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(MOU.L) Mount Engineering PLC Buy/Sell

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Current Market Information

Time: 03:11 (Market Closed)

Bid	60.00
Ask	65.00
Price	62.50
Previous	62.00
Change	+0.50 (+0.81%)
Last Trade	62.50 (16:30:03)
Trading Vol.	678
Today's High	64.50
Today's Low	64.50

52 Wk Low	40.10
52 Wk Low	(10/07/2009)
52 Wk High	74.95
52 Wk High	(17/04/2009)
52 Wk Change	n/a
52 Wk Change	(n/a%)
4 Wk Volume	12,957
ISIN Number	GB00B1XH2205
Currency	GBX

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Recent News
Date/Time	Headline	Source
18-03-10	Mount Engineering - Final Results	RNS
This news article is displayed preformatted as it may contain results tables RNS Number : 7529I Mount Engineering PLC 18 March 2010 MOUNT ENGINEERING Plc ("Mount" or "Group") PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2009 Year Ended 31 Year Ended 31 December 2008 December 2009 £000 £000 Revenue 9,333 11,778 Operating Profit 2,872 3,257 Profit before tax 2,694 3,071 Profit after tax 1,933 2,178 Earnings per share 8.2p 8.9p * Reduction in Turnover of 20% * Operating Margin 30.8%, up from 27.6% * Cash balances at year end of £4,033k * Net Cash at end of year of £1,709k * Increased final dividend 1.4p per share * Satisfactory start to new financial year For further information: Mount Engineering Group Plc Colin Ainger (Chairman) 07778 160365 Dave Stanham (Chief Executive) 07834 046121 Charles Stanley Securities Nominated Advisor Mark Taylor / Ben Johnston 0207 149 6000 About: Mount Engineering Plc Mount Engineering has three operating subsidiaries, Redapt, Raxton and Hi-Flow Valves Ltd ("Hi-Flow"). Redapt and Raxton, established in the 1970s, specialise in the manufacture and supply of thread converting Adaptors and Reducers that are "Ex Certified", which means that they have been certified for use in potentially explosive or hazardous areas. The products of both companies provide a method of insulating and protecting electrical wiring and installations in hazardous areas such as oil refineries where a stray spark from an electrical installation could have severe consequences. The requirement for thread converting components arises due to the diverse range of thread specifications incorporated into equipment used in hazardous areas. Hazardous area certification is intrinsic to the market that Redapt and Raxton sell to. Hi-Flow was established in 1994 and is engaged in the stocking, distribution and merchanting of industrial valves and actuators to the oil, gas, petrochemical, process and related industries throughout the world. The key attributes of Redapt, Hi-Flow and Raxton are that they are well-established companies within their industries, each having a strong brand name and recognition for quality products. The major end user markets for all three subsidiaries are the oil and gas and petrochemical industries; however, they also serve a range of other industrial markets including mining, waste water and pharmaceuticals MOUNT ENGINEERING Plc ("Mount" or "Group") PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2009 Chairman's Statement The Annual Report and Accounts of Mount Engineering Plc ("Mount" or "Group") are for the year ending 31 December 2009. In common with many companies in the specialist manufacturing and distribution arena, the calendar year 2009 has been a difficult one, however, action taken by management demonstrate that Mount has produced a resilient performance in current market conditions. The Group is involved in the manufacture and supply of threaded adaptors and reducers, certified for use in potentially explosive or hazardous areas. It is also a stockist and provider of industrial valves and actuators. The major end user markets are the oil and gas and petrochemical industries, however, they also serve a range of other industrial markets including mining, waste water, dust extraction and pharmaceuticals. Results The results for the Group have been prepared in accordance with International Financial Reporting Standards ("IFRS"). Turnover for the year of £9.3m (2008 £11.8m) has generated an operating profit of £2.9m (2008 £3.25m), equating to 30.8% of turnover (2008 27.6%) and basic earnings per share of 8.2 pence per share (2008 8.9 pence per share). As at the year end, the Group had a strong balance sheet position with cash balances of £4m and net cash of £1.76m, (2008 £3.8m and £0.5m respectively). The Board intend to propose to shareholders the payment of a final dividend of 1.4p per Ordinary share, which, if approved at the AGM, will be paid on 2 June 2010 to shareholders on the register at 14 May 2010. Total dividend for the year is 2.4 pence per share (2008 2.3 pence per share). Outlook Although the Group experienced a relatively buoyant start to 2009, order intake gradually declined and stabilised at a lower level. However, prompt action taken by management in respect of the supply chain positioned the Group to improve margins despite the lower turnover, such that Mount is well placed to benefit from any upturn in demand later in 2010 and beyond. With short term visibility of its own order book, Mount relies on a number of external indicators to assist in forecasting its own activity. Indicative levels of capital spend from major oil companies, approval of major infrastructure projects, tender enquiry levels, and published forward order books of equipment manufacturers are all reviewed. As a supplier of late cycle products in respect of the installation of electrical equipment in new capital projects, the timing of any benefit to Mount from increased sales is also an unknown variable. Routine maintenance and refurbishment of older facilities provides a more and reoccurring immediate benefit to the Group. In summary, our key indicators show our sales have stabilised. Colin Ainger Chairman Business Review Operations An encouraging start to the 2009 year could not be sustained as the general effects of the worldwide economic crisis began to bite. As a supplier of late cycle products, delays to new capital expenditure projects impact the Group, though a level of exposure to ongoing routine maintenance of existing facilities helps to mitigate that. An overall 20% decline in revenues from the Redapt and Raxton Exd businesses in comparison to the prior year 2008 has been recorded. Much of the decline is the result of distributors and electrical wholesalers reducing the inventory levels they are prepared to carry to match the downturn in the industry. In this respect, the reduction in turnover has probably been greater than the overall reduction in the market. In turn, this has placed a greater reliance on the business to act as a stockist, and to carefully manage its own supply chain. Not all markets have reacted to the global economic crisis to the same degree; whilst key UK and European sales have declined in line with the overall 20% reduction in sales, North America has witnessed a 30% decline whereas the Middle East, about half the market size of the USA, has seen 14% growth in the period. The take up of the new Exd breather drain, a plug which effectively drains any moisture build up in the atmosphere, and launched towards the end of the prior year, has seen slower adoption that had been hoped for. The requirement for prime contractors to make changes in electrical enclosure design, necessary for acceptance of this product, has taken additional sales engineering effort. Considerable effort has been spent during the year in ensuring the Group's products meet the needs of the Brazilian INMETRO certification standards. Approvals have been received and a distributor appointed for what could be an exciting new market for the Redapt and Raxton products. In addition, all existing certification has been reviewed and updated to the latest standards due to be implemented in 2010. A promising start to the year for Hi-Flow, our valve and actuator stockist and distributor, was not matched in the second half. Overall, year on year sales declined 21%, and once again highlighted the dependence on winning a number of significant merchanted orders. Merchanted sales, i.e. where packages of various valve specifications are required on a project basis, are by their very nature irregular. The number of tender enquiries processed reduced by 8% in the second half, in line with a reduction in industry activity, although the average value of packaged bids increased 1% during the same period. The opening order book for 2010 is considerably less than prior year, however the comparative opening 2009 orders were themselves three times higher than the prior year, primarily due to one significant order being outstanding at last year end. This is typical of the market in which Hi Flow operates. Stock sales for the year are 20% below prior year and account for approximately two thirds of total Hi-Flow sales, in line with prior year proportionate sales. Stock management has again been difficult as suppliers have been managing their businesses on a more reactive basis, and in some cases switching manufacture between different factories, so delivery times have tended to increase as the year has progressed. The introduction of the Saxon branded wafer check valves in the final quarter of 2008 has seen a gradual acceptance in the market place and an encouraging number of enquiries are now being handled. The Saxon range is aimed at penetrating a different market, previously closed to Hi-Flow, from the market satisfied by the high specification wafer check valves provided by our existing suppliers. In difficult market conditions, it is pleasing to announce an overall 4% improvement in gross margin over the prior year to 53.6%. Actions taken at the end of the previous year to switch suppliers for Redapt and Raxton and lock in to longer term fixed price supply contracts have also helped to improve the gross margin. Raw material costs are a significant part of the overall cost of manufacture and a number of fixed price supply contracts reduced the impact of fluctuating raw material costs. Another feature of the change in supply contracts was the ability to freight finished product by sea rather than by air, thereby reducing overall carriage costs. Throughout the year, the Group has had a high level of support from management and staff at each of our locations and the Board would like to place on record our appreciation for that support in what have been challenging times for specialist manufacturing and distribution businesses. Management continued to monitor risks to the business and take action accordingly. An example of action taken is the entering into of longer term material supply contracts already referred to. Overall within the Group, there is limited exposure to currency fluctuation as a result of being able to match sales and purchases in both the US dollar and the Euro. Sterling continues to be the dominant trading currency within the Group. The Group recorded a foreign exchange gain of £128k in the year. Although there is some overlap in the products sold by both Redapt and Raxton, there is very little client and limited geographical overlay. No customer accounts for more than 10% of the combined sales. At Hi-Flow, where much larger individual sales values have historically occurred, no customer accounted for more than 10% of total sales. The Group has export sales outside the UK of 55% of turnover, which is up from 45% recorded in the prior year. The Group employs 82 people (2008: 86), 56% of whom are categorised as direct labour, working in the machine shops or warehouses. Health and safety systems are in place in all three locations and in the twelve month period to 31 December 2009, a total of 81,838 man-hours were worked with no lost time recorded, (prior year 88,589 man-hours, with 69 hours lost time recorded). For the year to 31 December 2009, staff turnover was 6%, (prior year 10%), and the reduction is probably reflective of the uncertain economic climate. During the year, excluding orientation and job training of new employees, a total of 322 man-hours (2008: 854 man-hours) were spent on training. The reduction is partly down to the absence of new products being introduced in the period and the completion of National Vocation Qualification ("NVQ") training of new production staff in 2008. Anticipating the correct stock levels to meet customer demand is crucial to the success of the Group. At the year end, the Group held stock valued at £1.65m (31 December 2008 £1.8m). Cash conversion was excellent, as evidenced by cash generated from operations at £3,497k (2008 £3,328k), debt repayment was £960k (2008 £908k), purchase of own shares £648k. Despite a reduction of £130k from interest received, our cash balances increased by £215k during the year. The Group has performed comfortably within the covenants set by the terms of its banking loans. Strategy The strategy of the Group continues to be the development of strong brand names and the manufacture and distribution of quality engineered products via excellent customer service. The Group will continue to focus on products that generate high gross margins which in turn are expected to deliver superior operating profit and strong cash flow. This strategy is equally applicable for organic growth or expansion through acquisition. A number of prospects have been reviewed for potential acquisition and abortive costs of £60k were incurred in the first half in respect of one such acquisition, which, after concluding due diligence, the Board decided not to proceed with. The Board is actively seeking suitable additions to the Group. Risk The Group is exposed to a number of risks in executing its strategy, including maintenance of the Group's certifications, and fluctuations in raw material costs. Further risks include the management of the Group's supply chain and the ability of Hi-Flow to secure further merchanted orders. The market in which the Group sells the majority of its products, the oil and gas market, has been sustained by a historically high oil price, which has fuelled an increased demand for products from the oil and gas industry. Any long term prospect of a sub US$40 bbl may damage this market. The Group is looking to sell its products into new markets, such as the dust extractive industry. The Group employs a number of key individuals whose drive and commitment are fundamental to the ongoing success of the Group. MOUNT ENGINEERING Plc CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2009 Notes Year Ended Year Ended 31 December 31 December 2009 2008 £000 £000 Revenue 9,333 11,778 Cost of sales (4,469) (6,249) -------------- -------------- Gross profit 4,864 5,529 Operating expenses (1,992) (2,272) -------------- -------------- Operating profit 2,872 3,257 Investment Income 35 165 Finance Costs (213) (351) -------------- -------------- Profit before taxation 2,694 3,071 Taxation 3 (761) (893) -------------- ----------- Profit for the period 1,933 2,178 ===== ===== Basic and fully diluted 2 8.2p 8.9p earnings per share ====== ====== MOUNT ENGINEERING Plc CONSOLIDATED BALANCE SHEETAT 31 DECEMBER 2009 Notes 2009 2008 £'000 £'000 Non current assets Intangible 4 14,088 13,997 Tangible 1,381 1,442 -------------- -------------- 15,469 15,439 -------------- -------------- Current assets Inventories 1,658 1,835 Trade and other receivables 1,551 2,418 Cash and cash equivalents 4,033 3,818 -------------- -------------- 7,242 8,071 Total Assets 22,711 23,510 -------------- -------------- Equity Share Capital 244 244 Share Premium 15,532 15,532 Retained Earnings 3,380 2,622 _______ _______ 19,156 18,398 Non Current Liabilities Borrowings 1,443 2,318 Deferred Tax Liabilities 37 38 ________ ________ 1,480 2,356 Current Liabilities Trade and other payables 827 1,325 Tax liabilities 367 465 Borrowings 881 966 ________ ________ 2,075 2,756 _________ _________ Total Liabilities 3,555 5,112 _______ _______ Total Equity and Liabilities 22,711 23,510 -------------- -------------- Attributable to equity holders of the Group Share Share Retained Capital Premium Earnings Total £000 £000 £000 £000 As at 31 December 2008 244 15,532 2,622 18,398 Profit for the period - - 1,933 1,933 Dividends Paid (539) (539) Purchase of own shares (648) (648) Share based payments 12 12 At 31 December 2009 244 15,532 3,380 19,156 MOUNT ENGINEERING Plc CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE YEAR ENDED 31 DECEMBER 2009 Year Ended Year Ended 31 December 2009 31 December 2008 £'000 £'000 Net cash inflow from operating activities 2,424 1,962 ------------ ------------ Development Costs (91) - Interest Received 35 165 Proceeds from sale of property, plant and - 25 equipment Purchases of property, plant and (6) (6) equipment ------------ ------------ Net cash inflow (outflow) from investing (62) 184 activities ------------ ------------ Cash flows from financing activities Dividends Paid (539) (512) Purchase of ordinary shares (648) - Repayment of bank loans (835) (835) Repayment of loan notes (125) (73) ------------ ------------ Net cash from financing activities (2,147) (1,420) ------------ ------------ Net increase in cash and cash equivalents 215 726 ------------ ------------ Cash and cash equivalents at beginning of 3,818 3,092 period Cash and cash equivalents at end of 4,033 3,818 period Year Ended 31 Year Ended 31 December 2009 December 2008 Reconciliation of operating £000 £000 profit to operating cash flow Profit from operations 2,872 3,257 Depreciation on property, plant and 67 65 equipment Share options 12 10 (Gain) on disposal of property, plant and equipment - (5) Operating cash flows before movements in working capital 2,951 3,327 Operating cash flows before movements in working capital 3,317 Decrease /(increase) in 177 (183) inventories Decrease/(increase) in 867 (239) receivables (Decrease)/increase in (498) 423 payables Cash generated from operations 3,497 3,328 Taxation paid (860) (1,015) Interest paid (213) (351) Net cash from operating 2,424 1,962 activities NOTES TO THE FINANCIAL INFORMATION 1. Basis of preparation and financial information The financial information in this preliminary announcement has been prepared in accordance with the accounting policies set out in the financial statements of Mount Engineering Plc for the year ended 31 December 2009. An auditor's report has not yet been made on those statutory accounts. The financial information in this document does not constitute the Group's statutory accounts for the period ended 31 December 2009 but is derived from those accounts. Statutory accounts for 2009 will be delivered following the Company's Annual General Meeting. 2. Earnings per share Earnings per share is calculated on the basis of profit for the year after tax divided by the weighted average number of shares in issue for 2009 of 23,702,124 (2008 24,401,429). Pro-forma earnings per share have also been calculated to allow shareholders to gain a clearer understanding of the trading performance of the Group. 2009 2008 Earnings Weighted Average No Per Share Amount Earnings Weighted Average No Per Share Amount £000's of Shares pence £000's of Shares pence Earnings attributable to ordinary shareholders 1,933 23,702,124 8.2p 2,178 24,401,429 8.9p 3. Taxation Year Ended 31 December Year Ended 31 December 2008 2009 £'000 £'000 Corporation tax 755 916 Deferred tax (1) - Under/(over) provision 7 (23) previous year ----------- ----------- 761 893 ===== ===== Factors affecting the tax charge for the period £'000 £'000 Profit on ordinary activities 2,694 3,071 before tax ===== ===== Profit before tax multiplied 754 860 by standard rate Effect of: Expenses not deductible for 21 11 tax purposes Other timing differences (14) 22 ----------- ----------- Current tax charge for the 761 893 period ===== ===== 4. Intangible fixed assets £'000 Goodwill 14,002 Development Costs 86 Total 14,088 Copies of the preliminary announcement are available from The Chocolate Works, Bishopthorpe Road, York YO23 1DE and also available on the company's website The Annual Report and Accounts for the year ended 31 December 2009 will be posted to shareholders on or about 14 April 2009 This information is provided by RNS The company news service from the London Stock Exchange END FR JRMFTMBTBBBM More
05-03-10	Mount Engineering - Holding(s) in Company	RNS
RNS Number : 1860I Mount Engineering PLC 05 March 2010 TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES 1. Identity of the issuer or the underlying issuer of `existing shares to which voting rights are attached: Mount Engineering plc` 2 Reason for the notification(please tick the appropriate box or boxes): `X` An acquisition or disposal of voting rights An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments An event changing the breakdown of voting rights Other (please specify): `3. Full name of person(s) subject to the notification Williams de Broe Ltd` obligation: 4. Full name of shareholder(s)(if different from 3.): 5. Date of the transaction and date on which the threshold is crossed or reached: 6. Date on which issuer notified: 7. Threshold(s) that is/are crossed or reached: `6%` 8. Notified details: A: Voting rights attached to shares `Class/type of Situation previous Resulting situation after the triggering transaction` `shares to the triggering` `transaction` if possible using the ISIN CODE `Number Number Number Number of voting % of voting` `of of of shares rights rights` `Shares Voting` `Rights` `Direct Direct Indirect Direct Indirect` `Ord 1p each 1,421,498 1,421,498 6.06` GB00B1XH2205 B: Qualifying Financial Instruments Resulting situation after the triggering transaction `Type of financial Expiration Exercise/ Number of voting % of voting` `instrument date Conversion rights that may be rights` `Period acquired if the` `instrument is` `exercised/` `converted.` C: Financial Instruments with similar economic effect to Qualifying Financial Instruments Resulting situation after the triggering transaction `Type of financial Exercise Expiration Exercise/ Number of voting % of voting rights` `instrument price date Conversion rights instrument` `period refers to` `Nominal Delta` Total (A+B+C) Number of voting rights Percentage of voting rights `1,421,498 6.06%` 9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable: Proxy Voting: 10. Name of the proxy holder: 11. Number of voting rights proxy holder will cease to hold: 12. Date on which proxy holder will cease to hold voting rights: 13. Additional information: `14. Contact name: Michael Duffell - Compliance Officer` `15. Contact telephone number: 020 7072 7577` This information is provided by RNS The company news service from the London Stock Exchange END HOLUGUUPWUPUGQA More
26-01-10	Mount Engineering - Trading Update & Notice of Results	RNS
RNS Number : 0957G Mount Engineering PLC 26 January 2010 Mount Engineering Plc Trading Update and Notice of Results Mount Engineering Plc ("Mount" or "the Group"), today announces a trading update ahead of its preliminary results for the year to 31 December 2009. The markets in which Mount operate have continued to prove challenging in the second half of the year, however measures taken to safeguard margin through tighter control of the supply chain and overheads have benefited the operating margin. Consequently, the Board anticipates that the Group's pre-tax profit will be in line with market expectations for the year at £2.7m. The Group's cash flow management has been excellent and Mount enters the new year in a significant net cash position of £1.7m, strengthening the Board's ability to seek out a suitable acquisition target. Our key indicators show our sales have stabilised and market consensus would lead us to anticipate modest growth in the second half. The Board is satisfied with the start to the current year. The Board anticipates releasing the preliminary results on March 18th 2010. For further information: Mount Engineering Plc `Colin Ainger (Non-Executive Chairman) +44 7778 160 365` `David Stanham (Chief Executive Officer) +44 7834 046 121` Charles Stanley Securities - Nominated Adviser & Broker `Rick Thompson / Philip Davies / Ben Johnston +44 20 7149 6482` `Matt Marchant (Corporate Broking) +44 20 7149 6294` `Mount Engineering Plc` ("Mount" or "the Group") Background Note Mount has three operating subsidiary companies, Redapt, Raxton and Hi Flow Valves Limited ("Hi Flow"). Each subsidiary has an executive team responsible for the day to day management of the business. A Group team of three executives directs and co-ordinates the subsidiaries. Three experienced non executive directors together with the Chief Executive comprise the Group board. Redapt, based in the West Midlands, designs and manufactures an extensive range of thread conversion components, adaptors, reducers, stopping plugs, bulkhead penetrators and other products that have multi sector application wherever there is a risk of explosion or fire in hazardous environments or aggressive applications typically in the oil & gas, petrochemical and chemical industries. Raxton, based in Aldridge, manufactures "ex" certified thread conversion components. Raxton's main end user markets are the oil & gas, petrochemical and chemical industries. Raxton also extends their business into non-hazardous area applications in more industrial based market segments. Hi Flow, based in Mildenhall, stocks, distributes and merchants a range of industrial valves and actuators to the oil & gas, petrochemical, process and related industries throughout the world. Hi Flow has signed stocking distributor agreements with a number of suppliers providing a range of cast steel gate, globe check and ball valves. Hi Flow has launched its own brand, "Saxon", for the production and distribution of wafer check valves and continues to seek additional products that will ensure it can offer a broad range of products. This information is provided by RNS The company news service from the London Stock Exchange END MSCUVABRRRAAUAR More

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Date/Time	Subject	Author
Fri 14:24	HOLD Good Result even in the Down Turn	JJ PP BB


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	I am happy with the results show a well run company something which is lacking in the rest of my portfolio. Things are a seeming a little weak at the start of the year however I am not sure what will come later on we will just have to wait and see. More \| View thread (1) \| Respond \| Login to Vote up
20-05-09	BUY What is Happening with this stock ??	JJ PP BB


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	I don't understand why this stock keeps going down from a bid price point of view. The rest of the sector seems to be holding there own why does this keep going down. Any ideas ?? More \| View thread (1) \| Respond \| Login to Vote up
15-03-09	Re: Is anybody alive out there?	Gavster-NBC


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	Hi, I'm here and got it on close watch. We are expecting a rise toward good results.... More \| View thread (2) \| Respond \| Login to Vote up
15-03-09	BUY Is anybody alive out there?	THOMARTINWILSON


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	Just wondering if this a live board or not!!! Thursday will tell if I have been talking rubbish these last few months. More \| View thread (2) \| Respond \| Login to Vote up

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