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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
Commission File number 0-19152
AUTOMATED SECURITY (HOLDINGS) PLC
ENGLAND AND WALES
(Jurisdiction of incorporation of organization)
The Clock House, The Campus, Spring Way Hemel Hempstead,
Hertfordshire HP2 7TL England
(Address of principal offices)
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.)
Form 20-F /X/ Form 40-F / /
(Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes / / No /X/
(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- .)
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[LOGO]
ASH
AUTOMATED
SECURITY
(HOLDINGS)
PLC
FOR IMMEDIATE RELEASE
Contact: Anthony Dignum
Peter Bertram
Automated Security (Holdings) PLC
011-441-44-260-008
- or -
Brian Rafferty
Taylor Rafferty Associates
212-889-4350
AUTOMATED SECURITY (HOLDINGS) PLC ANNOUNCES SIX MONTHS RESULTS TO MAY 31, 1996
London, July 15, 1996 -- Automated Security (Holdings) PLC (ASH) (NYSE: ASI),
a leading international electronic security systems group, today announced
results for the first half ended May 31, 1996.
OVERVIEW
In the six months to May 31, 1996 the Group continued to improve the overall
profitability of its core businesses. Revenue for the period from continuing
operations was up 4.5% from L74.0 million ($114.6 million) in 1995 to L77.3
million ($119.7 million) and recurring income increased by 3.6% from L41.6
million ($64.5 million) to L43.1 million ($66.7 million). Core business
operating profits were up 13.2% from L10.5 million ($16.3 million) in 1995 to
L11.9 million ($18.5 million) in 1996.
Despite this improvement, the Group made a loss before taxation of L2.2
million ($3.5 million) for the period.
Contributing to this loss were first, our share of the losses from our
associated company TVX Inc; secondly, non-recurring costs in respect of our UK
vehicle fleet operations; and finally, bank fees of L2.0 million ($3.1
million). Bank fees are accrued at the maximum rate payable under the new
bank agreement, but may reduce dependent on the speed and size of repayment of
bank debt.
* US Dollar equivalents are provided for reader convenience at the exchange
rate of L1 = US $ 1.5494
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There was a credit in the period of L0.2 million ($0.3 million) in respect of
fixed asset investments from the proceeds of the winding up of Arius Inc
(1995: L2.5 million ($3.9 million) provision in respect of the ESOP).
RECOMMENDED PROPOSALS FOR THE ACQUISITION OF ASH BY ADT LIMITED
In parallel with improving the performance of its core businesses, the Group
continued to pursue its strategy to reduce the high level of debt. Shortly
after the end of the period under review, on June 19th, the Group announced
recommended proposals whereby ADT Limited would acquire all the issued share
capital of ASH. The proposals from ADT Limited will be effected by means of
a Scheme of Arrangement to be sanctioned by the High Court in England and
Wales. It is expected that the formal Scheme document will be posted to
shareholders later this month and that the Scheme will become effective in
September 1996.
FINANCIAL HIGHLIGHTS FOR THE PERIOD
<TABLE>
<CAPTION>
1996 1995
Lm $m Lm $m
<S> <C> <C> <C> <C>
CONTINUING OPERATIONS
Total revenues 77.3 119.7 74.0 114.6
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Recurring revenues 43.1 66.7 41.6 64.5
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Core business
operating profits 11.9 18.5 10.5 16.3
Corporate and other costs (3.1) (4.9) (0.7) (1.2)
Bank fees (2.0) (3.1) (0.8) (1.2)
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Continuing operations before
exceptional operating costs 6.8 10.5 9.0 13.9
Discontinued operations and
exceptional charges (1.1) (1.8) (13.4) (20.7)
Net interest payable and
other similar charges (7.9) (12.2) (7.3) (11.3)
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(Loss)/Profit before taxation (2.2) (3.5) (11.7) (18.1)
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(Loss)/Earnings per share (3.4)p - (11.3)p -
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(Loss)/Earnings per ADR - (10.4)CENTS - (35.1)CENTS
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</TABLE>
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SECOND QUARTER COMMENTARY
Total revenues from continuing operations at L40.0 million ($61.9 million)
increased 4.0 % from L38.4 million ($59.5 million). Operating profit was up
33.1% from L2.3 million ($3.5 million) to L3.0 million ($4.7 million). The
loss before taxation was reduced from L12.5 million ($19.4 million) in 1995 to
L0.9 million ($1.4 million). Some L7.8 million of the 1995 loss was
compensated for by a write-back to reserves in respect of goodwill previously
written off.
TRADING OVERVIEW FOR THE PERIOD
ASH EUROPE
Total revenue was up 6.3% at L56.6 million ($87.7 million) from L53.3 million
($82.5 million) in 1995 with recurring revenue improving by 2.9% to L29.4
million ($45.5 million). Operating margin was up 2.2% from 14.1% to 16.3%,
reflecting the benefits from the restructuring of the UK businesses. All ASH
Europe operating units showed improved profitability compared to last year.
ASH Europe operating profits benefited from both rising sales and improving
margins and were up 23% to L9.2 million ($14.3 million) from L7.5 million
($11.6 million) in 1995.
ASH US
Total revenue was flat at L20.7 million ($32.0 million). Recurring
revenue continued to increase by 5.1% to L13.7 million ($21.2 million).
However, sales were down 8.9% at L7.0 million ($10.8 million). This primarily
reflected difficult trading conditions for API Security Inc. in Southern
California. Reduced sales and rising costs pushed margins down from 14.8% in
1995 to 13.2% and operating profits down to L2.7 million ($4.2 million) from
L3.1 million ($4.7 million) in 1995.
EXCEPTIONAL OPERATING COSTS
These related to refinancing costs of L1.3 million ($2.1 million) compared to
L1.3 million ($1.9 million) in 1995. These costs represent continuing fees to
professional advisers in connection with the refinancing of the Group. In
addition in 1995 the Group provided L2.1 million ($3.2 million) in respect of
accelerated depreciation on the replacement of computer systems and leasehold
premises at API Security.
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CASH FLOW
Cash flows during the six months to May 1996 were as follows:
1996 1995
Lm Lm
Operational cash flow
- Continuing 9 9
- Discontinued -- 1
Refinancing costs (3) (2)
Interest paid (7) (8)
Dividends and taxes paid -- (2)
Arius Letter of Credit -- (2)
----- ------
Net cash flow movement (1) (4)
----- ------
----- ------
The cash flow is stated after investing some L16.2 million ($25.1 million),
1995: L18.0 million ($27.9 million) in the establishment of new rental systems.
DIVIDENDS
In view of the result for the period the Board does not recommend payment of a
dividend in respect of the Ordinary Shares. As indicated in our announcement
of December 22, 1995 the Board will not be paying Preference dividends for the
time being.
OUTLOOK
The Board believes the proposals from ADT Limited are in the best interests of
shareholders as a whole and has agreed to recommend them to shareholders. A
document detailing the Scheme is to be distributed to shareholders later this
month.
With operations in the UK and US, ASH is a leading provider of security
systems for the commercial, industrial, and residential markets.In addition to
the ADRs listed on the NYSE (each equal to two ordinary shares), ASH's
ordinary shares are traded on the London Stock Exchange and prices may be
accessed on the Reuter Equities 2000 Service under the symbol ATOS.L and on
Quotron under the symbol ATOSU.EU.
# # #
(Tables to follow)
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UNAUDITED GROUP PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED MAY 31, 1996
<TABLE>
<CAPTION>
YEAR TO
SIX MONTHS TO MAY NOVEMBER
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1996 1996 1995 1995
*$'000 L'000 L'000 L'000
(AS RESTATED)
<S> <C> <C> <C> <C>
REVENUES
Continuing operations 119,717 77,267 73,953 153,733
Discontinued operations - - 6,080 9,616
------- ---------- ---------- ----------
119,717 77,267 80,033 163,349
======= ====== ====== ======
OPERATING PROFIT
Continuing operations before
exceptional operating costs 10,530 6,796 8,986 20,240
Exceptional operating costs (2,070) (1,336) (3,338) (5,484)
------- ---------- ---------- ----------
Continuing operations 8,460 5,460 5,648 14,756
Discontinued operations - - 868 1,439
------- ---------- ---------- ----------
OPERATING PROFIT 8,460 5,460 6,516 16,195
Amount written back/( written off)
fixed asset investments 327 211 (2,503) (3,066)
Provision for loss on
discontinued operations
- - (8,381) (5,675)
------ ---------- ---------- ----------
PROFIT/(LOSS) ON ORDINARY
ACTIVITIES BEFORE INTEREST
AND SIMILAR CHARGES 8,787 5,671 (4,368) 7,454
Interest payable and similar charges (12,247) (7,904) (7,302) (14,862)
------ ---------- ---------- ----------
LOSS BEFORE TAXATION (3,460) (2,233) (11,670) (7,408)
Taxation (581) (375) (400) (800)
------ ---------- ---------- ----------
LOSS AFTER TAXATION (4,041) (2,608) (12,070) (8,208)
Preference dividends (2,198) (1,419) (1,419) (2,839)
----- ---------- ---------- ----------
RETAINED LOSS FOR THE
FINANCIAL PERIOD (6,239) (4,027) (13,489) (11,047)
------ ---------- ---------- ----------
LOSS PER ORDINARY SHARE (5.2)CENTS (3.4)p (11.3)p (9.2)p
LOSS PER ADR** (10.4)CENTS (6.8)p (22.6)p (18.4)p
</TABLE>
Notes:
The results of operations discontinued in the year to November 30, 1995
have been reclassified as discontinued operations in the results of the six
months to May 1995.
* US Dollar equivalents are provided for reader convenience at the exchange
rate of L1 = US $ 1.5494
** Each ADR is equivalent to two Ordinary Shares
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<TABLE>
<CAPTION>
UNAUDITED GROUP BALANCE SHEET
AT MAY 31, 1996 MAY 1996 MAY 1996 NOV.1995
$'000 L'000 L'000
<S> <C> <C> <C>
FIXED ASSETS
Tangible assets 353,124 227,910 227,386
Investments - Associated undertakings - - 201
- Own shares (ESOP) 951 614 614
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TOTAL FIXED ASSETS 354,075 228,524 228,201
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CURRENT ASSETS
Stocks 7,446 4,806 4,600
Debtors 47,538 30,681 30,676
Cash at bank and in hand 5,485 3,540 5,936
----------- ----------- ----------
TOTAL CURRENT ASSETS 60,469 39,027 41,212
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CREDITORS: amounts falling due
within one year
Loans and other borrowings 395 255 83,104
Other creditors 63,925 41,258 39,712
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64,320 41,513 122,816
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Net current liabilities (3,851) (2,486) (81,604)
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TOTAL ASSETS LESS CURRENT LIABILITIES 350,224 226,038 146,597
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FINANCED BY:
CREDITORS: amounts falling due
after more than one year
Loans and other borrowings 184,546 119,108 37,152
Convertible Capital Bonds 67,977 43,873 43,813
Other creditors 5,511 3,557 4,325
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258,034 166,538 85,290
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Provisions for liabilities and charges 1,326 856 1,060
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Deferred income - rentals in advance 46,707 30,145 27,763
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CAPITAL AND RESERVES
Called up share capital 93,870 60,585 60,586
Share premium account 8,601 5,551 5,610
Other reserves (127,655) (82,390) (82,432)
Profit and Loss account 69,341 44,753 48,720
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Equity interest (31,188) (20,129) (16,145)
Non-equity interests 75,345 48,628 48,629
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SHAREHOLDERS' FUNDS
(INCLUDING NON-EQUITY INTERESTS) 44,157 28,499 32,484
---------- ---------- ----------
---------- ---------- ----------
350,224 226,038 146,597
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
For US GAAP purposes total shareholder equity as at November 30, 1995 was
L117.2 million, the major differences from UK GAAP being the inclusion of
intangible assets (L150.8 million) in total assets and the reclassification
under total liabilities of redeemable preference shares (L48.6 million).
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CORE BUSINESS TRADING ANALYSIS
FOR THE SIX MONTHS ENDED MAY 31, 1996
<TABLE>
<CAPTION>
(AS RESTATED)
1996 1996 1995 CHANGE
$'000 L'000 L'000 %
<S> <C> <C> <C> <C>
CONTINUING OPERATIONS
EUROPE TOTAL
Sales 42,167 27,215 24,710 10.1
Recurring income 45,544 29,395 28,566 2.9
------- ---------- ---------- ------------
87,711 56,610 53,276 6.3
------- ---------- --------- ------------
Operating profits 14,272 9,211 7,486 23.0
Margin 16.3% 16.3% 14.1%
USA TOTAL
Sales 10,829 6,989 7,674 (8.9)
Recurring income 21,177 13,668 13,003 5.1
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32,006 20,657 20,677 (0.1)
------- ---------- ---------- ------------
Operating profits 4,217 2,722 3,056 (10.9)
Margin 13.2% 13.2% 14.8%
TOTAL CONTINUING BUSINESS
Sales 52,996 34,204 32,384 5.6
Recurring income 66,721 43,063 41,569 3.6
------- ---------- ---------- ------------
119,717 77,267 73,953 4.5
------- ---------- ---------- ------------
Operating profits 18,489 11,933 10,542 13.2
Margin 15.4% 15.4% 14.3%
Operating profits 18,489 11,933 10,542 13.2
TVX Inc (311) (201) (62) (224.2)
Bank charges (3,138) (2,025) (823) (146.1)
Corporate costs (1,893) (1,222) (989) (23.6)
Other costs (2,617) (1,689) 318 (631.1)
------- ---------- ---------- ------------
Profit before interest and
exceptional operating expenses 10,530 6,796 8,986 (24.4)
------- ---------- ---------- ------------
</TABLE>
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UNAUDITED GROUP PROFIT AND LOSS ACCOUNT
FOR THE THREE MONTHS ENDED MAY 31, 1996
<TABLE>
<CAPTION>
(AS RESTATED)
1996 1996 1995
$'000 L'000 L'000
<S> <C> <C> <C>
TURNOVER
Continuing operations 61,912 39,959 38,406
Discontinued operations - - 3,462
-------- ---------- ---------
61,912 39,959 41,868
OPERATING PROFIT
Continuing operations before
exceptional operating costs 6,033 3,894 4,688
Exceptional operating costs (1,318) (851) (2,991)
Discontinued operations - - 589
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OPERATING PROFIT 4,715 3,043 2,286
Amount written off fixed asset investments - - (2,503)
Provision for loss on operations
to be discontinued - - (8,381)
-------- ---------- ---------
PROFIT/(LOSS) BEFORE INTEREST 4,715 3,043 (8,598)
Interest payable and similar charges (6,137) (3,961) (3,896)
-------- ---------- ---------
LOSS BEFORE TAXATION (1,422) (918) (12,494)
TAXATION (271) (175) (250)
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LOSS FOR THE FINANCIAL PERIOD (1,693) (1,093) (12,744)
Preference dividends (1,100) (710) (710)
-------- ---------- ---------
RETAINED LOSS FOR THE
FINANCIAL PERIOD (2,793) (1,803) (13,454)
-------- ---------- ---------
Loss per share (2.3)CENTS (1.5)p (11.3)p
Loss per ADR (4.6)CENTS (3.0)p (22.6)p
-------- ---------- ---------
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</TABLE>
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CONTINUING OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1996
<TABLE>
<CAPTION>
PROFIT BEFORE
INTEREST AND
TOTAL RECURRING EXCEPTIONAL
REVENUE REVENUE ITEMS
1996 1995 1996 1995 1996 1995
L'000 L'000 L'000 L'000 L'000 L'000
<S> <C> <C> <C> <C> <C> <C>
OPERATION
MSS/TSL/SONITROL 54,197 51,425 28,586 27,691 9,779 8,309
MSS EIRE 2,075 1,574 809 875 (234) (463)
TVX 338 277 - - (334) (360)
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TOTAL EUROPE 56,610 53,276 29,395 28,566 9,211 7,486
----------------- ---------------- -----------------
<CAPTION>
$'000 $'000 $'000 $'000 $'000 $'000
API 21,963 23,643 15,039 15,119 2,316 2,872
SONITROL
MANAGEMENT CORP 8,346 8,051 5,852 5,555 1,320 1,426
SONITROL CORP 1,265 1,179 - - 522 560
----------------- ---------------- -----------------
TOTAL USA 31,574 32,873 20,891 20,674 4,158 4,858
----------------- ---------------- -----------------
TOTAL USA IN L'000 20,657 20,677 13,668 13,003 2,722 3,056
----------------- ---------------- -----------------
TOTAL 77,267 73,953 43,063 41,569 11,933 10,542
------ ------ ------ ------ ----- -----
------ ------ ------ ------ ----- -----
</TABLE>
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NOTES RELATING TO 1996 INTERIM RESULTS
1. The accounting policies as set out in the 1995 published accounts
have been applied in compiling the results for the six months to
May 31, 1996.
2. The taxation charge for the half year is based on the forecast charge
for the full year.
3. The directors do not recommend the payment of an interim dividend
(1995: Nil )
4. Earnings per Ordinary share is calculated by dividing the
(loss)/ profit attributable to ordinary shareholders for the six
months to May 31, 1996 amounting to a loss of L4,027,000
(1995 loss: L13,489,000 ) by the weighted average number of Ordinary
shares of 119.6 million in issue during the period.
5. The comparative income statement for the year ended November 30, 1995
is abridged and is therefore not the company's statutory accounts for
that period. Those accounts have been reported on by the company's
auditors and delivered to the Registrar of Companies. The report of
the auditors was unqualified and did not contain a statement under
Section 237(2) or (4) of the Companies Act 1985.
6. This announcement is being sent to all shareholders and copies are
available from the Company Secretary at the registered office The
Clockhouse, The Campus, Hemel Hempstead, Hertfordshire, HP2 7TL.
# # #
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Automated Security (Holdings) PLC
By: _________/s/ PETER BERTRAM________
Peter Bertram
Chief Financial Officer
Date of signing: July 16, 1996
