Ms International PlcLSE: MSI

2017 Final Results

· MarketScreener
MS INTERNATIONAL plc

Results for the 52 weeks ended 29th April, 2017

Chairman's Statement

Results and Review

It has been a period of solid growth across much of the Group coupled with important and significant new investment to ensure we continue to take full advantage of future opportunities.

Revenue has increased across three of the Group's four divisions and it would have been all four had it not been for the rescheduling of a delivery, for a long standing international defence customer, into our 2017/18 financial year. Even so, overall revenue was up an impressive 9.2% at £53.82m for the year ended 29th April 2017 (2016 - £49.28m).

Investment across the divisions was considerable and wide ranging, reflecting our determination and commitment to optimise their future potential. This increased investment nevertheless impacted short term returns and profit before taxation amounted to £1.53m (2016 - £1.68m). Earnings per share were 9.1p (2016 - 9.6p).

The balance sheet is strong and at the year-end had net cash amounting to £15.21m (2016 - £12.76m).

'Defence division' markets generally remained testing, reflecting the many constraints placed on global defence ministries which are faced with numerous, diverse threats and yet often only have limited resources to support military procurement programmes. Hence, although programmes may be approved and planning initiated, thereafter they frequently become delayed; postponed or at worst, even cancelled. Despite such unpredictability, it is important that we continue to invest in extensive new product development as well as essential international marketing campaigns, as we seek to match the ever-changing requirements and expectations of the international market.

'Forgings division' lifted revenue by 6% as a result of strong growth in the United States and a good measure of recovery in our Brazilian operations. European markets serviced from our UK facility, remained relatively constant but were, as a result, highly competitive. The very recent production 'start-up phase' of our new superb and substantial fork-arm manufacturing property in South Carolina - a notable investment - is in process. Whilst there is still much to do and costs to complete, the facility will provide a significant capability to meet the opportunities of a changing market place.

'Petrol Station Superstructures division' produced an impressive performance, lifting revenue by some 26% over last year. Pleasingly, the number of petrol stations operating in the UK increased in 2016, the first upturn in several decades. Demand for new station builds, upgrades, plus repairs and maintenance work created a strong market for 'Global-MSI'. Clearly, we are also benefiting from having added the complimentary capabilities of station branding via 'Petrol Sign' to that of our established design, manufacture and construction of canopies and convenience stores. Our broader offering has enabled the division's marketing operations to gain added impetus. Elsewhere, in a response to a lean market for new petrol stations in Eastern Europe, our Polish operation successfully expanded into other markets and completed new station builds in twelve other countries around the world in addition to its native Poland.

'Petrol Station Branding division,' with operations in the Netherlands; Germany and the UK are all making progress. Towards the end of the period, we were at last able to commence initial work on an extensive programme to rebrand the estate of a major petrol station client in Germany. The Netherlands' operation continues to support the initiation of the German programme and the UK business also in its first year of operation, successfully winning business independently and also when teaming-up with the 'Petrol Station Superstructures Division', for those clients requiring a 'one-stop' turn-key service.

Outlook

We believe that the Group is in excellent shape and well positioned to achieve further progress following the considerable investment made across the various businesses. The order book is at a higher level than at this time last year; in particular there is a good level of orders in hand for both established and recently developed defence products. The new fork-arm facility in the United States has commenced some initial production and the prospects for our two divisions that service the petrol station market, look most promising.

All matters considered the Board recommends the payment of a maintained final dividend of 6.5p per share (2016 - 6.5p), making the total for the year of 8p (2016 - 8p). The final dividend is expected to be paid on 24th July 2017 to those shareholders on the register at the close of business on 23rd June 2017.

Michael Bell 6th June 2017

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 29th April, 2017

2017 2016

Continuing operations Total Total

£000 £000

Revenue 53,823 49,282

Cost of sales (38,875) (36,413)

Gross profit 14,948 12,869

(3,654)

(9,523)

(3,104)

(7,909)

Distribution costs Administrative expenses

(13,177) (11,013)

Group operating profit 1,771 1,856

Finance revenue Finance costs

Other finance costs - pensions

33

(31)

(247)

47

(5)

(216)

(245) (174)

Profit before taxation 1,526 1,682

Taxation (28) (98)

Profit for the period attributable to equity holders of the parent 1,498 1,584

9.1p

Earnings per share: basic and diluted

9.6p

Consolidated and company statement of comprehensive income

For the 52 weeks ended 29th April, 2017

Group Company

2017 2016 2017 2016

Total Total Total Total

£000 £000 £000 £000

Profit for the period attributable to equity holders of the parent 1,498 1,584 2,702 1,926

Exchange differences on retranslation of foreign operations 757 228 - -

Net other comprehensive profit to be reclassified to profit or loss in

subsequent periods 757 228 - -

Remeasurement gains/(losses) on defined benefit pension scheme

95

(826)

95

(826)

Deferred taxation on remeasurement on defined benefit scheme

(16)

165

(16)

165

Change in taxation rates

(75)

(153)

(75)

(153)

Net other comprehensive income/(loss) not being reclassified to

profit or loss in subsequent periods 4 (814) 4 (814)

Total comprehensive income for the period attributable to equity

holders of the parent 2,259 998 2,706 1,112

Consolidated and company statement of changes in equity

For the 52 weeks ended 29th April, 2017

Issued capital

Capital redemption

reserve

Other

reserves

Revaluation

reserve

Special

reserve

Foreign exchange reserve

Treasury shares

Retained

earnings Total

£'000

1,840

£'000

901

£'000

2,815

£'000

4,146

£'000

1,629

£'000

(289)

£'000

(3,059)

£'000

20,316

£'000

28,299

-

-

-

-

-

-

-

1,584

1,584

-

-

-

-

-

228

-

(814)

(586)

-

-

-

-

-

228

-

770

998

-

-

-

-

-

-

-

(1,320)

(1,320)

-

-

-

83

-

-

-

-

83

-

-

-

(7)

-

-

-

7

-

1,840

901

2,815

4,222

1,629

(61)

(3,059)

19,773

28,060

-

-

-

-

-

-

-

1,498

1,498

-

-

-

-

-

757

-

4

761

-

-

-

-

-

757

-

1,502

2,259

-

-

-

-

-

-

-

(1,320)

(1,320)

-

-

-

42

-

-

-

-

42

-

-

-

(7)

-

-

-

7

-

1,840

901

2,815

4,257

1,629

696

(3,059)

19,962

29,041

1,840

901

1,565

4,240

1,629

-

(3,059)

17,554

24,670

-

-

-

-

-

-

-

1,926

1,926

-

-

-

-

-

-

-

(814)

(814)

-

-

-

-

-

-

-

1,112

1,112

-

-

-

-

-

-

-

(1,320)

(1,320)

-

-

-

83

-

-

-

-

83

-

-

-

(7)

-

-

-

7

-

1,840

901

1,565

4,316

1,629

-

(3,059)

17,353

24,545

-

-

-

-

-

-

-

2,702

2,702

-

-

-

-

-

-

-

4

4

-

-

-

-

-

-

-

2,706

2,706

-

-

-

-

-

-

-

(1,320)

(1,320)

-

-

-

41

-

-

-

-

41

-

-

-

(6)

-

-

-

6

-

1,840

901

1,565

4,351

1,629

-

(3,059)

18,745

25,972

  1. Group

    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

    Profit for the period Other comprehensive income

    Total comprehensive income

    Dividends paid

    Change in taxation rates Depreciation of buildings revaluation

    At 29th April, 2017

  2. Company

At 2nd May, 2015

Profit for the period

Other comprehensive loss

Total comprehensive income

Dividends paid

Change in taxation rates Depreciation of buildings revaluation

At 30th April, 2016

Profit for the period

Other comprehensive loss

Total comprehensive income

Dividends paid

Change in taxation rates Depreciation of buildings revaluation

At 29th April, 2017