23 September 2003
Interim Report 2003
Consolidated Profit & Loss Account for the six months ended 30 June
Notes 2003 2002 2002
£'000 (a) Half Half Full
year year year
Group turnover 15,308 16,263 32,768
EBITDA (b) 345 667 969
Depreciation (349) (282) (652)
Goodwill amortisation (2002 full year includes £430,000 (94) (111) (640)
for impairment of goodwill)
Operating (loss)/profit (98) 274 (323)
Interest payable (174) (200) (252)
(Loss)/profit before taxation (272) 74 (575)
Taxation - (28) (104)
(Loss)/profit on ordinary activities after taxation (272) 46 (679)
Minority interests - (20) (19)
(Loss)/profit after taxation attributable to Willington (272) 26 (698)
(Loss)/profit before taxation by business class
Storage (156) 95 139
Distribution (116) (21) (714)
(272) 74 (575)
Headline (loss)/earnings per share (basic) (c) (2.10)p 1.61p (0.68)p
(Loss)/earnings per share (basic) (c) (3.20)p 0.31p (8.21)p
Consolidated Balance Sheet
2003 2002 2002
£'000 Half Half Full
year year year
Fixed assets 7,070 8,771 7,312
Net current assets 682 1,214 583
Total assets less current liabilities 7,752 9,985 7,895
Creditors due in more than one year (986) (785) (862)
6,766 9,200 7,033
Provisions for liabilities and charges (91) (88) (86)
Net assets 6,675 9,112 6,947
Shareholders' funds 6,675 7,666 6,947
Minority interests - 1,446 -
Total capital employed 6,675 9,112 6,947
a) The unaudited interim results for the 26 week period ended 30 June 2003
do not constitute statutory accounts for the purposes of Section 240 of the
Companies Act 1985 and have been prepared adopting a basis and policies
consistent with those contained in the 2002 Annual Report and Accounts. The
columns headed '2002 Full year' consists of figures extracted from the audited
accounts for the financial year ended 31 December 2002, but do not themselves
constitute audited accounts.
b) EBITDA means earnings before interest, taxation, depreciation and
amortisation (including impairment).
c) Earnings per ordinary share are calculated on the basis of 8,504,171
ordinary shares in issue and earnings attributable to ordinary shareholders.
There is no difference in earnings for the calculation of diluted earnings per
share. Headline earnings per ordinary share represent earnings before deduction
of amortised goodwill.
d) Copies of this interim report are being sent to all shareholders and
are available from the company's registered office at Third Floor, 40/42
Osnaburgh Street, London NW1 3ND.
The group recorded a profit before interest, tax, depreciation and goodwill
(EBITDA) for the period of £345,000 (2002 £667,000) and a loss on ordinary
activities before tax of £272,000 (2002 profit £74,000). The results of both
divisions were affected by adverse market conditions and the lower turnover, as
compared with the first six months of last year, reflected this general trend.
In the storage division, our bulk liquids operations remained profitable and
cold storage achieved a similar result to the corresponding period last year
despite a further significant increase in insurance costs. During the early
months of 2003 our container business suffered from the major industry-wide
decline in storage volumes which, combined with exceptional costs incurred to
reduce operating overheads, resulted in a substantial loss for the period and
adversely affected the overall results of the division.
In the distribution division, our German chemicals business remained profitable,
albeit at a much reduced level reflecting weak market conditions. In the UK,
revenues from our chemicals business in the period were higher than in the
second half of 2002 but margins remained under pressure. The more stable market
conditions in our rubber distribution business during the period meant that a
better performance was achieved as compared with the second half of 2002. In
overall terms the results for the division represented an improvement over the
second half of 2002.
Better results from our bulk liquids and cold storage operations are expected
for the remainder of the year providing current trends are maintained and
reasonable volumes of seasonal cold storage business are forthcoming. We hope to
obtain some additional sources of revenue to offset overheads in our container
operations but until we are successful in this area the performance of this
business remains a concern.
The chemical industry in the UK and Europe continues to experience weak demand.
As a consequence we expect the results from our UK and German operations for the
remainder of the year to be broadly in line with first half performance although
we may derive some benefit from the recently acquired distribution of certain
new products in the UK.
Our previously announced withdrawal from rubber trading is progressing
satisfactorily and is expected to be largely complete by the end of year. The
cash released will be utilised to reduce group borrowings.
Since trading conditions continue to be difficult, the directors do not propose
an interim dividend payment.
R M Robinow
23 September 2003
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