Morson Group PLC Announces its Preliminary results
Morson Group PLC Announces its Preliminary results for the year ended 31 December 2010
Morson (AIM: MRN.L), the UK's leading provider of technical engineering personnel and project design solutions, supplying over 10,000 highly skilled personnel to the aerospace and defence, nuclear and power, rail and other technical industries, is pleased to announce its preliminary results for the year ended 31 December 2010.
Solid trading performance across the Group aided by our focus on core activities:
Group revenues up 4.8% to 457.6 million (2009: 436.6 million)
Group net fee income (gross profit) up 0.9% to 35.1 million (2009: 34.8 million)
profit before tax down 2.9% to 9.4 million (2009: 9.7 million)
profit after tax up 3.9% to 7.5 million (2009: 7.2 million)
adjusted profit before tax down to 8.1 million (2009: 10.8 million)
adjusted basic earnings per share down 23.9% to 14.06 pence (2009: 18.48 pence)and
basic earnings per share down 2.4% to 15.69 pence (2009: 16.07 pence).
Continued resilience across the Group.
Average contractor numbers placed with clients up 12% to 10,200 (2009: 9,100).
Two acquisitions completed and fully integrated into the Group during the year, including the Group's largest ever acquisition, the business and assets of Wynnwith Group Limited.
Core markets remain strong and current trading is in line with Directors' expectations.
Proposed final dividend of 4.0 pence per share (2009: 4.0 pence) bringing the total dividend for the year to 6.0 pence (2009: 6.0 pence).
Before amortisation of 620,000 (2009: 1,222,000), exceptional gain on acquisition of businesses 1,249,000 (2009: nil), exceptional restructuring costs 404,000 (2009: exceptional head office relocation cost 434,000) and fair value gain regarding the derivative financial instrument 1,063,000 (2009: 530,000)
Commenting on the outlook Gerry Mason, Non Executive Chairman, said:
"Our order book for managed vendor opportunities in 2011 and 2012 remains strong. Morson has a market leading position in the UK within the Aerospace, Nuclear and Rail markets and we continue to look into expanding into other complementary areas with a particular focus on overseas markets and permanent business. Whilst we expect trading through 2011 to remain challenging, these qualities position the Group well to increase its market share as the economy recovers. In due course there is significant opportunity to see growth in these areas and this, coupled with new customer gains, will further strengthen our enviable client portfolio.
Our strategy for 2011 is to focus on our core strengths, develop new sectors and revenue streams and select new geographic locations that will put the Group in a strong position through these unique and uncertain market conditions. We are capitalising on our strong brand image and competitive advantages and will continue to leverage our unique client base.
The Board views Morson's prospects for the coming year with confidence."