Interim Results

Worthington Group PLC 28 November 2003 WORTHINGTON GROUP PLC INTERIM RESULTS - 6 MONTHS ENDED 30 SEPTEMBER 2003 Chairman's Statement Little has changed since we reported to you last with the Annual Report, the Group is now in a transitional period pending a merger or acquisition. The unaudited results now reported are below our expectations. Worthington Manufacturing in Macclesfield, our only remaining trading subsidiary, achieved a break-even although this was less than budget. However we expect a modest improvement in their fortunes in the second half of the year. This activity is under review because the capital employed in the business requires a better return than we are currently experiencing, and discussions are underway as to how to improve their future profitability. In common with most remaining textile operations in the UK, there is a need to become more competitive so as to preserve the home market. We therefore have to identify overseas partners to provide a strategic link-up to maintain market share at competitive prices. Overall, the Group made a trading loss of £165,000, in addition to which there is £155,000 of losses arising from the closure and merger of Armitage Finishing plus further pension costs of £150,000. Conversely, there is a net credit of £100,000 being our share of the results of associated undertakings, according to the application of FRS9. These results also make provision for certain arguable items of expenditure incurred in previous years. Our cash position has significantly improved with the only real borrowings associated with the newly built property at Macclesfield. Contracts are being exchanged for the sale of the property at Selkirk for £350,000. The majority of the Keighley site still remains vacant but we are currently receiving enquiries from prospective tenants and when fully let the site will provide a valuable source of income for the Group. We are still actively pursuing ideas and propositions to change the direction of the Group but so far, very little has been appealing and we can afford to take our time so as to be certain to add shareholder value. J C DWEK, CBE Chairman 27 November, 2003 Enquiries: Worthington Group plc J.C. Dwek Tel: 01625 549082 T.R. Roberts Tel: 01625 660056 Consolidated Profit and Loss Account for the six months ended 30 September 2003 Unaudited Unaudited Audited 6 months ended 6 months ended Year ended 30 September 30 September 31 March 2003 2002 2003 £'000 £'000 £'000 Turnover: continuing operations 4,750 5,782 10,943 discontinued operations 543 1,887 2,580 5,293 7,669 13,523 Trading Loss Continuing operations (before exceptionals) (315) (64) (506) Exceptional items - - 1,688 Discontinued operations (before exceptionals) (79) (212) (405) Exceptional items (76) - (334) Operating (loss)/profit (470) (276) 443 Share of profits of associated undertakings 100 66 238 Profit/(loss) on disposal of fixed assets - - (7) Losses on disposal of discontinued operations - (79) - (Loss)/profit before interest (370) (289) 674 Net interest (payable)/receivable and similar items (59) 57 (68) (Loss)/profit before taxation (429) (232) 606 Taxation 4 - (63) (Loss)/profit on ordinary activities after taxation (425) (232) 543 Dividends paid and proposed - - - Retained (loss)/profit (425) (232) 543 (Loss)/earnings per share - before exceptional items and disposals (0.3p) (0.1p) (0.7p) - after exceptional items and disposals (0.4p) (0.2p) 0.5p Recognised gains and losses There are no recognised gains or losses in the half year ended 30 September 2003, other than those shown in the above profit and loss account. Consolidated Balance Sheet at 30 September 2003 Unaudited Unaudited Audited 30 September 30 September 31 March 2003 2002 2003 £'000 £'000 £'000 Fixed assets Negative goodwill (24) (52) (48) Tangible assets 6,562 7,322 6,754 Unlisted investments - 27 - Interest in associated undertaking 798 720 785 7,336 8,017 7,491 Current assets Stock 886 1,423 883 Debtors: amounts falling due within one year 2,384 2,959 6,810 Debtors: amounts falling due after more than one year 894 893 935 Cash at bank and in hand 2 1 2 4,166 5,276 8,630 Creditors: amounts falling due within one year (2,265) (6,102) (6,297) Net current assets/(liabilities) 1,901 (826) 2,333 Total assets less current liabilities 9,237 7,191 9,824 Creditors: amounts falling due after more than one year (1,696) - (1,858) Net assets 7,541 7,191 7,966 Capital and reserves Called up share capital 11,807 11,807 11,807 Share premium account 9,836 9,836 9,836 Capital reserves 128 128 128 Revaluation reserve 285 285 285 Profit and loss account (14,515) (14,865) (14,090) Shareholders' funds 7,541 7,191 7,966 Consolidated Cash Flow Statement for the six months ended 30 September 2003 Unaudited Unaudited Audited 6 months ended 6 months ended Year ended 30 September 30 September 31 March 2003 2002 2003 £'000 £'000 £'000 Net cash inflow/(outflow) from operating activities 1,010 (902) (341) Dividends from associates 66 44 44 Returns on investments and servicing of finance (39) 57 (24) Taxation 40 199 199 Capital expenditure and financial investment (75) (286) 327 Acquisitions and disposals (35) *560 - Net cash inflow/(outflow) before financing 967 (328) 205 Financing (163) (151) 1,197 Increase/(decrease) in cash in the period 804 (479) 1,402 Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash in the period 804 (479) 1,402 Cash outflow/(inflow) from debt and finance leases 163 151 (1,197) Movement in net debt 967 (328) 205 Net debt 1 April (3,105) (3,310) (3,310) Net debt 30 September/3l March (2,138) (3,638) (3,105) Reconciliation of operating profit/(loss) to net cash flow from operating activities Operating (loss)/profit (470) (276) 443 Closure costs on termination of trading activities - (79) - Depreciation and amortisation 243 312 843 (Increase)/decrease in stocks (3) 389 929 Decrease/(increase) in debtors 4,467 914 (2,979) (Decrease)/increase in creditors (3,227) (2,162) 423 Net cash inflow/(outflow) from operating activities 1,010 (902) (341) * This amount in respect of fixed asset disposals was included within capital expenditure at the year end. Notes to the Interim Statement 1. The interim accounts have been prepared on the basis of accounting policies set out in the Group's financial statements for the year ended 31 March 2003. The interim accounts were approved by the Board on 27 November 2003 and are unaudited. Comparative figures for the half year ended 30 September 2002 are extracts from the interim accounts for that period, are also unaudited and have been restated to reflect discontinued activities in the current period. Comparative figures for the year ended 31 March 2003 have been extracted from the financial statements, which have been filed with the Registrar of Companies. These were audited and reported upon without qualification by KPMG Audit Plc and did not contain any statement under section 237 of the Companies Act 1985. They have been restated to reflect discontinued activities in the current period. 2. Continuing operations for the half-year include additional contributions of £150,000 to the Jerome Retirement Benefit Scheme. 3. The taxation charge is calculated by applying the directors' best estimate of the annual tax rate to the profit for the period. 4. (Loss)/earnings per share is calculated by reference to the average number of shares in issue in the period, amounting to 118,070,163 shares (six months to 30 September 2002: 118,070,163 shares) and on a loss after taxation of £425,000 (six months to 30 September 2002: loss of £232,000). 5. Copies of this report and the last annual report and accounts are available from The Secretary, Worthington Group plc, Fence Avenue, Macclesfield, Cheshire, SK10 1LW. This information is provided by RNS The company news service from the London Stock Exchange

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