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| Date/Time | Headline | Source |
|---|---|---|
| 18-11-09 | RNS |
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RNS Number : 7018C UMECO PLC 18 November 2009 TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES
shares to which voting rights are attached:
2 Reason for the notification (please tick the appropriate box or boxes):
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):
notification obligation:
from 3.):
the threshold is crossed or reached:
8. Notified details: A: Voting rights attached to shares
if possible using
the ISIN CODE
B: Qualifying Financial Instruments Resulting situation after the triggering transaction
N/a C: Financial Instruments with similar economic effect to Qualifying Financial Instruments Resulting situation after the triggering transaction
Total (A+B+C)
Number of voting rights Percentage of voting rights
9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable: Bank of America Corporation is the ultimate parent company of Merrill Lynch International Proxy Voting:
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:
15. Contact telephone number: 01926 331800 This information is provided by RNS The company news service from the London Stock Exchange END
HOLBPBTTMMTBBBL More |
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| 05-11-09 | RNS |
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RNS Number : 0270C UMECO PLC 05 November 2009 Financial Services Authority TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES
of existing shares to which voting rights are attached:
2. Reason for the notification (please tick the appropriate box or boxes):
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):
notification obligation:
5. Date of the transaction and date on which the threshold is crossed or reached:
reached: 8. Notified details:
A: Voting rights attached to shares
if possible using
the ISIN CODE
GBP 0.25
B: Qualifying Financial Instruments
Resulting situation after the triggering transaction
C: Financial Instruments with similar economic effect to Qualifying Financial Instruments Resulting situation after the triggering transaction
Total (A+B+C)
9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable: Legal & General Group Plc (Direct and Indirect) (Group) Legal & General Investment Management (Holdings) Limited (LGIMH) (Direct and Indirect) Legal & General Investment Management Limited (Indirect) (LGIM) Legal & General Group Plc (Direct) (L&G) (2,024,330 -4.20 % = LGAS, LGPL & PMC)
Management (Holdings) Limited (Direct) (LGIH)
(Direct) (LGIMHD) (1,864,533
-3.87 % = PMC)
(PMC) (1,864,533 -3.87 % = PMC)
(LGPL)
Proxy Voting:
N/A
to hold: N/A
voting rights: N/A
13. Additional information:
01926 331800 This information is provided by RNS The company news service from the London Stock Exchange END
HOLBABBTMMMMBLL More |
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| 04-11-09 | PRN |
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This news article is displayed preformatted as it may contain results tables
4 November 2009
Umeco plc ("Umeco")
Interim results for the six months to 30 September 2009
Umeco, the advanced composite materials and supply chain services company,
announces its interim results for the six months to 30 September 2009.
Financial summary
Underlying
2009 2008 Change change
£ million £ million per cent per cent
Revenue 199.6 197.2 + 1.2 - 7.7
Adjusted operating profit 13.2 15.7 - 15.9 - 22.5
Adjusted profit before tax 9.4 13.0 - 27.7 n/a
2009 2008 Change
Pence Pence per cent
Adjusted earnings per share 13.2 18.1 -27.1
Interim dividend 6.5 6.5 -
30 Sept 31 March
2009 2009
£ million £ million
Net debt 90.6 120.2
Highlights
* Difficult market conditions continued
* Materially reduced contribution from Composites
* Robust performance from Supply Chain with operating profit up over 50 per cent
* Successful cost reduction programme implemented; £3.0 million estimated annual
savings
* Working capital to sales ratio reduced to 23.0 per cent compared to 27.6
per cent for the year to 31 March 2009
Chairman
* Neil Johnson appointed Chairman on 19 October following the retirement of
Brian McGowan in August.
Clive Snowdon, Chief Executive of Umeco plc, said:
"As indicated in our July 2009 Interim Management Statement, the key markets we
serve have been significantly affected by the economic downturn resulting in
lower demand for our products and services compared to the first half of last
year, which saw very buoyant demand.
We have continued to take action to lower costs, succeeded in significantly
reducing net debt and improved our working capital position. Our long term
financing was secured in June 2009.
The civil aircraft backlog for Supply Chain remains high and Composites is
likely to benefit from delayed motor sport orders and a recovery in the wind
market in the second half of the year.
Although there continue to be challenges for the Group and the timing of
recovery in our long term growth markets remains uncertain, our expectations
for the current financial year have not changed since the time of making our
Interim Management Statement and we remain confident that our long term
prospects are robust. Our focus in the short to medium term is to be vigilant
to changing conditions and to navigate the Group successfully through these
difficult times."
- Ends -
For further information, please contact:-
Umeco plc Tel: +44 (0) 1926 331 800
Clive Snowdon, Chief Executive
Doug Robertson, Finance Director
www.umeco.com
Tulchan Communications Tel: +44 (0) 207 353 4200
Lucy Legh
Matthieu Roussellier
Further Information on Umeco plc
Umeco is a leading innovator in distribution and supply chain management to the
aerospace & defence industries, harnessing new methods for enhancing its
customers' performance and profitability. Umeco also has significant
manufacturing interests in advanced composite materials for a growing range of
applications in its core aerospace & defence markets and in other high
performance technology industries such as motor sport, automotive and wind
energy.
Listed on the London Stock Exchange, Umeco had revenue from continuing
operations of £415.3 million in the year to 31 March 2009.
Umeco is managed through two business streams:-
Umeco Composites - comprises a Structural Materials business and a Process
Materials business. With seven operating units located throughout the UK,
Europe and the US, it provides a range of services, products, design expertise
and tooling solutions principally to the aerospace market and other users of
advanced composite materials.
Customers include Boeing, Airbus, BAE Systems, manufacturers of wind turbine
blades, a number of manufacturers of high performance super cars and Formula 1
teams.
Umeco Supply Chain - a leading international provider of value-added
distribution and supply chain outsourcing services to customers in the
aerospace & defence market. With its specialisation in the supply of small and
medium value components and sophisticated IT systems, its growing global
customer base can enjoy significant operational, cost and working capital
benefits.
Customers include Rolls-Royce plc, BAE Systems, Safran Group, Parker Aerospace,
Goodrich, Thales Aerospace, Turbomeca, ATK, Lockheed Martin and the US
Department of Defense.
Note on underlying and adjusted measures
Underlying measures of the change in revenue and operating profit are
calculated at constant exchange rates and adjusting for the effects of
acquisitions.
Adjusted figures are used by Umeco as key performance indicators. Adjusted
figures are stated before profits arising on the divestment of discontinued
operations, amortisation and impairment charges relating to intangible assets,
significant items, the revaluation of financial instruments based on their
market values and associated tax effects. The differences between the adjusted
and unadjusted measures of operating profit, profit before tax and profit
attributable to equity holders of the parent are reconciled in note 5 to this
announcement. The narrative in this announcement is based on the adjusted
measures of operating profit, profit before tax and earnings per share. These
provide a more consistent measure of operating performance.
Chief Executive's Review
Results and dividend
In our Annual Report for the year to 31 March 2009 we highlighted that the
global economic downturn would lead to lower demand for our products and
services. This has been the trend we encountered in the first half of the
current year; while in the same period in the prior year we achieved
significant growth in both revenue and operating profits.
Revenue in the six months to 30 September 2009 increased by 1.2 per cent to £
199.6 million (2008: £197.2 million). At constant exchange rates and adjusting
for the effect of the acquisition of IPM in December 2008, the decrease in
revenue (the `underlying' decrease) was 7.7 per cent.
Operating profit from continuing operations fell by 15.9 per cent to £13.2
million (2008: £15.7 million) with margins falling to 6.6 per cent (2008: 8.0
per cent). The underlying fall in operating profit was 22.5 per cent.
Operating profit fell by a greater degree than revenue as our higher margin
Composites activities suffered the most from falling demand, notably in the
regional and business jet, wind energy and motor sport sectors. In contrast,
Supply Chain performed well in difficult market conditions, reflecting a full
contribution from contracts won in prior periods and improved performance at
our French and North American operations. Cost reduction programmes, which are
expected to generate annual savings of approximately £3.0 million, have been
successfully implemented across all of our operations.
Net interest charges, excluding revaluations of financial instruments, were £
3.8 million (2008: £2.7 million). Profit before tax from continuing activities
was £9.4 million (2008: £13.0 million), a decrease of 27.7 per cent.
Earnings per share were 13.2 pence (2008: 18.1 pence), a decrease of 27.1 per
cent.
The Directors have declared an interim dividend of 6.5 pence (2008: 6.5 pence).
The dividend is payable on 12 February 2010 to shareholders registered on 15
January 2010.
During the first half year, the Group was highly cash generative leading to a
significant reduction in net debt to £90.6 million at 30 September 2009
compared to £120.2 million at 31 March 2009.
Operations
Results for each of the Group's business segments are summarised below.
Umeco Composites
Umeco Composites provides a broad range of advanced composite materials
principally to the aerospace, motor sport & automotive, marine and wind energy
markets.
2009 2008
£ million £ million
Revenue 83.2 92.8
Operating profit 6.8 11.5
per cent per cent
Operating margin 8.2 12.4
Revenue decreased in the period by 10.3 per cent with an underlying decrease of
23.5 per cent. Operating profit fell by 40.9 per cent with an underlying
decrease of 48.3 per cent.
Order intake across the division fell significantly in a number of key markets
during the first quarter and although steps were taken to reduce the cost base,
the resulting decline in revenue had a disproportionate impact on operating
profit. Our weakest market segments were regional and business jets, wind
energy and motor sport. While we do not expect the business jet market to
recover for some time we are seeing a recovery in orders from the fast growing
Chinese wind energy market and also in motor sport, where the well documented
issues in the F1 world delayed the placement of orders until much later in the
year than usual. A sustained improvement in these two key markets would bode
well for our second half performance, which will also be enhanced by our cost
reduction programmes.
The other disappointment in the first half year was the further delay announced
by Boeing in June on the B787 programme. Our original forecast for the year
included an initial revenue contribution from this very important new aircraft.
Because of the delay we have now eliminated the contribution in the current
financial year, albeit not material, but do now expect, based on Boeing's recent
announcements, that we will enjoy a growing revenue stream from next year onwards.
New materials qualified with Boeing have however gained share on existing aircraft
programmes.
It is pleasing to report that the new management team we recruited at IPM,
which was acquired in December 2008, is achieving significant improvements in
operating performance. Selective investments in process control equipment have
yielded, and will continue to yield, sustained improvement in product quality
and lower levels of wastage. The business is planning to adopt a seven day week
working pattern, reflecting the improved conditions in the wind energy market
and customers switching to IPM materials.
Despite the difficult market conditions, we have been successful in securing a
number of long term contracts with existing and new customers across all of our
key market segments. In addition, ACG has increased its market penetration
through the growing usage of its out-of-autoclave composite material. This
highly innovative material results in our customers enjoying much lower final
product costs while still benefiting from the lightness and strength of our
material.
During the first half year, as markets weakened, we deferred a number of capital
investment programmes which would support the long term growth of our
Composites operations. These will be re-introduced as soon as we see tangible
signs of recovery. We have also agreed revised terms for the lease of
JD Lincoln's new facility, close to its existing operations in Costa Mesa,
California. We continue to review the timing of the relocation in the context
of market conditions, but will incur approximately £0.6 million of capital
expenditure during the second half year in respect of initial fit-out costs.
Cost reduction programmes have been implemented across all business units. In
the first half year, these programmes resulted in headcount reducing by 8 per
cent and overheads reducing by 9 per cent. The full benefit of these programmes
will accrue in the second half year. We have, however, maintained expenditure on
marketing and research & development programmes in order that our ability to
benefit from the future recovery in our markets is not compromised.
Umeco Supply Chain
Umeco Supply Chain is a leading international provider of distribution and
supply chain outsourcing services primarily to OEM customers in the aerospace &
defence markets. The business trades as Pattonair.
2009 2008
£ million £ million
Revenue 116.4 104.4
Operating profit 6.4 4.2
per cent per cent
Operating margin 5.5 4.0
Revenue increased in the period by 11.5 per cent with an underlying increase of
7.3 per cent. Operating profits increased by 52.4 per cent with an underlying
increase of 50.8 per cent.
This significant improvement in operating performance reflects a full
contribution from contracts won in prior periods and a return to sustained
profitability in our French and North American operations. Supply Chain has
nevertheless experienced falling revenue in certain of its markets as a result
of some considerable destocking by both our customers and their ultimate airline
customers. We expect this trend to continue until the world's airlines achieve
a sustained improvement in their operating performance. As in our Composites
operations, we have reduced our cost base while ensuring we continue to deliver
the highest level of customer service.
Supply Chain also suffered from the delay in the B787 programme where a number
of its top customers, including Rolls-Royce, had to suspend production. As in
Composites, we do not expect any contribution from this programme in the
current financial year. Assuming production starts in 2010 we anticipate a
boost to revenues and profit going forward.
Our Derby operation continues to benefit from its long term contract with
Rolls-Royce and further opportunities for growth have been identified. In North
America, the new contract with ATK continues to develop and has the potential
to become a very major programme for Pattonair.
Considerable attention is being paid to improving further our operating
performance both in terms of cost base and working capital management. Supply
Chain generated a good cash flow in the first half year whereas in earlier
years it tended to experience significant cash outflows in this period.
Finance
Net interest charges, excluding revaluations of financial instruments, were £
3.8 million (2008: £2.7 million). The increase principally reflects the
acquisition of IPM in December 2008. Interest cover was 4.62 times compared to
5.63 times in the year to 31 March 2009.
Profit before tax was £9.4 million, a decrease of 27.7 per cent. The tax charge
on profit before tax was 32.5 per cent compared with 32.9 per cent in the year
to 31 March 2009.
Net debt at 30 September 2009 was £90.6 million compared with £120.2 million at
31 March 2009, a reduction of £29.6 million. Exchange rate movements,
principally the weakening of the US dollar, caused net debt to fall by
£9.3 million. Working capital, provisions and retirement benefit obligations
reduced in the period by £13.6 million. This reflects lower revenue growth in
the period and the steps taken to improve our working capital to sales ratio.
Gross capital expenditure was £1.5 million (2008: £2.9 million) with no new
major projects arising in the period; this compares to the depreciation charge
in the period of £3.0 million. Future capital projects are being carefully
scrutinised in view of the current economic situation but are expected to be
higher in the second half year primarily due to the fit-out of the new facility
for JD Lincoln.
The Group's committed banking facilities comprise credit facilities of US$239.0
million and a £10.0 million overdraft, giving aggregate facilities of £159.4
million. This compares favourably with net debt at 30 September 2009 of £90.6
million. Gearing was 51.9 per cent, compared with 67.3 per cent at 31 March
2009.
Covenants in place with the Group's principal lending bank are tested
semi-annually on 31 March and 30 September. The covenants require interest
cover to be not less than four times profit before interest and tax (as defined
in the facility agreement) and require the ratio of net debt to EBITDA to be
not more than 3.50 times at 30 September 2009, 3.25 times at 31 March 2010 and
3.00 times thereafter. Covenant calculations use trailing 12 month values of
interest and earnings. The calculation of the net debt to EBITDA covenant
involves the translation of both net debt and EBITDA at the average exchange
rates for the period.
The results of the covenant calculations at 30 September 2009 were:
Actual Covenant
Interest cover 4.62 times 4.00 times
Net debt to EBITDA 2.47 times 3.50 times
The reduction in the net debt to EBITDA ratio will result in a lower interest
margin being paid in the second half year.
Equity attributable to shareholders at 30 September 2009 was £174.6 million.
Chairman
Neil Johnson was appointed Chairman on 19 October 2009 following the retirement
of Brian McGowan in August 2009. Neil Johnson currently holds a number of
senior Board and advisory positions with public and private companies. He is
Chairman of Motability Operations Group Plc (a financial business owned by the
UK clearing banks), Hornby Group Plc and Cybit Holdings Plc. He is also a
member of a Ministry of Defence Advisory Board and an Independent Member of the
Metropolitan Police Authority.
Prospects
The global economic downturn has resulted in falling air travel in 2009, though
the decline now appears to have slowed considerably. This has led to carriers
reducing their capacity, lowering their maintenance spend, destocking and
deferring deliveries of new aircraft. However, at 30 September 2009, Airbus and
Boeing had a backlog of 6,915 orders which compares well with 7,293 aircraft at
31 March 2009. They are expected to deliver 960 aircraft in 2009, although a
lower level is forecast for both 2010 and 2011. Boeing is now forecasting that
deliveries of the B787 will commence in quarter four 2010 and Airbus continues
to commit considerable funds to the development of the A350, which is expected
to enter service in 2013.
These factors, coupled with the delay in the B787, have resulted in lower demand
for our products and services from existing customers. We expect this situation
to continue for the medium term and have therefore reduced our cost base to
mitigate the effects of the lower revenue and continued to focus on debt
reduction. We have though been successful in winning market share and securing
new customers and believe we will continue to do so as a result of our highly
innovative products and excellent customer service record.
The strategically important acquisition of IPM has strengthened our already
strong position in the global wind energy market, which we expect to return to
high growth as finance becomes available to fund wind farm projects. Additional
capacity is being actively considered though the resulting capital expenditure
will fall in the next financial year.
Although there continue to be challenges for the Group and the timing of
recovery in our long term growth markets remains uncertain, our expectations
for the current financial year have not changed since the time of making our
Interim Management Statement in July 2009 and we remain confident that our long
term prospects are robust. We secured our long term financing in June 2009 and
have successfully reduced our net debt. Our focus in the short to medium term
is to be vigilant to changing conditions and to navigate the Group successfully
through these difficult times.
Clive Snowdon
Chief Executive
4 November 2009
Unaudited Condensed Consolidated Income Statement
__________________________________________________________________________________
For the six months to 30 September 2009
Six months to Year to
30 September 31 March
2009 2008 2009
Note £m £m £m
Revenue 3 199.6 197.2 415.3
Cost of sales (154.0) (149.5) (306.4)
_______________________________________________________________________________
Gross profit 45.6 47.7 108.9
Administrative expenses (36.2) (33.8) (80.1)
_______________________________________________________________________________
Operating profit 3 9.4 13.9 28.8
Financial income 4 0.9 1.0 1.4
Financial expense 4 (4.2) (3.3) (7.4)
_______________________________________________________________________________
Profit before tax 6.1 11.6 22.8
Income tax - UK (1.0) (1.8) (4.2)
Income tax - overseas (1.0) (2.0) (4.0)
_______________________________________________________________________________
Profit for the period 4.1 7.8 14.6
_______________________________________________________________________________
Earnings per share
Pence Pence Pence
Total
Basic earnings per share 8 8.5 16.2 30.4
Diluted earnings per share 8 8.5 16.2 30.4
_______________________________________________________________________________
Unaudited Condensed Consolidated Statement of Comprehensive Income
_______________________________________________________________________________
For the six months to 30 September 2009
Six months to Year to
30 September 31 March
2009 2008 2009
£m £m £m
Profit for the period 4.1 7.8 14.6
_______________________________________________________________________________
Foreign exchange translation
differences on foreign operations (3.0) (3.8) 12.1
Actuarial loss in pension schemes - - (3.4)
Income tax in respect of the above - - 1.1
_______________________________________________________________________________
Other comprehensive income for the (3.0) (3.8) 9.8
period
_______________________________________________________________________________
Total comprehensive income for the 1.1 4.0 24.4
period
_______________________________________________________________________________
Unaudited Condensed Consolidated Balance Sheet
__________________________________________________________________________________
As at 30 September 2009
As at 30 September As at 31
2009 2008 March 2009
Note £m £m £m
Assets
Non-current assets
Property, plant & equipment 46.1 39.2 48.9
Intangible assets 10 144.4 116.6 154.2
Deferred tax assets 3.4 3.7 3.4
_______________________________________________________________________________
193.9 159.5 206.5
_______________________________________________________________________________
Current assets
Inventories 172.5 141.4 170.2
Trade & other receivables 73.3 98.4 101.4
Income tax receivable 4.2 3.1 4.3
Cash 45.8 7.5 51.8
_______________________________________________________________________________
295.8 250.4 327.7
_______________________________________________________________________________
Total assets 489.7 409.9 534.2
_______________________________________________________________________________
Liabilities
Current liabilities
Trade & other payables (155.0) (123.5) (156.8)
Financial liabilities (0.7) (1.0) (1.2)
Income tax payable (4.9) (6.4) (5.4)
Loans & borrowings (1.3) (1.8) (4.6)
_______________________________________________________________________________
(161.9) (132.7) (168.0)
_______________________________________________________________________________
Non-current liabilities
Other payables - - (0.3)
Deferred tax liabilities (10.6) (8.8) (11.7)
Retirement benefit obligation (4.0) (2.2) (4.4)
Loans & borrowings (135.1) (101.2) (167.4)
Provisions (3.5) (3.9) (3.7)
_______________________________________________________________________________
(153.2) (116.1) (187.5)
_______________________________________________________________________________
Total liabilities (315.1) (248.8) (355.5)
_______________________________________________________________________________
_______________________________________________________________________________
Net assets 174.6 161.1 178.7
_______________________________________________________________________________
Equity
Share capital 12.0 12.0 12.0
Share premium 115.5 115.5 115.5
Translation reserve 8.4 (4.5) 11.4
Retained earnings 38.7 38.1 39.8
_______________________________________________________________________________
Equity attributable to equity holders of 174.6 161.1 178.7
the parent
_______________________________________________________________________________
Unaudited Condensed Consolidated Statement of Changes in Equity
_______________________________________________________________________________
For the six months to 30 September 2009
Share Share Translation Retained Total
capital premium reserve earnings equity
£m £m £m £m £m
At 1 April 2009 12.0 115.5 11.4 39.8 178.7
Total comprehensive income - - (3.0) 4.1 1.1
Cost of share based payments - - - 0.1 0.1
Dividends payable - - - (5.3) (5.3)
_______________________________________________________________________________
At 30 September 2009 12.0 115.5 8.4 38.7 174.6
_______________________________________________________________________________
At 1 April 2008 12.0 115.3 (0.7) 35.8 162.4
Total comprehensive income - - (3.8) 7.8 4.0
Share capital issued - 0.2 - - 0.2
Cost of share based payments - - - 0.1 0.1
Shares awarded under share
schemes - - - (0.3) (0.3)
Dividends paid - - - (5.3) (5.3)
_______________________________________________________________________________
At 30 September 2008 12.0 115.5 (4.5) 38.1 161.1
_______________________________________________________________________________
At 1 April 2008 12.0 115.3 (0.7) 35.8 162.4
Total comprehensive income - - 12.1 12.3 24.4
Share capital issued - 0.2 - - 0.2
Cost of share based payments - - - 0.1 0.1
Dividends paid - - - (8.4) (8.4)
_______________________________________________________________________________
At 31 March 2009 12.0 115.5 11.4 39.8 178.7
_______________________________________________________________________________
Unaudited Condensed Consolidated Statement of Cash Flows
__________________________________________________________________________________
For the six months to 30 September 2009
Six months to Year to
30 September 31 March
2009 2008 2009
Note £m £m £m
Cash flows from operating activities
Profit for the period 4.1 7.8 14.6
Depreciation of property, plant & 3.0 2.3 5.1
equipment
Amortisation of intangible assets &
impairment of goodwill 3.1 1.8 4.2
Loss on disposal of property, plant & - - 0.1
equipment
Financial income (0.9) (1.0) (1.4)
Financial expense 4.2 3.3 7.4
Share based payments expense 0.1 0.1 0.1
Income tax expense 2.0 3.8 8.2
_______________________________________________________________________________
15.6 18.1 38.3
Increase in inventories (5.8) (20.7) (35.9)
Decrease/(increase) in trade & other 25.6 (5.1) 8.5
receivables
(Decrease)/increase in trade & other (5.6) (4.6) 19.8
payables
Decrease in provisions (0.2) (0.1) (0.3)
Decrease in retirement benefit (0.4) (0.5) (1.8)
obligation
_______________________________________________________________________________
Cash generated from/(consumed by) 29.2 (12.9) 28.6
operations
Net financial expense paid (3.9) (2.1) (5.3)
Tax paid (3.5) (4.8) (9.3)
_______________________________________________________________________________
Net cash flow from operating 21.8 (19.8) 14.0
activities
_______________________________________________________________________________
Cash flows from investing activities
Acquisition of property, plant & 9 (1.5) (2.8) (6.2)
equipment
Proceeds from sale of property, plant - - 0.2
& equipment
Acquisition of subsidiaries, net of
cash balances acquired 11 - (3.7) (27.6)
_______________________________________________________________________________
Net cash flow from investing (1.5) (6.5) (33.6)
activities
_______________________________________________________________________________
Cash flows from financing activities
Proceeds from issue of share capital - 0.2 0.2
Drawdown of bank loans 9.8 15.0 82.6
Repayment of bank loans (32.7) (10.2) (32.7)
Repayment of lease finance liabilities (0.1) (0.1) (0.3)
Dividends paid to equity holders of - (5.3) (8.4)
the parent
_______________________________________________________________________________
Net cash flow from financing (23.0) (0.4) 41.4
activities
_______________________________________________________________________________
Net (decrease)/increase in cash 12 (2.7) (26.7) 21.8
Cash at start of period 49.0 32.4 32.4
Effect of exchange rate fluctuations (0.5) 0.3 (5.2)
_______________________________________________________________________________
Net cash at end of period 45.8 6.0 49.0
_______________________________________________________________________________
Notes to the Condensed Consolidated Interim Financial Statements
__________________________________________________________________________________
For the six months to 30 September 2009
1 Basis of preparation & accounting policies
Umeco plc (the `Company') is domiciled in the UK. The condensed consolidated
interim financial statements of the Company as at and for the six months to 30
September 2009 comprise the Company and its subsidiaries (together referred to
as the `Group').
This interim financial information has been prepared applying the accounting
policies, presentation and basis of consolidation which were applied in the
preparation of the Company's published consolidated financial statements for
the year ended 31 March 2009, which were prepared in accordance with
International Financial Reporting Standards as adopted by the European Union
(`Adopted IFRS'), except for the following accounting standards and
interpretations which are effective for the Group from 1 April 2009:
* IAS1 (revised) `Presentation of Financial Statements';
* IAS23 (revised) `Borrowing Costs';
* IFRS2 (revised) `Share Based Payments';
* IFRS8 `Operating Segments;
* IFRIC14 `The limit on a Defined Benefit Asset, Minimum Funding Requirements
and their Interaction'; and
* IFRIC 16 `Hedges of a Net Investment in a Foreign Operation'.
IAS1 (revised) `Presentation of financial statements' requires the presentation
of a consolidated statement of changes in equity as a primary statement rather
than as a note. Since this change is presentational only, there is no impact on
profit or net assets.
IAS 23 `Borrowing costs' requires the Group to capitalise borrowing costs that
are directly attributable to the acquisition, construction or production of a
qualifying asset as part of the cost of the asset. This standard has no impact
upon profit or net assets.
IFRS2 (revised) `Share Based Payments' makes changes to the definitions and
accounting treatment of vesting conditions and cancellations. These have no
impact upon the share based payment arrangements operated by the Group and the
revised standard has no impact upon profit or net assets.
IFRS 8 `Operating segments' requires operating segments to be identified on the
basis of information that internally is provided to the Chief Executive, who is
the Group's chief operating decision maker. Following the adoption of IFRS8,
the Group is continuing to report the same two operating segments since these
form the basis of internal reporting.
IFRIC14 `The limit on a Defined Benefit Asset, Minimum Funding Requirements and
their Interaction' limits the amount of defined benefit pension assets which
can be recognised on certain schemes where the Group does not have an
unconditional right to the refund of any surplus which may exist. This standard
has no impact upon profit or net assets.
IFRIC 16 `Hedges of a Net Investment in a Foreign Operation' clarifies certain
issues relating to hedge accounting. These have no impact upon the hedge
accounting operated by the Group and there is no impact upon profit or net
assets.
The profit and loss accounts of overseas subsidiaries are translated into
sterling at average rates of exchange for the period, balance sheets are
translated at period end rates. The main currencies are the US dollar and the
Euro.
Details of the exchange rates used are as follows:
Six months to 30 September Year to 31 March
2009 2009 2008 2008 2009 2009
Closing Average Closing Average Closing Average
rate rate rate rate rate rate
US dollar 1.599 1.596 1.783 1.932 1.433 1.718
Euro 1.094 1.142 1.269 1.260 1.080 1.203
The Group's bank facilities amount to £159.4 million, which comprises a
US$150.0 million five year committed revolving credit facility extending to
June 2014, a US$89.0 million credit facility expiring in August 2011 and a £
10.0 million overdraft facility. After considering the nature and duration of
these facilities and making appropriate enquiries, based on the strength of the
Group's balance sheet, current expectations of future trading and on the
facilities available to the Group, the Directors believe they have reasonable
grounds for stating that the parent Company and the Group have adequate
resources to continue in operational existence for the foreseeable future which
is considered to be a period of 12 months following the date of this Interim
Report. For this reason, they continue to adopt the going concern basis in
preparing the financial statements.
The condensed consolidated interim financial statements for the six months to
30 September 2009 have been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Services Authority and with IAS34 `Interim
Financial Reporting' as adopted by the European Union. They do not include all
of the information required for annual financial statements and should be read
in conjunction with the 2009 Annual Report, which contains annual financial
statements for the year to 31 March 2009 prepared in accordance with Adopted
IFRS. The condensed consolidated interim financial statements have not been
audited or reviewed by auditors pursuant to the Auditing Practices Board's
Guidance on Financial Information.
The condensed consolidated interim financial statements are unaudited and were
approved by the Board of Directors on 4 November 2009.
The comparative financial information for the year to 31 March 2009 does not
constitute the Company's statutory accounts for that financial year. The
statutory accounts for the year to 31 March 2009 have been filed with the
Registrar of Companies and contain a report of the auditors under Section 240
of the Companies Act 1985, which does not include references to any matter
which the auditors drew attention by way of emphasis without qualifying their
report and which does not contain a statement under Sections 237 (2) or (3) of
the Companies Act 1985 and is unqualified. The consolidated financial
statements of the Group as at and for the year to 31 March 2009 are available
upon request from the Company's registered office or on its website.
2 Risks, estimates, judgements and forward looking statements
Details of the principal risks faced by the Group are set out on pages 22 and
23 of the Group's 2009 Annual Report. It is the Directors' opinion that these
are the risks that could impact on the performance of the Group and that they
are also applicable to the current financial year. During the six months to 30
September 2009, the principal risks summarised in the 2009 Annual Report have
not changed materially.
The Group has a continuous process for identifying, evaluating and managing the
significant risks it faces, which has been in place throughout the six months
to 30 September 2009 and up to the date of approval of these condensed
consolidated interim financial statements. This process ensures the proper
management and mitigation of such risks.
In the process of applying the Group's accounting policies, management has made
a number of judgements. The process of preparing these interim consolidated
financial statements inevitably requires the Group to make estimates and
assumptions concerning the future and the resulting accounting estimates may
not equal the related actual results. The estimates and judgements that have
the most significant effect on the amounts included within these interim
consolidated financial statements were the same as those that applied to the
annual financial statements for the year to 31 March 2009.
This interim report contains certain statements about the future outlook for
the Group that are, or may be deemed to be, `forward looking statements'. By
their nature, forward-looking statements involve risks and uncertainties
because they relate to events and depend on circumstances that may or may not
occur in the future and may be beyond the Group's ability to control or
predict. Although the Group believes its expectations are based on reasonable
assumptions, any statements about future outlook may be influenced by factors
that could cause actual outcomes and results to be materially different.
3 Segmental reporting
The primary basis of segmental reporting is in respect of the Group's business
segments. This format reflects the Group's management and internal reporting
structures. Business segment data includes an allocation of corporate costs to
each segment on an appropriate basis. Geographic information is also provided,
comprising analyses of revenue based upon the location of the Group's business
unit and the location of the Group's customers. The geographic segments of the
United Kingdom, Rest of Europe, North America and Rest of World reflect the
Group's most significant regional markets.
Business segments
Six months to Year to
30 September 31 March
2009 2008 2009
£m £m £m
Revenue
Composites 83.2 92.8 188.9
Supply Chain 116.4 104.4 226.4
_______________________________________________________________________________
199.6 197.2 415.3
_______________________________________________________________________________
Adjusted operating profit (see note 5)
Composites 6.8 11.5 24.0
Supply Chain 6.4 4.2 11.2
_______________________________________________________________________________
13.2 15.7 35.2
_______________________________________________________________________________
Operating profit
Composites 3.3 9.7 19.6
Supply Chain 6.1 4.2 9.2
_______________________________________________________________________________
9.4 13.9 28.8
_______________________________________________________________________________
Geographic information
Six months to Year to
30 September 31 March
2009 2008 2009
£m £m £m
Revenue by location of business unit
UK 110.1 124.6 234.8
Rest of Europe 45.2 26.4 84.6
North America 42.7 43.5 91.3
Rest of World 1.6 2.7 4.6
_______________________________________________________________________________
199.6 197.2 415.3
_______________________________________________________________________________
Revenue by location of customer
UK 90.4 89.7 188.7
Rest of Europe 55.4 55.3 115.8
North America 39.5 38.7 80.1
Rest of World 14.3 13.5 30.7
_______________________________________________________________________________
199.6 197.2 415.3
_______________________________________________________________________________
4 Financial income and expense
Six months to Year to
30 September 31 March
2009 2008 2009
£m £m £m
Financial income
Revaluation of financial instruments 0.5 0.4 0.2
Interest income - 0.1 0.1
Expected return on pension scheme assets 0.4 0.5 1.1
_______________________________________________________________________________
0.9 1.0 1.4
_______________________________________________________________________________
Financial expense
Interest on bank loans and overdrafts 3.6 2.7 6.1
Interest payable in respect of lease - - 0.1
finance
Interest cost on retirement benefit 0.6 0.6 1.2
obligation
_______________________________________________________________________________
4.2 3.3 7.4
_______________________________________________________________________________
5 Reconciliation of adjusted profit measures
The narrative in this interim report is based on the adjusted measures of
operating profit, profit before tax and earnings per share. Umeco uses adjusted
figures as key performance indicators, as these are considered to provide a
more consistent measure of operating performance. Adjusted figures are stated
before profits arising on the divestment of discontinued operations,
amortisation and impairment charges relating to intangible assets, significant
items, the revaluation of financial instruments based on their market values
and associated tax effects. The differences between the total and adjusted
profit measures are reconciled below.
Six months to Year to
30 September 31 March
2009 2008 2009
£m £m £m
Operating profit
Total operating profit 9.4 13.9 28.8
Exclude:
- significant items 0.7 - 2.2
- amortisation of intangible assets 3.1 1.8 4.2
_______________________________________________________________________________
Adjusted operating profit 13.2 15.7 35.2
_______________________________________________________________________________
Profit before tax
Total profit before tax 6.1 11.6 22.8
Exclude:
- significant items 0.7 - 2.2
- amortisation of intangible assets 3.1 1.8 4.2
- revaluation of financial instruments (0.5) (0.4) (0.2)
_______________________________________________________________________________
Adjusted profit before tax 9.4 13.0 29.0
_______________________________________________________________________________
Profit attributable to equity holders of
the parent
Total profit attributable to equity holders 4.1 7.8 14.6
of the parent
Exclude:
- significant items 0.7 - 2.2
- amortisation of intangible assets 3.1 1.8 4.2
- revaluation of financial instruments (0.5) (0.4) (0.2)
- associated tax effects (1.1) (0.5) (1.3)
_______________________________________________________________________________
Adjusted profit attributable to
equity holders of the parent 6.3 8.7 19.5
_______________________________________________________________________________
Pence Pence Pence
Adjusted earnings per share 13.2 18.1 40.5
_______________________________________________________________________________
Significant items of £0.7 million were incurred during the six months to 30
September 2009, comprising £0.4 million and £0.3 million in relation to the
restructuring of Composites and Supply Chain operations respectively.
Significant items of £2.2 million were incurred during the year to 31 March
2009. This included costs of £0.7 million in relation to the restructuring of
operations at Pattonair France and Pattonair USA, and £1.2 million of expenses
associated with aborted acquisition projects.
6 Income tax expense
The effective tax rate on profit before tax for the period is 32.8 per cent
(2008: 32.7 per cent, year to 31 March 2009: 36.0 per cent). The effective rate
of tax on adjusted profit before tax for the period is 32.5 per cent (2008:
33.1 per cent, year to 31 March 2009: 32.9 per cent).
Income tax expense for the six months to 30 September 2009 is recognised based
on management's best estimate of the average annual income tax rate expected
for the year to 31 March 2010 applied to the profit before tax for the six
months to 30 September 2009.
7 Dividends
The Directors have declared an interim dividend of 6.5 pence per share, payable
on 12 February 2010 to shareholders on the register at 15 January 2010. In
accordance with IAS10, this dividend has not been reflected in the interim
results. The amount of this interim dividend is £3.1 million.
The following dividends were paid and declared by the Company:
Six months to 30 September Year to 31 March
2009 2009 2008 2008 2009 2009
Pence per £m Pence per £m Pence per £m
share share share
Dividends payable
or paid
Previous year 11.0 5.3 11.0 5.3 11.0 5.3
final
Current year - - - - 6.5 3.1
interim
_______________________________________________________________________________
11.0 5.3 11.0 5.3 17.5 8.4
_______________________________________________________________________________
Dividends
declared and
proposed
Interim 6.5 3.1 6.5 3.1 6.5 3.1
Final - - - - 11.0 5.3
_______________________________________________________________________________
6.5 3.1 6.5 3.1 17.5 8.4
_______________________________________________________________________________
The final dividend for the year to 31 March 2009 of 11.0 pence per share was
approved by shareholders on 29 July 2009. This dividend was held as a liability
at 30 September 2009 and was paid on 2 October 2009.
8 Earnings per share
Earnings per share is calculated on profit attributable to equity holders of
the parent of £4.1 million (2008: £7.8 million, year to 31 March 2009: £14.6
million). Adjusted profit attributable to equity holders of the parent, which
provides a consistent measure of operating performance, was £6.3 million (2008:
£8.7 million, year to 31 March 2009: £19.5 million) as shown in note 5. The
Directors consider that adjusted earnings per share provide a more consistent
measure of operating performance.
Six months to Year to
30 September 31 March
2009 2008 2009
m m m
Weighted average number of shares in issue
Basic 48.1 48.1 48.1
Dilutive effect of share options - - -
_______________________________________________________________________________
48.1 48.1 48.1
_______________________________________________________________________________
9 Acquisition of property, plant & equipment
Six months to Year to
30 September 31 March
2009 2008 2009
£m £m £m
Funded by cash 1.5 2.8 6.2
Funded by lease finance - 0.1 0.1
_______________________________________________________________________________
1.5 2.9 6.3
_______________________________________________________________________________
10 Intangible assets
Six months to Year to
30 September 31 March
2009 2008 2009
£m £m £m
Intangible assets, including goodwill
Cost
At start of period 163.1 121.9 121.9
Acquisitions 0.4 - 18.2
Foreign exchange translation (7.7) 1.2 23.0
_______________________________________________________________________________
At end of period 155.8 123.1 163.1
_______________________________________________________________________________
Amortisation & impairment losses
At start of period 8.9 4.7 4.7
Amortisation charge 3.1 1.8 4.2
Foreign exchange translation (0.6) - -
_______________________________________________________________________________
At end of period 11.4 6.5 8.9
_______________________________________________________________________________
Net book value
At end of period 144.4 116.6 154.2
_______________________________________________________________________________
At start of period 154.2 117.2 117.2
_______________________________________________________________________________
An impairment review has not identified the need for any impairment at 30
September 2009.
11 Acquisitions
During the six months to 30 September 2009, additional goodwill of £0.4 million
has been recognised relating to the acquisition of Industria Plastica
Monregalese SpA (`IPM').
No acquisitions occurred during the six months to 30 September 2009.
During the six months to 30 September 2008, £3.7 million was paid in respect of
deferred consideration due under the terms of the acquisition of Pattonair
S.r.l., formerly Provest S.r.l.
Details of acquisitions made in the year to 31 March 2009 and the fair value of
net assets acquired are set out below.
On 4 December 2008, the Group acquired the entire issued share capital of IPM
for a cash consideration of Euro16.8 million. IPM is a manufacturer and supplier
of vacuum bagging films for the composites industry and other markets.
Consideration of Euro12.8 million was payable to the vendors on completion, with
the remaining Euro4.0 million being paid by the Group into an escrow account
pending any warranty claims.
In the period from acquisition to 31 March 2009, IPM achieved a profit before
tax of £nil, after a charge of £0.5 million in respect of amortisation of
acquired intangible assets. Had the acquisition completed on 1 April 2008, it
is estimated that IPM would have contributed a further £10.0 million to revenue
and £nil to profit before tax, after making certain non-recurring payments to
the vendors and charges in respect of amortisation of acquired intangible
assets. Other than the recognition of intangible assets of £6.4 million and a
related deferred tax liability, the only fair value adjustments made were the
revaluation of property, plant & equipment, an additional inventory provision
and the recognition of additional trade & other payables.
Details of the acquisition of IPM, including the fair value of net assets
acquired, were as follows:
Accounting Acquired
Carrying policy intangible Fair
amount adjustments assets value
£m £m £m £m
Property, plant & equipment 5.6 0.8 - 6.4
Intangible assets 0.1 - 6.4 6.5
Inventories 4.1 (0.4) - 3.7
Trade & other receivables 8.8 - - 8.8
Income tax receivable 0.3 - - 0.3
Bank overdraft (6.5) - - (6.5)
Loans & borrowings (6.0) - - (6.0)
Trade & other payables (7.2) (1.1) - (8.3)
Deferred tax liabilities - - (2.2) (2.2)
_______________________________________________________________________________
Net identifiable assets and (0.8) (0.7) 4.2 2.7
liabilities
Goodwill 12.4
_______________________________________________________________________________
Consideration 15.1
_______________________________________________________________________________
Satisfied by:
- cash consideration paid 14.4
- expenses paid 0.6
- consideration and expenses accrued 0.1
_______________________________________________________________________________
15.1
_______________________________________________________________________________
The goodwill recognised on the acquisition of IPM is attributable to the skills
and technical capabilities of IPM's employees and synergies expected to be
generated from establishing links between IPM and the Group's existing
composites activities. Amounts recognised for intangible assets and goodwill
are provisional and subject to change for the period of one year from the date
of acquisition. Intangible assets have been recognised in respect of customer
relationships and order books on hand at acquisition.
In addition to the acquisition of IPM, £6.1 million was paid during the year to
31 March 2009 in respect of acquisitions made in prior years. The value
comprised £3.7 million in respect of the final payment of deferred
consideration due under the terms of the acquisition of Pattonair S.r.l.
(formerly Provest S.r.l.) and a final earnout payment of £2.4 million under the
terms of the acquisition of JD Lincoln, Inc. The total increase in net debt
relating to the acquisition of subsidiaries in the year to 31 March 2009
therefore comprised:
IPM Other Total
£m £m £m
Cash consideration paid 14.4 - 14.4
Expenses paid 0.6 - 0.6
Bank overdraft at acquisition 6.5 - 6.5
Bank loans at acquisition 6.0 - 6.0
Pattonair S.r.l. - deferred - 3.7 3.7
consideration
JD Lincoln, Inc. - earnout payment - 2.4 2.4
_______________________________________________________________________________
27.5 6.1 33.6
_______________________________________________________________________________
12 Reconciliation of net cash to movement in net debt
Six months to Year to
30 September 31 March
2009 2008 2009
£m £m £m
Net (decrease)/increase in cash (2.7) (26.7) 21.8
Bank loans taken on with acquisition - - (6.0)
Drawdown of bank loans (9.8) (15.0) (82.6)
Drawdown of lease finance - (0.1) (0.1)
Repayment of bank loans 32.7 10.2 32.7
Repayment of lease finance liabilities 0.1 0.1 0.3
_______________________________________________________________________________
20.3 (31.5) (33.9)
Effect of exchange rate fluctuations 9.3 (6.4) (28.7)
_______________________________________________________________________________
Movement in net debt 29.6 (37.9) (62.6)
Net debt at start of period (120.2) (57.6) (57.6)
_______________________________________________________________________________
Net debt at end of period (90.6) (95.5) (120.2)
_______________________________________________________________________________
Net debt comprises cash balances, bank overdrafts, bank loans and lease finance
obligations.
Interim Results
__________________________________________________________________________________
For the six months to 30 September 2009
STATEMENT OF DIRECTORS' RESPONSIBILITIES
This Interim Report complies with the Disclosure and Transparency Rules (DTR)
of the United Kingdom`s Financial Services Authority in respect of the
requirements to produce a half yearly financial report. This Interim Report is
the responsibility of, and has been approved by, the Directors of Umeco plc.
The Directors confirm that to the best of their knowledge:
* the condensed set of financial statements has been prepared in accordance
with IAS 34 as adopted by the European Union;
* the Interim Report includes a fair review of the information required by
DTR 4.2.7R (an indication of important events that have occurred during the
first six months of the financial year, and their impact on the condensed
set of financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the financial year); and
* the Interim Report includes a fair review of the information required by
DTR 4.2.8R (disclosure of related parties transactions that have taken
place in the first six months of the current financial year and that have
materially affected the financial position or the performance of the
enterprise during that period and any changes therein).
By order of the Board
DG Robertson
Director
4 November 2009
END
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| 03-11-09 | RNS |
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RNS Number : 8515B UMECO PLC 03 November 2009 TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES
shares to which voting rights are attached:
2 Reason for the notification (please tick the appropriate box or boxes):
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):
obligation:
(PMC)
date on which the threshold is crossed or reached:
notified:
crossed or reached: 8. Notified details: A: Voting rights attached to shares
if possible using
the ISIN CODE
GBP 0.25 B: Qualifying Financial Instruments Resulting situation after the triggering transaction
C: Financial Instruments with similar economic effect to Qualifying Financial Instruments Resulting situation after the triggering transaction
Total (A+B+C)
Number of voting rights Percentage of voting rights
9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable: Legal & General Group Plc (Direct and Indirect) (Group) Legal & General Investment Management (Holdings) Limited (LGIMH) (Direct and Indirect) Legal & General Investment Management Limited (Indirect) (LGIM) Legal & General Group Plc (Direct) (L&G) (1,882,431 -3.91 % = LGAS, LGPL & PMC)
Management (Holdings) Limited (Direct) (LGIH)
(Direct) (LGIMHD) (1,722,634
-3.57 % = PMC)
(PMC) (1,722,634 -3.57 % = PMC)
(LGPL) Proxy Voting:
15. Contact telephone number: 01926 331800 This information is provided by RNS The company news service from the London Stock Exchange END
HOLBJBMTMMAMBTL More |
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I sell out and it rises another 10%, typical.
Never mind can't win em all. I did the same on IG Group, when will I learn? More | View thread (1) | Respond | Login to Vote up | Login to Vote down |
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Not sure if everyone saw this:
Umeco, the aircraft parts supplier and materials group, said earnings fell sharply in the first half of the year and cautioned that demand for its products would be subdued in the “medium term.” The company said the downturn in the aviation industry continued to take its toll as orders from business and regional jet makers dropped off and customers cut back on stock. Delays to the Boeing 787 also hit revenues. EDITOR’S CHOICE Aero Inventory falls into administration - Nov-11.Aero Inventory ’removes’ top executives - Nov-03.Rolls-Royce wins new Turkish order - Nov-02.Boeing to build 787s in South Carolina - Oct-29.Meggitt sees air traffic revival - Nov-02.Nimrod report hits at MoD and BAE - Oct-28..Still, Clive Snowden, chief executive, was a sanguine about the group’s prospects noting the wind energy market had begun to recover while orders from Formula 1 teams, held-up by the ructions in the sport, would come through in the second half. “I think we reached the bottom of the cycle in March or April,” he said. “Clearly there will be bumps in the road but … as soon as the world economy starts to recover you will see recovery in travel. You are already seeing it in the Far East.” In the meantime, Mr Snowden said the group had cut about 100 staff leading to annual savings of around £3m ($5m) and reduced net debt from £120.2m to £90.6m thanks to currency effects and an improved working capital position. In the six months to the end of September pre-tax profits fell by almost half to £6.1m, dragging earnings per share down by 48 per cent to 8½p on revenues that rose marginally to £199.6m. Excluding currency effects, revenues fell 7.7 per cent. Beneath the headline numbers, trading was mixed. Revenues, margins and operating profits fell more than expected at Umeco’s composite materials business while the company’s supply chain unit improved in every category. Umeco maintained the dividend at 6½p and the shares rose 5.5 per cent to 272½p. Comment: At the start of the year investors in Umeco were worried. The company’s net debt had ballooned to £120.2m and the outlook for the aviation industry was bleak. By April the shares had dropped to 115p from a high of 630p. Since then Umeco has staged a recovery of sorts, replacing its chairman, renegotiating its debt facilities with key lenders and taking control of its working capital and cost base. Its share price has more than doubled. In the medium term the prospects for its composites division look challenging, but the supply chain business is performing better. And with the shares trading at around seven times 2010 earnings, a substantial discount to the sector, much of the risk is already priced-in. P.S. I am out but keeping a watchful eye on this stock. More | View thread (1) | Respond | Login to Vote up | Login to Vote down |
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| 12-11-09 |
HOLD
Re: Aero Inventory?
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Apparently, UMC has picked up some business from those seeking an alternative supplier but I doubt if it's that significant. AI is (or was) a rather different animal in that it focused on the Far East aftermarket as opposed to UMC's primarily OEM customer base whilst it concentrated more on discrete parts and rotables compared with the small components (nuts, bolts etc) and chemicals supplied by UMC. Nevertheless, the company is in touch with the administrator and monitoring the situation.
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| 11-11-09 |
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Aero Inventory finally went into receivership today.
Do we see any chance of Pattonair picking up their £250m of revenues & £100m+ of stock on the cheap? It might be a good move to enable UMC to become the world's dominant player in managed aerospace inventory. More | View thread (2) | Respond | Login to Vote up | Login to Vote down |
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