Mersey Docks and Harbour: 2003 Prelims
RNS Number:5684W
Mersey Docks & Harbour Co
16 March 2004
For Immediate Release Tuesday 16th March 2004
THE MERSEY DOCKS AND HARBOUR COMPANY
Preliminary Results for the Year Ended
31st December 2003
*Group turnover rose 8.9% to #297.4m (2002: #273.0m)
*Group operating profit up 5.8% to #65.7m (2002: #62.1m)
*Profit before tax #53.7m (2002: #53.3m)
*Underlying* profit before tax for the year #55.2m (2002: #54.6m)
*Earnings per share 45.1p (2002: 44.5p)
*Underlying* earnings per share up 2.0% to 46.9p (2002: 46.0p)
*Increased final dividend of 16.0p, making total for the year of 23.1p, up
7.4% (2002: 21.5p)
*Continued strong cash flow
*Princes Dock: positive news on lettings and developments
*before goodwill amortisation
Commenting on the results, Chairman Gordon Waddell said:
“The Group’s performance in 2003 was in line with our expectations and a
stronger second half delivered growth in our core ports business.
“The Group’s recent investment programme is beginning to deliver growth
and the beneficial impact should be evident for several years. This
programme has been enhanced by substantial customer investments at the
Group’s main port locations, reflecting confidence in our portfolio and
its prospects.
“The Board is confident that the strengthening performance in the second
half of the year represents a sustainable trend, and looks forward to
further progress in 2004.”
G.H. Waddell
Chairman
For further information:
The Mersey Docks and Harbour Company
Peter Jones, Chief Executive
Alastair Findlay, Finance Director today: 020 7678 8000
Eric Leatherbarrow, Public Relations thereafter: 0151 949 6000
Smithfield
Anna Rainbow 020 7360 4900
Chairman’s Statement
Introduction
I am pleased to report that the Group’s performance in 2003 was in line with our
expectations and a stronger second half delivered growth in our core port
operations. The Group, with its high quality assets, spread of business and
geographical mix, is benefiting from substantial recent investment and is well
positioned to take advantage of any economic upturn.
In 2003, Group turnover increased by 8.9% to #297.4 million (2002: #273.0
million) and profit before taxation was up 0.8% at #53.7 million (2002: #53.3
million). Underlying profit (before goodwill amortisation and tax) was up 1.1%
at #55.2 million (2002: #54.6 million), in spite of a #2.1 million increase in
net interest payable. Underlying earnings per share were up 2.0% at 46.9 pence
(2002: 46.0 pence). Basic earnings per share were 45.1 pence (2002: 44.5 pence).
With a cash conversion ratio increasing from 112% to 118%, these results once
again demonstrate the cash generative nature of the Group.The Board continues
to keep the share repurchase programme under close review: however, with the
share price at or around the current level, the case for repurchases is less
compelling.
The Board has proposed a final dividend of 16.0p per share giving a total
dividend for the year of 23.1 pence per share, a 7.4% increase over 2002. The
total dividend would be covered twice by underlying earnings, which the Board
considers to be appropriate in a business which demonstrates long-term
stability. The increase in dividend reflects the strength of the port operations
and the Board’s confidence in the Group’s future progress.
Port Operations
The division’s turnover increased 7.3% to #153.8 million (2002: #143.3 million)
and operating profit before goodwill increased by 5.2% to #54.3 million (2002:
#51.6 million). The small decline in operating margin reflects an increase in
the contribution of lower margin activities. The tonnage of carg
