Interim Results
29 Julho 2003 - 4:00AM
UK Regulatory
RNS Number:0317O
Ben Bailey PLC
29 July 2003
Ben Bailey Plc
Unaudited results for the six months ended 30 June 2003
2003 2002 change
* Pre-tax Profit #5.83m #2.22m +163%
* Operating Profit #6.25m #2.52m +148%
* Turnover #28.85m #18.71m +54%
* EPS Basic 36.89p 14.92p +147%
* Interim Dividend (per share) 4.00p 2.50p +60%
* Average selling price up to #147,900 from #121,000
* Operating margin up to 21.7% from 16.4%
* Plots sold up to 195 from 174
* Land bank now 1,278 plots plus 372 plots under contract
Commenting on the results Richard Bailey, Chairman, said,
"We have continued to enjoy favourable market conditions across our area of
operations, and as importantly, have managed these to good effect in producing
the improved results shown above."
"Forward reservation levels are higher than at the same time last year and there
are no current indications of downward pressure on selling prices in our area of
operations in the North of England. Based upon these factors, and with the
strength of the Company's land bank contributing to a structured build
programme, I am confident of a very satisfactory performance for the current
financial year."
FULL STATEMENT ATTACHED
Enquiries:
Paul Russell, Chief Executive Martin Eales
Ben Bailey Plc Brown Shipley Corporate Finance
Tel: 01709 586261 Tel: 020 7282 3205
Chairman's Statement
Unaudited results for the six months ended 30 June 2003.
Results
I am pleased to be able to report further substantial increases in the Company's
performance for the first six months of the financial year. Pre-tax profits
increased by 163% to #5.83m (2002: #2.22m), arising from an increase of #10.1m
in turnover to #28.8m (2002: #18.7m).
Completed plot sales were 195 compared to 174 in the same period last year and
the average selling price of our homes rose by 22% to #147,900 (2002: #121,000).
The combined effects of improved selling prices, product development and land
management have enabled operating margins to increase to 21.7% as against the
16.4% achieved for the last financial year.
Review of Operations
We have continued to enjoy favourable market conditions across our area of
operations, and as importantly, have managed these to good effect in producing
the improved results shown above.
A continuing programme of house-type development has enabled the Company to
satisfy a wide range of customers and facilitated compliance with changes in
planning regulations.
The Company's success in managing the land bank has resulted in an increased
number of plots in ownership, currently 1,278 with a further 372 plots under
contract. In pursuit of an enlarged and high quality land bank, there has been
a need to increase borrowings and gearing. This has been implemented in a well
structured manner by negotiating a three year committed borrowing facility of
#18 million.
Future Prospects
Forward reservation levels are higher than at the same time last year and there
are no current indications of downward pressure on selling prices in our area of
operations in the North of England. Based upon these factors, and with the
strength of the Company's land bank contributing to a structured build
programme, I am confident of a very satisfactory performance for the current
financial year.
Dividend
In view of the continued improvement in your Company's performance the Board has
declared an interim dividend of 4.0p per share which represents an increase of
60% over the 2002 level of 2.5p per share. The dividend will be payable on 5
September 2003 to shareholders on the register at 8 August 2003.
B R Bailey
Chairman
29 July 2003
INTERIM RESULTS
Unaudited consolidated profit and loss account for the six months ended 30 June
2003
Unaudited Unaudited Audited
Six months Six months Year
ended 30 ended 30 ended 31
June 2003 June 2002 December 2002
#'000 #'000 #'000
TURNOVER 28,848 18,708 49,201
-------------- -------------- --------------
OPERATING PROFIT 6,254 2,522 8,078
Net Interest Payable (421) (303) (568)
------------- ------------- -------------
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 5,833 2,219 7,510
Tax on Ordinary Activities (1,749) (645) (2,211)
------------- ------------- -------------
PROFIT FOR THE FINANCIAL 4,084 1,574 5,299
PERIOD
Dividends (445) (264) (817)
------------- ------------- -------------
RETAINED PROFIT FOR THE 3,639 1,310 4,482
PERIOD ------------- ------------- -------------
Earnings per share - Basic 36.89p 14.92p 49.27p
Dividend per share 4.00p 2.50p 7.50p
Notes
1. In accordance with section 240 of the Companies Act 1985, this statement
does not form part of the Company's statutory accounts. The results for the
twelve months ended 31 December 2002 are abridged from the full accounts
for that year on which the auditors have issued an unqualified audit
report. A copy of the accounts has been delivered to the Registrar of
Companies.
2. The interim statement has been prepared applying the same accounting
policies as used in the accounts for the twelve months ended 31 December
2002.
3. Turnover and operating profit relate to continuing operations.
4. Taxation has been provided at the estimated effective rate for the full
twelve month period.
5. The earnings per share have been calculated on the following number of
ordinary shares being the weighted average number of shares in issue
throughout each of the periods:
6 months ended 30 June 2003 11,071,129
6 months ended 30 June 2002 10,548,632
Year ended 31 December 2002 10,754,481
CONSOLIDATED BALANCE SHEET
Unaudited consolidated balance sheet as at 30 June 2003
Unaudited Unaudited Audited
At 30 At 30 At 31
June 2003 June 2002 December 2002
#'000 #'000 #'000
FIXED ASSETS
Tangible assets 522 585 496
------------- ------------- -------------
CURRENT ASSETS
Land held for development 27,501 12,745 14,351
Stocks and work in progress 20,535 14,859 16,321
Debtors 908 1,086 891
------------- ------------- -------------
48,944 28,690 31,563
CREDITORS: amounts falling
due within one year (16,326) (19,142) (18,118)
------------- ------------- -------------
NET CURRENT ASSETS 32,618 9,548 13,445
------------- ------------- -------------
TOTAL ASSETS LESS
CURRENT LIABILITIES 33,140 10,133 13,941
CREDITORS: amounts falling
due after more than one year (15,538) - -
------------- ------------- -------------
17,602 10,133 13,941
------------- ------------- -------------
CAPITAL AND RESERVES
Called up share capital 1,112 1,056 1,106
Share premium account 628 27 612
Profit and loss account 15,862 9,050 12,223
------------- ------------- -------------
EQUITY SHAREHOLDERS' FUNDS 17,602 10,133 13,941
------------- ------------- -------------
CONSOLIDATED CASH FLOW STATEMENT
Unaudited consolidated cash flow as at 30 June 2003
Unaudited Unaudited Audited
Six months Six months Year
to 30 to 30 to 31
June 2003 June 2002 December 2002
#'000 #'000 #'000
Net cash (outflow)/inflow from continuing operating
activities
(11,409) 1,046 5,092
Net cash outflow from returns on
investment and servicing of finance (421) (299) (579)
UK Corporation Tax paid (1,122) (371) (1,538)
Capital expenditure (86) (93) (126)
Sale of tangible fixed assets - 2 6
Equity dividends paid (553) (274) (537)
------------- ------------- -------------
Net cash (outflow)/inflow before financing (13,591) 11 2,318
Financing - Movement on loans 11,769 (22) (2,964)
- Issue of ordinary share capital 22 11 646
------------- ------------- -------------
(Decrease)/Increase in cash in the period (1,800) - -
------------- ------------- -------------
RECONCILIATION OF OPERATING
PROFIT TO OPERATING CASH FLOW
Continuing Operations
Operating profit 6,254 2,522 8,078
Depreciation of tangible fixed assets 60 64 187
Profit on sale of tangible fixed assets - (1) (6)
(Increase) in land for development (13,150) (636) (2,242)
(Increase) in stocks (4,214) (1,992) (3,454)
(Increase) in trade debtors (82) (49) (9)
Decrease/(increase) in other debtors, prepayments and
accrued income
65 (423) (269)
Increase in trade creditors 148 1,679 3,814
(Decrease) in land creditors (948) (698) (1,348)
Increase in other taxation and social security 33 26 38
(Decrease)/increase in accruals and deferred income (187) 47 280
Increase in other creditors 612 507 23
------------- ------------- -------------
Net cash (outflow)/inflow from operating activities (11,409) 1,046 5,092
------------- ------------- -------------
RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET
DEBT
(Decrease)/increase in cash in the period
(1,800) - -
Cash (inflow)/outflow from decrease/(increase) in (11,769) 22 2,964
debt
------------- ------------- -------------
Movement in net debt in the period (13,569) 22 2,964
Net debt at 1 January 2003 (5,269) (8,233) (8,233)
------------- ------------- -------------
Net debt at 30 June 2003 (18,838) (8,211) (5,269)
------------- ------------- -------------
This information is provided by RNS
The company news service from the London Stock Exchange
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