FIELD SYSTEMS DESIGNS HOLDINGS PLC: Final Results
FIELD SYSTEMS DESIGNS HOLDINGS PLC
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
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
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 £ £
Tangible assets 1,524,406 1,514,714
Intangible assets 33,332 -
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 ________ ________
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
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