Interim Results
26 Setembro 2003 - 8:32AM
UK Regulatory
RNS Number:2248Q
Lupus Capital PLC
26 September 2003
Lupus Capital plc
Interim results for the six months ended 30 June 2003
Lupus Capital plc ("Lupus") today announced its unaudited interim results for
the six months ended 30 June 2003
Highlights
* Good progress on the strategy to realise value. Proposals expected to be
announced in the current period
* Operating profit before goodwill amortisation #1,197,000 (2002:
#1,013,000), an increase of 18% on turnover of #2,886,000 (2002:
#3,027,000)
* Profit before tax increased by 6% to #541,000, after a loss of #200,000 on
the realisation of investments
* Gall Thomson continues to trade well and has a good outlook
* Net debt reduced by #3,510,000 to #317,000 at 30 June 2003. Subsequently
repaid
* Maintained interim dividend of 0.12p
Commenting, Konrad Legg, chairman said:
"I am pleased to report good progress in implementing the strategy adopted at
the end of last year and also sound trading at Gall Thomson."
Contacts
Progressive Value Management Limited
Robert Legget 020 7253 9104
Simon Toynbee
Chairman's Statement
I am pleased to report good progress in implementing the strategy adopted at the
end of last year and also sound trading at Gall Thomson, the specialised
couplings business.
Following the sale last year of the holding in Castings plc, all the remaining
listed investments were sold during the period. These disposals, together with
cash inflows from operations, enabled Lupus to reduce its borrowings from #3.8m
to #0.3m during the period. Since the period end the Group has repaid the net
debt.
Gall Thomson put in a very solid performance and its results are encouraging.
Lupus, through the activities of Gall Thomson, achieved an operating profit
before goodwill amortisation of #1,197,000, an increase of 18%, on turnover
slightly down on last year's first half owing to a number of project delays
associated with the Iraq war. The group profit before tax was only 6% higher at
#541,000 because of a #200,000 loss taken against book value in liquidating the
remaining investment portfolio. The Directors have declared an unchanged interim
dividend of 0.12p per share payable on 30 October 2003 to shareholders on the
register at the close of business on 10 October 2003.
Trading prospects for Gall Thomson remain good. The order profile is encouraging
and management are confident about the business flow and improved trading in the
current period.
We are in the process of making arrangements relating to our vacant London and
sub-let Tewkesbury leasehold properties and hope to finalise these in the near
future. In addition the work on rationalisation of our corporate entities is
continuing.
As shareholders are aware the final and most significant element in our strategy
to realise value for shareholders relates to the Gall Thomson business. We have
been pursuing a number of ways to achieve value, including the sale of that
business and the sale of the Company. We have made progress with several
alternatives and we have held detailed discussions with interested parties.
Since the announcement and adoption of the realisation strategy the share price
has increased significantly to reflect more closely the underlying value of the
assets. We intend to build on this progress and we expect to put forward
proposals in the current period. We will keep shareholders informed of
developments.
The positive outlook for Gall Thomson and the Group's ungeared balance sheet
lead us to view the future with a high degree of confidence.
Konrad Legg
Chairman
26 September 2003
Group profit and loss account
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2003 2002 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Turnover 2,886 3,027 6,638
Operating profit
Continuing operations - excluding goodwill
amortisation 1,197 1,013 876
Goodwill amortisation (370) (370) (741)
827 643 135
(Loss)/profit on disposal of fixed asset (200) - 213
investments
Income from investments - 53 273
Amounts written off fixed asset investments - - (1,595)
Interest and similar items (86) (184) (387)
Profit/(loss) on ordinary activities before 541 512 (1,361)
taxation
Taxation (273) (236) (151)
Profit/(loss) on ordinary activities after 268 276 (1,512)
taxation
Ordinary dividends (207) (205) (1,058)
Retained profit/(loss) 61 71 (2,570)
Earnings/(loss) per share 0.16p 0.16p (0.89)p
Earnings before goodwill amortisation per 0.37p 0.38p (0.45p)
share
Dividend per share 0.12p 0.12p 0.50p
Statement of total recognised gains and losses
There were no recognised gains and losses in each year other than the (loss) /
profit for the financial year.
Group Balance Sheet
At 30 June At 30 June At 31December
2003 2002 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Fixed assets
Intangible fixed assets 11,792 12,533 12,161
Tangible fixed assets 438 534 463
Investments - 8,070 3,822
12,230 21,137 16,446
Current assets
Stock and work-in-progress 186 215 200
Debtors 1,872 1,493 2,096
2,058 1,708 2,296
Creditors: amounts falling due within one (1,894) (8,170) (6,693)
year
Net current assets/(liabilities) 164 (6,462) (4,397)
Total assets less current liabilities 12,394 14,675 12,049
Creditors: amounts falling due after more (84) (78) (80)
than one year
Net assets 12,310 14,597 11,969
Capital and reserves
Share capital 864 852 853
Share premium 4,710 4,429 4,441
Capital reserves 10,389 10,389 10,389
Revenue reserve (3,653) (1,073) (3,714)
Equity shareholders' funds 12,310 14,597 11,969
Group Cash Flow Statement
Six months Six months Year
ended ended ended
30 June 2003 30 June 2002 31 December 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Operating activities
Net cash inflow from operating activities 479 1,176 2,112
Return on investments and servicing of
finance
Interest received 70 80 155
Interest paid (185) (258) (531)
Dividends received 56 53 258
(59) (125) (118)
Taxation
UK corporation tax recovered/(paid) 181 (128) (544)
Capital expenditure and financial
investment
Sale of tangible fixed assets 4 - -
Purchase of tangible fixed assets (5) (6) (16)
Sale of fixed asset investments 3,621 - 3,051
Purchase of fixed asset investments - (886) (1,070)
3,620 (892) 1,965
Equity dividends paid (852) (426) (630)
Net cash inflow/(outflow) before financing 3,369 (395) 2,785
Financing
Issue of shares net of costs 141 12 25
Increase/(decrease) in cash 3,510 (383) 2,810
Reconciliation of net cash flow to movement in net debt
Six months Six months Year
ended ended ended
30 June 2003 30 June 2002 31 December 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Increase/(decrease) in cash 3,510 (383) 2,810
Change in net debt from cash flows 3,510 (383) 2,810
Net debt at the beginning of the period (3,827) (6,637) (6,637)
Net debt at the end of the period (317) (7,020) (3,827)
Reconciliation of operating profit to net cash flows
from operating activities
Six months Six months Year
ended ended ended
30 June 2003 30 June 2002 31 December 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Operating profit 827 643 135
Depreciation 26 37 74
Amortisation of goodwill 370 370 741
Movement in stock 14 (43) (28)
Movement in debtors 133 527 115
Movement in creditors (891) (358) 1,031
Provision against carrying value of - - 44
fixed assets
Net cash flow from operating 479 1,176 2,112
activities
Notes
These financial statements are not the Company's statutory accounts for the
purposes of Section 240 of the Companies Act 1985. They are unaudited. The
Company's statutory accounts for year ended 31 December 2002 received an
unqualified audit report and have been filed with the registrar of companies at
Companies House.
The interim financial information has been prepared on the basis of the
accounting policies set out in the Report and Accounts of the Group for the year
ended 31 December 2002.
The interim report will be sent to shareholders and copies will be made
available to the public at the registered office of the Company.
The Directors have declared an interim dividend of 0.12p per share (2002: 0.12p)
to shareholders on the register at the close of business on 10 October 2003,
which will be paid on 30 October 2003.
Earnings per share figures are based on the weighted average of 170,652,919
ordinary shares in issue during the half-year ended 30 June 2003 (half-year to
30 June 2002: 170,182,258 shares; year to 31 December 2002: 170,302,702 shares).
The number of shares in issue at 30 June 2003 was 172,873,085.
The Directors approved the interim report on 25 September 2003.
Registered office:
Crusader House
145-157 St John Street
London EC1V 4RU
This information is provided by RNS
The company news service from the London Stock Exchange
END
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