FIELD SYSTEMS DESIGNS HOLDINGS PLC: Final Results

FIELD SYSTEMS DESIGNS HOLDINGS PLC 
CHAIRMAN'S STATEMENT 
I am pleased to announce the results of Field Systems Designs Holdings plc for
the year ended 31 May 2012 which show good progress and reflect another solid
year in an increasingly difficult operating climate. 
The group's focus on electrical activities in industries where it has proven
experience is driving its success and is providing resilience in these
challenging times. 
The group continues to underpin its leading market position in sectors such as
the Water Industry, where it has established a strong reputation in delivering
complex solutions on target. 
The Water Industry's fifth 5-year build and refurbishment Asset Management
Programme (AMP5) running to April 2015 has driven volume in the water sector in
the current year. 
It is new work in the Energy for Waste (EfW) market that is the focus of Group
investment in sales and efforts in this area are starting to produce results. 
This year the Group boosted turnover by taking on Mechanical and Electrical 
(M&E) contracts in a response to customer preference for placing single 
contracts.
Consequently the Group established a new mechanical business after the year
end, based in the Midlands, to give an in-house mechanical fabrication and
erection capability. 
The group remains very cautious about the outlook for performance in 2012/2013,
given the current economic climate, but it is still well-positioned with a good
opening order book and robust cash position to maximise the benefits from
future opportunities. 
D K Bird 
Chairman 
26 October 2012 
PUBLICATION OF NON-STATUTORY ACCOUNTS 
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in the Companies Act 2006. 
The consolidated balance sheet at 31 May 2012 and the audited consolidated
profit and loss account for the year then ended have been extracted from the
Group's 2012 statutory financial statements upon which the auditors opinion is
unqualified. 
Those financial statements have not yet been delivered to the registrar of
companies. 
The directors of Field Systems Designs Holdings plc accept responsibility for
this announcement. 
FIELD SYSTEMS DESIGNS HOLDINGS PLC 
REVIEW OF OPERATIONS 
OPERATIONAL PERFORMANCE 
The group achieved a turnover of £15.4 million for the year to 31 May 2012, up
significantly from last year as a consequence of significantly higher revenues
deriving from the Water Industry. 
Turnover was generated as follows:                         2012          2011    


                                                                                  
                                                            £            £    
         


                                                                           
Water and Sewerage                                    12,726,310      5,292,659 
                                                                           
Power generation and Waste to Power                    1,798,662      6,940,570 
                                                                           
Rail, Transport and Tunnels                              137,855        323,228 
                                                                           
Building services, Maintenance,                                                 
                                                                           
Security, Instrumentation, Controls and Automation       709,511        306,519 


                                                                               
                                                      15,372,338     12,862,976
                                                                               
                                                      ==========     ========== 
    

Gross profit margins fell significantly to 7.7% from 10.4%. Gross profits came
under intense pressure as projects from the Water Industry increased with their
associated difficulties in recovering value from additional works as the Water
Utilities and their Tier One contractors continue to focus on cost following
their OFWAT determination.

The group achieved a reduced but fair operating profit for the year of 
£372,444
(2011: £470,115).

In view of the economic climate the directors are pleased to report a solid
group profit after tax of £260,767 for the year ended 31 May 2012 
(2011: £312,496)

MAJOR PROJECTS

Water

Field Systems Designs (FSD) focuses on delivering specialist electrical design
and installation works.

This year the company boosted turnover by taking on Mechanical and Electrical
(M&E) contracts in a response to customer preference for placing single
contracts. Volumes were dominated by the Water Industry where 83% of turnover
in 2012 was derived (2011:42%). The AMP5 spend in England took-off during the
year, and water-related works emanated from large-scale treatment works,
multi-centre projects, from specialist works on pumping stations and on
continued Ultra-Violet water analysis.

The group continues to be involved in a number of high profile prestigious
projects and following on from the completion of the UK's first large-scale
desalination plant at Beckton last year, FSD was awarded the innovative high
profile project to undertake the electrical installation for the new Peacehaven
sewage works. Southern Water and its delivery partner 4D - a consortium of
Costain, MWH and Veolia Water - together with a select team of contractors
including FSD are nearing the end of a £300M scheme. It will ensure that 95Ml
of wastewater generated each day is treated for the main population centre of
Brighton & Hove at a green-field site at Peacehaven whilst maintaining the
picturesque nature of the Downs.

Power

FSD retains its experienced skill-base in the power industry, where 12% of
turnover in 2012 was derived (2011:55%).

FSD completed its work during the year on the Energy from Waste (EfW) project
at Riverside in London, where a substantial high quality project was completed
to the benefit of its Swiss customer. This landmark EfW Project was a highly
complex and carefully structured development of a large facility at Belvedere
constructed for Cory Environmental and Riverside Resource Recovery and operated
now by a fleet of tugs and barges delivering waste on the Thames. The proposed
new facility will be London's first river-served EfW plant making a significant
contribution to renewable energy. The business development team are continuing
to invest time in meeting potential clients to better understand the
potentially huge EfW market and we are confident that we are well placed to
secure numerous projects in the future over a number of diverse technologies
such as Gasification and Energy from Waste in both Incineration and Anaerobic
Digestion.

FSD also continued work for National Grid and Chubb where highly trained
operatives worked under conditions of high security.

Rail, Transport and Tunnelling

FSD maintained its reputation for quality work in the Rail, Transport and
Tunnelling sector at 1% of turnover (2011:3%).

Investment in this sector has been focussed on the major Cross Rail projects
while other areas have declined, FSD continues to service the rail industry,
both overground and underground, and undertook a variety of rail related works
around the country. FSD also continues to work on tunnel and shaft projects
where it has established a niche specialism, using its trained operatives
experienced in working in these difficult conditions.

Building Services

FSD Electrical Services (FSDe), which focuses on delivering commercial
electrical installation services continued to operate as a specialist
electrical installer in the commercial and rail sectors, building its
reputation by offering its growing customer base quality, timeliness and value
for money.

FSDe has been involved in a variety of minor works, and small and intermediate
projects working on the underground infrastructure for TFL (Transport for
London). FSDe has been further involved in the rail sector with companies
specialising in the no-dig repair of drainage systems and in the geological
movement monitoring of infrastructure monitoring the impact of surrounding
construction and tunnelling projects on the integrity of the Underground
infrastructure.

The aquisition of Tom Finney Services in the NorthWest has expanded the
security division which will assist the growth of the commercial sector. FSDe
has expanded its involvement with traditional fit-out projects offering the
full range of services including lighting, power distribution, fire alarm
systems, security and door entry systems, CCTV and AV systems, maintenance and
air-conditioning services.

QUALITY ASSURANCE

FSD Group is approved to the Quality Management Standard BS EN ISO 9001:2008.
The British Standards Institute (BSI) and Achilles, the Utilities Sector
procurement performance assessor, regularly review the company's processes for
managing and installing electrical services, as well as its fault resolution
procedures. Recent assessments have again been successfully completed with the
following comment made in a recent Achilles audit : "A robust management system
is in place with commendable documentation, there is an overwhelming ethos of
continual improvement and constant change."

The group is committed to a strategy that provides its clients with a
high-quality service that conforms to the client's requirements. This strategy
includes a strong management commitment to quality, the recruitment and
retention of high calibre, experienced and well-trained staff, properly
documented procedures, processes and controls, and compliance with all
regulatory and legal requirements.

Quality Audits continue to be carried out across company sites on a regular
basis to ensure compliance and to improve the company's activities. The annual
management review meeting assesses the group's performance against targets and
sets new targets.

ENVIRONMENT

FSD group has an environmental management system approved to the international
environment standard, ISO 14001:2004. The BSI and Achilles regularly review the
group's processes for managing its impact on the environment. The group has
engaged in a programme to achieve CEMARS as it strives to minimise harm to the
environment, prevent pollution and use best practice environment solutions
wherever possible to minimise its carbon foot-print. A risk assessment approach
is used to manage environmental matters, and to identify and assess key
environmental hazards arising from business activities and manage them
appropriately.

HEALTH AND SAFETY

A commitment to Health and Safety is the Group's number one priority. Every
Board meeting starts by focusing on preserving high safety standards and
promoting a positive safety culture within the Group, to ensure that our
employees, customers, suppliers and the public are kept safe.

FSD group has a safety management system implemented across all sites that is
approved to the Health and Safety Management System BS OHSAS 18001:2007, (the
internationally recognised standard for management of occupational health and
safety risks). The company achieved its second ROSPA Gold Award this year.

There is a strong commitment at Board level, supported by a highly qualified
health and safety specialist, which endorses the importance of vigilant health
and safety practices and the investment in training for site and management to
broaden the competence, knowledge and experience of its employees. This is
supported by expert guidance provided by the EEF, ECA and CITB. The group
continues to establish safety initiatives and objectives and these are
currently on target with a good overall safety record.

EMPLOYEES

Group employee numbers have reduced from an average of 102 in 2011 to 80 in
2012 reflecting a different mix of work during the year.

We are pleased to place on record the appreciation of the efforts and support
given to the group by its employees, who continue to make a significant
contribution to the group.

PENSIONS

The group's pension deficit as at 31 May 2012 was £175,200 net of deferred 
tax,
an increase of 55% from 31 May 2011. This is derived from the group's most
recent FRS17 actuarial review and reflects market conditions on that date.

CORPORATE RESPONSIBILITY

The group recognises its responsibilities to the people it employs, its
customers and suppliers, its shareholders, the wider community and to the
environment. We are a well-managed, responsible and ethical company and are
determined to be widely recognised for our quality of installation, the skills
of our people and the seriousness with which we take our corporate
responsibilities.

OUTLOOK

The group entered the new financial year with a strong opening order book of 
£5.2million (2011: £5.7 million).

The group is mostly reliant on the fortunes of the Water Industry and it is
from this industry that the majority of turnover is derived.

The current AMP5 (Asset Management Programme), runs for five years from April
2010, it has been slow to start but has now started up strongly.

FSD continues to participate on frameworks and strategic alliances with water
process companies, even now some framework decisions are still to be made or
are being re-evaluated.

The group promotes joint venture and other working arrangements with
like-minded quality partners to offer a turn-key solution and enhance its
position in the sector. FSD established a new mechanical business after the
year end, based in the Midlands, to further enhance its turn-key capability and
attract joint Mechanical and Electrical (M&E) contracts in response to its
customers' demands.

Sales effort remains committed to industries outside of water and new
technology sectors such as Energy for Waste and Gasification remain key
targets.

The Group continues to enhance its personnel's capabilities through appropriate
training to ensure the continued quality of service and maintain the depth of
its experience. Accordingly FSD can offer an added-value service to the rail,
underground, power, waste and tunnelling sectors and differentiate itself from
its competition and this should ensure further future success.

The Group has maintained its investment in specialised engineering software and
the efficiencies this gives have helped the group to offer an enhanced design
resource to supplement its installation capabilities.

The Group's head office premises in Dorking are now fully functional and
generate rental income from tenants occupying surplus space.

The Board continues to react to customer demands and keep standards high,
whilst creating operational efficiencies to best position the business for the
tougher trading conditions ahead.

P J Haines

Managing Director

26 October 2012


FIELD SYSTEMS DESIGNS HOLDINGS PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT

for the year ended 31 May 2012
                                                2012            2011           
                                                                               
                                                £               £             


                                                                             
TURNOVER                                        15,372,338      12,862,976      
                                                                           
Cost of sales                                  (14,194,001)    (11,529,525)    


                                                                               
                                                ___________    ___________      


                                                                              
GROSS PROFIT                                     1,178,337       1,333,451       
                                                                           
Net operating expenses                            (805,893)       (863,336)      


                                                                                 
                                                   _______         _______      


                                                                              
OPERATING PROFIT                                   372,444         470,115       
                                                                              
Interest receivable                                  2,798           1,545       
                                                                           
Interest payable                                   (35,938)        (27,767)      


                                                                                  
                                                   _______         _______      


                                                                              
PROFIT ON ORDINARY                                                              
                                                                           
ACTIVITIES BEFORE TAXATION                         339,304         443,893       
                                                                              
Taxation                                           (78,537)        (131,397)     


                                                                                  
                                                   _______          _______     


                                                                               
PROFIT ON ORDINARY                                                              
                                                                           
ACTIVITIES AFTER TAXATION                          260,767         312,496       
                                                                              
Minority interest                                   (1,343)         (3,484)      


                                                                                   
                                                   _______         _______      


                                                                              
PROFIT FOR THE YEAR                                259,424         309,012       


                                                                                  
                                                   =======         =======      


                                                                               
EARNINGS PER SHARE                                                              
                                                                           
Basic                                                4.8p            5.7p        


    
                                                                               
                                                   ======          ======       


                                                                              
Diluted                                              4.8p            5.7p        


    
                                                                               
                                                   ======          ======       
    All operations are continuing.



FIELD SYSTEMS DESIGNS HOLDINGS PLC

CONSOLIDATED BALANCE SHEET

As at 31 May 2012
                                                      2012           2011     
                                                                             
                                                       £              £       
      


                                                                        
FIXED ASSETS                                                                 
                                                                        
Tangible assets                                     1,524,406      1,514,714 
                                                                        
Intangible assets                                      33,332              - 
                                                                        
CURRENT ASSETS                                                               
                                                                        
Debtors                                             5,169,383      3,250,501 
                                                                        
Cash at bank and in hand                            1,708,999      1,613,566 


                                                                            
                                                     ________       ________
                                                                            
                                                    6,878,382      4,864,067
                                                                            
                                                     ________       ________


                                                                        
CREDITORS                                                                    
                                                                        
Amounts falling due within one year                 6,123,214      4,285,742 


                                                                            
                                                     ________       ________


                                                                        
NET CURRENT ASSETS                                    755,168        578,325 


                                                                            
                                                     ________       ________


                                                                        
TOTAL ASSETS LESS CURRENT                                                    
                                                                        
LIABILITIES                                         2,312,906      2,093,039 
                                                                        
PROVISIONS FOR LIABILITIES                                                   
                                                                        
Deferred tax                                           19,000         19,000 
                                                                        
Pension obligations                                   175,200        113,000 


                                                                            
                                                     ________       ________
                                                                            
                                                    2,118,706      1,961,039
                                                                            
                                                    =========      =========


                                                                        
CAPITAL AND RESERVES                                                         
                                                                        
Called up share capital                               569,250        569,250 
                                                                        
Share premium account                                 158,750        158,750 
                                                                        
Profit and loss account                             1,012,013        855,689 
                                                                        
Other reserves                                        370,033        370,033 
                                                                        
Minority interests                                      8,660          7,317 


                                                                            
                                                     ________       ________


                                                                        
SHAREHOLDERS' FUNDS                                 2,118,706      1,961,039 
                                                                         
                                                =========      ========= 
Approved and authorised for issue on 26 October 2012 by:- 
P J Haines.........................................Director 
B D Smith.........................................Director 
END 
-0- Oct/26/2012 16:31 GMT