RNS Number : 3710E
Forest Support Services PLC
21 December 2009
Forest Support Services Plc
Chairman's Statement
I am pleased to report that the Company achieved a profit of £186,010, before taxation, on revenues of £4,340,466. Increased turnover and more efficient utilisation of overhead have improved earnings during the traditionally weaker first half.
Trading has been strong at Newport, with increased revenues from existing framework contracts and improved performance during the key summer months. Bristol and Winchester have performed in line with expectations during the period.
Results
The Group has recorded a profit of £186,010 (2008: £41,991) for the period, before taxation. Turnover for the period increased by 25% to £4,340,466 (2008 £3,463,476). The Group held cash at the period end of £421,171 (2008: £376,676).
As in previous years the Company will not pay an interim dividend but expects to continue its progressive dividend policy. The final dividend for the year ending 31 March 2009 will be paid on 12th January 2010.
Current Trading and Future Prospects
Traditionally, second half performance has been stronger than first half. In the current year it is not clear that this seasonal pattern of trading will prevail and, with limited visibility about workload, it is not yet possible to form clear expectations about the second half.
The start of the second half has been less strong than in previous years with certain key projects suffering start-date delays. However, these projects are expected to make a contribution in the second half. Demand from other market segments remains resilient. The Board will continue to monitor closely changes in levels of spending on its services.
The Company has a strong position within its principal markets, with well established customer relationships. The business remains focussed upon serving the Infrastructure RMI (Repair, Maintenance and Improvement) market, in which demand has historically been stable and resilient.
It is expected that the Company will achieve a satisfactory conclusion to the full year.
Conclusion
As reported previously, the Company will continue to pursue opportunities that can be served from the existing depot network, with a continued focus on existing market segments, which provide resilience. This will provide the Company with a stable platform for future growth. However, there remains uncertainty regarding the level of future public expenditure.
C C Powell
Chairman
Date: 21st December 2009
Forest Support Services plc
Consolidated Income Statement
for the six months ended 30 September 2009
Unaudited Unaudited Audited
Six months to Six months to Year to
30 September 2009 30 September 2008 31 March
£ £ 2009
£
REVENUE 4,340,466 3,463,476 6,752,949
Cost of sales (3,153,452) (2,462,133) (4,626,808)
GROSS PROFIT 1,187,014 1,001,343 2,126,141
Administrative expenses (986,160) (941,242) (1,875,686)
OPERATING PROFIT 200,854 60,101 250,455
Finance costs (14,844) (24,809) (43,342)
Finance income - 6,699 8,053
PROFIT BEFORE TAXATION 186,010 41,991 215,166
Taxation (52,678) (17,019) (65,070)
PROFIT FOR THE PERIOD 133,332 24,972 150,096
0.71p 0.13p 0.80p
EARNINGS PER SHARE
Basic and diluted
Forest Support Services plc
Consolidated Balance Sheet
as at 30 September 2009
Unaudited30 Unaudited30 September Audited31 March
September 2009£ 2008£ 2009£
NON-CURRENT ASSETS
Goodwill 544,291 544,291 544,291
Property, plant and 973,076 1,008,061 871,953
equipment
Deferred tax asset 63,078 59,974 86,516
1,580,445 1,612,326 1,502,760
CURRENT ASSETS
Trade and other 2,398,984 1,932,955 1,773,505
receivables
Cash and cash 421,171 376,676 580,961
equivalents
2,820,155 2,309,631 2,354,466
TOTAL ASSETS 4,400,600 3,921,957 3,857,226
CURRENT LIABILITIES
Trade and other 1,309,258 1,013,397 917,060
payables
Current tax 99,011 - 69,771
liabilities
Bank loan 94,175 74,175 89,212
Obligations under 120,322 110,180 110,180
finance leases
1,622,766 1,197,752 1,186,223
NON-CURRENT LIABILITIES
Bank loan 182,541 286,545 234,395
Obligations under 145,037 174,774 119,684
finance leases
327,578 461,319 354,079
TOTAL LIABILITIES 1,950,344 1,659,071 1,540,302
NET ASSETS 2,450,256 2,262,886 2,316,924
EQUITY
Share capital 935,350 935,350 935,350
Share premium 1,513,530 1,513,530 1,513,530
Retained earnings 1,376 (185,994) (131,956)
2,450,256 2,262,886 2,316,924
Forest Support Services plc
Consolidated Cash Flow Statement
for the six months ended 30 September 2009
Six months to 30 Six months to 30 Year to 31 March
September 2009£ September 2008£ 2009£
NET CASH FROM OPERATING 183,584 34,574 494,393
ACTIVITIES
INVESTING ACTIVITIES
Interest received - 6,699 8,053
Purchases of property, plant (217,535) (81,705) (175,304)
and equipment
(217,535) (75,006) (167,251)
FINANCING ACTIVITIES
Dividends paid - - (71,086)
Repayment of borrowings (46,891) (70,598) (107,711)
Repayment of obligations (78,948) (58,331) (113,421)
under finance leases
(125,839) (128,929) (292,218)
NET (DECREASE)/INCREASE IN (159,790) (169,361) 34,924
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT 580,961 546,037 546,037
BEGINNING OF PERIOD
CASH AND CASH EQUIVALENTS AT 421,171 376,676 580,961
END OF PERIOD
NET CASH FROM OPERATING Six months to 30 Six months to 30 Year to 31 March
ACTIVITIES September 2009£ September 2008£ 2009£
Operating profit 200,854 60,101 250,455
Adjustments for:
Depreciation on property, 230,855 242,310 472,014
plant and equipment
OPERATING CASHFLOWS BEFORE 431,709 302,411 722,469
MOVEMENTS IN WORKING CAPITAL
Increase in debtors (625,479) (232,971) (78,340)
Increase/(decrease) in 392,198 (10,057) (106,394)
creditors
CASH GENERATED FROM OPERATIONS 198,428 59,383 537,735
Interest paid (14,844) (24,809) (43,342)
Tax paid - - -
NET CASH GENERATED FROM 183,584 34,574 494,393
OPERATIONS
Forest Support Services plc
Notes to the condensed interim financial statements
1. General Information
Forest Support Services Plc (the "Company") is a company domiciled in England and Wales whose registered office address is Forest House, Broad Quay Road, Felnex Industrial Estate, Newport NP19 4PN. The condensed consolidated interim financial statements of the Company for the six months ended 30 September 2009 comprise the Company and its subsidiaries (together referred to as the "Group").
The condensed consolidated interim financial statements do not constitute statutory accounts as defined in Section 435 of the Companies Act 2006.
The financial information for the year ended 31 March 2009 has been extracted from the statutory accounts. The auditors' report on the statutory accounts was unqualified and did not contain a statement under Section 237 of the Companies Act 1985. A copy of those financial statements has been filed with the Registrar of Companies. The condensed consolidated interim financial statements do not include all of the information required for full annual financial statements.
The accounting policies used in the preparation of the condensed consolidated interim financial statements are the same as those applied in the year ended 31 March 2009. As permitted, this interim report has been prepared in accordance with the AIM Rules for companies and is not compliant in all respects with IAS 34 'Interim Financial Statements'. The condensed consolidated financial statements do not include all of the information required for full annual financial statements and therefore cannot be considered as in full compliance with IFRS.
The condensed consolidated interim financial statements were authorised for issue on 17th December 2009.
2. Earnings per share
Basic earnings per share is based on the earnings for the year attributable to shareholders and on the weighted average number of shares in issue during the year. The number of shares used for calculating basic earnings per share was 18,706,961. As the exercise price of the share options granted by the company exceeded the average market price of the shares during the six months ended 30 September 2009, and for the six months ended 30 September 2008 and the year ended 31 March 2009, there is no dilutive impact on earnings per share in the period.
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