Automated Security (Holdings) PLC reports 1995 first half results.LONDON--(BUSINESS WIRE)--July 31, 1995--Automated Security (Holdings) PLC (ASH ash, in botany ash, in botany, any plant of the genus Fraxinus of the family Oleaceae (olive family), trees and shrubs mainly of north temperate regions. ) (NYSE NYSE See: New York Stock Exchange : ASI ASI, n See Anxiety Sensitivity Index. ), a leading international electronic security systems group, today reported its results for the fiscal half-year ended May 31, 1995. -0-
SIX MONTHS FINANCIAL HIGHLIGHTS
Half-year ended Half-year ended
May 31, 1995 May 31, 1994
(in millions) $/A L $/A L
Continuing Business Revenues 127.2 80.0 129.6 81.6 Recurring revenues 71.5 45.0 69.4 43.7 Profit before exceptional operating costs 15.7 9.9 19.4 12.2 Exceptional charges (22.6) (14.2) -- -- Pre-tax (loss)/profit (18.5) (11.7) 9.2 5.8 (Loss)/earnings per share (11.3)p 2.9p (Loss)/earnings per ADR/B (35.8) 9.2
/A US dollar equivalents are provided for reader convenience at
the exchange rate of 1 pound = US $1.5886.
/B Each ADR is equal to two ordinary shares.
Commenting on the results, Chairman Lord Lane of Horsell said:
"The Group has continued to focus on improving the efficiency and
cash generation of our core businesses, Modern Security Systems and
Telecom Security in the UK, and API Security and Sonitrol in the US.
We have also made progress in our strategy of disposing of our
non-core activities. In the month of July we sold our 40% stake in
our French associate Compagnie Generale de Protection et Securite
(CGPS) and agreed to sell our wholly-owned subsidiary Modern
Vitalcall Limited (MVL).
"These sales will generate cash of approximately 6 million pounds
($9.5 million) which will be applied in reduction of our Group
indebtedness.
"In July we welcomed the appointment of Tony Dignum as Chief
Executive who brings a wealth of relevant experience and an
energetic, incisive and results orientated approach to his task at a
vital time for the Group. With the full support of the Board, he
will lead the team to improve the Group's trading performance and
enhance shareholder value."
SECOND QUARTER COMMENTARY
Total revenues at 41.9 million pounds ($66.5 million) have
increased from 38.2 million pounds ($60.7 million) as reported in the
first quarter but are below 1994 due primarily to the effect of
exchange rates. Profit before interest and exceptional operating
costs for the period at 5.3 million pounds ($8.4 million), is below
1994 because of disappointing results in peripheral operations,
restructuring costs at Telecom Security and increased bank fees.
TRADING OVERVIEW
Total Group
Total revenue was down to 80.0 million pounds ($127.1 million)
but recurring revenue increased by 3% to 45.0 million pounds ($71.5
million). Operating profit from continuing operations before
exceptional items of 9.9 million pounds ($15.7 million) is 2.3
million pounds ($3.7 million) below the corresponding 1994 result.
The core businesses continue to perform in line with expectations
but the results for the half-year, as in the second quarter, have
been impacted by a disappointing trading performance in peripheral
operations and by adverse exchange rates.
ASH Europe
Total revenue was flat at 59.4 million pounds ($94.3 million)
with recurring revenue improving by 7.6% to 32.0 million pounds
($50.8 million). Operating margin was below the 1994 level due to
disappointing results in Ireland, the UK Sonitrol franchise, and
restructuring costs in Telecom Security of some 200,000 pounds
($318,000) as a result of closing branch offices.
The main core business, Modern Security Systems, has increased
revenues by 1.3% to 43.4 million pounds ($69.0 million) and has
maintained operating margins at 19.2%. Operating profit for the
period increased from 8.3 million pounds ($13.1 million) in 1994 to
8.4 million pounds ($13.3 million) in 1995.
ASH US
Total revenue declined to 20.7 million pounds ($32.8 million) due
almost entirely to the change in exchange rates. Adjusting for the
exchange difference, the reduction is 1.0%. Recurring revenues in
dollars declined by 1.1% which reflects the improving customer
cancellation rates in both API and Sonitrol Management Corporation.
Operating margins declined due to the reduced performance at
Sonitrol Management Corporation, partly as a result of parallel
running costs of consolidating the 10 Sonitrol divisions in the new
Dallas central station.
1995 (in millions) $/C L EXCEPTIONAL CHARGES Employee Share Ownership Plan (ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). ) 4.0 2.5 Exceptional operating costs operating costs npl → gastos mpl operacionales Refinancing Refinancing An extension and/or increase in amount of existing debt. costs 2.1 1.3 API (Application Programming Interface) A language and message format used by an application program to communicate with the operating system or some other control program such as a database management system (DBMS) or communications protocol. Security computer equipment and leasehold improvements Leasehold Improvement Improvements on a leased asset that increase the value of the asset. Notes: A leasehold improvement is classified as an asset that must be depreciated over time. 3.2 2.0 Provision for loss on operations to be discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: Modern Vitalcall and CGPS CGPS Canadian Galactic Plane Survey CGPS Columbia Grammar and Preparatory School (New York, New York) CGPS Carolinas Group Psychotherapy Society 13.3 8.4 22.6 14.2
/C US dollar equivalents are provided for reader convenience at
the exchange rate of 1 pounds = US $1.5886.
ESOP Provision
UITF Abstract 13 was issued on June 8, 1995 and is effective for
financial statements ending on or after June 22, 1995. This Abstract
requires ESOP debtors to be reclassified as fixed asset investments
and for any permanent diminution in value to be charged to the profit
and loss account.
The Board believes that a prudent method of application of this
Abstract is to value the shares held by the ESOP at market prices as
at May 31, 1995. As a result, the shortfall between the market value
of the ESOP's shares and the amounlivable from the ESOP has been
charged to the profit and loss account.
Exceptional Operating Costs
Refinancing costs:
These costs relate to continuing fees to professional advisors in
connection with the refinancing of the Group.
API Security:
To enhance the generation of cash and profit in API Security, the
Board has approved a move to smaller and less expensive premises on
the expiry of the present lease in May 1996 and the implementation of
enhanced computer monitoring and business systems. As a consequence,
the Group has written off the cost of existing computer systems and
leasehold improvements amounting to $3.2 million (2.0 million
pounds).
Provision for losses on disposals
On July 20, 1995 ASH announced the disposal of MVL, a wholly-
owned subsidiary, and on July 27, 1995 the disposal of CGPS, an
associated undertaking. These disposals have resulted in a charge in
the profit and loss account of approximately 8.4 million pounds
($13.3 million) compensated by a write-back to reserves in respect of
goodwill previously written off of 7.8 million pounds ($12.4
million).
CASH FLOW Cash flow movements during the six months to May 31 were as follows:
1995 1994
(in millions) L L
Operational cashflow - Continuing 10 9 - Discontinued -- 3 Refinancing costs (2) -- Interest paid (8) (6) Dividends and taxes paid (2) (1) Arius Letter of Credit (2) -- Sales of leases -- 2 Termination of callable currency swap -- (5) Net cash flow movement (4) 2 The cash flow is stated after investing some 18 million pounds ($29 million) in the establishment of new rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. systems, and paying 1.9 million pounds ($3.0 million) in respect of a Letter of Credit in favor of upon the side of; favorable to; for the advantage of. See also: favor the bankers to Arius Arius (ərī`əs, âr`ē–), c.256–336, Libyan theologian, founder of the Arian heresy. A parish priest in Alexandria, he advanced the doctrine famous as Arianism and was excommunicated locally (321). Inc., which had been provided for in the 1994 financial statements. Accordingly, bank debt increased by 4 million pounds ($7 million) to 83 million pounds ($131 million). The 6 million pounds ($9.5 million) from the sale of CGPS and MVL MVL Multiple-Valued Logic MVL Multiple Virtual Line MVL Montavista Linux MVL Moshannon Valley League (Pennsylvania high school baseball) MVL Mercury Vapor Light MVL Minimum Vector Length MVL Musikverein Lustenau will be used to pay down bank debt in the third quarter of 1995. DIVIDENDS In view of the results for the period, the Board does not recommend payment of an interim dividend in respect of the ordinary shares. OUTLOOK We have resolved a number of problems over recent months. However, we recognize that we must continue to improve our efficiency and cash generation, and deal with the complexities of the balance sheet. With operations in the UK, US and continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. , ASH is a leading provider of security systems for the commercial, industrial, and residential markets. In addition to the ADRs listed on the NYSE (each equal to two ordinary shares), ASH's ordinary shares are traded on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. and prices may be accessed on the Reuter Reu·ter , Baron Paul Julius von 1816-1899. German-born British journalist who founded (1848) Reuter's, one of the first international news agencies. Equities 2000 Service under the symbol ATOS ATOS American Theatre Organ Society ATOS Air Transportation Oversight System ATOS Australian Treatment Outcome Study (National Drug & Alcohol Research Center) ATOS Advanced Topometric Sensor ATOS Automated Technical Order System .L and on Quotron under the symbol ATOSU.EU. CONTACT: Taylor Taylor, city (1990 pop. 70,811), Wayne co., SE Mich., a suburb of Detroit adjacent to Dearborn; founded 1847 as a township, inc. as a city 1968. A small rural village until World War II, it developed significantly in the second half of the 20th cent. Rafferty Rafferty or Rafferty's rules Noun, pl Austral & NZ slang no rules at all [origin unknown] Associates, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. Rafferty, 212/889-4350 |
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