A difficult year for Lloyd's Register Chairman announces
results for 2002/3
Uncertain first-half economic conditions affected the operating
performance of the Lloyd's Register Group in the year to June 2003.
Key results were:
- income from continuing operations down by 0.3% to £327.2
million
(2002: £328.1 million)
- a loss before tax of £6.5 million (2002: profit of £32.6
million)
- Marine income down by 11.2%
- continued growth in Management Systems and Energy &
Transportation businesses.
The Group faced difficult trading conditions in its major marine
market which led to a shortfall in income of £20 million, almost
entirely due to fewer periodic surveys in the first half of the
year. Periodic survey activity increased significantly in the
second half of the year to the budgeted level, but did not
compensate for the first-half shortfall.
A change to the past accounting treatment of work in progress
was made. This one-off revaluation was unconnected with the trading
position but resulted in a charge of £14.4 million to the accounts.
Other costs relating to the implementation of the JD Edwards
accounting system and the post-September 11th impact on insurance
premiums moved the Group's costs adversely by a further £11.5
million.
These negative effects were encouragingly offset by improvements
in both the Management Systems and Energy & Transportation
businesses where average growth exceeded 8.5%.
Executive Chairman David Moorhouse comments: "After two
excellent years of progress in the Lloyd's Register Group, I am
very disappointed to report results of this kind, even allowing for
the significant, but necessary, one-off adjustment of
work-in-progress. Nevertheless, I am confident that both the
underlying trading position and the strength of the Group's balance
sheet remain very positive."
Ends
Notes to editors
- A full copy of the Chairman's report on the accounts for the
year ended June 30, 2003 is attached.
- Lloyd's Register is an independent risk management
organisation. The Lloyd's Register Group works to help improve its
clients' quality, safety, environmental and business performance
throughout the world. Its expertise and activities cover shipping,
railways, other land-based industries, and oil and gas. It develops
products and services through three business streams: Marine;
Energy & Transportation and Management Systems (Lloyd's
Register Quality Assurance). The Lloyd's Register Group delivers
these products and services worldwide to its clients through a
network of entities, including: Lloyd's Register Asia; Lloyd's
Register EMEA (Europe, the Middle East and Africa); Lloyd's
Register North America, Inc.; and Lloyd's Register Central and
South America Limited.
For more information
Michael Franklin
Corporate Communications
Lloyd's Register
Tel: +44 (0)20 7423 2713
Fax: +44 (0)20 7423 2028
Email:
michael.franklin@lr.org
Supporting documents
Chairman's report to the year end June 30,
2003
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Group.
Lloyd's Register, Lloyd's Register EMEA and Lloyd's Register Asia
are exempt charities under the UK Charities Act 1993.