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Yorkshire Group PLC (YOR)

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Tuesday 04 September, 2001

Yorkshire Group PLC

Interim Results

Yorkshire Group PLC
4 September 2001

Yorkshire Group Plc


                                                  4 September, 2001



INTERIM RESULTS - SIX MONTHS TO 30 JUNE, 2001

KEY FEATURES


  * Difficult market conditions prevail.

  * Sales of £65.9 m down from £75.4 m in 2000.

  * Profit before tax of £0.8 m down from £4.2 m before exceptionals in
    2000.

  * Strategic restructuring on course.

  * Prospects for 2002 significantly more encouraging.

Commenting on the results, Sid Taylor, the Chairman of the Company stated:

'The results for the six months to 30 June, 2001 are disappointing and
highlight the extent to which the previously reported US slowdown has also
impacted the European and Asia Pacific markets, especially where customers
export to the US.

The market conditions noted in the trading statement of 13 July still prevail
and there are at present no immediate signs that there will be any
improvements within our market place during the remainder of 2001. As a
result, it is still expected that group full year profit before tax in 2001
will be around break even.

The directors believe that the restructuring actions taken this year will
materially benefit the group during 2002 and are therefore confident that the
group's prospects for 2002 are significantly more encouraging. '

For further information, please contact:
Yorkshire Group plc

Andrew J Dick, Chief Executive                    Tel: 0113 2443111
Citigate Dewe Rogerson
David Nolder                                      Tel: 020 7638 9571



CHAIRMAN'S STATEMENT

INTERIM RESULTS - SIX MONTHS TO 30 JUNE, 2001



TRADING RESULTS

The results for the six months to 30 June, 2001 are disappointing and
highlight the extent to which the previously reported US slowdown has also
impacted the European and Asia Pacific markets, especially where customers
export to the US.

Sales in the first half of 2001 were £65.9 m compared to £75.4 m in the
comparative period of 2000.

Group operating profit of £2.3 m was below the results for the first half of
2000 of £5.4 m. This was mainly as a consequence of the reduced sales.

Interest costs of £1.5 m were £0.2 m higher than the comparative period of
last year due to higher borrowings, partially offset by lower interest rates.

Group profit before tax for the half year to 30 June, 2001 was £0.8 m compared
with £4.2 m before exceptionals in the first half of 2000.



EUROPE

The performance of our European business benefited from the integration of
sales operations and lower costs arising from previous cost reduction and
efficiency programmes.

Market conditions resulted in lower co-manufacturer sales, in addition to
which we withdrew from some low margin commodity business. Whilst this reduced
sales, it had the effect of improving the overall margin percentage.

AMERICAS

Our American business felt the full brunt of the economic slowdown and we
acted aggressively in April to reduce further its cost base. Some US customers
are forecasting a slight increase in activity in the second half, if only to
replenish supply pipelines. This is being offset by the continued closures and
transfer of production to low cost countries.

Brazil continues to show year on year growth albeit from a small base.

ASIA PACIFIC

The appointment earlier in the year of Volker Steidel as managing director in
Asia Pacific was an important step in the group's drive for an increased
presence in the major region of textile growth.

Additionally, extra resources were allocated to the region's sales team whilst
the business of the group's Indonesian distributor was purchased and
successfully integrated into the group's operations.

The lower operating profit of £0.3 m in the half year to 30 June, 2001
compared with the previous year of £0.6 m was due to the investment in these
extra resources which should reap rewards in 2002.

STRATEGIC RESTRUCTURING

The strategic restructuring programme continues with major reductions in the
group's cost base during 2001 which the directors believe will show
significant benefits from 2002 onwards.

The group's plant in Greece closed on 8 June, 2001 and the plant in Belgium
will close at the end of September. The products from these sites will either
be outsourced or transferred to our plants in the UK and France.

The remaining supply agreement in the US was successfully terminated ahead of
schedule at the end of July and the products will now be manufactured within
the group or outsourced.

BALANCE SHEET

Net borrowings of £31.1 m showed an increase of £11 m in the half year to 30
June, 2001, of which £4.8 m related to restructuring capital expenditure and
costs.

The strategic stock of £3.3 m that was built to allow the group to close the
two European plants and exit the US supply agreement will reduce during the
second half of 2001.

DIVIDENDS

As acknowledged in the trading statement issued on 13 July, 2001, as long as
the timing of the recovery remains uncertain, the directors feel that it would
be imprudent to declare an interim dividend. The situation will be reassessed
at the full year with respect to the final dividend.

BOARD CHANGES

Sadly, Stevan Fowler, Group Finance Director, left the Company on 31 August,
2001 to pursue his career outside the chemical industry.

Stevan has played a key role in shaping Yorkshire for the future and in
securing the acquisition of the Crompton dyes business. I would like to take
this opportunity on behalf of the Board of Directors to thank Stevan for his
valuable contribution and to wish him well in his future career.

An interim finance manager, has assumed Stevan's responsibilities until a
permanent replacement is appointed.

PROSPECTS

The market conditions noted in the trading statement of 13 July still prevail
and there are at present no immediate signs that there will be any
improvements within our market place during the remainder of 2001. As a
result, it is still expected that group full year profit before tax in 2001
will be around break even.

The directors believe that the restructuring actions taken this year will
materially benefit the group during 2002 and are therefore confident that the
group's prospects for 2002 are significantly more encouraging.



Sid Taylor

Chairman

4 September, 2001
Yorkshire Group plc



GROUP PROFIT AND LOSS ACCOUNT

FOR THE HALF-YEAR ENDED 30TH JUNE 2001
                                                     First     First      Full
                                                      half      half      year
                                             Note     2001      2000      2000
                                                     £'000     £'000     £'000
Turnover : continuing                           2   65,859    75,387   143,441
operations
Operating profit : continuing                   3    2,260     5,436     9,600
operations
Exceptional income                                       -     6,342     7,476
Profit on ordinary activities                        2,260    11,778    17,076
before interest
Net interest                                       (1,485)   (1,255)   (2,725)
Profit on ordinary activities                          775    10,523    14,351
before taxation
Tax on profit on ordinary                       4    (240)   (3,262)   (3,221)
activities
Profit on ordinary activities                          535     7,261    11,130
after taxation
Minority interest - equity                            (35)      (30)      (25)
Profit for the period                                  500     7,231    11,105
Dividends on equity shares :  interim                    -     (785)     (785)
                              ordinary
                              final ordinary             -         -   (1,569)
Transfer to reserves                                   500     6,446     8,751
Earnings per ordinary share                     5
before exceptional items                              1.2p      5.4p      9.0p
exceptional items less                              (0.2)p      8.5p     12.2p
attributable tax
Earnings per ordinary share                           1.0p     13.9p     21.2p



Yorkshire Group plc

GROUP BALANCE SHEETS AT 30TH JUNE 2001
                                                 30th June  30th June  31st Dec
                                                      2001       2000      2000
                                                     £'000      £'000     £'000
Fixed assets
Intangible assets                                    5,513      2,561     5,072
Tangible assets                                     48,233     46,153    47,662
Investments                                             23         23        23
                                                    53,769     48,737    52,757
Current assets
Stocks                                              54,275     49,412    52,446
Debtors                                             36,963     38,474    32,517
Cash at bank and in hand                             4,480      7,538     8,155
                                                    95,718     95,424    93,118
Current liabilities
Creditors-amounts falling due within one year     (46,037)   (35,030)  (37,381)
Net current assets                                  49,681     60,394    55,737
Total assets less current liabilities              103,450    109,131   108,494
Creditors-amounts falling due after more than     (14,412)   (18,775)  (16,360)
one year
Provisions for liabilities and charges            (12,554)   (16,613)  (16,214)
Net assets                                          76,484     73,743    75,920

Capital and reserves
Called up ordinary share capital                    13,076     13,076    13,076
Share premium account                               26,760     26,760    26,760
Revaluation reserve                                    550        550       550
Capital redemption reserve                             300        300       300
Profit and loss account                             35,284     32,830    34,723
Equity shareholders' funds                          75,970     73,516    75,409
Minority interest                                      514        227       511
Total capital employed                              76,484     73,743    75,920



Yorkshire Group plc

CONSOLIDATED CASHFLOW STATEMENT FOR THE HALF-YEAR ENDED 30TH JUNE 2001

                                                    First      First      Full
                                                     half       half      year
                                           Note      2001       2000      2000
                                                    £'000      £'000     £'000
Net cash (outflow) / inflow from           6(i)   (1,436)        170     6,573
operating activities
Returns on investments and servicing of   6(ii)   (1,361)    (1,241)   (2,431)
finance
Taxation                                            (347)       (83)   (1,337)
Capital expenditure and financial             6   (3,945)      5,516     3,633
investment                                (iii)
Acquisitions and disposals                6(iv)     (232)    (1,623)   (2,573)
Equity dividends paid                             (1,569)    (1,398)   (2,182)
Net cash (outflow)/ inflow before                 (8,890)      1,341     1,683
management of liquid resources and
finacing
Financing                                  6(v)     5,536          -        99
(Decrease) / increase in cash in the              (3,354)      1,341     1,782
period
Reconciliation of net cash flow
to movement in net funds
(Decrease)/ increase in cash in the               (3,354)      1,341     1,782
period
Cash inflow from increase in debt                 (5,536)          -      (88)
Change in funds resulting from cash flows         (8,890)      1,341     1,694
Borrowings of businesses acquired                       -          -      (11)
Translation differences                           (2,072)    (1,858)   (2,219)
Movement in net funds                            (10,962)      (517)     (536)
Opening net funds                                (20,133)   (19,597)  (19,597)
Closing net funds                                (31,095)   (20,114)  (20,133)



Yorkshire Group plc

OTHER FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30TH JUNE 2001

                                             First half  First half  Full year
                                                   2001        2000       2000
                                                  £'000       £'000      £'000
Statement of total recognised gains and
losses
Profit for the period                               500       7,231     11,105
Currency translation differences on foreign
currency
net investments                                      61       1,839      1,427
Total gains and losses recognised in the            561       9,070     12,532
period
Historical cost profits
There is no material difference between
historical cost
profits and those reported in the profit
and loss account.
Reconciliation of movements in
shareholders' funds
Profit for the period                               500       7,231     11,105
Dividends                                             -       (785)    (2,354)
                                                    500       6,446      8,751
Currency translation differences on foreign
currency
net investments                                      61       1,839      1,427
Net change in shareholders' funds in the            561       8,285     10,178
period
Opening shareholders' funds                      75,409      65,231     65,231
Closing shareholders' funds                      75,970      73,516     75,409


Yorkshire Group plc


NOTES TO THE INTERIM FINANCIAL STATEMENTS

1. Preparation of the interim financial statements

The interim financial statements, which have not been audited or reviewed by
the auditors, have been prepared on the basis of the accounting policies set
out in the group's 2000 statutory accounts. The statements were approved by the
board of directors on 4th September 2001. The financial information set out
above does not comprise statutory accounts within the meaning of the Companies
Act 1985.

The abridged financial information for 2000 is based on the statutory accounts
for that year, on which the auditors have given an unqualified report under
S235 Companies Act 1985 which did not contain a statement under S237 (2) or (3)
of the Act, and which have been filed with the Registrar of Companies.




2. Group turnover                             First half  First half  Full year
Turnover represents sales by group companies        2001        2000       2000
After eliminating intra-group transactions.        £'000       £'000      £'000
Geographical destination analysis of turnover
Continental Europe                                22,721      26,977     49,661
Asia                                               6,651       6,407     13,551
Australasia                                          688         837      1,910
North and South America                           31,778      36,075     69,326
Africa and the Middle East                         1,680       1,841      3,143
                                                  63,518      72,137    137,591
U.K.                                               2,341       3,250      5,850
Total turnover                                    65,859      75,387    143,441
Divisional analysis of group turnover
Europe                                            33,648      37,544     70,868
Asia                                               6,592       6,910     13,862
Americas                                          31,716      36,344     69,334
                                                  71,956      80,798    154,064
Inter-divisional elimination                     (6,097)     (5,411)   (10,623)
Total turnover                                    65,859      75,387    143,441
3. Group operating profit by division
Europe                                             1,312         438      2,026
Asia                                                 278         567        903
Americas                                           1,570       4,991      7,541
Group services                                     (788)       (575)    (1,159)
                                                   2,372       5,421      9,311
Other (expense) / income                           (112)          15        289
Group operating profit                             2,260       5,436      9,600

The divisional analysis set out in notes 2. and 3. above reflect the new
management reporting structure of the group. The results for Asia include Hong
Kong, Australia , Indonesia and direct sales which were previously incorporated
in the Eurasian results. Comparative figures for 2000 have been restated
accordingly.


4. Tax on profit on ordinary activities First half     First half     Full year
                                              2001           2000          2000
                                             £'000          £'000         £'000
UK corporation tax
Current tax on income for the period             -          2,109           741
Adjustments in respect of prior years      (1,400)              -           129
                                           (1,400)          2,109           870
Overseas tax
Current tax on income for the period         1,640          1,153         1,970
Adjustments in respect of prior years            -              -           381
                                             1,640          1,153         2,351
Total tax charged                              240          3,262         3,221
Charge in respect of exceptional items
Included above:                                122          1,903         1,065


5. Earnings per ordinary share

These have been calculated on earnings of £622,000 (2000 : £2,822,000) and
earnings after exceptionals of £500,000 (2000 : £7,231,000).

The weighted average number of ordinary shares of 25p each in issue during the
six months was 52,303,337 (2000 : 52,303,337). Diluted earnings per share have
been calculated for 2001 and 2000 under FRS14 and no dilution arises in either
period.

6.    Analysis of cash flows for headings netted      First     First      Full
      in the cash flow statement                       half      half      year
                                                       2001      2000      2000
                                                      £'000     £'000     £'000
6(i)  Net cash (outflow) / inflow from operating
      activities
      Operating profit before exceptional items       2,260     5,436     9,600
      Fundamental reorganisation costs              (1,851)   (1,087)   (2,311)
      Depreciation of tangible fixed assets           2,115     2,391     3,935
      Amortisation of intangible assets                 127        60       201
      Profit on sale of fixed assets                    (4)       (7)      (25)
      Increase in stock                               (697)   (2,162)   (6,375)
      (Increase) / decrease in debtors              (4,073)   (2,174)     6,192
      Increase/(decrease) in creditors                  687   (2,287)   (4,644)
                                                    (1,436)       170     6,573


      Movements in stock, debtors, and creditors
      do not

      correspond to the changes in balance sheet
      amounts

      due to the effect of retranslating the
      opening net assets

      of overseas subsidiaries at closing
      exchange rates.
6(ii) Returns on investments and servicing of
      finance
      Interest received                                 185        89       467
      Interest paid                                 (1,546)   (1,330)   (2,898)
                                                    (1,361)   (1,241)   (2,431)
6     Capital expenditure and financial
(iii) investment
      Purchase of tangible fixed assets             (3,990)     (959)   (4,063)
      Sale of tangible fixed assets                      45        15       220
      Exceptional income:
      Compensation received for restriction on            -     6,460     6,460
      the right to use land
      Cash received on disposal of Spanish                -         -     1,016
      property
                                                    (3,945)     5,516     3,633
6(iv) Purchase of subsidiary undertakings
      Cash paid in the period relating to
      expenses for 1999
      acquisition of the Crompton dyes business           -     1,623     1,719
      Consideration including expenses paid in
      the
      period in respect of 2000 acquisitions             31         -       854
      Consideration including expenses paid in
      the
      period relating to the acquisition of the
      Indonesian distributor's business                 201         -         -
      Total cash paid in respect of acquisitions        232     1,623     2,573

6(v)  Financing
      New bank loans                                  8,349         -     5,378
      Repayment of loans                            (2,813)         -   (5,279)
                                                      5,536         -        99