James R. Knowles (Holdings) PLC

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James R. Knowles (Holdings) PLC
A growing legal services, dispute resolution,
loss adjusting and commercial and contractual
advice consultancy group advising a broad range
of companies both in the UK and overseas
INTERIM RESULTS FOR THE SIX MONTHS ENDING 31
JANUARY 2003
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Overview

• We are an international consultancy offering
  legal and technical advice to clients in the
  construction and engineering industries
• Building upon our UK position we aim to become
  the international market leader
• Establishment in North America and Australia
  gives true global access to all markets around
  the world
• The current focus is to maximise profitability
  from all centres

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Interim Results

• Turnover increased by 13
• Profit before tax and exceptionals up 107 to
  528,000 before exceptionals
• Interest cover 8x (2002 6x)
• Dividend maintained at 0.8p per share
• EPS before exceptionals 1.4p (2002 0.5p)
• Exceptionals 325,000

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Exceptional Items

• Exceptional items
• Redundancies - 170,000
• Settlement of Canadian Dispute - 111,000
• Onerous leases - 8,000
• Discontinued operations - 36,000
• Prospects for remainder of year are good with no
  further exceptionals foreseen

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Interim results for the six months ended 31 Jan
2003 m 2002 m (As restated)
Turnover 16,255 14,421
Movement in work in progress (6) 610
Staff costs / other external charges (11,282) (10,506)
Operating charges and depreciation etc (4,414) (4,225)

Operating profit before exceptionals 553 300
Interest (net) (25) (45)

Profit before tax and exceptionals 528 255
Exceptionals (325) -
Profit before tax 203 255
Tax (59) (97)
Profit after tax 144 158

Earnings per share (before exceptional items) 1.4 0.5
Earnings per share (post exceptional items) 0.3 0.5
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Segmental AnalysisTurnover For the six months
ended January 2003
2003
2002
Increasing geographical breadth of operations
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Financial Position - Highlights

• Gearing (Debt/Equity) 36 (2002 21)
• New bank facility in place
• Increase in debtors by 11
• Turnover increased by 13
• Timing of significant invoices
• UK invoice discounting discontinued
• Debtor days 51 days (2002 49 days)
• January days (31) are deducted from the normal
  calculation, as January invoicing was performed
  on the last working day of the month

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Balance SheetAs at 31 January
2003 2002
(As restated)
Fixed assets 2,164 2,406
Current assets 11,240 10,046
Creditors within 1 year (7,481) (6,194)
Creditors - after 1 year (802) (216)
Provisions for liabilities and charges 68 44
Net assets 5,189 6,086

Called up share capital 996 996
Share premium 3,026 3,026
Revaluation reserve - 723
Merger reserve 199 199
Profit and loss account 748 1,002
Shareholders funds 4,969 5,946
Minority Interests 220 140
5,189 6,086
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Consolidated Cash Flow StatementHalf year to 31
January
2003 2002
Net cash (outflow)/inflow from operating activities (201) 695
Return on investments and servicing of finance (28) (102)
Taxation (238) (162)
Capital expenditure (net) and financial investment (229) (200)
Acquisitions and disposals (625) -
Equity dividends paid (150) (399)
Net cash (outflow)/inflow before financing (1,471) (168)
Financing (160) (140)
(Decrease)/increase in cash in the period (1,631) (308)
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UK

• Strong trading in all sectors
• Maintaining position as market leaders in
  Adjudication
• Growth in legal services
• Benefits of office rationalisation beginning to
  flow through
• Prospects for remainder of year are good

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Europe

• Strong recovery compared with previous year
  performance
• French office re organised
• Madrid refocused on International market
• Overall satisfactory improvement

12
North America

• Canadian companies performing well
• BBCG acquisition already in profit
• USA affected by delayed projects now on stream
• Turnover in excess of 1.5 million in half year
• Prospects for remainder of year are good

13
Asia and Australia

• Performance in line with expectations despite
  difficult markets
• Only Singapore is still in loss although this has
  reduced compared to last year
• New offices in Australia show excellent early
  signs for future growth and profit

14
Middle East

• Difficult markets still but performance improved
  from last year
• Effect of current war unpredictable but well
  positioned to respond to opportunities
• Reasonable prospects for remainder of year

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Outlook

• Global network largely established, focus now on
  profits
• Newly established offices making contribution
• Attracting international clients
• Despite tough markets, profitability improving
  and prospects are good

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• James R. Knowles (Holdings) PLC

A growing legal services, dispute resolution,
loss adjusting and commercial and contractual
advice consultancy group advising a broad range
of companies both in the UK and overseas