logo-loader
RNS
viewMountfield Group PLC

Mountfield Group - Half-year Report

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 £719k (2018: £695k).

·      Turnover increased from £8.87m to £9.14m 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 £10.85m.

      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 £10.85m 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

 

 

 

 

Connaught Access Flooring Limited ("CAF")

 

CAF has had a good first half of the year with turnover of £3.9m (2018 - £5.1m) and a profit before tax of £502k (2018 - £392k) 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 £356k (2018 - £456k). Whilst turnover increased to £5.2m from £3.8m, 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 to     30 June 2019

 

6 months to   

 30 June 2018

 

12 months to      

31 December 2018

 

 

(unaudited)

 

(unaudited)

 

(audited)

 

Note

£

 

£

 

£

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 2019

(Unaudited)

30 June 2018

(Unaudited)

31 December 2018

(audited)

 

 

£

£

£

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 capital

 

£

   Share premium

 

£

Share based payments reserve

£

Capital redemption reserve             £

Reverse Acquisition reserve

£

Merger reserve

 

£

Retained earnings

 

£

Total

 

 

£

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)

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

30 June 2019

(unaudited)

6 months to

30 June 2018

(unaudited)

12 months to

31 December 2018

(audited)

 

 

£

£

£

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   2019

As at 30 June 2018

As at 31 December 2018

 

£

£

£

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 £49k 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 June 2019

Six months to 30 June 2018

Twelve months to 31 December 2018

 

Segmental revenue

PBT

Segmental revenue

PBT

Segmental revenue

PBT

 

£'000

£'000

£'000

£'000

£'000

£'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 30 June 2019

Six months to 30 June 2018

Twelve months to 31 December 2018

 

Segment assets

Segment liabilities

Segment assets

Segment liabilities

Segment assets

Segment liabilities

 

£'000

£'000

£'000

£'000

£'000

£'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 to

30 June 2019

6 months to

30 June 2018

12 months to

31 December 2018

 

(unaudited)

(unaudited)

(audited)

 

£

£

£

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 to       30 June 2019

6 months to       30 June 2018

12 months to           31 December 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 to       30 June 2019

6 months to       30 June 2018

12 months to           31 December 2018

 

(unaudited)

(unaudited)

(audited)

 

£

£

£

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.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
IR CKODNKBKBCCD

Quick facts: Mountfield Group PLC

Price: 0.75

Market: AIM
Market Cap: £1.91 m
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE