CHARTER plc Interim Results 2003
04/09/2003
Summary of results unaudited
(£ million)
 |
Six months ended 30.6.03 |
|
Six months ended 30.6.03 |
|
Six months ended 30.6.03 |
|
Six months ended 30.6.02 |
|
Year ended 31.12.02 |
|
| Before exceptional items |
Exceptional items |
Total | ||||||||
|
||||||||||
| Turnover | 420.2 | - | 420.2 | 451.8 | 900.5 | |||||
| Adjusted operating profit1 | 15.4 | - | 15.4 | 21.8 | 36.0 | |||||
| Amortisation of goodwill | (0.6) | - | (0.6) | (0.6) | (1.2) | |||||
| Operating exceptional items | - | (5.8) | (5.8) | (7.7) | (25.3) | |||||
| Operating profit | 14.8 | (5.8) | 9.0 | 13.5 | 9.5 | |||||
| Non-operating exceptional items | - | 0.1 | 0.1 | 11.5 | 21.8 | |||||
| Profit/(loss) before interest | 14.8 | (5.7) | 9.1 | 25.0 | 31.3 | |||||
| Interest | (8.6) | - | (8.6) | (9.9) | (19.3) | |||||
| Exceptional interest credit | - | (5.0) | (5.0) | - | - | |||||
| Profit/(loss) before tax | 6.2 | (10.7) | (4.5) | 15.1 | 12.0 | |||||
| Net debt | 194.3 | 222.8 | 194.0 | |||||||
| Earnings/(loss) per share – basic | ||||||||||
| Headline | (8.3) | 10.3p | 5.1p | |||||||
| Adjusted1 | 3.8p | 6.7p | 8.6p | |||||||
| 1before exceptional items and amortisation of goodwill | ||||||||||
David Gawler, Chairman and Chief Executive, commented today:
“In the six months ended 30 June 2003, the group recorded adjusted operating profits of £15.4 million (2002: £21.8 million). This adjusted operating profit, which is before exceptional items and amortisation of goodwill, is an improvement over the £14.2 million earned in the second half of 2002.
Further progress has been made during the first half of 2003 in restructuring several of the group’s operating businesses and in closing loss making units in Howden and Esab. As a consequence of these measures, together with those taken in earlier periods, the group’s ongoing cost base has been reduced. This provides the foundation for an improvement in the competitive position of the group’s operating businesses, particularly when demand improves.
During this period much of management’s time has had to be devoted to securing the renewal of the syndicated bank facility which was scheduled to expire on 31 July 2003. The Company announced on 22 July 2003 that the facility had been renewed for the period to 31 March 2005 with an initial facility amount of £120 million. Under the present financing arrangements, the Company is committed, by 10 March 2004, to reduce its borrowings under the facility and plans to achieve this through a combination of asset disposals, cash flow and alternative sources of finance.
As a result of the programme of disposals of non-core assets and other initiatives, a significant reduction in the group’s net debt is expected.
Demand in most markets served by the group in the first half of 2003 was below that experienced in the corresponding period last year and margins remain under pressure. However, some improvement is expected in certain key markets in the second half.”
Contact
Andrew Fenwick; Pamela Small, Brunswick +44 (0) 20 7404 5959
David Gawler, Chairman and Chief Executive; David Eilbeck, Finance Director
+44 (0) 20 7404 5959
View the Full announcement.