RNS Number:3048K
Hacas Group PLC
10 May 2000
HACAS Group PLC ("HACAS")
(The leading UK social housing consultancy with offices in
London and Edinburgh)
INTERIM RESULTS FOR THE PERIOD ENDED 31 MARCH 2000
HIGHLIGHTS
Six months to 31 2000 1999 Change
March:
Turnover #2.91m #2.20m +32%
Profit before tax #976,081 #473,950 +106%
Earnings per share 2.93p 1.27p +131%
(basic)
Dividend 0.55p 0.50p +10%
* Core consultancy business shows substantial growth
* Exceptional profit on disposal of residential property of
#286,000
* Work on 364 projects for 213 clients during the first
half for:
* 163 housing associations
* 35 local authorities
* 15 other clients
* HACAS Asset Management Services growing rapidly
* Actively looking at acquisitions
* Demand for the Group's broad range of services increasing
For further information:
Julian Ashby (Chairman) 020 7609 9491
Brian Coleman-Smith / Amanda Clewlow 020 7786 9600
Binns & Co Public Relations
Background note:
The Market
The social housing sector is the Group's primary operating
market. The sector comprises housing associations, local
authority and other public sector housing providers together
with the related government departments, regulators, trade
bodies, suppliers and funders. This sector owns over 25% of
the UK housing stock.
The HACAS group advises some of the largest local authorities
(such as Birmingham City Council) and a majority of the
largest housing associations. The 500 most regular housing
association clients hold assets ranging between #50 million
and #1.4 billion. Other clients include government
departments, Housing Corporation, Scottish Homes, National
Audit Office and the Audit Commission.
Government policy encourages area regeneration and substantial
investment in repairing and modernising local authority
housing. This often involves the transfer of the local
authority's housing stock to a housing association and
substantial funding from the commercial loans market. It is
anticipated that some #13 billion of such funding will be
required over the next ten years. This is a key area of the
Group's work.
HACAS carries out research for government departments and
regulators and also advises financial institutions, commercial
companies involved in the social housing and residential
property.
HACAS Group PLC ("HACAS")
(The leading UK social housing consultancy with offices in
London and Edinburgh)
INTERIM RESULTS FOR THE PERIOD ENDED 31 MARCH 2000
Chairman's Statement
Results
We are pleased to report interim results that show a
significant increase on the comparable period last year. In
the first half of the year we have worked on 364 projects for
163 housing associations and charities, 35 local authorities
and 15 other clients. Turnover is up 32%, profits before tax
from core businesses have increased by 46%. In addition,
profits on property disposals have made a substantial but non-
recurring contribution of #286,000 and this has helped to
boost earnings per share by 131%. Net cash at 31 March is up
56% to # 4.4 million.
Dividend
In the light of the good progress, the Directors have declared
an interim dividend of 0.55p per share (a 10% increase on last
year) payable on 5 July to shareholders on the register at 22
May.
Business Development
Our mainstream consultancy work for housing associations,
local authorities and government agencies has grown in each of
these areas. HACAS Asset Management Services continues to
grow rapidly and HACAS Exchequer Services (our SFA-registered
subsidiary) continues to make a useful contribution.
The planned disposals within our residential property
subsidiary have made a substantial contribution to first half
profits. By the end of the current financial year we expect
the number of remaining properties to be reduced to four or
five and this contribution from disposals will not therefore
be repeated.
Outlook
The second half has begun well. The publication of the
government's Green Paper on housing has confirmed the
continuation of its housing strategies to which the company is
well placed to contribute. At a time of rapid change, the
demand for our broad range of services is increasing.
We are actively looking at the acquisition of other
consultancies that would complement our range of services. If
successful, these should lead to a further enlargement of the
Group. We have also decided to make a number of small
investments in areas where our consultancy knowledge gives us
a particular insight. We expect to make two such investments
in the current financial year.
Staffing
We are a people business and our continued success is due to
the skill and commitment of our staff. We have now
implemented the planned share option scheme covering all
employees. We thank them all for their contribution to the
company.
Julian Ashby
Chairman
9 May 2000
Unaudited Consolidated Profit and Loss Account
for the 6 months to 31 March 2000
Six Months Six Months Year to
to 31 to 31 30
March 2000 March 1999 September
1999
TURNOVER - CONTINUING 2,914,707 2,198,636 4,597,608
OPERATIONS
Rental income 27,778 77,767 140,015
Net operating expenses (2,310,846) (1,852,136) (3,747,711)
Profit on property 286,450 - 43,890
disposals
---------- ---------- ----------
OPERATING PROFIT 918,089 424,267 1,033,802
Interest receivable 57,942 49,683 93,841
---------- ---------- ----------
PROFIT ON ORDINARY
ACTIVITIES BEFORE
TAXATION 976,031 473,950 1,127,643
Tax on ordinary
activities (219,415) (147,443) (378,241)
Ordinary dividends (140,485) (127,714) (283,926)
---------- ---------- ----------
RETAINED PROFIT FOR 616,131 198,793 465,476
PERIOD
====== ====== ======
Earnings per share 2.93p 1.27p 2.90p
(basic)
Earnings per share 2.77p 1.21p 2.76p
(fully diluted)
Notes:
1. The figures for the year to 30 September 1999 are
extracted from the audited accounts for the group.
2. The figures for turnover - continuing operations and net
operating expenses - include an amount of inter-group
turnover. In the opinion of the Directors of HACAS Group
plc these amounts are not material and do not affect the
profit shown.
3. Earnings per share are based on the following number of
operating shares in issue:
Issued Fully Diluted
31 March 1999 25,795,230 27,009,523
30 September 1999 25,824,932 27,124,832
31 March 2000 25,824,932 27,314,789
4. A copy of this statement is being sent to
all shareholders. Further copies can be obtained from
HACAS, United House, North Road, London N7 9DP.
Group Balance Sheet
Unaudited Unaudited Audited at
at at 31 30
31 March March September
2000 1999 1999
Fixed assets
Investments 50,004 10,004 50,004
Tangible assets 1,001,279 1,659,380 1,971,785
Intangible assets (756,427) - (795,785)
--------- --------- ----------
294,856 1,669,384 1,226,004
--------- --------- ----------
Current assets
Work in progress 384,992 304,238 293,376
Debtors 1,032,551 773,120 996,971
Cash at bank and 4,403,039 2,553,636 2,828,580
in hand
--------- --------- ----------
5,820,582 3,630,994 4,118,927
--------- --------- ----------
Creditors: falling 1,576,464 1,032,744 1,117,842
due within one
year
--------- --------- ----------
Net current assets 4,244,118 2,598,250 3,001,085
Total assets less
current
liabilities 4,538,974 4,267,634 4,227,089
Provisions (72,000) - (72,000)
--------- --------- ----------
Totals 4,466,974 4,267,634 4,155,089
--------- --------- ----------
Capital and
reserves
Called up share 2,582,493 2,579,523 2,582,493
capital
Share premium 483,453 521,321 483,453
account
Profit and loss 1,207,413 324,329 591,012
account
Revaluation 193,615 842,461 498,131
reserve
--------- --------- ----------
Shareholders funds 4,466,974 4,267,634 4,155,089
--------- --------- ----------
END
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