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FNT Fountains

86.50
0.00 (0.00%)
03 May 2024 - Closed
Delayed by 15 minutes
Fountains Investors - FNT

Fountains Investors - FNT

Share Name Share Symbol Market Stock Type
Fountains FNT London Ordinary Share
  Price Change Price Change % Share Price Last Trade
0.00 0.00% 86.50 01:00:00
Open Price Low Price High Price Close Price Previous Close
86.50 86.50
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Top Investor Posts

Top Posts
Posted at 30/1/2009 22:37 by praipus
Got the annual report today not impressed too glossy for a company that has lost 2/3 of its SP, had a change of management and significantly increased director remuneration and keeps investors poorly informed in terms of take over situations.

And on a £41m turnover produce £45,000.....utter rubbish, gives the impression of being very poorly managed. Next years annual report should be on the cheapest paper possible and not have a single photo unless they can show a profit in excess of 10% of turnover. I would also like to see salaries marked down reflecting terrible performance of share price and profit contraction.

Very suspicous of companies that just talk about good order books.....money in the bank is what counts not promises and glossy picture of the grossly overpaid guys throwing my money away.
Posted at 18/3/2008 19:16 by miked500
March 16, 2008

It's true! Money can grow on trees
INVESTORS seeking a shelter from the storm in markets could consider forestry.

The value of woodland has surged by up to 40% in the past year as it has become a new and unexpected investment hotspot.

Forest owners have seen the value of their plots more than double in the past four years, according to Savills, the estate agents, and UPM Tilhill, a forestry-management company.

Timber prices have surged partly because of growing demand from China and India as well as the constraints on supply and high transportation costs due to rising oil prices.

Nearly 16,000 hectares of woodland were sold in the UK last year, at an average price of about £4,250 per hectare – an increase of about 80% in value compared with 2006.

An attractive feature of woodland investments are the tax breaks they offer investors.

Normally, your heirs would pay inheritance tax (IHT) on the value of your estate above the annual exemption, currently £300,000. But if you manage woodland commercially, the land and trees become exempt from IHT after two years.

Income derived from any type of woodland is free from income and corporation tax.

And any increase in the value of the timber is exempt from capital-gains tax (CGT). This doesn't apply to the land, however.

Woodlands also qualify for CGT roll-over relief. You can avoid CGT that has arisen following the sale of a business by reinvesting the proceeds in forestry. If you hold the woodland until death, the CGT bill is forgotten.

There are also government grants for growing trees, maintaining woodland and environmental initiatives. Contact the Forestry Commission to find out more (0131 334 0303, forestry.gov.uk).

If you want to invest in woodland, you can buy through an agent or investment manager, such as Tilhill, John Clegg, Fountains or FIM. Woods themselves start at about £30,000.
Posted at 04/12/2007 14:22 by woozle1
It was bleeding obvious that it was a low ball bid given the share price was only 130. If it were a proper bid it should have been nearer 200p. I suspect it's the disgruntled former CEO trying to take it on the cheap and thinking that investors would take the cash. There's plenty room for more growth and I think that we should be at 200p within the year, assuming the US does not launch some nukes against Iran.

DYOR

W
Posted at 25/6/2007 11:41 by zico01
Forestry leaves all other asset classes behind
By Jonathan Russell, Sunday Telegraph
Last Updated: 2:13am BST 24/06/2007



Forestry has emerged as the best-performing asset class of 2006 with a return of 20.6 per cent, ahead of commercial property, equities and bonds.


According to figures from research house Investment Property Databank both land values and the price of timber rose significantly over the year creating bumper returns for the small army of private investors in the sector.

However the surprise performance of one of the smallest investment sectors in the UK is likely to lead to renewed calls for the privatisation of the state-owned Forestry Commission, the dominant player in the sector.

Alan Guy, acquisitions manager at forestry management company Fountains, said: "Fountains feels it is time for UK forestry to be released from the restriction of state ownership. We are talking about the privatisation of the Forestry Commission. There is a role for Government and for a regulated Forestry Commission, however the structure is not right at the moment. It is the only substantial industry in the country where the Government has such a huge role."

The Forestry Commission, which manages 44 per cent of Britain's 1.6m hectares of commercial forestry, has been criticised in the past for distorting the market for timber in the UK. Saddled with set income targets the organisation typically responds to a fall in timber prices by increasing output, driving prices down further and infuriating private forestry investors. On conservative estimates, the Forestry Commission controls assets valued at over £2bn.

The increases in the value of UK timber has been driven by a global shortage of wood as demand from China soaks up world supply. In the UK the emergence of timber as a source of fuel for new-generation power stations in places such as Lockerbie in Scotland and Shotton in North Wales, as well as the revival of wood as a building material has forced prices ever higher.

The performance of forestry over the last two years - in 2005 the sector saw returns of 14.4 according to IPD - has seen a range of new investors enter the sector. Traditionally dominated by wealthy private investors, a number of institutional investors such as pension funds are known to have invested in forestry.

With investors paying no income tax on sales of timber, no capital gains tax on forestry owned for more than two years, and no inheritance tax, the sector has always been a magnet for the rich looking for wealth preservation schemes.

Investment Property Databank research director Malcolm Frodsham said: "The combinations of a range of investor types that have been keen to buy into the sector, rising agricultural land values and rising timber prices have all contributed to the return and show no signs of abating in 2007."
Posted at 06/3/2005 12:57 by mw8156
A mention in the FT today from veteran investor and former MP John Lee.
Posted at 22/11/2004 07:54 by gateside
Preliminary Results

'Financial strength to raise our growth rate'

fountains plc the leading provider of a range of environmental services in the
United Kingdom, Ireland and the USA today announces its preliminary results for
the year ended 30 September 2004.

Key Points

* Profit before tax up 20% to #1,440,000 (2003: #1,202,000)

* Turnover up to #36.1 million (2003: #35.6 million)

* Operating cashflow #2.6 million (2003: #2.0 million) - no net
borrowings

* Earnings per share increased by 11% to 9.07 pence (2003: 8.20 pence)

* Final dividend of 2.10 pence, total dividend for the year up 12% to
3.10 pence (2003: 2.77 pence).

* Successful net fundraising of #5.1 million, three times
oversubscribed, for acquisitions.
Net cash now #7.2 million.

* Forest management base increased in the USA through the acquisition of
Les Ott & Associates for US$ 225.000

Barry Gamble, Chairman, commented:

"This has been another year of progress, we now have the track record,
management capability and balance sheet strength to raise our growth rate. I am
confident we can continue to build our reputation for delivery to customers and
shareholders alike."

High resolution images are available for the media to view and download free of
charge from www.vismedia.co.uk"

Contacts:
Barry Gamble, Chairman Tel: 01295 750000
Doug Eadie, Finance Director
fountains plc www.fountainsplc.com

Tim Thompson / Tom Carroll Tel: 020 7466 5000
Buchanan Communications



Chairman's Statement/Operating Review

RESULTS

I am pleased to report on a year of further strong progress.

Profit and Cash

Profit before tax of #1,440,000 (2003: #1,202,000) has increased by 20%.
Although overall sales growth has been modest with turnover of #36.1 million
against #35.6 million for 2003 our focus on profitability has been maintained
with operating margin up to 4.2% (2003:3.8%). This has been achieved with
significantly lower working capital.

Operating cash flow at #2.6 million (2003: #2.0 million) has again been strong
and the business has no net borrowings for the fourth year running. As at 30
September 2004 net cash was #7.2 million (2003: #1.6 million). We have achieved
an underlying increase in net cash of #236,000; excluding the effect of the
equity fundraising. This is after significantly increased capital expenditure
of #1.8 million (2003: #0.8 million).

Profit after tax is up by 22% to #1,016,000 (2003: #836,000). Earnings per
ordinary share are 9.1 pence (2003: 8.2 pence) an increase of 11%, again double
digit earnings growth. Earnings per share before goodwill are 10.3 pence (2003:
9.5 pence).

Dividend

We continue to place strong emphasis on cash generation as a measure of business
performance. We also recognise the contribution dividends make to total
shareholder returns. In this, our fifth year of good progress in profit and
cash generation, we have again raised our dividend to shareholders.

We are therefore recommending a final dividend of 2.1 pence per share for
approval by the shareholders at the Annual General Meeting, Thursday 17 February
2005.

With the interim dividend payment of 1.0 pence per share this makes a total
dividend for the year of 3.1 pence per share ( 2003: 2.77 pence) a rise of 12%;
the same level of increase as for the last two years.

OPERATIONS

Our current service offering plays a part in maintaining power supplies,
ensuring trains and highways operate safely, amenity land enjoyment and forest
asset maximisation. We are continuing to develop our services for managing and
maintaining dispersed remotely located assets.

Turnover excluding forestry increased by 5%. This relatively low sales growth
reflects tighter bid processes and the absence of some under performing
contracts closed or renegotiated in 2003. We continue to be selective in the
terms on which we undertake work so that our profitability targets are not
compromised.

We are now organising the business by customer facing divisions. These comprise
Rail, Utilities, Maintenance and Forestry. This continues our commitment to
ensure safe and measured service delivery. In this respect we are continuing
with significant investment in safety, compliance and commercial controls.

RAIL

We have seen good demand for our off track services and have covered over 1,000
route miles on the rail network undertaking survey and vegetation clearance
work.

This work is directed to reducing the amount of track affected by leaf fall and
improving line and signal visibility. This includes taking track possession at
weekends and overnight, requiring detailed planning and preparation so that our
operational work can be smoothly executed. Assembling men, machines and
equipment capable of completing the work within alloted time spans requires
precise co-ordination, adequate contingency planning and good communication.

In order to improve our mobilisation we have developed a number of new
approaches for recruiting field staff and are supporting this initiative with
more dedicated training.

In addition to vegetation management and large scale tree surgery we also
undertake other off track work including fencing. We have recently been awarded
a significant tranche of this work on the Scottish Rail network.

UTILITIES

Following actions instigated in 2003, our exposure to this fragmented market has
reduced this year. Nonetheless we have vegetation management, surveying and
tree cutting operations on just under 20,000km of transmission and distribution
lines.

The interface between electrical networks and vegetation growth can be
problematic. While the physical infrastructure is engineered and largely
predictable, the natural phenomena of weather systems and the impact on plant
growth are more difficult to determine. As a result, electrical utilities are
re-assessing the specifications for this work. For our part we are continuing
to innovate with better data management, the use of specialist equipment such as
chippers, mobile elevated platforms and better monitoring of work productivity.

The Department of Trade and Industry are expected shortly to publish a further
report on the risks inherent in vegetation on electrical networks. We plan to
participate in an industry wide response and expect programmes to be increased
in scale and scope as a result.

MAINTENANCE

Grounds Maintenance

Our positioning in this sector has been maintained in a competitive market.
Existing contracts have performed well and we have achieved a high level of
contract extensions and renewals. This encompasses a range of services
including the maintenance of play areas, airfields, sports facilities, parks and
other open spaces. We also provide specialist maintenance of railway stations
for train operating companies. This includes graffiti removal and litter
picking.

Our operational teams take responsibility for managing all aspects of grass
cutting, flower beds, borders, hedges, sports facilities and street scene.

Highways

We have developed our capability to include work on highways. We have covered
7,000 km during the grass cutting season with machines working up to 18 hours
per day. As well as grass cutting and weed control we take responsibility for
maintaining roadside trees.

We are increasingly using global positioning and geographic information systems
to better scope the work required and monitor operations. We now have the
capability to link digital photographs and maps to improve communication with
our customers.

Substations

As well as our work for electrical utilities in controlling vegetation, we have
undertaken the maintenance of 50,000 substations. This principally comprises
grass cutting, weed control, fencing and basic security. This capability can be
extended to all major utility organisations such as oil, gas, water and telecom
sites.

Landscaping

Profitable turnover has increased from activities carefully targeted on more
specialist applications where we are able to deliver added value to customers.
Work during the year has included a major soft landscaping project at the new
Scottish Parliament in Edinburgh. The design required the establishment of
grass areas on lightweight structures to conceal roof areas and blend in with
natural ground features. This followed a substantial landscaping project at the
new Falkirk stadium earlier in the year.

FORESTRY

United States of America

Sales for the period are down on last year since comparable figures for 2003
included one off billings of long term incentive fees. Nonetheless this
business has made further substantial progress during the year. The management
base has increased to almost 600,000 acres, half of which is under forest
certification. We have new operations in Pennslyvannia, Kentucky and Ohio. As
well as our core service offering of forest management, we undertake consulting
and broking work. Through this broader service capability we are continuing to
strengthen our relationships with a number of leading US based timber investment
management organisations.

United Kingdom

UK Forestry sales are significantly down on last year. This has arisen from
lower activity as long term owners continue to take a cautious investment view
as a result of continuing poor timber prices. Our smaller scale one off
contracts have also been very price competitive. New timber market development
could have a strong impact on the demand for Sitka Spruce and underpin forest
values.

STRATEGY

During the year we successfully raised #5.1 million by the issue of shares to
new institutional investors. This fundraising was well supported, being almost
three times oversubscribed. We did this having identified some specific
acquisition targets and having started negotiation processes.

Since the fundraising we had offers accepted on two businesses, either of which
would have transformed the scale of our operations. Our due diligence for one
of these acquisitions caused us to significantly lower our offer; the target was
subsequently withdrawn from the market. For the other the vendors terminated
negotiations.

We continue to identify other suitable acquisition opportunities but will only
proceed provided we are satisfied that a transaction would enhance shareholder
value.

We have taken an opportunity to increase our forest management base in the
United States through the acquisition of Les Ott and Associates for a total cash
consideration of up to $225,000.

SAFETY, ENVIRONMENT AND QUALITY

We continue to recognise that operating safely and to the highest environmental
standards are core values. This year we achieved a 19% reduction in lost time
injuries. We are continuing to improve our safety performance with a goal of
zero accidents. We have achieved the international environmental standard
ISO14001.

Our strategic alliance partner, Asplundh, continues to operate to world class
standards in undertaking vegetation management work for utilities in North
America and Australasia. Some of our managers recently attended the Manager
Excellence programme at their headquarters in Philadelphia, USA. This included
sessions on the DuPont safety culture process which we are also following. We
have introduced the Chairman's Safety Award which seeks to give recognition to
good safety practice.

COMMUNICATIONS

We recognise the vital role that communications play within the business and
externally.

We were pleased to have been nominated for the investor communications award at
the 2004 AIM awards dinner. The nomination cited a well developed investor
communication programme, an excellent corporate magazine and user friendly
website.

ORDER BOOK

This now stands at #55 million (2003: #70 million). Some of our customers have
changed their procurement programmes which has put back some expected order
renewals. One customer suspended a significant volume of work, which was being
called off under a framework agreement. We are currently rebidding for this
work.

The long term forward visibility inherent in our business model remains with a
number of customers inviting bid proposals in respect of significantly higher
volumes of work. Our current year order book is strong with over 70% of our
anticipated turnover for this financial year already secured.

STAFF

I would like to take this opportunity to thank my board colleagues and our
dedicated and able staff all of whom have worked so hard to continue to make
fountains a success.

Staff take responsibility for their work and many demonstrate leadership in
their approach. We seek to involve in defining a clear direction for the
business. We want them to inspire confidence and trust in each other and to
earn the respect of our customers.

I want in particular to mention the skill and dedication of our field teams.
This has been recognised again this year. As well as maintaining our position
on the winners podium at the national Arboriculture Association tree climbing
competition, our teams were also placed third and fourth. None of this is
achieved without commitment from the teams themselves, our very able in-house
skills trainers and the support of line managers.

ANNUAL GENERAL MEETING

Shareholders may wish to note that we have decided to alternate the Annual
General Meeting between London and Banbury in future. The 2005 AGM will be held
in London for the first time.

OUTLOOK

This has been a year of further progress. We now have the track record,
management capability and balance sheet strength to raise our growth rate. I am
confident we can continue to build our reputation for delivery to customers and
shareholders alike.

B T Gamble
Chairman

22 November 2004


Financial Review

Profits and interest

The group operating profit increased by 11.8% to #1,367,000 (2003: #1,223,000).
This figure is stated after goodwill amortisation of #137,000 (2003: #136,000).

Operating margins before goodwill amortisation increased to 4.2% (2003: 3.8%).
Contract margins showed a substantial improvement, although this was offset by
the costs associated with the management structure that has been put in place
to manage and maintain our growth aspirations. Net interest income of #73,000
was received in the year, compared to a net interest charge of #21,000 in 2003.
Profit before tax increased by 19.8% to #1,440,000 (2003: #1,202,000).

Taxation

The overall tax charge of 29.4% (2003: 30.4%) was broadly in line with the
statutory rate of 30%. The group's accounting policy in respect of deferred
taxation remains prudent, with an unrecognised deferred tax asset at 30
September 2004 of #190,000 (2003: #265,000).

Earnings per share

Earnings per share were 9.07 pence (2003: 8.20 pence). Earnings per share
before goodwill were 10.29 pence (2003: 9.53 pence). The increase in basic
earnings per share of 10.6% is lower than the increase in profit before tax due
to the expanded share capital after the fundraising in July 2004.

Dividend

A final dividend is proposed of 2.10 pence per share which, together with the
interim dividend of 1.00 pence per share, gives a total for the year of 3.10
pence per share - an increase of 12% on the previous year. The total cost of
the dividend to ordinary shareholders for the year is #414,000 (2003: #284,000).
The dividend per share is covered 2.9 times by earnings. The dividend policy
takes account of current and likely future earnings.

The final dividend will be marked ex dividend 2 February 2005 and paid 25
February 2005 to shareholders on the register 4 February 2005 the record date.

Balance sheet and cashflow

#5.1 million of cash has been raised through the issue of new share capital.
This significantly strengthened the group's balance sheet by increasing net cash
to #7.2 million (2003: #1.6 million) and net assets to #12.2 million (2003: #6.4
million).

This fundraising did not prevent a continuing focus on working capital
management, as evidenced by an operating cash inflow of #2,626,000 (2003:
#1,998,000). This represents 192% of operating profit (2003: 163%) and enabled
a net cash inflow of #236,000 to be generated, excluding the impact of the
fundraising. This net cash inflow is after funding an increase of #1 million in
net capital expenditure. Increased capital expenditure arose from the purchase
of chippers that had previously been procured on short term hire arrangements.
We also purchased a new accounting system, which went live in July 2004. This
is expected to significantly enhance management reporting.

Accounting standards

There were no new accounting standards which required adoption in this year,
although the transitional disclosure provisions of FRS17 in respect of pensions
continue to be applied.

During the year, the net deficit arising on an FRS17 basis on the group's
defined benefit pension scheme increased to #806,000 (2003: #767,000) on a total
asset value of #2,479,000 (2003: #2,862,000). This defined benefit scheme has
been closed to new members since April 2000 and was changed to a career average
rather than a final salary basis from January 2004.

Increased pension contributions of #108,000 per annum commenced in January 2004
under plans to eliminate the funding deficit over a 10 year period. The group's
exposure to future risks was reduced in respect of current pensioners by the
purchase of annuities to the value of #750,000.

The group has conducted an initial review of International Financial Reporting
Standards (IFRS) and the likely impact on results. This initial analysis has
not identified any issues of fundamental importance to the group's results in
the future.

It was recently announced that AIM quoted companies would not be required to
implement IFRS until accounting periods beginning on or after 1 January 2007.
This means that fountains has no requirement to implement IFRS until the year
ending 30 September 2008. However, the group will continue to keep its
implementation options under review.

Controls and reporting

Reports on internal financial controls and going concern are set out in the
corporate governance statement.

Risks and sensitivities

The group's internal control processes routinely ensure that key risks are
identified and managed. The risks that are believed by the board to be most
significant, together with the approach taken to manage these risks are as
follows:

* As the group operates near railways and power lines, it is essential
to be able to demonstrate effective procedures for the management of health and
safety. Good safety processes are important to protect staff, minimise
consequential costs arising from accidents, control insurance expenses and
safeguard the reputation of the group.

* The group enters into long term contracts to improve the quality and
visibility of its earnings. It is therefore essential to ensure that prices
submitted for work are accurately assessed in order to minimise the risk of
entering into a loss making contract. Rigorous controls are in place to ensure
that bids are only submitted after a full review.

* Notwithstanding the group's strong order book, failure to secure and
maintain work levels at budgeted capacity may cause the total contribution to be
inadequate to support the largely fixed cost base. Levels of work are monitored
on a monthly basis to ensure that any income shortfalls are identified and acted
upon as soon as possible.

* The group's planned emphasis on acquisitions introduces a greater
level of risk. The board is mitigating this risk by setting clear acquisition
criteria and conducting extensive due diligence reviews before entering into any
major acquisitions.

Summary

The group delivered a fifth successive year of profit growth in 2004. The
continuing strong operating cashflows, combined with the proceeds from the
fundraising, provide us with significant opportunities in the coming years.

D Y Eadie
Finance Director
22 November 2004



Group Profit and Loss Account
for the year ended 30 September 2004


Year ended 30 September 2004 Year ended 30 September 2003
Before Before
goodwill goodwill
Goodwill Total Goodwill Total
Note #'000 #'000 #'000 #'000 #'000 #'000

Turnover 2 36,090 - 36,090 35,606 - 35,606

Operating expenses 3 (34,586) (137) (34,723) (34,247) (136) (34,383)
Operating profit 1,504 (137) 1,367 1,359 (136) 1,223

Interest 73 - 73 (21) - (21)

Profit on ordinary
activities before taxation 1,577 (137) 1,440 1,338 (136) 1,202

Taxation 4 (424) - (424) (366) - (366)

Profit on ordinary
activities after taxation 1,153 (137) 1,016 972 (136) 836

Dividends on equity shares (414) (284)

Retained profit for the
financial year 602 552

Earnings per share

Basic 5 10.29 (1.22)p 9.07p 9.53p (1.33)p 8.20p

Diluted 5 8.85p 8.00p



The above results are all derived from the continuing operations of the group.

Group Balance Sheet
At 30 September 2004

2004 2003
Note #'000 #'000
Fixed assets
Intangible assets 1,716 1,745
Tangible assets 2,475 1,690
Investments 1 1
4,192 3,436

Current assets

Debtors 7,388 7,117
Cash at bank and in hand 6 7,261 1,875
14,649 8,992

Current liabilities: due within one year

Creditors (6,466) (5,617)

Bank and other borrowings 6 (66) (216)
(6,532) (5,833)

Net current assets 8,117 3,159

Total assets less current liabilities 12,309 6,595

Liabilities: due after more than one year
Bank and other borrowings 6 (25) (90)

Provisions for liabilities and charges (115) (101)

Net assets 12,169 6,404

Capital and reserves

Called up share capital 742 513

Share premium account 7,263 2,310

Capital redemption reserve 444 444

Profit and loss account 3,720 3,137

Equity shareholders' funds 12,169 6,404



These financial statements were approved by the board of directors on 22
November 2004 and signed on its behalf by:


B T Gamble
Chairman


D Y Eadie
Finance Director

Group Cash Flow Statement
for the year ended 30 September 2004


2004 2003
Note #'000 #'000

Net cash inflow from operating activities 7 2,626 1,998

Returns on investments and servicing of finance

Interest received 94 42

Interest paid (8) (31)

Interest element of finance lease rental payments (13) (32)

73 (21)

Taxation (327) (222)

Capital expenditure

Purchase of tangible fixed assets (1,767) (767)

Sale of tangible fixed assets 247 259

(1,520) (508)
Acquisitions and disposals

Purchase of subsidiary undertaking (127) -

Net cash acquired with subsidiary 10 -
(117) -

Equity dividends paid (301) (260)
Cash inflow before financing 434 987

Financing

Proceeds from share issues 5,182 44

Bank loan repayments - (17)

Other loan repayments (7) (7)

Capital element of finance lease rental payments (207) (328)

4,968 (308)

Increase in cash in the year 5,402 679


PRELIMINARY RESULTS 2004 - NOTES

1. These results have been extracted from the full audited
financial statements.

2. TURNOVER

2004 2003
% #'000 % #'000

Rail, utilities and maintenance 87 31,234 84 29,729
Forestry 13 4,856 16 5,877

100 36,090 100 35,606

The group's activities of rail, utilities and maintenance and forestry comprise
one business segment.

3. OPERATING EXPENSES

Year ended 30 September 2004 Year ended 30 September 2003

Before Before
goodwill Goodwill Total goodwill Goodwill Total
#'000 #'000 #'000 #'000 #'000 #'000

Materials (2,525) - (2,525) (1,450) - (1,450)
Other external charges (12,645) - (12,645) (14,931) - (14,931)
Staff costs (15,366) - (15,366) (14,195) - (14,195)
Depreciation and amortisation (800) (137) (937) (770) (136) (906)
Other operating charge (3,250) - (3,250) (2,901) - (2,901)

(34,586) (137) (34,723) (34,247) (136) (34,383)


The profit and loss account has changed to format 2 of the Companies Act 1985
as the directors consider this is the most suitable for group reporting
purposes.

4 TAXATION ON PROFIT ON ORDINARY ACTIVITIES

2004 2003
#'000 #'000

Current tax
UK Corporation Tax at 30% (2003: 30%)

- on income for the year 350 242
- adjustments in respect of prior years (1) (9)
--------- ---------
349 233
--------- ---------
Overseas tax
- on income for the year 28 148
- adjustments in respect of prior years 20 31
--------- ---------
48 179
--------- ---------

Total current tax 397 412

Deferred tax
- overseas deferred tax 27 (46)
--------- ---------
424 366
--------- ---------

Tax on profit on ordinary activities

5 EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the earnings attributable to
shareholders by the weighted average number of shares in issue during the year,
excluding those held in the fountains ESOP Trust where dividends have been
waived.

For diluted earnings per share, the weighted average number of shares in issue
is adjusted to assume conversion of all dilutive potential shares (those share
options granted to employees where the exercise price is less than the average
market price of the Company's shares during the year.) The same earnings
attributable to shareholders are used as in the basic earnings per share
calculation.

The earnings attributable to shareholders and the weighted average number of
ordinary shares for the relevant periods are as follows:

Basic EPS Diluted EPS

2004 2003 2004 2003

Profit attributable to shareholders 1,016,000 836,000 1,016,000 836,000
Basic weighted average number of shares 11,206,774 10,196,206 11,206,774 10,196,206
Adjustments to reflect dilutive shares under option - - 279,260 249,693

Adjusted weighted average number of shares 11,206,774 10,196,206 11,486,034 10,445,899

Earnings per share FRS3 Basis 9.07p 8.20p 8.85p 8.00p

Earnings before goodwill amortisation

Earnings before goodwill amortisation are presented in addition to the basic
earnings per share calculated in accordance with FRS14 in order to provide
shareholders with additional information.

6 RECONCILIATION OF MOVEMENT IN NET CASH/DEBT

Borrowings Borrowings
Cash and under over Net
Deposits 1 year 1 year cash/(debt)
#'000 #'000 #'000 #'000

At 1 October 2003 1,875 (216) (90) 1,569
Cashflow - cash and deposits 5,402 - - 5,402
- other loans - 7 - 7
- finance leases - 142 65 207
Exchange movements (16) 1 - (15)
--------- --------- --------- ---------
At 30 September 2004 7,261 (66) (25) 7,170
--------- --------- --------- ---------


7 RECONCILIATION OF OPERATING PROFIT TO NET CASH FLOW FROM OPERATING
ACTIVITIES

2004 2003
#'000 #'000

Operating profit 1,367 1,223
Amortisation charges 137 136
Depreciation charges 800 770
Profit on disposal of tangible fixed assets (66) (149)
Decrease in stocks - 20
(Increase)/decrease in debtors (287) 729
Increase/(decrease) in creditors less than one year 687 (692)
Decrease in provisions (12) (39)
--------- ---------
2,626 1,998
--------- ---------

8 BASIS OF PREPARATION

The auditors have issued an unqualified opinion on the full financial statements
which will be distributed to shareholders and delivered to the Registrar of
Companies in due course. The financial information for 2003 does not comprise
statutory financial statements. Statutory financial statements for 2003, on
which the auditors gave an unqualified opinion, have been delivered to the
Registrar of Companies. Further copies of these preliminary results will be
available at the company's registered office:
Posted at 22/6/2004 11:40 by gateside
For Immediate Release 22 June 2004


fountains plc
('fountains' or 'the Company')

fountains to raise £5.5 million to accelerate growth



fountains, the AIM-quoted provider of a range of environmental services, is
pleased to announce that it is proposing to raise up to £5.5 million before
expenses through a non-underwritten placing for cash of up to 4.4 million new
fountains ordinary shares ('the Placing Shares') at 125 pence per share ('the
Placing Price') ('the Placing').



The Placing is conditional, inter alia, on the passing by shareholders of the
resolution to be proposed at an Extraordinary General Meeting to be held 20 July
2004. A circular, incorporating the Notice of EGM, is expected to be despatched
to shareholders today.



As announced 1 June 2004 in the Company's interim results for the six months
ended 31 March 2004, the Board of fountains has been focussed on developing the
scalability of the business and considers that the pace of the Company's
development could be accelerated by selective acquisitions of related
businesses. As also stated, the Board has identified several opportunities and
developed dialogue with a number of interested parties. Discussions are
continuing and Shareholders will be updated of any material developments.



The Board is of the opinion that an important factor in negotiating the price to
be paid by the Company on certain acquisitions is the Company's ability to react
quickly to opportunities that arise. The Directors therefore believe that now is
the appropriate time to further strengthen the Company's balance sheet by
raising new equity capital for the Company. This will allow the Company to take
full advantage of the acquisition opportunities that are under review and that
continue to present themselves to the Board.



The Board therefore proposes to raise up to £5.125 million (net of expenses and
assuming full subscription) by way of the Placing in order to part-finance some
selective acquisition opportunities referred to above. The Company may also be
required to issue further Ordinary Shares as part consideration within existing
authorities in relation to acquisition opportunities which are under review. The
Board also believes that the Placing will better position the Group to meet the
needs of current and future customers of the Group and will broaden the
Company's institutional shareholder base.



The Placing Shares, which (assuming full subscription) will represent up to
approximately 42.2 per cent. of the Company's issued share capital prior to the
Placing, are to be conditionally placed with both existing and new institutional
and other investors by the Company's broker, Collins Stewart. The Placing Price
represents a discount of approximately 5.3 per cent. to the closing middle
market price 21 June 2004.



The Placing Shares will be issued credited as fully paid, be identical to and
rank parri passu in all respects with the with the Company's existing Ordinary
Shares, including the rights to receive all dividends and other distributions
declared, made or paid on or after Admission, save for the interim dividend of
1.00 pence per share in respect of the six months ended 31 March 2004 declared 1
June 2004.



Application will be made for the Placing Shares to be admitted to the
Alternative Investment Market of the London Stock Exchange ('Admission'). In
order to protect the Company's VCT status, the Placing Shares are being issued
in two tranches, the First Placing Shares and the Second Placing Shares. The
Placing is also conditional on Admission, which is expected to become effective
in respect of the First Placing Shares 21 July 2004 and in respect of the Second
Placing Shares 26 July 2004. Following the Placing, the Company will have a
total of 14,825,969 Ordinary Shares in issue (assuming full subscription).



Announcing the news, fountains chairman, Barry Gamble, said:



'Early indications are that the placing will be oversubscribed with strong
support from existing and new institutions. The funds raised will enable the
Board to continue to grow fountains and further develop the scalability of the
business.'



Collins Stewart acted as Nominated Adviser and broker to fountains in respect of
the Placing. The Company was also advised by Pinsents, Birmingham, and
PricewaterhouseCoopers, Birmingham. Collins Stewart was advised by Charles
Russell, London.
Posted at 10/6/2004 06:39 by gateside
From the weekly AM Review

fountains - Still Gushing Merrily

fountains is a well established and mature United Kingdom company. The business had an excellent record, the good husbandry at the heart of its operations seemingly spreading to the treatment of its shareholders too. The global warming scare, the emphasis on conservation, and even the fashion for arboreal-worship seemed to be tailor-made for the creation of a benign commercial environment for the company's operations. There was a transaction with a large US company, Asplundh, which saw the latter take a stake in the company, a move which also encompassed a strategic alliance to extend the range of services to UK and Irish Utilities. But March 1999 interim figures that saw turnover expansion in the sphere of the aforesaid utility services and landscaping, and a £500,000 capital injection, signed off the good news, at least for a season.

To be fair to fountains, the company had always identified the fact that the price of timber made economically sensitive its harvesting and replanting operations. But a nasty July 1999 trading statement, which foretold of a £900,000 exceptional charge due to substantial expansion in this area without proper management control being exercised, damaged the company's rating severely. Nor did it improve its standing upon publication of the full 1999 accounts. Further and better particulars had revealed a whopping £2.6 million charge instead, a sum which palpably weakened the group, not only the share price. Analysis of the relevant activities revealed that a line-management attempt to keep up contribution levels from forestry in the light of falling margins, by raising turnover, had embroiled the company in financial guarantees and loss-making contractual commitments; and that getting out of these involved hefty legal and professional fees, to add to the misery.

But this merely got the management going, and the rise of utility and related services, from just over one-fifth of turnover in 1998, to nearly three-fifths by 2000 showed what the strategy was. Whilst keeping a flag firmly planted in the forestry and landscaping sectors, the company was now working for, for example, 9 out of the 13 regional electricity companies; and in this and other areas was building up its in-house expertise so as to broaden and deepen the level of service on tap. The contrast between the regularity of this type of work, and the disappointment which has been the lot of those engaged in the forestry business in the United Kingdom in recent years, was perhaps too obvious to need much emphasis.

The full year to September 2001 saw turnover down £2 million from the £35 million recorded the previous year. The effect of this was less marked at the gross profit stage, had vanished at the operating level, and by the time that the pre-tax stage was reached - courtesy of a £165,000 drop in interest costs - fountains had managed to post a 23% increase, a figure hardening into an adjusted earnings figure for the year, of 10.5p. The dividend was increased from 1.98p to 2.22p.

The Chairman said that the company had lost £4 million in sales due to the impact of the foot and mouth epidemic, and what caught the eye was the £1 million increase in operating cash-flow, a trend which eliminated borrowings by the year-end. Hell-bent on decreasing the volume of traditional low-margin activities, the year-end report talked too of an encouraging prospect pipeline, and an increasingly attractive long-term position too. So it was a bit disappointing to see that at the interim stage to March 2002, fountains' sales still fell from £17 million to £16 million.

Mitigating factors were the effect of foot-and-mouth disease on operations, a gross profit expansion from a superior business mix, and maintained earnings as a result.

The strength of the 2002 figures was that of a gross margin increase of 3%, equivalent to £1 million; the weakness, that that £1 million went in strengthening the management team, and that this choice, together with near-static turnover, robbed the company of any growth credentials for the third year running, the 10p earnings figure being virtually unchanged

And it was the same story the following year as near static sales to September 2004 generated plenty of cash - now £1.5 million - but static earnings too; but not so the dividend, up for the fourth time. A cautious but profitable return to forestry management (especially in US hardwoods) broadened the base a little, but with everything conspiring to highlight the company's position as the presumed partner of choice in the growing recognition of the threat of vegetation growth to the efficacy of transport and electricity distribution, what investors are waiting for is a surge in sales - and earnings.

But market optimism was done no harm at all by a confident February 2004 AGM statement, confirming that the year's good start was continuing. This week, this turned out to be a £1 million sales hike, which drew the interim pre-goodwill amortisation earnings per share up to 5p, and allowed a half-year payout of 1p. The Chairman hinted broadly of acquisition prospects too.
Posted at 14/5/2004 08:38 by gateside
Cambium... no offence taken ;-)

THE FOLLOWING IS THE BUY RECOMMENDATION FROM IC IN JANUARY

126p - aim: support services - fountains may just be a minnow on the Aim market, but it is the largest supplier of vegetation control services in the UK. And utility companies increasingly need its services - falling trees were partly to blame for the recent power cuts in the US and Italy. So Fountains is benefiting from outsourcing by major utilities and looks well-placed for further growth.

Its work spans the management of open spaces, streets, parks and highways for local authorities. Fountains is also involved in tree-surgery and hard/soft landscaping. But it's worth noting that landscaping is falling as a percentage of total sales, as Fountains scales back its efforts in this area. The US is a key market for Fountains, where it manages over 425,000 acres of naturally regenerating hardwood forests (a 60 per cent increase in two years).

Fountains has a UK network of 12 offices, enabling it to service over 50,000km of rail and electricity and distribution lines. Major customers include National Grid, Network Rail and Scottish Power. Utility services and grounds maintenance comprise almost 80 per cent of total sales, and contracts are typically for 2-4 years.

Although it's difficult to estimate the size of Fountains' total market, the utility sector is providing the greatest growth opportunity. Regulatory approval, together with 24-hour response times and specialist equipment, provide Fountains with an edge over the competition.

Indeed, to maintain its edge, it has extended its range of services over recent years. One addition is an emergency-response operation to cope with a surge in demand for out-of-hours work - call volumes doubled last year.

But Fountains' core services are electrical maintenance and surveys of railway tracks and power lines. It has responsibility for over 25,000 electrical substations and undertakes vegetation management on more than 1,000 miles of track. The company is confident that recent plans by Network Rail to take track maintenance in-house will not effect it unduly.

Fountains also has a strategic alliance with Asplundh, which is also a 5.6 per cent shareholder, and the world's largest vegetation management company. Asplundh has no operating activities in the UK, so tends to refer business to Fountains. It may even consider a bid for its UK partner.

In its own US operations, Fountains seen activity levels increase in recent years, with work stretching from Maine to Tennessee. US timber continues to be accepted as an alternative asset class, and quality hardwood has risen in value, generating interest from a number of European institutions.

Fountains' order book - unveiled for the first time - is valued at £70m and stretches out until 2007. The bidding pipeline is estimated at well over £10m. Recent contract wins include a three-year deal with Aquila, to provide vegetation management over 300km of a distribution network in the Midlands.

A tight focus on working capital has helped Fountains generate increasing cash inflows. Estimates point to a current-year net cash balance of £2m by September. The utilisation of past tax losses mean it is now paying a normal tax charge.

So-called 'green investors' may also be attracted to Fountains - last year it planted 750,000 new trees.

This is a solid business with a reasonable yield and is trading on 13 times current-year earnings, falling to 10 in 2005. With a strong order book and plenty of scope to win new contracts, the shares are attractive. Buy.
Posted at 16/1/2004 14:04 by artful dodger
ic tip explains the price action -nice of them to tip it on the verge of a breakout.

126p - aim: support services - fountains may just be a minnow on the Aim market, but it is the largest supplier of vegetation control services in the UK. And utility companies increasingly need its services - falling trees were partly to blame for the recent power cuts in the US and Italy. So Fountains is benefiting from outsourcing by major utilities and looks well-placed for further growth.

Its work spans the management of open spaces, streets, parks and highways for local authorities. Fountains is also involved in tree-surgery and hard/soft landscaping. But it's worth noting that landscaping is falling as a percentage of total sales, as Fountains scales back its efforts in this area. The US is a key market for Fountains, where it manages over 425,000 acres of naturally regenerating hardwood forests (a 60 per cent increase in two years).

Fountains has a UK network of 12 offices, enabling it to service over 50,000km of rail and electricity and distribution lines. Major customers include National Grid, Network Rail and Scottish Power. Utility services and grounds maintenance comprise almost 80 per cent of total sales, and contracts are typically for 2-4 years.

Although it's difficult to estimate the size of Fountains' total market, the utility sector is providing the greatest growth opportunity. Regulatory approval, together with 24-hour response times and specialist equipment, provide Fountains with an edge over the competition.

Indeed, to maintain its edge, it has extended its range of services over recent years. One addition is an emergency-response operation to cope with a surge in demand for out-of-hours work - call volumes doubled last year.

But Fountains' core services are electrical maintenance and surveys of railway tracks and power lines. It has responsibility for over 25,000 electrical substations and undertakes vegetation management on more than 1,000 miles of track. The company is confident that recent plans by Network Rail to take track maintenance in-house will not effect it unduly.

Fountains also has a strategic alliance with Asplundh, which is also a 5.6 per cent shareholder, and the world's largest vegetation management company. Asplundh has no operating activities in the UK, so tends to refer business to Fountains. It may even consider a bid for its UK partner.

In its own US operations, Fountains seen activity levels increase in recent years, with work stretching from Maine to Tennessee. US timber continues to be accepted as an alternative asset class, and quality hardwood has risen in value, generating interest from a number of European institutions.

Fountains' order book - unveiled for the first time - is valued at £70m and stretches out until 2007. The bidding pipeline is estimated at well over £10m. Recent contract wins include a three-year deal with Aquila, to provide vegetation management over 300km of a distribution network in the Midlands.

A tight focus on working capital has helped Fountains generate increasing cash inflows. Estimates point to a current-year net cash balance of £2m by September. The utilisation of past tax losses mean it is now paying a normal tax charge.

So-called 'green investors' may also be attracted to Fountains - last year it planted 750,000 new trees.

This is a solid business with a reasonable yield and is trading on 13 times current-year earnings, falling to 10 in 2005. With a strong order book and plenty of scope to win new contracts, the shares are attractive. Buy.

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