Ensor Holdings boosts revenue and earnings in first half

Ensor Holdings posted its unaudited interim results for the six months to 30 September on Monday, with revenue for the period of £6.68m, up from £5.88m at the same time last year.

The AIM-traded company posted a gross profit of £1.86m, up from £1.61m, and an operating profit of £6.23m, rising from £1.38m.

Its profit before tax was £6.28m, a significant uplift from the £1.32m reported for the first half of last year.

Earnings per share on continuing operations was 20.7p, up from 3.4p, with a total earnings per share of 21.1p, rising from 6.5p.

“The Ensor Group is very different when compared with this time last year,” said chairman Kenneth Harrison.

“Our balance sheet now consists of two trading businesses, Ellard and Wood’s, a land holding in Brackley, Northamptonshire and a little over £10m in cash.

“One thing, however, remains the same, we continue to trade successfully and profitably.”

In September, Harrison reported interim results to the end of July and updated the markets with progress on the board’s process to sell the group.

“I am pleased to now let you know that trading at both Ellard and Wood’s, our two remaining businesses, continues to be ahead of last year, with combined sales of £6.7m.

“Margins, however, are being challenged, particularly by exchange rates, affected by a weaker pound.

“Our measures to recover margins are well advanced, so we are optimistic about the second half.”

Ensor continued to be engaged in a process to liquidate all of its assets and return cash to shareholders.

In September, the board announced its intention to make an interim distribution of cash already realised, via a tender offer.

“The documents were prepared but, ultimately, we decided not to proceed as we were not able to gain sufficient assurances around the tax treatment for the benefit of shareholders as a whole,” Harrison explained.

“At the end of November, we announced that we intend to de-list from the AIM market.

“This would ordinarily be the natural conclusion to our well-recorded and publicised strategic review and formal sale process.”

Harrison said a de-listing now, however, would fit well with the board’s intention to return cash to shareholders as soon as possible after the final asset disposals are completed.

“The de-listing will improve our flexibility to complete the realisation process and reduce delay.”

“We currently have an offer for Ellard which is at an advanced stage of negotiations.

“Without de-listing, the sale of this subsidiary would need a simple majority of shareholders at a general meeting to approve it.”

Harrison said a de-listing would allow Ensor to complete the sale more quickly and help speed up the return of cash to shareholders.

“Included in our announcement to de-list, we also let you know that an offer has been received from the Harrison family for Wood’s.

“Although Wood’s continues to be marketed, the board regards this offer as a good backup to complete the business sales following the disposal of Ellard.”