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

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