![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Lateegra Gold Corp Com | TSXV:LRG | TSX Venture | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0 | - |
RNS Number:0306I Lorien PLC 27 February 2003 Thursday 27 February 2003 Lorien plc Preliminary results show growth in profits Lorien plc, the IT resourcing and specialist services group, today announces its preliminary results for the 52 weeks ended 30 November 2002. Key points (continuing operations) * Turnover down 13% to #111.7 million due to difficult market conditions * Operating profit down only 5% to #2.7 million, due to sharp focus on managing costs leading to administration expenses falling by 13% * Profit before tax up 12% to #2.4 million * Net debt reduced by over 50% to #4.3 million * Headroom on funding facilities of #6.8 million * Full settlement of #2.5 million received since the year end in respect of the disposal of our consulting operations Bert Morris, Executive Chairman of Lorien, commented: "This year has been a very difficult one in our markets but we have anticipated and responded in a timely and effective manner and delivered growth in profit before taxation for our continuing operations. "However, the current market downturn has been longer and deeper than any of us foreshadowed and there is a point where it is no longer possible to deliver enhanced returns year-on-year. Although the planned share buyback will improve the Group's capital structure and enhance earnings per share on a like-for-like operating profit, it will remain a challenge to maintain 2003 performance at the levels achieved in 2002. "Following receipt of the deferred consideration of #2.5m from the sale of our consulting operations, we now have over #9 million of available funding facilities and, I believe, are better placed than many of our competitors to deliver improved returns in the longer-term." For further information, please contact: Lorien plc Bert Morris, Executive Chairman 020 7282 2000 (until 12.30pm today) Christopher Hinton, Group Finance Director 0161 888 2503 (thereafter) Citigate Dewe Rogerson 020 7638 9571 Patrick Toyne Sewell Chairman's statement Overview During the year under review the slowdown in the technology sector and the increasing level of political and economic uncertainty have combined to create the most challenging business environment seen for over a decade. Although we cannot control these external factors, we can anticipate and respond to them in a timely and effective manner. In this respect, Lorien has fared better than most of its competitors, increasing profit before taxation on continuing operations by 12% to #2.4m. After accounting for the loss on disposal of our consulting operations (#7.5m), the Group reported an overall loss before taxation of #5.2m (2001: profit #2.0m). Financial Results The following results for the 52 weeks ended 30 November 2002, exclude the trading performance and loss on disposal of our Consulting operations and are compared to the 53 weeks to 30 November 2001: * Turnover down 13% to #111.7m * Operating profit down 5% to #2.7m * Profit before tax up 12% to #2.4m * Net assets up 12% at #10.0m * Net debt of #4.3m, a reduction of #4.4m * Headroom on funding facilities of #6.8m Trading Summary Resourcing During 2002, we have seen an unprecedented slowdown in the technology and financial services sector. In addition, trading conditions in almost every other sector have remained very difficult. In this environment, our clients have been cautious in their investment decisions except where there is certainty on the return on investment. This has resulted in a substantial decrease in the demand for our Resourcing services. To counter this decline we have continued to target new service offerings to both enhance margins and strengthen client relationships. We have had some successes in this area and have a strong pipeline of prospects. However, as with any new business, particularly in a difficult economic environment, there will be a delay before this investment generates significant levels of returns. At 30 November 2002, our order book was some 31% below the level at which we entered the year. This position deteriorated in December 2002 when we witnessed a further 11% decline. Although I have been pleased to see the position stabilise in the first two months of 2003, uncertainty continues with forward visibility restricted by short-term purchasing decisions. Inevitably, these conditions have had a negative impact on our financial performance with revenues and gross margin falling to #96.8m (2001: #114.8m) and #11.3m (2001: #14.4m) respectively. We have continued to manage actively our cost base to reflect the decreased volumes and returns and, as a consequence, the reduction in the division's contribution to group overheads was limited to 14%, from #5.7m in 2001 to #4.9m in 2002. Specialist Services The technology sector is not alone in seeing a sharp reduction in demand. Indeed, the length and depth of the downturn in the manufacturing sector has arguably been worse. Against this backdrop I am delighted to report that our engineering design business has delivered an outstanding performance, maintaining its contribution relative to 2001. In our market research and training businesses, we have combined the operations under a common brand: Lorien Customer Focus. The business has performed strongly and secured the renewal of key long-term contracts. Overall financial performance for the division has been positive with revenues and gross margin both increasing to #14.9m (2001: #14.3m) and #4.6m (2001: #3.7m) respectively. Contribution to group overheads increased to #3.2m (2001: #3.1m). The Board believes that the Specialist Services division will make an important contribution to the future of Lorien and a significant investment has been made in sales and marketing, aimed at widening its customer base. Administration expenses We have continued to maintain a sharp focus on managing costs with administration expenses falling by #4.5m or 24%. Of the decrease, #2.4m was the result of the disposal of our consulting operations in February 2002 with the remaining reduction spread across staff costs, depreciation, establishment and general administration. Loss on Disposal In the shareholder circular issued at the time of the disposal of our consulting operations, we estimated overhead savings following the sale of #1.0m. To date, we have achieved savings in excess of #0.5m with the balance dependent on the sub-letting of our Chertsey property. This property is currently being marketed. Following the year-end, we have received full settlement of the deferred consideration of #2.5m in respect of the disposal, this has further increased the Group's available funding. Personnel In what has been an extremely difficult year, I would like to express my sincere appreciation to the Group's staff and management for their loyalty and commitment. In 2002, we have generated an increased return to shareholders. Our staff should be very proud of this achievement. Dividend and Share Buyback The Board is not recommending a dividend for the year to 30 November 2002 (2001: nil). We do intend, however, to continue to repurchase the Company's shares in line with the resolution passed at the Annual General Meeting. We believe the more efficient capital structure that this process will create should enhance shareholder value whilst maintaining the strength of the Group's balance sheet. To retain flexibility in respect of both the share buyback and future dividend policy we will give consideration to a capital reconstruction to increase the level of distributable reserves. Any such reconstruction will require the approval of shareholders and will be conditional upon the court making an order to confirm it. Further details will be forwarded to shareholders as appropriate. Conclusion and Outlook The current market downturn has been longer and deeper than any of us foreshadowed. We have taken a range of measures to offset this but, in the face of such conditions, there is a point where it is no longer possible to deliver enhanced returns year-on-year. The share buyback will improve the Group's capital structure and enhance earnings per share on a like-for-like operating profit. That said, it will remain a challenge to maintain 2003 performance at the levels achieved in 2002. However, we now have over #9m of available funding facilities and, I believe, are better placed than many of our competitors to deliver improved returns in the longer-term Bert Morris Executive Chairman 27 February 2003 Consolidated profit and loss account for the 52 weeks ended 30 November 2002 52 weeks ended 30 November 2002 53 weeks ended 30 November 2001 (Restated)* Discontinued Discontinued Continuing operations Continuing operations operations (note 4) Total operations (note 4) Total Note #000 #000 #000 #000 #000 #000 Turnover 111,684 1,904 113,588 129,098 9,930 139,028 Cost of sales (95,764) (1,312) (97,076) (110,979) (6,969) (117,948) --------- --------- --------- --------- --------- --------- Gross profit 15,920 592 16,512 18,119 2,961 21,080 Administrative expenses (13,206) (669) (13,875) (15,255) (3,102) (18,357) --------- --------- --------- --------- --------- --------- Operating profit/(loss) 2,714 (77) 2,637 2,864 (141) 2,723 ====== ======= ======= ======== Loss on disposal of discontinued operations 4 (7,500) - --------- --------- (Loss)/profit on ordinary activities (4,863) 2,723 before interest and taxation Interest receivable 13 12 Interest payable and similar charges (328) (738) --------- --------- (Loss)/profit on ordinary activities before taxation (5,178) 1,997 Tax on (loss)/profit on ordinary activities 5 (701) (475) --------- --------- (Loss)/profit for the financial period (5,879) 1,522 Dividends paid and proposed - - --------- --------- (Loss)/profit retained for the financial period 11 (5,879) 1,522 ======= ======= Basic (loss)/earnings per ordinary share 6 (32.5)p 8.4p ======= ======= Diluted (loss)/earnings per ordinary share 6 (32.5)p 8.4p ======= ======= The Group made no acquisitions during the current or previous financial period. * The results, balance sheet, statement of total recognised gains and losses and movement in equity shareholders' funds for the 53 weeks ended 30 November 2001 have been restated as a result of the adoption of FRS19 'Deferred Tax'. Consolidated balance sheet as at 30 November 2002 Note 30 November 2002 30 November 2001 (Restated) #000 #000 #000 #000 Fixed assets Tangible fixed assets 1,051 1,404 Investment in own shares 416 431 Investment in associates 301 305 --------- --------- 1,768 2,140 Current assets Debtors 7 25,304 31,177 Creditors: amounts falling due within one year 8 (17,093) (24,418) ------------ ------------ Net current assets 8,211 6,759 ---------- --------- Net assets 9,979 8,899 ======= ====== Capital and reserves Called up share capital 4,756 4,906 Share premium account 29,300 29,300 Capital redemption reserve 150 - Profit and loss account (24,227) (25,307) ------------- ----------- Equity shareholders' funds 11 9,979 8,899 ======= ====== Consolidated cash flow statement for the 52 weeks ended 30 November 2002 52 weeks ended 53 weeks ended Note 30 November 2002 30 November 2001 #000 #000 Cash inflow from operating activities 9 5,693 4,079 Dividends received from associate 4 8 Returns on investment and servicing of finance (315) (726) Taxation (801) - Capital expenditure (345) (466) Acquisitions and disposals 612 167 --------- --------- Cash inflow before financing 4,848 3,062 ---------- --------- Financing Repurchase of shares (453) - Reduction in debt 10 (4,555) (2,877) ---------- --------- Cash outflow from financing (5,008) (2,877) ---------- --------- (Decrease)/increase in cash in the financial period 10 (160) 185 ====== ====== Consolidated statement of total recognised gains and losses for the 52 weeks ended 30 November 2002 52 weeks ended 53 weeks ended 30 November 2002 30 November 2001 (Restated) #000 #000 (Loss)/profit retained for the financial period (5,879) 1,522 ---------- --------- Total recognised (losses)/gains relating to the period (5,879) 1,522 Prior period adjustment (see note 2) 405 - --------- --------- Total gains and losses recognised since the last annual report (5,474) 1,522 ====== ===== Notes 1 Basis of preparation The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards and the Companies Act 1985. The financial information set out above does not constitute the Group's financial statements for the 52 week period ended 30 November 2002 or the 53 week period ended 30 November 2001. The financial statements for 2001 have been delivered to the Registrar of Companies, and those for 2002 will be delivered following the Group's annual general meeting. The auditors have reported on those accounts; their reports were unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985. 2. Prior period adjustment The policy for calculating deferred tax has been changed during the period in order to comply with FRS 19 which requires full provisioning on all timing differences. In prior periods, the policy adopted was one of partial provisioning. The comparative figures in the financial statements have been restated to reflect the new policy as set out below: 53 weeks ended 30 November 2001 #000 Profit and loss account Deferred tax credit 50 ---------- Increase in profit for the period 50 ====== Balance sheet Debtors 405 ----------- Increase in net assets 405 ======= 3. Segmental analysis There are three separate classes of business, Resourcing, Specialist Services and Consulting. 52 weeks 53 weeks ended 30 ended 30 November November 2002 2001 #000 #000 Turnover Resourcing 96,802 114,795 Specialist Services 14,882 14,303 Consulting - discontinued operations 1,904 9,930 ----------- ----------- 113,588 139,028 ====== ======= Contribution to central costs Resourcing 4,876 5,741 Specialist Services 3,202 3,060 Consulting - discontinued operations 288 1,069 ---------- ----------- 8,366 9,870 Central costs (5,729) (7,147) ---------- ----------- Operating profit 2,637 2,723 Loss on disposal of discontinued operations (7,500) - Net interest payable and similar charges (315) (726) ---------- ----------- (Loss)/profit on ordinary activities before taxation (5,178) 1,997 ====== ====== Central costs represent property charges, IT infrastructure costs, finance function costs, human resources costs, legal and professional fees and indirect staff costs. 4. Loss on disposal of discontinued operations On 12 February 2002 the Group completed the disposal of its consulting division. The results of the consulting division have been classified as discontinued operations during the current and previous period. The disposal provides for the receipt of proceeds of #4.5m in consideration for the trade and certain assets of the consulting division. The loss of #7.5m has been recognised after associated costs and the write back of goodwill of #6.9m previously written off to reserves. #2.0m of the consideration was received in cash on completion and a further #2.5m was received in February 2003. 5. Taxation 52 weeks 53 weeks ended 30 ended 30 November November 2002 2001 (Restated) #000 #000 UK corporation tax at 30% (2001:30%) 815 674 Prior year adjustment - UK 131 (232) - Overseas - 83 Deferred tax (245) (50) --------- --------- 701 475 ====== ======= 6. (Loss)/earnings per share The FRS 14 (loss)/earnings per share calculations are based on the loss on ordinary activities after taxation of #5,879,000 (2001: restated profit of #1,522,000) and on the weighted average number of 18,086,539 ordinary shares in issue and ranking for dividend payments during the period (2001: 18,182,004 ordinary shares). The 1,381,238 (2001: 1,442,000) shares held by the Employee Benefit Trusts at 30 November 2002 do not rank for dividend payments and have therefore been excluded from the calculation. 52 weeks ended 53 weeks ended 30 November 2002 30 November 2001 (Restated) Loss Per share Earnings Per share #000 p #000 p (Loss)/earnings per share (5,879) (32.5) 1,522 8.4 ====== ======= ======= ======= The diluted (loss)/earnings per share calculations take into account the dilutive effect of share options. The calculations of diluted (loss)/earnings per share are based on 18,086,539 (2001: 18,182,004) ordinary shares. 7. Debtors 2002 2001 (Restated) #000 #000 Trade debtors 21,317 29,758 Other debtors and prepayments 3,337 1,014 Deferred tax 650 405 ---------- --------- 25,304 31,177 ====== ======= All debtors are due within one year with the exception of deferred tax which is due after more than one year. 9. Creditors: amounts falling due within one year 2002 2001 #000 #000 Bank overdrafts (see below) 258 98 Payments on account 808 1,115 Trade creditors 6,024 8,313 Invoice discounting advances 4,003 8,558 Corporation tax 388 268 Other taxes and social security 1,384 1,857 Accruals and deferred income 4,228 4,209 ----------- ----------- 17,093 24,418 ====== ====== The Company is party to a cross guarantee in respect of the bank overdrafts of subsidiary undertakings. At 30 November 2002 the total overdrafts of the subsidiary companies amounted to #258,000 (2001: #98,000). The amounts due to invoice discounters are secured on certain trade debtors of the Group. 9. Reconciliation of operating profit to operating cash flows 2002 2001 #000 #000 Group operating profit 2,637 2,723 Long term incentive plan charge 519 - Depreciation charge 557 1,019 Loss on disposal of tangible fixed assets - 350 Decrease/(increase) in debtors 5,970 (1,798) (Decrease)/increase in creditors (3,990) 1,785 ---------- ----------- Net cash inflow from operating activities 5,693 4,079 ====== ====== 10. Analysis of net debt At 30 At 30 November 2001 Cash flow November 2002 #000 #000 #000 Overdrafts (98) (160) (258) Debt due within one year - invoice discounting advances (8,558) 4,555 (4,003) ---------- --------- ----------- Total (8,656) 4,395 (4,261) ====== ====== ====== 11. Reconciliation of movements in equity shareholders' funds 2002 2001 (Restated) #000 #000 (Loss)/profit retained for the financial period (5,879) 1,522 Write back of goodwill previously eliminated against reserves (note 4) 6,893 - Charge to profit and loss reserve arising on repurchase of own shares (453) - Long term incentive plan charge 519 - -------- --------- Net addition to shareholders' funds 1,080 1,522 Opening shareholders' funds (originally #8,494,000 before adding prior year adjustment of #405,000) 8,899 7,377 ---------- ---------- Closing shareholders' funds 9,979 8,899 ======= ======== This information is provided by RNS The company news service from the London Stock Exchange END FR SEMFMMSDSEIE
1 Year Lateegra Gold Corp Com Chart |
1 Month Lateegra Gold Corp Com Chart |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions