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Morson Group results in Line With Expectations

Morson Group results in Line With Expectations

Morson the UK's leading provider of technical contracting personnel to the aerospace and defence, nuclear and power, rail and other technical industries, is pleased to announce its interim results for the six months ended 30 June 2011.


&middot Solid trading performance across all sectors in line with Directors' expectations:

Revenue up 11.0% to &pound246.3m (H1 2010: &pound221.8m)

Net fee income (gross profit) up 11.4% to &pound18.6m (H1 2010: &pound16.7m)

Operating profit down 30.1% to &pound3.8m (H1 2010: &pound5.4m)

Profit before taxation down 40.8% to &pound3.1m (H1 2010: &pound5.3m)

Adjusted profit before taxation* down 7.3% to &pound3.9m (H1 2010: &pound4.2m)

&middot Net debt marginally increased during the period to &pound24.4m, up &pound1.2m from &pound23.2m at 31 December 2010, despite the acquisition of Wynnwith.

&middot All key contract renewals secured.

&middot New contract wins achieved including URENCO UK Ltd in the nuclear sector and others in the automotive sector.

&middot Acquisition of the outstanding minority stake in Morson Wynnwith in February 2011 for &pound4.0m with integration completed.

&middot Market conditions remain challenging but with positive longer term prospects.

&middot Interim dividend maintained at 2.0p per share (H1 2010: 2.0p per share).

*Adjusted profit before taxation is profit before taxation of &pound3.1m (H1 2010: &pound5.3m), excluding the fair value charge on the derivative financial instrument of &pound0.3m (H1 2010: gain &pound0.5m), amortisation of intangible fixed assets &pound0.4m (H1 2010: &pound0.2m) and exceptional cost of &pound0.1m (H1 2010: income &pound0.7m).

Gerry Mason, Non Executive Chairman, said: "As is well documented underlying market conditions during the year to date have remained poor, influenced by a lack of global capital expenditure and worldwide attempts to kick start investment activity. Despite this Morson produced a solid performance in line with our expectations."


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