RNS Number:2138J
Brammer PLC
02 March 2005
PRESS RELEASE
FOR IMMEDIATE RELEASE
2 March 2005
2004 PRELIMINARY RESULTS
CONTINUING PROGRESS
Brammer plc, the European services group, today announces preliminary results
for the year ended 31 December 2004.
Highlights 2004 2003 Change
Turnover #290m #349m -17%
Profit / (loss) on ordinary activities after tax #0.9m #(36.3)m
Profit before goodwill, exceptional items and tax #9.5m #7.0m +36%
Movement in net debt #22.7m #(17.0)m
Net debt #(57.0)m #(79.7)m
Equity shareholders' funds #16.3m #20.2m
Earning per share
Basic 1.9p (75.9)p
Diluted 1.9p (75.9)p
Before amortisation of goodwill and exceptional items 13.8p 11.8p +17%
Dividend per share 4.8p 4.5p +7%
* Profit before goodwill, exceptional items and tax up 36% at #9.5 million
* Earnings per share before amortisation of goodwill and exceptional items
up 17%
* Dividend increased by 7% to 4.8p
* Net debt reduced by #22.7 million to #57.0 million
* Livingston disposal completed in March 2004
* Continuing business revenues increased by 3% to #270.8 million, whilst
operating profit before goodwill, exceptional items and interest
increased by 9% to #10.5 million
* Significant market share gains achieved, particularly in the second half
of the year
* Operating profits improved significantly on the continent, growing by
24% in Germany and 27% in France
* After a poor first half, the UK is now seeing continuing improvement
with second half growth in revenues of 4% on a sales per working day basis
* Key account business enjoyed excellent growth
David Dunn, chairman, said:
"I believe the future for Brammer is bright after several difficult years. Our
performance in the second half of 2004 was on an improving trend and the
evidence to date in 2005 leads us to believe we shall be able to demonstrate
further good progress this year."
Enquiries: Brammer plc 020 7638 9571 (8.00am - 1.00pm)
0161 902 5599 (1.00pm - 4.30pm)
David Dunn, chairman
Ian Fraser, chief executive
Paul Thwaite, finance director
Issued: Citigate Dewe Rogerson Ltd 020 7638 9571
Martin Jackson
Anthony Kennaway
Brammer plc
2004 PRELIMINARY RESULTS
Chairman's statement
Overview
Following the positive results and outlook I was able to refer to in the 2004
interim report, I am pleased to indicate further good progress in the second
half of the year.
Profit on ordinary activities before tax for the twelve months to 31 December
2004 was #3.6 million compared to a loss of #29.2 million last year which was
adversely affected by the disposal of our Livingston businesses. The profit
before goodwill and exceptional items was #9.5 million compared to #7.0 million
last year. The figures include part-year contributions from the Livingston
businesses which were disposed of at the end of March. For the three month
period in 2004 prior to disposal the profit for Livingston before goodwill,
exceptional items and interest was #1.6 million compared to a full twelve months
contribution in 2003 of #0.8 million.
Basic earnings per share were 1.9p compared to a loss of 75.9p in 2003. Earnings
per share before goodwill and exceptional items amounted to 13.8p against 11.8p
last year. Exceptional costs in both years were largely associated with the
restructuring and, ultimately, the sale of the Livingston businesses. Net debt
fell from #79.7 million to #57.0 million benefiting from the proceeds of the
sale of Livingston and good operational cash flow from the continuing
operations.
Strategy
As previously stated we shall concentrate on the development of the continuing
operations where we see many opportunities for profitable growth. The European
spread of our business provides an excellent platform to service large
international customers in particular those who are seeking to partner with
suppliers who are capable of delivering their needs across a wide product and
geographic spectrum. As described in the chief executive's review our key
accounts business has enjoyed excellent growth in 2004 and this was clearly
evidenced in the second half year where we saw increasing sales in each of our
geographic locations.
We have put a number of initiatives in place in the second half which will
enhance our service to our customers. We now have a settled and first class
management team with clear strategic objectives. We have established a 'one
Brammer' approach which all management have accepted and are implementing across
Europe. This includes branding, systems, and logistics. Our strategy has been
formulated across the headings of growth, costs, synergies and capability with
clear performance benchmarks over specific timescales. We have set out short and
longer term objectives with an overall time horizon of some five years.
Dividend
The board is recommending a final dividend of 3.3p (2003 3.0p). This makes a
total for the year of 4.8p (2003 4.5p) which is covered 2.4x by profit after tax
but before goodwill and exceptional items in respect of the continuing
operations (3.0x if Livingston's profit contribution is included). The final
dividend will be payable on 4 July 2005 to shareholders on the register at the
close of business on 10 June 2005.
People
I referred in the interim report to the board changes made earlier in the year
and I again state our gratitude to David Hollywood and Jean-Marie Fink who both
retired following many years of service to the group. Terry Garthwaite joined us
as a new independent non-executive director and we are already benefiting from
his considerable experience.
The board recently reviewed the results of an employee survey conducted across
the continuing operations and we were most encouraged by the improvements and
attitudes evident at all levels of the business. There is still much we can do
to improve further but I would like to express the board's appreciation to all
of our employees for their contribution and efforts throughout 2004.
The future
As this report indicates I believe the future for Brammer is bright after
several difficult years. Our performance in the second half of 2004 was on an
improving trend and the evidence to date in 2005 leads us to believe we shall be
able to demonstrate further good progress this year.
Chief executive's review
Overview
During 2004 we continued to strengthen the leading position of Brammer in the
European market. Following the disposal of the Livingston businesses at the end
of the first quarter of 2004 we have been able to concentrate on the exciting
opportunities available to us, supported by a stronger balance sheet and
enhanced management focus.
Continuing operations
Formerly known as Brammer Industrial Services, and now branded "Brammer" across
Europe, our operating business is the leading European supplier of technical
components and related services to the maintenance, repair and operations ("MRO
") markets. During 2004, revenues in our continuing business increased by 3% to
#270.8 million, whilst underlying profit (operating profit before goodwill,
exceptional items and interest) increased by 9% to #10.5 million. Profits
improved significantly on the continent but declined in the UK where, after a
poor first half, we are now seeing welcome improvement with second half growth
in revenues of 4% on a sales per working day ("SPWD") basis. Cash inflow from
continuing operating activities in 2004 was #12.7 million. Net operating assets
employed (excluding goodwill and deferred consideration) reduced by #4.1 million
to #48.2 million as we continued our planned reduction in working capital,
largely through an improvement in inventory turn. We expect to be able to
continue to generate more operating cash flow than operating profit for the next
several years as we improve inventory turn through managing our inventory on a
European basis.
Operating margins increased despite price pressure in the market, and
significant increases in input costs due to price increases in steel and energy.
At the end of the year headcount in continuing operations was 1,845, which was
54 higher than at the same time last year, having welcomed 13 new staff
following the acquisition of our Hungarian operation. Revenues per head
increased by 2% to #149,000 for the full year, following a 16% improvement last
year.
In the UK, although SPWD revenues declined by 3% for the year as a whole, as
weaker market conditions continued through the first half, management actions
stabilised the business with like-for-like turnover increasing steadily through
the balance of the year. Capital employed reduced by #2.6 million (15%) due to
improvements in inventory efficiency and the provision of service stock by
suppliers. We executed plans to improve the profitability of the Insites and, as
a result, the total contribution from Insites increased by 14%. Several new
contracts were won with customers such as Severn Trent Water, Lafarge, Smurfit,
Cegelec, Dalkia and Peugeot.
Despite a difficult economic climate, Germany's SPWD grew by 6% with an
improving trend throughout the year. Careful control of the cost base helped
increase operating profit by 24% compared with last year. Good progress was
made on key accounts, with revenues in this segment up 25%. We won a
significant pneumatics contract with Volkswagen across six locations and
additional contracts with Harry Brot, TRW, Smurfit and GKN. We continued to
broaden our product range across the whole customer base with mechanical power
transmission products growing by 24% and linear motion by 31%. Further
headcount reductions of 17 to 388 resulted in productivity improvement of 12% as
measured by sales per head.
In France, SPWD increased by 4% as the investment made last year in new product
introduction and Insites began to take effect. Key accounts grew by 9%,
contract wins with GKN, Smurfit, Fromageries Bel, Nestle and Lactalis making a
significant contribution. Fluid power continued to contribute to our growth,
being 37% up on 2003. This growth, together with the effect of cost reduction
measures taken in 2003, helped increase operating profit by 27%. We increased
our Insites from 10 to 13 and revenues through Insites increased by 17% compared
with 2003.
In Spain, despite the planned shedding of low margin original equipment
manufacturers ("OEM") business, SPWD grew 4%, again with an improvement in the
rate of growth throughout the year. We continued to increase our sales to the
MRO market (up 6%) reducing further our exposure to the more cyclical OEM
marketplace (down 0.2%). New contracts were won with Coagro, Robert Bosch,
Cervezas Damm, GKN and Smurfit. Sales of the seals product group grew by 31%
and, at the year end, we reinforced the pneumatics range, as a development of
our first pan-European supply contract with SMC the Japanese pneumatics
manufacturer.
In the Netherlands SPWD were up 2%, with good growth in MRO sales contributing
to a 4 percentage point improvement in the gross profit margin. Several new
contracts were won including Smurfit, Kamp's bakery, SEW, Corus and the Dutch
Railway. We introduced pneumatics along with a number of other smaller product
ranges. A new branch was opened at Spankeren.
Strategy
We have established a strategic plan and detailed objectives for the next 24
months under the following headings
Growth
* Our first priority is growth to build on our strong market position - we
have twice the revenues of our nearest competitor. We believe we have a 10%
share of the Euro2 billion Western European MRO aftermarket for bearings. By
contrast, we have a little over 1% of the Euro18 billion aftermarket
represented by the rest of our product range. In total, we believe that
this translates to around 2% market share of our chosen market place, and
represents an attractive cross-selling opportunity to broaden the range of
products supplied to our major bearing customers. In addition we are the
only company which can offer a "one stop shop" European supply position to
both our customers and suppliers.
* We seek to build customer relationships with the increasing number of
major European groups which are focusing on supplier rationalisation to
establish a single source of supply across Europe. Revenues through our
contracted European accounts grew 21%. In addition the two new contracts
with Smurfit and GKN produced additional revenues in the second half, with
significant further growth available through to 2006. We strengthened our
key account business development team in the centre as well as within each
country.
* We have now built teams in each country to develop the Insites strategy
and provide added value opportunities for our customers.
* We continue to refine our marketing approach as the national and European
expert in each of the most attractive market segments in our industry.
* We continue to seek attractive acquisition candidates which will bolt on
to our existing operations.
Costs
* Our new European purchasing director has continued to build strong
relationships with our suppliers. We are concentrating our purchases with a
smaller number of suppliers, thereby gaining price improvements as well as
enhanced supplier marketing support in the field.
* We established our first pan-European partnership agreement with SMC, the
Japanese pneumatics manufacturer. Total pneumatics sales grew 23%. This
relatively new product range now accounts for 5% of revenues.
* We are now sourcing basic ironware products direct from China for
distribution throughout Europe.
* We have set up a cross functional team to identify and roll out best
practice in all of our operations, continuing our quest to improve
productivity and reduce costs as a percentage of revenues.
Synergies
* We have embarked on a programme to standardise our approach at each
location in Europe in all areas from product range, through sales and
customer service skills, to branding and marketing. Each of our businesses
will associate the Brammer brand with the local name during 2005 and, during
2006, businesses in each country will be renamed Brammer.
* We continue to evolve our system of key performance indicators which will
lead to best practice being introduced in each branch, and a more
homogeneous level of service in each territory, with resultant productivity
improvements and quality of service assurance.
* Our Master Data Management team, led by our European IT director, has
begun the process of establishing one common European unique part number for
each of over two million part numbers in our range, further enhancing our
ability to manage, sell and distribute our inventory on a European basis.
This work will provide the foundation for one integrated European IT and
supply chain system.
* The value of "Brammer Inline", our system which allows product matching,
stock visibility and internal procurement was demonstrated by over 20,000
internal transactions being made from a matched database of over 150,000
products, saving on both procurement costs and purchase price and ultimately
reducing inventory levels.
Capability
* All of our people have access to a purpose built e-learning programme
which
* Informs them of the strategy and priorities of the business
* Introduces all the businesses across the group
* Introduces them to key customers and suppliers
* Provides a basic knowledge of all of our products and services
Already over 50% of our staff have started this programme, which we expect to
help significantly improve our technical and selling skills.
* Our key account toolkit covering strategy, processes, customer management
tools, relationship management and user accreditation is now being used in
all territories to win new business and add value to existing customer
relationships, and is about to be introduced as an e-learning module.
* Our annual opinion survey carried out in November registered significant
improvements in the areas of Job Satisfaction and Leadership and
Communication following the implementation of intensive action plans derived
from the results of the 2003 survey.
The future
We continue to build on our strong presence within Europe and anticipate further
gains in market share in an otherwise fragmented market place. Growth in
European wide key accounts and new product launches should ensure we continue to
grow at a faster rate than the market. In addition, we expect our cash flow to
continue to exceed our operating profit, providing the ability to take advantage
of the acquisition opportunities available to us as we lead the market
consolidation.
Financial review
Overview
Having completed the restructuring of the group through the disposal of the
Livingston businesses our clear focus is on the development of the Brammer
distribution business. Our continuing operations have improved further on the
encouraging results reported on at the half year.
Disposal of businesses
On 31 March 2004 the group completed the disposal of the European Livingston
Calibration business to Air Liquide for a consideration of Euro31.0 million
(#20,653,000) after adjustments for debt and cash.
Also on 31 March 2004 the group completed the disposal of Livingston Rental for
an initial cash consideration of #6.9 million, deferred cash payments of #3.0
million receivable 13 months after completion and #2.5 million receivable 18
months after completion, and a further amount (up to #2.8 million) depending on
the proceeds of sale of impaired assets. The group also retained a 25% stake in
Livingston Rental, which the buyer has a right to redeem at between #0.5 million
and #2.0 million depending on the date of the actual repayment of the #2.5
million deferred cash payment.
The group took exceptional charges in 2003 for asset write-downs in respect of
these disposals and there are further charges in 2004 primarily for deal fees
and restructuring the residual business.
Turnover
Our turnover decreased by 17% in the year due to the disposal of the Livingston
businesses. Turnover of the continuing operations increased by 3% of which
continental Europe accounted for a 7% increase and the UK a 2% fall. At
constant exchange rates our continuing business turnover increased by 4%.
Profit
The result for the year was a profit on ordinary activities after tax of #0.9
million (2003 #36.3 million loss). Group profit before goodwill, exceptional
items and after interest was up 36% in the year at #9.5 million (2003 #7.0
million).
Exceptional charges
This year's accounts include an exceptional charge of #3.7 million as shown
below.
#'m
Restructuring - continuing operations 0.9
Disposal costs / loss on disposal - Livingston 2.8
Total exceptional 3.7
The restructuring of #0.9 million results from action to re-size overheads,
particularly for central functions, to reflect a simplified group structure
following the sale of Livingston.
Goodwill
Goodwill in the balance sheet stands at #35.2 million at the end of the year
(2003 #49.6 million). In 2004, goodwill increased by #1.1 million in respect of
acquisitions, reduced by #2.3 million of amortisation, #12.9 million in respect
of disposals and a further #0.3 million of exchange.
Trading during the year
Group turnover decreased by 17% during the year. Group profit before goodwill,
exceptional items, interest and tax ("underlying profit") was #12.1 million
(2003 #10.5 million), of which #6.7 million was delivered in the first half and
#5.4 million in the second half (see below).
Continuing operations Livingston
First Second Full First Second Full
half half year half half year
#'m #'m #'m #'m #'m #'m
2004
Turnover 136.9 133.9 270.8 19.3 0.0 19.3
Underlying profit 5.1 5.4 10.5 1.6 0.0 1.6
2003
Turnover 133.9 128.6 262.5 44.9 42.1 87.0
Underlying profit 5.3 4.4 9.7 (0.9) 1.7 0.8
In 2004 all the on-going costs incurred by the central functions have been
allocated to continuing operations as this reflects the future structure of the
group. The comparatives for 2003 have been revised accordingly.
Continuing operations turnover was up 3% on 2003 and underlying profit was up 9%
in the year. For the second half continuing operations turnover was up 4% with
a 23% increase in underlying profit.
Interest
The interest charge for the year of #2.6 million (2003 #3.5 million) represents
an effective interest rate on average net borrowings of 4.2% (2003 4.7%). Our
profit before goodwill, exceptional items and tax cover of interest is 4.6x
compared to 3.0x in 2003.
Tax
The tax charge for the year is #2.7 million. The tax effect of expenses not
allowable for tax purposes amounted to #2.1 million and resulted principally
from goodwill and fees incurred in the disposal of the Livingston businesses.
Cash flow
2004 2003
#'m #'m
Net cash inflow from operating activities 18.7 29.4
Net capital expenditure (purchases net of disposals) (6.2) (8.9)
Operational cash generation 12.5 20.5
Acquisitions (0.1) (0.4)
Deferred consideration (4.1) (20.7)
Disposals 18.6 0.4
Exchange (2.4) (6.7)
Interest, tax, dividends and other (1.8) (10.0)
Movement in net debt 22.7 (16.9)
Net debt decreased by #22.7 million from #79.7 million to #57.0 million, as
shown above.
Net cash inflow from operating activities of #18.7 million (including a working
capital reduction of #3.3 million) was reduced by #6.2 million of net purchases
of tangible fixed assets (2003 #8.9 million), increased by the receipt of a net
#18.7 million from the disposal of Livingston and reduced by a payout of #4.1
million for deferred consideration, primarily for KNS, and #0.2 million for
other acquisitions. Average net borrowings in 2004 were #62.7 million compared
to #74.6 million in 2003.
Treasury
The group does not enter into speculative currency transactions but from time to
time will use derivative financial instruments to hedge particular transactions
back into operating companies' domestic currencies.
The companies in the group mostly trade within their domestic markets in their
local currency. Where companies trade into export markets, this is generally at
the behest of domestic customers who trade globally. Group companies account in
their local currency, principally either sterling or euros, and at 31 December
2004 #8.3 million (11%) of the group's tangible operating assets were held in
sterling and #65.1 million (89%) in euros.
Net operating assets and financing by currency at 31 December 2004 were as
illustrated below.
Currency Net operating assets Financing Net assets employed
#'m #'m #'m
Sterling 8.3 0.0 8.3
Euro 65.1 (57.1) 8.0
73.4 (57.1) 16.3
The consolidated net trading profit before goodwill, exceptional items and
interest covers the interest payable 4.6x and net worth is #16.3 million (2003
#20.2 million).
The directors consider the group to have adequate resources to continue
operations for the foreseeable future and therefore continue to use the going
concern basis in the preparation of the financial statements.
We will continue to focus on generating cash to enable us to expand operations
in Europe, organically and by acquisition.
Earnings per share
Earnings per share before goodwill, amortisation and exceptional items rose from
11.8p in 2003 to 13.8p in 2004. Basic earnings per share were 1.9p (2003 75.9p
loss).
International Financial Reporting Standards ("IFRS")
All European Union listed companies are required to prepare their consolidated
financial statements in accordance with IFRS for accounting periods beginning on
or after 1 January 2005. The group will therefore adopt IFRS for the financial
year ended 31 December 2005 including the 2005 interim accounts.
The areas of greatest impact on the group have been identified as the
non-amortisation of goodwill, pensions, share based payments and the treatment
of accrued dividends. The group has conducted training, assigned resources and
has a procedure in place to ensure full compliance with IFRS.
Brammer Preliminary results announcement
Unaudited consolidated profit and loss account for the year ended 31 December
2004
2004 2004 2004 2003 2003 2003
Continuing Discontinued Total Continuing Discontinued Total
Businesses Businesses Businesses Businesses
#'000 #'000 #'000 #'000 #'000 #'000
Turnover 270,786 19,305 290,091 262,512 86,960 349,472
Cost of sales (189,337) (11,710) (201,047) (182,040) (55,088) (237,128)
Exceptional items - - - - (25,178) (25,178)
Total cost of sales (189,337) (11,710) (201,047) (182,040) (80,266) (262,306)
Gross profit 81,449 7,595 89,044 80,472 6,694 87,166
Distribution costs (56,700) (626) (57,326) (55,200) (12,864) (68,064)
Exceptional items - - - - (1,147) (1,147)
Total distribution costs (56,700) (626) (57,326) (55,200) (14,011) (69,211)
Administrative expenses
before amortisation of goodwill (14,147) (5,331) (19,478) (15,758) (18,191) (33,949)
Exceptional items (850) - (850) (2,235) (4,720) (6,955)
(14,997) (5,331) (20,328) (17,993) (22,911) (40,904)
Amortisation of goodwill (2,089) (201) (2,290) (2,046) (904) (2,950)
Total administrative expenses (17,086) (5,532) (22,618) (20,039) (23,815) (43,854)
Net operating expenses (73,786) (6,158) (79,944) (75,239) (37,826) (113,065)
Operating profit / (loss) 7,663 1,437 9,100 5,233 (31,132) (25,899)
Loss on disposal of discontinued operations (2,833) -
Share of associates' operating (loss) / profit (92) 149
Amortisation of goodwill in associates (2) (10)
Profit / (loss) on ordinary activities before interest 6,173 (25,760)
Net interest payable (2,621) (3,471)
Profit on ordinary activities before goodwill, 12,148 10,480
exceptional items and interest
Interest (2,621) (3,471)
9,527 7,009
Goodwill (2,292) (2,960)
Exceptional items (3,683) (33,280)
Profit / (loss) on ordinary activities before tax 3,552 (29,231)
Tax charge on profit / (loss) on ordinary activities (2,660) (7,086)
Profit / (loss) on ordinary activities after tax 892 (36,317)
Dividends (2,261) (2,117)
Retained loss for the financial year (1,369) (38,434)
Earnings per share
Basic 1.9p (75.9)p
Diluted 1.9p (75.9)p
Basic before goodwill amortisation and exceptional items 13.8p 11.8p
Dividend per share 4.8p 4.5p
Brammer
Unaudited statement of group total recognised gains and losses for the year
ended 31 December 2004
2004 2003
#'000 #'000
Profit / (loss) on ordinary activities after tax 892 (36,317)
Exchange differences on foreign currency net investments (2,421) 7
Total recognised losses for the year (1,529) (36,310)
Prior year adjustment - 1,579
Total losses recognised since last annual report (1,529) (34,731)
Unaudited consolidated balance sheet at 31 December 2004
2004 2003
#'000 #'000
Fixed assets
Intangible assets 35,216 49,569
Tangible assets 11,924 23,783
Investment in associates - 478
47,140 73,830
Current assets
Stock 45,862 51,018
Debtors 57,069 70,961
Cash and deposits 8,320 12,740
111,251 134,719
Creditors - due within one year (86,623) (118,465)
Net current assets 24,628 16,254
Total assets less current liabilities 71,768 90,084
Creditors - due after more than one year (51,996) (64,224)
Provisions for liabilities and charges (3,427) (5,707)
Net assets employed 16,345 20,153
Capital and reserves
Called up share capital 9,573 9,573
Share premium account 3,552 3,552
Profit and loss account 3,220 7,028
Equity shareholders' funds 16,345 20,153
Brammer
Unaudited consolidated cash flow statement for the year ended 31 December 2004
2004 2003
#'000 #'000
Profit / (loss) on ordinary activities before interest 6,173 (25,760)
Accrued element of exceptional items - 2,474
Depreciation and impairment of tangible fixed assets 2,806 45,450
Amortisation of goodwill 2,292 2,960
Charge in respect of own shares 169 193
11,440 25,317
Share of associates' operating (loss) / profit 92 (149)
Loss on sale of investment 2,833 -
Loss / (profit) on sale of fixed assets 1,040 (1,422)
15,405 23,746
Movement in working capital 3,302 5,631
Net cash inflow from operating activities 18,707 29,377
Returns on investments and servicing of finance
Interest received 336 126
Interest paid (2,843) (3,479)
(2,507) (3,353)
Tax received / (paid) 2,795 (567)
Capital expenditure
Purchase of tangible fixed assets (8,760) (23,758)
Sale of tangible fixed assets 2,564 14,848
(6,196) (8,910)
Acquisitions and disposals
Purchase of subsidiaries and businesses (58) (59)
Net cash acquired (86) 213
(144) 154
Investment in associated undertaking - (520)
Deferred consideration paid (4,061) (20,729)
(4,205) (21,095)
Disposal of interest in associated undertaking - 377
Disposal of interest in subsidiaries 25,431 -
Net cash sold (6,781) (37)
14,445 (20,755)
Equity dividends paid (2,117) (2,117)
Net cash inflow / (outflow) before management of liquid resources and financing 25,127 (6,325)
Management of liquid resources
Deposits 111 (2,091)
Financing
(Repayment of loans) / new loans taken out (24,803) 5,607
Capital element of finance leases (533) (158)
Purchase of own shares (187) (771)
Net cash (outflow) / inflow from financing (25,523) 4,678
Decrease in cash (285) (3,738)
Cash movement from increase / (decrease) in debt and lease financing and liquid resources 25,225 (3,358)
24,940 (7,096)
New finance leases (144) (87)
Loans sold / (acquired) 271 (3,074)
Exchange movements (2,389) (6,712)
Movement in net debt 22,678 (16,969)
Net debt at 31 December 2003 (79,719) (62,750)
Net debt at 31 December 2004 (57,041) (79,719)
Notes to the accounts
1 Segmental analysis
Continuing operations Livingston Total
2004 2003 2004 2003 2004 2003
Restated Restated Restated
#'000 #'000 #'000 #'000 #'000 #'000
Turnover 270,786 262,512 19,305 86,960 290,091 349,472
Profit before goodwill, exceptional 10,510 9,663 1,638 817 12,148 10,480
items and interest
Goodwill (2,091) (2,056) (201) (904) (2,292) (2,960)
Exceptional items (850) (2,235) (2,833) (31,045) (3,683) (33,280)
Profit / (loss) before interest 7,569 5,372 (1,396) (31,132) 6,173 (25,760)
Interest (2,621) (3,471)
Profit / (loss) before tax 3,552 (29,231)
Net operating assets excluding goodwill 48,197 52,326 - 11,054 48,197 63,380
and deferred consideration
Capitalised goodwill 35,216 36,065 - 13,504 35,216 49,569
Deferred consideration (2,961) (7,166) - - (2,961) (7,166)
Net operating assets 80,452 81,225 - 24,558 80,452 105,783
Net debt (57,041) (79,719)
Dividends (1,580) (1,436)
Net tax (5,486) (4,475)
Net assets employed 16,345 20,153
In 2004 all the on-going costs incurred by the central functions have been
allocated to continuing operations as this reflects the future structure of the
group. The comparatives for 2003 have been revised accordingly.
2 Exceptional items
The items treated as exceptional items (#3,683,000) relate to the loss on the
sale of the Livingston businesses (#2,833,000) and restructuring (#850,000)
resulting from action to re-size overheads, particularly for central functions,
to reflect a simplified group structure following the sale of Livingston.
3 Earnings per share
2004 2003
Earnings Weighted Earnings / Earnings Weighted Earnings /
average (losses) per average (losses) per
number of share number of share
shares shares
#'000 '000 Pence #'000 '000 Pence
Profit for the financial year before 6,616 5,632
exceptional items and amortisation of
goodwill
Average number of shares in issue 47,865 13.8 47,865 11.8
Exceptional items (3,683) (7.6) (33,280) (69.6)
Taxation adjustment on exceptional 251 0.5 (5,709) (11.9)
items
Amortisation of goodwill (2,290) (4.8) (2,950) (6.2)
Amortisation of goodwill - associates (2) - (10) -
Profit / (loss) for the financial 892 1.9 (36,317) (75.9)
year
Average number of shares in issue 47,865 1.9 47,865 (75.9)
Dilutive effect of options 66 -
47,931 1.9 47,865 (75.9)
Supplementary basic earnings per share figures have been calculated to exclude
the effect of exceptional items and goodwill amortisation. The adjusted numbers
have been provided in order that the effects of exceptional items and goodwill
amortisation on reported earnings can be fully appreciated.
4 Preliminary announcement
A copy of the preliminary announcement is available for inspection at the
registered office of the company, Claverton Court, Claverton Road, Wythenshawe,
Manchester, M23 9NE and the offices of Citigate Dewe Rogerson Ltd, 3 London Wall
Buildings, London Wall, London, EC2M 5SY. It will also be available on the
company's web site, www.brammer.biz, from 7 March 2005.
5 Final dividend
Relevant dates concerning the payment of the final dividend are
Annual general meeting 18 May 2005
Record date 10 June 2005
Payment date 4 July 2005
6 Statutory accounts
This unaudited preliminary announcement is not the statutory accounts. The
statutory accounts for the year ended 31 December 2004 will be finalised on the
basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the company's annual general meeting.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR ILFETVRILIIE
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