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May 23, 2002

UK: Enodis posts drop in group profit during H1

Global foodservice equipment (FSE) and food retail equipment (FRE) manufacturer Enodis has reported group profit before tax, goodwill amortisation and exceptionals, of £11.3m for its H1 ended 30 March, down from £18.7m year on year. Diluted earnings per share were 3.2p for the period, down from 4.8p. No interim dividend was announced.

Global foodservice equipment (FSE) and food retail equipment (FRE) manufacturer Enodis has reported group profit before tax, goodwill amortisation and exceptionals, of £11.3m for its H1 ended 30 March, down from £18.7m year on year.

Diluted earnings per share were 3.2p for the period, down from 4.8p. No interim dividend was announced.

FSE sales were £390m, down 6% on a like-for-like basis, in weak markets. Operating profit before goodwill amortisation and exceptionals was also down 6% on a like-for-like basis to £28.9m, while operating profit in FSE US was 7% ahead on a like-for-like basis to £24.6m.

The company said that management changes and other actions had been taken to improve performance in Europe, and cost savings were being made as planned, with about £17m in additional savings during the H1.

In the FRE division, operating profit before goodwill amortisation and exceptionals was £3m lower year on year to £1.5m.

At the end of the H1, net debt stood at £380.5m, down from £493.8m year on year due to the company’s Rights Issue and its non-core business disposals of Sammic, Belshaw and Austral.

Chairman’s comments

Chairman Peter Brooks said: “These H1 results are encouraging with a particularly strong performance from FSE in the US. Good progress has also been made towards our objective of reducing debt, including the disposal of non-core businesses.

“There are grounds for cautious optimism in respect of the US market for FSE, while demand for FSE in Europe is weak.

“Overall, our expectations for FY operating profits are unchanged from those announced in November 2001, other than in respect of the effect of disposals.

“The H2 will benefit from the effects of seasonality and management actions including market share gain initiatives and new product development.

“Our Global FSE strategy is firmly on track. We believe Enodis is well positioned to benefit as economies and markets recover.”

“In our FRE business, Kysor Panel Systems, which makes walk-in coolers for supermarket customers, is performing strongly. However, Kysor Warren, which makes display cabinets and systems, has become loss-making. The management team has been replaced and the Kysor Group, comprising Kysor Panel Systems and Kysor Warren, has been formed to leverage Kysor Panel Systems’ customer relationships and reputation.”

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