FIELD SYSTEMS DESIGNS HOLDINGS PLC - Half-year Report

FIELD SYSTEMS DESIGNS HOLDINGS PLC                                               

INTERIM RESULTS

The Board of Field Systems Designs Holdings plc, a specialist installation and engineering Group providing mechanical and electrical installation and maintenance services in the water, power, waste, security, commercial and transport industries, announces its interim results for the six months to 30 November 2016.

OVERVIEW

The first six months of this financial year produced results consistent with the prior period reflecting continued improved trading conditions.

The current AMP6 (Sixth Asset Management Programme in the Water Industry) has commenced and runs for five years until April 2020. Some Water Utilities have now concluded their MEICA frameworks whereas others are only just finalising the formulation of their approach. Sales volumes were initially strong as delayed projects were finally completed and a number of early-start project works were awarded. Whilst a slight lull is now being experienced as the 2017 calendar year starts the signs are now clear that the mid-period of AMP6 should prove a busy one.

The majority of the strong opening order book came from the Energy from Waste (EfW) sector. The first half of the year saw the FSD Group working on EfW contracts across various projects using Incineration, Gasification and Biomass technologies. There has been some shift in programming of these ongoing works which will delay the timing of completion of these projects across the 2017/2018 financial years.

Gross profit margins were slightly improved from the prior period but still reflect the ongoing difficulties in recovering value from variations and programme extensions, a situation which is likely to remain all the time that significant customer-driven changes in scope and programme extensions persist.

The group financial statements for the year ended 31 May 2016 were the first financial statements to comply with FRS 102 and these interim results reflect those adjustments necessary to reflect this new accounting standard. The level of the pension fund deficit showed significant improvement in the May 2016 financial statements and has reduced to £Nil during the current period on a FRS102 accounting basis. This is an encouraging milestone, however a significant deficit remains on the more stringent actuarial valuation basis which will next be reviewed in 2018.

Operating profits improved from the comparative period and the consolidated results for the six months to 30 November 2016 show group turnover of GBP8.5million (2015 GBP8.3million) with a group profit after tax of GBP92,000 (2015 GBP68,000).

OUTLOOK

FSD’s sales effort is committed to both the water sector and towards new technology sectors such as Energy for Waste and Gasification. Both new work in the EfW sector and other water frameworks continue to be pursued.

The Board expect volumes in the water sector to continue to improve, but the timing of release of EfW work is difficult to predict. The order book however remains strong and the balance sheet sound. The directors believe that the group remains well positioned for the future.

P J Haines
Managing Director
28 February 2017

FIELD SYSTEMS DESIGNS HOLDINGS PLC                                              

UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 30 November 2016

                                      2016    2015

                                      £’000   £’000

TURNOVER                              8,473   8,311

Cost of sales                         (7,902) (7,819)

                                      _______ _______

GROSS PROFIT                          571     492

Net operating expenses                (449)   (394)

                                      _______ _______

OPERATING PROFIT                      122     98

Interest payable and similar charges  8       7

                                      _______ _______

PROFIT ON ORDINARY

ACTIVITIES BEFORE TAXATION            114     91

Taxation                              22      23

                                      _______ _______

PROFIT ON ORDINARY

ACTIVITIES AFTER TAXATION             92      68

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

Other comprehensive income            (12)    -

                                      _______ _______

TOTAL COMPREHENSIVE INCOME

FOR THE YEAR                          80      68

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

EARNINGS PER SHARE

Basic                                 1.5p    1.3p

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

NOTES:

1.         The directors of Field Systems Designs Holdings plc accept responsibility for this announcement.

2.         This interim statement has neither been audited, nor reviewed by our auditors, Mazars LLP.

FIELD SYSTEMS DESIGNS HOLDINGS PLC                                             

UNAUDITED CONSOLIDATED BALANCE SHEET
As at 30 November 2016

                                                  2016     2015

                                                 £’000    £’000

FIXED ASSETS

Tangible assets                                    958      985

Investment property                                756      702

CURRENT ASSETS

Stock                                               19       39

Debtors                                          5,399    4,792

Cash at bank and in hand                         2,287    1,113

                                              ________ ________

                                                 7,705    5,944

                                              ________ ________

CREDITORS

Amounts falling due within one year              6,454    4,922

                                              ________ ________

NET CURRENT ASSETS                               1,251    1,022

                                              ________ ________

TOTAL ASSETS LESS CURRENT

LIABILITIES                                      2,965    2,709

CREDITORS

Amounts falling due after more than one year        34       44

PROVISION FOR LIABILITIES

Deferred tax                                         4     (59)

Post-Employment Employee Benefits                    -      293

                                              ________ ________

NET ASSETS                                       2,927    2,431

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

CAPITAL AND RESERVES

Called up share capital                            569      569

Share premium account                              159      159

Reserves                                         2,199    1,703

                                              ________ ________

SHAREHOLDERS’ EQUITY                             2,927    2,431

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