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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Chloride Grp. | LSE:CHLD | London | Ordinary Share | GB0001952075 | ORD 25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 374.60 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:8784C
Chloride Group PLC
24 October 2002
CHLORIDE GROUP PLC
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2002
Through rigorous focus on innovation, flexibility and reliability, Chloride is
the supplier of choice for power protection solutions. Its strengths derive
from applying innovative technologies and industry-leading customer service to
the protection of critical applications worldwide.
HIGHLIGHTS
Interim results for the six months ended 30 September 2002
* Targeted improvements have been made in four key business areas:
- improvement in operational gearing through cost reduction and
increase in product margins
- growth in our higher-margin service business
- increased investment in product and solutions innovation
- generation of increased cashflow from operating activities
As a result profitability rose despite continued difficult trading
conditions
* Operating profit before goodwill amortisation and exceptional items
increased by 36% to #3.0 million (2001: #2.2 million), on sales down 8%
at #67.6 million (2001: #73.6 million)
* Adjusted EPS up 29% at 0.81p (2001: 0.63p)
* Cash flow from operating activities (after restructuring costs) was a
healthy #4.0 million inflow against an outflow of #3.9 million in the same
period last year
* Strong balance sheet at the period end with shareholders' funds of
#64.6 million and net debt of #9.2 million
* Interim dividend maintained at 0.80p per share, demonstrating the
Board's confidence in future performance
* Power protection remains a long-term growth market driven by the demand
for business continuity
Commenting on the interim results, Chairman Norman Broadhurst said: "We have
delivered, as planned, reduced costs, improved margins and strong cash
generation, whilst developing our service business and continuing product
development against a background of difficult trading conditions. We are well
placed to pursue the available opportunities and we remain confident in the
longer-term growth prospects for the power protection market."
Enquiries:
Chloride Group PLC All day on 24 October 2002
Keith Hodgkinson (Chief Executive) Tel: 020 7796 4133 (Hudson Sandler)
Neil Warner (Finance Director) Thereafter, tel: 020 7834 5500
Hudson Sandler Tel: 020 7796 4133
Andrew Hayes/Noemie de Andia
Further information on Chloride Group can be found on www.chloridegroup.com.
Chairman's Statement
Introduction
Over the first half year we achieved our objectives in four key aspects of the
business:
- improvement in operational gearing through cost reduction and increase in
product margins;
- growth in our higher-margin service business;
- increased investment in product and solutions innovation; and
- generation of increased cashflow from operating activities.
As a result first half profitability rose despite difficult trading conditions.
These had an adverse impact on sales, with an absence of major projects and no
signs of sustained recovery in many of our key markets.
Results
Operating profit before goodwill amortisation and exceptional items increased by
36% to #3.0 million (2001: #2.2 million) on sales in the first half of the year
of #67.6 million (2001: #73.6 million), 8% down on the prior year. This
improved operating profit was achieved through vigorous focus on costs and
product margins combined with continued growth in higher margin service
revenues.
Profit before tax and goodwill amortisation and exceptional items was 31% up at
#2.6 million (2001: #2.0 million). Adjusted EPS was also up by 29% to 0.81p
(2001: 0.63p).
Cash flow from operating activities was a healthy #4.0 million inflow against a
cash outflow of #3.9 million in the same period last year. The balance sheet
remained strong with shareholders' funds of #64.6 million and net debt of #9.2
million.
Dividend
The Board is confident that the Company has good prospects in its global markets
for power protection solutions, which are forecast to return to sustained
growth over the longer term. The Board is therefore pleased to announce payment
of an unchanged interim dividend of 0.80p (2001: 0.80p).
Payment will be made on 3 December 2002 to shareholders on the register at the
close of business on 1 November 2002.
Trading Environment
We experienced difficult trading conditions in all of our geographic and product
markets, which adversely affected sales particularly in the telecommunications,
technology, petrochemicals and manufacturing sectors. However, there were some
positive developments, with sales growth in the more robust transportation,
construction and retail sectors where we secured a number of important
contracts.
The strategic development of service as a key part of our solutions offering
produced encouraging results with an increase of 15% in this higher-margin
business.
Restructuring
In the first half of the year we completed on schedule and on budget the
restructuring actions begun in the previous year. The manufacturing facility in
Thailand was closed in August 2002, following which we completed the outsourcing
of production of small UPS products to a high-quality third party manufacturer
in the Far East.
The transfer of production from Germany to Italy is well advanced and we expect
the restructuring of the UPS Systems business to be complete by March 2003,
bringing further margin and operational benefits.
Innovation
We continue to give priority to investment in technology to maintain the
competitive advantage of our high-quality, innovative products and solutions.
Our European technology centres are focused on extending a common technology
platform across a new range of UPS and Industrial products including enhanced
remote monitoring and diagnostic capability. The resulting improvements in
operating efficiency, product performance and flexibility will provide
significant benefits for our customers in the future.
An important initiative in the USA was the formation of a UPS technology centre
to strengthen our development capability for the US market. This will benefit
our product and solutions offering in 2003.
Outlook
At this stage there is no evidence of any immediate recovery in the overall
market. However, we enter the second half with a lower cost base, a stronger
order book and an improving order trend when compared with the start of the
year. These positive factors together with increasing service revenues lead us
to expect an improved performance in the second half. In addition we have the
financial strength to take advantage of business development opportunities as
they are identified.
Business continuity remains an absolute requirement for our customers. The need
to protect mission-critical equipment and the degrading power quality in many
countries are the key market drivers which will reassert themselves over the
longer term.
The business is already benefiting from its lower cost base and better margins
and can address a wide range of market opportunities with its comprehensive
products and solutions offerings. We are in an excellent position to leverage
these benefits as market conditions improve.
Norman Broadhurst
24 October 2002
Summarised consolidated profit and loss account
(unaudited)
Year to Six months to Six months to
31 March 30 September 30 September
2002 2002 2001
#000 #000 #000
148,327 Turnover 67,602 73,610
Operating profit before goodwill amortisation
5,040 and exceptional items 3,005 2,205
Exceptional items:
(6,800) restructuring costs - (3,940)
(12,827) goodwill impairment - (1,120)
(3,029) Goodwill amortisation (1,182) (1,464)
(17,616) Operating profit/(loss) 1,823 (4,319)
(559) Net interest payable (388) (200)
(18,175) Profit/(loss) on ordinary activities before 1,435 (4,519)
taxation
(862) Tax on profit/(loss) on ordinary activities (706) (361)
(19,037) Profit/(loss) on ordinary activities after 729 (4,880)
taxation
(33) Minority interests - -
(19,070) Profit/(loss) for the period 729 (4,880)
(3,772) Dividends (1,883) (1,905)
(22,842) Loss retained (1,154) (6,785)
Earnings per share
1.41 p Adjusted 0.81 p 0.63 p
(8.05)p Basic 0.31 p (2.06)p
(8.05)p Diluted 0.31 p (2.06)p
Summarised consolidated balance sheet
(unaudited)
At At At
31 March 30 September 30 September
2002 2002 2001
#000 #000 #000
Fixed assets
41,926 Goodwill 39,507 50,934
13,925 Tangible assets 13,226 14,583
10,624 Investments 10,583 9,550
66,475 63,316 75,067
Current assets
29,761 Stocks 27,253 31,574
48,899 Debtors 43,190 46,371
23,929 Cash at bank and in hand 22,242 29,741
102,589 92,685 107,686
73,031 Creditors: amounts falling due within one year 62,250 61,574
29,558 Net current assets 30,435 46,112
96,033 Total assets less current liabilities 93,751 121,179
Creditors: amounts falling due after more than
16,384 one year 16,040 26,096
12,950 Provisions for liabilities and charges 13,145 13,446
66,699 Net assets 64,566 81,637
66,651 Equity shareholders' funds 64,518 81,637
48 Minority interests 48 -
66,699 Total capital employed 64,566 81,637
Summarised consolidated cash flow statement
(unaudited)
Year to Six months to Six months to
31 March 30 September 30 September
2002 2002 2001
#000 #000 #000
1,779 Cash inflow/(outflow) from operating activities 4,027 (3,864)
(616) Returns on investments and servicing of finance (388) (200)
(2,692) Taxation (780) (1,173)
(2,802) Capital expenditure (919) (933)
(4,992) Acquisitions and disposals - (677)
(3,779) Equity dividends paid (1,892) (1,897)
Cash inflow/(outflow) before use of liquid
(13,102) resources and financing 48 (8,744)
Management of liquid resources
21,522 Net (increase)/decrease in short-term deposits (1,665) 7,678
Financing
407 Net cash inflow from financing 120 1,307
8,827 (Decrease)/increase in cash (1,497) 241
Statement of total recognised gains and losses
(unaudited)
Year to Six months to Six months to
31 March 30 September 30 September
2002 2002 2001
#000 #000 #000
(19,070) Profit/(loss) for the period 729 (4,880)
Currency translation differences on foreign currency
(291) Net investments (1,021) (1,315)
(19,361) Total recognised losses for the period (292) (6,195)
Reconciliation of movements in equity shareholders' funds
(unaudited)
Year to Six months to Six months to
31 March 30 September 30 September
2002 2002 2001
#000 #000 #000
(19,070) Profit/(loss) for period 729 (4,880)
(3,772) Dividends (1,883) (1,905)
(291) Exchange adjustments (1,021) (1,315)
61 New share capital issued 42 32
18 Share premium thereon - -
(23,054) Net decrease in equity shareholders' funds (2,133) (8,068)
89,705 Opening equity shareholders' funds 66,651 89,705
66,651 Closing equity shareholders' funds 64,518 81,637
Notes to the interim financial statements
(unaudited)
1 Segmental information
Year to Six months to Six months to
31 March 30 September 30 September
2002 2002 2001
Profit/(loss) Profit/(loss) Profit/(loss)
before before before
Turnover interest Turnover interest Turnover interest
#000 #000 #000 #000 #000 #000
117,627 4,775 Europe 54,386 2,875 57,723 2,294
21,968 320 Americas 10,485 125 11,296 79
8,732 (55) Asia and Australasia 2,731 5 4,591 (168)
148,327 5,040 Total 67,602 3,005 73,610 2,205
- (6,800) Restructuring costs - - - (3,940)
- (12,827) Goodwill impairment - - - (1,120)
- (3,029) Goodwill amortisation - (1,182) - (1,464)
148,327 (17,616) 67,602 1,823 73,610 (4,319)
2 Preparation of the interim financial statements
The interim financial statements, which are unaudited, have been prepared on the
basis of the accounting policies set out in the 2002 annual report.
The comparative figures for the year ended 31 March 2002 do not comprise full
financial statements and have been extracted from the 2002 statutory accounts,
which have been filed with the Registrar of Companies. The auditors' opinion on
those accounts was unqualified and did not include any statement under section
237 of the Companies Act 1985.
3 Exceptional items
Exceptional costs in the prior year comprise restructuring costs of #6.8 million
in respect of the programme to reduce worldwide costs and a goodwill impairment
charge of #12.8 million.
4 Taxation
The tax charge provided at the half year is based on the estimated effective tax
rate for each undertaking in the Group applicable to the year to 31 March 2003
as applied to the taxable profits for the period.
5 Earnings per share
Year to Six months to Six months to
31 March 30 September 30 September
2002 2002 2001
Million Million Million
Weighted average number of 25p ordinary shares
236.9 - basic and adjusted 236.7 237.4
- Adjustment for shares under option - -
Weighted average number of 25p ordinary shares
236.9 - diluted 236.7 237.4
#000 #000 #000
Profit/(loss) for basic and diluted earnings per
share
(19,070) calculations 729 (4,880)
6,800 Restructuring costs - 3,940
12,827 Goodwill impairment - 1,120
(256) Tax on exceptional items - (140)
3,029 Goodwill amortisation 1,182 1,464
3,330 Profit for adjusted earnings per share 1,911 1,504
calculation
1.41 p Earnings per - adjusted 0.81 p 0.63 p
share
(8.05)p - basic 0.31 p (2.06)p
(8.05)p - diluted 0.31 p (2.06)p
The weighted average number of shares excludes shares held by the Chloride Group
Employee Benefit Trust and the Chloride Quest.
The directors consider that the adjusted earnings per share figures more
accurately reflect the underlying performance of the business.
6 Fixed assets
Investments comprises #10.6 million in respect of a holding at 30 September 2002
of 11.2 million of the Company's ordinary shares (2001: #9.6 million in respect
of 9.5 million shares) by the Chloride Group Employee Benefit Trust, which had a
market value in excess of #3.1 million (2001: #5.4 million). The Trust holds
these shares to meet long-term commitments in relation to employee share option
plans.
7 Cash flow statement supporting information
a) Reconciliation of net cash flow to movement in net debt
Year to Six months to Six months to
31 March 30 September 30 September
2002 2002 2001
#000 #000 #000
8,827 (Decrease)/increase in cash (1,497) 241
Net cash inflow from movement in debt and lease
(328) financing (120) (1,182)
Cash outflow/(inflow) from increase/(decrease)
in
(21,522) liquid resources 1,665 (7,678)
(249) Debt and finance leases acquired with subsidiary - -
264 Exchange rate translation differences (1,123) (125)
(13,008) Increase in net debt (1,075) (8,744)
4,884 Net (debt)/funds at 1 April (8,124) 4,884
(8,124) Net debt at 30 September (9,199) (3,860)
b) Reconciliation of operating profit to net cash flow
Year to Six months to Six months to
31 March 30 September 30 September
2002 2002 2001
#000 #000 #000
2,011 Operating profit before exceptional items 1,823 741
7,034 Depreciation and goodwill amortisation 2,712 3,033
- Profit on sale of tangible assets - 32
(533) Decrease in stocks 2,791 160
11,881 Decrease in debtors 5,557 11,789
(14,717) Decrease in creditors and provisions (8,316) (16,514)
(3,897) Restructuring costs (540) (3,105)
1,779 Cash inflow/(outflow) from operating activities 4,027 (3,864)
c) Analysis of net debt
At At At
31 March 30 September 30 September
2002 2002 2001
#000 #000 #000
10,032 Cash 6,678 1,999
(6,034) Overdrafts (4,635) (6,683)
(9,802) Debt due within one year (10,344) (88)
(15,250) Debt due after more than one year (15,572) (25,568)
(274) Discounted trade bills (269) (620)
(693) Finance lease obligations (621) (642)
13,897 Liquid resources 15,564 27,742
(8,124) Net debt (9,199) (3,860)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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