Tellings Golden Miller Group Plc
Preliminary Results
For the financial year ended 31 December 2005
Chairman's Statement
Tellings Golden Miller Group is a national bus and coach operator, providing
bus services to County Councils, the BBC and a number of educational
establishments. In addition, the Group operates scheduled coach services on
behalf of National Express and for many airlines at Heathrow Airport. The coach
division provides luxury coach hire in Great Britain and Europe using a fleet
of over 100 modern coaches.
Highlights
* Turnover excluding discontinued operations doubled to �30.1million (2004: �
14.5million).
* Operating loss on continuing operations of �0.8m (2004: Profit �
1.3million).
* Pre-tax profits �14.0m (2004 �2.9million).
* Net assets �10.0m (2004 �9.8m) equating to 43.7pps.
* Paid special interim dividend in 2005 of 60p per share.
* Continued tender success.
Enquiries
Name Organisation Telephone
Stephen Telling, Tellings Golden 020 8755 7050
Chairman and Chief Miller Group
Executive
Basil Taylor, Tellings Golden 020 8755 7050
Miller Group
Finance Director
Introduction
Tellings Golden Miller Group is a bus and coach operator providing scheduled
and private hire services to a broad customer base. Operations are throughout
the UK from bases in London, Hampshire, East Anglia, County Durham and the Tyne
and Wear.
I am pleased to report the results of Tellings Golden Miller Group Plc for the
year ended 31 December 2005. As Shareholders will be aware, the London Bus
Division was sold for �20.4m in cash to West Midlands Travel Limited, a
subsidiary of National Express Group plc in June 2005. This sale generated a
profit for Shareholders of �14.8m out of which a Special Dividend of �13.75m
was paid to Shareholders in August 2005. Following the sale, we have drawn
together the remaining operations, focused on areas where improvements are
necessary and cut back central costs. This process has resulted in our
incurring reorganisation and other one off costs and these have been provided
for in 2005's figures resulting in a significant loss for the year from
remaining operations, ignoring the gain on sale.
Results
Turnover from continuing operations and acquisitions for the year was �30.1m
(2004: �14.5m) reflecting a full year's contribution from acquisitions in 2004
and tender successes in 2005. The operating loss was �0.8m (2004: profit �1.3m)
and profit before taxation was �14.0m (2004: �2.9m).
Net assets were �10.0m (2004: �9.8m) equating to 43.7 pence per share. Net debt
(excluding hire purchase debt on the vehicle fleet of �10.9m) was �6.8m (2004:
�9.5m).
Dividend
Following the payment of the Special Dividend of 60p per share in August 2005,
no final dividend is proposed.
Operational review
(i) London
The Group's London based operations comprise a fleet of 65 luxury coaches
presently operating out of our Twickenham depot from which we will be moving in
July 2006.
Due to the competitive market and resultant adverse effects on Tourism of the
London Bombings of 7 July 2005, our coach Private Hire fleet suffered a
turnover downturn of 11% to �4.1m which had a direct impact on profitability.
However, despite an increase in fuel costs, up by over 10% on the year, strict
management of controllable costs mitigated the effect of such adverse trends
enabling this operation to report a profit for the year.
We have reviewed the shape of our fleet, purchasing eight new air-conditioned
coaches to replace eight coaches transferred to our Aircrews operations. This
will ensure we are in the strongest position to meet customer demands for 2006
Tellings Golden Miller Crew Operation operating out of Heathrow and providing
transport for aircrew to and from the airport.
This business was acquired from National Express in February 2005. During,
2005, we moved these operations to a single depot at Heathrow airport and
restructured operations to reduce costs and operating efficiency. Other than
fuel, costs have been reduced by 20%.
Although two airline clients left shortly after our acquisition of this
business, our client base has stabilised and has recently started to grow.
Price increases are being implemented as contracts come up for review. The
Aircrews fleet has benefited from the eight coaches transferred from Private
Hire which has enabled us to sell eight older coaches. More efficient operating
practices have enabled us to reduce this fleet by a further seven coaches. The
remaining fleet has been rebranded into the Group's livery. All these measures
have achieved improved performance and customer appreciation.
Turnover from this operation over ten months in 2005 was �3.2m. During this
period, this business made a loss. Implementation of rate increases coupled
with further control of costs and operating efficiencies will return this
business to profit later this year.
Linkline, based in North West London, which provides coach services mainly to
the BBC and Thames Valley University, as well as Private Hire services.
Turnover from this business in 2005 was �1.1m, comparable to 2004. This niche
operation benefited from buoyant private hire activity during the year.
Two new contracts representing turnover of �0.3m per annum were added at the
end of 2005 and are now beginning to contribute to profitability. Renewals of
existing contracts are at the discussion stage.
ii. Hampshire
The Group provided bus operations between Portsmouth and Southampton. This
service commenced in November 2004 and because of continued losses, was
discontinued in August 2005. During 2005, this service generated a turnover of
�0.1m
Since termination of this service, our Portsmouth depot is dedicated to
National Express operations.
(iii) National Express
The Group provides coaches and crew to National Express on services operated
out of our Portsmouth and Cambridge depots. The Group enjoyed significant
expansion of this business during 2005 with three new routes being added.
Turnover amounted to �4.1m in 2005, up 84% on 2004. However, difficulty in
recruiting and the impact of fuel increases during 2005 have led to this "high
mileage" business reporting a loss for the year. Since year end we have reached
agreement with National Express on part of our business, and continue
discussions on the remaining, to increase our revenue and thus restore this
business to profit.
(iv) East Anglia and Essex
This division comprises Burtons which operates scheduled and non-scheduled bus
and coach services from Haverhill and Newmarket, and Network Colchester which
operates local bus services in Colchester and its environs.
Network Colchester was acquired from Arriva Plc in September 2004 and was known
to be significantly loss making. In 2005, this operation was reorganised, the
total route network changed and simplified, new vehicles, brand and Group
procedures introduced and working practices altered.
Progress was made throughout 2005 although the operation was still loss making.
However in 2006, as a result of all the changes, the operation will return to
profit.
Burtons operates in several market segments. Coach revenues grew 18% but this
was insufficient to match the increased cost of wages and fuel.
National Express operations also expanded on the Cambridge to London service
but here again profitability was impacted by fuel costs and driver shortages
requiring the use of expensive agency drivers.
Burtons bus operations consist mainly of contracted services in the Cambridge,
Newmarket and Bury St Edmunds areas, the prices of which were agreed some years
ago. Their profitability has also been impacted by fuel and labour costs. The
majority of these were re-tendered in October and while fewer tenders were
retained, these were at an improved rate.
The whole Burtons operations operated at a significant loss for 2005, although
much has been done to improve the situation. The fleet now has an average age
of 6.6 years, well below the Government target of 8 years. Management will
continue to restore the Burtons operation to an acceptable level of profit.
(v) North East
In the North East the Group owns Classic Coaches, a national coach and local
bus operator.
Turnover of this operation was up 18% overall in 2005 at �10.4m with a
particularly strong increase in bus operations, up 19% at �3.0m. Included in
bus operations is the "U Call" and "Care Call" services which the Company
operates on behalf of the Tyne and Wear Passenger Transport Executive (Nexus)
principally aimed at providing low cost transportation for the elderly and
infirm. This contract is up for re-tender in 2006.
This Company's success in winning more school holiday tours led to an increase
in revenues from the coaching operation of 7%.
Overall the profit for the year was comparable to 2004.
Current trading
There has been an encouraging start to the year in all divisions with the
exception of Burtons. As discussed, management action is continuing to address
this issue.
The future
Having largely reshaped the Group, the next steps for us are to reduce the
impact of central costs by profitable expansion and restoration of operating
margins. The key issues to be addressed are:
a. Managing the relocation of our Head Office and Twickenham coach operations;
b. Finalising the reorganisation of Burtons;
c. Fuel costs, exposure to which we are looking to hedge.
The upward pressure on drivers' costs due to the current shortage of drivers
and the ever tightening of regulations are pushing costs upwards. Cost control
and maximising the utilisation of our fleet will be our watchwords for the
coming year. The recent restructuring of our fleet to a very young and modern
fleet not only maximises fuel efficiency but will also help keep engineering
costs under control. Our coaches are of high specification giving us a strong
competitive advantage in the private hire market.
For the future, the coach industry will continue to be under attack from low
cost airlines who seek to fill surplus winter capacity with school holiday
business previously the domain of the coach industry.
2005 saw a significant amount of merger and acquisition activity within the
industry mainly by the bigger operators. This has had the effect of reducing
the number of potential acquisition targets available to us but opportunities
for growth by acquisition nevertheless remain and will be pursued by us.
There have been a number of board changes in 2005. I would like to thank all of
our employees and past and present board members for their efforts in 2005 and
look forward to their continued support in the current year.
Stephen Telling
Chairman
4 April 2006
consolidated PROFIT AND LOSS ACCOUNT
For the financial year ended 31 December 2005
Year ended Year ended
31 December 31 December
2005 2004
Notes �000's �000's
Group turnover
Continuing operations 26,872 14,472
Acquisitions 3,237 -
Discontinued operations 11,424 23,910
---- ----
41,533 38,382
Cost of sales (37,545) (30,757)
---- ----
Gross profit 3,988 7,625
Administration costs (4,385) (4,211)
---- ----
Group operating (loss)/profit (397) 3,414
---- ----
Continuing operations (623) 1,314
Acquisitions (194) -
Discontinued operations 420 2,100
---- ----
Group operating (loss)/profit (397) 3,414
---- ----
Profit on sale of subsidiaries 14,835 -
Net Interest (459) (533)
---- ----
Profit on ordinary activities 13,979 2,881
before taxation
Tax on Profit on ordinary (63) (842)
activities
---- ----
Profit for the financial year 13,916 2,039
________ ________
Profit and loss reserve brought 5,196 3,157
forward
---- ----
19,112 5,196
Dividends paid (13,762) -
---- ----
Profit and loss reserve carried 5,350 5,196
forward
________ ________
Basic and diluted earnings per 5 60.66p 9.13p
share
There are no recognised gains and losses other than those passing through the
profit and loss account.
consolidated balance sheet
As at 31 December 2005
31 December 31 December
2005 2004
Notes �000's �000's
Fixed Assets
Intangible assets 829 1,126
Tangible assets 20,586 25,045
Investments - -
------ ------
21,415 26,171
------ ------
Current Assets
Stocks 364 572
Debtors 5,525 5,279
Cash at bank and in hand 352 1,171
------ ------
6,241 7,022
CREDITORS: amounts falling
due within one year (8,327) (11,310)
------ ------
Net current liabilities (2,086) (4,288)
------ ------
Total assets less current 19,329 21,883
liabilities
CREDITORS: amounts falling
due after more than one year (7,695) (9,550)
Provisions for liabilities and (1,657) (2,510)
charges
------ ------
Net Assets 9,977 9,823
____________ ____________
Capital and Reserves
Called up share capital 1,763 1,763
Share Premium account 2,864 2,864
Profit and loss account 5,350 5,196
------ ------
Shareholders' funds 9,977 9,823
------ ------
Total capital employed 9,977 9,823
____________ ____________
Shareholders' funds may be
analysed as:
Shareholders' funds - equity 9,820 9,666
Shareholders' funds - non-equity 157 157
------ ------
9,977 9,823
____________ ____________
CONSOLIDATED CASH FLOW STATEMENT
For the financial year ended 31 December 2005
Year ended Year ended
31 December 31 December
2005 2004
Notes �000's �000's
Net cash flow from operating activities 7 2,009 3,056
Returns on investments and servicing of (481) (533)
finance
Taxation - Corporation tax paid (112) (754)
Capital expenditure and financial (1,346) (141)
investment
Acquisitions and disposals 19,673 (2,091)
Equity dividends paid (13,762) (222)
Financing (5,562) (2,341)
----------- -----------
Increase/(Decrease) in cash in the year 419 (3,026)
___________ ___________
Reconciliation of net cash flow to
movement in net debt
Increase/(Decrease) in cash in the year 419 (3,026)
Cash inflow from increase in debt and 5,562 2,341
lease financing
Loans and Finance leases disposed of/ 2,102 (3,918)
(acquired with) subsidiary
Other non - cash changes (4,634) (6,822)
----------- -----------
Movement in the year 3,449 (11,425)
Net funds / (debt) at the start of the (16,394) (4,969)
year
----------- -----------
Net funds / (debt) at the end of the (12,945) (16,394)
year
___________ ___________
1. Basis of preparation and consolidation
The financial statements have been prepared under the historical cost basis of
accounting and in accordance with applicable Accounting Standards in the United
Kingdom.
Under section 230(4) of the Companies Act 1985, the Company is exempt from the
requirement to present its own profit and loss account.
2. Turnover
Turnover represents the amounts (excluding value added tax) derived from the
provision of services to customers.
3. Dividends
Year ended Year ended
31 December 31 December
2005 2004
�000's �000's
Equity shares
Dividends paid in the year 13,762 -
----------- -----------
13,762 -
----------- -----------
4. Profits attributable to Tellings Golden Miller Group Plc
The profit for the year dealt with in the accounts of the parent company was �
20,017,050 (2004 Loss: �58,104). As permitted by Section 230(4) of the
Companies Act 1985, no separate profit and loss account is presented in respect
of the parent company.
5. Earnings per share
Earnings per ordinary share have been calculated in accordance with FRS 14
"Earnings per share", by calculating group profit on ordinary activities after
tax divided by the weighted average number of ordinary shares in issue during
the period.
The calculation of basic and diluted earnings per ordinary share is based on
the profit for the financial year as follows together with the weighted average
number of equity voting shares in issue.
Year ended Year ended
31 December 31 December
2005 2004
Basic weighted average share capital 22,937,499 22,330,602
(number of ordinary shares)
�000's �000's
Profit after taxation and minority interests 13,916 2,039
(for basic and diluted EPS calculation)
Earnings per share (basic and diluted) 60.66p 9.13p
*Proforma EPS reflecting share capital in issue as if the reorganisation on
floatation had taken place in the period (pence)
6. Reconciliation of movements in shareholders' funds
Group Year ended Year ended
31 December 31 December
2005 2004
�000 �000
At 1 January 2005 9,823 6,822
Profit for the year 13,916 2,039
New share capital subscribed (net of issue price) - 51
Share Premium arising - 911
Dividends paid (13,762) -
------ ------
At 31 December 2005 9,977 9,823
____________ ____________
7. Reconciliation of operating profit to net cash inflow from operating
activities
Group Year ended Year ended
31 December 31 December
2005 2004
�000 �000
Operating (loss)/profit (397) 3,414
Depreciation charges 2,068 1,758
Profit on the sale of fixed assets (18) (64)
Decrease/(increase) in stocks (25) (347)
Decrease/(increase) in debtors (116) (1,222)
(Decrease)/increase in creditors 497 (483)
------ ------
Net cash inflow from operating activities 2,009 3,056
------ ------
8. Financial Information
The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 December 2005 or 2004 (but is derived
from those accounts). Statutory accounts for 2004 have been delivered to the
Registrar of Companies and those for 2005 will be delivered following the
Company's Annual General Meeting. The auditors have reported on those accounts;
their reports were unqualified and did not contain statements under section 237
(2) or (3) of the Companies Act 1985.
9. Annual General Meeting
The Annual General Meeting will be held at 9.30 am on Tuesday 9th May at the
offices of Field Fisher Waterhouse, 35 Vine Street, London EC3N 2AA.
10. Report and Accounts
Copies of the Report and Accounts for the year ended 31 December 2005 are being
sent to shareholders in due course. Further copies will be available from the
Company's website at www.tellingsgoldenmiller.co.uk or at the Company's
registered office at The Old Tram Garage, Stanley Road, Twickenham, Middlesex
TW2 5NP.
END
Tellings Golden Miller (LSE:TGM)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Tellings Golden Miller (LSE:TGM)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
