Mersey Docks: Interim Results for 6 months to June 2004
Mersey Docks & Harbour Co
07 September 2004
FOR IMMEDIATE RELEASE 7th September 2004
THE MERSEY DOCKS AND HARBOUR COMPANY
Interim Results for the Six Months Ended 30th June 2004
Highlights
•Turnover increased by 6.9% to £151.5m (2003: £141.7m)
•Underlying pre-tax profit rose 5.9% to £28.7m (2003: £27.1m)
•Underlying earnings per share up by 13.8% to 25.6p (2003: 22.5p)
•Interim dividend raised by 12.7% to 8.0p (2003: 7.1p)
•Share purchase programme to resume
‘Commenting on the results, Gordon Waddell, Chairman said:
‘The results for the first half of 2004 demonstrate the progress in both profit
and earnings per share indicated at the AGM and in the recent trading statement
with all Divisions seeing improved trading. Continuing growth in container
traffic in both Liverpool and Dublin is evident and roll-on/roll-off prospects
are strengthening with the likelihood of additional shipping capacity before the
year-end and in 2005.
‘The outlook remains positive and further progress is expected in all operating
divisions in the second half of the year, together with significant property
disposals. With reduced capital expenditure, cash generation should continue to
advance and, in the absence of value-creating acquisition opportunities, the
Board’s priority, subject to market conditions, is to resume and maintain the
share repurchase programme, returning approximately £40m to shareholders in the
second half of the year.’
G.H. Waddell
Chairman
For further information contact:
Peter Jones, Chief Executive
Alastair Findlay, Finance Director
Eric Leatherbarrow, Public Relations Today: 0780 207613
The Mersey Docks and Harbour Company Thereafter: 0151 949 6000
Anna Rainbow 07850 138260
Smithfield 020 7360 4900
CHAIRMAN’S STATEMENT
The results for the first half of 2004 demonstrate the growth in profit and in
earnings per share expected by the Board and indicated in my statement at the
AGM in May and in the trading update statement in June.
Group turnover for the period increased by 6.9% to £151.5 million (2003: £141.7
million). Profit before taxation and goodwill amortisation (‘underlying profit’)
increased by 5.9% to £28.7 million (2003: £27.1 million). Amortisation of
goodwill was £0.9 million (2003: £0.7 million), leading to Group profit before
taxation of £27.8 million (2003: £26.4 million), an increase of 5.3%. Profit
attributable to shareholders advanced by 6.1% to £19.1 million (2003: £18.0
million). Earnings per share saw a sharp increase of 12.9% to 24.5 pence (2003:
21.7 pence) largely reflecting the impact from the equity retirement programme
in 2003, assisted by a small reduction in the tax charge (30.9% vs. 31.8%).
Underlying earnings per share increased by 13.8%, a little ahead of the advance
in basic earnings per share because of the higher goodwill amortisation charge.
In the light of the rise in earnings per share, the Board has declared an
interim dividend of 8.0 pence per share, increased by 12.7% (2003: 7.1 pence),
which will be paid on 21st October 2004 to shareholders on the register on 1st
October.
Port Operations Division
• Gross turnover up 3.8% to £78.5 million (2003: £75.6 million)
• Operating profit before goodwill up 4.1% to £28.0 million (2003:
£26.9 million)
All business units reported improved sales and the advance in operating profit
was led by performance at Liverpool.
Liverpool
Cargo volumes in the important sectors of containers, roll-on/roll-off and
agribulks increased by 8.9%, 10.4% and 7.3% respectively, providing the motor
for the Port’s performance. Volumes in other cargo sectors were down, which
resulted in a marginal reduction in overall tonnage down 1.0% at 15.9 m
