Further Progress And Return Of Surplus Capital By NFC.LONDON--(BUSINESS WIRE)--June 3, 1998-- -0-
RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 1998
-- Operating profit of continuing operations P50.2m, up
12% (1997: P44.9m)
-- Profit before tax and exceptional items P51.9m, up
4% (1997: P50.1m)
-- Profit before tax P59.4m, up 11% (1997: P53.3m)
-- Earnings per share before exceptional items 4.4p, up
2% (1997: 4.3p)
RETURN OF CAPITAL AND DIVIDEND POLICY
-- Proposal to return approximately P307 million to
shareholders, equating to some 25 per cent of NFC's
market capitalisation
-- Shareholders will receive 176p in cash and 3 new
ordinary shares in exchange for every 4 existing ordinary
shares held
-- Dividend reduction in the light of return of
capital to shareholders - interim dividend 2.0p per share
(1997: 2.5p). Expected final dividend 3.0p per share
(1997: 4.6p)
Sir Christopher Bland, Chairman of NFC plc, said:
"Further positive results have been achieved from implementing
the Group's strategy. The restructuring programme in the UK and
Europe is on track, profit growth has been achieved and a substantial
return of capital to shareholders has been announced. We expect to
make further progress in the remainder of this financial year."
RESULTS
Group turnover decreased by 5% to P1,112.4m (1997: P1,172.5 m).
Excluding the impact of a stronger sterling exchange rate and
discontinued activities, the underlying turnover of continuing
operations grew by 5%.
Profit before tax and exceptional items increased by 4% to P51.9m
(1997: P50.1m). Including exceptional items, profit before tax was
P59.4m (1997: P53.3m), an increase of 11%.
Group operating profit decreased by 11% to P49.7m (1997: P56.1m),
reflecting the sale of non-core businesses between the two periods.
Operating profit on continuing businesses advanced by 12% to P50.2m
(1997: P44.9m). Significant operating profit improvements were
achieved in the Americas (profit up 26%) and Continental Europe (loss
reduced by 62%). In the United Kingdom and Ireland operating profit
was up 4% and in Asia Pacific profit reduced from P1.3m to P0.3m, as
expected.
Net interest income was P2.2m (1997: net cost of P6.0m),
reflecting the proceeds from the businesses sold in the second half
of last year and the first half of this year.
Exceptional items of P7.5m consisted principally of the net
profit on the sale of the BRS truck rental, contract hire and car
auctions businesses in the UK and the closure of Kuhn Transportation
in the US.
The Group's effective rate of tax on profit before exceptional
items was reduced to 36.5% (1997: 38%, and 37% in the full year).
The reduction was the result of a lower nominal corporation tax rate
in the UK and reduced losses in Continental Europe, offset by the
withholding tax associated with the Group's foreign income dividend.
Earnings per share before exceptional items increased by 2% to 4.4p
(1997: 4.3p). Including exceptional items, the FRS3 earnings per
share were 4.9p (1997 : 4.6p).
CASH
Free cashflow before acquisitions, disposals and dividend payments
improved to an outflow of P20.9m (1997: outflow of P48.4m). Proceeds
from business disposals, net of acquisition payments, were P47.1m
and, after dividend payments, net cash outflow before financing was
reduced to P5.9m (1997: outflow of P79.9m).
At 31 March 1998, the Group had net cash of P48.5m (1997: net
debt of P215.9m).
RETURN OF SURPLUS CAPITAL TO SHAREHOLDERS
The recent disposals of non core businesses and withdrawal from
capital intensive contracts have generated significant cash resources
for the Group (more than P250m during the last twelve months).
Following an extensive review of the Group's strategic options and
capital structure, the Board has decided to return surplus capital in
order to deliver value to shareholders. Accordingly, the Board is
proposing to return approximately P307 million of capital to
shareholders, equal to some 25 per cent of the Group's market
capitalisation.
The proposed return of capital is to be effected by way of a
bonus issue of capital shares followed by the cancellation of the
capital shares in return for cash or a loan note alternative. It is
also proposed that, immediately following the cancellation of the
capital shares, which requires the approval of the Court as well as
shareholder approval, there will be a consolidation of the Group's
share capital to reflect the return of capital.
The effect of the proposal is that shareholders will receive 176p
in cash and 3 new ordinary shares of 6 2/3 each in exchange for every 4
existing ordinary shares of 5p each.
The Board expects that implementation of the Proposal will have a
positive impact on earnings per share in future years.
Details of the proposal will be sent to shareholders by the end
of June and it is expected that the process will be completed by
early September.
DIVIDENDS
The Board has reviewed its dividend policy in the light of the
proposed return of surplus capital to shareholders. The Board
believes that dividends should be covered approximately twice by
earnings and has declared an interim dividend of 2p per existing
ordinary share in respect of the current year. In the absence of
unforeseen circumstances, the Board expects to recommend a final
dividend for the year of 3p per new ordinary share. This compares
with total dividends paid in respect of the year ended 30 September
1997 of 7.1p per existing ordinary share.
The interim dividend will be paid as a foreign income dividend on
17 August 1998 to shareholders on the register on 19 June 1998.
REVIEW OF OPERATIONS
(i) UNITED KINGDOM AND IRELAND
Continuing operations:
Turnover P504.0m (up 1%)
Operating profit P28.3m (up 4%)
Logistics
Operating profit improved by 3%, with strong performance from
Exel Logistics' Tradeteam, Automotive and Retail units and further
cost reductions from the restructuring programme announced last year.
This improvement was offset by losses in the Media/Books business,
lower contributions from Masterhire and the remaining former BRS
activities (engineering, trailer operations and Taskforce) and Year
2000 spend. The BRS truck rental and contract hire operations were
sold to Volvo in February 1998 for P49m. Good progress has been made
with the restructuring programme with 48 sites closed (or in the
process of closure) by the end of March. Expected benefits are on
track and will be fully realised in 1998/99.
Moving Services
In the last quarter, domestic house moving showed signs of
slowing in certain regions of the United Kingdom but turnover
increased by 5% with operating profit up 7%, mainly from the less
seasonal international moving and business services activities.
(ii) CONTINENTAL EUROPE
Continuing operations:
Turnover P159.3m (down 4%, up 8% at constant exchange rates)
Operating loss (P1.8m) (loss reduced by 62%, 57% at constant exchange rates)
Logistics
At constant exchange rates, revenue increased by 8%. The
dedicated contract activities, upon which Exel Logistics is focusing
its development effort on the Continent, grew by 19%. A 54%
reduction in operating losses was achieved through improved
performance of new and existing contracts, the non-recurrence of
costs last year (P2m) relating to contract start ups and drivers'
strikes and restructuring in Germany. Strong profit growth in Spain
and Portugal was due to new business and overhead reductions. The
deterioration in the French chill network reported last year has been
stabilised and recent trading performance is encouraging.
Moving Services
Revenue increased by 12% and the margins improved in the normally
quiet first half.
(iii) AMERICAS
Turnover P400.8m (up 8%, 9% at constant exchange rates)
Operating profit P12.9m (up 26%, 29% at constant exchange rates)
Logistics
Turnover at constant exchange rates increased by 10%, with
operating profit improving by 13%. Both Exel Logistics and Merchants
Home Delivery contributed to the profit growth. Exel Logistics
benefited from the implementation of new contracts announced last
year as well as the successful launch of the Freight Management
service in Canada. Exel Logistics' new business gains included
significant progress in the Automotive sector in the US and Mexico.
In favourable economic conditions, both Exel Logistics and Merchants
also experienced growth in their existing base businesses.
Moving Services
Allied Van Lines now includes Allied International, previously
included within the Asia Pacific region. On a like for like basis,
turnover increased by 8% in the off- season for home moving.
Operating profit increased significantly, primarily as a result of
increased volumes and higher cargo insurance profits in the domestic
market, continued strong growth in Allied International derived from
the agent partnership programme and a one- time adjustment of P1m in
US retirement programme costs.
(iv) ASIA PACIFIC
Turnover P28.1m (down 9%, up 6% at constant exchange rates)
Operating profit P0.3m (down 77%, 73% at constant exchange rates)
Logistics
The expected reduction in operating profit was due to the cost of
the new development infrastructure built up part way through the
first half of 1997. New business opportunities in the short term
have been adversely impacted by the Asian regional economic
difficulties. Medium term prospects continue to look encouraging.
Moving Services
Reduced margins in weaker peak-season moving markets in
Australasia were the principal cause of a 5% decline in operating
profit, although progress was achieved in business services.
Note: P = British Pounds
-0-
NFC NFC abbr. National Football Conference Group Profit and Loss Account for the six months ended 31 March 1998 (unaudited) Six months Six months Year ended 31.3.98 ended 31.3.97 ended 30.9.97 Note (pound)m (pound)m (pound)m Turnover 1 Continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the 1,092.2 1,067.5 2,241.1 Discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. 20.2 105.0 170.6 ------------ ------------ ----------- 1,112.4 1,172.5 2,411.7 ============ ============ =========== Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. 1 Continuing operations 50.2 44.9 105.2 Exceptional costs of reorganisation Noun 1. reorganisation - the imposition of a new organization; organizing differently (often involving extensive and drastic changes); "a committee was appointed to oversee the reorganization of the curriculum"; "top officials were forced out in the cabinet in continuing operations - - (49.0) Discontinued operations (0.5) 11.2 18.8 ------------ ------------ ----------- 49.7 56.1 75.0 Profit on disposals of properties in continuing operations 0.4 3.2 1.0 Profit on disposals of discontinued operations 7.1 - 20.2 Profit before interest 57.2 59.3 96.2 Interest 2.2 (6.0) (8.4) Profit before tax and exceptional items 51.9 50.1 115.6 Exceptional items 7.5 3.2 (27.8) Profit on ordinary activities before taxation 59.4 53.3 87.8 Tax on profit on ordinary activities (18.9) (19.0) (42.5) Tax on profit on exceptional items (3.9) (1.3) (2.2) Profit on ordinary activities after taxation 36.6 33.0 43.1 Equity minority interests (2.5) (1.2) (3.8) Earnings 34.1 31.8 39.3 Dividends (14.0) (17.4) (49.4) ------------ ------------ ----------- Retained profit/(loss) 4 20.1 14.4 (10.1) Earnings per share Including exceptional items 4.9p 4.6p 5.7p Attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to exceptional items (0.5)p (0.3)p 4.3p Before exceptional items 4.4p 4.3p 10.0p -0- Group Total Recognised Gains and Losses for the six months ended 31 March 1998 (unaudited) Six months Six months Year ended 31.3.98 ended 31.3.97 ended 30.9.97 (pound)m (pound)m (pound)m Earnings 34.1 31.8 39.3 Exchange differences 2.2 6.0 4.8 Unrealised surplus on revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of properties - - 4.0 Total gains and losses recognised in the period 36.3 37.8 48.1 ============ ============ =========== -0- NFC Group Cash Flow Statement for the six months ended 31 March 1998 (unaudited) Six months Six months Year ended 31.3.98 ended 31.3.97 ended 30.9.97 Note (pound)m (pound)m (pound)m Operating profit 1 49.7 56.1 75.0 Depreciation 39.3 60.1 120.1 Loss/(profit) on disposals of tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → 0.4 0.4 (1.2) Movement in pensions prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. (11.1) (10.8) (21.0) Movements in provisions 2 (8.4) (6.1) 29.2 Movements in working capital (58.1) (96.8) (44.8) Net cash inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. from operating activities 11.8 2.9 157.3 Net interest received/(paid) 2.3 (6.1) (9.1) Dividend paid to minority shareholder (3.2) - - Tax paid (13.6) (6.1) (20.9) Purchases of tangible fixed assets and investments (49.9) (74.0) (133.1) Disposals of tangible fixed assets 31.7 34.9 80.1 Net cash outflow for capital expenditure and financial investment (18.2) (39.1) (53.0) Free cash flow (20.9) (48.4) 74.3 Net cash inflow/(outflow) for acquisitions and disposals 47.1 (0.9) 153.6 Equity dividends paid (32.1) (30.6) (46.8) ------------ ------------ ----------- Net cash (outflow)/inflow before financing 3 (5.9) (79.9) 181.1 Net cash inflow/(outflow) from financing 1.8 5.7 (59.3) (Decrease)/increase in cash (4.1) (74.2) 121.8 ============ ============ =========== NFC Group Balance Sheet at 31 March 1998 (unaudited) 31.3.98 31.3.97 30.9.97 Note (pound)m (pound)m (pound)m Fixed assets 511.7 743.0 574.8 Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. (excluding cash) 366.3 459.9 405.1 Debtors falling due after more than one year 193.5 172.5 184.0 Cash 199.7 61.1 205.8 Creditors: Amounts falling due within one year Short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings (3.9) (54.2) (3.5) Other creditors (361.7) (452.0) (472.4) Net current assets Net current assets The difference between current assets and current liabilities, also known as working capital. net current assets See working capital. 393.9 187.3 319.0 Total assets less current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. 905.6 930.3 893.8 Creditors: Amounts falling due after more than one year Long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. borrowings (147.3) (222.8) (148.9) Other creditors (9.4) (9.4) (9.6) Provisions 2 (168.9) (125.5) (179.2) ------------ ------------ ----------- 580.0 572.6 556.1 ============ ============ =========== Equity shareholders' funds 4 551.7 546.0 529.5 Equity minority interests 28.3 26.6 26.6 ------------ ------------ ----------- 580.0 572.6 556.1 ============ ============ =========== Net cash/(debt) 3 48.5 (215.9) 53.4 ============ ============ =========== Gearing net cash 40% net cash ============ ============ =========== Average number of shares ranking for dividends 698.3 m 694.8 m 695.3 m ============ ============ =========== CONTACT: Gerry Murphy This article is about football personality. For the musician, see Gerry Murphy (musician). Gerry Murphy (born 1944 in Dublin, Ireland) is the Director of Football Development at Huddersfield Town. , NFC Tel 011-44-0171-317-0123 or John Rudofsky, Citigate Communications Tel 011-44-0171-282-8000 or Ray McNulty McNulty is a surname, and may refer to:
Tel 212-508-3400 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion