Interim Results

RNS Number:1496P
Chieftain Group PLC
29 August 2003

CHIEFTAIN GROUP PLC
INTERIM RESULTS STATEMENT
6 Months ended 30 June 2003

CHAIRMANS STATEMENT

As reported in my statement in the 2002 full year report and accounts the
depressed economic climate in the United Kingdom has discouraged clients
committing to significant capital projects.  Although these trading conditions
continue the Groups underlying trading has been both steady and profitable.
However the trading results have been adversely affected by the crystallisation
of a loss following the commercial settlement of a large contract which was
physically completed in early 2002.  This was reported on in some detail in our
trading up-date released on 7th July 2003.

Trading

The Group is maintaining a very healthy order book with a closing value of  #27
million at the half year.

Turnover during the first half was #4.8 million compared with #7.5 million in
first half 2002.  Settlement of the contract referred to above will require a
final invoice in the value of #1.9 million to be raised and this has been
deferred to the second half of 2003.  Additionally there will be significant
invoicing on another major contract which was completed in the first half of
2003 and is now awaiting final account settlement.

We report a first half pre-tax loss of #722,000 compared to a first half 2002
profit of #372,000.  This loss takes full account of the loss incurred on the
contract referred to in the first section of this report.

Cash

As has previously been reported there has been a heavy demand on our cash
resources to finance the work in progress in the past two years.  However we are
pleased to report that the cash position will be greatly improved following the
receipt of the #1.9 million from the major contract settlement and we anticipate
minimal use of our bank overdraft facility at the year end.

Unsecured loans totalling #600,000 were made by three founding Directors of the
Company, as referred to in my previous statement.  These loans were guaranteed
until the end of April 2004.  Each of these Directors has since indicated their
willingness to leave the loans in place beyond the end of April 2004 if the
funds are required by the Company to finance future work in progress.

Dividends

The Board have confidence in the future of the Company and its ability to
continue to trade profitably and has decided to pay an unchanged interim
dividend of 1.0p per ordinary share on the 24th October 2003 to the shareholders
on their register on the 12th September 2003.

Outlook

Due to recent demands on its cash resources the Company has been cautious with
regard to accepting new business. Now that the major contract settlement has
been achieved there will be an emphasis on winning new work to supplement the
order book taking the Company back onto the track of profitable expansion.


Profit and Loss Account
                                                                                                             
                                                                                    
                                                                       Unaudited      Unaudited       Audited
                                                                        6 Months       6 Months     12 Months
                                                                           ended          ended         ended
                                                                    30 June 2003   30 June 2002   31 Dec 2002
                                                                           #,000          #,000         #,000
            Turnover:                                                                                        
            Continuing Operations                                          4,823          7,548        14,778

            Operating (Loss)/Profit :                                                                        
            Continuing Operations                                          (663)            432           907

            Net Interest Payable                                            (59)           (60)         (133)

            (Loss)/Profit on ordinary activities before taxation           (722)            372           774

            Taxation                                                         217          (112)         (221)

            (Loss)/Profit on ordinary activities after taxation            (505)            260           553

            (Loss)/Earnings per share - basic                            (5.81)p          2.98p         6.35p
                                      - diluted                          (5.81)p          2.97p         6.33p

            Dividend per share                                              1.0p           1.0p          2.5p

            Statement of Total Recognised Gains and Losses                                                   

            (Loss)/Profit                                                  (505)            260           553

            Exchange rate adjustments offset in reserves                       -              -           159

            Total recognised (loss)/gain                                   (505)            260           712
                                                                                                
                        
Consolidated Balance Sheet                                              
                                                          Unaudited      Unaudited       Audited
                                                              as at          as at         as at
                                                       30 June 2003   30 June 2002   31 Dec 2002
                                                              #,000          #,000         #,000
            FIXED ASSETS                                                            
            Tangible assets                                     799            850           816

            CURRENT ASSETS                                                          
            Stocks and work in progress                       3,255          2,732         3,847
            Debtors                                           2,688          2,931         2,926
            Cash at bank and in hand                              5              -           213
                                                              5,948          5,663         6,986
            CREDITORS                                                               
            Amounts falling due                                                     
            within one year                                 (5,236)        (4,617)       (5,702)

            NET CURRENT ASSETS                                  712          1,046         1,284

            TOTAL ASSETS LESS                                                       
            CURRENT LIABILITIES                               1,511          1,896         2,100

            CREDITORS                                                               
            Amounts falling due                                                     
            after more than one year                           (64)          (176)          (61)
                                                              1,447          1,720         2,039

            CAPITAL AND RESERVES                                                    
            Called up share capital                             436            436           436
            Share premium account                               420            420           420
            Profit and loss account                             591            864         1,183
                                                              1,447          1,720         2,039

Consolidated Cash flow Statement

                                                                                                   
                                                             Unaudited      Unaudited       Audited
                                                              6 months       6 months     12 months
                                                                 ended          ended         ended
                                                          30 June 2003   30 June 2002   31 Dec 2002
                                                                 #,000          #,000         #,000
            NET CASH (OUTFLOW)/INFLOW FROM                                                
            OPERATING ACTIVITIES                                 (903)          (128)           659

            RETURNS ON INVESTMENTS                                                        
            AND SERVICING OF FINANCE                                                      
            Interest received                                        -              -             1
            Interest paid                                         (54)           (53)         (120)
            Interest element of finance                                                   
            lease rental payments                                  (5)            (7)          (14)
                                                                  (59)           (60)         (133)

            TAXATION                                                                      
            Corporation tax paid                                 (67)             (8)         (171)
            Corporation tax refund                                  -              10            10
                                                                 (67)               2         (161)

            CAPITAL EXPENDITURE                                                           
            Purchase of tangible fixed assets                    (24)             (2)          (24)
            Disposal of tangible fixed assets                       6               4            15
                                                                 (18)               2           (9)

            EQUITY DIVIDENDS PAID                               (131)           (131)         (218)
                                                              (1,178)           (315)           138

            FINANCING                                                                     
            Capital element of finance                                                    
            lease rental payments                                (58)            (72)         (139)
            Increase in loans                                       -               -           600
                                                                 (58)            (72)           461

            DECREASE IN CASH                                  (1,236)           (387)           599



Notes:



1. The interim dividend is payable on 24th October to those shareholders on the
Company's Register on 12 September 2003.



2. The total cost of the interim dividend is #87,130 (2002 - #87,130) based on
8,713,000 ordinary shares in issue (2002 - 8,713,000).



3. Basic earnings per share is based upon the loss/profit on ordinary activities
after taxation and 8,713,000 (2002  - 8,713,000) ordinary shares (the weighted
average number of shares in issue during the period).



4. Diluted earnings per share is based upon the loss/profit on ordinary
activities after taxation and 8,729,333 (2002  - 8,760,043) ordinary shares (the
weighted average number of shares in issue during the period plus the weighted
average number of dilutive options in issue during the period. Dilutive options
are the difference between the number of shares that would have been issued at
the option price and the number of shares that would have been issued at fair
value).



5. The results for the year to 31 December 2002 summarised above have been
extracted from the Company's full accounts for that year which received an
unqualified auditor's report and have been filed with the Registrar of
Companies.




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