RNS Number : 8131D
Norman Hay PLC
19 September 2008
PRESS RELEASE
19th September 2008
NORMAN HAY plc
Norman Hay plc Interim Results for the six months ended 30 June 2008
Financial Highlights:
* Pre-tax profits up 40% to �1,785,000 (H1 2007: �1,279,000)
* Turnover up 18% to �13.7m (H1 2007: �11.6m)
* Earnings per share up 33% to 8.1p (H1 2007: 6.1p)
* Dividend increased to 2p per share (H1 2007: 1.8p), to be paid on 31 October 2008 to shareholders on the register on 3 October
2008.
Chairman's Statement
I am delighted to report that we have had a successful six months.
Pre-tax profits for the period to 30 June 2008 were up 40% to �1,785,000 (2007: �1,279,000) on turnover up 18% to �13.7m (2007:
�11.6m).
Basic earnings per share of 8.1p (2007: 6.1p) were up 33% which allows us to pay a conservatively increased dividend of 2.0p per share
(2007: 1.8p). This will be paid on 31 October 2008 to shareholders on the register on 3 October 2008.
Our increased pre-tax profit is the result of improved trading profits which were further bolstered by �413,000 on the sale of the BK
Engineering freehold in April.
This is a most satisfactory result for a period in which we have been investing in new operations to secure our growth in new overseas
markets for the Group.
Trading profits have remained remarkably resilient whilst absorbing the start-up costs of these new businesses, which are primarily in
the Asia-Pacific region.
Operational Overview
Surface Coatings - 'Armourcote'
Whilst sales levels were maintained in the Coatings Division, the profitability of our UK based businesses was adversely affected by a
steady rise in operating costs.
At the same time we started to absorb the costs of the start-up period of our operation in Malaysia and the move of APC Ltd from
Bradford to Leeds, which was completed in June.
Demand for our specialised coatings for Oil & Gas extraction equipment remains strong as high energy prices make it economic for oil
companies to open up new smaller fields.
Automotive Sealants - 'Ultraseal'
An excellent performance was achieved in the first half of the year with strong chemical / sealant sales being achieved. This was in
line with the division's global business targets despite some phasing delays of equipment orders in Asia.
Construction Chemicals - 'TAM International'
The overall level of sales and profits is steadily improving, with some regional variations, as we continue to invest in new
manufacturing and distribution businesses for TAM International.
A new distribution centre has been opened in Brisbane, the fourth in Australia, and we are extending our distribution network into India
and the Gulf States.
Chemical Process Plant & Equipment
Despite operating in a difficult climate for major new capital plant installations, first half profits were significantly better than in
the corresponding period
last year.
However, there are a number of plant orders on the books that are on hold as a result of the current period of low economic confidence.
Outlook
In July we announced the acquisition of Coventry based Advanced Surface Treatments Limited and its Chinese subsidiary ASTEC Technologies
(Dalian) Co Limited. This supports our ongoing strategy of consolidating our UK operations whilst building our international business.
At the same time we launched TAM International Taiwan Co Ltd, which will manufacture a new range of underground construction (UGC)
chemicals for the tunnelling industry.
The second half has started satisfactorily. Whilst we remain cautious, given current economic conditions, we are continuing to invest in
new operations around the world, building on our existing businesses, to secure the future strength of the Group.
Peter L Hay
Chairman
19 September 2008
-ENDS -
Further information:
Vic Bellanti Tel: 0247 622 9373
Norman Hay plc
David Haggie/ Juliet Tilley Tel: 020 7417 8989
Haggie Financial
Andrew Kitchingham Tel: 0845 2134730
Brewin Dolphin
Notes to Editors
About Norman Hay plc
Norman Hay plc is a global provider of chemical solutions. Its operations are divided in to three primary divisions and brands:
Armourcote (surface coatings), Ultraseal (automotive sealants) and TAM International (construction sealants). It is listed on the
Alternative Investment Market of the London Stock Exchange under the ticker symbol HNN.
Consolidated Income Statement
for the half year ended 30 June 2008
Unaudited6 Unaudited6 months2007�000 Unaudited12 months2007�000
months2008�000
Revenue 13,681 11,634 23,959
Cost of sales (8,087) (7,326) (15,327)
Gross profit 5,594 4,308 8,632
Distribution expenses (331) (237) (631)
Administrative expenses (3,869) (2,802) (5,606)
Other operating income 413 12 *
Operating profit 1,807 1,281 2,395
Finance income 58 78 190
Finance costs (80) (80) (243)
Profit on ordinary activities 1,785 1,279 2,342
before taxation
Tax (568) (385) (672)
Profit on ordinary activities 1,217 894 1,670
after tax
Attributable to:
Equity holders of the parent 1,174 872 1,637
Minority interest 43 22 33
1,217 894 1,670
Basic earnings per share 8.1p 6.1p 11.4p
Diluted earnings per share 8.0p 6.0p 11.3p
Consolidated Statement of
Recognised Income and Expense
for the half year ended 30 June 2008
Unaudited6 Unaudited6 Unaudited12 months2007�000
months2008 �000 months2007�000
Exchange differences 122 11 75
on translation of
foreign operations
Deferred tax on items taken 8 1 (4)
directly to equity
Net income recognised 130 12 71
directly in equity
Profit for the period 1,217 894 1,670
Total recognised income and 1,347 906 1,741
expense for the period
Attributable to:
Equity shareholders 1,304 884 1,708
Minority interests 43 22 33
1,347 906 1,741
Notes
1. The calculation of basic earnings per share is based on the profit of �1,174,000 (2007:
�872,000) and on the weighted average number of ordinary shares in issue 14,546,000 (2007:
14,359,000).
2. This half-yearly financial report has been prepared in accordance with the accounting policies
disclosed in the full statutory accounts for the year ended 31 December 2007.
These policies are in accordance with International Financial Reporting Standards, International Accounting Standards and
Interpretations (collectively IFRS) issued by the International Accounting Standards Board as endorsed for use in the European Union, that
are expected to be applicable for
the year ended 31 December 2008.
Consolidated Balance Sheet
At June 2008
Unaudited at30 June Unaudited at30 June Unaudited at31 December
2008�000 2007�000 2007�000
Assets
Non-current assets
Intangible assets 2,476 2,040 2,437
Property, plant and equipment 5,165 2,422 4,633
Investments 26 26 26
Other receivables 7 178 72
Total non-current assets 7,674 4,666 7,168
Current assets
Inventories 2,041 1,578 1,795
Trade and other receivables 6,388 5,813 6,774
Cash and cash equivalents 3,215 2,145 801
Assets held for sale * 2,111 271
Total current assets 11,644 11,647 9,641
Total assets 19,318 16,313 16,809
Liabilities
Current liabilities
Financial liabilities 677 734 659
Trade and other payables 4,738 3,847 3,870
Provisions 112 183 142
Current tax liabilities 902 577 682
Total current liabilities 6,429 5,341 5,353
Non-current liabilities
Financial liabilities 1,208 947 1,331
Deferred tax liabilities 159 147 144
Total non-current liabilities 1,367 1,094 1,475
Total liabilities 7,796 6,435 6,828
Net assets 11,522 9,878 9,981
Equity
Share capital 1,481 1,473 1,481
Share premium account 1,254 1,228 1,254
Capital redemption reserve 94 94 94
Other reserves 766 759 766
Reserve for own shares (322) (146) (322)
Share scheme reserve 34 9 26
Foreign exchange reserve 158 (28) 36
Retained earnings 7,657 6,269 6,475
Equity attributable to equity 11,122 9,658 9,810
holders of the parent company
Minority Interest 400 220 171
Total equity 11,522 9,878 9,981
Note 2 continued
The Group has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing the interim consolidated financial information.
3. The financial information presented for the Group does not constitute "statutory accounts" within the meaning of Section 240 of
the Companies Act 1985.
4. The comparatives for the full year ended 31 December 2007 are not the Company's full statutory accounts for that year. A copy of
the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors' report on those accounts was
unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their
report and did not contain a statement under section 237(2)-(3) of the Companies Act 1985.
Consolidated Cash Flow Statement
for the half year ended 30 June 2008
Unaudited6 Unaudited6 Audited12 months2007�000
months2008�000 months2008�000
Cash flows from operating
activities
Operating profit 1,807 1,281 2,395
Impairment of intangibles - - 15
Depreciation 220 189 383
Gain on sale of assets (388) 26 38
Share option charge 8 - 17
Increase in inventories (246) (397) (515)
Decrease/(increase) in 451 (75) (864)
receivables
Increase in payables 809 496 167
Increase /(decrease) in 30 (7) 48
provisions
Finance income 58 78 190
Finance costs (80) (80) (243)
Tax paid (335) (212) (414)
Net cash generated from 2,334 1,299 1,217
operating activities
Cash flows from investing
activities
Acquisition of subsidiaries - - (383)
net of cash acquired
Purchase of property, plant (670) (383) (847)
and equipment
Expenditure on intangibles - (15) (15)
Proceeds from disposal of 684 1 18
property, plant and equipment
Net cash proceeds used in 14 (397) (1,227)
investing activities
Cash flows from financing
activities
Dividends paid to shareholders - - (554)
Proceeds from issue of - 80 112
ordinary share capital
Proceeds from issue of share 196 - -
capital to minority
shareholders
Purchase of long term - (146) (322)
incentive plan shares
Finance lease inception - 23 -
Finance lease repayment (28) (20) (31)
New loans raised 196 74 581
Repayment of loans (113) (240) (546)
Net cash raised/(used) in 251 (229) (760)
financing activities
Net increase/(decrease) in 2,599 673 (770)
cash and cash equivalents
Cash and cash equivalents at 541 1,264 1,264
the beginning of the period
Effects of foreign exchange 75 8 47
rate changes
Cash and cash equivalents at 3,215 1,945 541
the end of the period
Notes continued
5. This statement will be sent out to shareholders and copies will be made available at the Company's registered office, Godiva
Place, Coventry, CV1 5PN.
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