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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Ashcourt Rowan | LSE:ARP | London | Ordinary Share | GB00B6540P35 | ORD 20P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 346.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
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RNS No 3534f
AMCO CORPORATION PLC
19th March 1999
AMCO CORPORATION Plc
PRELIMINARY RESULTS FOR THE YEAR TO 31 DECEMBER 1998
CHAIRMAN'S STATEMENT
Introduction
Although turnover from continuing activities remained
constant at #150.7 million, profits before tax from
continuing activities were substantially reduced from #4.8
million in 1997 to #1.5 million in 1998.
The re-positioning of the Group continued during the year
with turnover in building operations increasing by 49% and
turnover in mining related activities falling by a further
35%. Mining related activities now constitute approximately
27% of the Group's turnover, a huge reduction from the 76%
dependence which the Group had as recently as 1992.
Profits were affected by substantial reorganisation costs in
the Dosco/Hollybank mining related activities, significant
losses in the mining contracting activities in the UK and
Zambia, and adverse trading conditions in the drilling and
ground engineering companies.
The building contracting companies had a very satisfactory
year but Group results will only return to an acceptable
level if the mining contracting activities can produce an
adequate return.
Financial Summary
The share buy-back of 9.3% of the issued share capital and
the low charge to corporation tax enhanced the earnings per
share for the year. The earnings per share for 1998 of 8.0
pence was 36% of the restated 1997 figure of 22.1 pence.
Net debt at 31 December 1998 represented 24.5% of net assets
(capital and reserves). This compares to an underlying net
debt of 7.7% at 31 December 1997. 9.9% of the increase in
gearing relates directly to the share buy-back.
Net assets at 31 December 1998 were #1.23 per share compared
with a share price at 18 March 1999 of #0.95 per share.
Dividend
An interim dividend of 2.5 pence per share was paid on 1
October 1998 (1997: 2.5 pence) and I am pleased to announce
that, despite the fall in profits, the directors recommend
that the final dividend payable on 1 July 1999 be held at
4.5 pence per share. Total dividends for 1998 would then be
7 pence per share (1997: 7 pence) to give a net yield on the
current share price of 7.37% or a gross yield of 8.55%. The
maintained dividend will be fully covered by earnings for
the year.
Operational Highlights
Tolent Construction experienced a much improved year with
turnover and profits substantially increased. Major
contracts commenced in 1998 included a major new office fit
out for Goldman Sachs in the City of London, a refurbishment
of Exchange Buildings on the quayside in Newcastle for a new
hotel complex, a new clubhouse for Sandal RUFC in Wakefield
and an Assisted Living Scheme in Kent.
Structural steelwork activities in Billington Structures and
Modern Engineering were buoyant and satisfactory results
were achieved. Billington recently completed steelwork for
the largest Tesco store in the UK, being part of a 3,000
tonne contract for Serpentine Green retail Park at
Peterborough. Modern Engineering received the premier
subcontractor award by Mansell for its steelwork for the
Lufthansa Cargo Centre at Heathrow Airport.
Dosco Overseas delivered a further two LH1300 roadheader
machines to China and supplied a pipe conveyor structure to
the Polaniek Power Station in Poland.
Amco Orebit commenced a 30,000 metre reverse circulation and
core drilling contract at Rosia Montana open pit gold mine
in Romania.
Employees
On behalf of the Board of Directors I would like to thank
our subsidiary company directors and all of the Group's
employees for their efforts in 1998.
Outlook for 1999
We anticipate a further improvement in the level of profits
in Tolent from both building and development activities. We
hope to at least maintain the levels of activity and profit
in the structural steel companies.
We anticipate an improved level of activity in the drilling
and ground engineering areas and in the mining contracting
activities in Zambia and elsewhere in Southern and Central
Africa.
There will be continuing difficult trading conditions in the
UK underground mining activities.
Overall we anticipate an improved result for 1999 as
compared with 1998.
We are seeking powers at the Annual General Meeting to
enable us to buy back further shares in the Company. This
should enhance earnings per share.
Stuart N Gordon, Chairman 18 March 1999
CHIEF EXECUTIVE'S REVIEW
Introduction
The Amco Group operates across the construction sector with
specialist companies providing services in building, civil
engineering, mining engineering, structural steelwork,
ground engineering, electrical systems, property development
and product and equipment manufacturing in both UK and
overseas markets. Many of our core activities are in niche
markets delivering quality and value for money solutions to
support the business activities of an increasing customer
base.
1998 was a contrasting year with some of our businesses
providing excellent results, whilst others, generally those
in our traditional markets, found difficulty in maintaining
sustainable and profitable opportunities. Our policy of
diversification, acquisition and expansion in recent years
foresaw certain of these difficulties and our result and
achievement in 1998 is a credit to the efforts made in all
sectors of our business.
Our policy of providing a flexible and responsive service to
meet the needs and goals of our customers and partners has
allowed us to reap the benefits of consistent repeat and
negotiated business opportunities with an ever growing and
satisfied customer base around the UK and abroad.
Our future strategy is to continue to grow our subsidiary
companies organically, supported by selective acquisitions
when opportunities arise in niche, sustainable and diverse
markets.
In 1999 we will increasingly invest in our property
development businesses and capitalise on current and
foreseeable opportunities in this area.
A programme of continuous improvement in Health and Safety
management is sought in all companies and rigorous training
initiatives are maintained for both our operatives and
staff.
The Quality Assurance programme of achieving accredited
certification to BS EN ISO 9000 for all companies within the
Group continues and it is anticipated that all operating
companies will have achieved certification by the end of the
year.
Emphasis on Environmental issues remains high within the
Group with our main focus being on the achievement of BS EN
ISO 14001, continued legislative compliance, continuous
environmental improvement and the integration of
environmental management into our existing management
systems.
The programme for the development and implementation of
environmental management systems for subsidiaries remains
ongoing with the first, Amalgamated Construction, due to
receive certification to BS EN ISO 14001 early this year.
Changes in technology and beneficial practices continue to
be identified, with Group companies being made aware of
those that can improve their environmental performance.
Our commitment to Training and Development continues with
staff development a priority to achieve the Group's long
term business objectives. In house training facilities and
programmes have been established and are already proving to
be a success.
Construction
Building on its core strengths and existing customer base
Tolent Construction produced a strong performance in the
year, capitalising on its experience in the industrial, fit
out and design build markets.
In 1998 turnover increased by 40% on 1997 with 65% of new
orders coming from existing clients and approximately 50% of
turnover now being in the design and build market.
The company has now expanded its geographic base into the
North West and in 1998 opened an office in Manchester to
support its expanding operations.
Another large fit out contract was carried out in the City
of London during the year for Goldman Sachs and work in hand
includes a landmark hotel refurbishment contract on the
Quayside in Newcastle, a #6.5 million Assisted Living Scheme
in Kent and a #6.2 million Multiplex Cinema in Bradford.
1999 started with an order book approximately double that at
the same time in 1998 and spread evenly across its three
operating regions.
Amalgamated Construction now operates in two divisions.
In 1998 the Mining Division experienced difficulties
operating profitably in the UK mining industry and sustained
significant losses. Arrangements are in hand to rationalise
and restructure the business.
The company is increasingly seeking opportunities overseas
to utilise its skilled resources and specialist equipment
and has recently been awarded a major development contract
at a nickel mine in Botswana.
The Civil Engineering Division is successfully diversifying
its clients and industry base and achieved a 100% increase
in turnover with a number of demanding contracts being
completed in the year. The company has now established
significant expertise in the design and construct market for
tunnel and shaft refurbishment for Railtrack. Opportunities
in 1999 will see the company make further developments in to
the power and water industries.
We are particularly pleased that the company was awarded the
Sword of Honour for safety in 1998 and is working towards
achieving Environmental Accreditation to BS EN ISO 14001 in
the early part of 1999.
Billington Structures had another successful year in 1998.
Following the recent investment in a factory extension and
an additional drill line, the company achieved a record
fabrication output in excess of 10,000 tonnes in the year
and in early 1999 weekly production has again broken factory
records.
The company has recently completed the steelwork for the
largest Tesco store in the UK, part of a 3,000 tonne
contract for the Serpentine Green retail park near
Peterborough and work has started on a 1,000 tonne cold
store, the largest single cell store in the UK.
The company has established significant expertise in the
expanding leisure market, completing contracts for David
Lloyd Leisure Centres in Nottingham, Hull and Warrington and
has good opportunities to capitalise on this experience in
1999.
Modern Engineering's continued pursuit of quality of product
and service to its customers again resulted in further
notable achievement in 1998 including a partnering agreement
with Simons Construction and the Premier Subcontractor award
by Mansell for its work on the Lufthansa Cargo Centre at
Heathrow.
Major clients in the year included Sainsbury, Tesco,
Butlins, Philips and Williams Grand Prix.
Investment in both the factory and new production plant is
programmed for 1999.
Amco Ground Engineering provides a wide range of drilling,
ground investigation, environmental and ground engineering
services to the construction, mining, quarrying and
reclamation industries throughout the UK.
A number of major contracts for the reclamation of
brownfield sites were successfully completed in 1998.
Amco Orebit provides a range of drilling services on a world
wide basis and in particular exploration drilling for the
mining and minerals industries.
It is currently undertaking a 30,000 metre reverse
circulation and core drilling contract at the Rosia Montana
open pit gold mine in Romania and other overseas
opportunities are being pursued in Africa and South America.
During 1999 Amco Ground Engineering and Amco Orebit will be
consolidated under the name Amco Drilling (International).
Amco Robertson Mineral Services was established during 1998
to provide consultancy and laboratory services specialising
in the independent assessment, inspection and testing of
metallic, industrial and energy mineral deposits.
The Group, through Amco Drilling (International) and Amco
Robertson Mineral Services, now has the ability to provide a
fully integrated world wide exploration, drilling and
laboratory evaluation service.
During the year the Group acquired a 50% holding in a mining
contracting company, Prosec Amco, operating in the copper
belt in Zambia. However, delays in the anticipated
privatisation of the Zambian Consolidated Copper Mines
reduced the potential workload for this company in 1998. It
is now expected that the privatisation will commence this
year creating a satisfactory level of work.
Property Development
The Group through its subsidiary company, Tolent
Developments, now has a number of excellent opportunities to
expand this area of its activities.
An office and leisure development near Swillington,
Yorkshire and adjacent to the new M1 extension, is receiving
considerable interest and will commence during the year.
Manufacturing
Amco Plastics has successfully diversified its product range
and is now an established manufacturer and supplier to the
tunnelling, mining, construction, extrusion and activity toy
markets.
A scaffold protection extrusion and a range of PVC stair
nosings and skirting extrusions were launched in 1998 and
new industrial developments for 1999 include a range of
ducting from 100mm to 200mm.
The company continues to supply ventilation ducting and
roadway support bags to the UK mining industry and a number
of major civil tunnelling contracts were supplied with
ventilation ducting in 1998.
In 1998 it consolidated its position as a preferred supplier
for PVC fabricated activity toys to the Early Learning
Centre and is now developing additional products to increase
its range and customer base.
Dosco Overseas Engineering was restructured in 1998 to
reduce costs and improve efficiency and opportunities and
prospects for the business in 1999 and beyond now look
encouraging.
The company has penetrated the Slovakian and Polish material
handling markets and supplied two roadheaders with
telescopic bolter booms to China. New markets targeted this
year include Iran (mining), Singapore (civil tunnelling),
and Hungary (material handling).
The company is also entering the crusher market with a
patented reinforced concrete recycling machine and a new
high powered LH1400 roadheader is to be launched.
The first of the sub-sea tracked diamond mining machines
built with Namco is now in operation in the South Atlantic
Ocean off the coast of Namibia and a second generation
machine is in research and development.
Hollybank Engineering continues to manufacture underground
steelwork for the UK mining industry, albeit at a much
reduced volume. Following a business rationalisation
programme in the year it has now re-stabilised its
operations.
The trade and certain assets of Fibaflo Reinforced Plastics
were sold during the year.
Specialist Services
The core business of Amco Engineering has changed
significantly over the past year and it is continuing to
focus its operations in new business areas, primarily in
niche markets in the facilities management and maintenance
environments.
The Systems Division has completed the first year of its
five year partnership contract with BAA for the development
and implementation of vehicle tagging systems at its seven
UK airports and has recently pre-qualified, in consortium,
to bid for the DETR electronic fee collection (road tolling)
demonstrator projects.
The Power and Control Division has recently been awarded a
four year electrical maintenance contract by PowerGen at
Ratcliffe on Soar Power Station and their second three year
term by National Power at Didcot "A" Power Station.
Amco Technical Services has now established its position
developing software products and undertaking IT projects and
consultancy to specialist markets and particularly in
respect of property management systems.
The company continued to sell its database products into the
Inward Investment market and has established its position as
a market leader with Regional Agencies and Local
Authorities.
New products continued to be developed throughout the year.
A property and enquiry management database product for
Commercial Property Agents was released mid-year and has
already established significant market presence and a
property management data collection tool has been developed
for NHS Estates.
The company is looking forward to sustainable organic growth
as its products and services gain further market
penetration.
Enquiries:
Amco Corporation Plc 01709 828218
Stuart Gordon, Chairman
Square Mile Communications 0171 583 4567
Kevin Smith
Amco Corporation Plc
Consolidated profit and loss account for the year ended 31
December 1998
1998 1997
(as re-stated)
#000 #000 #000 #000
Turnover
Continuing operations 150,992 148,554
Discontinued operations 959 2,536
151,951 151,090
-------- --------
(Decrease)/increase in work in progress (1,363) 564
Own work capitalised 1,066 1,035
-------- --------
151,654 152,689
Raw materials and consumables 41,408 49,023
Other external charges 58,954 40,256
-------- --------
(100,362) (89,279)
-------- --------
51,292 63,410
Staff costs 40,203 48,488
Depreciation 2,423 2,144
Other operating charges 7,334 8,780
-------- --------
(49,960) (59,412)
-------- --------
1,332 3,998
Other operating income 149 82
-------- --------
Operating profit/(loss)
Continuing operations 1,890 5,200
Discontinued operations (409) (1,120)
-------- --------
1,481 4,080
Share loss of associated undertaking
- continuing (202) -
Net interest (233) (436)
-------- --------
Profit on ordinary activities before
taxation 1,046 3,644
Taxation on profit on ordinary
activities (50) (790)
-------- --------
Profit on ordinary activities after
taxation 996 2,854
Dividends (836) (915)
-------- --------
Profit for the financial year
transferred to reserves 160 1,939
-------- --------
Earnings per share 8.0p 22.1p
-------- --------
The analysis of the 1997 profit and loss account has been restated to
reflect the transfer of the dividends received by the ESOP Trust
from other operating income to net dividends payable.
Amco Corporation Plc
Consolidated balance sheet at 31 December 1998
1998 1997
#000 #000 #000 #000
Fixed assets
Tangible assets 19,574 18,955
Investments 1,110 1,021
-------- --------
20,684 19,976
Current assets
Stock and work in progress 10,102 12,886
Amounts recoverable on contracts 7,192 6,223
Debtors 16,734 16,293
Cash at bank and in hand 4,410 11,013
-------- --------
38,438 46,415
Creditors: amounts falling due
within one year (38,720) (44,700)
-------- --------
Net current (liabilities)/assets (282) 1,715
-------- --------
Total assets less current
liabilities 20,402 21,691
Creditors: amounts falling due after
more than one year (4,257) (4,461)
Provisions for liabilities and
charges (278) (159)
-------- --------
(4,535) (4,620)
-------- --------
15,867 17,071
-------- --------
Capital and reserves
Called up share capital 1,293 1,425
Share premium 1,864 1,864
Capital redemption reserve 132 -
Capital reserve - 2,128
Profit and loss account 12,578 11,654
-------- --------
Shareholders' funds 15,867 17,071
-------- --------
Amco Corporation Plc
Consolidated cashflow statement for the year ended 31
December 1998
1998 1997
#000 #000 #000 #000
Net cash inflow from operating
activities 328 10,375
Returns on investments and servicing
of finance
Interest received 495 389
Interest paid (518) (673)
Finance lease interest paid (210) (152)
-------- --------
Net cash outflow from returns on
investments and servicing of finance (233) (436)
Taxation (580) (710)
Capital expenditure and financial
investment
Purchase of tangible fixed assets (2,098) (2,402)
Sale of tangible fixed assets 544 523
Purchase of shares in associated
undertaking (139) -
Employee Share Ownership plan
- purchase of shares (96) (220)
- disposal of shares 7 113
-------- --------
Net cash outflow from capital
expenditure and financial investment (1,782) (1,986)
Equity dividends paid (855) (844)
-------- --------
Net cashflow before financing (3,122) 6,399
Financing
Repurchase of ordinary share capital (1,404) -
Bank loans 213 (1,530)
Capital element of finance lease
rentals (1,375) (1,051)
-------- --------
Net cashflow from financing (2,566) (2,581)
-------- --------
(Decrease)/increase in cash (5,688) 3,818
-------- --------
END
FR SFDFAAUUUFED
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