Field Systems Designs Holdings plc Half-year Report

 
TIDMFSD 
 
FIELD SYSTEMS DESIGNS HOLDINGS 
PLC 
 
INTERIM RESULTS 
 
The Board of Field Systems Designs Holdings plc (FSD), a specialist 
installation and engineering group providing mechanical and electrical design 
and installation services in the water, power, and waste industries, announces 
its interim results for the six months to 30 November 2022. 
 
OVERVIEW 
 
The results for the first six months of this financial year show significantly 
improved turnover and profitability compared to the prior period. 
 
The consolidated results for the six months to 30 November 2022 show group 
turnover of GBP6.7million; (2021 GBP2.6million) with a group profit after tax 
of GBP57,000; (2021 Loss GBP(1,270,000). 
 
COVID-19 had a serious impact on the release of work in the UK Water Industry 
over the two-year period to 31 May 2022. The unexpected fall in order intake 
and turnover due to the pandemic created an excess in labour resources which 
placed a cost-burden on the group with no productive output in return. Key 
personnel were retained in anticipation of workflows from the Water companies 
which never materialised. 
 
The Group sustained poor annual trading results to 31 May 2022, however this 
marked the turning point for the Group, and the tide began to turn during the 
first half of the new financial year with turnover more than doubling, and with 
a return to profit. 
 
The group still maintains a healthy balance sheet and the level of cash remains 
robust. 
 
COVID-19 
 
The global pandemic had a major impact on the release of work in the primary 
market of the group being the UK Water Process industry. 
 
The UK water utilities have asset management programmes (AMPs) governed by 
OFWAT which run in 5-year cycles where generally supplier frameworks are 
created to deliver their infrastructure and maintenance investment. FSD has 
established itself as a key supplier in the industry with membership of 
multiple frameworks and preferred supplier agreements. 
 
The last 5-year investment programme (AMP6) ended in April 2020, just as the 
virus hit the world's economies. Normally at this stage of the five-year cycle 
FSD would have experienced a marked step-up in investment, however concerns 
over COVID-19 caused UK Water Utilities to cease their new investment plans to 
preserve their cash resources and to protect the health of their staff, thereby 
ceasing engineering design work, and delaying the start of impending projects. 
 
The impact on FSD was that the next investment cycle (AMP7) was effectively 
delayed by two years. FSD suffered financially from the decision to retain its 
skilled resources, as despite receiving assurances regarding the success of our 
tender proposals, and having been given expectations for a heightened level of 
activity, our order intake and turnover fell. 
 
OUTLOOK 
 
There has been much recent negative media publicity regarding the performance 
of the Water Industry and their failure to maintain their infrastructure. 
 
The global Coronavirus crisis is now easing, and the pressure from government 
agencies to solve residual environmental problems is increasing, consequently 
water companies are starting to accelerate their expenditure under AMP7 for the 
remainder of the cycle until 2025. 
 
The positive public announcements from the main water utilities confirm that 
the proposed 2020-2025 budgets remain to be spent. The regulatory bodies will 
insist on this given that the infrastructure investment is desperately needed 
to keep our UK population watered and the environment clean. 
 
FSD expects to be a benefactor of this rapid growth and the Board look forward 
to better performance and trading results ahead. The expectation is for an 
improvement in the second half of the 2023 Financial Year, as order intake 
gains momentum, followed by a further increase in turnover for the May 2024 
Year-end, and thereafter, as normality returns. 
 
There are clear signs of new AMP7 projects finally being released; the order 
book has been filling since the New Year to pre-COVID levels and with secured 
orders of over £9 million the outlook is now positive. The trading conditions 
ahead look promising for FSD and having been nominated on frameworks and 
allocated a number of key projects the Group now prepares itself for a busy 
period of activity as it faces a steep incline in project awards. 
 
FSD has strengthened its management team by making new Board director 
appointments and has retained the majority of its experienced workforce so as 
to react swiftly as business volumes return. 
 
We acknowledge the current inflationary pressures in the UK economy and will 
continue to focus on maintaining margins from our operations, and mitigating 
increases in associated commodity and energy costs, as well as other challenges 
in our supply chain. 
 
N Billings 
 
Managing Director 
 
23 February 2023 
 
FIELD SYSTEMS DESIGNS HOLDINGS PLC 
 
 
UNAUDITED COMPREHENSIVE INCOME STATEMENT 
 
for the six months ended 30 November 2022 
 
                                                      2022           2021 
 
                                                     £'000          £'000 
 
TURNOVER                                             6,744          2,639 
 
Cost of sales                                      (6,222)        (3,672) 
 
                                                   _______        _______ 
 
GROSS PROFIT/(LOSS)                                    522        (1,033) 
 
Net operating expenses                               (484)          (491) 
 
                                                   _______        _______ 
 
OPERATING PROFIT/(LOSS)                                 38        (1,524) 
 
Interest receivable and similar income                   5              7 
 
Interest payable and similar charges                   (1)            (1) 
 
                                                   _______        _______ 
 
PROFIT/(LOSS) ON ORDINARY 
 
ACTIVITIES BEFORE TAXATION                              42        (1,518) 
 
Taxation                                              (15)            248 
 
                                                   _______        _______ 
 
PROFIT/(LOSS) ON ORDINARY 
 
ACTIVITIES AFTER TAXATION                               57        (1,270) 
 
                                                    ======         ====== 
 
Other comprehensive loss                                 -              - 
 
                                                   _______        _______ 
 
TOTAL COMPREHENSIVE SURPLUS/ 
 
(DEFICIT) FOR THE PERIOD                                57        (1,270) 
 
                                                    ======         ====== 
 
EARNINGS PER SHARE 
 
Basic                                                 1.0p        (23.5)p 
 
                                                    ======         ====== 
 
NOTES: 
 
1.         The directors of Field Systems Designs Holdings plc accept 
responsibility for this announcement. 
 
2.         This interim statement has neither been audited, nor reviewed by our 
auditors, Shipleys LLP. 
 
FIELD SYSTEMS DESIGNS HOLDINGS PLC 
 
UNAUDITED GROUP STATEMENT OF FINANCIAL POSITION 
 
As at 30 November 2022 
 
                                                        2022           2021 
 
                                                       £'000          £'000 
 
FIXED ASSETS 
 
Tangible assets                                          345            389 
 
CURRENT ASSETS 
 
Stock                                                     45            123 
 
Debtors                                                2,703          2,276 
 
Cash at bank and in hand                               3,151          3,709 
 
                                                    ________       ________ 
 
                                                       5,899          6,108 
 
                                                    ________       ________ 
 
CREDITORS 
 
Amounts falling due within one year                    4,345          4,083 
 
                                                    ________       ________ 
 
NET CURRENT ASSETS                                     1,554          2,025 
 
                                                    ________       ________ 
 
TOTAL ASSETS LESS CURRENT 
 
LIABILITIES                                            1,899          2,414 
 
CREDITORS 
 
Amounts falling due after more than one                   17              2 
year 
 
PROVISION FOR LIABILITIES 
 
Deferred tax                                               -             33 
 
Post-Employment Employee Benefits                          -              - 
 
                                                    ________       ________ 
 
NET ASSETS                                             1,882          2,379 
 
                                                     =======        ======= 
 
CAPITAL AND RESERVES 
 
Called up share capital                                  569            569 
 
Share premium account                                    159            159 
 
Reserves                                               1,154          1,651 
 
                                                    ________       ________ 
 
TOTAL SHAREHOLDERS' EQUITY                             1,882          2,379 
 
                                                     =======        ======= 
 
 
 
END 
 
 

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February 24, 2023 02:00 ET (07:00 GMT)