton Holdings plc

             Preliminary results for the year ended 31 March 2001

                     "Another year of sound progress"



Brockhampton Holdings plc, a supplier of water to Hampshire and West Sussex,
announced its preliminary results for the year ended 31 March 2001.



Highlights:



*        Pre-tax profits of #8.1m (2000: #9.0m) reflect the Regulator's
imposed price reduction on core water business

*        Adjusted earnings per share 12.3p (2000: 14.4p), excluding one off
tax repayment

*        Total dividend up 5.3% to 6.0p (2000: 5.7p)

*        Progress in non-regulated businesses including Seven Springs water
coolers

*        A number of land development opportunities being evaluated

*        Continued investment in the highly efficient core water supply
business

*        Agreement to supply bulk water to Southern Water



John Batty, Chairman, commenting on the preliminary results, said:



"The water supply business has responded strongly to the challenges set by the
Regulator in the 1999 Periodic Review, while revenue from non-regulated
activity has risen significantly.



"The Directors will continue to pursue their strategy of increasing overall
value to the benefit of all shareholders by achieving continued efficiencies
in the water business, whilst generating increased non-regulated income.



"I believe that the Group is well positioned to meet the dual challenges of
tighter regulation and diversification that lie ahead and am confident that
the current financial year will result in another satisfactory performance."



For further information, please contact:



Brockhampton Holdings plc                                     023 9249 9888

Nick Roadnight, Managing Director
Neville Smith, Finance Director


Golin/Harris Ludgate                                          020 7324 8888

Peter Gaze/Clare Stephens





                            Chairman's Statement



Introduction



It is pleasing to report on another successful year, during which the Group
has continued to build upon its achievements.  The water supply business has
responded strongly to the challenges set by the Regulator in the 1999 Periodic
Review, while revenue from non-regulated activity has risen significantly.



Following the launch of our water cooler company, Seven Springs, the
acquisition of a new plumbing and heating services business, R. H. Lillywhite,
and the sharper focus on the management of the Group's land resources, it is
pleasing to note that the policy of diversification into areas which have a
logical fit with the core water business or which can be linked to and develop
core skills, is beginning to produce rewards.  The Board believes that this
strategy to generate non-regulated income will provide growth in earnings to
deliver future shareholder value for the benefit of all our shareholders.



Results



The Group's financial results for the year ended 31 March 2001 reflect another
solid performance.  Increased revenue from non-regulated activity was largely
responsible for turnover being marginally higher than the previous year.
However, principally as a result of the impact of the Regulator's imposed
reduction in water prices and also the increased cost of continuing
development of non- regulated business, profit before taxation fell as we had
expected.  Through efficiency savings, Portsmouth Water was successful in
restraining operating costs, other than depreciation, to a level only slightly
above the previous year, thus offsetting the cost of additional quality
obligations not allowed for in the price determination. By continually
challenging its cost base and operating processes, the Company is confident of
securing future savings, which will ensure its position in the highest rank of
Ofwat efficiency measures.



A reduction in the taxation charge, resulting from a repayment in respect of
prior years, allowed earnings per share to rise to 14.7p, although the
underlying level, adjusted for this repayment, is 12.3p.  In the light of
these results, the Directors are recommending a final dividend of 4.1p per
Ordinary and 'A' Ordinary Share, which together with the interim dividend paid
in January 2001, makes a total for the year of 6.0p, an increase of 5.3% on
last year's figure of 5.7p.  Subject to approval at the Annual General
Meeting, the final dividend will be paid on 16 August 2001 to shareholders on
the register at the close of business on 29 June 2001.  The rate of future
dividend growth will continue to be dependent upon both the level of future
efficiencies secured in the core water business and the growth in
non-regulated earnings.



Operational review



Seven Springs, the water cooler company launched last year, enjoyed a
satisfactory first full year of trading and now services approximately 1,200
cooler units.  The overall market for water coolers continues to exhibit rapid
growth and I have confidence that Seven Springs can build on an encouraging
start.  In addition, the Group acquired a local plumbing and heating services
business, which it intends to grow quickly by expanding its customer base
within the water supply area.



During the year, the Group has continued its efforts to identify land
resources possessing potential for future income generation.  Currently, the
Group is reviewing a number of such opportunities, where there is a reasonable
expectation of attractive returns.  In addition, the draft local development
plan published in January this year identified some eight acres of Group owned
land for industrial or residential use.  Plans for development will be
submitted in accordance with the local authority's planning timetable.



The Group has continued to invest heavily in improving and renewing its asset
base.  As in previous years, the capital investment programme has been
delivered effectively and underlines the Group's commitment to providing its
customers with service standards comparable with the best.  It is most
pleasing to be able to report that customers of the regulated water business
continue to enjoy water not only at the lowest cost, but also of  extremely
high quality.  Supplies have once again been maintained throughout the year
without restrictions, emphasising Portsmouth Water's admirable record in an
area of England where supplies are traditionally stretched.  The exceptionally
wet spring and autumn weather last year resulted in record groundwater levels. 
A continuation of wet weather early in the current year should ensure that
resources are plentiful throughout 2001 and that restrictions will, again, not
be necessary.



In my statement last year, I reported that Portsmouth Water was in discussions
with a neighbouring company to provide a bulk supply.  Heads of terms have now
been agreed with Southern Water Services and the bulk supply contract should
be finalised shortly.  The supply will be available from 2003/04.



In December 2000, Brockhampton Holdings plc convened an Extraordinary General
Meeting following the receipt of a requisition from two shareholders,
requesting the Board to take steps to formulate proposals for the
enfranchisement of the non-voting 'A' Ordinary Shares.  The resolution
proposed at the Extraordinary General Meeting was rejected.  Prior to the
receipt of the requisition, the Board, together with its advisers, had already
spent a considerable amount of time and resources to find a proposal that
would be satisfactory to both classes of shareholders, but had not identified
such a basis for enfranchisement.  The Directors remain of the opinion that
the current share capital structure has not in any way been a hindrance to the
development of the Group and believe that it will continue to perform
successfully in the interests of all shareholders.



Outlook



The performance of the Group is a testament to the hard work and dedication of
staff at all levels.  It is a pleasure to acknowledge their contribution over
the past year.



The Directors will continue to pursue their strategy of increasing overall
value to the benefit of all shareholders by achieving continued efficiencies
in the water business, whilst generating increased non-regulated income.  The
Group has been successful in securing such efficiencies over a long period and
this will continue to be a key objective.  The Board is also considering ways
of ensuring that the balance sheet is efficient as regards the balance between
debt and equity.  A number of other water companies have considered various
methods of restructuring and these are being monitored closely.



I believe that the Group is well positioned to meet the dual challenges of
tighter regulation and diversification that lie ahead and am confident that
the current financial year will result in another satisfactory performance.



John Batty

Chairman

23 May 2001







CONSOLIDATED PROFIT & LOSS ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2001




                                                                2001       2000
                                                                #000       #000

Turnover                                                      29,038     28,823



Cost Of Sales                                                 13,111     12,511



Gross Profit                                                  15,927     16,312



Net operating expenses                                         6,906      6,453

Operating Profit                                               9,021      9,859



(Loss)/profit on sale of fixed assets                           (62)        215

Profit on ordinary activities before interest                  8,959     10,074

Interest receivable                                              388        233
                                                               9,347     10,307

Interest payable                                               1,242      1,290

Profit on ordinary activities before taxation                  8,105      9,017

Taxation on profit on ordinary activities                      1,002      2,058

Profit on ordinary activities after taxation                   7,103      6,959

Dividends paid and proposed                                    2,891      2,746

Retained Profit For The Financial Year                         4,212      4,213

Earnings per share

Basic                                                          14.7p      14.4p

Adjusted                                                       12.3p          -

Diluted                                                        14.6p      14.4p







There are no recognised gains or losses other than the profit for the year.











CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2001




                                                          2001             2000
                                                  #000    #000    #000     #000
Fixed Assets


Tangible assets                                 65,719          63,642

Investments                                      1,522  67,241   1,544   65,186

Current Assets


Stores                                             823             863

Debtors                                          1,160           1,177

Investments                                          4               4

Cash and short-term deposits                     9,204           6,939
                                                11,191           8,983

Creditors: Amounts falling due within one year  11,796          11,748

Net current liabilities                                  (605)          (2,765)



Total assets less current liabilities                   66,636           62,421

Creditors: Amounts falling due after one year           15,000           15,000


                                                        51,636           47,421

Capital And Reserves


Called up share capital                                  4,895            4,895

Share premium account                                      584              581

Capital redemption reserve                               4,059            4,059

Revaluation reserve                                        504              504

Profit and loss account                                 41,594           37,382

Equity Shareholders' Funds                              51,636           47,421






CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2001




                                                            2001          2000
                                                     #000   #000   #000   #000
Net Cash Inflow From Operating Activities                 13,834        14,244

Returns On Investments And Servicing Of Finance

Interest received                                     361           245

Interest paid                                     (1,228)  (867) (1,291)(1,046)

Taxation

UK corporation tax paid                                    (815)        (2,293)

Capital Expenditure and Financial Investment

Purchase of tangible fixed assets                  (8,062)       (8,273)

Sale of tangible fixed assets                          53           272

Capital contributions received                        907         1,044

Sale of fixed asset investments                         6 (7,096)     5 (6,952)

Equity Dividends Paid                                     (2,794)       (2,553)


Cash Inflow before Management of Liquid Resources
and Financing                                              2,262         1,400
                                                           

Management Of Liquid Resources

Purchase of short term deposits                           (2,700)         (450)

Financing



Issue of ordinary share capital                         3             9



New loan                                                -         6,000



Repayment of loan                                       -      3 (6,000)     9



(Decrease)/Increase In Cash In The Year                    (435)           959




Notes:



 1. The calculation of basic earnings per share is based on the profits
    attributable to Ordinary/'A' Ordinary Shares of #7.103 million and on
    48.190 million shares (2000: #6.959 million and 48.179 million shares),
    being the weighted average number of Ordinary and 'A' Ordinary Shares in
    issue during the year.  The adjusted earnings per share is based on the
    same weighted average number of shares and on profits attributable to
    those shares of #5.929 million, which exclude a #1.174 million credit
    adjustment in respect of prior years to the taxation charge.  An adjusted
    earnings per share is presented to provide a consistent view of underlying
    earnings trends.



 2. Dividends include a proposed final net dividend per Ordinary and 'A'
    Ordinary Share of 4.1p (2000:3.9p) in addition to the interim dividend of
    1.9p (2000:1.8p) already paid.  Subject to approval at the Annual General
    Meeting, the final dividend will be paid on 16 August 2001 to holders of
    Ordinary and 'A' Ordinary Shares on the register at the close of business
    on 29 June 2001.



 3. The financial information included in this announcement as regards the
    Group has been prepared in accordance with United Kingdom accounting
    standards, using the same accounting policies adopted in the accounts for
    the year ended 31 March 2000, and does not constitute statutory accounts
    for the relevant periods within the meaning of Section 240 of the Act.
    Statutory accounts for the Group for the financial year ended 31 March
    2000, upon which the auditors of the Group have given an unqualified
    report, have been delivered to the Registrar of Companies.  Statutory
    accounts for the Group for the financial year ended 31 March 2001 will be
    delivered to the Registrar of Companies as soon as practicable after
    approval at the next Annual General Meeting.



 4. The report and accounts will be posted to shareholders shortly and the
    Annual General Meeting will be held on 26 July 2001.  The provisional
    ex-dividend date for the Ordinary and 'A' Ordinary Shares is 27 June 2001.



For further information, please contact:



N. J. Roadnight - Managing Director
N. Smith - Finance Director

Tel:  [phone]