FIELD SYSTEMS DESIGNS HOLDINGS PLC - Half-year Report

FIELD SYSTEMS DESIGNS HOLDINGS PLC

INTERIM RESULTS

The Board of Field Systems Designs Holdings plc (FSD), a specialist installation and engineering Group providing mechanical and electrical design and installation services in the water, power, and waste industries, announces its interim results for the six months to 30 November 2019.

OVERVIEW

The results for the first six months of this financial year reflect reduced turnover and profitability compared to the prior period, reflecting the continued impact of the Group’s dealings with its customer on Energy from Waste (EFW) projects where commercial difficulties are being encountered and litigation costs incurred to recover amounts properly due.

Gross profit margins remain impacted by the ongoing difficulties in recovering value from variations and the costs associated with programme extensions, a situation which is likely to remain until the projects can be completed, closed out, and the deserved recompense received for the efforts expended.

The current AMP6 (Sixth Asset Management Programme in the Water Industry) runs until April 2020, when AMP7 is due to start. The Group is now looking ahead to refreshing the pre-qualification process as framework plans by water utilities are rolled forward into AMP7. Some water utilities have now concluded their determinations under AMP7, whilst others are still negotiating their budgets with OFWAT. Sales volumes in the Water Industry are expected to be strong during AMP7 however this delay in agreeing an acceptable level of investment spend is causing uncertainty and delaying contract activity in the early period of the programme.

Operating profits fell from the comparative period and the consolidated results for the six months to 30 November 2019 show group turnover of GBP11.5million (2018 GBP11.8million) with a group loss after tax of GBP(2,000); (2018 profit:GBP46,000).

There remains no pension fund deficit on a FRS102 accounting basis; or on the more stringent ongoing actuarial valuation basis which was reviewed by the actuary as at March 2018.

OUTLOOK

FSD’s sales effort is committed to maximising its market share in the water sector. The Board now expect the anticipated value of new orders in the water sector to be uncertain over the forthcoming year, as the new AMP commences and timing of work is difficult to predict, however the directors believe that the group still remains well positioned for the future.

N Billings
Managing Director
28 February 2020

FIELD SYSTEMS DESIGNS HOLDINGS PLC                                              

UNAUDITED COMPREHENSIVE INCOME STATEMENT
for the six months ended 30 November 2019

                                            2019     2018

                                         GBP’000  GBP’000

TURNOVER                                  11,547   11,815

Cost of sales                           (11,002) (11,188)

                                         _______  _______

GROSS PROFIT                                 545      627

Net operating expenses                     (552)    (567)

                                         _______  _______

OPERATING (LOSS)/PROFIT                      (7)       60

Interest receivable and similar income         7        3

Interest payable and similar charges         (2)      (1)

                                         _______  _______

(LOSS)/PROFIT ON ORDINARY

ACTIVITIES BEFORE TAXATION                   (2)       62

Taxation                                       -       16

                                         _______  _______

(LOSS)/PROFIT ON ORDINARY

ACTIVITIES AFTER TAXATION                    (2)       46

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

Other comprehensive loss                    (45)     (40)

                                         _______  _______

TOTAL COMPREHENSIVE (DEFICIT)/

INCOME FOR THE PERIOD                       (47)        6

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

EARNINGS PER SHARE

Basic                                          -     0.9p

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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 GROUP STATEMENT OF FINANCIAL POSITION
As at 30 November 2019

                                                  2019     2018

                                               GBP’000  GBP’000

FIXED ASSETS

Tangible assets                                    676      575

CURRENT ASSETS

Stock                                               15       37

Debtors                                          7,323    7,770

Cash at bank and in hand                         4,339    4,184

                                              ________ ________

                                                11,677   11,991

                                              ________ ________

CREDITORS

Amounts falling due within one year              8,401    8,961

                                              ________ ________

NET CURRENT ASSETS                               3,276    3,030

                                              ________ ________

TOTAL ASSETS LESS CURRENT

LIABILITIES                                      3,952    3,605

CREDITORS

Amounts falling due after more than one year        16        8

PROVISION FOR LIABILITIES

Deferred tax                                        67       39

Post-Employment Employee Benefits                    -        -

                                              ________ ________

NET ASSETS                                       3,869    3,558

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

CAPITAL AND RESERVES

Called up share capital                            569      569

Share premium account                              159      159

Reserves                                         3,141    2,830

                                              ________ ________

TOTAL SHAREHOLDERS’ EQUITY                       3,869    3,558

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