TIDMCSU
RNS Number : 5546J
Castle Support Services PLC
31 March 2010
Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Wednesday, 31 March 2010
Castle Support Services plc
("Castle" or the "Company")
Interim Financial Statements
For the period ended 31 December 2009
CHAIRMAN'S STATEMENT
I am pleased to report that our business continues to perform well and remains
ahead of the board's expectations despite the challenging global economic
conditions.
It is particularly pleasing to note that we are maintaining excellent operating
margins and the business has proved to be extremely resilient even in these
difficult economic times. We are fortunate to have a leading position and high
levels of expertise in generators and motors serving markets and products
concerned with power and energy efficiency.
Our business has now been trading for almost 100 years and established its
reputation on a quality repair and remanufacturing service that recycles
existing materials and components, providing a fast and ecologically sound
alternative to replacement motors and generators.
In the six months to 31 December 2009, the group has produced a solid and
creditable performance with revenue slightly below the equivalent period for
2008 but reflecting an improvement on the second half of the last financial
year. Operating margins have been strong in the period at 15% (2008: 15%).
Overall, our performance for the six month period under review is remarkably
within only a few percentage points of the corresponding period in 2008, which
represents an excellent result in light of the fact that the comparative period
was before the business felt the full effects of the global economic slowdown.
Final Results
Revenue for the six month period ended 31 December 2009 was GBP61.6m (2008:
GBP63.9m), whilst EBITDA was GBP10.4m (2008: GBP10.8m), profit after tax GBP5.7m
(2008: GBP4.7m), and earnings per share 4.83p (2008: 3.73p).
The increase in earnings per share is partly as a result of the lower tax charge
but has also benefitted from the share buy-backs undertaken by the Company in
June 2009 when its shares were trading at depressed prices - the average
buy-back price was 47p. The buy-back programme resulted in a reduction in the
number of ordinary shares trading on AIM to 118 million (2008: 126m), with
approximately 8 million shares now held in treasury.
Borrowings
Group borrowings at 31 December 2009 were GBP3.3m (net cash balance of GBP17.8m)
having been reduced by GBP2.5m in the period. The group's cash generation is
lower than the level we would normally have expected due to our investment in
new premises in USA totalling GBP1.3m and additional expenditure of GBP3.1m
associated with initiatives to de-risk and reduce the size of our defined
benefit pension scheme. The group currently has unutilised borrowing facilities
of circa GBP5 million which together with the aforementioned cash balances
represents circa GBP23 million available for potential investment and expansion
opportunities.
Expansion / Strategy
The group's strategy is to grow the business throughout the world both
organically by leveraging our longstanding reputation and expertise overseas,
and potentially through complimentary acquisitions and/or joint ventures.
Our investment in new facilities in Gillette, Wyoming, USA is well underway and
should be operational in the course of the next financial year. The bulk of the
expenditure of GBP4.0m has now been expensed and we expect to incur a further
GBP1.9m to complete the project. The construction contract for the expansion of
our Australian business in Brisbane has now been awarded and we expect this
facility to be completed at a cost of GBP3.4m and operational during the latter
part of 2011.
We are a well renowned market leader in a fragmented and specialist market
place, with few competitors capable of providing the group's scale and range of
services to growing sectors such as energy generation, oil, gas, resources, and
shipping. We also consider that, with our financial strength and the potential
to add value through our proven business model and technical expertise, we are
well placed to take advantage of opportunities for consolidation and geographic
expansion.
Pension scheme
In line with our stated objective we have been engaged in a number of
initiatives to reduce our exposure to our defined benefit pension scheme,
including: an extensive consultation exercise with our active members which has
resulted in the closure of the scheme to future accrual and the introduction of
a defined contribution scheme for all employees; a buyout of GBP27 million of
pensioners' liabilities with a major insurance company; the transfer of GBP7.3
million of liabilities out of the scheme following a transfer value exercise for
deferred members; and a change from a predominantly equity based investment
strategy to a more balanced portfolio that better matches the income
requirements of retiring members.
Outlook
We are still trading well and generating excellent margins and, whilst some
sectors and locations are experiencing patchy demand, we have recently seen some
improvements in the levels of incoming business and expect to generate good
returns for shareholders during the remainder of 2010.
Christopher Mills
Non-executive Chairman
31 March 2010
+---------------------------------+---------------------------------+
| Enquiries: | |
| | |
+---------------------------------+---------------------------------+
| Castle Support Services plc | |
+---------------------------------+---------------------------------+
| Tudor Davies, Director | +44 (0) 121 766 6161 |
+---------------------------------+---------------------------------+
| Tim Barrett, Finance Director | +44 (0) 121 766 6161 |
+---------------------------------+---------------------------------+
| www.castlesupportservices.com | |
+---------------------------------+---------------------------------+
| | |
+---------------------------------+---------------------------------+
| Citigate Dewe Rogerson | +44 (0) 121 362 4035 |
+---------------------------------+---------------------------------+
| Fiona Tooley | +44 (0) 7785 703523 |
+---------------------------------+---------------------------------+
| | |
+---------------------------------+---------------------------------+
| Strand Hanson Limited | |
+---------------------------------+---------------------------------+
| Matthew Chandler | +44 (0) 207 409 3494 |
+---------------------------------+---------------------------------+
Independent review report to Castle Support Services plc
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31
December 2009 which comprises the Consolidated Interim Income Statement, the
Consolidated Statement of Comprehensive Income, the Consolidated Interim Balance
Sheet, the Consolidated Statement of Changes in Equity, the Consolidated Interim
Cash Flow Statement, and the related notes to the interim financial statements.
We have read the other information contained in the half-yearly financial report
which comprises only the Chairman's Statement and considered whether it contains
any apparent misstatements or material inconsistencies with the information in
the condensed set of financial statements.
This report is made solely to the company in accordance with guidance contained
in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information
performed by the Independent Auditor of the Entity'. Our review work has been
undertaken so that we might state to the company those matters we are required
to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the company, for our review work, for this report, or for the
conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors.
As disclosed in Note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with recognition and measurement
principles of International Financial Reporting Standards as adopted by the
European Union.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 31 December 2009 is not prepared, in all
material respects, in accordance with recognition and measurement principles of
International Financial Reporting Standards as adopted by the European Union.
GRANT THORNTON UK LLP
Chartered Accountants
East Midlands
31 March 2010
Consolidated Interim Income Statement
For the period ended 31 December 2009
+--------------------------------+----------+----------+----------+
| | 6 | 6 | 12 |
| | months | months | months |
| | to | to | to |
| | 31 Dec | 31 Dec | 30 June |
| | 2009 | 2008 | 2009 |
+--------------------------------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Revenue | 61,557 | 63,887 | 125,459 |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Cost of sales | (44,166) | (45,528) | (90,080) |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Gross profit | 17,391 | 18,359 | 35,379 |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Selling and distribution costs | (2,195) | (2,408) | (4,633) |
+--------------------------------+----------+----------+----------+
| Administration expenses | (5,984) | (6,342) | (13,540) |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Operating profit before profit | 9,212 | 9,609 | 17,206 |
| on disposal | | | |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Profit on disposal of | - | - | 233 |
| property, plant and equipment | | | |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Operating profit | 9,212 | 9,609 | 17,439 |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Net interest payable on bank | (684) | (790) | (1,440) |
| overdrafts and loans | | | |
+--------------------------------+----------+----------+----------+
| Net interest receivable on | 172 | 172 | 470 |
| bank balances | | | |
+--------------------------------+----------+----------+----------+
| Treasury management income | 2 | 111 | 117 |
+--------------------------------+----------+----------+----------+
| Other finance (expense) / | (358) | 525 | 1,822 |
| income - pensions | | | |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Profit before tax | 8,344 | 9,627 | 18,408 |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Income tax expense | (2,682) | (4,916) | (6,328) |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Profit for the period | 5,662 | 4,711 | 12,080 |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| (Loss) / profit attributable | (45) | 14 | 179 |
| to minority interests | | | |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Profit attributable to equity | 5,707 | 4,697 | 11,901 |
| shareholders | | | |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| | 5,662 | 4,711 | 12,080 |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Earnings per share (EPS) - | 4.83 | 3.73 | 9.49 |
| basic and diluted - pence | | | |
+--------------------------------+----------+----------+----------+
Consolidated Statement of Comprehensive Income
For the period ended 31 December 2009
+----------------------------------------+---------+---------+----------+
| | 6 | 6 | 12 |
| | months | months | months |
| | to | to | to |
| | 31 Dec | 31 Dec | 30 June |
| | 2009 | 2008 | 2009 |
+----------------------------------------+---------+---------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------+---------+---------+----------+
| | | | |
+----------------------------------------+---------+---------+----------+
| Profit for the period | 5,662 | 4,711 | 12,080 |
+----------------------------------------+---------+---------+----------+
| | | | |
+----------------------------------------+---------+---------+----------+
| Other comprehensive income: | | | |
+----------------------------------------+---------+---------+----------+
| Exchange differences on translating | 1,807 | 3,225 | 1,878 |
| foreign operations | | | |
+----------------------------------------+---------+---------+----------+
| Actuarial losses on defined benefit | (7,400) | - | (34,384) |
| pensions plan | | | |
+----------------------------------------+---------+---------+----------+
| Income tax relating to components of | 2,072 | - | 9,628 |
| other comprehensive income | | | |
+----------------------------------------+---------+---------+----------+
| | | | |
+----------------------------------------+---------+---------+----------+
| Other comprehensive income, net of tax | (3,521) | 3,225 | (22,878) |
+----------------------------------------+---------+---------+----------+
| | | | |
+----------------------------------------+---------+---------+----------+
| Total comprehensive income for the | 2,141 | 7,936 | (10,798) |
| period | | | |
+----------------------------------------+---------+---------+----------+
| | | | |
+----------------------------------------+---------+---------+----------+
| Attributable to: | | | |
+----------------------------------------+---------+---------+----------+
| Equity holders of the parent | 2,186 | 7,797 | (10,977) |
+----------------------------------------+---------+---------+----------+
| Minority interest | (45) | 139 | 179 |
+----------------------------------------+---------+---------+----------+
| | 2,141 | 7,936 | (10,798) |
+----------------------------------------+---------+---------+----------+
Consolidated Interim Balance Sheet
As at 31 December 2009
+------------------------+------------+------------+----------+
| | 31 | 31 | 30 June |
| | December | December | 2009 |
| | 2009 | 2008 | |
+------------------------+------------+------------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------+------------+------------+----------+
| Assets | | | |
+------------------------+------------+------------+----------+
| Non-current assets | | | |
+------------------------+------------+------------+----------+
| Goodwill | 17,045 | 17,030 | 17,032 |
+------------------------+------------+------------+----------+
| Other intangible | 47 | 57 | 55 |
| assets | | | |
+------------------------+------------+------------+----------+
| Property, plant and | 26,876 | 26,237 | 24,871 |
| equipment | | | |
+------------------------+------------+------------+----------+
| Retirement benefit | - | 8,655 | - |
| assets | | | |
+------------------------+------------+------------+----------+
| Deferred tax assets | 5,163 | - | 4,088 |
+------------------------+------------+------------+----------+
| Total non-current | 49,131 | 51,979 | 46,046 |
| assets | | | |
+------------------------+------------+------------+----------+
| Current assets | | | |
+------------------------+------------+------------+----------+
| Inventories | 10,857 | 11,268 | 9,883 |
+------------------------+------------+------------+----------+
| Trade and other | 22,966 | 24,912 | 23,864 |
| receivables | | | |
+------------------------+------------+------------+----------+
| Cash and cash | 17,757 | 16,671 | 16,124 |
| equivalents | | | |
+------------------------+------------+------------+----------+
| Total current assets | 51,580 | 52,851 | 49,871 |
+------------------------+------------+------------+----------+
| Total assets | 100,711 | 104,830 | 95,917 |
+------------------------+------------+------------+----------+
| Liabilities | | | |
+------------------------+------------+------------+----------+
| Current liabilities | | | |
+------------------------+------------+------------+----------+
| Trade and other | (7,304) | (7,935) | (7,156) |
| payables | | | |
+------------------------+------------+------------+----------+
| Short term liabilities | (10,492) | (11,487) | (11,953) |
+------------------------+------------+------------+----------+
| Short term provisions | (543) | - | (588) |
+------------------------+------------+------------+----------+
| Tax liabilities | (936) | (2,310) | (151) |
+------------------------+------------+------------+----------+
| Bank loans and short | (6,840) | (1,607) | (6,590) |
| term borrowings | | | |
+------------------------+------------+------------+----------+
| Total current | (26,115) | (23,339) | (26,438) |
| liabilities | | | |
+------------------------+------------+------------+----------+
| Non-current | | | |
| liabilities | | | |
+------------------------+------------+------------+----------+
| Long term borrowings | (14,224) | (21,056) | (15,321) |
+------------------------+------------+------------+----------+
| Derivative financial | (937) | (946) | (939) |
| instruments | | | |
+------------------------+------------+------------+----------+
| Retirement benefit | (25,096) | - | (21,038) |
| liabilities | | | |
+------------------------+------------+------------+----------+
| Long term provisions | (4,873) | (4,714) | (4,794) |
+------------------------+------------+------------+----------+
| Deferred tax | - | (4,687) | - |
| liabilities | | | |
+------------------------+------------+------------+----------+
| Total non-current | (45,130) | (31,403) | (42,092) |
| liabilities | | | |
+------------------------+------------+------------+----------+
| Total liabilities | (71,245) | (54,742) | (68,530) |
+------------------------+------------+------------+----------+
| Net assets | 29,466 | 50,088 | 27,387 |
+------------------------+------------+------------+----------+
| Shareholders' equity | | | |
+------------------------+------------+------------+----------+
| Share capital | 25,212 | 25,212 | 25,212 |
+------------------------+------------+------------+----------+
| Reverse acquisition | (13,057) | (13,057) | (13,057) |
| reserve | | | |
+------------------------+------------+------------+----------+
| Foreign currency | 5,802 | 5,342 | 3,995 |
| translation reserve | | | |
+------------------------+------------+------------+----------+
| Other reserves | (3,770) | (50) | (3,770) |
+------------------------+------------+------------+----------+
| Profit and loss | 14,928 | 32,101 | 14,549 |
| account | | | |
+------------------------+------------+------------+----------+
| Equity shareholders' | 29,115 | 49,548 | 26,929 |
| funds | | | |
+------------------------+------------+------------+----------+
| Minority interests - | 351 | 540 | 458 |
| equity | | | |
+------------------------+------------+------------+----------+
| Total equity | 29,466 | 50,088 | 27,387 |
+------------------------+------------+------------+----------+
| | | | |
+------------------------+------------+------------+----------+
Consolidated Statement of Changes in Equity
For the period ended 31 December 2009
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| | Share | Reverse | Foreign | Other | Profit | Total | Minority | Total |
| | capital | acquisition | translation | reserves | and | | Interest | equity |
| | | reserve | reserve | | loss | | | |
| | | | | | account | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Balance at 1 July | 25,212 | (13,057) | 3,995 | (3,770) | 14,549 | 26,929 | 458 | 27,387 |
| 2009 | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Dividends | - | - | - | - | - | - | (73) | (73) |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Transactions with | - | - | - | - | - | - | (73) | (73) |
| owners | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Profit for the | - | - | - | - | 5,707 | 5,707 | (45) | 5,662 |
| period | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Other comprehensive | | | | | | | | |
| income: | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Exchange differences | - | - | 1,807 | - | - | 1,807 | 11 | 1,818 |
| on translation | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Actuarial loss on | - | - | - | - | (7,400) | (7,400) | - | (7,400) |
| defined benefit | | | | | | | | |
| pension plan | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Income tax relating | | | | | | | | |
| to components | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| of other | - | - | - | - | 2,072 | 2,072 | - | 2,072 |
| comprehensive income | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Total comprehensive | - | - | 1,807 | - | 379 | 2,186 | (34) | 2,152 |
| income for the | | | | | | | | |
| period | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Balance at 31 | 25,212 | (13,057) | 5,802 | (3,770) | 14,928 | 29,115 | 351 | 29,466 |
| December 2009 | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| | Share | Reverse | Foreign | Other | Profit | Total | Minority | Total |
| | capital | acquisition | translation | reserves | and | | Interest | equity |
| | | reserve | reserve | | loss | | | |
| | | | | | account | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Balance at 1 July | 25,212 | (13,057) | 2,117 | (50) | 27,404 | 41,626 | 465 | 42,091 |
| 2008 | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Transactions with | | | | | | | | |
| owners: | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Dividends | - | - | - | - | - | - | (68) | (68) |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Transactions with | - | - | - | - | - | - | (68) | (68) |
| owners | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Profit for the | - | - | - | - | 4,697 | 4,697 | 14 | 4,711 |
| period | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Other comprehensive | | | | | | | | |
| income: | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Exchange differences | - | - | 3,225 | - | - | 3,225 | 129 | 3,354 |
| on translation | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Total comprehensive | - | - | 3,225 | - | 4,697 | 7,922 | 143 | 8,065 |
| income for the | | | | | | | | |
| period | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
| Balance at 31 | 25,212 | (13,057) | 5,342 | (50) | 32,101 | 49,548 | 540 | 50,088 |
| December 2008 | | | | | | | | |
+----------------------+---------+-------------+-------------+----------+---------+---------+----------+---------+
Consolidated Statement of Changes in Equity
For the period ended 31 December 2009
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| | Share | Reverse | Foreign | Other | Profit | Total | Minority | Total |
| | capital | acquisition | translation | reserves | and | | Interest | equity |
| | | reserve | reserve | | loss | | | |
| | | | | | account | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| Balance at 1 July | 25,212 | (13,057) | 2,117 | (50) | 27,404 | 41,626 | 465 | 42,091 |
| 2008 | | | | | | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| | | | | | | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| Transactions with | | | | | | | | |
| owners: | | | | | | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| Dividends | - | - | - | - | - | - | (273) | (273) |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| Purchase of own | - | - | - | (3,720) | - | (3,720) | - | (3,720) |
| shares | | | | | | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| Transactions with | - | - | - | (3,720) | - | (3,720) | (273) | (3,993) |
| owners | | | | | | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| | | | | | | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| Profit for the period | - | - | - | - | 11,901 | 11,901 | 179 | 12,080 |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| Other comprehensive | | | | | | | | |
| income: | | | | | | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| Exchange differences | - | - | 1,878 | - | - | 1,878 | 87 | 1,965 |
| on translation | | | | | | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| Actuarial loss on | - | - | - | - | (34,384) | (34,384) | - | (34,384) |
| defined benefit | | | | | | | | |
| pension plan | | | | | | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| Income tax relating | | | | | | | | |
| to components | | | | | | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| of other | - | - | - | - | 9,628 | 9,628 | - | 9,628 |
| comprehensive income | | | | | | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| Total comprehensive | - | - | 1,878 | - | (12,855) | (10,977) | 266 | (10,711) |
| income for the period | | | | | | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| | | | | | | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
| Balance at 30 June | 25,212 | (13,057) | 3,995 | (3,770) | 14,549 | 26,929 | 458 | 27,387 |
| 2009 | | | | | | | | |
+-----------------------+---------+-------------+-------------+----------+----------+----------+----------+----------+
Consolidated Interim Cash Flow Statement
For the period ended 31 December 2009
+-------------------------------------+---------+---------+---------+
| | 6 | 6 | 12 |
| | months | months | months |
| | to | to | to |
| | 31 Dec | 31 Dec | 30 June |
| | 2009 | 2008 | 2009 |
+-------------------------------------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------+---------+---------+---------+
| Profit before tax | 8,344 | 9,627 | 18,408 |
+-------------------------------------+---------+---------+---------+
| | | | |
+-------------------------------------+---------+---------+---------+
| Adjustments for: | | | |
+-------------------------------------+---------+---------+---------+
| Depreciation, impairment and | 1,195 | 1,233 | 2,368 |
| amortisation | | | |
+-------------------------------------+---------+---------+---------+
| (Profit) / loss on sale of | (23) | 69 | (233) |
| property, plant and equipment | | | |
+-------------------------------------+---------+---------+---------+
| Interest payable on bank overdrafts | 684 | 790 | 1,440 |
| and loans | | | |
+-------------------------------------+---------+---------+---------+
| Interest receivable on bank | (172) | (172) | (470) |
| balances | | | |
+-------------------------------------+---------+---------+---------+
| Interest rate swaps | (2) | 771 | 765 |
+-------------------------------------+---------+---------+---------+
| Other finance expense / (income) - | 359 | (525) | (1,822) |
| pensions | | | |
+-------------------------------------+---------+---------+---------+
| (Increase) / decrease in | (575) | (554) | 695 |
| inventories | | | |
+-------------------------------------+---------+---------+---------+
| Decrease / (increase) in trade and | 1,523 | (1,530) | (778) |
| other receivables | | | |
+-------------------------------------+---------+---------+---------+
| (Decrease) in trade and other | (1,720) | (1,319) | (1,167) |
| payables | | | |
+-------------------------------------+---------+---------+---------+
| Increase in long term provisions | 33 | 433 | 1,097 |
| and liabilities | | | |
+-------------------------------------+---------+---------+---------+
| Settlement gain on pension scheme | (1,900) | - | - |
+-------------------------------------+---------+---------+---------+
| Contributions to pension scheme | (1,801) | (824) | (4,219) |
| over and above service cost | | | |
+-------------------------------------+---------+---------+---------+
| Cash generated from operations | 5,945 | 7,999 | 16,084 |
+-------------------------------------+---------+---------+---------+
| Interest paid | (684) | (790) | (1,440) |
+-------------------------------------+---------+---------+---------+
| Income taxes paid | (893) | (2,516) | (5,336) |
+-------------------------------------+---------+---------+---------+
| Net cash generated from operating | 4,368 | 4,693 | 9,308 |
| activities | | | |
+-------------------------------------+---------+---------+---------+
| | | | |
+-------------------------------------+---------+---------+---------+
| Cash flows from investing | | | |
| activities | | | |
+-------------------------------------+---------+---------+---------+
| Purchase of property, plant and | (2,310) | (1,171) | (2,542) |
| equipment | | | |
+-------------------------------------+---------+---------+---------+
| Sale of property, plant and | 85 | 21 | 1,024 |
| equipment | | | |
+-------------------------------------+---------+---------+---------+
| Interest received | 172 | 172 | 470 |
+-------------------------------------+---------+---------+---------+
| Dividends paid to minority | (73) | (68) | (273) |
| interests | | | |
+-------------------------------------+---------+---------+---------+
| Net cash used in investing | (2,126) | (1,046) | (1,321) |
| activities | | | |
+-------------------------------------+---------+---------+---------+
| | | | |
+-------------------------------------+---------+---------+---------+
| Cash flows from financing | | | |
| activities | | | |
+-------------------------------------+---------+---------+---------+
| Buy-back of shares | - | - | (3,720) |
+-------------------------------------+---------+---------+---------+
| Facility fee payments | (170) | - | - |
+-------------------------------------+---------+---------+---------+
| Repayments of amounts borrowed | (750) | (750) | (1,500) |
+-------------------------------------+---------+---------+---------+
| Net cash used in financing | (920) | (750) | (5,220) |
| activities | | | |
+-------------------------------------+---------+---------+---------+
| | | | |
+-------------------------------------+---------+---------+---------+
| Increase in cash and cash | 1,322 | 2,897 | 2,767 |
| equivalents | | | |
+-------------------------------------+---------+---------+---------+
| Cash and cash equivalents at | 16,124 | 12,864 | 12,864 |
| beginning of period | | | |
+-------------------------------------+---------+---------+---------+
| Translation differences | 311 | 893 | 493 |
+-------------------------------------+---------+---------+---------+
| Cash and cash equivalents at end of | 17,757 | 16,654 | 16,124 |
| period | | | |
+-------------------------------------+---------+---------+---------+
Notes to the Interim Financial Statements
For the period ended 31 December 2009
Basis of preparation
These unaudited interim condensed consolidated financial statements (the
"interim financial statements") are for the six months ended 31 December 2009.
They have been prepared in accordance with all major aspects of IAS 34 "Interim
Financial Reporting". They do not include all of the information required for
full annual financial statements, and should be read in conjunction with the
consolidated financial statements of the group for the year ended 30 June 2009.
These financial statements have been prepared under the historical cost
convention, except for the revaluation of certain financial instruments.
The interim condensed consolidated financial statements have been prepared in
accordance with the accounting policies set out in the consolidated financial
statements of the group for the year ended 30 June 2009, except for the adoption
of IAS1 Presentation of Financial Statements (Revised 2007) and IFRS 8 Operating
Segments, and are based on the recognition and measurement principles of all
IFRS and International Financial Reporting Interpretations Committee
interpretations ('IFRICs') issued, effective and adopted for use in the European
Union at 30 June 2010 or expected to be adopted and effective at 30 June 2010.
These IFRSs and IFRICs are subject to ongoing review and possible amendment.
Further standards and/or interpretations may be issued that could apply to the
group's financial statements for the year ending 30 June 2010. If any such
amendments, new standards or interpretations are issued these may lead to the
financial information provided in this report being changed.
The adoption of IAS 1 (Revised 2007) does not affect the financial position or
profits of the group, but gives rise to additional disclosures. The measurement
and recognition of the group's assets, liabilities, income and expenses is
unchanged, however some items that were recognised directly in equity are now
recognised in other comprehensive income. IAS 1 (Revised 2007) affects the
presentation of owner changes in equity and introduces a 'Statement of
comprehensive income'. In accordance with the new standard the entity does not
present a 'Statement of recognised income and expenses (SORIE)', as was
presented in the 2008 consolidated financial statements. Further, a 'Statement
of changes in equity' is presented.
The adoption of IFRS 8 has changed the segments that are disclosed in the
interim financial statements. In the previous annual and interim financial
statements, segments were identified by reference to the dominant source and
nature of the group's risks and returns. Under IFRS 8 the accounting policy for
identifying segments is now based on the internal management reporting
information that is regularly reviewed by the chief operating decision maker.
The accounting policies have been applied consistently throughout the group for
the purposes of preparation of these interim condensed consolidated financial
statements.
Castle Support Services plc is registered in England with company number
5351402. The registered office is Camp Hill, Birmingham, B12 0JJ.
Earnings per share
Basic earnings per share is calculated by dividing the retained profit
attributable to ordinary equity holders of the company by the weighted average
number of ordinary shares outstanding during the period.
+-----------------------------------+-------------+-------------+-------------+
| | 6 | 6 | 12 |
| | months | months | months |
| | to | to | to |
| | 31 Dec | 31 Dec | 30 June |
| | 2009 | 2008 | 2009 |
+-----------------------------------+-------------+-------------+-------------+
| | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------+-------------+-------------+-------------+
| Profit for the period | 5,707 | 4,697 | 11,901 |
+-----------------------------------+-------------+-------------+-------------+
| Weighted average number of | | | |
+-----------------------------------+-------------+-------------+-------------+
| ordinary shares in issue | 118,083,186 | 126,001,875 | 125,456,081 |
+-----------------------------------+-------------+-------------+-------------+
| | | | |
+-----------------------------------+-------------+-------------+-------------+
| Basic and diluted earnings per | 4.83 | 3.73 | 9.49 |
| share (EPS) - pence | | | |
+-----------------------------------+-------------+-------------+-------------+
The weighted average number of ordinary shares in issue excludes treasury shares
acquired during the year ended 30 June 2008 and the year ended 30 June 2009. The
total number of treasury shares held at 31 December 2009 was 7,975,214, with
118,083,186 trading on AIM.
There are no dilutive share arrangements in place.
Reconciliation of movement in net debt
+------------------------------------------+---------+----------+----------+
| | 6 | 6 | 12 |
| | months | months | months |
| | to | to | to |
| | 31 Dec | 31 Dec | 30 |
| | 2009 | 2008 | June |
| | | | 2009 |
+------------------------------------------+---------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------+---------+----------+----------+
| Increase in cash and cash equivalents | 1,322 | 2,897 | 2,767 |
+------------------------------------------+---------+----------+----------+
| Debt related cash flows from financing | 750 | 750 | 1,500 |
| activities | | | |
+------------------------------------------+---------+----------+----------+
| Amortisation of facility fee | (73) | (36) | (50) |
+------------------------------------------+---------+----------+----------+
| Payment of facility fee | 170 | - | - |
+------------------------------------------+---------+----------+----------+
| Translation differences | 311 | 893 | 493 |
+------------------------------------------+---------+----------+----------+
| Movement in interest rate swaps | 2 | (771) | (765) |
+------------------------------------------+---------+----------+----------+
| | 2,482 | 3,733 | 3,945 |
+------------------------------------------+---------+----------+----------+
| Net debt at beginning of period | (6,726) | (10,671) | (10,671) |
+------------------------------------------+---------+----------+----------+
| Net debt at end of period | (4,244) | (6,938) | (6,726) |
+------------------------------------------+---------+----------+----------+
Availability of interim report
Copies of these results are available from the company's registered office at
Camp Hill, Birmingham, B12 0JJ and can be downloaded from our website
www.castlesupportservices.com.
Castle Support Services plc is registered in England with company number
5351402.
Statutory accounts
These unaudited interim consolidated financial statements do not constitute
statutory accounts under sections 434 and 435 of the Companies Act 2006.
The comparative amounts in these interim consolidated financial statements
include extracts from the company's consolidated financial statements for the
year ended 30 June 2009. The company's consolidated financial statements for the
year ended 30 June 2009 have been filed with the Registrar of Companies,
received an unqualified audit report and did not contain statements under
sections 498(2) and 498(3) of the Companies Act 2006.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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