Source - RNS
RNS Number : 2550K
Mountfield Group plc
20 September 2016
 

 

 

Mountfield Group Plc

 

(the "Company" or the "Group")

 

Half-yearly report to 30 June 2016

 

 

Mountfield Group Plc , the AIM listed construction company specialising in supplying and installing raised access flooring and the construction, fitting out and refurbishing of data centres and commercial and residential buildings, announces its half-yearly report to 30 June 2016.

 

·      Gross profit of £1m (H1 2015: £1.1m) on revenue of £4.9m (H1 2015: £7.3m).

·      Group margins increased from 14.8% (in the first half of 2015) to 20.8%.

·      Net profit before tax increased from £246k (in the first half of 2015) to £316k.

·      Directors expect the performance to continue in the second half of the year.

·      The business of Connaught Access Flooring Limited ("CAF" or "Connaught") continues to cement its position as a market leader.

·      Mountfield Building Group Limited ("MBG") is now able to achieve sustainable profitability.

·     Neither Company has seen a post-Brexit decline in business activity.

 

 

 

Andy Collins - Group CEO said:

 

"The results are particularly satisfying because they show that the Board's key objectives of establishing Connaught as a market leader in the raised access flooring market and positioning MBG on a path of sustainable profitability, have been met.

It is very encouraging that demand for the services of the Group Companies have not been reduced since the Brexit vote and the state of activity that we saw ahead of the vote has continued undiminished."

 

 

 

Mountfield Group Plc

Peter Jay, Chairman

Andy Collins, Chief Executive Officer

 

+44 (0)1268 561 516

 

WH Ireland (Nominated Adviser)

Paul Shackleton

 

 

+44 (0)20 7220 1666

 

 

 

Chairman and CEO's Statement

 

The first half of the year saw an increase in the unaudited pre-tax profits of the Group from £245k to £316k and the Directors expect the improvement in net profits to continue in the second half of the year.

 

The Directors are satisfied that the market remains strong and they do not see any reduction in demand for the services of the Group companies following the Brexit vote. 

 

CAF achieved a profit of £397k during the first half of 2016 (H1 2015: £321k). The key feature of the period was the completion of its £5m + contract for flooring at a new City HQ building. The successful completion of this contract has cemented its position as one of the very few companies able to undertake access flooring contracts of this nature. This is evidenced by the record volume of tenders for the supply and installation of raised access flooring for prestigious new developments in and around London. Conversion of even a small proportion of these tenders will provide a significant contribution to turnover over the next 2-3 years.

 

The smaller contract business of CAF also continues to perform well.

 

CAF has already begun to expand its management team to enable it to handle a larger and more varied workload and has appointed a marketing development director whose role will be to increase awareness of CAF and its businesses amongst main contractors, developers and architects.

 

MBG's net profits increased for the half-year from £46k in 2015 to £71k and the Directors now believe it is able to achieve sustainable profitability because of its reduced operating costs and altered business strategy. The Directors anticipate that the second half of the year will see an improvement to its net profit over that achieved in the first half of 2016.

 

MBG now primarily undertakes contracts of a low risk nature, direct for its clients in various areas of specialist construction including the construction of data centres, commercial and residential properties. This strategy together with the reduced overheads has enabled it to operate profitably.

 

Its remains the intention of the Group to extend its business activities and continue to explore acquisition opportunities in the market.


Condensed consolidated statement of comprehensive income

For the six months ended 30 June 2016

 

 

 

6 months to     30 June 2016

 

6 months to     30 June 2015

 

12 months to       31 December 2015

 

 

(unaudited)

 

(unaudited)

 

(audited)

 

Note

£

 

£

 

£

Revenue

 

4,915,089

 

7,253,265

 

13,033,039

Cost of sales

 

(3,892,054)

 

(6,179,663)

 

(11,155,909)

Gross profit

 

1,023,035

 

1,073,602

 

1,877,130

Administrative expenses

 

(695,182)

 

(796,210)

 

(1,673,235)

Operating profit

 

327,853

 

277,392

 

203,895

Net finance costs

 

(11,436)

 

(31,752)

 

(26,778)

Profit before income tax

 

316,417

 

245,640

 

177,117

Income tax expense

3

(68,871)

 

(43,862)

 

(60,728)

 

 

 

 

 

 

 

Total comprehensive profit for the period

 

247,546

 

201,778

 

116,389

 

 

 

 

 

 

 

Earnings per share

    4

 

 

 

 

 

 

 

 

 

 

 

 

Basic & diluted

 

0.097p

 

0.079p

 

0.046p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                   

There are no recognized gains and losses other than those passing

through the Statement of Comprehensive Income

 

 

 Condensed consolidated statement of financial position

As at 30 June 2016

 

 

 

30 June 2016

 

(Unaudited)

30 June 2015

 

(Unaudited)

31 December 2015

 

(audited)

 

 

£

£

£

ASSETS

 

 

 

 

Non-current assets

 

 

 

 

Intangible assets

 

6,874,308

6,874,308

6,874,308

Property, plant and equipment

 

97,612

109,490

102,213

Deferred income tax assets

 

329,932

407,032

346,304

 

 

7,301,852

7,390,830

7,322,825

Current assets

 

 

 

 

Inventories

 

84,870

88,279

72,835

Trade and other receivables

 

2,743,903

4,024,658

2,345,797

Cash and cash equivalents

 

396,024

355,571

350,232

 

 

3,224,797

4,468,508

2,768,864

TOTAL ASSETS

 

10,526,649

11,859,338

10,091,689

 

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

 

Share capital and reserves

 

 

 

 

Issued share capital

 

254,244

254,244

254,244

Share premium

 

1,490,682

1,490,682

1,490,682

Share based payments reserve

 

68,871

68,871

68,871

Capital redemption reserve

 

7,500

7,500

7,500

Merger reserve

 

12,951,180

12,951,180

12,951,180

Reverse acquisition reserve

 

(2,856,756)

(2,856,756)

(2,856,756)

Retained earnings

 

(9,564,591)

(9,726,749)

(9,812,138)

TOTAL EQUITY

 

2,351,130

2,188,972

2,103,583

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

3,590,023

4,674,126

3,532,971

Short-term borrowings

 

1,620,615

1,976,600

1,403,568

Finance lease liabilities

 

2,399

3,564

4,147

Current tax payable

 

52,499

57,743

-

 

 

5,265,536

6,712,033

4,940,686

Non-current liabilities

 

 

 

 

Loan notes

 

2,909,983

2,956,001

3,047,420

Finance lease liabilities

 

-

2,332

-

TOTAL LIABILITES

 

8,175,519

9,670,366

7,988,106

 

 

 

 

 

TOTAL EQUITY & LIABILITIES

 

10,526,649

11,859,338

10,091,689

 

 

  

Condensed consolidated statement of changes in equity

For the six months ended 30 June 2016

 

 

 

Share capital

 

£

Share premium

 

£

Share based payments reserve

£

Capital redemption reserve             £

Reverse Acquisition reserve

£

Merger reserve

 

£

Retained earnings

 

£

Total

 

 

£

Balance at 1 January 2015

254,244

1,490,682

66,084

7,500

(2,856,756)

12,951,180

(9,928,527)

1,984,407

Total comprehensive income

-

-

-

-

-

-

201,778

201,778

Share based payments

-

-

2,787

-

-

-

-

2,787

Balance at 30 June 2015

254,244

1,490,682

68,871

7,500

(2,856,756)

12,951,180

(9,726,749)

2,188,972

Balance at 1 July 2015

254,244

1,490,682

68,871

7,500

(2,856,756)

12,951,180

(9,726,749)

2,188,972

Total comprehensive income

-

-

-

-

-

-

(85,389)

(85,389)

Balance at 31 December 2015

254,244

1,490,682

68,871

7,500

(2,856,756)

12,951,180

(9,812,138)

2,103,583

Balance at 1 January 2016

254,244

1,490,682

7,500

(2,856,756)

12,951,180

(9,812,138)

2,103,583

Total comprehensive income

-

-

-

-

-

-

247,546

247,546

Balance at 30 June 2016

254,244

1,490,682

68,871

7,500

(2,856,756)

12,951,180

(9,564,591)

2,351,130

 

 

Condensed consolidated cash flow statement

For the six months ended 30 June 2016

 

 

6 months to

30 June 2016

(unaudited)

6 months to

30 June 2015

(unaudited)

12 months to

31 December 2015

 (audited)

 

 

£

£

£

Cash from operating activities:

 

 

 

 

Operating profit

 

327,853

277,392

203,895

Adjusted for:

 

 

 

 

Depreciation

 

6,861

7,035

14,418

Share based payment provision

 

-

2,787

2,787

(Increase)/ decrease in inventories

 

(12,035)

(5,980)

9,464

(Increase)/ decrease in trade and other receivables

 

(398,109)

(601,891)

1,076,972

(Decrease)/ increase in trade and other payables

 

2,483

433,673

(707,481)

Cash (used in)/ generated by operations

 

(72,947)

113,016

600,055

 

 

 

 

 

Finance costs

 

(11,436)

(35,412)

(33,993)

Finance income

 

-

3,661

7,215

Taxation paid

 

-

-

(13,881)

                                                                                          Net cash (outflow)/inflow from operating activities

 

 

(84,383)

                          81,265    

 

559,396

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Purchase of equipment

 

(2,259)

(6,884)

(7,667)

                                                                                          Net cash flows from used in investing activities

 

 

(2,259)

                         (6,884)

 

(7,667)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Finance lease rentals

 

(1,747)

(5,696)

(6,768)

Repayment of non-convertible loan notes

 

(137,437)

(90,946)

(305,790)

Proceeds from short-term loans

 

-

(74,999)

(161,419)

 

Net cash flows from financing activities

 

 

(139,184)

                     (171,641)

 

(473,977)

 

Net (decrease)/increase in cash and cash equivalents

 

 

(225,826)

                       (97,260)

 

77,752

 

 

 

 

 

Cash and cash equivalents brought forward

 

(424,988)

(502,740)

(502,740)

 

Cash and cash equivalents carried forward

 

 

(650,814)

                    (600,000)

 

(424,988)

 

 

 

For the purposes of the cash flow statement, cash and cash equivalents comprise the following:

 

 

 

  As at 30 June 2016

As at 30 June 2015

As at 31 December 2015

 

£

£

£

Cash at bank and in hand

396,024

355,571

350,232

Bank overdraft

(1,046,838)

(955,571)

(775,220)

 

 

 

 

 

(650,814)

(600,000)

(424,988)

 

 

 

 

 

 

1.     Notes to the Interim Report

 

Basis of preparation

The Group's interim financial statements for the six months ended 30 June 2016 were authorised for issue by the directors on 19 September 2016.

 

The consolidated interim financial statements, which are unaudited, do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The statutory accounts for the year ended 31 December 2015 have been filed with the registrar of companies at Companies House. The audit report on the statutory accounts for thyear ended 31 December 2015 was unqualified and did not contain any statements under Section 498 (2) or (3) of the Companies Act 2006.

 

The annual financial statements of Mountfield Group Plc for the year ended 31 December 2016 will be prepared in accordance with International Financial Reporting Standards as adopted for use in the EU ("IFRS"). Accordingly, these interim financial statements have been prepared using accountinpolicies consistent with those which will be adopted by the Group in the financial statements and in compliance with IAS 34 "Interim financial reporting".

 

The consolidated interim financial statements have been prepared in accordance with the accounting policies set ouin the annual financial statements for the year ended 31 December 2015.

 

Basis of consolidation

The Group financial information consolidates that of the company and its subsidiaries.

 

All intra-group transactions, balances, income and expenses are eliminated on consolidation.

 

2.     Segmental reporting

 

Segment information is presented in respect of the Group's business segments, which are based on the Group's management and internal reporting structure.

 

The chief operating decision-maker has been identified as the Board of Director(the Board)The Board reviews the Group's internal reportinin order to assess performance and allocate resourcesManagement have determined the operating segments based on these reports and on the internal report's structure.

 

Segment performance is evaluated by the Board based on revenue and profit before tax ("PBT"). Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis, such as centrally managed costs relating to individual segments and costs relating to land used in more than one individual segment.

 

Givethat income taxes and certain corporate costs are managed on a centralised basis, these items are not allocated between operating segments for the purposes of the informatiopresented to the Board and are accordinglomitted from the analysis below.

 

The Group comprises the following segments:

 

Mountfield

Direct contracting and trade contracting services to both main contractors and corporate end users.

 

Connaught

Providing raised flooring systems to both main contractors and corporate end users.

 

Land sourcing

Sourcing land and enhancing value.

 

 

 

 

 

Segmental operating performance

 

 

 

Six months to 30 June 2016

Six months to 30 June 2015

Twelve months to 31 December 2015

 

Segmental revenue

PBT

Segmental revenue

PBT

Segmental revenue

PBT

 

£'000

£'000

£'000

£'000

£'000

£'000

Construction

1,734

71

3,405

46

5,918

(420)

 

 

 

 

 

 

 

Fit -out

3,198

397

3,934

321

7,517

467

 

 

 

 

 

 

 

Land sourcing

-

-

-

-

-

-

 

4,932

468

7,339

367

13,435

47

Inter-segmental                revenue and                 unallocated costs

 

(17)

 

(152)

                 (86)

             (121)

(402)

130

 

4,915

316

7,253

246

13,033

177

 

Business segments assets and liabilities

 

 

Six months to 30 June 2016

Six months to 30 June 2015

Twelve months to 31 December 2015

 

Segment assets

Segment liabilities

Segment assets

Segment liabilities

Segment assets

Segment liabilities

 

£'000

£'000

£'000

£'000

£'000

£'000

Construction

2,469

3,727

2,823

4,253

1,380

3,300

 

 

 

 

 

 

 

Fit-out

1,184

1,831

2,096

1,871

1,838

1,314

 

 

 

 

 

 

 

Land sourcing

-

-

-

2

-

-

 

3,653

5,558

4,919

6,126

3,218

4,614

 

 

 

 

 

 

 

Goodwill - Construction

2,000

-

2,000

-

2,000

-

Goodwill - Fit-out

4,874

-

4,874

-

4,874

-

Goodwill - Land sourcing

-

-

-

-

-

-

Other unallocated assets & liabilities

-

2,565

66

3,544

-

3,374

 

10,527

8,123

11,859

9,670

10,092

7,988

 

Unallocated assets consist of deferred tax, trade and other receivables and cash held by the Parent Company. Unallocated liabilities consist of trade and other payables and interest bearing loans owed by the Parent Company.

 

Revenue by geographical destination

 

Revenue is attributable to the United Kingdom and other EU markets.

 

Total assets including property, plant and equipment and intangible assets are all held in the UK.

 

 

 

 

 

 

 

3.             Income tax (expense)/credit (continuing operations)

 

 

6 months to       30 June 2016

6 months to       30 June 2015

12 months to           31 December 2015

 

(unaudited)

(unaudited)

(audited)

 

£

£

£

Current tax on income for the period

(52,499)

(43,862)

-

Deferred tax (expense)

(16,372)

                     -

(60,728)

Income tax (expense)/credit in the income statement

(68,871)

(43,862)

(60,728)

 

 

 

 

4.           Earnings per share

 

The basic earningper share is calculated by dividing the earnings attributable to equity shareholders by the weighted average number of shares in issue. In calculatinthe diluted earnings per share, share options outstanding have been taken into account where the impact of these is dilutive.

 

 

 

The weighted average number of shares in the period was:

 

 

6 months to

30 June 2016

 

6 months to

30 June 2015

 

12 months to

31 December 2015

 

(unaudited)

 

(unaudited)

 

(audited)

 

 

Number

Number

Number

Basic ordinary shares of 0.1p each

254,244,454

254,244,454

254,244,454

Dilutive ordinary shares from Warrants & options

-

-

-

Total Diluted

254,244,454

254,244,454

254,244,454

 

 

 

In the six months to 30 June 2016, the exercise price of the options and warrants exceeded the average market price of ordinary shares in the period, thus there is no dilutive effect on the weighted average number of ordinary shares or the diluted earnings per share. 

 

Earning attributable to equity shareholders of the parent

 

 

 

6 months to

30 June 2016

 

6 months to

30 June 2015

 

12 months to

31 December 2015

 

(unaudited)

 

(unaudited)

 

(audited)

 

Continuing operations

 

 

 

 

Basic earnings per share

0.097p

0.079p                           

0.046p

Diluted earnings per share

0.097p

0.079p                           

0.046p

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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