Final Results

RNS Number:8202W
Spring Grove Prop. Maintenance PLC
24 March 2004



SPRING GROVE PROPERTY MAINTENANCE PLC

Preliminary results for the year ended 31 January 2004



Spring Grove Property Maintenance Plc, the specialist provider of repair and
maintenance services to the social housing and retail sectors, today announces
its preliminary results for the year ended 31 January 2004.





Highlights



  * 19 per cent increase in turnover
  * Return to profitability in second half of year
  * Clark Ray appointed Finance Director
  * "Indy 100" award for third consecutive year



Chris Phillips, Chairman, commented as follows:



"I am pleased to report another year of revenue growth and, whilst disappointed
to be reporting a full year loss, a return to profitability in the second half
of the year was encouraging.



The continuing investment in infrastructure means that the Group has in place a
strong management team which is well equipped for profitable growthin the year
ahead."







Press Enquiries:

Kevin Childs and Andrew Milne, Spring Grove                  020 8326 1188

Alex Borrelli and Jonathan Nelson, Shore Capital             020 7408 4090







SPRING GROVE PROPERTY MAINTENANCE PLC

CHAIRMAN'S STATEMENT





I am pleased to report a further year of expansion for your Group with turnover
rising by 19 per cent to #12.8 million (2003: #10.8 million). The loss before
tax for the year of #23,950 (2003: profit #394,549) is disappointing but
represents a turnaround from the loss before tax sustained in the first half
year of #113,000.



As I have reported previously your Group suffered from the slow build up of work
levels from major contracts in the first half of the year. Additionally Robt.
Hawkins (Contractors) Limited ("Hawkins"), which was acquired in November 2002,
suffered from the loss of a major contract early in 2003, which accounted for
some 20 per cent of its turnover. It is a measure of theresilience of the
business that it has since more than recovered from this shortfall and Hawkins'
turnover is currently ahead of the level at the time of its acquisition.



I can also report that for the third year in succession Spring Grove hasbeen
recognised in the Deloitte Indy (Independent on Sunday) 100 Fastest Growing
Companies Awards. Only a handful of companies have achieved this distinction.



In January this year Clark Ray joined the Board as full-time Finance Director. I
would like to thank John Harrison for standing in as Finance Director during the
search for a suitable candidate.



Your Group has continued to improve the strength of its management team and
infrastructure and is well positioned for future profitable growth. New
contracts have been won recently with a combined gross value of #2.5million.



A difficult year is now behind us and the New Year has started well.  As a
result, we would expect your Group to return to an acceptable level of
profitability in the current year.







Chris Phillips

Chairman

24 March 2004





SPRING GROVE PROPERTY MAINTENANCE PLC

GROUP PROFIT AND LOSS ACCOUNT



For the year ended 31 January 2004
                                      Note                2004                        2003
                                                               #                           #

Turnover                                                       12,805,955                  10,792,813

Cost of sales                                                  (8,825,120)                 (7,612,722)

Gross profit                                                   3,980,835                   3,180,091

Net operating expenses              (3,828,218)                 (2,720,109)

Operating profit                                               152,617                     459,982

Interest receivable                                            -                 2,326
Interest payable and similar charges                           (176,567)                   (67,759)

(Loss)/profit on ordinary activities                           (23,950)                    394,549
before taxation

Tax on (loss)/profit on ordinary           2                   (17,469)                    (137,472)
activities

Retained (loss)/profit for the financial                       (41,419)                    257,077
year


(Loss)/earnings per share (pence) - basic3                   (0.33p)                     2.12p

(Loss)/earnings per share (pence) -        3                   (0.33p)                     2.04p
diluted





SPRING GROVE PROPERTY MAINTENANCE PLC

GROUP BALANCE SHEET



As at 31 January 2004



                                                 2004          2004          2003          2003
                                                 #             #             #             #
Fixed assets
Intangible assets           580,637                     611,467
Tangible assets                                                1,748,530                   1,421,441
                                                               2,329,167       2,032,908
Current assets
Stocks                                           2,066,638                   1,283,222
Debtors                                          3,387,186                   2,705,559
Cash at bank and in hand              12,142                      74,623
                                                 5,465,966                   4,063,404

Creditors: amounts falling due within one        (4,177,526)                 (2,500,274)
year

Net current assets1,288,440                   1,563,130

Total assets less current liabilities                          3,617,607                   3,596,038

Creditors: amounts falling due after more                      (306,900)                   (257,493)
than one year
                                                               3,310,707                   3,338,545
Provisions for liabilities and charges
Deferred taxation                                        (101,587)                   (88,006)
                                                               3,209,120                   3,250,539


Capital and reserves
Called up share capital                                        124,284           124,284
Share premium account                                          2,290,497                   2,290,497
Profit and loss account                                        794,339                     835,758
Shareholders' funds             3,209,120                   3,250,539





SPRING GROVE PROPERTY MAINTENANCE PLC

Group CASH FLOW STATEMENT

For the year ended 31 January 2004
                                           Note  2004          20042003          2003
                                                 #             #             #             #

Net cash inflow from operating activities  4                   350,127                     932,701

Returns on investments and servicing of
finance
Interest received                                -                           2,326
Interest paid                                    (135,356)                   (38,685)
Interest element of finance lease                (41,211)(29,074)
Net cash outflow from returns on                               (176,567)                   (65,433)
investments and servicing of finance

Taxation                                                       (101,756)          (94,810)

Capital expenditure and financial
investment
Purchase of tangible fixed assets                (308,568)                   (277,169)
Sale of tangible fixed assets                    8,652                       19,405
Net cash outflow from capital expenditure                      (299,916)                   (257,764)
and financial investment

Acquisitions and disposals
Professional fees capitalised in                 -                           (116,605)
investment
Purchase of subsidiary undertaking               -                           (705,558)
Net cash acquired with subsidiary                -                           89,608
Net cash outflow from acquisitions and                         -                       (732,555)
disposals

Cash outflow before financing                                  (228,112)                   (217,861)

Financing
Share premium on issue of equity share           -                           (11,275)
capital net of share issue costs
Increase in bank loans                           -                           12,177
Capital element of finance leases                (247,580)                   (117,996)
Net cash outflow from financing                                (247,580)                   (117,094)

Decrease in cash                           5,6                 (475,692)                   (334,955)




SPRING GROVE PROPERTY MAINTENANCE PLC

NOTES TO THE FINANCIAL STATEMENTS



For the year ended 31 January 2004



1.                   BASIS OF PREPARATION

The financial information set out in the announcement does not constitute the
statutory accounts for the years ended 31 January 2004 and 2003.  The financial
information for the year ended 31 January 2003 is derived from the statutory
accounts for that year, which have been delivered to the Registrar of Companies.
The auditors reported on those accounts; their report was unqualified and did
not contain a statement under section 237(2) or (3) Companies Act 1985.  The
statutory accounts for the year ended 31 January 2004 will be finalised on the
basis of the information presented by the directors in this preliminary
announcement and will be delivered to the Registrar of Companies following the
Company's annual general meeting.

2.                 Tax on (LOSS)/profit on ordinary activities

Analysis of charge in the year


                                                                              2004          2003
    #             #
Current tax:
UK corporation tax based on results for the period                            4,160         113,889
Adjustments in respect of previous periods     (272)         -
Total current tax                                                             3,888         113,889

Deferred tax:
Increase in deferred tax provision                                            13,581   23,583

Tax on (loss)/profit on ordinary activities                                   17,469        137,472




Factors affecting current tax charge

The tax assessed for the period is higher/lower than the standard rate of
corporation tax in the UK (30%).  The differences are explained below:
                                                                              2004          2003
                                                                              #             #

(Loss)/profit on ordinary activities before taxation                          (23,950)      394,549

(Loss)/profit on ordinary activities multiplied by the standard rate of       (7,185)       118,365
corporation tax in the UK (30% 2004 and 2003)
Effect of:
Expenses not deductible for tax                                               43,993        1,252
Capital allowances for the period in excess of depreciation                   (14,808)      (617)
Reduction re tax losses carried back         (2,808)       -
Reversal of corporation tax interest accrual                                  (6,149)       -
Effect of small companies rate/marginal relief                                (8,883)       (5,111)
Adjustments to tax in respect of prior periods                                (272)         -
Total current tax                                                             3,888         113,889









SPRING GROVE PROPERTY MAINTENANCE PLC

NOTESTO THE FINANCIAL STATEMENTS cONTINUED



For the year ended 31 January 2004



3.                EARNINGS PER SHARE
                                                                              2004          2003
                             #             #

(Loss)/earnings per ordinary share (pence) - basis                            (0.33p)       2.12p

(Loss)/earnings per ordinary share (pence) - diluted                          (0.33p)       2.04p


Basic earnings per share has been calculated based on the loss attributable to
the ordinary shareholders of #41,419 (2003: profit #257,077) divided by the
weighted average number of ordinary shares of 12,428,430 (2003: 12,113,965).



In 2003 the calculation of diluted earnings per share uses the weighted average
number of ordinary shares in issue adjusted by the effects of all dilutive
potential ordinary shares.  The weighted average number of shares in 2003 was
12,585,497.  In the current year the shares are anti-dilutive.



4.          RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW
            FROM OPERATING ACTIVITIES
                                                                              2004     2003
                                                                              #             #

Operating profit                                                              152,617       459,982
Depreciation                                393,207       255,920
Amortisation                                                                  30,830        5,138
Loss on disposal of fixed assets                                              579           3,340
Increase in stocks                                                            (783,416)     (100,959)
Increase in debtors                                                           (681,627)     (710,239)
Increase in creditors                        1,237,937     1,019,519
Net cash inflow from operating activities                                     350,127       932,701


5.          RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT


                 2004          2004          2003          2003
                                                 #             #             #             #

Decrease in cash in the period                                 (475,692)     (334,955)

Net cash inflow from bank                        -                           (12,177)
Cash outflow in respect of finance leases        247,580                     117,996
                                                     247,580                     105,819
Change in net debt resulting from cash                         (228,112)                   (229,136)
flow
New finance leases                                             (420,959)                   (244,512)

Change in net debt                                             (649,071)                   (473,648)

Net debt at 1 February 2003                                    (568,612)                   (94,964)

Net debt at 31 January 2004             (1,217,683)                 (568,612)



SPRING GROVE PROPERTY MAINTENANCE PLC

NOTES TO THE FINANCIAL STATEMENTS cONTINUED



For the year ended 31 January 2004



6.                ANALYSIS OF CHANGES IN NET DEBT


                                                 At 1 Feb 2003 Cash flows    Other changes At 31 Jan 2004
                                                 #             #             #             #

Cash at bank and in hand                      74,623        (62,481)      -             12,142
Overdrafts                                       (200,248)     (413,211)     -             (613,459)
Net cash                                         (125,625)     (475,692)     -             (601,317)

Finance leases                                   (442,987)     247,580       (420,959)     (616,366)

Net debt                                         (568,612)     (228,112)     (420,959)     (1,217,683)



7.                CALENDAR



The annual report and accounts will be mailed to the registered shareholders at
their registered addresses in April 2004 and, from the date of release, copies
will be made available at the Company's Registered Office, The Gate House, 2
Richmond Road, Old Isleworth, Middlesex TW7 7BL.








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