Fountains Share Discussion Threads

[gateside] 26/11/2004 09:08

Below is the new summary (which came out earlier in the week) from Armshare about FNT

In November the company reported on the year to September. Sales at £36 million were almost identical with those of the year before, but ignoring a trifling sum in respect of goodwill amortisation, the operating profit of £1.5 million was up by more than £100,000. Add a similar sum from the switch from paying interest to earning it, and the company was able to crank up the adjusted earnings per share to the anticipated 10.3p from the previous year's 9.5p. So 2004 is the fifth year in a row now that fountains has failed to achieve any real earnings growth. There is £7 million in total in the bank now, about one-third of the market capitalisation. The report told of two aborted transactions, either of which would have had the effect of transforming the scale of operations, information which at once suggests the need for finding another gear, but the difficulty too of doing so.

Research Standing

Whirring sweetly enough, but needs a larger power unit now.

[gateside] 26/11/2004 09:07

My first thought was that they might have of been tipped as a SELL... but can't find any mention of Fountains

[one for the money] 26/11/2004 09:02

Might be the $ exchange rate worries

[gateside] 26/11/2004 08:34

What an earth is going on this morning?

[tday] 26/11/2004 08:30

Down this morning. Wonder why.

[artful dodger] 23/11/2004 20:26

LONDON (AFX) - fountains PLC year to September 30 2004
Sales - 36.09 mln stg vs 35.6 mln
Pretax profit before goodwill - 1.58 mln stg vs 1.34 mln
Pretax profit - 1.44 mln stg vs 1.20 mln
EPS before goodwill - 10.29 pence vs 9.53
EPS - 9.07 pence vs 8.20
Final div - 2.10 pence
Total div - 3.10 pence vs 2.77

[gateside] 23/11/2004 07:53

Fountains still on acquisition trail
From the FT

Fountains, the land manager that keeps trees and shrubs under control for railway and utility companies, is still looking for acquisitions following the failure to secure two after raising £5.1m through a placing at 125p a share in June.

In the year to September turnover increased from £35.6m to £36.1m. Pre-tax profits rose from £1.2m to £1.4m, helped by £73,000 of interest received on the placing funds.

Earnings per share rose from 8.2p to 9.07p. The final dividend of 2.1p lifts the total to 3.1p (2.77p). The shares dipped 1½p to 155p.

[gateside] 22/11/2004 10:42

LONDON (AFX) - fountains PLC year to September 30 2004
Sales - 36.09 mln stg vs 35.6 mln
Pretax profit before goodwill - 1.58 mln stg vs 1.34 mln
Pretax profit - 1.44 mln stg vs 1.20 mln
EPS before goodwill - 10.29 pence vs 9.53
EPS - 9.07 pence vs 8.20
Final div - 2.10 pence
Total div - 3.10 pence vs 2.77

[gateside] 22/11/2004 08:22

I feel that the long term growth story is still intact and I shall continue to hold.

Good luck all ;-)

[one for the money] 22/11/2004 08:16

Not bad at all (on first sight)

Some will sell on results, but probably only to create a buying opportunity.

Cheers
1-4

[gateside] 22/11/2004 07:54

Preliminary Results

'Financial strength to raise our growth rate'

fountains plc the leading provider of a range of environmental services in the
United Kingdom, Ireland and the USA today announces its preliminary results for
the year ended 30 September 2004.

Key Points

* Profit before tax up 20% to #1,440,000 (2003: #1,202,000)

* Turnover up to #36.1 million (2003: #35.6 million)

* Operating cashflow #2.6 million (2003: #2.0 million) - no net
borrowings

* Earnings per share increased by 11% to 9.07 pence (2003: 8.20 pence)

* Final dividend of 2.10 pence, total dividend for the year up 12% to
3.10 pence (2003: 2.77 pence).

* Successful net fundraising of #5.1 million, three times
oversubscribed, for acquisitions.
Net cash now #7.2 million.

* Forest management base increased in the USA through the acquisition of
Les Ott & Associates for US$ 225.000

Barry Gamble, Chairman, commented:

"This has been another year of progress, we now have the track record,
management capability and balance sheet strength to raise our growth rate. I am
confident we can continue to build our reputation for delivery to customers and
shareholders alike."

High resolution images are available for the media to view and download free of
charge from www.vismedia.co.uk"

Contacts:
Barry Gamble, Chairman Tel: [phone]
Doug Eadie, Finance Director
fountains plc www.fountainsplc.com

Tim Thompson / Tom Carroll Tel: [phone]
Buchanan Communications



Chairman's Statement/Operating Review

RESULTS

I am pleased to report on a year of further strong progress.

Profit and Cash

Profit before tax of #1,440,000 (2003: #1,202,000) has increased by 20%.
Although overall sales growth has been modest with turnover of #36.1 million
against #35.6 million for 2003 our focus on profitability has been maintained
with operating margin up to 4.2% (2003:3.8%). This has been achieved with
significantly lower working capital.

Operating cash flow at #2.6 million (2003: #2.0 million) has again been strong
and the business has no net borrowings for the fourth year running. As at 30
September 2004 net cash was #7.2 million (2003: #1.6 million). We have achieved
an underlying increase in net cash of #236,000; excluding the effect of the
equity fundraising. This is after significantly increased capital expenditure
of #1.8 million (2003: #0.8 million).

Profit after tax is up by 22% to #1,016,000 (2003: #836,000). Earnings per
ordinary share are 9.1 pence (2003: 8.2 pence) an increase of 11%, again double
digit earnings growth. Earnings per share before goodwill are 10.3 pence (2003:
9.5 pence).

Dividend

We continue to place strong emphasis on cash generation as a measure of business
performance. We also recognise the contribution dividends make to total
shareholder returns. In this, our fifth year of good progress in profit and
cash generation, we have again raised our dividend to shareholders.

We are therefore recommending a final dividend of 2.1 pence per share for
approval by the shareholders at the Annual General Meeting, Thursday 17 February
2005.

With the interim dividend payment of 1.0 pence per share this makes a total
dividend for the year of 3.1 pence per share ( 2003: 2.77 pence) a rise of 12%;
the same level of increase as for the last two years.

OPERATIONS

Our current service offering plays a part in maintaining power supplies,
ensuring trains and highways operate safely, amenity land enjoyment and forest
asset maximisation. We are continuing to develop our services for managing and
maintaining dispersed remotely located assets.

Turnover excluding forestry increased by 5%. This relatively low sales growth
reflects tighter bid processes and the absence of some under performing
contracts closed or renegotiated in 2003. We continue to be selective in the
terms on which we undertake work so that our profitability targets are not
compromised.

We are now organising the business by customer facing divisions. These comprise
Rail, Utilities, Maintenance and Forestry. This continues our commitment to
ensure safe and measured service delivery. In this respect we are continuing
with significant investment in safety, compliance and commercial controls.

RAIL

We have seen good demand for our off track services and have covered over 1,000
route miles on the rail network undertaking survey and vegetation clearance
work.

This work is directed to reducing the amount of track affected by leaf fall and
improving line and signal visibility. This includes taking track possession at
weekends and overnight, requiring detailed planning and preparation so that our
operational work can be smoothly executed. Assembling men, machines and
equipment capable of completing the work within alloted time spans requires
precise co-ordination, adequate contingency planning and good communication.

In order to improve our mobilisation we have developed a number of new
approaches for recruiting field staff and are supporting this initiative with
more dedicated training.

In addition to vegetation management and large scale tree surgery we also
undertake other off track work including fencing. We have recently been awarded
a significant tranche of this work on the Scottish Rail network.

UTILITIES

Following actions instigated in 2003, our exposure to this fragmented market has
reduced this year. Nonetheless we have vegetation management, surveying and
tree cutting operations on just under 20,000km of transmission and distribution
lines.

The interface between electrical networks and vegetation growth can be
problematic. While the physical infrastructure is engineered and largely
predictable, the natural phenomena of weather systems and the impact on plant
growth are more difficult to determine. As a result, electrical utilities are
re-assessing the specifications for this work. For our part we are continuing
to innovate with better data management, the use of specialist equipment such as
chippers, mobile elevated platforms and better monitoring of work productivity.

The Department of Trade and Industry are expected shortly to publish a further
report on the risks inherent in vegetation on electrical networks. We plan to
participate in an industry wide response and expect programmes to be increased
in scale and scope as a result.

MAINTENANCE

Grounds Maintenance

Our positioning in this sector has been maintained in a competitive market.
Existing contracts have performed well and we have achieved a high level of
contract extensions and renewals. This encompasses a range of services
including the maintenance of play areas, airfields, sports facilities, parks and
other open spaces. We also provide specialist maintenance of railway stations
for train operating companies. This includes graffiti removal and litter
picking.

Our operational teams take responsibility for managing all aspects of grass
cutting, flower beds, borders, hedges, sports facilities and street scene.

Highways

We have developed our capability to include work on highways. We have covered
7,000 km during the grass cutting season with machines working up to 18 hours
per day. As well as grass cutting and weed control we take responsibility for
maintaining roadside trees.

We are increasingly using global positioning and geographic information systems
to better scope the work required and monitor operations. We now have the
capability to link digital photographs and maps to improve communication with
our customers.

Substations

As well as our work for electrical utilities in controlling vegetation, we have
undertaken the maintenance of 50,000 substations. This principally comprises
grass cutting, weed control, fencing and basic security. This capability can be
extended to all major utility organisations such as oil, gas, water and telecom
sites.

Landscaping

Profitable turnover has increased from activities carefully targeted on more
specialist applications where we are able to deliver added value to customers.
Work during the year has included a major soft landscaping project at the new
Scottish Parliament in Edinburgh. The design required the establishment of
grass areas on lightweight structures to conceal roof areas and blend in with
natural ground features. This followed a substantial landscaping project at the
new Falkirk stadium earlier in the year.

FORESTRY

United States of America

Sales for the period are down on last year since comparable figures for 2003
included one off billings of long term incentive fees. Nonetheless this
business has made further substantial progress during the year. The management
base has increased to almost 600,000 acres, half of which is under forest
certification. We have new operations in Pennslyvannia, Kentucky and Ohio. As
well as our core service offering of forest management, we undertake consulting
and broking work. Through this broader service capability we are continuing to
strengthen our relationships with a number of leading US based timber investment
management organisations.

United Kingdom

UK Forestry sales are significantly down on last year. This has arisen from
lower activity as long term owners continue to take a cautious investment view
as a result of continuing poor timber prices. Our smaller scale one off
contracts have also been very price competitive. New timber market development
could have a strong impact on the demand for Sitka Spruce and underpin forest
values.

STRATEGY

During the year we successfully raised #5.1 million by the issue of shares to
new institutional investors. This fundraising was well supported, being almost
three times oversubscribed. We did this having identified some specific
acquisition targets and having started negotiation processes.

Since the fundraising we had offers accepted on two businesses, either of which
would have transformed the scale of our operations. Our due diligence for one
of these acquisitions caused us to significantly lower our offer; the target was
subsequently withdrawn from the market. For the other the vendors terminated
negotiations.

We continue to identify other suitable acquisition opportunities but will only
proceed provided we are satisfied that a transaction would enhance shareholder
value.

We have taken an opportunity to increase our forest management base in the
United States through the acquisition of Les Ott and Associates for a total cash
consideration of up to $225,000.

SAFETY, ENVIRONMENT AND QUALITY

We continue to recognise that operating safely and to the highest environmental
standards are core values. This year we achieved a 19% reduction in lost time
injuries. We are continuing to improve our safety performance with a goal of
zero accidents. We have achieved the international environmental standard
ISO14001.

Our strategic alliance partner, Asplundh, continues to operate to world class
standards in undertaking vegetation management work for utilities in North
America and Australasia. Some of our managers recently attended the Manager
Excellence programme at their headquarters in Philadelphia, USA. This included
sessions on the DuPont safety culture process which we are also following. We
have introduced the Chairman's Safety Award which seeks to give recognition to
good safety practice.

COMMUNICATIONS

We recognise the vital role that communications play within the business and
externally.

We were pleased to have been nominated for the investor communications award at
the 2004 AIM awards dinner. The nomination cited a well developed investor
communication programme, an excellent corporate magazine and user friendly
website.

ORDER BOOK

This now stands at #55 million (2003: #70 million). Some of our customers have
changed their procurement programmes which has put back some expected order
renewals. One customer suspended a significant volume of work, which was being
called off under a framework agreement. We are currently rebidding for this
work.

The long term forward visibility inherent in our business model remains with a
number of customers inviting bid proposals in respect of significantly higher
volumes of work. Our current year order book is strong with over 70% of our
anticipated turnover for this financial year already secured.

STAFF

I would like to take this opportunity to thank my board colleagues and our
dedicated and able staff all of whom have worked so hard to continue to make
fountains a success.

Staff take responsibility for their work and many demonstrate leadership in
their approach. We seek to involve in defining a clear direction for the
business. We want them to inspire confidence and trust in each other and to
earn the respect of our customers.

I want in particular to mention the skill and dedication of our field teams.
This has been recognised again this year. As well as maintaining our position
on the winners podium at the national Arboriculture Association tree climbing
competition, our teams were also placed third and fourth. None of this is
achieved without commitment from the teams themselves, our very able in-house
skills trainers and the support of line managers.

ANNUAL GENERAL MEETING

Shareholders may wish to note that we have decided to alternate the Annual
General Meeting between London and Banbury in future. The 2005 AGM will be held
in London for the first time.

OUTLOOK

This has been a year of further progress. We now have the track record,
management capability and balance sheet strength to raise our growth rate. I am
confident we can continue to build our reputation for delivery to customers and
shareholders alike.

B T Gamble
Chairman

22 November 2004


Financial Review

Profits and interest

The group operating profit increased by 11.8% to #1,367,000 (2003: #1,223,000).
This figure is stated after goodwill amortisation of #137,000 (2003: #136,000).

Operating margins before goodwill amortisation increased to 4.2% (2003: 3.8%).
Contract margins showed a substantial improvement, although this was offset by
the costs associated with the management structure that has been put in place
to manage and maintain our growth aspirations. Net interest income of #73,000
was received in the year, compared to a net interest charge of #21,000 in 2003.
Profit before tax increased by 19.8% to #1,440,000 (2003: #1,202,000).

Taxation

The overall tax charge of 29.4% (2003: 30.4%) was broadly in line with the
statutory rate of 30%. The group's accounting policy in respect of deferred
taxation remains prudent, with an unrecognised deferred tax asset at 30
September 2004 of #190,000 (2003: #265,000).

Earnings per share

Earnings per share were 9.07 pence (2003: 8.20 pence). Earnings per share
before goodwill were 10.29 pence (2003: 9.53 pence). The increase in basic
earnings per share of 10.6% is lower than the increase in profit before tax due
to the expanded share capital after the fundraising in July 2004.

Dividend

A final dividend is proposed of 2.10 pence per share which, together with the
interim dividend of 1.00 pence per share, gives a total for the year of 3.10
pence per share - an increase of 12% on the previous year. The total cost of
the dividend to ordinary shareholders for the year is #414,000 (2003: #284,000).
The dividend per share is covered 2.9 times by earnings. The dividend policy
takes account of current and likely future earnings.

The final dividend will be marked ex dividend 2 February 2005 and paid 25
February 2005 to shareholders on the register 4 February 2005 the record date.

Balance sheet and cashflow

#5.1 million of cash has been raised through the issue of new share capital.
This significantly strengthened the group's balance sheet by increasing net cash
to #7.2 million (2003: #1.6 million) and net assets to #12.2 million (2003: #6.4
million).

This fundraising did not prevent a continuing focus on working capital
management, as evidenced by an operating cash inflow of #2,626,000 (2003:
#1,998,000). This represents 192% of operating profit (2003: 163%) and enabled
a net cash inflow of #236,000 to be generated, excluding the impact of the
fundraising. This net cash inflow is after funding an increase of #1 million in
net capital expenditure. Increased capital expenditure arose from the purchase
of chippers that had previously been procured on short term hire arrangements.
We also purchased a new accounting system, which went live in July 2004. This
is expected to significantly enhance management reporting.

Accounting standards

There were no new accounting standards which required adoption in this year,
although the transitional disclosure provisions of FRS17 in respect of pensions
continue to be applied.

During the year, the net deficit arising on an FRS17 basis on the group's
defined benefit pension scheme increased to #806,000 (2003: #767,000) on a total
asset value of #2,479,000 (2003: #2,862,000). This defined benefit scheme has
been closed to new members since April 2000 and was changed to a career average
rather than a final salary basis from January 2004.

Increased pension contributions of #108,000 per annum commenced in January 2004
under plans to eliminate the funding deficit over a 10 year period. The group's
exposure to future risks was reduced in respect of current pensioners by the
purchase of annuities to the value of #750,000.

The group has conducted an initial review of International Financial Reporting
Standards (IFRS) and the likely impact on results. This initial analysis has
not identified any issues of fundamental importance to the group's results in
the future.

It was recently announced that AIM quoted companies would not be required to
implement IFRS until accounting periods beginning on or after 1 January 2007.
This means that fountains has no requirement to implement IFRS until the year
ending 30 September 2008. However, the group will continue to keep its
implementation options under review.

Controls and reporting

Reports on internal financial controls and going concern are set out in the
corporate governance statement.

Risks and sensitivities

The group's internal control processes routinely ensure that key risks are
identified and managed. The risks that are believed by the board to be most
significant, together with the approach taken to manage these risks are as
follows:

* As the group operates near railways and power lines, it is essential
to be able to demonstrate effective procedures for the management of health and
safety. Good safety processes are important to protect staff, minimise
consequential costs arising from accidents, control insurance expenses and
safeguard the reputation of the group.

* The group enters into long term contracts to improve the quality and
visibility of its earnings. It is therefore essential to ensure that prices
submitted for work are accurately assessed in order to minimise the risk of
entering into a loss making contract. Rigorous controls are in place to ensure
that bids are only submitted after a full review.

* Notwithstanding the group's strong order book, failure to secure and
maintain work levels at budgeted capacity may cause the total contribution to be
inadequate to support the largely fixed cost base. Levels of work are monitored
on a monthly basis to ensure that any income shortfalls are identified and acted
upon as soon as possible.

* The group's planned emphasis on acquisitions introduces a greater
level of risk. The board is mitigating this risk by setting clear acquisition
criteria and conducting extensive due diligence reviews before entering into any
major acquisitions.

Summary

The group delivered a fifth successive year of profit growth in 2004. The
continuing strong operating cashflows, combined with the proceeds from the
fundraising, provide us with significant opportunities in the coming years.

D Y Eadie
Finance Director
22 November 2004



Group Profit and Loss Account
for the year ended 30 September 2004


Year ended 30 September 2004 Year ended 30 September 2003
Before Before
goodwill goodwill
Goodwill Total Goodwill Total
Note #'000 #'000 #'000 #'000 #'000 #'000

Turnover 2 36,090 - 36,090 35,606 - 35,606

Operating expenses 3 (34,586) (137) (34,723) (34,247) (136) (34,383)
Operating profit 1,504 (137) 1,367 1,359 (136) 1,223

Interest 73 - 73 (21) - (21)

Profit on ordinary
activities before taxation 1,577 (137) 1,440 1,338 (136) 1,202

Taxation 4 (424) - (424) (366) - (366)

Profit on ordinary
activities after taxation 1,153 (137) 1,016 972 (136) 836

Dividends on equity shares (414) (284)

Retained profit for the
financial year 602 552

Earnings per share

Basic 5 10.29 (1.22)p 9.07p 9.53p (1.33)p 8.20p

Diluted 5 8.85p 8.00p



The above results are all derived from the continuing operations of the group.

Group Balance Sheet
At 30 September 2004

2004 2003
Note #'000 #'000
Fixed assets
Intangible assets 1,716 1,745
Tangible assets 2,475 1,690
Investments 1 1
4,192 3,436

Current assets

Debtors 7,388 7,117
Cash at bank and in hand 6 7,261 1,875
14,649 8,992

Current liabilities: due within one year

Creditors (6,466) (5,617)

Bank and other borrowings 6 (66) (216)
(6,532) (5,833)

Net current assets 8,117 3,159

Total assets less current liabilities 12,309 6,595

Liabilities: due after more than one year
Bank and other borrowings 6 (25) (90)

Provisions for liabilities and charges (115) (101)

Net assets 12,169 6,404

Capital and reserves

Called up share capital 742 513

Share premium account 7,263 2,310

Capital redemption reserve 444 444

Profit and loss account 3,720 3,137

Equity shareholders' funds 12,169 6,404



These financial statements were approved by the board of directors on 22
November 2004 and signed on its behalf by:


B T Gamble
Chairman


D Y Eadie
Finance Director

Group Cash Flow Statement
for the year ended 30 September 2004


2004 2003
Note #'000 #'000

Net cash inflow from operating activities 7 2,626 1,998

Returns on investments and servicing of finance

Interest received 94 42

Interest paid (8) (31)

Interest element of finance lease rental payments (13) (32)

73 (21)

Taxation (327) (222)

Capital expenditure

Purchase of tangible fixed assets (1,767) (767)

Sale of tangible fixed assets 247 259

(1,520) (508)
Acquisitions and disposals

Purchase of subsidiary undertaking (127) -

Net cash acquired with subsidiary 10 -
(117) -

Equity dividends paid (301) (260)
Cash inflow before financing 434 987

Financing

Proceeds from share issues 5,182 44

Bank loan repayments - (17)

Other loan repayments (7) (7)

Capital element of finance lease rental payments (207) (328)

4,968 (308)

Increase in cash in the year 5,402 679


PRELIMINARY RESULTS 2004 - NOTES

1. These results have been extracted from the full audited
financial statements.

2. TURNOVER

2004 2003
% #'000 % #'000

Rail, utilities and maintenance 87 31,234 84 29,729
Forestry 13 4,856 16 5,877

100 36,090 100 35,606

The group's activities of rail, utilities and maintenance and forestry comprise
one business segment.

3. OPERATING EXPENSES

Year ended 30 September 2004 Year ended 30 September 2003

Before Before
goodwill Goodwill Total goodwill Goodwill Total
#'000 #'000 #'000 #'000 #'000 #'000

Materials (2,525) - (2,525) (1,450) - (1,450)
Other external charges (12,645) - (12,645) (14,931) - (14,931)
Staff costs (15,366) - (15,366) (14,195) - (14,195)
Depreciation and amortisation (800) (137) (937) (770) (136) (906)
Other operating charge (3,250) - (3,250) (2,901) - (2,901)

(34,586) (137) (34,723) (34,247) (136) (34,383)


The profit and loss account has changed to format 2 of the Companies Act 1985
as the directors consider this is the most suitable for group reporting
purposes.

4 TAXATION ON PROFIT ON ORDINARY ACTIVITIES

2004 2003
#'000 #'000

Current tax
UK Corporation Tax at 30% (2003: 30%)

- on income for the year 350 242
- adjustments in respect of prior years (1) (9)
--------- ---------
349 233
--------- ---------
Overseas tax
- on income for the year 28 148
- adjustments in respect of prior years 20 31
--------- ---------
48 179
--------- ---------

Total current tax 397 412

Deferred tax
- overseas deferred tax 27 (46)
--------- ---------
424 366
--------- ---------

Tax on profit on ordinary activities

5 EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the earnings attributable to
shareholders by the weighted average number of shares in issue during the year,
excluding those held in the fountains ESOP Trust where dividends have been
waived.

For diluted earnings per share, the weighted average number of shares in issue
is adjusted to assume conversion of all dilutive potential shares (those share
options granted to employees where the exercise price is less than the average
market price of the Company's shares during the year.) The same earnings
attributable to shareholders are used as in the basic earnings per share
calculation.

The earnings attributable to shareholders and the weighted average number of
ordinary shares for the relevant periods are as follows:

Basic EPS Diluted EPS

2004 2003 2004 2003

Profit attributable to shareholders 1,016,000 836,000 1,016,000 836,000
Basic weighted average number of shares 11,206,774 10,196,206 11,206,774 10,196,206
Adjustments to reflect dilutive shares under option - - 279,260 249,693

Adjusted weighted average number of shares 11,206,774 10,196,206 11,486,034 10,445,899

Earnings per share FRS3 Basis 9.07p 8.20p 8.85p 8.00p

Earnings before goodwill amortisation

Earnings before goodwill amortisation are presented in addition to the basic
earnings per share calculated in accordance with FRS14 in order to provide
shareholders with additional information.

6 RECONCILIATION OF MOVEMENT IN NET CASH/DEBT

Borrowings Borrowings
Cash and under over Net
Deposits 1 year 1 year cash/(debt)
#'000 #'000 #'000 #'000

At 1 October 2003 1,875 (216) (90) 1,569
Cashflow - cash and deposits 5,402 - - 5,402
- other loans - 7 - 7
- finance leases - 142 65 207
Exchange movements (16) 1 - (15)
--------- --------- --------- ---------
At 30 September 2004 7,261 (66) (25) 7,170
--------- --------- --------- ---------


7 RECONCILIATION OF OPERATING PROFIT TO NET CASH FLOW FROM OPERATING
ACTIVITIES

2004 2003
#'000 #'000

Operating profit 1,367 1,223
Amortisation charges 137 136
Depreciation charges 800 770
Profit on disposal of tangible fixed assets (66) (149)
Decrease in stocks - 20
(Increase)/decrease in debtors (287) 729
Increase/(decrease) in creditors less than one year 687 (692)
Decrease in provisions (12) (39)
--------- ---------
2,626 1,998
--------- ---------

8 BASIS OF PREPARATION

The auditors have issued an unqualified opinion on the full financial statements
which will be distributed to shareholders and delivered to the Registrar of
Companies in due course. The financial information for 2003 does not comprise
statutory financial statements. Statutory financial statements for 2003, on
which the auditors gave an unqualified opinion, have been delivered to the
Registrar of Companies. Further copies of these preliminary results will be
available at the company's registered office:

[gateside] 22/11/2004 07:52

Key Points

* Profit before tax up 20% to #1,440,000 (2003: #1,202,000)

* Turnover up to #36.1 million (2003: #35.6 million)

* Operating cashflow #2.6 million (2003: #2.0 million) - no net
borrowings

* Earnings per share increased by 11% to 9.07 pence (2003: 8.20 pence)

* Final dividend of 2.10 pence, total dividend for the year up 12% to
3.10 pence (2003: 2.77 pence).

* Successful net fundraising of #5.1 million, three times
oversubscribed, for acquisitions.
Net cash now #7.2 million.

* Forest management base increased in the USA through the acquisition
of
Les Ott & Associates for US$ 225.000

Barry Gamble, Chairman, commented:

"This has been another year of progress, we now have the track record,
management capability and balance sheet strength to raise our growth rate. I am
confident we can continue to build our reputation for delivery to customers and
shareholders alike."

[artful dodger] 21/11/2004 22:38

broken out of r150p
next target is 180p,and I will expect it to retrace from there

[one for the money] 19/11/2004 11:12

just some buying before results on Monday?

Cheers
1-4

[gateside] 19/11/2004 11:07

As I was typing that... the BID just moved up!!!

Maybe not as quiet as I thought ;-)

[gateside] 19/11/2004 11:06

All very quiet so far today, with few trades.

Looking forward to those results on Monday ;-)

[gateside] 15/11/2004 13:48

Almost at an all time high!

The highest ever price being 154p in early March this year.

[one for the money] 10/11/2004 15:21

IMHO results will be good.

Still holding
Cheers
1-4

[gateside] 10/11/2004 15:14

Good to see the steady trickle of buying continue, in the run up to results.

[gateside] 01/11/2004 15:27

Notification of Preliminary Results

On behalf of our client fountains plc, we notify the London Stock Exchange that
the Company will be announcing its Preliminary Results for the year ended 30
September 2004 on Monday 22 November 2004.

An analyst briefing will be held at 9.30am and a press briefing at 11.00 am at
Buchanan Communications, 107 Cheapside, London, EC2

[green sand] 31/10/2004 11:20

Hi Timbo

I am new to VCT drawn in by the 40% contribution from dear Gordon.

Have a friend who got into FNT just below 100p. He was very anti VCTs until hearing that Eclipse had taken part in the placing. Until then VCTs had been "too risky" noe he is not chuffed at my discount.

I have been having a good look at FNT and recond I might get in before the results next month. Probably on any retraction following the IC tip uplift.

Good Luck
GS

[artful dodger] 29/10/2004 19:27

pushing to test R=150p

[timbo003] 29/10/2004 18:01

Hi GS

So, you and me are really in big time on this one then!

I have a portfolio of ten VCTs (soon to become eleven when I subscribe to Baronsmead 2). All of my VCTs have been new subscriptions (I love the tax breaks) and I have invested between £3K and £5K in all of them, I tend to keep an eye on what they are investing in.

Looking at recent announcements from the VCTs in my portfolio, Pennine Aim (PAV), Eclipse (ECL) and Phoenix (PHX) all went for the Fountains placing. Bodes well for the future of Fountains? Lets hope so.

[green sand] 29/10/2004 17:23

Like Timbo003 post 40 I have just been informed that I am in via Eclipse VCT.

Have 3k of Eclispe which equates, I think, to an investment in Fountains of appox £36! Feel the power!

Its been nice to have made a contribution every little helps in this high powered world of finance.

Will now have a closer look at my investment.

Have Fun

GS