Interim results for the six months ended 30 June 2004
10/09/2004
Summary of results unaudited
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Six months to 30.6.04 |
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Six months to 30.06.03 |
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Year ended 31.12.03 |
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| £m | £m | £m | ||||
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| Turnover | ||||||
| Continuing operations: | ||||||
| Welding and cutting | 303.4 | 283.7 | 577.1 | |||
| Air and gas handling | 108.0 | 115.6 | 256.9 | |||
| Specialised engineering | 4.2 | 4.3 | 8.4 | |||
| 415.6 | 403.6 | 842.4 | ||||
| Discontinued operations | - | 16.6 | 28.8 | |||
| 415.6 | 420.2 | 871.2 | ||||
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| Adjusted operating profit1 | ||||||
| Continuing operations: | ||||||
| Welding and cutting | 23.3 | 14.0 | 31.8 | |||
| Air and gas handling | 4.0 | 0.4 | 6.3 | |||
| Specialised engineering | 0.1 | (0.9) | (1.3) | |||
| 27.4 | 13.5 | 36.8 | ||||
| Central operations | (3.6) | (3.4) | (6.8) | |||
| 23.8 | 10.1 | 30.0 | ||||
| Discontinued operations | 0.6 | 5.3 | 10.1 | |||
| Amortisation of goodwill | (0.6) | (0.6) | (1.2) | |||
| Operating exceptional items | (12.7) | (5.8) | (10.8) | |||
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| Operating profit | 11.1 | 9.0 | 28.1 | |||
| Non-operating exceptional items | 1.3 | 0.1 | (1.0) | |||
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| Profit before interest | 12.4 | 9.1 | 27.1 | |||
| Interest | (6.3) | (8.6) | (16.8) | |||
| Exceptional financing costs | - | (5.0) | (6.5) | |||
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| Profit/(loss) before tax | 6.1 | (4.5) | 3.8 | |||
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| Net debt | 82.5 | 194.3 | 136.8 | |||
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| Earnings/(loss) per share | ||||||
| Headline | 3.6p | (6.5)p | (6.2)p | |||
| Adjusted1 | 7.5p | 3.0p | 9.9p | |||
The earnings per share calculations for 2003 have been restated for the Rights Issue.
1before exceptional items and amortisation of goodwill
Highlights
- Substantially improved operating margins and trading results
- Adjusted operating profit from continuing operations more than doubled to £23.8 million (2003: £10.1 million)
- Profit before tax of £6.1 million (2003: loss before tax of £4.5 million)
- Adjusted earnings per share 7.5 pence (2003: 3.0 pence)
- Headline earnings per share 3.6 pence (2003: a loss of 6.5 pence)
- Net debt reduced to £82.5 million, a reduction of £54.3 million in the period.
David Gawler, Chairman and Chief Executive, commented today:
“I am pleased to report substantially improved results in the first half of 2004, with adjusted operating profits from continuing operations more than doubling to £23.8 million (2003: £10.1 million). This performance was also better than that achieved in the second half of last year and more importantly reflects the improving trend in operating margins in each of the core businesses. During the first six months of this year net debt was reduced to £82.5 million, a reduction of £54.3 million.
"Restructuring initiatives over the past three years have resulted in improved operational efficiencies, as evidenced by the operating margins recorded by Esab and Howden, and these businesses are now better positioned to benefit from opportunities in their key markets. In view of trading to date, the Board continues to view the outcome for 2004 with confidence.”
Contact
Andrew Fenwick; Pamela Small, Brunswick +44 (0) 20 7404 5959
David Gawler, Chairman and Chief Executive; Robert Careless, Finance Director
+44 (0) 20 7404 5959
View the Full announcement.