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Northern Bear Plc  -  NTBR   

Interim Results

Released 07:00 30-Nov-2012

RNS Number : 3790S
Northern Bear Plc
30 November 2012
 



 

Northern Bear plc

Unaudited Interim Report

30 September 2012



 

 


Contents

 

 

Advisers                                                                                                                                     1

Chairman's statement                                                                                                                 2

Consolidated statement of comprehensive income                                                                         4

Consolidated statement of changes in equity                                                                                 5

Consolidated balance sheet                                                                                                         6

Consolidated statement of cash flows                                                                                           7

Notes                                                                                                                                        8


Advisers

 

 

Auditor

 

KPMG Audit Plc

Quayside House

110 Quayside

Newcastle upon Tyne

NE1 3DX

Nominated advisor

 

Strand Hanson Limited

26 Mount Row

London

W1K 3SQ

 

Bankers

 

Yorkshire Bank

4 Victoria Place

Manor Road

Leeds

LS11 5AE

 

Broker

 

Seymour Pierce Limited

20 Old Bailey

London

EC4M 7EN

 

Legal advisors

 

Mincoffs Solicitors LLP

5 Osborne Terrace

Jesmond

Newcastle upon Tyne

NE2 1SQ

 

Registered office

 

A1 Grainger

Prestwick Park

Prestwick

Newcastle upon Tyne

NE20 9SJ

 


Chairman's statement

 

Introduction

 

I am pleased to report the unaudited interim results for the six months to 30 September 2012. 

 

The Group continued to perform well despite difficult trading conditions, which were exacerbated by the wettest summer in England and Wales for 100 years. 

 

Profit from continuing operations was £0.5m (2011: £0.5m). The Group's results were not affected in the current period by losses from discontinued operations and hence profit increased by 24 per cent. to £0.5m (2011: £0.4m). 

 

The disposals of The Roof Truss Company (Northern) Limited and Hastie D Burton Limited resulted in £0.1m of exceptional costs being incurred in the six months ended 30 September 2011. The Group is now focused on its established base of core businesses and has been able to deliver savings in central costs.  This has, in part, resulted from the Group's Head Office being moved to Prestwick Park, which has allowed the centralisation of certain administrative functions and a more streamlined operation.

 

Earnings per share for the period increased to 2.5p (2011: 2.0p)

 

The Group made changes to its management structure during the period, including the appointment of Graham Jennings as Managing Director of the Group in July 2012.  I would like to thank Graham for his contribution to date and am confident his vast experience in the sector will allow him to guide the Group through the continued difficult trading conditions. 

 

Trading

 

Revenue (from continuing operations) increased by 3 per cent. to £17.7m (2011: £17.2m) but the Group continued to experience margin pressure in all markets.

 

The Group undertook a full review of overheads and this has resulted in a reduction in administrative expenses to £3.1m (2011: £3.3m). 

 

The market conditions in which the Group operates continue to be challenging and remain impacted by the current uncertain macroeconomic conditions. Despite the continued uncertainty, the Group's order books remain healthy although the roll out of these orders remains difficult to predict.

 

Cash flow

 

Net bank debt at 30 September 2012 was £6.7m (2011: £8.0m).

 

The Group's strategy continues to be to reduce its level of bank debt and the Group's bank continues to be supportive. 

 

Dividend

 

The Board believes the Group's priority should be to reduce bank debt levels and, hence, that it would not be prudent to declare an interim dividend. 

 

Strategy / Outlook

 

Order books continue to be healthy and we remain cautiously optimistic with regard to maintaining current levels of trading, although market conditions remain volatile. 

 

Our overall priority remains to improve earnings and cash flow to continue to reduce the Group's level of bank debt.  In this respect the Group's cost base remains under constant review. 

 



 

People

 

Following Graham Forrest's resignation as Chief Executive Officer of the Company in October 2011, I oversaw an operational review resulting in changes to the Group's management structure.  This resulted in the appointment of Graham Jennings as Managing Director of the Group effective from 30 July 2012.  Keith Soulsby was also re-appointed to the Board as an Operations Director on 11 May 2012. 

 

I am confident that the Group now has a more effective management structure which will allow it to continue to meet the challenges it faces and which is already delivering benefits to the Group. 

 

The quality and experience of our people and the key customer relationships they maintain remain fundamental to the Group's success. 

 

 

 

 

 

 

Howard Gold

Non-Executive Chairman

30 November 2012

 

 

 


Consolidated statement of comprehensive income

for the six month period ended 30 September 2012

 

 


6 months ended


6 months ended


Year ended


30 September 2012


30 September 2011


31 March 2012


£'000


£'000


£'000

Continuing operations






Revenue

17,670


17,168


36,412

Cost of sales

(13,713)


(12,941)


(28,099)

Gross profit

3,957


4,227


8,313

Other operating income

16


8


16

Administrative expenses






Exceptional expenses

(58)


(30)


(191)

Other administrative expenses

(3,073)


(3,287)


(6,666)


(3,131)


(3,317)


(6,857)

Operating profit

842


918


1,472

Finance income

-


-


1

Finance expenses

(202)


(233)


(452)

Profit before income tax

640


685


1,021

Income tax expense

(172)


(202)


(299)

Profit from continuing operations

468


483


722

Discontinued operations






Loss from discontinued operations, net of tax

-


(106)


(159)

Profit for the period

468


377


563







Total comprehensive income attributable to equity holders of the parent

468


377


563







Basic earnings/(loss) per share






-       continuing operations

2.5p


2.6p


4.0p

-       discontinued operations

0.0p


(0.6)p


(0.9)p

-       total operations

2.5p


2.0p


3.1p







 

 



Consolidated statement of changes in equity

for the six month period ended 30 September 2012

 

 

 



Share capital

Capital redemption reserve

Merger reserve

Retained earnings

Total equity



£'000

£'000

£'000

£'000

£'000

£'000









At 1 April 2011

184

6

5,169

10,371

1,569

17,299

Total comprehensive income for the period







Profit for the period

-

-

-

-

377

377








At 30 September 2011

184

6

5,169

10,371

1,946

17,676









At 1 April 2011

184

6

5,169

10,371

1,569

17,299

Total comprehensive income for the year







Profit for the year

-

-

-

-

563

563








At 31 March 2012

184

6

5,169

10,371

2,132

17,862









At 1 April 2012

184

6

5,169

10,371

2,132

17,862

Total comprehensive income for the period







Profit for the period

-

-

-

-

468

468









At 30 September 2012

184

6

5,169

10,371

2,600

18,330











Consolidated balance sheet

at 30 September 2012

 


30 September 2012


30 September 2011


31 March

2012


£'000


£'000


£'000

Assets






Property, plant and equipment

2,373


2,271


2,220

Intangible assets

21,348


21,345


21,348

Deferred tax assets

33


-


33

Total non-current assets

23,754


23,616


23,601







Inventories

814


748


807

Trade and other receivables

7,729


7,692


7,607

Prepayments for current assets

337


376


194

Deferred consideration receivable

200


227


222

Cash and cash equivalents

327


339


243

Total current assets

9,407


9,382


9,073

Total assets

33,161


32,998


32,674







Equity






Share capital

184


184


184

Capital redemption reserve

6


6


6

Share premium

5,169


5,169


5,169

Merger reserve

10,371


10,371


10,371

Retained earnings

2,600


1,946


2,132







Total equity attributable to equity holders of the Company

18,330


17,676


17,862







Liabilities






Loans and borrowings

2,036


2,915


2,470

Deferred tax liabilities

-


103


-

Total non-current liabilities

2,036


3,018


2,470







Bank overdraft

4,389


5,032


4,333

Loans and borrowings

938


715


858

Trade and other payables

6,858


6,214


6,713

Current tax payable

610


343


438

Total current liabilities

12,795


12,304


12,342







Total liabilities

14,831


15,322


14,812

Total equity and liabilities

33,161


32,998


32,674



Consolidated statement of cash flows

for the six month period ended 30 September 2012

 


6 months ended


6 months ended


Year ended


30 September 2012


30 September 2011


31 March 2012


£'000


£'000


£'000







Cash flows from operating activities






Profit for the period

468


377


563

Adjustments for:






Depreciation

231


241


495

Impairment

-


3


-

Finance income

-


-


(1)

Finance expense

202


233


452

Loss on sale of property, plant and equipment

3


4


24

Income tax expense

172


202


299


1,076


1,060


1,832

Change in inventories

(192)


2


(145)

Change in trade and other receivables

(122)


(1,515)


(1,579)

Change in prepayments

(143)


(232)


(49)

Change in trade and other payables

145


1,062


1,708


764


377


1,767

Interest received

-


-


1

Interest paid

(202)


(233)


(452)

Tax paid

-


(133)


(271)

Net cash from operating activities

562


11


1,045







Cash flows from investing activities






Proceeds from the sale of property, plant and equipment

44


19


70

Disposal of subsidiary, net of cash disposed of

22


639


644

Acquisition of property, plant and equipment

(150)


(86)


(181)

Net cash from investing activities

(84)


572


533







Cash flows from financing activities






Repayment of borrowings

(344)


(688)


(983)

Payment of finance lease liabilities

(106)


(87)


(184)

Net cash from financing activities

(450)


(775)


(1,167)







Net increase/(decrease) in cash and cash equivalents

28


(192)


411

Cash and cash equivalents at start of period

(4,090)


(4,501)


(4,501)

Cash and cash equivalents at end of period

(4,062)


(4,693)


(4,090)








Notes

 

 

1.   Basis of preparation

These condensed financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting as adopted by the EU'.  They do not include all the information required for full annual financial statements, and should be read in conjunction with the financial statements of the Group as at and for the year ended 31 March 2012.

These condensed financial statements are unaudited and were approved by the Board of Directors on 29 November 2012.

The information for the year ended 31 March 2012 does not constitute statutory financial statements as defined by section 435 of the Companies Act 2006.  Those financial statements have been reported on by the Group's auditors and delivered to the Registrar of Companies.  The report of the auditors was unqualified and did not contain statements under section 498 (2) or (3) of the Companies Act 2006.

The accounting policies applied by the Group in these condensed financial statements are the same as those applied by the Group in its consolidated financial statements for the year ended 31 March 2012, other than as disclosed in note 2.

2.    Changes in accounting policies

From 1 April 2012 the following standards, amendments and interpretations became effective and were adopted by the Group:

 

§  Amendments to IFRS7 - Disclosures: Transfers of financial assets; and

§  Amendments to IAS12 - Deferred tax: Recovery of underlying assets.

 

The adoption of the above has not had a significant impact on the Group's profit for the period or equity.

 

3.         Discontinued operation

 

The Group disposed of operations, as follows:

 

§  The Roof Truss Company (Northern) Limited - on 26 May 2011; and

§  Hastie D Burton Limited - on 20 April 2011.

 

 

 

Results from discontinued operations - 6 months ended 30 September 2011

 



Hastie

£000

Roof Truss

£000

Total

£000






Exceptional expenses


-

(106)

(106)



_______

    _______

 

    _______

 

Loss before income tax


-

(106)

(106)

Income tax


-

-

-

 

 


_______

_______

    _______

 

Loss for the period


-

(106)

(106)



--_______

_______

_______






Basic loss per share




(0.6)p





_______







Results from discontinued operations - year ended 31 March 2012



Hastie

£000

Roof Truss

£000

Total

£000






Exceptional expenses


(54)

(105)

(159)



_______

    _______

 

    _______

 

Loss before income tax


(54)

(105)

(159)

Income tax


-

-

-

 

 


_______

_______

    _______

 

Loss for the year


(54)

(105)

(159)



--_______

_______

_______






Basic loss per share




(0.9)p





_______






 

4.    Taxation

The taxation charge for the six months ended 30 September 2012 is calculated by applying the Directors' best estimate of the annual effective tax rate to the profit for the period.

 

5.         Earnings per share

 

The calculation of basic earnings/(loss) per share was based on the profit/(loss) for the period and on the weighted average number of ordinary shares outstanding, calculated as follows:

 






6 months ended

6 months ended

Year ended






30 September 2012

30 September 2011

31 March 2012









Profit/(loss) for the period (£000)

-       continuing operations

468

483

722

-       discontinued operations

-

(106)

(159)

-       total



468

377

563

Weighted average number of ordinary shares (000)


18,420

18,420

18,420






Earnings/(loss) per share





-       continuing operations


2.5p

2.6p

4.0p

-       discontinued operations


-

(0.6)p

(0.9)p

-       total



2.5p

2.0p

3.1p

 

 

Share options in issue do not have a dilutive impact on the earnings per share calculation.

 

6.    Principal risks and uncertainties

 

The directors consider that the principal risks and uncertainties which could have a material impact on the Group's performance in the remaining six months of the financial year remain the same as those stated on pages 5 and 6, and 43 to 47 of our Annual Report and Accounts for the year ended 31 March 2012, which are available on our website, www.northernbearplc.com.



 

7.    Related party transactions

 

There have been no related party transactions in the first six months of the current financial year which have materially affected the financial position or performance of the Group.

 

8.    Half year report

 

The condensed financial statements were approved by the Board of Directors on 29 November 2012 and are available on the Company's website, www.northernbearplc.com.  Copies will be sent to shareholders and are available on application to the Company's registered office.

 

9.    Statement of directors' responsibilities

 

The director named below confirms on behalf of the Board of Directors that to the best of their knowledge:

 

§  the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU; and

§  the interim management report includes a fair review of the information required by:

§  DTR4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

§  DTR4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the Group during the period; and any changes in the related party transactions described in the last annual report that could do so.

 

The Directors of Northern Bear Plc are listed in the Annual Report and Financial Statements for the year ended 31 March 2012.

 

 

For and on behalf of the Board of Directors

 

 

 

 

 

 

Steven Roberts

Finance Director

30 November 2012

 

 

 

 

 


This information is provided by RNS
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Interim Results - RNS