TIDMMOGP
RNS Number : 6877M
Mountfield Group plc
18 September 2019
18 September 2019
Mountfield Group Plc
Half-yearly report to 30 June 2019
Mountfield Group Plc ("the Group"), the AIM listed commercial
flooring and specialist construction services company announces its
half-yearly report to 30 June 2019.
-- Net profit before tax for the first half of the year was GBP719k (2018: GBP695k).
-- Turnover increased from GBP8.87m to GBP9.14m over corresponding period.
-- The Board anticipates an improved performance for the whole of 2019 over 2018.
The value of the Group's secured order book is higher than the
same point last year at GBP10.85m.
Peter Jay (Non-Executive Chairman) and Andy Collins (Group CEO)
said:
We are pleased to report that the improvement in the Group's
performance and profitability that we have seen over the last few
years has continued into the first half of 2019. Net profits for
the period are similar to the figure achieved in the corresponding
period of the previous year. The Board expects the results for the
full year to show improvement on those for 2018.
Connaught Access Flooring Limited and Mountfield Building Group
Limited are both performing strongly and have a combined order book
of GBP10.85m and both companies are in the process of negotiating
or tendering for substantial new contracts.
Mountfield Group Plc
Peter Jay, Chairman
Andy Collins, Chief Executive
Officer +44 (0)1268 561 516
Cairn Financial Advisers LLP
Jo Turner/Tony Rawlinson +44 (0)20 7213 0880
Mountfield Group Plc (the "Company" or "the Group") Half-yearly
report to 30 June 2019
Connaught Access Flooring Limited ("CAF")
CAF has had a good first half of the year with turnover of
GBP3.9m (2018 - GBP5.1m) and a profit before tax of GBP502k (2018 -
GBP392k) generated during the period reflecting improved final
margins on larger contracts.
CAF continues to be a market leader in its sector and has a
proven track record of successfully delivering some of the largest
contracts in the raised access flooring market.
Mountfield Building Group Limited ("MBG")
MBG has had another strong six months following on from a very
good year last year and has generated profits before tax in the
first half of the year of GBP356k (2018 - GBP456k). Whilst turnover
increased to GBP5.2m from GBP3.8m, over the corresponding period
last year, lower margins are anticipated on some of the larger
contracts.
This increase in turnover has been achieved by continuing to
successfully deliver projects to its clients including those major
contracts that have previously been announced.
Group
The Board anticipates the Group performing well in the second
half of the year and also CAF and MBG securing further business
that will ensure a strong platform for 2020.
6 months 6 months 12 months
to 30 June to to
2019 30 June 31 December
2018 2018
(unaudited) (unaudited) (audited)
Note GBP GBP GBP
Revenue 9,137,192 8,866,607 16,220,768
Cost of sales (7,572,698) (7,271,248) (13,713,296)
------------ ------------ -------------
Gross profit 1,564,494 1,595,359 2,507,472
Administrative expenses (843,172) (892,188) (1,378,299)
------------ ------------ -------------
Operating profit 721,322 703,171 1,129,173
Net finance costs (2,266) (8,554) (19,841)
------------ ------------ -------------
Profit before income tax 719,056 694,617 1,109,332
Income tax expense 4 (160,469) (133,503) (426,758)
------------ ------------ -------------
Total comprehensive profit
for the period 558,587 561,114 682,574
============ ============ =============
Earnings per share 5
Basic & diluted 0.220p 0.221p 0.268p
Condensed consolidated statement of comprehensive income
For the six months ended 30 June 2019
There are no recognised gains and losses other than those
passing through the Statement of Comprehensive Income
Condensed consolidated statement of financial position
As at 30 June 2019
30 June 30 June 2018 31 December
2019 2018
(Unaudited) (Unaudited) (audited)
GBP GBP GBP
ASSETS
Non-current assets
Intangible assets 6,874,308 6,874,308 6,874,308
Property, plant and equipment 145,387 101,969 102,655
Deferred income tax assets - 199,330 -
------------- ------------- ------------
7,019,695 7,175,607 6,976,963
------------- ------------- ------------
Current assets
Inventories 126,469 107,809 115,302
Trade and other receivables 5,292,106 3,915,220 2,411,068
Cash and cash equivalents 612,451 163,244 1,236,162
6,031,026 4,186,273 3,762,532
------------- ------------- ------------
TOTAL ASSETS 13,050,721 11,361,880 10,739,495
============= ============= ============
EQUITY AND LIABILITIES
Share capital and reserves
Issued share capital 2,524,426 2,524,426 2,524,426
Share premium 1,490,682 1,490,682 1,490,682
Share based payments reserve - - -
Capital redemption reserve 7,500 7,500 7,500
Merger reserve 4,051,967 4,051,967 4,051,967
Reverse acquisition reserve (2,856,756) (2,856,756) (2,856,756)
Retained earnings 1,376,219 696,172 817,632
------------- ------------- ------------
TOTAL EQUITY 6,594,038 5,913,991 6,035,451
------------- ------------- ------------
Current liabilities
Trade and other payables 5,517,202 4,154,056 3,305,728
Short-term borrowings 489,590 850,341 1,107,528
Current tax payable 388,885 257,552 229,782
------------- ------------- ------------
6,395,677 5,261,949 4,643,038
Non-current liabilities
Loan notes 61,006 179,006 61,006
Bank loan - 6,934 -
TOTAL LIABILITES 6,456,683 5,447,889 4,704,044
------------- ------------- ------------
TOTAL EQUITY & LIABILITIES 13,050,721 11,361,880 10,739,495
============= ============= ============
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2019
Share Share Share Capital Reverse Merger Retained Total
capital premium based redemption Acquisition reserve earnings
payments reserve reserve
GBP GBP reserve GBP GBP GBP GBP GBP
GBP
Balance at
1 January
2018 2,524,426 1,490,682 - 7,500 (2,856,756) 4,051,967 135,058 5,352,877
Total
comprehensive
income - - - - - - 561,114 561,114
--------- ------------ ----------- ----------- --------------- ------------ --------- ---------
Balance at
30 June 2018 2,524,426 1,490,682 - 7,500 (2,856,756) 4,051,967 696,172 5,913,991
--------- ------------ ----------- ----------- --------------- ------------ --------- ---------
Balance at
1 July 2018 2,524,426 1,490,682 - 7,500 (2,856,756) 4,051,967 696,172 5,913,991
Total
comprehensive
income - - - - - - 121,460 121,460
Transfer - - - - - - - -
Balance at
31 December
2018 2,524,426 1,490,682 - 7,500 (2,856,756) 4,051,967 817,632 6,035,451
--------- ------------ ----------- ----------- --------------- ------------ --------- ---------
Balance at
1 January
2019 2,524,426 1,490,682 - 7,500 (2,856,756) 4,051,967 817,632 6,035,451
Total
comprehensive
income - - - - - - 558,587 558,587
--------- ------------ ----------- ----------- --------------- ------------ --------- ---------
Balance at
30 June 2019 2,524,426 1,490,682 - 7,500 (2,856,756) 4,051,967 1,376,219 6,594,038
--------- ------------ ----------- ----------- --------------- ------------ --------- ---------
Condensed consolidated cash flow statement
For the six months ended 30 June 2019
6 months to 6 months 12 months
to to
30 June 2019 30 June 2018 31 December
2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
Cash from operating activities:
Operating profit 721,322 703,171 1,129,173
Adjusted for:
Depreciation 22,475 5,715 12,556
Profit on disposal - (4,400) (4,400)
(Increase)/ decrease in inventories (11,167) (19,508) (27,001)
(Increase)/ decrease in trade
and other receivables (2,881,044) (263,707) 1,240,449
(Decrease)/ increase in trade
and other payables 2,195,803 (278,858) (1,374,996)
-------------- -------------- -------------
Cash (used in)/ generated by
operations 47,389 142,413 975,781
Finance costs (1,984) (5,964) (19,841)
Taxation paid - - (121,696)
Net cash
(outflow)/inflow from
operating activities 45,405 136,449 834,244
-------------- -------------- -------------
Cash flows from investing activities
Purchase of equipment (16,126) (27,249) (34,777)
Proceeds from sale of property,
plant and equipment - 4,400 4,400
Net cash flows from /
(used)
in investing
activities 29,279 113,600 (30,377)
-------------- -------------- -------------
Cash flows from financing activities:
Lease repayments (15,498) - -
Repayment of non-convertible
loan notes (18,000) (20,993) (138,994)
Movement in supplier financing
facility - (387,795) (387,795)
Repayment of short-term loans (61,077) (61,869) (119,632)
-------------- -------------- -------------
Net cash flows from financing
activities (94,575) (470,657) (646,421)
============== ============== =============
Net (decrease)/increase in cash
and cash equivalents (65,296) (357,057) 157,446
Cash and cash equivalents brought
forward 677,747 520,301 520,301
-------------- -------------- -------------
Cash and cash equivalents carried
forward 612,451 163,244 677,747
============== ============== =============
For the purposes of the cash flow statement, cash and cash
equivalents comprise the following:
As at 30 June As at 30 As at 31 December
2019 June 2018 2018
GBP GBP GBP
Cash at bank and in hand 612,451 163,244 1,236,162
Bank overdraft - - (558,415)
612,451 163,244 677,747
============== =========== ==================
1. Notes to the Interim Report
Basis of preparation
The Group's half-yearly financial statements for the six months
ended 30 June 2019 were authorised for issue by the directors on 18
September 2019.
The consolidated half-yearly financial statements, which are
unaudited, do not constitute statutory accounts within the meaning
of Section 434 of the Companies Act 2006. The statutory accounts
for the year ended 31 December 2018 have been filed with the
Registrar of Companies at Companies House. The audit report on the
statutory accounts for the year ended 31 December 2018 was
unqualified and did not contain any statements under Section 498
(2) or (3) of the Companies Act 2006.
The annual financial statements of Mountfield Group Plc for the
year ended 31 December 2019 will be prepared in accordance with
International Financial Reporting Standards as adopted for use in
the EU ("IFRS"). Accordingly, these interim financial statements
have been prepared using accounting policies consistent with those
which will be adopted by the Group in the financial statements and
in compliance with IAS 34 "Interim financial reporting".
The consolidated interim financial statements have been prepared
in accordance with the accounting policies set out in the annual
financial statements for the year ended 31 December 2018.
Basis of consolidation
The Group financial information consolidates that of the company
and its subsidiaries.
All intra-group transactions, balances, income and expenses are
eliminated on consolidation.
2. Changes in accounting policies and disclosures
IFRS 16 'Leases'
The Group only acts as a lessee and is required to recognise
operating leases on the balance sheet. The group has adopted the
modified retrospective approach meaning the Group recognised such
leases on the balance sheet as at 1 January 2019. The Group has
recognised right-of-use assets in respect of the properties it
leases with a value of GBP49k being attributed to the assets and a
lease liability of the same amount. The asset is being depreciated
over the remaining term of the lease, which is 19 months from 1
January 2019.
3. Segmental reporting
Segment information is presented in respect of the Group's
business segments, which are based on the Group's management and
internal reporting structure.
The chief operating decision-maker has been identified as the
Board of Directors (the Board). The Board reviews the Group's
internal reporting in order to assess performance and allocate
resources. Management have determined the operating segments based
on these reports and on the internal report's structure.
Segment performance is evaluated by the Board based on revenue
and profit before tax ("PBT"). Segment results include items
directly attributable to a segment as well as those that can be
allocated on a reasonable basis, such as centrally managed costs
relating to individual segments and costs relating to land used in
more than one individual segment.
Given that income taxes and certain corporate costs are managed
on a centralised basis, these items are not allocated between
operating segments for the purposes of the information presented to
the Board and are accordingly omitted from the analysis below.
The Group comprises the following segments:
Construction
Direct contracting and trade contracting services to both main
contractors and corporate end users.
Fit-out
Providing raised flooring systems to both main contractors and
corporate end users.
Segmental operating performance
Six months to 30 Six months to Twelve months to
June 2019 30 June 2018 31 December 2018
Segmental PBT Segmental PBT Segmental PBT
revenue revenue revenue
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------- -------- ---------- --------
Construction 5,216 355 3,786 456 8,034 781
Fit -out 3,921 502 5,081 392 8,186 314
9,137 857 8,867 848 16,220 1,095
Inter-segmental
revenue and
unallocated
costs - (138) - (153) - 14
---------- -------- ---------- -------- ---------- --------
9,137 719 8,867 695 16,220 1,109
========== ======== ========== ======== ========== ========
Business segments assets and liabilities
Six months to Six months to Twelve months
30 June 2019 30 June 2018 to 31 December
2018
Segment Segment Segment Segment Segment Segment
assets liabilities assets liabilities assets liabilities
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- -------------
Construction 2,481 3,810 1,248 2,272 936 1,850
Fit-out 3,665 2,103 3,666 2,376 2,923 1,698
6,146 5,913 4,914 4,648 3,859 3,548
Goodwill - Construction 2,000 - 2,000 - 2,000 -
Goodwill - Fit-out 4,874 - 4,874 - 4,874 -
Other unallocated
assets & liabilities 30 543 7 1,234 6 1,156
13,050 6,456 11,795 5,882 10,739 4,704
======== ============= ======== ============= ======== =============
Unallocated assets consist of deferred tax, trade and other
receivables and cash held by the Parent Company. Unallocated
liabilities consist of trade and other payables and
interest-bearing loans owed by the Parent Company.
Revenue by geographical destination
Revenue is attributable to the United Kingdom and other EU
markets. Total assets including property, plant and equipment and
intangible assets are all held in the UK.
4. Income tax (expense)/credit (continuing operations)
6 months 6 months 12 months to
to to 31 December
30 June 2019 30 June 2018 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
Current tax on income for the
period (160,469) (133,503) (227,428)
Deferred tax (expense) - - (199,330)
-------------- -------------- -------------
Income tax (expense)/credit
in the income statement (160,469) (133,503) (426,758)
============== ============== =============
5. Earnings per share
The basic earnings per share is calculated by dividing the
earnings attributable to equity shareholders by the weighted
average number of shares in issue. In calculating the diluted
earnings per share, share options outstanding have been taken into
account where the impact of these is dilutive.
The weighted average number of shares in the period was:
6 months 6 months 12 months to
to 30 June to 30 June 31 December
2019 2018 2018
(unaudited) (unaudited) (audited)
Number Number Number
Basic ordinary shares of 0.1p
each 254,244,454 254,244,454 254,244,454
Dilutive ordinary shares from - - -
warrants & options
------------ ------------ -------------
Total diluted 254,244,454 254,244,454 254,244,454
------------ ------------ -------------
Earning attributable to equity shareholders of the parent
6 months 6 months 12 months to
to 30 June to 30 June 31 December
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
Continuing operations
Basic earnings per share 0.220p 0.221p 0.268p
Diluted earnings per share 0.220p 0.221p 0.268p
------------ ------------ -------------
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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END
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