TIDMNMD
RNS Number : 3669Q
North Midland Construction PLC
08 April 2009
NORTH MIDLAND CONSTRUCTION PLC
2008 PRELIMINARY RESULTS
North Midland Construction PLC ("the Company") the UK provider of civil
engineering, building, mechanical and electrical services to public and private
organisations, announces preliminary results for the year ended 31 December
2008.
Highlights from the results and the Chairman's Statement:-
+---------------------------+---------------------+--------------------+
| | Year ended | Year ended |
| | 31 December 2008 | 31 December 2007 |
| | GBP'000 | GBP'000 |
+---------------------------+---------------------+--------------------+
| Revenue | 202,215 | 211,294 |
| Profit before tax | 2,875 | 3,120 |
| Profit for the year | 2,034 | 2,192 |
| Earnings per share | 18.65P | 16.54p |
| Dividends | 8.5p | 8.5p |
+---------------------------+---------------------+--------------------+
* Revenue and profits slightly reduced
* Significantly reduced result from North Midland Building, due to economic
climate
* Utilities Division returns to profit
* Severn Trent AMP5 Framework secured
* GBP100 million workload being carried forward into the New Year
* Proposed final dividend of 6.0p (2007 : 6.0p)
For further information:-
Robert Moyle, Chairman
North Midland Construction PLC - 01623 518812
Chairman's Statement
The results produced, in a particularly difficult economic climate, whilst below
those of the preceding year are in excess of forecasts. Revenue declined by 4.3%
to GBP202.2 million and profit before tax by 7.9% to GBP2.87 million. However I
am pleased to report that earnings per share have increased by 12.7% to 18.65p
as a result of the purchase of the minority interest in North Midland Building
Limited. Profitability was affected by three bad debts, which were incurred
during the year, but it is heartening to note that all divisions and
subsidiaries operated profitably, albeit at reduced levels, during the year.
The civil engineering division experienced a difficult year, with margins under
pressure and tender opportunities being in decline, due to the general downturn
in economic activity. Revenue declined to GBP79.5 million and profitability was
GBP0.88 million before finance costs and tax. However, the division is
participating in several framework contracts, most particularly in the water
sector, and this to some extent provides an element of insulation against the
vagaries of the market. Contractual resolution of two problematical contracts
undertaken in 2007 at Halifax and Fiddlers Ferry still remains outstanding.
Progress has been made, but not concluded, and the predicted outturn accounted
for previously remains unaltered, although all operational costs incurred during
the year have been absorbed in the 2008 results. The major project at Minworth,
being undertaken in a joint venture with Biwater Treatment Limited, for Severn
Trent Water, continues to be very successful and flows were turned on recently,
which was a major milestone. The division, in partnership with Nomenca, has
recently secured the AMP5 framework for Severn Trent Water, for infrastructure
and non-infrastructure work, at an estimated value of GBP70 million per annum,
commencing April 2010. The contract duration is for ten years, with a
performance review after 5 years and annually thereafter.
The highways division experienced a difficult year, with profitability being
reduced to GBP0.14 million because of one loss-making contract and a general
tightening of margins. On a positive note, revenue increased by 6.6% to GBP13.4
million as a result of greater market penetration in existing areas and
successful geographical expansion. Contracts of a higher notational value have
been won and a healthy workload is currently in place.
The utilities division returned to profitability for the year, delivering a
profit of GBP0.4 million on a revenue of GBP38.1 million. The division is
fortunate to have secured several framework contracts in the telecommunications
sector for major blue chip clients and whilst volumes may fluctuate
considerably, these provide a base revenue and a high proportion of overhead
recovery. The Fibrespeed project in North Wales, a major contract for the
division, was successfully launched in November 2007 and predominantly completed
during the year. The division has tendered for a significant volume of work and
is cautiously optimistic about the outcome.
The "credit crunch" and the rapidity of its impact on the whole property sector
severely damaged the building subsidiary, North Midland Building Limited. The
cancellation and deferment of schemes, coupled with the almost collapse of the
residential sector, caused revenue to fall by 21.3% to GBP29.5 million and
profitability to GBP0.75 million. The receivership of two developers also
resulted in bad debts of GBP367,000, due to the loss of retention monies on two
completed projects. However, new clients were secured during the year, with the
most notable being the successful construction of a motorway service area for
Moto at Wetherby. Market conditions remain difficult, however the company has
recently obtained orders to the value of GBP18 million.
Nomenca, the mechanical and electrical subsidiary, delivered a satisfactory
result, with revenue climbing by 31.9% to GBP41.7 million, but with
profitability declining by 13.4% to GBP1.16 million, partially due to the bad
debt of GBP91,000, incurred by the receivership of Wrekin Construction, for whom
the company had undertaken work on the railways. As with the civil engineering
division, the subsidiary is involved in several frameworks, most particularly in
the water sector, and these have provided valuable repeat business at a time of
declining workloads in general industry. The successful expansion into Scotland
has continued and further breakthroughs have been made with Thames Water and in
the South West.The water divisions of both Nomenca and the civils division have
been combined into a single entity, in the first instance to serve Severn Trent
Water. This combined capability is key to the strategy for future expansion
within the water sector. The successful, recent, bid for the Severn Trent water
AMP5 programme is testament to this.
The maintenance of healthy cash flow, in these credit restricted times, is of
paramount importance. The net cash outflow during the year was GBP6 million and
was largely due to the purchase of the minority interest in
North Midland Building and the imposition of more varied and onerous payment
conditions. The Group has always operated within its facilities and these
facilities have recently been successfully renewed. The situation showed
improvement in the second half of the year and has continued into the current
financial year.
It is particularly gratifying to be able to report on yet another year's
improvement in Health and Safety performance. Great efforts have been expended
in cultural change and they continue to deliver dividends. In the whole area of
corporate social responsibility, great strides have been taken and it is a
credit to the enthusiasm and commitment of both the workforce and the supply
chain to embrace the targets and deliver the required initiatives.
The current share price and its impact on shareholder value is obviously of
major concern for your Board, who take marginal comfort from the fact that in a
recent publication the company was the second best performer in the construction
sector in 2008. The state of the economy is of major concern and is impacting on
the entire construction sector, with the building sector being the most
significantly affected. A full review has been undertaken and cost reduction
measures have been implemented across all divisions and subsidiaries. However,
the Group has underpinned its growth over the last few years on securing
framework contracts, at which it continues to be very successful. The secured
workload for 2009 is GBP100 million and this gives your Board confidence in its
forecasts for 2009. In spite of the challenging economic climate, your Board is
keen to maintain the yield and, therefore, recommend a final dividend of 6.0p,
making a total of 8.5p for the year.
R Moyle
Chairman
Consolidated income statement for the year ended 31 December 2008
+----------------------------------------+---------------------+--+-------------------+
| | Year ended | | Year ended |
| | 31 December 2008 | | 31 December 2007 |
| | GBP'000 | | GBP'000 |
+----------------------------------------+---------------------+--+-------------------+
| Revenue | 202,215 | | 211,294 |
| | | | |
+----------------------------------------+---------------------+--+-------------------+
| Operating profit | 3,335 | | 3,301 |
| Finance costs | (460) | | (181) |
| | | | |
+----------------------------------------+---------------------+--+-------------------+
| Profit before tax | 2,875 | | 3,120 |
| Tax | (841) | | (928) |
| | | | |
+----------------------------------------+---------------------+--+-------------------+
| Profit for the year | 2,034 | | 2,192 |
| | | | |
+----------------------------------------+---------------------+--+-------------------+
| Attributed to: | 206 | | 571 |
| Minority interest | 1,828 | | 1,621 |
| Equity holders of the Parent | | | |
+----------------------------------------+---------------------+--+-------------------+
| Earnings per share | 18.65p | | 16.54p |
| | | | |
+----------------------------------------+---------------------+--+-------------------+
| Amount of actual final dividend on | 6.00p | | 6.00p |
| ordinary shares proposed to the | | | |
| Shareholders on the register at the | | | |
| close of business on 1 May 2009, which | | | |
| will be paid on 29 May 2009. | | | |
+----------------------------------------+---------------------+--+-------------------+
The calculation of earnings per share is based on 9,800,000 shares (2007 :
9,800,000) being the number of shares in issue throughout the period and on a
profit of GBP1,828,000 (2007 : GBP1,621,000).
Consolidated statement of changes in equity
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
| | | | | | | | Year ended |
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
| | | | 31 December 2007 |
| | Year ended 31 December 2008 | | |
+--------------------------------------+-----------------------------------------------------------+---+--------------------+
| | Total attributable to | | Minority | | Total | | Total |
| | equity holders of the | | interest | | equity | | equity |
| | Parent | | | | | | |
| | GBP'000 | | GBP'000 | | GBP'000 | | |
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
| | | | | | | | |
| Balance at 31 December 2007 | 17,810 | | 1,259 | | 19,069 | | 17,935 |
| | | | | | | | |
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
| | | | | | | | |
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
| Profit for the year | 1,828 | | 206 | | 2,034 | | 2,192 |
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
| | | | | | | | |
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
| Dividends paid | (833) | | (180) | | (1,013) | | (1,058) |
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
| | | | | | | | |
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
| Purchase of Minority Interest | - | | (631) | | (631) | | - |
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
| | | | | | | | |
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
| | | | | | | | |
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
| Balance at 31 December 2008 | 18,805 | | 654 | | 19,459 | | 19,069 |
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
| | | | | | | | |
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
| The total attributable to equity holders of the Parent is the aggregate of share capital, capital redemption reserve and |
| retained earnings. Share capital of GBP980,000 and capital redemption reserve of GBP20,000 have not changed during the |
| year ended 31 December 2008. |
+--------------------------------------+-----------------------+---+--------------+---+------------+---+--------------------+
Consolidated balance sheet as at 31 December 2008
+------------------------------------------------------------+------------+--+------------+
| | 2008 | | 2007 |
| | GBP'000 | | GBP'000 |
+------------------------------------------------------------+------------+--+------------+
| Assets | 11,014 | | 11,135 |
| Non-current assets | 1,267 | | 106 |
| Property, plant and equipment | | | |
| Goodwill | | | |
+------------------------------------------------------------+------------+--+------------+
| | 12,281 | | 11,241 |
+------------------------------------------------------------+------------+--+------------+
| Current assets | 1,481 | | 1,714 |
| Inventories | 9,841 | | 9,850 |
| Construction contracts | 48,656 | | 44,532 |
| Trade and other receivables | - | | 2,501 |
| Cash and cash equivalents | | | |
+------------------------------------------------------------+------------+--+------------+
| | 59,978 | | 58,597 |
+------------------------------------------------------------+------------+--+------------+
| Total Assets | 72,259 | | 69,838 |
| | | | |
+------------------------------------------------------------+------------+--+------------+
| Equity and liabilities | 980 | | 980 |
| Capital and reserves attributable to equity holders of the | 20 | | 20 |
| Parent | 17,805 | | 16,810 |
| Share capital | | | |
| Capital redemption reserve | | | |
| Retained earnings | | | |
+------------------------------------------------------------+------------+--+------------+
| | 18,805 | | 17,810 |
+------------------------------------------------------------+------------+--+------------+
| Minority interest | 654 | | 1,259 |
| | | | |
+------------------------------------------------------------+------------+--+------------+
| Total equity | 19,459 | | 19,069 |
| | | | |
+------------------------------------------------------------+------------+--+------------+
| Liabilities | 785 | | 1,041 |
| Non-current liabilities | 496 | | 429 |
| Obligations under finance leases - | 65 | | 110 |
| Due after one year | | | |
| Provisions | | | |
| Deferred tax | | | |
+------------------------------------------------------------+------------+--+------------+
| | 1,346 | | 1,580 |
+------------------------------------------------------------+------------+--+------------+
| Current liabilities | 45,972 | | 47,061 |
| Trade and other payables | 900 | | 895 |
| Current income tax payable | 1,018 | | 1,233 |
| Obligations under finance leases - | 3,564 | | - |
| Due within one year | | | |
| Bank overdraft | | | |
+------------------------------------------------------------+------------+--+------------+
| | 51,454 | | 49,189 |
+------------------------------------------------------------+------------+--+------------+
| Total liabilities | 52,800 | | 50,769 |
| | | | |
+------------------------------------------------------------+------------+--+------------+
| Total equity and liabilities | 72,259 | | 69,838 |
| | | | |
+------------------------------------------------------------+------------+--+------------+
Consolidated cash flow for the year ended 31 December 2008
+-----------------------------------------------------------+------------+--+------------+
| | 2008 | | 2007 |
| | GBP'000 | | GBP'000 |
+-----------------------------------------------------------+------------+--+------------+
| Cash flows from operating activities | | | |
+-----------------------------------------------------------+------------+--+------------+
| Operating profit | 3,335 | | 3,301 |
| Adjustments for: | 1,860 | | 1,695 |
| Depreciation of property, plant & equipment | (144) | | (108) |
| (Gain) on disposal of property, plant & equipment | 67 | | (32) |
| Increase/(decrease) in reinstatement reserve | | | |
+-----------------------------------------------------------+------------+--+------------+
| Operating cash flows before movement in working capital | 5,118 | | 4,856 |
| Decrease/(increase) in inventories | 233 | | (668) |
| Decrease/(increase) in construction contracts | 9 | | (2,841) |
| (Increase) in receivables | (4,124) | | (11,687) |
| (Decrease)/increase in payables | (1,089) | | 10,062 |
| | | | |
+-----------------------------------------------------------+------------+--+------------+
| Cash generated from/(used in)/operations | 147 | | (278) |
| Income tax paid | (881) | | (963) |
| Interest Paid | (460) | | (181) |
+-----------------------------------------------------------+------------+--+------------+
| Net cash used in operating activities | (1,194) | | (1,422) |
| | | | |
+-----------------------------------------------------------+------------+--+------------+
| Cash flows from investing activities | | | |
+-----------------------------------------------------------+------------+--+------------+
| Purchase of property, plant & equipment | (997) | | (2,509) |
| Proceeds on disposal of property, plant & equipment | 202 | | 120 |
| Purchase of minority | (1,792) | | - |
+-----------------------------------------------------------+------------+--+------------+
| Net cash used in investing activities | (2,587) | | (2,389) |
| | | | |
+-----------------------------------------------------------+------------+--+------------+
| Cash flows from financing activities | | | |
+-----------------------------------------------------------+------------+--+------------+
| Equity dividends paid | (833) | | (833) |
| Dividends paid to minority interests | (180) | | (225) |
| Repayment of obligations under finance leases | (1,271) | | (1,282) |
+-----------------------------------------------------------+------------+--+------------+
| Net cash used in financing activities | (2,284) | | (2,340) |
| | | | |
+-----------------------------------------------------------+------------+--+------------+
| Net decrease in cash and cash equivalents | (6,065) | | (6,151) |
| Cash and cash equivalents at 1 January 2008 | 2,501 | | 8,652 |
+-----------------------------------------------------------+------------+--+------------+
| (Bank overdrafts)/cash and cash equivalents at 31 | (3,564) | | 2,501 |
| December 2008 | | | |
| | | | |
+-----------------------------------------------------------+------------+--+------------+
+-------+----------------------------------------------------------------------------------------------------------+
| 1. | Basis of preparation |
+-------+----------------------------------------------------------------------------------------------------------+
| | The condensed Group financial statements for the year ended 31 December 2008 included in this report |
| | have been prepared in accordance with International Financial Reporting Standards and are presented in |
| | sterling. |
+-------+----------------------------------------------------------------------------------------------------------+
| | |
+-------+----------------------------------------------------------------------------------------------------------+
| | The accounting policies used in arriving at the preliminary figures are consistent with those which will |
| | be published in the full financial statements and which were set out in the Group's Annual Report and |
| | Accounts for 2007. |
+-------+----------------------------------------------------------------------------------------------------------+
| | |
+-------+----------------------------------------------------------------------------------------------------------+
| | The abridged financial information presented is based on the full financial statements of the Group for |
| | the year ended 31 December 2008, on which the auditors have given an unqualified report. |
+-------+----------------------------------------------------------------------------------------------------------+
| | |
+-------+----------------------------------------------------------------------------------------------------------+
| | The condensed Group financial statements were approved for issue by the Board on 8 April 2009. The full |
| | year figures for 2008 included in this report do not constitute statutory accounts for the purposes of |
| | Section 240 of the Companies Act 1985. The financial statements for the year ended 31 December 2008 |
| | include the early adoption of IFRS8 operating segments as detailed in note 2. |
+-------+----------------------------------------------------------------------------------------------------------+
| | |
+-------+----------------------------------------------------------------------------------------------------------+
| 2. | Segment reporting |
+-------+----------------------------------------------------------------------------------------------------------+
| | The business segment reporting format reflects the Group's management and internal reporting structure. |
| | |
| | Business segments |
| | The Group is comprised of the following business segments:- |
| | |
| | - 'PLC' - comprising civil engineering, highways and special projects |
| | and |
| | utilities divisions |
| | - Building - construction of commercial and residential property |
| | - Nomenca - mechanical and electrical engineering products and services |
| | |
| | Segment revenue and profit |
+-------+----------------------------------------------------------------------------------------------------------+
+-----------------------+---------------+--------+--------+--------+-------------+--+-----------+---+----------+--+------------+---+-----------+
| Year Ended 31 December 2008 | | | | | | | | |
+--------------------------------------------------------------------------------+--+-----------+---+----------+--+------------+---+-----------+
| | Civil | | Highways | | Utilities | | Building | | Nomenca | | Total |
| | Engineering | | | | | | | | | | |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| Revenue | | | | | | | | | | | |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| External sales | 79,536 | | 13,421 | | 38,121 | | 29,451 | | 41,686 | | 202,215 |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| | | | | | | | | | | | |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| | | | | | | | | | | | |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| Result before | 3,598 | | 955 | | 1,395 | | 2,142 | | 3,579 | | 11,669 |
| Corporate expenses | | | | | | | | | | | |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| | | | | | | | | | | | |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| Corporate expenses | (2,716) | | (816) | | (989) | | (1,395) | | (2,418) | | (8,334) |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| Operating profit | 882 | | 139 | | 406 | | 747 | | 1,161 | | 3,335 |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| Finance costs | | | | | | | | | | | (460) |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| Profit before tax | | | | | | | | | | | 2,875 |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| Tax | | | | | | | | | | | (841) |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| Profit for the year | | | | | | | | | | | 2,034 |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| | | | | | | | | | | | |
+-----------------------+---------------+-----------------+----------------------+--+-----------+---+----------+--+------------+---+-----------+
| Year Ended 31 December 2007 | | | | | | | | |
+--------------------------------------------------------------------------------+--+-----------+---+----------+--+------------+---+-----------+
| | Civil | | Highways | | Utilities | | Building | | Nomenca | | Total |
| | Engineering | | | | | | | | | | |
+-----------------------+------------------------+-----------------+-------------+--+-----------+---+----------+--+------------+---+-----------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+-----------------------+------------------------+-----------------+-------------+--+-----------+---+----------+--+------------+---+-----------+
| Revenue | | | | | | | | | | | |
+-----------------------+------------------------+-----------------+-------------+--+-----------+---+----------+--+------------+---+-----------+
| External sales | 97,570 | | 12,581 | | 32,101 | | 37,436 | | 31,606 | | 211,294 |
+-----------------------+------------------------+-----------------+-------------+--+-----------+---+----------+--+------------+---+-----------+
| | | | | | | | | | | | |
+-----------------------+------------------------+-----------------+-------------+--+-----------+---+----------+--+------------+---+-----------+
| | | | | | | | | | | | |
+-----------------------+------------------------+-----------------+-------------+--+-----------+---+----------+--+------------+---+-----------+
| Result before | 2,759 | | 1,088 | | (1,052) | | 5,199 | | 3,219 | | 11,213 |
| Corporate expenses | | | | | | | | | | | |
+-----------------------+------------------------+-----------------+-------------+--+-----------+---+----------+--+------------+---+-----------+
| | | | | | | | | | | | |
+-----------------------+------------------------+-----------------+-------------+--+-----------+---+----------+--+------------+---+-----------+
| Corporate expenses | (2,486) | | (667) | | (919) | | (1,954) | | (1,886) | | (7,912) |
+-----------------------+------------------------+-----------------+-------------+--+-----------+---+----------+--+------------+---+-----------+
| Operating | | | | | | | | | | | |
| profit/(loss) | 273 | | 421 | | (1,971) | | 3,245 | | 1,333 | | 3,301 |
+-----------------------+------------------------+-----------------+-------------+--+-----------+---+----------+--+------------+---+-----------+
| Finance costs | | | | | | | | | | | (181) |
+-----------------------+------------------------+-----------------+-------------+--+-----------+---+----------+--+------------+---+-----------+
| Profit before tax | | | | | | | | | | | 3,120 |
+-----------------------+------------------------+-----------------+-------------+--+-----------+---+----------+--+------------+---+-----------+
| Tax | | | | | | | | | | | (928) |
+-----------------------+------------------------+-----------------+-------------+--+-----------+---+----------+--+------------+---+-----------+
| Profit for the year | | | | | | | | | | | 2,192 |
+-----------------------+---------------+--------+--------+--------+-------------+--+-----------+---+----------+--+------------+---+-----------+
+----------------------------------------------------------+----------+---+---------+---+-----------+-------+-------+-------+---------+
| Segment assets | | | |
+---------------------------------------------------------------------------------------+-----------+---------------+-----------------+
| | 2008 | | 2007 |
+---------------------------------------------------------------------------------------+-----------+---------------+-----------------+
| | GBP'000 | | GBP'000 |
+---------------------------------------------------------------------------------------+-----------+---------------+-----------------+
| Civil engineering | 30,564 | | 34,793 |
+---------------------------------------------------------------------------------------+-----------+---------------+-----------------+
| Highways | 5,292 | | 4,169 |
+---------------------------------------------------------------------------------------+-----------+---------------+-----------------+
| Utilities | 13,601 | | 10,671 |
+---------------------------------------------------------------------------------------+-----------+---------------+-----------------+
| | 49,457 | | 49,633 |
+---------------------------------------------------------------------------------------+-----------+---------------+-----------------+
| Building | 8,220 | | 8,020 |
+---------------------------------------------------------------------------------------+-----------+---------------+-----------------+
| Nomenca | 14,582 | | 12,185 |
+---------------------------------------------------------------------------------------+-----------+---------------+-----------------+
| Total segment assets and consolidated total assets | 72,259 | | 69,838 |
+---------------------------------------------------------------------------------------+-----------+---------------+-----------------+
| | | | |
+---------------------------------------------------------------------------------------+-----------+---------------+-----------------+
| For the purpose of monitoring segment performance and allocating resources between segments, the Group's Chief Executive monitors |
| the tangible and financial assets attributable to each segment. Goodwill has been allocated to reportable segments to which it |
| relates. Assets used jointly by reportable segments are allocated on the basis of the revenues earned by individual reportable |
| segments. |
+-------------------------------------------------------------------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------------------------------------------------------------------+
| Other segment information |
+-------------------------------------------------------------------------------------------------------------------------------------+
| | Depreciation and | | Additions to |
+----------------------------------------------------------+------------------------+---+---------------------------------------------+
| | amortisation | | non-current assets |
+----------------------------------------------------------+------------------------+---+---------------------------------------------+
| | 2008 | | 2007 | | 2008 | | 2007 |
+----------------------------------------------------------+----------+---+---------+---+-------------------+---------------+---------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------------------------------------+----------+---+---------+---+-------------------+---------------+---------+
| Civil engineering | 1,101 | | 1,131 | | 1,040 | | 2,996 |
+----------------------------------------------------------+----------+---+---------+---+-------------------+---------------+---------+
| Highways | 190 | | 136 | | 180 | | 359 |
+----------------------------------------------------------+----------+---+---------+---+-------------------+---------------+---------+
| Utilities | 490 | | 347 | | 464 | | 919 |
+----------------------------------------------------------+----------+---+---------+---+-------------------+---------------+---------+
| Building | 53 | | 57 | | 12 | | 34 |
+----------------------------------------------------------+----------+---+---------+---+-------------------+---------------+---------+
| Nomenca | 26 | | 24 | | 101 | | - |
+----------------------------------------------------------+----------+---+---------+---+-------------------+---------------+---------+
| | 1,860 | | 1,695 | | 1,797 | | 4,308 |
+----------------------------------------------------------+----------+---+---------+---+-------------------+---------------+---------+
| | | | | | | | |
+----------------------------------------------------------+----------+---+---------+---+-------------------+---------------+---------+
| There were no impairment losses recognised in respect of property, plant and equipment or goodwill. |
+-------------------------------------------------------------------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------------------------------------------------------------------+
| All of the above relates to continuing operations and arose in the United Kingdom. |
+-------------------------------------------------------------------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------------------------------------------------------------------+
| Information about major customer |
+-------------------------------------------------------------------------------------------------------------------------------------+
| Revenues of approximately GBP53,100,000 (2007 : GBP43,500,000) were derived from a single external customer. These revenues are |
| attributable to the Civil Engineering and Nomenca segments. |
+----------------------------------------------------------+----------+---+---------+---+-----------+-------+-------+-------+---------+
+-------+----------------------------------------------------------------------------------------+---------+---+---------+
| 3. | Earnings per share |
+-------+----------------------------------------------------------------------------------------------------------------+
| | The basic and diluted earnings per share are the same and have been calculated on profits of GBP1,828,000 |
| | (2007 : GBP1,621,000) and 9,800,000 shares in issue. |
+-------+----------------------------------------------------------------------------------------------------------------+
| | |
+-------+----------------------------------------------------------------------------------------------------------------+
| 4. | Taxation |
+-------+----------------------------------------------------------------------------------------------------------------+
| | In respect of the year ended 31 December 2008, corporation tax has been provided at 28.5% (2007 : 30%) of |
| | the profit. |
+-------+----------------------------------------------------------------------------------------------------------------+
| | |
+-------+----------------------------------------------------------------------------------------------------------------+
| 5. | Dividends |
+-------+----------------------------------------------------------------------------------------------------------------+
| | Amounts recognised as distributions to equity holders in the year:- |
+-------+----------------------------------------------------------------------------------------------------------------+
| | | 2008 | | 2007 |
+-------+----------------------------------------------------------------------------------------+---------+---+---------+
| | | GBP'000 | | GBP'000 |
+-------+----------------------------------------------------------------------------------------+---------+---+---------+
| | Final dividend for the year ended 31 December 2007 of 6p (2006 : 6p) per share | 588 | | 588 |
+-------+----------------------------------------------------------------------------------------+---------+---+---------+
| | Interim dividend for the year ended 31 December 2008 of 2.5p (2007 : 2.5p) per share | 245 | | 245 |
+-------+----------------------------------------------------------------------------------------+---------+---+---------+
| | | 833 | | 833 |
+-------+----------------------------------------------------------------------------------------+---------+---+---------+
| | | | | |
+-------+----------------------------------------------------------------------------------------+---------+---+---------+
| | The directors propose a final dividend of 6p per share (2007 : 6p per share), total GBP588,000 (2007 : |
| | GBP588,000). The proposed final dividend is subject to approval by shareholders at the Annual General |
| | Meeting and has not been included as a liability in these financial statements. |
+-------+----------------------------------------------------------------------------------------+---------+---+---------+
+-------+--------------------------------------------+------------------------+------------+--------------------------+
| 6. | Goodwill |
+-------+-------------------------------------------------------------------------------------------------------------+
| | At the Extraordinary General Meeting held on 29 May 2008 an ordinary resolution to purchase the 15% |
| | minority interest in the subsidiary North Midland Building Limited for GBP1,792,000 inclusive of costs was |
| | approved. |
+-------+-------------------------------------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------------------------------------+
| | The purchase price, together with related costs, over the fair value of assets acquired, gave rise to |
| | goodwill of GBP1,161,000. All consideration and related costs were satisfied in cash. |
+-------+-------------------------------------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------------------------------------+
| | An impairment review of the goodwill figure has been carried out in the light of past performance and |
| | forecast future performance. Based on this review, the directors consider that no provision for impairment |
| | is necessary. |
+-------+-------------------------------------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------------------------------------+
| 7. | Related parties and joint operations |
+-------+-------------------------------------------------------------------------------------------------------------+
| | The Group's related parties are key management personnel who are the executive directors, non-executive |
| | directors and divisional managers. |
+-------+-------------------------------------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------------------------------------+
| | Additionally, the Group has a 50% interest in a joint operation with Biwater Treatment Limited. |
+-------+-------------------------------------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------------------------------------+
| | The condensed Group financial statements for the year ended 31 December 2008 incorporate the following |
| | relating to the joint operation:- |
+-------+-------------------------------------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------------------------------------+
| | | Year ended | | Year ended |
+-------+--------------------------------------------+------------------------+------------+--------------------------+
| | | 31 December 2008 | | 31 December 2007 |
+-------+--------------------------------------------+------------------------+------------+--------------------------+
| | | | | |
+-------+--------------------------------------------+------------------------+------------+--------------------------+
| | Revenue | 28,141 | | 11,038 |
+-------+--------------------------------------------+------------------------+------------+--------------------------+
| | Expenses | 26,215 | | 10,300 |
+-------+--------------------------------------------+------------------------+------------+--------------------------+
| | Assets | 5,631 | | 1,093 |
+-------+--------------------------------------------+------------------------+------------+--------------------------+
| | Liabilities | 5,631 | | 1,093 |
+-------+--------------------------------------------+------------------------+------------+--------------------------+
| | | | | |
+-------+--------------------------------------------+------------------------+------------+--------------------------+
| 8. | Contingent liabilities |
+-------+-------------------------------------------------------------------------------------------------------------+
| | Euler Hermes Guarantee plc have given Performance Bonds to a value of GBP7,323,798 (2007 : GBP5,263,911) on |
| | the Group's behalf. These bonds have been made with recourse to the Group. |
+-------+-------------------------------------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------------------------------------+
| | The Office of Fair Trading (OFT) has concluded its initial investigation into the construction industry and |
| | the Group is on their list of 112 companies under further investigation. Three outstanding allegations |
| | remain against the Group. A hearing was attended with the OFT in July 2008. The Group strongly refutes |
| | these allegations and the outcome is still pending. |
+-------+-------------------------------------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------------------------------------+
| 9. | The Annual Report and Accounts for the year ended 31 December 2008 will be despatched to shareholders on 30 |
| | April 2009 and will be available on the Company's website - www.northmid.co.uk. |
+-------+-------------------------------------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------------------------------------+
| 10. | The Annual General Meeting will be held on Thursday 28 May 2009 at 12.00 noon at the Group's Head Office at |
| | Nunn Close, The County Estate, Huthwaite, Sutton-in-Ashfield, Nottinghamshire NG17 2HW. |
+-------+--------------------------------------------+------------------------+------------+--------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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