Interim Results

RNS Number : 1977T
International Greetings PLC
11 December 2012
 



11th December 2012

International Greetings PLC ("the Company" or "the Group")

Interim Results

 

International Greetings PLC, one of the world's leading designers, innovators and manufacturers of gift packaging and greetings, stationery and creative play products, announces its interim results for the six months ended 30 September 2012.

 

Financial highlights

·            

Sales up 4.5% to £115.2 million (2011 H1: £110.3 million)

·            

Operating profit before exceptional items level at £5.2 million

·            

Profit before tax and exceptional items up 2% to £3.3 million (2011 H1: £3.2 million)

·            

Profit before tax up 19% at £2.5 million (2011 H1: £2.1 million) after exceptional costs of £0.75 million (2011 H1: £1.1 million)

·            

Net debt down £4 million at £84.5 million (2011 H1: £88.5 million)

  

Operational highlights

·            

Double digit sales and profits growth in the US

·            

Continued sales and profit progression in UK/Asia with operational streamlining in the UK

·            

First season in our new manufacturing facility in China completed

·            

Upgraded logistics facilities in Australia including completion of semi-automated systems

·            

Record levels of giftwrap volumes produced supported by new state of the art manufacturing facilities in Holland

·            

Global sales of Everyday single cards on course to grow by over 25% in the UK and USA in the current year

·            

Order book for FY 13/14 well advanced

 

  

Paul Fineman, Chief Executive said:

"During the first half of the year we have focused on completing a number of operational improvements to drive efficiencies including the installation of our new "state of the art" printing press in Holland, our upgraded logistics facilities in Australia and further operational streamlining in the UK. The relocation of our manufacturing operation in China is also complete and by the end of 2012 we will have manufactured a record 65 million Christmas crackers during the year.

"The Group continues to trade profitably in all regions despite challenging market conditions. We remain focused on delivering earnings growth and debt reduction across our diverse geographical portfolio and identifying opportunities for further growth."

 

For further information, please contact:

 

International Greetings plc

Paul Fineman, Chief Executive

Anthony Lawrinson, Chief Financial Officer

 

Tel: 01525 887 310

Cenkos Securities plc

Bobbie Hilliam

Adrian Hargrave

 

Tel: 0207 397 8900

Arden Partners plc

Richard Day

Jamie Cameron

 

Tel: 020 7614 5917

FTI Consulting

Jonathon Brill

Georgina Goodhew

Tel: 020 7831 3113



Chief Executive's Review

Overview

Sales and profit for the six months ended 30th September 2012 are overall in line with expectations.

Operational Review

The first half of this year has featured a number of key operational highlights including the first season of production following the relocation of our manufacturing facilities in China.  Despite initial challenges we completed a substantial amount of the output in the period, with over 65 million Christmas crackers due to be manufactured during 2012.

Profits in the UK and Asia have grown during the period with further operational streamlining within the UK having been achieved. We are also pleased to report that our success in United States has continued to gain momentum with excellent sales and profit growth across all major categories. In this market we continue to see new consumer trends emerging including the increasing popularity of Christmas crackers. Growth of Everyday greeting cards averaged over 25% in these territories.

Record levels of giftwrap volumes continue to be sold, now supported by new high speed state of the art manufacturing equipment which was successfully installed in the Netherlands during the Spring. Whilst the market in continental Europe continues to be particularly challenging, the recent investment made in gift wrap production, amongst other factors, helped to ensure that our operations remained profitable. At Artwrap, our Joint Venture in Australia, we have upgraded logistics facilities including semi-automation in order to increase efficiencies. However, our Joint Venture in Australia is now experiencing some of the macroeconomic market conditions which the Group has successfully managed in recent years in the US, UK and European markets.

Financial Review

Revenue from continuing operations for the period increased by 4.5% to £115.2 million (2011: £110.3 million), with particularly good progress in the UK and USA where sales increased by 4% and 15% respectively. Together these more than compensated for continuing challenges in the European marketplace and signs of slowdown at our Joint Venture in Australia.

 

Inflationary pressures on costs continued with sea freight on average 24% higher than over the equivalent period last year but our efforts succeeded in mitigating this.  Gross profit margins at 18.4% (compared to 19.1% in 2011 and 18.3% in H1 2010) were 0.7% lower as a result of the reducing contribution from our higher margin Australian Joint Venture.

   

At £16.6 million (2011 H1: £16.2 million), overheads as a percentage of sales continued to fall from 14.7% to 14.4%.

 

Operating profit before exceptional costs was flat at £5.2 million (2011 H1: £5.2 million) or up 1.3% at constant exchange rates. Profit before tax and exceptional items was up 2.2% to £3.3 million (2010 H1: £3.2 million) or 4% at constant exchange rates.

 

Profit before tax and after exceptional items was up 19% to £2.5 million (2011 H1: £2.1 million).

 

Finance expenses in the period were £1.9 million (2011 H1: £2.0 million). This overall reduction reflects the full year effect of higher borrowing margins and one-off charges associated with the refinancing and extension of the maturity of our facilities but has been significantly offset by lower debt levels throughout the period.  Shorter dated facilities were renewed in the period for a further year with improved facility headroom and flexibility and the first 0.5% of a series of potential margin reductions was achieved as leverage fell to qualifying levels.  Debt reduction remains a key focus and our programme for this is on-track.

 

The effective underlying tax rate was 26% (2011 H1: 27.5%) reflecting the mix of profits shifting slightly away from the higher tax jurisdictions and also lower UK rates. There are still unrecognised losses with a tax value of $6.2 million in the USA and £0.4 million in the UK which can be reflected in the balance sheet as US profitability progresses.

 

As recently announced and subsequent to the end of the period, a major customer of Artwrap, our Joint Venture in Australia, went into voluntary administration.  This has placed the recoverability of the outstanding debt at risk and AUS$1.2 million has been provided as an exceptional adjusting item in the H1 accounts.  As a result exceptional costs relating to the period were provided at £0.75 million (2011 H1: £1.1 million).  However the effect on earnings will only be impacted by £0.3 million reflecting tax and the minority interest.

 

Stated before exceptional items, basic earnings per share were 3.9p (2011 H1: 3.4p), and 3.4p (2011 H1: 1.8p) after exceptional items. Diluted earnings per share before exceptional items were 3.7p (2011 H1: 3.2p), up 15.6% on the prior year.  See note 6 of the interim financial statements.

 

Capital expenditure in the six months was £1.4 million (2011 H1: £1.4 million). Some surplus land in Wales and machines in Australia were sold in the period generating proceeds of £0.4 million in cash.

 

Cash used by operations was £39.1 million (2011 H1: £39.9 million), which reflects the seasonality of the business as 58% of the sales in the six month period occurred in the last two months.

 

Debtors and receivables at £69.3 million have reduced slightly from £69.4 million at H1 2011 and stock levels actually fell by 5.6% from £64.2 million (H1 2011) to £60.6 million (H1 2012) despite the sales increase of 4.5%.

 

Net debt at 30 September 2012 was down £4.0 million to £84.5 million (2011 H1: £88.5 million).

 

The Board will not be declaring an interim dividend and will keep this policy under review (2011 H1: nil).

 

Current Trading Outlook

Our Group continues to trade profitably in all regions with overall sales growth in the first half of 4.5%. At the same time our debt reduction programme remains on track and we have reduced debt by £4.0 million during the period. Driving strong earning per share growth also remains a core objective and this is underpinned by our encouraging performance in our major markets.

 

Our Joint Venture in Australia is now experiencing some of the macroeconomic market conditions which the Group has successfully managed in recent years in the US, UK and European markets and this may slow the pace of growth to headline profitability but the effect on earnings is much reduced after allowing for tax and the minority interest.

 

Our track record over recent years of prudent investment combined with the provision of innovative and competitive products has enabled us to combat competitive market dynamics across our global customer base. This underlines the importance of creating efficiencies across the Group, leveraging scale and continuing to balance the geography, product category and seasonality of our activities.

 

Paul Fineman

Chief Executive


Consolidated income statement

six months ended 30 September 2012













Unaudited



Unaudited







six months



six months



12 months




ended 30 September



ended 30

September



Ended

March 31



2012

2011

2012

2011

2011

2011

2012

2012

2012


Before

Exceptional


Before

Exceptional


Before

Exceptional



exceptional

items


exceptional

items


exceptional

items



items

(note 10)

Total

items

(note 10)

Total

items

(note [10])

Total


£000

£000

£000

£000

£000

£000

£000

£000

£000

Continuing operations










Revenue

115,207

-

115,207

110,227

-

110,277

220,755

-

220,755

Cost of sales

(94,056)

-

(94,056)

(89,194)

-

(89,194)

(178,190)

-

(178,190)

Gross profit

21,151

-

21,151

21,083

-

21,083

42,565

-

42,565


18.4%


18.4%

19.1%


19.1%

19.3%


19.3%

Selling expenses

(6,723)

(750)

(7,473)

(6,451)

-

(6,451)

(13,003)

-

(13,003)

Administration expenses

(9,849)

-

(9,849)

(9,734)

(1,080)

(10,814)

(19,580)

(3,635)

(23,215)

Other operating income

382

-

382

287

-

287

678

-

678

Profit/(loss) on sales of

property, plant










and equipment

251

-

251

22

-

22

63

(283)

(220)

Operating profit/(loss)

5,212

(750)

4,462

5,207

(1,080)

4,127

10,723

(3,918)

6,805

Finance expenses

(1,929)

-

(1,929)

(1,994)

-

(1,994)

(3,635)

-

(3,635)

Profit/(loss) before tax

3,283

(750)

2,533

3,213

(1,080)

2,133

7,088

(3,918)

3,170

Income tax (charge)/credit

(854)

224

(630)

(884)

222

(662)

(1,948)

195

(1,753)

Profit/(loss) from










continuing operations for the period

2,429

(526)

1,903

2,329

(858)

1,471

5,140

(3,723)

1,417

Attributable to:










Owners of the Parent Company



1,874



993



177

Non-controlling interest



29



478



1,240


Consolidated income statement

six months ended 30 September 2012

Unaudited six months

Unaudited six months


ended 30 September

ended 30 September

12 months ended 31 March

2012

2011

2012

Earnings per ordinary share

Diluted

Basic

Diluted

Basic

Diluted

Basic







3.7p

3.9p

3.2p

3.4p

6.7p

7.2p

Loss per share on exceptional items

(0.5)p

(0.5)p

(1.5)p

(1.6)p

(6.4)p

(6.9p)

3.2p

3.4p

1.7p

1.8p

0.3p

0.3p

Earnings per share

3.2p

3.2p

1.7p

1.8p

0.3p

0.3p

 

Consolidated statement of comprehensive income

six months ended 30 September 2012


Unaudited

Unaudited



six months

six months



ended 30

ended 30

12 months


September

September

ended 31 March


2012

2011

2012


£000

£000

£000

Profit for the year

1,903

1,471

1,417

Other comprehensive income:




Exchange difference on translation of foreign operations

(473)

(155)

(88)

Net (loss)/profit on cash flow hedges (net of tax)

(181)

274

(322)

Other comprehensive income for period, net of tax

(654)

119

(410)

Total comprehensive income for the period, net of tax

1,249

1,590

1,007

Attributable to:




Owners of the Parent Company

1,260

1,018

(475)

Non-controlling interests

(11)

572

1,482


1,249

1,590

1,007


Consolidated statement of changes in equity

six months ended 30 September 2012

 



Share










premium










and capital






Non-



Share

redemption

Merger

Hedging

Translation

Retained

Shareholder

controlling



capital

reserve

reserves

reserves

reserve

earnings

equity

interest

Total


£000

£000

£000

£000

£000

£000

£000

£000

£000

At 31 March 2012

2,750

4,480

17,164

(446)

446

23,410

47,804

4,744

52,548

Profit for the year

-

-

-

-

-

1,874

1,874

29

1,903

Other comprehensive income

-

-

-

(181)

(433)

-

(614)

(40)

  (654)

Total comprehensive income for the year

-

-

-

(181)

(433)

1,874

1,260

 

(11)

1,249

Equity-settled share-based payment

-

-

-

-

-

55

55

-

55

Options exercised

78

159

-

-

-

-

237

-

237

Equity dividends paid

-

-

-

-

-

-

-

(968)

(968)

At 30 September 2012

2,828

4,639

17,164

(627)

13

25,339

49,356

3,765

53,121

 

Consolidated statement of changes in equity

six months ended 30 September 2012

 

For the six months ended 30 September 2011



Share










premium










and capital






Non-



Share

redemption

Merger

Hedging

Translation

Retained

Shareholder

controlling



capital

reserve

reserves

reserves

reserve

earnings

equity

interest

Total


£000

£000

£000

£000

£000

£000

£000

£000

£000

At 1 April 2011

2,698

4,386

17,164

 (124)

 776

23,190

48,090

4,220

52,310

Profit for the period

-

-

-

-

-

 993

 993

 478

 1,471

Other comprehensive income

-

 -

 -

 274

 (249)

-

 25

 94

 119

Total comprehensive income for the year

-

-

-

 274

 (249)

 993

 1,018

 572

 1,590

Equity-settled










share-based payment

-

-

-

 -

-

53

 53

-

 53

Options exercised

14

25

-

-

-

-

39

-

39

Equity dividends paid

-

-

-

-

-

-

-

(958)

(958)

At 30 September 2011

2,712

 4,411

 17,164

 150

 527

 24,236

 49,200

 3,834

53,034

 

Consolidated statement of changes in equity

six months ended 30 September 2012

 

For the year ended 31 March 2012



Share










premium










and capital






Non-



Share

redemption

Merger

Hedging

Translation

Retained

Shareholder

controlling



capital

reserve

reserves

reserves

reserve

earnings

equity

interest

Total


£000

£000

£000

£000

£000

£000

£000

£000

£000

At 1 April 2011

2,698

4,386

17,164

(124)

776

23,190

48,090

4,220

52,310

Profit for the year

-

-

-

-

-

177

177

1,240

1,417

Other comprehensive income

-

-

-

(322)

(330)

-

(652)

242

(410)

Total comprehensive income for the year

-

-

-

(322)

(320)

177

(475)

1,482

1,007

Equity-settled










share-based payment

-

-

-

-

-

43

43

-

43

Options exercised

52

94

-

-

-

-

146

-

146

Equity dividends paid

-

-

-

-

-

-

-

(958)

(958)

At 31 March 2012

2,750

4,480

17,164

(446)

446

23,410

47,804

4,744

52,548

 


Consolidated balance sheet

as at 30 September 2012



Unaudited

Unaudited




as at 30

as at 30

As at



September

September

31 March



2012

2011

 2012


Note

£000

£000

£000

Non-current assets





Property, plant and equipment


30,360

31,130

31,533

Intangible assets


32,502

33,082

32,916

Deferred tax assets


4,159

4,758

4,640

Total non-current assets


67,021

68,970

69,089

Current assets





Inventory


60,615

64,202

42,628

Trade and other receivables


69,289

69,360

20,942

Cash and cash equivalents

4

3,403

1,734

3,168

Total current assets


133,307

135,296

66,738

Total assets


200,328

204,266

135,827

Equity





Share capital


2,828

2,712

2,750

Share premium


3,299

3,071

3,140

Reserves


17,890

19,181

18,504

Retained earnings


25,339

24,236

23,410

Equity attributable to owners of the





Parent Company


49,356

49,200

47,804

Non-controlling interests


3,765

3,834

4,744

Total equity


53,121

53,034

52,548

Non-current liabilities





Loans and borrowings

4

28,854

34,926

33,622

Deferred income


1,604

2,154

1,879

Provisions


899

1,847

1,003

Other financial liabilities


526

355

447

Total non-current liabilities


31,883

39,282

36,951

Current liabilities





Bank overdraft


5,820

5,940

1,945

Loans and borrowings

4

53,199

49,383

9,329

Deferred income


550

550

550

Provisions


172

-

317

Income tax payable


580

585

855

Trade and other payables


45,191

42,324

23,133

Other financial liabilities


9,812

13,168

10,199

Total current liabilities


115,324

111,950

46,328

Total liabilities


147,207

151,232

83,279

Total equity and liabilities


200,328

204,266

135,827

 

Consolidated cash flow statement

six months ended 30 September 2012


Unaudited

Unaudited



six months

six months



ended

ended

12 months


30 September

30

September

ended 31

March


2012

2011

2012


£000

£000

£000

Cash flows from operating activities




Profit for the year

1,903

1,471

1,417

Adjustments for:




Depreciation

1,914

1,951

3,753

Impairment of tangible fixed assets

-

214

-

Amortisation of intangible assets

318

261

534

Finance expenses - continuing operations

1,929

1,994

3,635

Income tax credit - continuing operations

630

662

1,753

(Profit)/loss on sales of property, plant and equipment

(251)

(7)

220

Loss on external sale of intangible fixed assets

1

-

4

Profit on disposal of assets held for resale

-

(15)

(8)

Equity-settled share-based payment

55

53

43

Operating profit after adjustments for non-cash items

6,499

6,584

11,351

Change in trade and other receivables

(48,675)

(48,188)

224

Change in inventory

(18,116)

(18,643)

2,840

Change in trade and other payables

21,754

20,658

(1,799)

Change in provisions and deferred income

(524)

(275)

(1,102)

Cash (used by)/generated from operations

(39,062)

(39,864)

11,514

Tax paid

(452)

(388)

(1,131)

Interest and similar charges paid

(1,757)

(1,628)

(3,491)

Receipts from sales of property for resale

-

528

528

Net cash (outflow)/inflow from operating activities

(41,271)

(41,352)

7,420

Cash flow from investing activities




Proceeds from sale of property, plant and equipment

403

42

122

Acquisition of intangible assets

(88)

(166)

(399)

Acquisition of property, plant and equipment

(1,339)

(1,187)

(4,015)

Net cash outflow from investing activities

(1,024)

(1,311)

(4,292)

Cash flows from financing activities




Proceeds from issue of share capital

237

39

146

Repayment of secured borrowings

(3,504)

(1,118)

(1,473)

Net movement in credit facilities

43,543

11,799

(27,785)

Payment of finance lease liabilities

(37)

(35)

(49)

New bank loans raised

-

30,170

30,170

Loan arrangement fees

(444)

-

(370)

Payment of deferral consideration

-

-

(111)

Dividends paid to non-controlling interests

(968)

(918)

(918)

Net cash inflow/(outflow) from financing activities

38,827

39,937

(390)

Net increase in cash and cash equivalents

(3,468)

(2,726)

2,738

Cash and cash equivalents at end of period

1,223

(1,735)

(1,735)

Effect of exchange rate fluctuations on cash held

(172)

255

220

Cash and cash equivalents at end of the period

(2,417)

(4,206)

1,223

 

 

 

Notes to the interim financial statements

 

1 Accounting policies

Basis of preparation

The financial information contained in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006 and is unaudited.

The Group interim report has been prepared and approved by the Directors in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs"). The financial information for the year ended 31 March 2012 is extracted from the statutory accounts of the Group for that financial year and does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The report of the auditors was (i) unqualified; (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report; and (iii) did not contain a statement under Section 498 (2) of the Companies Act 2006.

Going concern basis

The financial statements have been prepared on the going concern basis. Following the restructure of its principal banking facilities in July 2011 the Group now shows net current assets of £18.0 million (2011 H1: £23.3 million).

The borrowing requirement of the Group increases steadily over the period from July and peaks in September and October, due to the seasonality of the business, as the sales of wrap and crackers are mainly for the Christmas market, before then reducing.

As with any company placing reliance on external entities for financial support, the Directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of this interim report, they have no reason to believe that it will not do so.

After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future.  Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

The interim report does not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 31 March 2012.

Significant accounting policies

The accounting policies adopted in the preparation of the interim report are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 March 2012.

 

2 Segmental information

The Group has one material business activity being the design, manufacture and distribution of gift packaging and greetings, stationery and creative play products.

For management purposes the Group is organised into four geographic business units.

The results below are allocated based on the region in which the businesses are located; this reflects the Group's management and internal reporting structure. The decision was made last year to focus Asia as a service provider of manufacturing and procurement operations, whose main customers are our UK businesses. Both the China factory and the majority of the Hong Kong procurement operations are now overseen by our UK operational management team and we therefore continue to include Asia within the internal reporting of the UK operations, such that UK and Asia comprise an operating segment. The chief operating decision maker is the Board.

Intra-segment pricing is determined on an arm's length basis. Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

Financial performance of each segment is measured on operating profit. Interest expense or revenue and tax are managed on a Group basis and not split between reportable segments.

Segment assets are all non-current and current assets, excluding deferred tax and income tax receivable. Where cash is shown in one segment, which nets under the Group's banking facilities, against overdrafts in other segments, the elimination is shown in the eliminations column. Similarly inter-segment receivables and payables are eliminated.

2 Segmental information continued


UK and Asia

Europe

USA

Australia

Eliminations

Group


£000

£000

£000

£000

£000

£000

Six months ended 30 September 2012







Continuing operations







Revenue    - external

63,527

11,122

27,322

13,236

-

115,207

                  - inter-segment

968

143

-

-

(1,111)

-

Total segment revenue

64,495

11,265

27,322

13,236

(1,111)

115,207

Segment result before

exceptional items

Exceptional items

 

3,277

-

 

488

-

 

1,519

-

 

826

(750)

 

-

-

 

6,110

(750)

Segment result

3,277

488

1,519

76

-

5,360

Central administration costs






(898)

Net finance expenses






(1,929)

Income tax






(630)

Profit from continuing operations for the







six months ended 30 September 2012






1,903

Balances at 30 September 2012







Continuing operations







Segment assets

137,888

23,891

23,225

12,559

2,765

200,328

Segment liabilities

(80,031)

(21,370)

(40,100)

(6,520)

814

(147,207)

Capital expenditure







- property, plant and equipment

405

91

159

684

-

1,339

- intangible

49

8

19

12

-

 

88

Depreciation

1,079

403

342

90

-

1,914

Amortisation

228

28

18

44

-

318

 



 

2 Segmental information continued


UK and Asia

Europe

USA

Australia

Eliminations

Group


£000

£000

£000

£000

£000

£000

Six months ended 30 September 2011







Continuing operations







Revenue - external

59,945

 12,409

 23,764

 14,159

-

 110,277

- inter-segment

1,889

360

-

-

 (2,249)

-

Total segment revenue

61,834

 12,769

 23,764

 14,159

 (2,249)

 110,277

Segment result before exceptional items

3,058

 701

 1,145

 1,405

-

 6,309

Exceptional items

(225)

-

-

-

-

(225)

Segment result

2,833

 701

 1,145

 1,405

-

 6,084

Central administration costs






(1,102)

Central administration exceptional items






(855)

Net finance expenses






(1,994)

Income tax






(662)

Profit from continuing operations for the







six months ended 30 September 2011






1,471

Balances at 30 September 2011







Continuing operations







Segment assets

143,246

24,324

19,158

12,781

4,757

204,266

Segment liabilities

(81,867)

(21,766)

(39,632)

 (7,388)

(579)

(151,232)

Capital expenditure







- property, plant and equipment

232

 746

 147

 62

-

 1,187

- intangible

72

 29

 48

 17

-

 166

Depreciation

1,119

 395

 346

 91

-

 1,951

Amortisation

178

 29

 12

 42

-

 261

Impairment of property, plant and equipment

214

-

-

-

-

 214

 

The six months ended 30 September 2011 comparatives have been amended to reflect revisions to the inter-segment reporting and eliminations between segments.



 

2 Segmental information continued


UK and Asia

Europe

USA

Australia

Eliminations

Group


£000

£000

£000

£000

£000

£000

Year ended 31 March 2012







Continuing operations







Revenue - external

117,007

29,147

45,044

29,557

-

220,755

- inter-segment

4,746

1,009

-

-

(5,755)

-

Total segment revenue

121,753

30,156

45,044

29,557

(5,755)

220,755

Segment result before exceptional items







and discontinued operations

4,089

1,712

3,248

3,613

-

12,662

Exceptional items

(3,068)

-

-

-

-

(3,068)

Segment result

1,021

1,712

3,248

3,613

-

9,594

Central administration costs






(1,939)

Central administration exceptional items






(850)

Net finance expenses






(3,635)

Income tax






(1,753)

Profit from continuing operations year







ended 31 March 2012






1,417

Balances at 31 March 2012







Continuing operations







Segment assets

97,100

16,885

6,224

11,317

4,301

135,827

Segment liabilities

(40,562)

(13,950)

(25,029)

(3,222)

(516)

(83,279)

Capital expenditure







- property, plant and equipment

1,185

2,437

331

62

-

4,015

- intangible

263

30

87

19

-

399

Depreciation

2,135

742

696

180

-

3,753

Amortisation

368

57

24

85

-

534


3 Exceptional items

 


6 months

ended 30

September

2012

£000

6 months

ended 30

September

2011

£000

12 months

ended 31

March

2012

£000

Restructuring of operational activities




Bad debt provision (note a)

750

-

-

Redundancies (note b)

-

855

1,201

Impairment of leasehold land and buildings in China

(note c)

-

225

283

China factory move (note d)

-

-

2,434

Total restructuring costs

750

1,080

3,918

Income tax credit

(224)

(222)

(1,951)


526

858

3,723

 

   (a)     Provision for debtor now in voluntary administration relating to our Joint Venture in Australia

   (b)     Redundancies relate to the termination costs of key executives who left the business following a review of Board responsibilities and as a result of business re-organisation in the UK subsidiaries

   (c)     Loss on disposal of leasehold land and buildings in China as a result of the decision to move the China factory

   (d)     Costs associated with moving the China factory

 

4 Cash, loans and borrowing


6 months

6 months

12 months


ended 30 September

ended 30 September

ended 31 March


2012

2011

2012


£000

£000

£000

Secured bank loan (short term)

(4,685)

(3,918)

(3,974)

Secured bank loan (long term)

(29,340)

(34,926)

(33,880)

Asset backed loans

(30,860)

(36,811)

(5,467)

Revolving credit facilities

(17,839)

(8,654)

-

Loan arrangement fees

671

-

370

Total loans

(82,053)

(84,309)

(42,951)

Cash and bank deposits

3,403

1,734

3,168

Bank overdraft

(5,820)

(5,940)

(1,945)

Cash and cash equivalents per cash flow statement

(2,417)

(4,206)

1,223

Net debt used in the Chief Executive's Review

(84,470)

(88,515)

(41,728)

 

5 Taxation


Six months

Six months

12 months


ended 30

ended 30

ended 31


September

September

March


2012

2011

2012


£000

£000

£000

Current tax expenses




Current income tax charge

(149)

(825)

(1,789)

Deferred tax expense




Relating to original and reversal of temporary differences

(481)

163

36

Total tax in income statement

(630)

(662)

(1,753)

 

Taxation for the six months ended 30 September 2012 is based on the effective rate of taxation, which is estimated to apply in each country for the year ended 31 March 2013.

 

6 Earnings per share


As at

As at

As at


30 September 2012

30 September 2011

31 March 2012


Diluted

Basic

Diluted

Basic

Diluted

Basic

Adjusted earnings per share excluding







exceptional items

3.7p

3.9p

3.2p

3.4p

6.7p

7.2p

Loss per share on exceptional items

(0.5)p

(0.5)p

(1.5)p

(1.6)p

(6.4)p

(6.9p)

Earnings per share from continuing operations

3.2p

3.4p

1.7p

1.8p

0.3p

0.3p

Earnings per share

3.2p

3.4p

1.7p

1.8p

0.3p

0.3p

 

The basic earnings per share is based on the profit attributable to equity holders of the Parent Company of £1,874,000 (2011: £993,000) and the weighted average number of ordinary shares in issue of 55,799,000 (2011: 54,103,000) calculated as follows:


September

September

March

Weighted average number of shares in thousands of shares

2012

2011

2012

Issued ordinary shares at 1 April

55,007

53,967

53,967

Shares issued in respect of exercising of share options

792

136

239

Weighted average number of shares at end of the period

55,799

54,103

54,206

 

Total number of options, over 5p ordinary shares, in issue at 30 September 2012 was 3,451,956.

Adjusted basic earnings per share excludes exceptional items charged of £375,000 (2011: £1,080,000) being the share of our Joint Venture attributable to shareholders, along with the tax relief attributable to those items of £112,000 (2011: £222,000).  This gives an adjusted profit of £2,137,000 (2011: £1,851,000).


This information is provided by RNS
The company news service from the London Stock Exchange
 
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