Half Yearly Report

 

TIDMFSS 
 
RNS Number : 3710E 
Forest Support Services PLC 
21 December 2009 
 

Forest Support Services Plc 
 
 
Chairman's Statement 
 
 
I am pleased to report that the Company achieved a profit of GBP186,010, before 
taxation, on revenues of GBP4,340,466. Increased turnover and more efficient 
utilisation of overhead have improved earnings during the traditionally weaker 
first half. 
 
 
Trading has been strong at Newport, with increased revenues from existing 
framework contracts and improved performance during the key summer months. 
Bristol and Winchester have performed in line with expectations during the 
period. 
 
 
Results 
The Group has recorded a profit of GBP186,010 (2008: GBP41,991) for the period, 
before taxation. Turnover for the period increased by 25% to GBP4,340,466 (2008 
GBP3,463,476). The Group held cash at the period end of GBP421,171 (2008: 
GBP376,676). 
 
 
As in previous years the Company will not pay an interim dividend but expects to 
continue its progressive dividend policy. The final dividend for the year ending 
31 March 2009 will be paid on 12th January 2010. 
 
 
Current Trading and Future Prospects 
 
 
Traditionally, second half performance has been stronger than first half. In the 
current year it is not clear that this seasonal pattern of trading will prevail 
and, with limited visibility about workload, it is not yet possible to form 
clear expectations about the second half. 
 
 
The start of the second half has been less strong than in previous years with 
certain key projects suffering start-date delays. However, these projects are 
expected to make a contribution in the second half. Demand from other market 
segments remains resilient. The Board will continue to monitor closely changes 
in levels of spending on its services. 
 
 
The Company has a strong position within its principal markets, with well 
established customer relationships. The business remains focussed upon serving 
the Infrastructure RMI (Repair, Maintenance and Improvement) market, in which 
demand has historically been stable and resilient. 
 
It is expected that the Company will achieve a satisfactory conclusion to the 
full year. 
 
 
Conclusion 
 
 
As reported previously, the Company will continue to pursue opportunities that 
can be served from the existing depot network, with a continued focus on 
existing market segments, which provide resilience. This will provide the 
Company with a stable platform for future growth. However, there remains 
uncertainty regarding the level of future public expenditure. 
 
 
 
 
 
 
C C Powell 
Chairman 
 
 
Date: 21st December 2009 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Forest Support Services plc 
 
 
Consolidated Income Statement 
 
 
for the six months ended 30 September 2009 
 
 
+-----------------------------------------+-------------+-------------+------------+---+ 
|                                         |   Unaudited |   Unaudited |        Audited | 
|                                         |  Six months |  Six months |        Year to | 
|                                         |          to |          to |       31 March | 
|                                         |          30 |          30 |           2009 | 
|                                         |   September |   September |            GBP | 
|                                         |        2009 |        2008 |                | 
|                                         |         GBP |         GBP |                | 
+-----------------------------------------+-------------+-------------+----------------+ 
| REVENUE                                 |   4,340,466 |   3,463,476 |      6,752,949 | 
+-----------------------------------------+-------------+-------------+----------------+ 
| Cost of sales                           | (3,153,452) | (2,462,133) |    (4,626,808) | 
+-----------------------------------------+-------------+-------------+----------------+ 
|                                                                                  | 
+----------------------------------------------------------------------------------+ 
| GROSS PROFIT                            |   1,187,014 |   1,001,343 |      2,126,141 | 
+-----------------------------------------+-------------+-------------+----------------+ 
| Administrative expenses                 |   (986,160) |   (941,242) |    (1,875,686) | 
+-----------------------------------------+-------------+-------------+----------------+ 
|                                         |             |             |            | 
+-----------------------------------------+-------------+-------------+------------+ 
| OPERATING PROFIT                        |     200,854 |      60,101 |        250,455 | 
+-----------------------------------------+-------------+-------------+----------------+ 
| Finance costs                           |    (14,844) |    (24,809) |       (43,342) | 
+-----------------------------------------+-------------+-------------+----------------+ 
| Finance income                          |           - |       6,699 |          8,053 | 
+-----------------------------------------+-------------+-------------+----------------+ 
|                                                                                  | 
+----------------------------------------------------------------------------------+ 
| PROFIT BEFORE TAXATION                  |     186,010 |      41,991 |        215,166 | 
+-----------------------------------------+-------------+-------------+----------------+ 
| Taxation                                |    (52,678) |    (17,019) |       (65,070) | 
+-----------------------------------------+-------------+-------------+----------------+ 
|                                                                                  | 
+----------------------------------------------------------------------------------+ 
| PROFIT FOR THE PERIOD                   |     133,332 |      24,972 |        150,096 | 
+-----------------------------------------+-------------+-------------+----------------+ 
|                                         |             |             |                | 
+-----------------------------------------+-------------+-------------+----------------+ 
| EARNINGS PER SHARE                      |       0.71p |       0.13p |          0.80p | 
| Basic and diluted                       |             |             |                | 
+-----------------------------------------+-------------+-------------+----------------+ 
|                                                                                  | 
+-----------------------------------------+-------------+-------------+------------+---+ 
 
 
  Forest Support Services plc 
 
 
Consolidated Balance Sheet 
 
 
as at 30 September 2009 
 
 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|                                                                 |                   |                |                 | 
|                                                                 |         Unaudited |      Unaudited |         Audited | 
|                                                                 | 30 September 2009 |   30 September |        31 March | 
|                                                                 |               GBP |           2008 |            2009 | 
|                                                                 |                   |            GBP |             GBP | 
+-----------------------------------------------------------------+-------------------+----------------+-----------------+ 
| NON-CURRENT ASSETS                                              |                   |                |                 | 
+-----------------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | Goodwill                                             |           544,291 |        544,291 |         544,291 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | Property, plant and equipment                        |           973,076 |      1,008,061 |         871,953 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | Deferred tax asset                                   |            63,078 |         59,974 |          86,516 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|                                                                                                                        | 
+------------------------------------------------------------------------------------------------------------------------+ 
|                                                                 |         1,580,445 |      1,612,326 |       1,502,760 | 
+-----------------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | CURRENT ASSETS                                       |                   |                |                 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | Trade and other receivables                          |         2,398,984 |      1,932,955 |       1,773,505 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | Cash and cash equivalents                            |           421,171 |        376,676 |         580,961 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|                                                                                                                        | 
+------------------------------------------------------------------------------------------------------------------------+ 
|                                                                 |         2,820,155 |      2,309,631 |       2,354,466 | 
+-----------------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | TOTAL ASSETS                                         |         4,400,600 |      3,921,957 |       3,857,226 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | CURRENT LIABILITIES                                  |                   |                |                 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | Trade and other payables                             |         1,309,258 |      1,013,397 |         917,060 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | Current tax liabilities                              |            99,011 |              - |          69,771 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | Bank loan                                            |            94,175 |         74,175 |          89,212 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | Obligations under finance leases                     |           120,322 |        110,180 |         110,180 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|                                                                                                                        | 
+------------------------------------------------------------------------------------------------------------------------+ 
|                                                                 |         1,622,766 |      1,197,752 |       1,186,223 | 
+-----------------------------------------------------------------+-------------------+----------------+-----------------+ 
|                                                                                                                        | 
+------------------------------------------------------------------------------------------------------------------------+ 
| NON-CURRENT LIABILITIES                                         |                   |                |                 | 
+-----------------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | Bank loan                                            |           182,541 |        286,545 |         234,395 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | Obligations under finance leases                     |           145,037 |        174,774 |         119,684 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|                                                                                                                        | 
+------------------------------------------------------------------------------------------------------------------------+ 
|                                                                 |           327,578 |        461,319 |         354,079 | 
+-----------------------------------------------------------------+-------------------+----------------+-----------------+ 
|          |                                                      |                   |                |                 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | TOTAL LIABILITIES                                    |         1,950,344 |      1,659,071 |       1,540,302 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|                                                                                                                        | 
+------------------------------------------------------------------------------------------------------------------------+ 
| NET ASSETS                                                      |         2,450,256 |      2,262,886 |       2,316,924 | 
+-----------------------------------------------------------------+-------------------+----------------+-----------------+ 
|                                                                                                                        | 
+------------------------------------------------------------------------------------------------------------------------+ 
| EQUITY                                                          |                   |                |                 | 
+-----------------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | Share capital                                        |           935,350 |        935,350 |         935,350 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | Share premium                                        |         1,513,530 |      1,513,530 |       1,513,530 | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|          | Retained earnings                                    |             1,376 |      (185,994) |       (131,956) | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
|                                                                                                                        | 
+------------------------------------------------------------------------------------------------------------------------+ 
|                                                                 |         2,450,256 |      2,262,886 |       2,316,924 | 
+-----------------------------------------------------------------+-------------------+----------------+-----------------+ 
|                                                                                                                        | 
+----------+------------------------------------------------------+-------------------+----------------+-----------------+ 
 
 
 
 
 
 
 
 
 
Forest Support Services plc 
 
 
Consolidated Cash Flow Statement 
 
 
for the six months ended 30 September 2009 
 
 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
|                                                       |  Six months to |    Six months to |         Year to | 
|                                                       |   30 September |     30 September |        31 March | 
|                                                       |           2009 |             2008 |            2009 | 
|                                                       |            GBP |              GBP |             GBP | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
| NET CASH FROM OPERATING ACTIVITIES                    |        183,584 |           34,574 |         494,393 | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
| INVESTING ACTIVITIES                                  |                |                  |                 | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
| Interest received                                     |              - |            6,699 |           8,053 | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
| Purchases of property, plant and equipment            |      (217,535) |         (81,705) |       (175,304) | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
|                                                                                                             | 
+-------------------------------------------------------------------------------------------------------------+ 
|                                                       |      (217,535) |         (75,006) |       (167,251) | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
| FINANCING ACTIVITIES                                  |                |                  |                 | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
| Dividends paid                                        |              - |                - |        (71,086) | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
| Repayment of borrowings                               |       (46,891) |         (70,598) |       (107,711) | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
|                                                       |       (78,948) |         (58,331) |       (113,421) | 
| Repayment of obligations under finance leases         |                |                  |                 | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
|                                                                                                             | 
+-------------------------------------------------------------------------------------------------------------+ 
|                                                       |      (125,839) |        (128,929) |       (292,218) | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
|                                                                                                             | 
+-------------------------------------------------------------------------------------------------------------+ 
| NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS  |      (159,790) |        (169,361) |          34,924 | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
|                                                                                                             | 
+-------------------------------------------------------------------------------------------------------------+ 
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD      |        580,961 |          546,037 |         546,037 | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
|                                                                                                             | 
+-------------------------------------------------------------------------------------------------------------+ 
| CASH AND CASH EQUIVALENTS AT END OF PERIOD            |        421,171 |          376,676 |         580,961 | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
|                                                                                                             | 
+-------------------------------------------------------+----------------+------------------+-----------------+ 
 
 
 
+-----------------------------------------+------------+------------+-------------+ 
| NET CASH FROM OPERATING ACTIVITIES      | Six months | Six months |     Year to | 
|                                         |         to |         to |    31 March | 
|                                         |         30 |         30 |        2009 | 
|                                         |  September |  September |         GBP | 
|                                         |       2009 |       2008 |             | 
|                                         |        GBP |        GBP |             | 
+-----------------------------------------+------------+------------+-------------+ 
|                                         |            |            |             | 
+-----------------------------------------+------------+------------+-------------+ 
| Operating profit                        |    200,854 |     60,101 |     250,455 | 
+-----------------------------------------+------------+------------+-------------+ 
| Adjustments for:                        |            |            |             | 
+-----------------------------------------+------------+------------+-------------+ 
| Depreciation on property, plant and     |    230,855 |    242,310 |     472,014 | 
| equipment                               |            |            |             | 
+-----------------------------------------+------------+------------+-------------+ 
|                                                                                 | 
+---------------------------------------------------------------------------------+ 
| OPERATING CASHFLOWS BEFORE MOVEMENTS IN |    431,709 |    302,411 |     722,469 | 
| WORKING CAPITAL                         |            |            |             | 
+-----------------------------------------+------------+------------+-------------+ 
|                                                                                 | 
+---------------------------------------------------------------------------------+ 
| Increase in debtors                     |  (625,479) |  (232,971) |    (78,340) | 
+-----------------------------------------+------------+------------+-------------+ 
| Increase/(decrease) in creditors        |    392,198 |   (10,057) |   (106,394) | 
+-----------------------------------------+------------+------------+-------------+ 
|                                                                                 | 
+---------------------------------------------------------------------------------+ 
| CASH GENERATED FROM OPERATIONS          |    198,428 |     59,383 |     537,735 | 
+-----------------------------------------+------------+------------+-------------+ 
|                                                                                 | 
+---------------------------------------------------------------------------------+ 
| Interest paid                           |   (14,844) |   (24,809) |    (43,342) | 
+-----------------------------------------+------------+------------+-------------+ 
| Tax paid                                |          - |          - |           - | 
+-----------------------------------------+------------+------------+-------------+ 
|                                                                                 | 
+---------------------------------------------------------------------------------+ 
| NET CASH GENERATED FROM OPERATIONS      |    183,584 |     34,574 |     494,393 | 
+-----------------------------------------+------------+------------+-------------+ 
|                                                                                 | 
+-----------------------------------------+------------+------------+-------------+ 
 
 
 
 
 
Forest Support Services plc 
 
 
Notes to the condensed interim financial statements 
 
 
1. General Information 
 
 
Forest Support Services Plc (the "Company") is a company domiciled in England 
and Wales whose registered office address is Forest House, Broad Quay Road, 
Felnex Industrial Estate, Newport NP19 4PN. The condensed consolidated interim 
financial statements of the Company for the six months ended 30 September 2009 
comprise the Company and its subsidiaries (together referred to as the "Group"). 
 
 
The condensed consolidated interim financial statements do not constitute 
statutory accounts as defined in Section 435 of the Companies Act 2006. 
 
 
The financial information for the year ended 31 March 2009 has been extracted 
from the statutory accounts. The auditors' report on the statutory accounts was 
unqualified and did not contain a statement under Section 237 of the Companies 
Act 1985. A copy of those financial statements has been filed with the Registrar 
of Companies.The condensed consolidated interim financial statements do not 
include all of the information required for full annual financial statements. 
 
 
The accounting policies used in the preparation of the condensed consolidated 
interim financial statements are the same as those applied in the year ended 31 
March 2009. As permitted, this interim report has been prepared in accordance 
with the AIM Rules for companies and is not compliant in all respects with IAS 
34 'Interim Financial Statements'. The condensed consolidated financial 
statements do not include all of the information required for full annual 
financial statements and therefore cannot be considered as in full compliance 
with IFRS. 
 
 
The condensed consolidated interim financial statements were authorised for 
issue on 17th December 2009. 
 
 
2. Earnings per share 
 
 
Basic earnings per share is based on the earnings for the year attributable to 
shareholders and on the weighted average number of shares in issue during the 
year. The number of shares used for calculating basic earnings per share was 
18,706,961. As the exercise price of the share options granted by the company 
exceeded the average market price of the shares during the six months ended 30 
September 2009, and for the six months ended 30 September 2008 and the year 
ended 31 March 2009, there is no dilutive impact on earnings per share in the 
period. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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