AVESCO GROUP PLC ANNUAL REPORT 2008 05
www.avesco.com
Chairman’sStatement
MichaelGibbins
The Avesco Group has a strong balance sheet underpinned by significant
assets and a strong funding position. We have well established businesses
and believe that by continuing to focus on service and quality, we are well
positioned against our competitors.
RESULTS
These financial statements have been prepared using International Financial Reporting Standards (IFRS) and the OVERVIEW
comparative figures restated accordingly.
An explanation of the impact of IFRS on the Group’s previously published financial statements is contained in the
> In the twelve months ended
notes to the Financial Statements. However, there is no substantial effect on trading results.
30 September 2008, revenue
increased to £94.8m (2007: £33.2m),
In the twelve months ended 30 September 2008, revenue increased to £94.8m (2007: £33.2m), reflecting the
reflecting the inclusion of the Avesco
inclusion of the Avesco plc companies for the full 12 months and the acquisition in April 2008 of Charter Broadcast.
plc companies for the full 12 months
There was a profit before tax from continuing operations of £6.5m (2007: £0.1m). Basic earnings per share were
and the acquisition in April 2008 of
21.6p (2007: 157.4p). The Group increased its trading profit (as defined per note 2.4 of the Financial Statements) to
Charter Broadcast.
£1.6m (2007: £0.6m) helped by positive impact of the European Football Championships and the Beijing Olympics.
At the end of the period, the Group remained in good order with net borrowings of £19.8m and gearing of
> There was a profit before tax from
37%. The bulk of a retention against warranty and indemnity claims relating to the disposal of the Group’s interest
continuing operations of £6.5m
in Complete Communications Corporation Limited (“Complete”), which was completed in December 2006, has
(2007: £0.1m).
now been released, of which £4.6m was received by the Group during the year and a further £4.3m, including
interest of £0.4m, after the period end.
> Basic earnings per share were 21.6p
DIVIDEND AND SHARE CAPITAL
(2007: 157.4p).
In the light of the current uncertain environment, the focus of the Avesco Group is on cash generation, maintaining
its balance sheet strength and ensuring that the Company has the potential to take advantage of any
opportunities that may emerge. We have, therefore, reviewed our future dividend policy and decided, despite a
> The Group increased its trading profit
resilient trading performance, to propose a reduction in the final dividend to 1.0 p (2007: 3.5p), giving a total
to £1.6m (2007: £0.6m) helped by
dividend for this financial year of 3.5p (2007: 6.0p). The final dividend will be paid on 6 April 2009.
positive impact of the European
Football Championships and the
In October 2007 and January 2008, the Company used £1m from the proceeds of sales of its shares in 2waytraffic
Beijing Olympics.
N.V. to make market purchases of its own shares, buying a total of 870,000 shares. The Board has no current
intention to make market purchases of any further shares.
> Net borrowings of £19.8m and
CURRENT TRADING AND OUTLOOK
gearing of 37%.
We are cautious about the short-term prospects for the economy and have planned accordingly. A number of
actions have been taken to improve the Group’s cash generation. Capital expenditure has been substantially
reduced and other cost reduction measures taken. In the first quarter of the new financial year we have continued
to grow revenue compared to the same period last year which will help to cushion the absence of major sporting
events in 2009. This performance has been driven by an effective sales strategy and from an increasing
contribution from our businesses in Dubai and China.
These actions demonstrate the defensive qualities of the business and consequently we expect the Avesco Group
to be strongly cash positive in this financial year.
PEOPLE
I would like to thank all our staff for their skill, hard work and determination to see the business succeed. We
cannot be more appreciative of their achievements in these challenging times.
CONCLUSION
2009 will be a very tough year. I can assure you that we are attentive and do not underestimate the short-term
challenges. The Avesco Group has financial strength, is strongly cash generative, has proven management and
well established and well positioned businesses that should enable us to be more resilient in any downturn and
prosper in more positive markets.
MICHAEL GIBBINS
CHAIRMAN
15 January 2009
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