TIDMBILB
RNS Number : 4614I
Bilby PLC
09 December 2015
9 December 2015
Bilby Plc
("Bilby" or the "Group")
Unaudited Interim Results
Bilby Plc (AIM: BILB.L), the holding company for gas, electrical
and building services companies, has today issued its unaudited
interim results in respect of the six months to 30 September
2015.
Financial highlights
-- Revenues increased 103% to GBP11.62m (H1 2014: GBP5.72m)
-- Operating profit before share based payments, amortisation of
acquisition intangibles and acquisition costs increased 23% to
GBP0.86m (H1 2014: GBP0.70m)
-- Adjusted profit before tax increased (before share based
payments of GBP0.05m, amortisation of acquisition intangibles of
GBP0.18m and acquisition costs of GBP0.53m) increased by 20.3% to
GBP0.83m (H1 2014: GBP0.69m)
-- Reported profit before tax of GBP0.07m (H1 2014: GBP0.69m)
-- Adjusted EPS of 2.17p
-- Net debt of GBP4.29m including cash of GBP1.09m as at 30
September 2015 (at 31 March 2015: cash of GBP1.77m)
-- Maiden interim dividend of 0.75p per ordinary share
Notes:
Six months comparative figures to 30 September 2014 are based on
management estimates for the trading performance of P & R
Installation Limited trading as a private company.
Adjusted earnings per share excludes the effect of the share
based payment charge and amortisation of acquired intangibles and
acquisition costs. The board are of the opinion that this provides
a more appropriate view of the Group's underlying performance.
Operational highlights
-- In July 2015, Bilby acquired Purdy Contracts ("Purdy"), an
award winning gas and electrical contractor based in Essex. The
acquisition complements P&R Installation's ("P&R") services
and geographic presence
-- New contract wins for P&R including Royal Borough of
Greenwich, Hexagon Housing Association and Hyde Housing
Association.
-- New contract wins for Purdy including Peabody Housing and the London Borough of Hackney
-- The Group extended contracts with four existing long term clients
Post period highlights
-- P&R were awarded first place on a gas support framework
tender process for the South East Consortium (SEC). SEC are a
consortium of housing associations responsible for over 140,000
properties in South East England. The framework has the potential
to be the largest scope of prospective work in P&R's
history
-- Purdy were named the second supplier of choice for a similar
SEC framework for electrical works
-- Appointment of new Finance Director and the establishment of
a Managing and Business Development Director position
-- Current Bilby visible revenues for the next seven years in excess of GBP180m.
Phil Copolo, P&R Founder and Executive Deputy Chairman of
Bilby plc, said:
"I am pleased to announce that Bilby has made considerable
progress over the period. The Group has won new contracts and
extended the scope and size of existing contracts, whilst
successfully executing our buy and build strategy with the
acquisition of Purdy. I am delighted that Purdy is already
contributing significantly to the success of Bilby. We are
benefitting from shared synergies across Purdy and P&R as we
continue to win contracts based on our exceptional reputation for
high quality service. This reputation has helped lead to P&R
being awarded first place as preferred service provider for a SEC
gas framework. The framework covers a portfolio of over 140,000
properties in South East England, and represents a transformational
opportunity for the Group. P&R competed with 52 other companies
for the framework. Furthermore, Purdy were awarded second place for
a similar SEC framework for electrical work.
In addition to organic growth being achieved and targeted, we
continue to see significant opportunity for further acquisitive
growth in London and South East England and continue actively to
review a number of opportunities. Accordingly we look to the future
with confidence."
Enquiries
Bilby Plc 020 8269 3777
Phil Copolo, Executive Deputy Chairman
David Ellingham, Managing and Business Development Director
Panmure Gordon 020 7886 2500
(Nominated Adviser and Broker)
Mark Taylor
James Greenwood
Hudson Sandler 020 7796 4133
(Financial PR)
Charlie Jack
Emily Dillon
Note for Editors
Bilby Plc, the holding company for P&R Installation Company
Limited ("P&R") and Purdy Contracts Limited (Purdy), was
established to provide a platform for strategic acquisitions in the
gas heating, electrical and building services industries. Bilby's
first acquisition was P&R, an established and award winning
provider of gas heating appliance installation and maintenance
services.
Bilby plc (AIM: BILB.L), is traded on the AIM Market of the
London Stock Exchange. For further information, visit
www.bilbyplc.com.
P&R Installations
P&R provides services predominately to local authorities and
housing associations across London and South East England and is
responsible for over 100,000 properties. The experienced management
team places emphasis on the provision of a high level of service
through which P&R has developed long standing relationships
with its customers who include the Guinness Partnership, London
& Quadrant, Hexagon and the Royal Borough of Greenwich.
Headquartered in Sidcup, Kent, P&R currently employs
approximately 155 staff.
Purdy Contracts
Purdy operates predominantly as a gas and electrical contractor
and is based near Waltham Abbey, Essex. Purdy was established in
1984 as a gas and electrical maintenance and installation
contractor. Today Purdy carries out all types of gas and electrical
work to both commercial and domestic markets and is predominantly
focused on social housing and local authority customers. The
business works closely with a number of long-term clients including
Homes for Haringey, the London Borough of Enfield, Aston Group,
Central Bedfordshire Council and Hyde Housing. Purdy provides
maintenance services to in excess of 130,000 properties and
currently employs approximately 182 full time staff.
Chairman's Statement
We have delivered a strong performance over the first six months
of this financial year.
Bilby's stated strategy is to capitalise on the significant
market opportunity for gas, electrical and building services
primarily for housing associations and local authorities in London
and South East England. Our considerable progress against this
strategy has been achieved through: increasing our market share as
we expand our service offering and customer base organically and
through our buy and build strategy.
In July 2015, we acquired Purdy Holdings Limited, representing
our first acquisition since IPO. Purdy is an award winning gas and
electrical contractor based in Essex. Since acquisition, we have
successfully integrated Purdy into the Bilby Group and on behalf of
the Board I would like to thank all of our employees for the
tremendous hard work that has made the integration so
successful.
Since the period end, the Group's focus on high standards of
service has again been rewarded with new customer wins for both
P&R and Purdy. We were also extremely pleased to announce that
P&R was awarded first place for a significant framework tender
process for gas support work for the South East Consortium (SEC).
This will be a transformational opportunity for the Group. To
reflect this increasing scale and opportunity for Bilby, as
announced on the 2 December 2015 we are delighted to welcome
Katherine O'Reilly to the Board of Bilby as Finance Director from 1
January 2016. David Ellingham has been appointed to the new role of
Managing and Business Development Director where he will continue
focusing on new acquisition opportunities.
Financial results
In the six month period ended 30 September 2015, and reflecting
three months contribution from Purdy, Group revenue increased 103%
to GBP11.62m (H1 2014: GBP5.72m), with operating profit increasing
to GBP0.86m (H1 2014: GBP0.7m). Adjusted profit before tax (before
share based payments of GBP0.05m, amortisation of acquisition
intangibles of GBP0.18m and acquisition costs of GBP0.53m was
GBP0.83m (H1 2014 GBP0.69m). Reported profit before tax was
GBP0.07m (H1 2014: GBP0.69m).
The timing of collection of receivables remains challenging.
However, following the implementation of tighter financial systems
with our clients, cash collections have improved since the period
end. From 1st October 2015 to date the Group has collected in
excess of GBP6.8m against the outstanding trade debtors.
At 30 September 2015 the Group had net debt of GBP4.29m
including cash of GBP1.09m (31 March 2015: cash of GBP1.63m
Note: Six months comparative figures to 30 September 2014 are
based on management estimates for the trading performance of P
& R Installation Limited trading as a private company.
Dividend
The Board continues to believe in adopting a progressive
dividend policy. This will enable us to award investors whilst
retaining capital for investment in our longer term growth. I am
therefore pleased to announce we will be paying an interim dividend
of 0.75p for the six months ended 30 September 2015. The
ex-dividend date will be 17 December 2015, the record date 18
December 2015 and the payment date 15 January 2016.
This has been an important and significant six months for the
Group, during which we have demonstrated our ability to identify,
evaluate and take advantage of opportunities to secure growth, both
organically and through our buy and build strategy. We look forward
to building on this momentum in the second half of our financial
year.
(MORE TO FOLLOW) Dow Jones Newswires
December 09, 2015 02:00 ET (07:00 GMT)
Sangita Shah, Non-Executive Chair
9 December 2015
Executive Deputy Chairman's review
Financial performance
During the period, the Group has continued to deliver strong
organic growth through winning a number of new contracts in its
core London and South East market whilst extending the scope and
size of existing contracts.
Revenue by operating segment
6 months 14 months
to to
30/09/2015 31/03/2015
Unaudited Audited
GBP'000 GBP'000
Gas maintenance 5,121 6,522
Building services 4,078 8,137
Electrical services 2,351 -
Trade counter 70 248
11,620 14,907
----------- -----------
Progress in the period has continued to demonstrate the inherent
strength of Bilby's scalable business model and the attractive
growth fundamentals that the sector continues to present. These
results also reflect a three month contribution from Purdy Holdings
Limited ("Purdy").
P&R Installation
Over the six month period ended 30 September 2015, P&R has
performed well, winning a number of new contracts with new
customers as well as extending existing contracts with long-term
customers. P&R continue to work with Hexagon Housing, Central
and Cecil, Guinness Partnership, and the recognition for our focus
on quality has led to P&R providing a wider range of services
in a number of areas for these customers.
As previously announced, P&R recently commenced work for the
Royal Borough of Greenwich under a new contract which was
originally expected to start in August 2015. During the delay,
P&R did however undertake some additional but lower margin work
with the Royal Borough of Greenwich. Based on anticipated work
under existing contracts, as previously stated this could result in
P&R's trading performance being marginally below market
expectations for the year ending March 2016.
Since the period end, P&R has achieved first place on a
significant framework tender process for gas support work for the
South East Consortium (SEC), a consortium of housing associations
responsible for over 140,000 properties in South East England.
P&R was ranked as the first placed contractor in front of 52
other contractors. This offers P&R the potential for the
largest scope of prospective work in its history. The framework
period is four years, with contracts starting in 2016 and able to
run for a period of up to seven years.
Purdy
Purdy was acquired by the Group in July 2015 for an initial cash
payment of GBP6.57 million together with the issue of 1,250,000 new
Bilby ordinary shares at a price of 80 pence per share and the
issue of a GBP0.50 million Convertible Loan Note (the "Loan Note").
The Loan Note is to be paid or converted into new ordinary shares
in July 2017. The associated cost of the acquisition of Purdy were
GBP527k.
Following the acquisition of Purdy, we are pleased to confirm
that the integration has been a success. Bilby is already
benefitting from increased scale and operational presence through
improved purchasing power. Additionally there is now the ability
for P&R and Purdy to qualify to tender for larger contracts
that have minimum pre-qualification revenue requirements. Given the
complementary nature of Purdy's geographical markets and service
offerings, P&R and Purdy are capitalising on opportunities to
cross sell across their customer bases.
Since the acquisition, Purdy has strengthened its trading base
further with a major contract win with the London Borough of
Hackney. The major new contracts won with Peabody Housing and the
London Borough of Barking and Dagenham announced at the time of
acquisition, are progressing well. The pilot project with the
London Borough of Barking and Dagenham for kitchen and bathroom
installation and associated works was successful. Post period,
Purdy was successfully awarded a long term contract with the London
Borough of Hackney as well being named the second supplier of
choice for a SEC electrical framework.
Buy and build strategy
We remain fully committed to our stated strategy of expanding
Bilby's businesses via both organic and acquisitive growth. Our
dedicated Business Development team is focused on developing
opportunities that meet our acquisition criteria, which is based
on: service synergies, revenue, geographic focus, management
strength, margins, cash flows and forward order book.
We continue to evaluate a number of acquisition prospects in our
target markets.
People
As recently announced, following the period end Katherine
O'Reilly has joined the Board as Finance Director. The new role of
Managing and Business Development Director was created to enable
David Ellingham, who previously held the position of Finance
Director, to focus on driving Bilby's buy and build strategy. In
December, Darren Dunnett stepped down as Managing Director of Bilby
to focus on servicing the expanding order book of P&R.
Personnel and workforce development are a priority for the Group
and Bilby has grown its health and safety team to work across both
P&R and Purdy. The Group also continues to invest in developing
a home-grown workforce through both Purdy's award winning "Purdy
Futures" programme and P&R's apprentice programme.
Outlook
The Group's businesses continue to tender for an increasing
number of contracts in London and South East England. Organic
growth expectations are underpinned by the exceptional reputations
of both P&R and Purdy as well as the mandatory nature of the
work, driven by government standards and legislation, such as the
Decent Homes Standard, the Right to Repair Scheme and applicable
gas safety regulations. Bilby continues to evaluate a number of
exciting acquisition opportunities. Accordingly, both our organic
and acquisitive strategies leave us well placed and give us
confidence for the future.
Phil Copolo, Executive Deputy Chairman
9 December 2015
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
For the six months ended 30
September 2015
6 months 6 months 14 months
to to to
30/09/2015 30/09/2014 31/03/2015
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Revenue 11,620 5,716 14,907
Cost of sales (9,159) (4,211) (11,093)
Gross profit 2,461 1,505 3,814
Other operating
expenses (1,597) (801) (1,814)
Operating profit
before share
based payment
charge and amortisation
of acquisition
intangibles 864 704 2,000
Share based payment (52) - -
charge
Acquisition costs (527) - -
Amortisation
of acquisition
intangibles (179) - -
Operating profit 106 704 2,000
Finance costs (37) (11) (20)
Profit before
tax 69 693 1,980
Income tax expense (14) (145) (428)
Profit for the
period attributable
to the equity
holders of the
group 55 548 1,552
============== =========== ===========
Earnings per
share
Adjusted 2.17p 6.10p
Basic 0.17p 6.10p
Diluted 0.17p 6.10p
Notes
1) Six months comparative figures are based on management
estimates for the trading performance of P & R Installation
Limited trading as a private company. The comparative figures are
unaudited
2) The Consolidated Statement of Comprehensive Income to 31
March 2015 is for a fourteen months period. The statement comprises
of the audited results of P & R Installation Limited for
fourteen months together with the Bilby Plc head office costs from
6 March 2015.
3) Included within the six months Consolidated Statement of
Comprehensive Income to 30 September 2015 is only three months
trading of Purdy Contracts Limited.
4) The Consolidated Statement of Comprehensive Income for the
six months ended 30 September 2015 includes a full six months of
Bilby Plc head office costs.
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
At 30 September 2015
30/09/2015 31/03/2015
Unaudited Audited
GBP'000 GBP'000
ASSETS
NON CURRENT
ASSETS
Intangible fixed assets 7,176 -
Property, plant and
equipment 1,383 524
TOTAL NON CURRENT ASSETS 8,559 524
------------ -------------
CURRENT ASSETS
Inventories 1,122 347
Trade and other receivables 8,779 4,033
Cash and cash
equivalents 1,095 1,770
TOTAL CURRENT
ASSETS 10,996 6,150
------------
TOTAL ASSETS 19,555 6,674
============ =============
EQUITY AND LIABILITIES
ISSUED CAPITAL
AND RESERVES
Share capital 3,425 2,931
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December 09, 2015 02:00 ET (07:00 GMT)
Share premium 4,670 1,213
Share-based payment
reserve 52 -
Merger reserve (2,499) (2,499)
Retained earnings 2,200 2,940
TOTAL EQUITY
ATTRIBUTABLE
TO EQUITY HOLDERS
OF THE PARENT
COMPANY 7,848 4,585
NON CURRENT LIABILITIES
Borrowings 4,315 -
Obligations under
finance leases 40 57
Deferred tax
liabilities 1,646 20
6,001 77
CURRENT LIABILITIES
Borrowings 998 31
Obligations under
finance leases 36 50
Current income
tax liabilities 404 448
Trade and other
payables 4,268 1,483
5,706 2,012
------------
19,555 6,674
============ =============
CONSOLIDATED STATEMENT OF CASH
FLOWS
For the six months ended 30 September
2015
6 months 14 months
to to
30/09/2015 31/03/2015
Unaudited Audited
GBP'000 GBP'000
NET CASH (USED IN)/GENERATED
FROM OPERATING ACTIVITIES (979) 95
------------ -------------
CASH FLOW FROM INVESTING
ACTIVITIES
Interest paid (37) (20)
Purchases of property,
plant and equipment (34) (22)
Acquisition of (7,570)
subsidiary, net
of cash acquired -
Proceeds on disposal
of property, plant
and equipment 60 376
NET CASH (USED IN)/FROM
INVESTING ACTIVITIES (7,581) 334
Cash flow from financing
activities
Repayment of
borrowings (35) (262)
Proceeds from
borrowings 4,795 -
Repayment of
Director loans - (4)
Capital element
of finance lease
payments (31) (134)
Issue of ordinary
share capital 3,951 2,500
Issue costs - (856)
Dividend paid (795) -
7.885 1,244
Net (decrease)/ increase
in cash and cash equivalents (675) 1,673
Cash and cash equivalents
at beginning of period 1,770 97
------------ -------------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD 1,095 1,770
------------ -------------
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
For the six months ended 30 September
2015 (unaudited)
Issued Share-based
share Share payment Merger Retained Total
capital premium reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance 1
April 2015 2,931 1,213 - (2,499) 2,940 4,585
Profit and
total comprehensive
income for
the period - - - - 55 55
Issue of
share capital 494 3,457 - - - 3,951
Share-based
payment charge - - 52 - - 52
Dividends
paid - - - - (795) (795)
Balance 30
September
2015 3,425 4,670 52 (2,499) 2,200 7,848
========= ========= ============ ========= ========== ========
For the fourteen months ended 31 March
2015 (audited)
Issued Share-based
share Share payment Merger Retained Total
capital premium reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance 1
February
2014 2,500 - - (2,499) 1,388 1,389
Profit and
total comprehensive
income for
the period - - - - 1,552 1,552
Issue of
share capital 431 2,069 - - - 2,500
Issue costs - (856) - - - (856)
Balance 31
March 2015 2,931 1,213 - (2,499) 2,940 4,585
========= ========= ============ ========= ========== ========
Notes to the consolidated financial statements
For the six months to 30 September 2015
1. Basis of preparation
Bilby Plc and its subsidiaries (together the Group) operate in
the gas heating, electrical and general building services
industries. The Company is a public limited company operating on
Alternative Investment Market (AIM) and is incorporated and
domiciled in England and Wales (registered number 09095860).The
address of its registered office is 6-8 Powerscroft Road, Sidcup,
DA14 5DT.
The Group's financial statements have been prepared on a going
concern basis under the historical cost convention and in
accordance with International Financial Reporting Standards
("IFRS's").
The interim financial information does not include all the
information and disclosures required in the annual financial
statements and should be read in conjunction with the Group's
annual financial statements, being the statutory financial
statements for Bilby Plc as at 31 March 2015, which have been
prepared in accordance with IFRS as adopted by the European
Union.
The interim financial information for the six months ended 30
September 2015 do not comprise statutory accounts within the
meaning of Section 434 of the Companies Act 2006. The interim
financial information has not been audited.
Significant accounting policies
The accounting policies adopted in the preparation of the
interim financial information is consistent with those set out in
the preparation of the Group's annual financial statements for the
14 month period ended 31 March 2015.
Going concern
The Directors have prepared detailed financial forecasts and
cash flows looking beyond 12 months from the date of these
consolidated financial statements. In developing these forecasts
the Directors have made assumptions based upon their view of the
current and future economic conditions that are likely to prevail
over the forecast period.
On the basis of the above projections, the Directors are
confident that the Group has sufficient working capital to honour
all of its obligations to creditors as and when they fall due.
Accordingly the Directors continue to adopt the going concern basis
in preparing these consolidated financial statements.
Publication of non-statutory financial statements
The results for the six months ended 30 September 2015 and 30
September 2014 are unaudited and have not been reviewed by the
auditor. The results for the 14 month period ended 31 March 2015 do
not constitute statutory financial statements as defined in section
434 of the Companies Act 2006, but have been derived from the full
audited financial statements for the 14 month period ended 31 March
2015. Statutory accounts for the 14 month period ended 31 March
2015, on which the auditors gave an audit report which was
unqualified and did not contain a statement under section 498(2) or
(3) of the Companies Act 2006, have been filed with the Registrar
of Companies.
The interim financial information has been prepared on the basis
of the same accounting policies as published in the audited
financial statements for the 14 month period ended 31 March 2015.
The annual financial statements of the Group are prepared in
accordance with International Financial Reporting Standards and
International Financial Reporting Interpretations Committee
("IFRIC") pronouncements as adopted by the European Union.
Comparative figures for 14 month period ended 31 March 2015 have
been extracted from the statutory financial statements for that
period.
2. Principal risks and uncertainties
The nature of the principal risks and uncertainties faced by the
Group have not changed significantly from those set out within the
Bilby Plc annual report and accounts for the period ended 31 March
2015.The main points are listed below:
-- The Group's trading operations are dependent on UK and Local
government policy with regard to expenditure on maintaining and
improving social housing and other public buildings;
-- The Group continues to compete effectively on gaining
additional new work as well as maintaining existing contracts;
-- The Group relies on recruiting, training, motivating and
retaining skilled and competent personnel to ensure continued
success;
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December 09, 2015 02:00 ET (07:00 GMT)
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