Interim Results

Rap Group PLC 29 September 2000 Chairman's Statement Financial results The results for the half year to 30 June 2000 show a 17.5% decline in sales to £8.73 million (1999: £10.57 million). This reflects the sale of RAP Conveyors Limited during the period and the continuing contraction of the old core businesses of rubber, safety products and glove distribution. A loss of £1,463,000 (1999: £450,000) was recorded after re-organisation costs of £407,000 and a loss on disposal of £378,000 relating to the sale of the conveyor business. The directors do not propose to pay an interim dividend (1999: nil). Operational review Sales during this period reduced by £1,176,000 due to the sale of RAP Conveyors and the discontinuation of much of the glove business. RAP Conveyors was disposed of for approximately £500,000, excluding the freehold property. Revenues from the old core business of rubber and safety products distribution declined by 16.1%. We have completed a strategic review of the operations and after the half year end closed the loss-making operation in South Wales and consolidated our Middlesborough operation into our branch in Sunderland. The implementation of the new B2B e-commerce facility at Burnley has contributed significantly to the 50% increase in sales of RAP Fixings during the half year. This turnaround reverses the negative sales trend experienced since its purchase in 1995. Sales at the gardening products company, Anderson & Firmin, have suffered a similar decline since 1995. However, this decline has been reduced over the period under review and in September 2000, we launched a new B2B and B2C gardening web site at the Gardening Exhibition at the NEC, as part of our initiatives to revive this business. As reported in the Annual Report, the group purchased Touchline Network Television Limited on 26 June 2000. It was stated in the Annual Report that the group's property at Hamilton, Scotland had been provisionally sold subject to planning permission. I am now able to report that planning permission has been granted and the sale has been completed for a sum of £471,500. The Annual Report also included a statement concerning approaches that had been received from third parties to purchase other parts of the group. These discussions are progressing and the board believes that they will result in the sale of the whole of the rubber, safety and glove business. If, and when, contracts are exchanged, the board will recommend that the company approves this sale at an Extraordinary General Meeting. The disposal of the old core business of the group will remove many of the problems of declining sales over a number of years. The proceeds from these disposals will be used to reduce group indebtedness and provide funds for future development. The rights issue completed on 4 August 2000 and all the 12,825,841 new shares have been issued and approximately £2.3m of funds received. The Board As previously reported, Mr Andy Makeham joined the board on 1 July 2000 as Director of Marketing, e-commerce. Andy joins the company from Kewill Systems plc, a supplier of e-commerce solutions, where he was Sales and Marketing Director of the ERP Division. It is anticipated that John Griffith, Managing Director of Intershop (UK) Limited, a supplier of e-commerce software, will be invited to join the board as a non-executive director in the near future. Prospects Touchline Television has won several contracts and continues to perform well. RAP Fixings has won a further substantial supply contract with a leading DIY retailer and deliveries are planned to commence in January 2001. B2B e- commerce sales from this division now amount to some 80% of its total sales. JA Savage Chairman Consolidated Profit and Loss Account For the six months ended 30 June 2000 Notes Unaudited Unaudited Audited six months six months year to 30 Jun to 30 Jun to 31 Dec 2000 1999 1999 £'000 £'000 £'000 Turnover - continuing operations 8,729 10,573 19,685 _________________________________ Operating loss - continuing 3 operations (1,305) (303) (1,368) Interest payable and similar charges (158) (147) (267) _________________________________ Loss on ordinary activities before taxation (1,463) (450) (1,635) Tax on loss on ordinary activities - - - _________________________________ Loss for the financial period (1,463) (450) (1,635) _________________________________ Loss per share Basic 4 (11.9p) (3.7p) (13.3p) Diluted 4 (11.9p) (3.7p) (13.3p) Basic before exceptional items 4 (5.5p) (2.4p) (7.8p) Statement of Total Recognised Gains and Losses Notes Unaudited Unaudited Audited six months six months year to 30 Jun to 30 Jun to 31 Dec 2000 1999 1999 £'000 £'000 £'000 Retained loss for the period (1,463) (450) (1,635) Unrealised deficit on revaluation of freehold property - (10) (10) _________________________________ Total recognised gains and losses since the last annual report and accounts (1,463) (460) (1,645) _________________________________ Consolidated Balance Sheet As at 30 June 2000 Notes Unaudited Unaudited Unaudited Audited proforma as at as at as at As at 30 Jun 30 Jun 31 Dec 31 Dec 2000 2000 1999 1999 (See note 8) £'000 £'000 £'000 £'000 Fixed assets Intangible assets 96 96 32 28 Tangible assets 2,427 2,577 2,973 2,829 _________________________________________ 2,523 2,673 3,005 2,857 _________________________________________ Current assets Stock 3,170 3,170 4,449 4,538 Debtors 4,252 4,252 5,093 4,795 _________________________________________ 7,422 7,422 9,542 9,333 Creditors: amounts falling due within one year (5,244) (7,594) (7,228) (8,022) _________________________________________ Net current (liabilities) assets 2,178 (172) 2,314 1,311 _________________________________________ Total assets less current (liabilities) assets 4,701 2,501 5,319 4,168 Creditors: amounts falling due after more than one year (55) (55) (489) (360) Provisions for liabilities and charges (473) (473) (319) (482) _________________________________________ Net assets 4,173 1,973 4,511 3,326 _________________________________________ Capital and reserves Called up share capital 1,282 641 616 616 Share premium account 5 6,603 5,344 5,259 5,259 Revaluation reserve 5 449 457 467 462 Profit and loss account 5 (4,161) (4,469) (1,831) (3,011) __________________________________________ Equity shareholders' funds 4,173 1,973 4,511 3,326 __________________________________________ Consolidated cash flow statement For the period ended 30 June 2000 Notes Unaudited Unaudited Audited six months six months year to 30 Jun to 30 Jun to 31 Dec 2000 1999 1999 £'000 £'000 £'000 Net cash (outflow) inflow from operating activities (18) 15 193 Returns on investments and servicing of finance (158) (147) (267) Net capital expenditure and financial investment (23) 20 (94) Acquisitions and disposals 390 - - ______________________________ Cash inflow (outflow) before financing 191 (112) (168) Financing 9 (683) (262) (418) ______________________________ Decrease in cash in the period (492) (374) (586) ______________________________ Notes 1. The summarised results for the six months ended 30 June 2000, which are unaudited, have been prepared in accordance with the accounting policies adopted in the accounts for the year ended 31 December 1999. 2. The figures for the year ended 31 December 1999 have been extracted from the statutory accounts which have been filed with the Registrar of Companies. The audit report was unqualified and did not contain any statement under section 237 (2) and (3) of the Companies Act 1985. 3. The operating loss for the six months ended 30 June 2000 included exceptional costs as summarised below: Unaudited Unaudited Audited six months six months year to 31 to 30 June to 30 June December 2000 1999 1999 £'000 £'000 £'000 Reorganisation and closure Centralisation of group functions - 45 201 Redundancy and closure costs 86 38 160 Reorganisation 135 32 75 Fixed asset write-offs - 20 20 Dilapidations provisions 26 28 28 Provision for legal claims - - 200 Stock write-offs 160 - - Disposal of RAP Conveyors Ltd 378 - - Property realisations - (5) (5) _____________________________ 785 158 679 _____________________________ 4. Earnings per share for the six months ended 30 June 2000 is calculated by dividing the loss attributable to ordinary shareholders of £1,463,000 by the weighted average of the number of ordinary shares in issue during the period of 12,339,577. (For the six months ended 30 June 1999, the loss attributable to shareholders was £450,000 and the number of ordinary shares in issue was 12,325,841. For the year ended 31 December 1999, the loss was £1,635,000 and the weighted average number of ordinary shares in issue was 12,325,841.) 5. Reserves Share Revaluation Profit and Total premium reserve loss account £'000 £'000 £'000 £'000 At 1 January 2000 5,259 462 (3,011) 2,710 Retained loss for the period - - (1,463) (1,463) Issue of new ordinary shares 85 - - 85 Amortisation of revaluation surplus - (5) 5 - ___________________________________________ At 30 June 2000 5,344 457 (4,469) 1,332 ___________________________________________ 6. On 26 June 2000 the company acquired Touchline Network Television Limited, a company specialising in multi-media and e-commerce development, for an initial consideration of 500,000 ordinary shares of 5p each. A further 330,000 ordinary shares of 5p each will be allotted within twelve months of completion should certain profit targets be met by Touchline. 7. Subsequent events a) On 14 July 2000 the rights issue of 12,825,841 shares at 18p raising £2.3 million was approved by the shareholders at an extraordinary general meeting. The proceeds of £1.9 million net of costs were received during July and August. A significant proportion of the proceeds has been used to reduce group indebtedness. b) On 25 September 2000 the sale of the property at 50 Union Street, Hamilton, was completed for £471,500 following the granting of planning permission. The group has decided to relocate the business to its existing premises in Dundee. The proceeds of the sale are to be used to reduce group indebtedness. 8. Unaudited proforma balance sheet The unaudited proforma balance sheet includes the following adjustments to the balance sheet at 30 June 2000 in respect of the subsequent events referred to in note 7 a) and b) above: Unaudited 30 Rights Sale of Unaudited June 2000 issue property proforma at Hamilton 30 June 2000 £'000 £'000 £'000 £'000 Fixed assets 2,673 - (150) 2,523 _________________________________________ Current assets 7,422 - - 7,422 Creditors: amounts falling due within one year (7,594) 1,900 450 (5,244) _________________________________________ Net current assets (172) 1,900 450 2,178 _________________________________________ Total assets less current liabilities 2,501 1,900 300 4,701 Creditors: amounts falling due after more than one year (55) - - (55) Provisions for liabilities and charges (473) - - (473) _________________________________________ Net assets 1,973 1,900 300 4,173 _________________________________________ Capital and reserves 1,973 1,900 300 4,173 _________________________________________ 9. Cash flow statement Included in financing is repayment of the bank loan of £687,000. 10. The above information is being sent to the shareholders and is available from the company's registered office: RAP House, Harrison Street, Briercliffe, Burnley, Lancashire, BB10 2HP.

Companies

K3 Business Technology Group (KBT)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today