Final Results

 

TIDMHNN 
 
RNS Number : 3793Q 
Norman Hay PLC 
09 April 2009 
 

 
 
 
 
PRESS RELEASE 
FOR IMMEDIATE RELEASE 
9 APRIL 2009 
 
 
 
 
 
 
Norman Hay plc 
Preliminary Results for the year ended 31 December 2008 
 
 
 
 
Norman Hay plc today announces preliminary results for the year ended 31 
December 2008. 
 
 
FINANCIAL HIGHLIGHTS 
 
 
 
 
  *  Pre-tax profits increased to GBP2.4m (2007: GBP2.3m) 
 
  *  Turnover up to GBP27m (2007: GBP24m) 
 
  *  Final dividend for the year of 2.0p making the total for the full year 4.0p 
  (2007: 4.4p) 
 
 
 
 
 
CHAIRMAN'S STATEMENT 
 
 
I am pleased to announce that the Norman Hay Group achieved a pre-tax profit for 
2008 of GBP2.4m on a turnover of GBP27m. 
 
 
These results include foreign exchange gains and the sale of the BK freehold 
site, which we previously announced in April 2008. 
 
 
Our strong performance in the first half of the year slowed down significantly 
in the second half, as the effects of the global financial crisis impacted many 
of our customers from mid September onwards. 
 
 
Your Board is continuing to respond to the fast changing economic environment by 
ensuring that all efforts are targeted on our most significant sales 
opportunities whilst introducing further cost controls across the Group. 
 
 
Our position is strengthened in these difficult trading conditions by our focus 
on three very different markets worldwide, providing specialist chemical 
products for the Automotive, Construction and Oil & Gas industries. 
 
 
The strategic move into specialist chemical products has brought global sales 
opportunities - 
 especially in the Asia-Pacific region - reducing our 
exposure to the worsening business climate in the UK, particularly in the 
automotive sector. 
 
 
This diversification has brought balance to our global customer base and seen 
our international revenues increase to 48% of total Group sales. 
 
 
 
 
Dividends 
 
 
Your Directors recommend a final dividend for the year of 2.0p (2007: 2.6p) 
making the total for the full year 4.0p (2007: 4.4p), a small reduction in these 
difficult times. 
 
 
If approved at the Annual General Meeting to be held on 24 June 2009, the 
dividend will be paid on 31 July 2009 to shareholders on the register on 26 June 
2009. 
 
 
Business Overview 
 
 
The Group comprises three main chemical divisions: 
 
 
"Armourcote" - Surface Coatings 
 
 
In order to be able to offer the full range of Armourcote specialised coatings 
to our global Oil & Gas customer base, we have expanded Hi-Tech Coatings in 
Perth, Western Australia and opened a brand new facility in Port Klang, 
Malaysia. 
 
 
The integration of new processes into the existing business in Perth proved 
immediately profitable. 
The new start-up operation in Malaysia, which has made 
losses in the period to date, is expected to move into profit in the second half 
of 2009. 
 
 
There has been significant pressure on margins in our UK sub-contract surface 
coatings and treatment businesses. In order to mitigate the effects of this 
pressure, we acquired Advanced Surface Treatments Limited, another 
Coventry-based operation, and have centralised all zinc and alloy electroplating 
on to one site. 
 
 
 
 "Ultraseal" - Automotive Sealants 
 
 
2008 proved to be a strong year in terms of sales and profitability despite the 
well documented downturn of the global automotive sector in the last quarter of 
the year. 
 
 
Ultraseal International delivered and installed 25 new process plants during the 
year in Europe and Asia. Manufactured at their bases in the UK, India and China, 
these plants will further expand the global customer base for their consumable 
chemicals in the coming year. 
 
 
New and developing markets returned positive and real growth whilst the 
traditional territories also held up well. 
 
 
The ongoing international economic situation is naturally of concern and we have 
modified our short term objectives and focus to minimise the impact of this 
situation on what is a specialised and niche global business. 
 
 
 
 
"TAM International" - Construction Chemicals 
 
 
Sales from the TAM International Group grew strongly in the last 12 months as we 
continue to invest in its global infrastructure. 
 
 
TAM's new Tunnelling & Mining division has been formed to operate primarily in 
the Asia-Pacific region and is supported by our new Taiwanese operation, 
whichmanufactures the specialised construction chemicals and additives required 
for this important industry sector. 
 
 
The start-up costs of these new operations have impacted TAM's overall results 
and, whilst this will continue during the second quarter of 2009, we believe 
that these businesses will considerably benefit the future strength of the 
Group. 
 
 
 
 
"Norman Hay Engineering" - Chemical Engineering 
 
 
Our engineering business continues to perform well and profitably in its 
increasingly global market. 
 
 
Designing and manufacturing our own range of chemical process plants supports 
the three main chemical divisions of the Group. 
 
 
The bespoke systems include metal finishing plants, extraction, pollution 
control equipment, vacuum impregnation and non-destructive testing equipment. 
 
 
 
 
Staff 
 
 
On behalf of the Board and our shareholders, I would like to thank all of the 
Group's staff for their consistent hard work, loyalty and commitment to the 
Group. 
 
 
Working, as we do, in these challenging times I am confident that they will 
continue to deliver excellent service to our customers. 
 
 
We have, inevitably, had to lose some of our staff as we continuously scale 
our businesses in line with the changing operating and economic environment. 
 
 
That is not a decision easily taken and the necessity of it is regretted by us 
all. 
 
 
Outlook 
 
 
The turmoil in the financial markets is pushing many industrialised nations 
in to recession and it 
is difficult to evaluate exactly how this will impact 
our businesses in 2009. 
 
 
Despite being well structured to weather the storm, economic weakness in our 
main markets has significantly affected our trading in the first quarter of this 
year. 
 
Many Governments around the world are investing, or planning to invest, in 
major civil engineering and infrastructure projects as a way of combating the 
downturn. This will help to bolster the global construction industry and, in due 
course, our construction chemicals and engineering businesses should benefit. 
 
 
So far this year we have set up new operations in Indonesia and India to 
complement those set up in 2008 in Taiwan and Malaysia. Inevitably these new 
businesses put a strain on resources during their start up periods, but they 
will form part of the bedrock of our future growth when normal trading 
conditions return. 
 
 
In March 2009 we moved the TAM UK operation from Daventry to our Coventry site 
in order to optimise resources and pool its manufacturing facilities with those 
of Ultraseal International. 
 
 
In the same month Norman Hay Engineering secured a major GBP4m contract for an 
aerospace process facility to be installed in the Kingdom of Saudi Arabia. 
 
 
This, together with the measures that we have taken, and continue to take, to 
maximise efficiencies, minimise operating costs and refocus our markets will 
stand the Group in good stead to come through this current period of economic 
turmoil. 
 
 
We expect trading to improve in the second quarter as some of our customers will 
need to re-stock and this trend should continue into the second half of this 
year. 
 
 
 
 
 
 
Peter L Hay 
Chairman 
9 April 2009 
 
 
Further information: 
 
 
Vic BellantiTel: 024 7622 9373 
Norman Hay plc 
 
 
David Haggie/Juliet Tilley Tel: [phone] 
Haggie Financial 
 
 
Andrew Kitchingman 
Brewin Dolphin Investment Banking (Nomad)                     Tel: [phone] 
 
 
 
 
 
 
Notes to Editors 
 
 
About Norman Hay plc 
Norman Hay plc is a global provider of specialist chemicals & systems. Its 
operations are divided in to three primary divisions and brands: Armourcote 
(surface coatings), Ultraseal (automotive sealants) and TAM International 
(construction chemicals). It is listed on the Alternative Investment Market of 
the London Stock Exchange under the ticker symbol HNN. 
 
 
 
 
 
 
Unaudited consolidated income statement for the year ended 31 December 2008 
 
 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |       2008 |     |      |     2007 | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |     GBP000 |     |      |   GBP000 | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Revenue                             |          |     27,001 |     |      |   23,959 | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Cost of sales                       |          |   (17,175) |     |      | (15,327) | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Gross profit                        |          |      9,826 |     |      |    8,632 | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Distribution expenses               |          |    (1,036) |     |      |    (631) | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Administrative expenses             |          |    (6,857) |     |      |  (5,749) | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Other income                        |          |        497 |     |      |     143  | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Profit from operations              |          |      2,430 |     |      |    2,395 | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Finance income                      |          |        139 |     |      |      190 | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Finance costs                       |          |      (206) |     |      |    (243) | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Profit before taxation                         |      2,363 |     |      |    2,342 | 
+------------------------------------------------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Taxation                            |          |      (810) |     |      |    (672) | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Profit after taxation                          |      1,553 |     |      |    1,670 | 
+------------------------------------------------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Attributable to :                   |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Equity holders of the parent        |          |      1,562 |     |      |    1,637 | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Minority interest                   |          |        (9) |     |      |       33 | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |      1,553 |     |      |    1,670 | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Basic earnings per share            |          |      10.7p |     |      |    11.4p | 
+-------------------------------------+----------+------------+-----+------+----------+ 
|                                     |          |            |     |      |          | 
+-------------------------------------+----------+------------+-----+------+----------+ 
| Diluted earnings per share          |          |      10.4p |     |      |    10.9p | 
+-------------------------------------+----------+------------+-----+------+----------+ 
 
 
Unaudited consolidated balance sheet at 31 December 2008 
 
 
+--------------------------------------+-----------+----------+-----------+----------+ 
|                                      |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
|                                      |           |     2008 |           |     2007 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
|                                      |    GBP000 |   GBP000 |    GBP000 |   GBP000 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
|                                      |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Assets                               |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Non-current Assets                   |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Intangible Assets                    |     2,952 |          |     2,437 |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Property, plant and equipment        |     5,837 |          |     4,633 |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Investments                          |        26 |          |        26 |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Other receivables                    |         - |          |        72 |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Total non-current assets             |           |    8,815 |           |    7,168 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
|                                      |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Current Assets                       |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Inventories                          |     2,846 |          |     1,795 |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Trade and other receivables          |     7,206 |          |     6,774 |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Cash and cash equivalents            |     1,015 |          |       801 |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Assets held for sale                 |         - |          |       271 |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Total current assets                 |           |   11,067 |           |    9,641 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
|                                      |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
|                                      |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Total Assets                         |           |   19,882 |           |   16,809 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
|                                      |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Liabilities                          |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Current liabilities                  |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Other financial liabilities          |       512 |          |       659 |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Trade and other payables             |     4,380 |          |     3,870 |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Provisions                           |       114 |          |       142 |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Current tax liabilities              |       653 |          |       682 |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Total current liabilities            |           |    5,659 |           |    5,353 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
|                                      |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Non-current liabilities              |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Other financial liabilities          |     2,000 |          |     1,331 |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Trade and other payables             |        21 |          |         - |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Deferred tax liabilities             |       422 |          |       144 |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Total non-current liabilities        |           |    2,443 |           |    1,475 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
|                                      |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Total liabilities                    |           |    8,102 |           |    6,828 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
|                                      |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Net assets                           |           |   11,780 |           |    9,981 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
|                                      |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
|                                      |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Equity                               |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Share capital                        |           |    1,481 |           |    1,481 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Share premium account                |           |    1,254 |           |    1,254 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Capital redemption reserve           |           |       94 |           |       94 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Other non-distributable reserve      |           |      766 |           |      766 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Reserve for own shares               |           |    (322) |           |    (322) | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Share scheme reserve                 |           |       43 |           |       26 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Foreign exchange reserve             |           |      772 |           |       36 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Retained earnings                    |           |    7,372 |           |    6,475 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
 
 
 
 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Equity attributable to equity        |           |   11,460 |           |    9,810 | 
| holders of the parent company        |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Minority Interest                    |           |      320 |           |      171 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
| Total equity                         |           |   11,780 |           |    9,981 | 
+--------------------------------------+-----------+----------+-----------+----------+ 
|                                      |           |          |           |          | 
+--------------------------------------+-----------+----------+-----------+----------+ 
 
 
 
 
Unaudited consolidated cash flow statement for the year ended 31 December 2008 
 
 
+------------------------------------------------------------+----------+----------+ 
|                                                            |     2008 |     2007 | 
+------------------------------------------------------------+----------+----------+ 
| Cash flows from operating activities                       |   GBP000 |   GBP000 | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |          |          | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Profit from operations                                     |    2,430 |    2,395 | 
+------------------------------------------------------------+----------+----------+ 
| Release of negative goodwill                               |    (231) |        - | 
+------------------------------------------------------------+----------+----------+ 
| Impairment of intangibles                                  |        - |       15 | 
+------------------------------------------------------------+----------+----------+ 
| Depreciation                                               |      566 |      383 | 
+------------------------------------------------------------+----------+----------+ 
| (Profit)/loss on sale of property, plant and equipment     |    (378) |       38 | 
+------------------------------------------------------------+----------+----------+ 
| Share option charge                                        |       17 |       17 | 
+------------------------------------------------------------+----------+----------+ 
| Increase in inventories                                    |    (916) |    (515) | 
+------------------------------------------------------------+----------+----------+ 
| Decrease/(increase) in receivables                         |      148 |    (864) | 
+------------------------------------------------------------+----------+----------+ 
| (Decrease)/ increase in payables                           |     (14) |      167 | 
+------------------------------------------------------------+----------+----------+ 
| Exchange movements on working capital                      |      333 |        - | 
+------------------------------------------------------------+----------+----------+ 
| (Decrease)/increase in provisions                          |     (28) |       48 | 
+------------------------------------------------------------+----------+----------+ 
| Finance income                                             |      139 |      190 | 
+------------------------------------------------------------+----------+----------+ 
| Finance costs                                              |    (206) |    (243) | 
+------------------------------------------------------------+----------+----------+ 
| Tax paid                                                   |    (781) |    (414) | 
+------------------------------------------------------------+----------+----------+ 
| Net cash generated from operating activities               |   1,079  |   1,217  | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Cash flows from investing activities                       |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Acquisition of subsidiaries net of cash acquired           |    (210) |    (383) | 
+------------------------------------------------------------+----------+----------+ 
| Purchase of property, plant and equipment                  |  (1,030) |    (847) | 
+------------------------------------------------------------+----------+----------+ 
| Expenditure on intangibles                                 |        - |     (15) | 
+------------------------------------------------------------+----------+----------+ 
| Proceeds from disposal of property, plant and equipment    |     691  |       18 | 
+------------------------------------------------------------+----------+----------+ 
|        Net borrowing disposed of with                      |       -  |      134 | 
|        subsidiary undertaking                              |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Net cash used in investing activities                      |   (549)  |  (1,093) | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Cash flows from financing activities                       |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Dividends paid to shareholders                             |    (669) |    (554) | 
+------------------------------------------------------------+----------+----------+ 
| Net proceeds from issue of ordinary share capital          |        - |      112 | 
+------------------------------------------------------------+----------+----------+ 
| Payments for purchase of share capital in subsidiary       |     (26) |        - | 
+------------------------------------------------------------+----------+----------+ 
| Net proceeds from issue of share capital to minority       |      197 |        - | 
| shareholders                                               |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Purchase of long term incentive plan shares                |        - |    (322) | 
+------------------------------------------------------------+----------+----------+ 
| Finance lease repayment                                    |     (59) |     (31) | 
+------------------------------------------------------------+----------+----------+ 
| New loans raised                                           |      303 |      581 | 
+------------------------------------------------------------+----------+----------+ 
| Repayment of loans                                         |    (214) |    (546) | 
+------------------------------------------------------------+----------+----------+ 
 
 
 
 
 
 
+------------------------------------------------------------+----------+----------+ 
| Net cash used in financing activities                      |    (468) |    (760) | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Net increase/(decrease) in cash and cash equivalents       |       62 |    (770) | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Cash and cash equivalents at the beginning of the year     |      541 |    1,264 | 
+------------------------------------------------------------+----------+----------+ 
| Effects of foreign exchange rate changes                   |      224 |       47 | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Cash and cash equivalents at the end of the year           |      827 |      541 | 
+------------------------------------------------------------+----------+----------+ 
 
 
 
 
 
 
 
 
 
 
Unaudited consolidated statement of recognised income and expense 
 
 
+------------------------------------------------------------+----------+----------+ 
| for the year ended 31 December 2008                        |     2008 |     2007 | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |   GBP000 |   GBP000 | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Exchange differences on translation of foreign operations  |      723 |       75 | 
+------------------------------------------------------------+----------+----------+ 
| Deferred tax movements in respect of share option scheme   |        4 |      (4) | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Net income recognised directly in equity                   |      727 |       71 | 
+------------------------------------------------------------+----------+----------+ 
| Profit for the year                                        |    1,553 |    1,670 | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Total recognised income and expense for the year           |    2,280 |    1,741 | 
+------------------------------------------------------------+----------+----------+ 
 
 
+------------------------------------------------------------+----------+----------+ 
| Attributable to                                            |          |          | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Equity shareholders                                        |    2,302 |    1,708 | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |          |          | 
+------------------------------------------------------------+----------+----------+ 
| Minority interests                                         |     (22) |       33 | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |          |          | 
+------------------------------------------------------------+----------+----------+ 
|                                                            |    2,280 |    1,741 | 
+------------------------------------------------------------+----------+----------+ 
 
 
 
 
Notes: 
 
1. The calculation of basic earnings per share is based on the profit of 
GBP1,562,000 (2007: GBP1,637,000) and on 14,546,000 weighted average ordinary 
shares (2007 : 14,400,000) in issue. The calculation of diluted earnings per 
share is based on 15,053,000 (2007 : 15,069,000) shares in issue. 
 
2. The financial information set out above has been prepared in accordance 
with 
 the recognition and measurement principles of IFRS as endorsed for use 
in the European Union, using the accounting policies that were set out in the 
Group's Financial Statements for the year ended 31 December 2007. The Auditors 
have consented to the release of this preliminary statement. 
 
3. The financial information set out above does not constitute the Company's 
Statutory Financial Statements within the meaning of Section 240 of the 
Companies Act 1985. The 2008 figures are based on unaudited financial statements 
for the year ended 31 December 2008. The auditors do not expect to issue a 
qualified report on the Statutory Financial Statements which will be finalised 
on the basis of the financial information presented by the Directors in  the 
preliminary announcement and which will be delivered to the Registrar of 
Companies following the Company's Annual General Meeting. 
 
4. The comparatives for the full year ended 31 December 2007 are based on 
the 
 latest Statutory Financial Statements. They are not the Company's full 
Statutory Financial Statements for the year. A copy of the Statutory Financial 
Statements for that year has been delivered to the Registrar of Companies. The 
auditors' report on those financial statements was unqualified, did not include 
references to any matters which the auditors drew attention by way of emphasis 
without qualifying their report and did not contain a statement under section 
237(2)-(3) of the Companies Act 1985. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 FR KGGGDDRRGLZM