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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Bristol&Ldn | LSE:BTL | London | Ordinary Share | GB0033589663 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 14.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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0 | 0 | N/A | 0 |
RNS Number:6417A Bristol & London PLC 30 March 2006 FOR IMMEDIATE RELEASE TO ALL CITY EDITORS 30 March 2006 BRISTOL & LONDON PLC Preliminary Results for the Year Ended 31 January 2006 Sustained Sales Growth Anticipated Financial Highlights - Turnover increases 13% from #7.74 million in 2005 to #8.71 million in 2006 - Profit before tax increases 15% from #1.17 million in 2005 to #1.35 million in 2006 - Net debt reduced by #0.7 million to #9.5 million giving Bristol & London one of the lowest risk profiles in the sector - Recommended final dividend of 1.33p per share and represents an increase in the previously stated dividend policy from 66.67% to 75% of available profits Operations Highlights - New personal injury referral commission business up and running - Closer matching of car specifications to customers' expectations has enhanced profitability - Recent extraction of low margin business should yield further profitability improvements - Continued benefits from expansion in Scotland Bob Woods, Chairman of Bristol & London PLC, comments: "We have emerged from a period of restructuring as the leading premium credit hire company. The sales force is now structured to address corporate business and retail activities separately. Such a focus has driven sales and profitability. Our ability to understand the needs of these separate groups is the platform for expected sustained future sales and profit growth." For further information: PGA & Company Limited Peter Gaze - 0777 589 2544 / 020 7808 7676 Westhouse Securities LLP Richard Morrison - 020 7601 6100 CHAIRMAN'S STATEMENT Overview I am delighted to report that whilst the year to 31 January 2006 has continued to be challenging in what is a very competitive market place, turnover has increased by 13% from #7.74m to #8.71m with profit before tax increasing by 15% from #1.17m to #1.35m. In achieving these strong results we have introduced a new profit stream of personal injury referral commission and rationalised our overall business strategy. During the early part of 2005 we acknowledged that we were over-specifying on the purchase of our prestige vehicle hire fleet. The inability to reflect these higher than necessary specifications in our pricing, coupled with a highly competitive market place impacted upon our profitability. This has now been comprehensively addressed by reducing the purchase price of our fleet through better specification providing us with vehicles more in line with our customers' demands. We have also taken the initiative to remove an element of higher volume but very low margin sales from our business. The impact of these decisions has and will continue to be extremely positive although the full benefits will be more reflected in the coming year. Business levels in Scotland have also increased and earlier in the year we entered into an agreement with the Eastern Western Motor Group to provide their accident management programme. This group is Scotland's largest privately owned prestige dealer group with 25 outlets. To enable us to service the demand for credit hire in Scotland we expanded our presence there by recruiting a regional manager and support staff. Credit Hire Bristol & London continues to be the largest specialist prestige credit hire company in the UK and we will maintain this focus. Our research suggests that this sector is worth up to #500m per annum. I have already highlighted its competitive nature, but the market also remains relatively fragmented. We therefore perceive further opportunities to grow our business as we focus on the quality we provide our customers in combination with the continuing benefits expected to flow from improved fleet utilisation and better vehicle purchasing. Insurance Companies The substantial majority of Bristol & London's credit hire claims fall within independently negotiated protocol agreements. This has resulted in a continued reduction in debtor days, which have steadily improved throughout the year and as at 31 January 2006 stood at 150 days compared to 182 as at 31 January 2005. This has produced a fall in outstanding debt in spite of increased sales levels and, more encouragingly, a reduction in debt more than 12 months old which now represents just 14% of our overall debtor book. This has been a significant achievement during a year that has seen several of our competitors suffering an increasing number of debtor days and aged debt. Personal Injury Referral Commission We are now benefiting from this new revenue stream, which was introduced during the year. The commission comes from our own client base alone and will continue to grow in line with expanding business levels. Outlook During the year we have taken the necessary steps to both improve and increase the number of sales staff. In doing so we have also separated out major corporate business accounts from our core retail activities, enabling each part of the business to become more focused and effective. The results of these improvements have been extremely encouraging giving us not only a much better understanding of our customer needs but a platform from which to obtain sustained future growth. Dividend The board is recommending the payment of a final dividend of 1.15p per share to be paid on 2 May 2006 to shareholders on the register at the close of business on 18 April 2006. This represents an increase in the previously stated dividend policy from 66.67% to 75% of available profits. Such an increase has been due to our excellent relationships with insurance companies and our sector-leading ability to collect cash. 29 March 2006 Robert Woods Executive Chairman FINANCE DIRECTOR'S REVIEW Results Turnover for the year to 31 January 2006 amounted to #8.71m, representing a 13% increase over the previous year of #7.74m. Cost of sales for the year amounted to #4.21m compared to #3.89m in 2005 an increase of 8%. This reflects the fact that costs were well controlled in the period despite the effect of increased charges incurred on commission arrangements inherent in a more competitive environment. Administration costs for the year amounted to #2.46m compared with #2.06m in 2005. A significant element of this increase was the loss on vehicle disposals resulting from the rationalisation of the fleet during year. Profit before tax increased 15%, up from #1.17m in 2005 to #1.35m in 2006. Earnings per share for 2006 rose 6% to 3.6p per share from 3.4p per share in 2005. Dividends The recommended final dividend for the year is 1.15p per share and represents an increase in the previously stated dividend policy from 66.67% to 75% of available profits. Future dividends will consequently be covered one and a third times and in accordance with FRS 21 will be incorporated in the accounts when paid, rather than when proposed. Cash and Debt A reduction in debtor days has continued to be derived from improved cash collection processes with debtor days having reduced to 150 days at 31 January 2006 from 182 days at 31 January 2005. Net cash inflow from operations for the year was #4.49m compared to #4.18m in 2005. Net debt on all borrowings at 31 January 2006 stood at #9.48m, having reduced from #10.15m at 31 January 2005. Efficiency Efficiencies within the business are beginning to show significant improvement both through better cash collection procedures and the implementation of a fleet management software system enabling greatly improved management and control of the entire hire process from the initial referral to final receipt of payment. Interest rate risk The Company borrows in sterling at floating rates of interest. No interest rate caps or swaps are used to manage exposure to interest rate fluctuations. Liquidity risk The Company policy is to finance all new vehicle purchases by way of hire purchase contracts and the number of vehicles acquired by contract hire is now minimal. The Company does not "cross hire" vehicles on short term contracts from hire companies since this could damage the Company's reputation for quality. 29 March 2006 Lewis Ross Finance Director PROFIT AND LOSS ACCOUNT for the year ended 31 January 2006 2006 2005 Note # # Turnover 2 8,710,136 7,739,062 Cost of sales (4,211,247) (3,888,124) Gross profit 4,498,889 3,850,938 Administrative expenses 3 (2,465,298) (2,059,222) Operating profit 2,033,591 1,791,716 Other interest receivable and similar income 5,071 - Interest payable and similar charges 6 (690,612) (620,676) Profit on ordinary activities before taxation 3 1,348,050 1,171,040 Tax on profit on ordinary activities 7 (469,779) (356,703) Profit on ordinary activities after taxation 878,271 814,337 Earnings per share - basic 9 3.6p 3.4p - diluted 9 3.5p 3.3p All of the above amounts arose from continuing operations. There are no recognised gains or losses other than those noted in the profit & loss account. BALANCE SHEET at 31 January 2006 Note # 2006 # 2005 # (Restated see note8) # Fixed assets Tangible assets 10 9,669,085 9,324,636 Current assets Debtors 11 4,807,160 4,918,813 Cash at bank and in hand 14,166 11,879 4,821,326 4,930,692 Creditors: amounts falling due within one year 12 (3,820,719) (4,032,524) Net current assets 1,000,607 898,168 Total assets less current liabilities 10,669,692 10,222,804 Creditors: amounts falling due after more than one year 13 (7,529,738) (7,304,967) Provisions for liabilities and charges Deferred tax 16 (483,565) (486,391) Net assets 2,656,389 2,431,446 Capital and reserves Called up share capital 19 241,974 241,974 Share premium account 20 725,792 725,792 Profit and loss account 20 1,688,623 1,463,680 Equity shareholders' funds 2,656,389 2,431,446 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS for the year ended 31 January 2006 2006 2005 # (Restated see note8) # Profit for the financial period 878,271 814,337 Dividends (653,328) (793,673) Net addition to shareholders' funds 224,943 20,664 Opening shareholders' funds as previously stated 2,158,016 1,885,782 Adoption of FRS21 (note 8) 273,430 525,000 Opening shareholders' funds 2,431,446 2,410,782 Closing shareholders' funds 2,656,389 2,431,446 CASH FLOW STATEMENT for the year ended 31 January 2006 Note 2006 2005 # # Net cash inflow from operating activities 17 4,498,571 4,185,796 Returns on investments and servicing of finance 17 (685,541) (620,676) Taxation paid (79,630) (1,226,815) Capital revenue 17 2,655,276 1,043,088 Equity dividends paid (653,328) (793,673) Financing 17 (4,651,557) (4,437,655) Increase/(decrease) in cash in period 18 1,083,791 (1,849,935) RECONCILIATION OF NET CASH FLOWS TO MOVEMENTS IN NET DEBT for the year ended 31 January 2006 Note 2006 2005 # # Increase/(decrease) in cash in period 18 1,083,791 (1,849,935) Cashflow from decrease/(increase) in debt less finance lease repayments 18 4,651,557 4,437,655 New finance leases 18 (5,069,394) (4,419,675) Movement in net debt in year 665,954 (1,831,955) Net debt at start of year (10,155,953) (8,323,998) Net debt at end of year 18 (9,489,999) (10,155,953) NOTES TO THE ACCOUNTS (forming part of the financial statements) 1. Accounting policies The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements. Basis of preparation The financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention. After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. The financial statements have been prepared on the same basis as the prior year except that: - FRS 21, Events after the balance sheet, has been adopted in the year. The impact of this is discussed in note 8. - FRS 22, Earnings per share, has been adopted in the year but has had no significant impact as the Company does not disclose any adjusted EPS measures - Paragraphs 15-50 of FRS 25, Financial instruments - Disclosure and presentation, have been adopted in the year. As a result dividends have been disclosed as a movement in the reserves note rather than on the face of the Profit & Loss account - FRS 28, Corresponding amounts, has been adopted in the year but has had no impact on the financial statements Fixed assets and depreciation Depreciation is provided to write off the cost less the estimated residual value of tangible fixed assets by instalments over their estimated useful economic lives to the company as follows: Motor vehicles - 20% straight line Computers and software - 331/3% straight line Fixtures and fittings - 15% straight line Buildings - 2% straight line Debtors Trade debtors are discounted to the amount which, in the opinion of the directors, will be recovered from insurers. The discount estimates are regularly reviewed and as the business and industry matures they can be calculated to a greater degree of accuracy. Leasing and hire purchase commitments Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the balance sheet and are depreciated over their useful lives. The capital elements of future obligations under leases and hire purchase contracts are included as liabilities in the balance sheet. The interest elements of the rental obligations are charged in the profit and loss account over the periods of the leases and hire purchase contracts and represent a constant proportion of capital repayments outstanding. Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term. Deferred taxation Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, tax, with the following exceptions: * provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold; and * deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date. Value added tax In accordance with industry practice output value added tax is accrued until the settlement amount of invoices is known with certainty. Turnover Turnover represents the amounts invoiced (excluding value added tax) less estimated discounts on settlement for the provision of vehicle hires to third parties. 2. Turnover and profit on ordinary activities before taxation Turnover and profit are entirely derived from one class of business, namely the hire of vehicles within the United Kingdom. The results disclosed in the profit and loss account arose solely from continuing operations. 3. Profit on ordinary activities before taxation 2006 2005 # # Profit on ordinary activities before taxation is stated after charging Auditors' remuneration: Audit 27,500 26,250 Taxation 3,900 4,234 Depreciation of tangible fixed assets: Leased 1,751,474 1,271,253 Owned 101,374 100,814 Operating lease rentals: Property 70,152 45,278 Motor vehicles 185,510 470,724 Plant and machinery 57,815 54,062 Loss/(profit) on disposal of fixed assets 216,405 (43,436) 4. Remuneration of directors Directors' emoluments during the year were as follows: 2006 2005 # # Directors' emoluments as directors 256,332 261,197 Details of directors' emoluments are given in the remuneration report on page 8. 5. Staff numbers and costs The average number of persons employed by the company (including directors) during the period, analysed by category, was as follows: Number of employees 2006 2005 # # Sales 12 9 Administration 43 49 Fleet management 34 31 89 89 The aggregate payroll costs of these persons were as follows: 2006 2005 # # Wages and salaries 1,675,743 1,613,778 Social security costs 152,362 131,238 1,828,105 1,745,016 6. Interest payable and similar charges 2006 2005 # # Bank loans and overdrafts 138,803 194,347 Other loans - 28,222 Finance charges payable in respect of finance leases and hire purchase contracts 551,809 370,693 Interest on overdue tax - 27,414 690,612 620,676 7. Taxation 2006 2005 # # UK Corporation Tax: Current tax on income for the year 463,713 215,628 Adjustments in respect of prior year 8,892 (8,071) 472,605 207,557 Deferred tax: Origination and reversal of timing differences (20,518) 142,220 Adjustments in respect of prior year 17,692 6,926 (2,826) 149,146 469,779 356,703 2006 2005 # # Profit on ordinary activities before tax 1,348,050 1,171,040 2006 2005 # # Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 30% (2005: 30%) 404,415 351,312 Effects of: Expenses not deductible for tax purposes 38,780 23,220 Capital allowances in excess of depreciation 20,518 (142,220) Marginal Relief - (16,684) Other short term timing differences - - Adjustment to tax charge in respect of prior periods 8,892 (8,071) Current tax charge for the year 472,605 207,557 8. Dividends 2006 2005 # # Dividend on equity shares - final paid in respect of 2005 1.13p per 273,430 525,000 share (2004: 2.17) - interim paid in respect of 2006 1.57p per 379,898 268,673 share (2005: 1.11) 653,328 793,673 FRS21, Events After the Balance Sheet Date, requires that dividends should not be recognised in the accounts of the Company until such time as they have been formally declared, or in the case of interim dividends, paid. The proposed final dividend in respect of the year ended 31 January 2006 of 1.15p per share has accordingly not been recognised in the financial statements. The comparative Balance Sheet for the year ended 31 January 2005 has been restated in accordance with FRS21. The effect of this is to recognise the final dividend declared for 2005 in 2006 when it was approved by the shareholders. The impact of this is to reduce the creditors due within one year (note 12) by #273,430 at 31 January 2005, with the profit and loss reserve (note 20) being increased by the same amount at that date. 9. Earnings per ordinary share The calculation of basic earnings per share is based on earnings of #878,271 (2005: #814,337), and on 24,197,352 (2005: 24,197,352) ordinary shares, being the weighted average number of ordinary shares in issue during the year. The diluted earnings per share is based on earnings of #878,271 (2005: #814,337) and on 25,093,147 (2005: 24,904,514) ordinary shares, calculated as follows: 2006 2005 # # Basic weighted average number of shares 24,197,352 24,197,352 Dilutive potential ordinary shares Employee share options 895,795 707,162 25,903,147 24,904,514 10. Tangible fixed assets Motor Computers Other Freehold Total vehicles # # land and # # buildings # Cost Brought forward 8,287,600 154,869 127,597 2,383,238 10,953,304 Additions 5,632,660 38,959 5,805 21,671 5,699,095 Disposals (5,108,878) (605) - - (5,109,483) Carried forward 8,811,382 193,223 133,402 2,404,909 11,542,916 Depreciation Brought forward 1,458,910 100,780 27,392 41,586 1,628,668 Charge for year 1,751,474 39,419 19,531 42,424 1,852,848 Disposals (1,607,298) (387) - - (1,607,685) Carried forward 1,603,086 139,812 46,923 84,010 1,873,831 Net book value 7,208,296 53,411 86,479 2,320,899 9,669,085 At 31 January 2005 At 31 January 2004 6,828,690 54,089 100,205 2,341,652 9,324,636 All motor vehicles are held under finance leases or hire purchase contracts. No depreciation has been provided on freehold land. 11. Debtors 2006 2005 # # Trade debtors 3,916,395 4,189,840 Other debtors 215,350 23,189 Accrued income - hires in progress 378,099 515,350 Prepayments 228,395 84,530 Director's current account (see note 22) 68,921 7,390 Corporation Tax - 98,514 4,807,160 4,918,813 12. Creditors: amounts falling due within one year 2006 2005 # (Restated see note8) # Bank Overdraft 322,501 1,404,005 Current instalments due on bank loans (see note 14) 199,812 122,230 Obligations under finance leases and hire purchase contracts (see note 15) 1,452,114 1,336,630 Trade creditors 116,687 95,990 Other taxation and social security 868,514 671,417 Other creditors 74,573 68,611 Accruals and deferred income 492,057 333,641 Corporation tax 294,461 - 3,820,719 4,032,524 The bank overdraft of #1.25m in the form of a six monthly revolving facility is provided and is secured by a debenture over the company's assets together with a first legal charge over the freehold land and buildings. The overdraft attracts an interest charge of 1.5% above base rate. 13. Creditors: amounts falling due after more than one year 2006 2005 # # Bank loans 873,048 1,073,982 Obligations under finance leases and hire purchase contracts 6,656,690 6,230,985 7,529,738 7,304,967 14. Bank loans 2006 2005 # # Amounts falling due: in one year or less or on demand 199,812 122,230 in more than one year but not more than two years 199,812 130,648 in more than two years but not more than five years 599,436 448,338 in more than five years 73,800 494,996 1,072,860 1,196,212 Less: included in creditors: amounts falling due within one year (199,812) (122,230) 873,048 1,073,982 The bank loans are secured by a first legal charge over the company's freehold land and buildings. Interest charges are incurred on the loans at 2% above bank base rate. 15. bligations under leases and hire purchase contracts 2006 2005 # # Amounts payable: within one year 1,452,114 1,336,630 in two to five years 6,656,690 6,230,985 8,108,804 7,567,615 Annual commitments under non-cancellable operating leases are as follows: 2006 2005 Land and Other Land and Other buildings # buildings # # # Operating leases which expire: within one year -- 4,688 -- 13,014 in two to five years -- 48,112 -- 59,371 in more than five years 35,000 -- -- -- 35,000 52,800 -- 72,385 16. Deferred tax provision 2006 2005 # # Provision brought forward 486,391 337,245 Decrease/Increase in provision (see note 7) (2,826) 149,146 483,565 486,391 The provision for deferred taxation consists of the tax effect of all timing differences in respect of: 2006 2005 # # Excess of taxation allowances over depreciation on fixed assets 483,565 486,391 Other timing differences - - 483,565 486,391 There is no unprovided deferred tax in either year. 17. Notes to cash flow statement 2006 2005 # # (a) Reconciliation of operating profit to net cash flow from operating activities Operating profit 2,033,591 1,791,716 Depreciation charges 1,852,848 1,372,067 Decrease in debtors 13,139 1,167,510 Increase/(decrease) in creditors 382,172 (102,061) Loss/(profit) on disposal of fixed assets 216,821 (43,436) Net cash inflow from operating activities 4,498,571 4,185,796 (b) Returns on investments and servicing of finance Interest paid (138,803) (224,512) Interest element of finance lease and hire purchase rental payments. (551,809) (368,750) Interest on overdue tax - (27,414) Interest received 5,071 - Net cash outflow from returns on investments and servicing of finance (685,541) (620,676) (c) Capital expenditure Purchase of tangible fixed assets (629,701) (772,498) Proceeds from the sales of fixed assets 3,284,977 1,815,586 Net cash outflow from capital expenditure 2,655,276 1,043,088 (d) Financing (Repayment)/drawdown of invoice discounting facility - (1,867,656) Capital repayments of hire purchase and finance lease agreements (4,528,205) (2,411,451) Loan repayments (123,352) (158,548) Net cash outflow from financing (4,651,557) (4,437,655) 18. Analysis of net debt At Net New At beginning of cash finance end of year flows leases year # # # # Bank overdraft (1,392,126) 1,083,791 (308,335) Bank loans due less than 1 year (122,230) (77,582) (199,812) Bank loans due more than 1 year (1,073,982) 200,934 (873,048) Obligations under finance lease and hire purchase contracts (7,567,615) 4,528,205 (5,069,394) (8,108,804) Amounts due on invoice discounting facility - Cash outflow from decrease in debt and lease financing 4,651,557 (10,155,953) 5,735,348 (5,069,394) (9,489,999) 19. Called up share capital 2006 2005 # # Ordinary shares of 1 pence each Authorised: 30,000,000 (2004: 30,000,000) 300,000 300,000 Allotted, called up and fully paid: 24,197,352 (2004: 24,197,352) 241,974 241,974 20. Reserves Share Profit Total Reserves premium and loss # # account # As previously stated 725,792 1,190,250 2,158,016 Adoption of FRS21 - 273,430 273,430 2, After adoption of FRS21 725,792 1,463,680 2,431,446 Profit for the year - 878,271 878,271 Dividends paid in the year - (653,328) (653,328) 2, At end of year 725,792 1,688,623 2,656,389 21. Capital commitments Amounts contracted for but not provided in the financial statements amounted to #649,651 (2005: #936,607). 22. Related party disclosures Richard Abel holds 93.6% of the issued share capital of the company and as a result is the ultimate holding party. During the year Richard Abel has made available certain cars, which he owns privately, for use by the company in order to hire these cars to customers in the usual course of business. These cars are more exclusive than those carried in the company fleet. The cost to the company was #109,120 (2005: #18,620). The income generated on hiring the vehicles to customers was accounted for through the company. During the year the company entered into a 10 year lease on propertly owned by Richard Abel. Rent paid by the company under the lease during the year amounted to #35,000 (2005:#nil). Richard Abel purchasesd a car from the company during the year for #13,300. The company incurred a loss on sale on this transaction of #1,984. At 31 January 2006 Richard Abel owed the company #68,921 (2005: #7,390). The maximum amount owed to Richard Abel during the year was #54,204 (2005: #3,151) and the maximum amount owed to the company by Richard Abel during the year was #68,921 (2005: #8,296). Since the year end #46,000 has been repaid. No interest was charged on this account. This information is provided by RNS The company news service from the London Stock Exchange END FR SELEFUSMSEED
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