Interim Results

RNS Number:1972Q
AMCO Corporation PLC
31 August 2000



AMCO CORPORATION PLC - CHAIRMAN'S STATEMENT

RESULTS                                                        

The  Company generated a small operating profit in the six months ended 30 June
2000,  which was a significant improvement on the comparable period 1999 and  on
the 1999 result as a whole.

Our structural steel operations were profitable and reduced losses were achieved
in  the  contracting activities. Losses were incurred in the  captive  insurance
company  due  to provisions for vibration white finger claims, in  the  property
development company and mining consulting due to start up costs, and in mining
contracting in Zambia.

DIVIDEND

Having regard to the results, we do not intend to pay an interim dividend.

LIQUIDITY AND CAPITAL RESOURCES

Gearing increased during the half year from 30% to 34% and has been affected
by a debt in  excess  of #1 million that has been outstanding for the whole of
the  period under review. This is covered by credit insurance and we hope the
matter will be resolved by the end of the year.

PROSPECTS

We  expect  a better result in the second half of the year, although we  do  not
expect  to  see  the  benefits from the essential start  up  costs  in  property
development and mining, consulting until 2001. The privatisation of  the  copper
mining  industry in Zambia was completed in the first half of 2000 and  we  hope
for  a  small benefit in the second half year with the main benefits  from  2001
onwards.

Stuart N. Gordon
30 August 2000
     
Consolidated profit and loss account
Six months ended 30th June 2000
(Unaudited)
                         Six months    Six months    Twelve months
                         to 30th June  to 30th June  to 31st December
                           2000          1999          1999
                          #000s         #000s         #000s
Turnover
 Continuing operations   38,947        30,991        64,688
 Discontinued operations      0        39,116        53,485
                         38,947        70,107       118,173
Operating profit/(loss)
 Continuing operations       42         (256)       (1,149)
 Discontinued operations      0         1,006         1,311
                             42           750           162
Share of loss of associated
 undertaking                  0         (110)         (149)
Loss on disposal of discontinued
 business                     0             0         (739)
Net interest payable      (146)         (235)         (316)

(Loss)/profit on ordinary activities
 before taxation          (104)           405       (1,042)
Taxation on (loss)/profit on
 ordinary activities         25         (125)         (248)
(Loss)/profit on ordinary activities
 after taxation            (79)           280       (1,290)
Minority interest            13             0            19
                           (66)           280       (1,271)
Dividends                     0             0       (3,561)
Retained (loss)/profit for 
  the period               (66)           280       (4,832)
Earnings per share        (0.6 p)        2.4 p      (11.1 p)

The financial information for the half year to 30th June 2000 and the
comparative figures for the half year to 30th June 1999 are unaudited and have
been prepared on the basis of the accounting policies set out in the statutory
accounts for the year ended 31st December 1999. This financial information does
not constitute statutory accounts as defined in Section 240 of the Companies Act
1985. The financial statements for the year ended 31st December 1999 have been
delivered to the Registrar of Companies.

     Consolidated balance sheet
     As at 30th June 2000
     (Unaudited)
                             30th June     30th June   31st December
                                2000          1999          1999
                               #000s         #000s         #000s
     Fixed assets
      Tangible assets          14,952        19,594        14,787
      Investments               1,094         1,105         1,094
                               16,046        20,699        15,881
     Current assets
      Stock and work in progress9,055         9,276         8,800
     Amounts recoverable on 
                contracts       2,191         8,369         1,710
     Debtors                   11,043        18,313         9,612
     Cash at bank and in hand   2,066         5,370         2,735
                               24,355        41,328        22,857
    Creditors: amounts falling
      due within one year     (22,841)      (41,809)      (21,037)
    Net current assets/
            (liabilities)       1,514          (481)        1,820
    Total assets less current
                   liabilities 17,560        20,218        17,701
    Creditors: amounts falling after
     more than one year        (1,464)       (3,866)       (1,539)
                               16,096        16,352        16,162
    Capital and reserves

     Called up share capital    1,293         1,293         1,293
     Share premium              1,864         1,864         1,864
     Capital redemption reserve   132           132           132
     Property revaluation reserve   0           205             0
     Profit and loss account   12,807        12,858        12,873
    Shareholders' funds        16,096        16,352        16,162


     Summary consolidated cashflow statement
     Six months ended 30th June 2000
     (Unaudited)
                                   Six months   Six months    Twelve months
                                   to 30th June to 30th June  to 31st December
                                        2000         1999          1999
                                       #000s        #000s         #000s

     Operating profit/(loss)              42          (256)        (1,149)
     Depreciation on tangible 
          fixed assets                 1,495         1,325          2,735
     (Profit)/loss on sale of 
           fixed assets                (112)             6            (88)
     Movement in working capital         40          2,335         (1,379)
   
     Net cashflow from operating 
            activities                1,465          3,410            119
     Net cashflow from returns on
     investments and servicing of 
              finance                  (146)          (235)          (316)
     Taxation                           190            (26)           170
     Net cashflow from capital 
     expenditure
     and financial investment          (797)          (555)          (490)
     Net cashflow on disposal of 
       subsidiary undertaking             0              0            906
     Equity dividends paid                0              0           (550)

     Net cashflow before financing      712          2,594           (161)
     Net cashflow from financing     (1,121)        (1,082)        (2,807)
     (Decrease)/Increase in cash       (409)         1,512         (2,968)

     Notes
     1. Reconciliation of net cashflow to movement in net debt
 
    (Decrease)/increase in cash in the 
                                period (409)         1,512         (2,968)
    Cash outflow on bank loans          357            442            824
    Tolent demerger                       0              0            693
    Cash outflow on finance leases      764            640          1,983
    Change in net debt resulting from
     cashflows                          712          2,594            532
    Inception of finance leases      (1,259)          (593)        (1,558)
    Movement in net debt in the period (547)         2,001         (1,026)
    Net debt at start of period      (4,907)        (3,881)        (3,881)

    Net debt at end of period        (5,454)        (1,880)        (4,907)

   

2. Analysis of net debt

Cash at bank and in hand              2,066          5,370         2,735
Bank overdrafts                      (4,435)        (1,250)       (4,694)
                                     (2,369)         4,120        (1,959)
Bank loans                             (532)        (3,563)         (889)
Finance leases                       (2,553)        (2,437)       (2,059)

Net debt                             (5,454)        (1,880)       (4,907)

3. Gearing                              34%             11%           30%

Interim results will be circulated to shareholders and copies of the
announcement will be available from the Company's registered office.