Interim Results
04 Agosto 2003 - 9:01AM
UK Regulatory
RNS Number:2702O
Mayflower Corporation PLC
04 August 2003
The Mayflower Corporation plc
4 August 2003
Interim Results Announcement
For the six months ended 30 June 2003
Mayflower, the specialist engineering group with operations in the automotive,
bus and energy sectors announces interim results for the half year ended 30 June
2003.
* Turnover - #314.2 million (2002 #328.5 million)
* Profit before tax*
- Before goodwill and exceptionals - #11.1 million (2002 #13.2 million)
- After goodwill and exceptionals - #2.8 million (2002 #3.2 million)
* Earnings / (loss) per share
- Before goodwill and exceptionals - 1.5 pence (2002 2.4 pence)
- After goodwill and exceptionals - (0.5) pence (2002 (1.1) pence)
* Dividend declared - 0.5 pence per share (2002 1.5 pence)
* Net Debt - #169.3 million (2002 #145.7 million)
* The June 2002 comparative numbers throughout this document have been restated
where appropriate for the prior year adjustment recorded at 31 December 2002
Commenting on the results, John Simpson, Chief Executive of The Mayflower
Corporation, said:
"These are positive results in very demanding market conditions. We are managing
all our businesses closely, concentrating our efforts on removing costs and
improving productivity. It is encouraging that following the restructuring at
MVS it has made good progress in the USA and is now experiencing a high level of
tender activity in the UK and North America. TransBus is still the market leader
but in the last six months has faced intense competition from European OEMs.
This is reflected in the results and we have already started a restructuring
programme that will continue to reduce the cost base of the business.
"Mayflower Energy is working on its first two projects and is now making a
positive contribution to the Group. This will increase significantly in the
second half of the year and as the installation of offshore wind farms gains
momentum in 2004.
"The Board has decided to propose a dividend of 0.5 pence per share.
"Mayflower currently has a bank syndicate facility of #188 million which matures
on 31 December 2003 and we are in discussions with our key relationship banks to
refinance a smaller facility, more in line with our needs. We expect to complete
this exercise in the autumn."
For further information please contact:
Mayflower Corporation Office 01494 450145
John Simpson, Chief Executive
David Donnelly, Joint Managing Director
Bill Simpson, Director of Corporate Communications
Gavin Anderson & Company Office 0207 554 1400
Liz Morley
Review
Mayflower Vehicle Systems and TransBus International continued to trade
profitably in the first half of the year despite difficult market conditions and
continued uncertainty in certain key sectors. The encouraging news is that
Mayflower Vehicle Systems is experiencing more stable trading conditions and
increased tender opportunities in both the UK and the USA. In addition,
Mayflower Energy is now contributing positively to the Group. This contribution
will increase significantly in the second half of the year and in 2004/2005 as
offshore wind farm initiatives gain momentum.
Group turnover for the half year was #314.2 million, compared with #328.5
million for the first half of 2002. Profit before tax, goodwill and exceptional
items was #11.1 million and this compares to #13.2 million for the comparative
period in 2002. This downturn was due to a profit reduction of #4.2 million at
TransBus which felt the combined impact of intensified pressure from European
manufacturers and increased overhead costs. TransBus has moved quickly to take
out cost and further restructuring will take place in the second half of the
year.
Mayflower's net debt at the half year was #169.3 million and the company expects
to reduce this significantly from 2004. Capital expenditure and new product
development for 2002 and 2003 will exceed a total of #90 million but this will
start to normalise in line with depreciation at around #20 million per annum, as
we complete major investment programmes by the end of this year.
Mayflower currently has a bank syndicate facility of #188 million which matures
on 31 December 2003 and is now in discussions with its key relationship banks to
refinance this facility in line with its needs. This exercise is expected to be
completed in the autumn and the Directors are satisfied that it is appropriate
for the company to continue preparing the accounts on a going concern basis.
Note 6 (Basis of Preparation) sets out further information in this respect.
The Board has decided to propose a dividend of 0.5 pence per share (2002 1.5
pence per share).
The results for the first six months of 2003 show a total operating profit
before goodwill and exceptional items of #18.9 million. This compares to #22.5
million in the first six months of last year.
Exceptional items, before tax and minority interests, totalled a #1.4 million
charge (2002 #3.1 million). This is made up of a number of items:
* A #2.0 million charge in respect of redundancy costs, principally at
TransBus.
* A #1.5 million charge for warranty provisions on discontinued product
offset by the release of #1.9 million of surplus warranty provision, originally
created as a fair value adjustment at the time TransBus was formed.
* A #0.6 million charge in respect of an export contract. The business is
worth #24.0 million and the charge represents a provision against pre-contract
costs. Finalisation of a signed contract remains dependent on political
confirmation of a major privatisation programme.
* The majority of the remaining #1.5 million charge relates to the Duple
Metsec business that was closed in 2001. At the time, certain receivables were
considered to be recoverable. The board now considers it prudent to write off
these amounts as their recoverability can no longer be judged with certainty.
The remainder includes a charge relating to a lease payment on a building that
was vacated in 2000 and has now been sublet and the write-off of obsolete
inventory in MVS.
* A #2.3 million gain on the sale and leaseback of the TransBus Wigan
facility.
Earnings per share before goodwill and exceptional items were 1.5 pence (2002
2.4 pence) and basic losses per share were 0.5 pence (2002 loss of 1.1 pence).
TransBus International
TransBus remained market leader despite experiencing the most difficult six
month period since its formation in January 2001. Sales were virtually in line
with the corresponding period in 2002, but fierce competition and increased
costs combined to reduce operating profit before goodwill and exceptional items
from #18.3 million to #14.1 million.
Market Share
The UK bus market increased 6 per cent and TransBus retained its market
leadership in the first half of the year with 45 per cent of all new
registrations. It also continued to be the dominant player in Hong Kong, winning
further orders for the new generation Enviro500 double deck, which has now won
#35.0 million of business since its launch in 2002.
In the coach market, TransBus continues to make solid progress and is expected
to have around 35 per cent of the UK coach body business by the end of this
year. This figure has increased from 20 per cent at the relaunch of TransBus
coach in August 2001.
In the current competitive environment, TransBus has examined overheads closely
and is planning further restructuring. This process has already started and,
regrettably, a total of 110 job reductions were made at Guildford and Wigan in
July. The restructuring will continue in the second half of the year.
Products and New Opportunities
TransBus' drive towards greater efficiencies will be matched by aggressive
marketing strategies and innovative product introductions in both home and
export markets. It will also build on its reputation as a world leader in low
floor, easy access buses. In September it will unveil two breakthrough products
specifically designed for high capacity city operations, one of which will have
vastly reduced carbon emissions.
In North America, TransBus is currently tendering for new business in both the
USA and Canada, where interest remains high as operators strive to reduce costs
and maximise ridership. Many see double deck product as the answer to their
problem and as TransBus progresses detailed discussions in the months ahead, it
will also be developing a left-hand drive, 3-axle Enviro500 for launch into the
USA in 2004.
TransBus was affected by increased costs and SARS in the Far East. The latter
led to a 25 per cent fall in passenger ridership in the first quarter and, with
vehicles lying idle, the demand for spare parts was reduced. Operator
consolidation and the revenue lost through SARS is also likely to impact on
vehicle replacement programmes in the second half. However, TransBus has moved
quickly to take out cost and to restructure the business. This process will
accelerate in the months ahead but it will be 2004 before we see its full
impact.
Mayflower Vehicle Systems (MVS)
The world automotive industry continued to face relentless pressure in the first
half of the year, particularly on pricing, however, MVS is now experiencing more
stable trading conditions and increased tender opportunities in both North
America and the UK. Turnover of #135.3 million for the period was down #9.9
million on the first half of 2002, but despite this MVS managed to increase
operating profit before goodwill and exceptional items to #5.5 million, compared
with #5.3 million for the first six months of the previous year.
In North America, operating profit for the period increased from #2.8 million in
2002 to #4.5 million and this was after absorbing steel price increases of #1.1
million resulting from the American government's decision to impose tariffs on
imported steel. MVS US is in discussions with its customers to recover these
costs. The improved performance in North America helped off-set a downturn in UK
and European operating profit before goodwill and exceptional items from #2.5
million to #1.0 million. This was, however, an improvement on the #1.0 million
loss in the second half of 2002.
Class 8 truck sales in North America were down 5.7 per cent for the six months
but despite this there were clear signs of greater stability in the market and
less of the sudden downtime demands from OEM's which plagued the business in
2002. These factors and the new business structure put in place in 2002 were
instrumental in the 60 per cent increase in profit performance in North America
compared with the same period in 2002. With firm production programmes going
forward there are at last signs of a return to normality in the US.
What has certainly become clear in the past six months is that the investments
made by MVS over the last three years to underpin technology leadership, coupled
with the significant restructuring that took place in 2002, has positioned it
well to exploit opportunities when markets recover.
Good long-range business is on-going in North America with Volvo, International,
Mack, Freightliner and Sterling. In addition, Mayflower provided engineering
solutions for the prestigious Ford GT programme which will move into volume
production in 2004. This will provide a showcase opportunity for the business to
demonstrate its skills in the use of advanced materials and forming techniques.
In Germany, the automotive sector - like the economy - remained depressed,
although MVS is now tendering for significant packages of new work. In the UK,
MVS has been buoyed by a strengthening of its alliance with the Ford Premier
Automotive Group and new business for future generation vehicles.
In addition, volumes for the MGTF sports car have increased steadily this year
following the successful introduction of the model in New Zealand and Australia.
MVS's decision to build a new, state of the art stamping facility in the West
Midlands, which will come on stream in early 2004, has been the catalyst for a
series of new business opportunities.
MVS has made good progress in restructuring the business, taking cost out and
investing in the technology that will keep it at the cutting-edge of the sector.
The success of these measures is reflected in significant business wins and in
the level of tender activity now on-going across the company. There has been an
encouraging turnaround in the USA where operating profit increased by 60 per
cent over the corresponding period and, in Europe, 2002's second half loss has
been turned to a profit.
The impact of this progress has to be tempered with forecasts that the Class 8
truck market and the light truck and car sectors in the USA are expected to
remain flat, as is the UK automotive sector. There is also little sign of
improvement in the German economy.
Mayflower e3 Technology
Mayflower e3 Energy
Mayflower Energy Limited (MEL) was established in 2001 to provide a range of
engineering and project management services to the offshore wind farm industry.
To achieve this MEL commissioned a unique installation vessel. It is now in its
final stages of build and will be in UK waters this autumn. By August, MEL had
completed 40 per cent of its first contract, at North Hoyle off the coast of
Wales. #4.0 million of sales were recognised in the first half.
MEL is expected to move into profit in the second half of the year and its
contribution to Group earnings will grow steadily as offshore wind farm
initiatives gain momentum in 2004, 2005 and beyond. It has already started
initial work on a second project, again in UK waters, which will involve
installation in the first quarter of 2004. The whole offshore wind farm sector
was given a major boost this summer when the Government announced plans to
licence hundreds of offshore wind turbines in UK waters. These will generate as
much energy as six nuclear power stations and take the Government half-way
towards its target of providing 10 per cent of all energy needs from renewable
sources by 2010.
The Government's decision marks the start of a massive programme to harness the
considerable opportunities offered by wind power and endorses the decision taken
by Mayflower to ensure that it is at the forefront of what will be a growing
sector for many years. Government and independent experts believe wind power
will, by 2007, generate installation projects in the UK worth #2 billion. This
figure increases three-fold when looked at in a pan-European context.
Mayflower e3 Engines
Mayflower's engine development is progressing well, including programmes with
two leading automotive OEM's with a view to commercialisation of our unique e3
variable compression/capacity engine technology.
One project involves a 4-cylinder petrol engine using the Mayflower e3
technology, which is expected to provide significant improvments in fuel economy
and emissions, while the other involves development of a heavy duty diesel
engine. In the case of the former, we will have a demonstrable engine in a
vehicle during 2004.
Financial Review
Operating cash flow, before exceptional items, in the first six months was #29.1
million (2002 #43.1 million).
Interest paid was #6.8 million, a reduction from #10.6 million in 2002, largely
due to the benefit of the rights issue in May 2002 and lower interest rates.
Capital expenditure in the first half of 2003 amounted to #23.3 million (2002
#18.0 million). This includes #6.6 million invested in the construction of the
Turbine Installation Vessel for Mayflower Energy with a further #6.3 million to
be spent in the second half of 2003. #7.1 million was spent on the new Fort
Parkway factory near Birmingham in the first half of 2003 with a further #10.3
million to be spent in the remainder of this year.
The group tax charge, at 23.0 per cent, continues to benefit from the way in
which previous acquisitions have been structured and is expected to continue for
the remainder of the year.
Net debt at 30 June was #169.3 million (2002 #145.7 million).
Outlook
MVS continues to operate in challenging markets but the actions taken to reduce
its cost base, coupled with new business coming through, provides a degree of
confidence that its improved performance will continue. TransBus is a cash
positive, profit-earning business with market leadership. Changes at TransBus
will be made quickly and methodically to ensure recovery in 2004. Mayflower
Energy is expected to move into profit in the months ahead as it completes its
first major contract. Overall the Group looks forward to 2004 with some
optimism, albeit with cautious expectations for the remainder of 2003.
GROUP PROFIT AND LOSS ACCOUNT
Unaudited 6 months to 30 June 2003 Unaudited 6 months to 30 June 2002
_____________________________________________________________________________________________________________
Restated
Profit (Note 6)
before Profit Audited
goodwill before 12 months
and goodwill to 31
except- and Restated December
ional Exceptional exceptional Exceptional (Note 6) 2002
items items Goodwill Total items items Goodwill Total Total
Note #m #m #m #m #m #m #m #m #m
_______________________________________________________________________________________________________________________
Turnover
Continuing
operations 1 314.2 - - 314.2 328.5 - - 328.5 633.8
Less:
Share of
associate 1 - - - - (6.3) - - (6.3) (10.7)
_______________________________________________________________________________________________________________________
Total
turnover 314.2 - - 314.2 322.2 - - 322.2 623.1
Cost of sales (247.6) - - (247.6) (253.6) - - (253.6) (497.8)
_______________________________________________________________________________________________________________________
Gross profit 66.6 - - 66.6 68.6 - - 68.6 125.3
Operating
costs (47.7) (3.7) (6.9) (58.3) (45.3) (3.7) (6.9) (55.9) (107.0)
_______________________________________________________________________________________________________________________
Operating
profit 18.9 (3.7) (6.9) 8.3 23.3 (3.7) (6.9) 12.7 18.3
Share of
operating loss
in associate 1 - - - - (0.8) - - (0.8) (0.8)
_______________________________________________________________________________________________________________________
Total operating
profit -
Group and share
of associate 1 18.9 (3.7) (6.9) 8.3 22.5 (3.7) (6.9) 11.9 17.5
Profit on
disposal of
fixed assets 2 - 2.3 - 2.3 - - - - 4.6
_______________________________________________________________________________________________________________________
Profit/(loss)
on sale or
termination
of operations 2 - - - - - 0.6 - 0.6 (1.7)
_______________________________________________________________________________________________________________________
Profit/(loss)
on ordinary
activities
before
interest 18.9 (1.4) (6.9) 10.6 22.5 (3.1) (6.9) 12.5 20.4
Net interest (7.8) - - (7.8) (9.3) - - (9.3) (17.6)
payable
_______________________________________________________________________________________________________________________
Profit/(loss)
on ordinary
activities
before
taxation 11.1 (1.4) (6.9) 2.8 13.2 (3.1) (6.9) 3.2 2.8
Taxation 4 (2.5) 1.1 - (1.4) (3.2) 0.5 - (2.7) (5.6)
_______________________________________________________________________________________________________________________
Profit/(loss)
on ordinary
activities
after
taxation 8.6 (0.3) (6.9) 1.4 10.0 (2.6) (6.9) 0.5 (2.8)
Minority
interest - all
equity (3.1) (0.1) - (3.2) (3.4) (0.3) - (3.7) (7.2)
_______________________________________________________________________________________________________________________
Profit/(loss)
for the
financial
period 5.5 (0.4) (6.9) (1.8) 6.6 (2.9) (6.9) (3.2) (10.0)
Dividends paid
and proposed 5 (1.8) - - (1.8) (5.4) - - (5.4) (8.0)
_______________________________________________________________________________________________________________________
Retained profit
/(loss) for the
period 3.7 (0.4) (6.9) (3.6) 1.2 (2.9) (6.9) (8.6) (18.0)
_______________________________________________________________________________________________________________________
Restated
(Notes 3,
Earnings per 6)
share
Basic loss per
share 3 - - - (0.5)p - - - (1.1)p (3.1)p
Attributable to
exceptional
items 3 - - - 0.1p - - - 1.0p 3.1p
Attributable to
goodwill and
impairment 3 - - - 1.9p - - - 2.5p 4.2p
_______________________________________________________________________________________________________________________
Earnings per
share before
exceptional
items and
goodwill 3 - - - 1.5p - - - 2.4p 4.2p
_______________________________________________________________________________________________________________________
Diluted loss
per share 3 - - - (0.5)p - - - (1.1)p (3.1)p
_______________________________________________________________________________________________________________________
GROUP CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 June 30 June 31 December
2003 2002 2002
#million #million #million
________________________________________________________________________________
Net cash inflow from operating 29.1 43.1 64.2
activities before operating
exceptional items
Operating exceptional items (3.0) (6.8) (9.8)
________________________________________________________________________________
Net cash inflow from operating 26.1 36.3 54.4
activities
Returns on investments and (9.0) (13.5) (24.3)
servicing of finance
Taxation 2.7 (0.4) (3.2)
Capital expenditure and financial (15.7) (17.4) (33.1)
investment
Acquisitions and disposals (6.7) (1.0) (1.2)
Equity dividends paid (2.7) (3.9) (9.2)
________________________________________________________________________________
Cash (outflow)/inflow before (5.3) 0.1 (16.6)
management of liquid resources and
financing
Management of liquid resources - 47.8 61.8
Financing 59.4 (11.7) (49.4)
________________________________________________________________________________
Increase/(decrease) in cash for
the period 54.1 36.2 (4.2)
________________________________________________________________________________
RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET DEBT
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 June 30 June 31 December
2003 2002 2002
#million #million #million
________________________________________________________________________________
Increase/(decrease) in cash for
the period 54.1 36.2 (4.2)
Cash (jnflow)/outflow from change
in debt and lease financing (59.4) 76.1 111.4
Cash (inflow) from change in
liquid resources - (47.8) (61.8)
________________________________________________________________________________
Change in net debt resulting from
cash flows (5.3) 64.5 45.4
Amortisation of issue costs (0.5) (0.5) (1.0)
Translation difference 0.2 1.3 2.9
________________________________________________________________________________
Movement in net debt in the
period (5.6) 65.3 47.3
Net debt at the start of the
period (163.7) (211.0) (211.0)
________________________________________________________________________________
Net debt at the end of the
period (169.3) (145.7) (163.7)
________________________________________________________________________________
Net debt (169.3) (145.7) (163.7)
Issue costs (0.8) (1.8) (1.3)
________________________________________________________________________________
Net debt before issue costs at the
end of the period (170.1) (147.5) (165.0)
________________________________________________________________________________
GROUP BALANCE SHEET
Restated
(Note 6)
Unaudited Unaudited Audited
30 June 30 June 31 December
2003 2002 2002
#million #million #million
_______________________________________________________________________________________
Fixed assets
Intangible assets 225.8 230.1 227.7
Tangible assets 144.9 134.9 136.7
Investments 1.0 0.7 1.0
_______________________________________________________________________________________
371.7 365.7 365.4
Current assets
Stocks 68.8 76.9 73.6
Debtors:
Amounts falling due within 83.4 84.4 73.7
one year
Amounts falling due after 1.9 6.4 1.9
more than one year
Cash at bank and in hand 43.6 37.9 8.6
_______________________________________________________________________________________
197.7 205.6 157.8
Creditors - amounts
falling due within one
year (283.8) (165.8) (234.0)
_______________________________________________________________________________________
Net current (liabilities)/
assets (86.1) 39.8 (76.2)
_______________________________________________________________________________________
Total assets less current
liabilities 285.6 405.5 289.2
Creditors - amounts
falling due after more
than one year (80.7) (183.8) (78.4)
Provisions for liabilities
and charges (10.6) (12.4) (13.9)
_______________________________________________________________________________________
Net assets 194.3 209.3 196.9
_______________________________________________________________________________________
Capital and reserves
Called up share capital 17.9 17.9 17.9
Share premium account 155.7 155.7 155.7
Other reserves 11.3 11.3 11.3
Profit and loss account (20.7) (3.7) (17.1)
_______________________________________________________________________________________
Shareholders' funds, all
equity 164.2 181.2 167.8
Minority interest - all
equity 30.1 28.1 29.1
_______________________________________________________________________________________
Total capital employed 194.3 209.3 196.9
_______________________________________________________________________________________
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Restated
(Note 6)
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 June 30 June 31 December
2003 2002 2002
#million #million #million
_______________________________________________________________________________
Loss for the financial period:
Group (1.8) (2.2) (8.9)
Associates - (1.0) (1.1)
_______________________________________________________________________________
(1.8) (3.2) (10.0)
Translation differences on foreign
currency net investments (0.5) (2.1) (7.2)
Translation differences on foreign
currency borrowings 0.5 0.8 1.9
_______________________________________________________________________________
Total recognised losses since last (1.8) (4.5) (15.3)
annual report
_______________________________________________________________________________
RECONCILIATION OF MOVEMENTS IN GROUP
SHAREHOLDERS' FUNDS
Restated
(Note 6)
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 June 30 June 31 December
2003 2002 2002
#million #million #million
_______________________________________________________________________________
Loss for the financial period (1.8) (3.2) (10.0)
Dividends paid and proposed (1.8) (5.4) (8.0)
Translation differences on foreign
currency net investments (0.5) (2.1) (7.2)
Translation differences on foreign
currency borrowings 0.5 0.8 1.9
Proceeds of ordinary shares issued - 64.2 64.2
for cash
_______________________________________________________________________________
Net movement in shareholders'
funds (3.6) 54.3 40.9
Shareholders' funds at the start
of the period 167.8 126.9 126.9
_______________________________________________________________________________
Shareholders' funds at the end of
the period 164.2 181.2 167.8
_______________________________________________________________________________
NOTES TO THE INTERIM RESULTS
Turnover Profit
Restated
(Note 6)
Unaudited Unaudited Audited Unaudited Unaudited Audited
6 months to 6 months to 12 months to 6 months to 6 months to 12 months to
30 June 30 June 31 December 30 June 30 June 31 December
2003 2002 2002 2003 2002 2002
1. Segmental analysis #million #million #million #million #million #million
________________________________________________________________________________________________________________________
By activity and origin:
Continuing operations
Vehicle systems
UK and Europe 44.9 55.0 93.7 1.0 2.5 1.5
North America 90.4 90.2 176.1 4.5 2.8 8.0
Bus and coach
UK and Europe 174.9 177.0 352.6 14.1 18.3 35.4
North America (1) - 6.3 10.7 - (0.8) (0.8)
Mayflower e3 4.0 - 0.7 (0.7) (0.3) (1.2)
________________________________________________________________________________________________________________________
314.2 328.5 633.8 18.9 22.5 42.9
________________________________________________________________________________________________________________________
Operating exceptional (3.7) (3.7) (11.9)
items
Non-operating 2.3 0.6 2.9
exceptional items (2)
Goodwill (6.9) (6.9) (13.5)
Net interest payable (7.8) (9.3) (17.6)
________________________________________________________________________________________________________________________
Profit before tax 2.8 3.2 2.8
________________________________________________________________________________________________________________________
(1) 49 per cent share in US associate, Thomas Dennis LLC.
(2) Non-operating exceptional items are explained in note 2.
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 June 30 June 31 December
2003 2002 2002
________________________________________________________________________________________________________________________
Operating exceptional #million #million #million
items
________________________________________________________________________________________________________________________
TransBus and MVS redundancy costs (2.0) - (1.6)
TransBus warranty costs on chassis no longer in production (1.5) (1.8) (3.0)
TransBus surplus fair value warranty provision 1.9 - -
TransBus surplus fair value pension provision - - 2.4
TransBus Sri Lankan pre-contract costs (0.6) - -
MVS obsolete stock (0.3) - (0.8)
TransBus doubtful debt provision (0.9) - -
MVS US doubtful debt provision - (1.9) (1.9)
TransBus onerous lease cost (0.3) - -
Provision against Mayflower Aerospace investment - - (7.0)
________________________________________________________________________________________________________________________
(3.7) (3.7) (11.9)
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 June 30 June 31 December
2003 2002 2002
Goodwill #million #million #million
________________________________________________________________________________
Vehicle systems
UK and Europe 0.1 0.1 0.3
North America (1.3) (1.3) (2.5)
Bus and coach
UK and Europe (5.6) (5.6) (11.1)
Mayflower e3 (0.1) (0.1) (0.2)
________________________________________________________________________________
(6.9) (6.9) (13.5)
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 June 30 June 31 December
2003 2002 2002
Turnover by geographical #million #million #million
destination
________________________________________________________________________________
UK 165.5 167.9 328.7
North America 83.5 95.3 183.5
Rest of Europe 19.6 24.8 37.3
Asia Pacific 36.7 31.5 66.6
Rest of the World 8.9 9.0 17.7
________________________________________________________________________________
314.2 328.5 633.8
________________________________________________________________________________
NOTES TO THE INTERIM RESULTS
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 June 30 June 31 December
2003 2002 2002
________________________________________________________________________________
2. Exceptional Items - #million #million #million
non-operating
________________________________________________________________________________
Profit on disposal of fixed
assets 2.3 - 4.6
Profit/(loss) on sale or
termination of operations - 0.6 (1.7)
________________________________________________________________________________
2.3 0.6 2.9
________________________________________________________________________________
The profit on disposal of fixed assets in each period relates to the sale and
leasebacks of certain properties in TransBus. The loss on sale or termination of
operations in 2002 relates to the partial disposal of 40 per cent of Mayflower
Energy to the developers of the business (gain of #0.6 million), offset by #2.3
million relating to the finalisation in February 2003 of the costs of exiting
from the Metrotrans investment made in 1998. There was no goodwill relating to
these non-operating exceptional items.
Restated
(Note 6)
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 June 30 June 31 December
2003 2002 2002
3. Earnings per share #million #million #million
________________________________________________________________________________
The calculations of earnings per
share are based on the
following profits and numbers of
shares:
Loss for the financial period (1.8) (3.2) (10.0)
Attributable to exceptional items 0.4 2.9 9.8
Attributable to goodwill 6.9 6.9 13.5
________________________________________________________________________________
Profit for the financial period
before exceptional items and
goodwill 5.5 6.6 13.3
________________________________________________________________________________
No. of No. of No. of
Weighted average number of shares Shares Shares Shares
________________________________________________________________________________
For basic earnings per share 357,339,741 280,443,064 318,946,346
Exercise of share options - - -
________________________________________________________________________________
For diluted earnings per share 357,339,741 280,443,064 318,946,346
________________________________________________________________________________
The weighted average number of shares used in the calculation of fully diluted
earnings per share is the same as that used for the basic earnings per share as
the potential exercise of share options in the period would not have been
dilutive.
4.Taxation
The taxation rate for the period before goodwill and exceptional items of 23 per
cent (six months ended 30 June 2002 24 per cent; year ended 31 December 2002 24.1
per cent) is the Directors' best estimate of the rate of tax that will apply for
the full year.
Tax credits of #1.1 million relate to operating exceptional items (year ended 31
December 2002 tax credits of #0.8 million). There is no tax effect on the
non-operating exceptional item in the period (year ended 31 December 2002 tax
charge of #0.3 million).
NOTES TO THE INTERIM RESULTS (continued)
5 Dividends paid and proposed
The interim dividend of 0.50 pence per share (2002 1.50 pence) will be paid on 3
November 2003 to shareholders registered at the close of business on 10 October
2003.
6 Basis of presentation of interim financial information
The Group's current syndicated bank facility of #188 million matures on 31
December 2003 and the Group is now in discussions with its key relationship banks
to refinance these facilities.
The going concern basis assumes that the Group will continue in operational
existence for the forseeable future. The validity of this assumption depends on
the successful refinancing of these facilities. Should the Group be unable to
secure this new facility adjustments would have to be made to reduce the balance
sheet values of assets to their recoverable amounts, to provide for further
liabilities that might arise and to reclassify fixed assets and long term assets
and liabilities as short term assets and liabilities.
The Directors have considered the Group's cash flow forecasts and strategic plans
and the Group's options for refinancing facilities falling due during the year
and the Directors are satisfied that the Group is likely to be able to
renegotiate acceptable extensions to its banking facilities and therefore have
adequate resources to continue in operational existence for the forseeable
future. For this reason, they continue to adopt the going concern basis in
preparing the interim financial information.
The interim financial information has been prepared using the accounting policies
set out in the statutory accounts for the year ended 31 December 2002. Those
statutory accounts included a change in accounting policy relating to revenue
recognition in TransBus International. Accordingly, the 30 June 2002 comparative
figures have been restated to reflect this change. The effect of the change is to
increase operating profit by #0.2 million, profit after tax by #0.1 million, work
in progress by #6.6 million and reduce trade debtors
by #9.5 million at 30 June 2002. There is no effect on turnover due to internal
sales being eliminated on consolidation.
7 Publication of non-statutory accounts
The financial information contained in the interim statement for the six month
periods ended 30 June 2003 and 30 June 2002, which does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985, is unaudited
but has been reviewed by the auditors, PricewaterhouseCoopers LLP.
The financial information for the full year ended 31 December 2002 is an abridged
version of the statutory accounts for that year on which the auditors gave an
unqualified report and does not constitute the group's statutory accounts for the
purposes of section 227 of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UASWROVRWRAR