2016 Final Results

1464405a-7694-4f1a-8aa5-714747185578.pdf MS INTERNATIONAL plc

Results for the 52 weeks ended 30th April, 2016

Chairman's Statement

Results and Review

It is pleasing to report that the Group has continued to build on the good progress attained in the first half of the year, notwithstanding recessionary conditions in the global industrial manufacturing and heavy engineering sector which progressively deepened as the year unfolded.

For the year ended 30th April 2016, profit before taxation increased to £1.68m (2015 - £1.54m) on revenue up at £49.28m (2015 - £45.50m). Earnings per share amounted to 9.6p (2015 - 8.20p).

The balance sheet remains very strong, even after considerable investment, with net cash and short term deposits amounting to

£12.76m (2015 - £17.15m) at the year end.

'Defence', as we anticipated, continued its recovery with a satisfying upward trajectory in revenue. This was most encouraging following the previous two years when we endured widespread constraints upon international defence budgets that resulted in a disappointingly subdued order intake and ensuing weaker revenues. Meanwhile our investment in products, facilities and personnel development has continued unabated and there are positive signs that we are beginning to reap the rewards of this important commitment.

'Forgings' manufactures on three continents producing a complete size-range of original equipment fork-arms for the forklift truck, construction, agricultural and quarrying equipment manufacturing industries together with after-market products. It experienced a most challenging time as many markets it serves were adversely impacted by the sheer scale of deepening recessionary conditions. As a consequence, the division's three business operations in the UK, USA and Brazil, had to contend with reduced weekly orders and revenue. Nevertheless, relentless tight control of costs and further investment in production efficiency drivers went some way towards countering the negative effects of the slowdown.

'Petrol Station Superstructures' traditional business of design, manufacture and construction of petrol station canopies, convenience stores and car-wash buildings across the UK, Eire and Eastern Europe also experienced a notable downturn in activity as many customers - the major oil companies, dealers and supermarket groups - deferred planned new build programmes. By contrast, Petrol Sign bv, acquired in June 2015, produced an exemplary performance emanating from an incredibly busy year restyling petrol station branding in mainland Western Europe. This success partially offset the effects of the slowdown on other parts of the division.

Outlook

Notwithstanding current negativity in some markets and the fact that growth is continuing to slow virtually everywhere, we have the desire, commitment and resources to maintain a positive stance and, most significantly, we have the ability to invest in the future with new products and facilities whilst reaching out to the opportunities that we perceive are accessible in areas that are new to us. In the meantime our priority is to go forward on all fronts and successfully contend with the existent tough market conditions.

'Defence' - despite the many global security fears, persisting or emerging, there is yet to be any meaningful evidence of the anticipated upturn in defence budgets by governments around the world. As is the case for many global suppliers of defence equipment and services, the fragility of this anticipated upturn remains a salient feature in our future business planning and expectations. Yet, during this prolonged period of market weakness, our response has been to continue investing in the business and that policy will be maintained, for there is little doubt that much is being achieved and we strongly believe that we are doing the right thing in order to grow the division. Our defence business already enjoys a world class reputation for both products and support services and in order to sustain and advance that status, the structure of the operation is being strengthened, new items are being added to the product portfolio and marketing has been intensified in both home and international markets.

'Forgings' - many of our global customers in the manufacture of mobile handling plant and equipment have already chronicled the negative effects of the economic downturn on their businesses. Clearly it may take some time for there to be any sign of a real recovery in these markets. Accordingly, our attention is focused on maintaining tight cost control and seeking any operational efficiencies to ensure that we maintain our highly creditable and enviable reputation as a strong, reliable and cost effective supplier. In the United States we are in the construction phase of a new manufacturing facility to replace the much smaller property nearby. In preparation for the relocation, additional state of the art plant and equipment is currently being assembled for installation in the new facility later this year.

Chairman's Statement

continued

'Petrol Station Superstructures'- the division is seeing a good number of the new station builds that customers postponed last year now being resurrected for construction in the current year. With the summer construction period approaching full swing, there has been a significant upturn in order intake over recent weeks from our traditional markets in the UK, Eire and Eastern Europe. Following the integration of Petrol Sign into the Group, two new 'Petrol Sign' branding business operations have been established one here in the UK and the other in Germany. In addition, a forecourt superstructures operation has been opened in The Netherlands to strengthen the company's market position in mainland Western Europe. We are greatly encouraged by the positive response of the petrol station forecourt market to our business expansion programmes.

Overall, the Group now has some very positive initiatives in place and, despite the current difficult worldwide trading environment, much is being achieved and some very interesting opportunities are opening up.

All matters considered the Board recommends the payment of a maintained final dividend of 6.5p per share (2015 - 6.5p), making the total for the year of 8p (2015 - 8p). The final dividend is expected to be paid on 21st July 2016 to those shareholders on the register at the close of business on 24th June 2016

Michael Bell 9th June 2016

For any further information please contact:

MS INTERNATIONAL plc

Michael Bell

Tel: 01 302 322133

Shore Capital Nomad and Broker

Bidhi Bhoma/Patrick Castle

Tel: (0) 20 7408 4090

Consolidated income statement

For the 52 weeks ended 30th April, 2016

2016 2015

Total Total

£000 £000

Revenue 49,282 45,503

Cost of sales (36,413) (34,763)

Gross profit 12,869 10,740

(3,104)

(7,909)

(2,357)

(6,643)

Distribution costs Administrative expenses

(11,013) (9,000)

Group operating profit 1,856 1,740

Finance revenue Finance costs

Other finance costs - pensions

47

(5)

(216)

70

(32)

(237)

(174) (199)

Profit before taxation 1,682 1,541

Taxation (98) (188)

Profit for the period attributable to equity holders of the parent 1,584 1,353

9.6p

Earnings per share: basic and diluted

8.2p

Consolidated and company statement of comprehensive income

For the 52 weeks ended 30th April, 2016

Group Company

2016 2015 2016 2015

Total Total Total Total

£000 £000 £000 £000

Profit for the period attributable to equity holders of the parent 1,584 1,353 1,755 955

Exchange differences on retranslation of foreign operations 228 (106) - -

Net other comprehensive profit/(loss) to be reclassified to profit or

loss in subsequent periods 228 (106) - -

Net other comprehensive loss not being reclassified to profit or loss

in subsequent periods (814) (771) (814) (771)

Total comprehensive income for the period attributable to equity

holders of the parent 998 476 941 184

Consolidated and company statement of changes in equity

capital

Capital redemption

reserves

reserve

Foreign

1. Group

   At 3rd May, 2014

   Profit for the period Other comprehensive loss

   Total comprehensive (loss)/income Dividends paid

   At 2nd May, 2015

   Profit for the period Other comprehensive income/(loss)

   Total comprehensive income

   Dividends paid

   Change in taxation rates Depreciation of buildings revaluation

   At 30th April, 2016

2. Company

At 3rd May, 2014

Profit for the period Other comprehensive loss

Total comprehensive income

Dividends paid

At 2nd May, 2015

Profit for the period Other comprehensive loss

Total comprehensive income

Dividends paid Dividend received from subsidiary

Change in taxation rates Depreciation of buildings revaluation

At 30th April, 2016