FIELD SYSTEMS DESIGNS HOLDINGS PLC - Half-year Report

FIELD SYSTEMS DESIGNS HOLDINGS PLC                                               

INTERIM RESULTS

The Board of Field Systems Designs Holdings plc (FSD), a specialist installation and engineering Group providing mechanical and electrical design and installation services in the water, power, and waste industries, announces its interim results for the six months to 30 November 2020.

OVERVIEW

The results for the first six months of this financial year show significantly reduced turnover and profitability compared to the prior period, reflecting the serious impact of COVID-19 on the release of work in the UK Water Industry.

The consolidated results for the six months to 30 November 2020 show group turnover of GBP5.7million (2019 GBP11.5million) with a group loss after tax of GBP(209,000); (2019 GBP(2,000).

The Water Industry’s sixth Asset Management Programme (AMP6) came to a close in April 2020, and FSD fully engaged itself in refreshing the pre-qualification process as framework plans by water utilities were rolled forward into AMP7. The impact of COVID-19, and conflicts between water utilities and OFWAT in challenging their 2020-2025 expenditure budgets, have caused new orders expected by FSD under AMP7 to be severely delayed.

The unexpected fall in order intake and turnover has created an excess in labour resources which whilst mitigated by the government furlough scheme still placed a heavy cost burden on the group with no productive output in return. This, together with carrying overheads no longer relative to the volume of business, has resulted in heavy losses.   

Gross profit margins from ongoing works fell due to the disruption and additional costs of working under stringent safety rules, the contractual stance adopted by customers struggling with their own projects creating difficulties for FSD in recovering value from variations and programme extensions, and price competition in winning a share of any remaining projects works.

On a positive note whilst FSD could never have predicted the devastation caused by this pandemic, the company has over many years taken steps to ensure the group maintained a healthy balance sheet and so the level of cash in the bank should see the Group through these tough times

OUTLOOK

The anticipated value of new orders in the water sector remains uncertain over the forthcoming year; there are some signs of new AMP7 projects finally being prepared for release after nearly 12 months of stagnation, although the timing of work is difficult to predict.

There remain months of tough trading conditions ahead as this delay in an acceptable level of industry spend continues to hold back contract activity in 2021.

N Billings
Managing Director
28 February 2021

FIELD SYSTEMS DESIGNS HOLDINGS PLC 
UNAUDITED COMPREHENSIVE INCOME STATEMENT
for the six months ended 30 November 2020

NOTES:

1.         The directors of Field Systems Designs Holdings plc accept responsibility for this announcement.

2.         This interim statement has neither been audited, nor reviewed by our auditors, Shipleys LLP.

FIELD SYSTEMS DESIGNS HOLDINGS PLC 
UNAUDITED GROUP STATEMENT OF FINANCIAL POSITION
As at 30 November 2020