Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

Armour Group PLC (AMR)

  Print      Mail a friend       Annual reports

Tuesday 23 November, 2010

Armour Group PLC

Preliminary Results

RNS Number : 6412W
Armour Group PLC
23 November 2010
 



 

ARMOUR GROUP PLC

 ("Armour" or the "Group")

Preliminary Results for the year ended 31 August 2010

 

 

FINANCIAL HEADLINES

§ Sales £56.6 million (2009: £51.6 million).

§ EBITDA* of £2.8 million (2009: £3.0 million).

§ Profit after taxation £0.9 million (2009: £0.9 million).

§ Basic earnings per ordinary share 1.4p (2009: 1.4p).

§ Cash generated from operations of £1.8 million (2009: £7.2 million).

§ Net debt £5.7 million (2009: £4.9 million).

 

* EBITDA is defined as profit before interest, taxation, depreciation, amortisation and share-based payments.

 

 

George Dexter, Chief Executive of Armour Group plc commented:

 

"I am very pleased that we have increased our sales by 10% this year, despite the continuing uncertainty in sales volumes from month to month. Sales in the first four months of the year were very encouraging but weakened in January, due to the poor weather, and July after the football World Cup. Predicting demand has proved difficult for both us and our customers.

 

Our growth has come from a number of areas which includes continued development of our operations in Asia and Scandinavia and the benefit of new products. Armour Auto sales into the agricultural and commercial vehicle channel increased by 17%, the office furniture initiative contributed sales of over £2 million and new products including QTV2 and QED Profile, were introduced through Armour Home's retail channel.

 

We have experienced continued pressure on margins due to weaker sales mix, continuing sales price competition and promotional activity which also includes the launch of products through trade shows and subsequent marketing.

 

We are continuing to deliver on new initiatives and the fundamentals of the Group remain sound. Nonetheless, the economic outlook remains unpredictable and challenging, particularly for the first half of the new-year. Consequently, the Group management have an ongoing operational review looking at all aspects of our business and how it can be streamlined with regard to reducing cost and improving efficiency."   

 

 

 

For further information please contact:

 

Armour Group plc                                                                                Tel: 01892 502700

George Dexter, Chief Executive              

John Harris, Finance Director

 

FinnCap, Nominated Adviser and Broker                                            Tel: 0207 600 1658

Geoff Nash

Stephen Norcross (Sales)

 

Threadneedle Communications, Financial PR                                    Tel: 020 7653 9850

Trevor Bass, Alex White



ARMOUR GROUP PLC

 ("Armour" or the "Group")

Preliminary Results for the year ended 31 August 2010

 

CHAIRMAN'S STATEMENT

 

The turbulence emanating from the uncertain economic environment has again had a major impact on the Group's performance in the year 31 August 2010. Whilst it is pleasing to report that the Group sales increased to £56.6 million (2009: £51.6 million), it is disappointing to report that the profit from operations fell to £1.2 million (2009: £1.5 million). Basic earnings per ordinary share were 1.4p (2009: 1.4p). No dividend is proposed for the year (2009: 0.30p per ordinary share). The Group's net debt at 31 August 2010 was £5.7 million (2009: £4.9 million).

 

Despite the UK moving out of recession in the latter part of 2009, the trading environment has remained volatile and the Group's results reflect this uncertainty and the testing environment.

 

The Group enjoyed a period of strong sales in the run up to Christmas 2009, but experienced weak sales during the poor weather in January and immediately after the football World Cup in July. Managing our operations in such an uncertain climate is difficult, particularly where our customers themselves are struggling to predict buying patterns. 

 

The sales growth achieved by the Group in the year has been encouraging given the economic backdrop. This growth has come from across the Group and reflects investments made during 2009 in products, operations and new sales channels. In Asia and Scandinavia, our businesses grew significantly on the back of the expansion of their respective sales operations; our successful entry into the office furniture market in 2010 contributed over £2 million to sales; our automotive sales through the agricultural and commercial vehicle channel also benefited from an improvement in market conditions and reported a year on year sales increase of 17%; and new products such as QTV2 and our new cable range QED Profile helped grow sales in the home retail channel.

 

Despite the sales growth, our profit margins have come under pressure from a weaker sales mix, additional promotional activity and continuing competitive price pressure. We have responded to these pressures through taking responsible and appropriate action to control our cost base and target lowering the purchase cost of products from our suppliers. 

 

The core fundamentals of strong brands, quality products, unrivalled distribution and excellent customer service all remain true, with our key proprietary brands continuing to dominate their respective niches in the UK. 

 

The Group employs over 300 people in the UK, Ireland, Sweden and Hong Kong. It is thanks to their hard work, dedication and professionalism that the Group continues to be successful in these challenging times. I would like to acknowledge the Board's appreciation of their commitment and effort over the course of the year.

 

The Group has recently set up a manufacturing facility in northern China in response to a number of opportunities initiated by key customers. Whilst this initiative is in its early stages, the response from our customers has been encouraging.

 

The economic outlook remains uncertain and challenging in the near term in our core UK markets.  Whilst there are opportunities for the Group to grow over the coming year, the Board remains cautious with regard to the short term prospects, with the indications being that the first half of the new financial year will be below the prior year. The Group management have an ongoing operational review looking at all aspects of our business and how it can be streamlined with regard to reducing cost and improving efficiency. The Board has confidence that this review, the sales effort in our core brands and the new manufacturing facility in China will put us in a good position for growth when markets recover.  

 

BOB MORTON

Chairman

23 November 2010



 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 August 2010

 

 


 

Note

31 August

2010

£000

31 August

2009

£000

Revenue

2

56,591

51,614





Changes in inventory of finished goods and work in progress


(1,057)

(1,060)

Raw materials and consumables


(33,559)

(29,095)

Employee benefits costs


(9,756)

(9,487)

Depreciation and amortisation expense


(1,573)

(1,413)

Other expenses


(9,474)

(9,031)

Total expenses


(55,419)

(50,086)

Profit from operations


1,172

1,528

Finance expense


(233)

(409)

Finance income


8

17

Share of loss of associated undertakings


-

(16)

Profit before taxation

2

947

1,120

Taxation expense

3

(68)

(234)

Profit for the year


879





Other Comprehensive Income

 



Exchange gains/(losses) on translation of foreign operations

 

19

(5)

Total Other Comprehensive Income

 

19

(5)

Total Comprehensive Income for the year

 

898

881





Earnings per ordinary share

4



Basic


1.4p

1.4p

Diluted


1.4p

1.4p

 

 

 



 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 August 2010

 

 


 

Note

31 August

2010

£000

31 August

2009

£000





Non-current assets




Goodwill


21,084

21,084

Other intangible assets


4,319

3,112

Property, plant and equipment


1,829

2,044

Investment in associated undertakings


-

352

Total non-current assets


27,232





Current assets




Inventories


10,653

11,681

Trade and other receivables


9,523

9,876

Cash and cash equivalents


397

72

Total current assets


20,573

Total assets

2

47,805









Current liabilities




Bank overdrafts and borrowings


(5,613)

(3,521)

Trade and other payables


(10,392)

(12,465)

Corporation taxation liability


(182)

(580)

Provisions


(132)

(95)

Total current liabilities


(16,319)

(16,661)





Non-current liabilities




Borrowings


(480)

(1,438)

Provisions


-

(141)

Deferred taxation liability


(946)

(656)

Total non-current liabilities


(1,426)

(2,235)

Total liabilities

2

(17,745)

(18,896)

Total net assets

2

30,060

















Equity




Share capital


6,848

6,848

Share premium


8,513

8,513

Other reserves


871

871

Retained earnings


14,318

13,602

Translation reserve


82

63

Share trust reserve


(572)

(572)

Total equity


30,060

 



 

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

For the years ended 31 August 2010

 

 

 

 


Share

capital

Share

premium

Other

reserves

Retained

earnings

Translation

reserve

Share trust

reserve

Total

equity


£000

£000

£000

£000

£000

£000

£000









At 1 September 2008

6,848

8,513

871

13,074

68

(572)

28,802









Total Comprehensive Income

-

-

-

886

(5)

-

881

Share-based payments

-

-

-

65

-

-

65

Dividend paid

-

-

-

(423)

-

-

(423)









At 31 August 2009

6,848

8,513

871

13,602

63

(572)

29,325









Total Comprehensive Income

-

-

-

879

19

-

898

Share-based payments

-

-

-

32

-

-

32

Dividend paid

-

-

-

(195)

-

-

(195)









At 31 August 2010

6,848

8,513

871

14,318

82

(572)

30,060

 

 

 



 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 August 2010

 

 


 

Note

31 August

2010

£000

31 August

2009

£000





Cash flow from operating activities




Cash generated from operations

6

1,818

7,171

Income taxes (paid)/recovered


(178)

156

Net cash from operating activities


1,640





Investing activities




Acquisition of subsidiary undertaking, net of cash acquired


-

(2)

Purchase of property, plant and equipment


(401)

(604)

Sale of property, plant and equipment


36

40

Expenditure on intangible assets


(1,684)

(1,853)

Interest received


8

17

Net cash used in investing activities


(2,041)

(2,402)





Financing activities




Dividend paid


(195)

(423)

Repayment of bank loans


(1,000)

(720)

Interest paid


(196)

(475)

Net cash used in financing activities


(1,391)

(1,618)

Net (decrease)/ increase in cash, cash equivalents and bank overdrafts

7

  (1,792)

3,307

Currency variations on cash, cash equivalents and bank overdrafts


23

(6)

Cash, cash equivalents and bank overdrafts at the start of the year


(2,491)

(5,792)

Cash, cash equivalents and bank overdrafts at the end of the year


(4,260)

(2,491)

 

 

 

  

1.      Accounting Policies

Basis of preparation

 

The Group's Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively "IFRS") issued by the International Accounting Standards Board as adopted by the European Union ("Adopted IFRS") and with those parts of the Companies Act 2006 applicable to companies preparing their financial statements under IFRS.

 

While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of IFRS, this announcement does not itself contain sufficient information to comply with IFRS. The Group expects to publish full financial statements that comply with IFRS in December 2010.

 

As a result of the application of Amendments to IAS 1 Presentation of Financial Statements: A Revised Presentation the Group has elected to present a single Consolidated Statement of Comprehensive Income. Previously the Group presented an income statement only, with movements in other comprehensive income recognised as part of total recognised income and expense in the Consolidated Statement of Changes in Shareholders' Equity. In addition, certain primary statement titles have changed in order to align with the terms used in IAS 1. The Amendment does not change the recognition or measurement of transactions and balances in the financial statements.

 

The Group has changed its presentation of segment information in accordance with Operating Segments IFRS 8.

 

2.    Segment Information

 

The Group operates in the following main business segments:

 

Armour Auto:                       The design, manufacture and supply of products for the in-car communications and entertainment market.

 

Armour Home:                     The design, manufacture and supply of products into the Hi-Fi, home theatre, home entertainment and office furniture markets.

 

Central operations:            The provision of finance and support services, including future product concepts and Hong Kong based quality control, to the other business segments within the Group and the sale of Armour Auto and Armour Home products to the Asian markets.

 

These segments are considered on the basis of different products and services. The accounting policies of the operating segments are the same as those described in the accounting policies in note 1.

 

 

Year ended 31 August 2010

Armour

Auto

£000

Armour

Home

£000

Central

operations

£000

 

Total

£000

Revenue

13,252

42,794

545

56,591

Profit/(loss) before taxation

122

1,942

(1,117)

947

Balance Sheet





Assets

11,235

21,696

14,874

47,805

Liabilities

(3,680)

(9,274)

(4,791)

(17,745)

Net Assets

7,555

12,422

10,083

30,060

Other





Additions to non-current assets

350

1,724

11

2,085

Finance Expense

(19)

(11)

(203)

(233)

Finance Income

5

3

-

8

Taxation expense

(16)

(252)

200

(68)

Depreciation

178

403

15

596

Amortisation of intangible assets

213

762

2

977

Share-based payments

4

25

3

32

 

 

 

 

 

2.    Segment Information (continued)

 

 

 

Year ended 31 August 2009

Armour

Auto

£000

Armour

Home

£000

Central

operations

£000

 

Total

£000

Revenue

13,092

38,522

-

51,614

Profit/(loss) before taxation

71

3,327

(2,278)

1,120

Balance Sheet





Assets

7,891

18,691

21,639

48,221

Liabilities

(2,166)

(5,756)

(10,974)

(18,896)

Net Assets

5,725

12,935

10,665

29,325

Other





Additions to non-current assets

699

1,756

2

2,457

Investment in associates

-

-

352

352

Share of loss in associate

-

-

(16)

(16)

Finance Expense

-

(20)

(389)

(409)

Finance Income

5

12

-

17

Taxation expense

37

(295)

24

(234)

Depreciation

213

404

14

631

Amortisation of intangible assets

224

557

1

782

Share-based payments

7

52

6

65

 

 

 

 

 

Geographical information

 


Revenue by location

of customers

Total non-current assets by location


2010

£000

2009

£000

2010

£000

2009

£000

United Kingdom

45,077

41,851

27,214

26,576

Sweden

1,927

1,603

10

10

Hong Kong

1,785

2,074

8

6

France

1,461

1,025

-

-

Other Countries

6,341

5,061

-

-


56,591

51,614

27,232

26,592

 

 

 

 

3.    Taxation Expense

 


31 August

2010

£000

31 August

2009

£000

Current taxation expense



UK Corporation Tax on profit for the year

-

(119)

Adjustment in respect of prior years

261

61

Income taxation of overseas operations

(42)

(40)

Total current taxation expense

219

(98)

Deferred taxation expense



UK operations

(70)

(104)

Adjustment in respect of prior years

(228)

(36)

Overseas operations

11

4

Total deferred taxation expense

(287)

(136)

Total taxation expense

(68)

(234)

 

The taxation assessed for the year is lower (31 August 2009: Lower) than the standard rate of UK Corporation Tax. The differences are explained below:


31 August

2010

£000

31 August

2009

£000

Profit on ordinary activities before taxation

947

1,120

Profit multiplied by the rate of UK corporation tax of 28% (2009: 28%)

(265)

(314)

Effects of:



Expenses not deductible for taxation purposes

(31)

(51)

Taxation credits

189

105

Lower taxation rates on overseas profit and marginal relief

6

1

Adjustments in respect of prior years

33

25

Total taxation expense

(68)

(234)

 

 

4.    Earnings per Ordinary Share

Basic earnings per ordinary share are calculated using the weighted average number of ordinary shares in issue during the financial year of 65,056,067 (31 August 2009: 65,056,067). Diluted earnings per ordinary share are calculated with reference to 65,056,067 (31 August 2009: 65,056,067) ordinary shares. The effect of the exercise of options on the weighted average number of ordinary shares in issue is Nil (31 August 2009: Nil).

 

At 31 August 2010, the Armour Employees' Share Trust held 3,424,000 (31 August 2009: 3,424,000) ordinary shares. The weighted average number of ordinary shares held by the Armour Employees' Share Trust during the year of 3,424,000 (31 August 2009: 3,424,000) are not included in either the weighted average, or diluted weighted average, ordinary shares in issue during the financial year.

 

Underlying earnings per ordinary share are also shown calculated by reference to earnings before share-based payments. The Directors consider that this gives a useful additional indication of underlying performance. It should be noted that the term "underlying" is not defined under IFRS and may not therefore be comparable with similarly titled profit measures reported by other entities.

 


31 August 2010

31 August 2009


 

£000

Basic

p

Diluted

p

 

£000

Basic

p

Diluted

p

Profit for the year

879

1.4

1.4

886

1.4

1.4

Share-based payments

32

-

-

65

0.1

0.1

Underlying earnings

911

1.4

1.4

951

1.5

1.5

 

 

 

5.    Dividend

 

 


31 August

2010

£000

31 August

2009

£000

Proposed dividend for the year of Nil (31 August 2009: 0.30p) per ordinary share

-

(195)

 

The Board has not recommended a final dividend for the year ended 31st August 2010. The dividend proposed in the financial statements as at 31 August 2009, and approved by shareholders at the Annual General Meeting held on 28 January 2010, was charged to reserves and paid during the year.

 

 

6.    Net Cash Inflow from Operations

 


31 August

2010

£000

31 August

2009

£000




Profit from operations

1,172

1,528

Depreciation of property, plant and equipment

596

631

Amortisation of intangible assets

977

782

Share-based payments

32

65

EBITDA*

2,777

3,006

Gain on sale of property, plant and equipment and fair value adjustments

(165)

(9)

Decrease in inventories

1,028

1,145

Decrease in trade and other receivables

353

344

(Decrease)/increase in trade, other payables and provisions

(2,175)

2,685

Net cash from operations

1,818

7,171

 

* EBITDA is defined as profit before interest, taxation, depreciation, amortisation and share-based payments.

 

 

7.    Reconciliation of Net Cash Flow to Movement in Net Debt

Net debt incorporates the Group's borrowings, bank overdrafts and obligations under finance leases, less cash and cash equivalents. A reconciliation of the movement in the net debt from the beginning to the end of the year is shown below:

 


31 August

2010

£000

31 August

2009

£000




Net (decrease)/increase in cash, cash equivalents and bank overdrafts

(1,792)

3,307

Net cash outflow from debt and lease financing

1,000

720

Other non-cash movements

(17)

(40)

(Increase)/decrease in net debt

(809)

3,987

Opening net debt

(4,887)

(8,874)

Closing net debt

(5,696)

(4,887)

 

 

 

 

 

 

 

8.    Publication of non-statutory accounts

The financial information set out in this preliminary announcement does not constitute the Group's financial statements for the year ended 31 August 2010 and the year ended 31 August 2009.

 

The financial statements for the year ended 31 August 2009 were prepared in accordance with Adopted IFRS and have been delivered to the Registrar of Companies. The financial statements for the year ended 31 August 2010 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The auditors' report on both accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain statements under sections 498(2) or (3) of the Companies Act 2006.

 

The full audited financial statements of Armour Group plc for the period ended 31 August 2010 are expected to be posted to shareholders no later than 31 December 2010 and will be available to the public at the Company's registered office, Lonsdale House, 7-9 Lonsdale Gardens, Tunbridge Wells Kent, TN1 1NU and available to view on the Company's website at www.armourgroup.uk.com from that date.

 

 

 

9.    Annual General Meeting

The Annual General Meeting will be held in early 2011 and shareholders will be notified by the Company in due course.

 

 

 



 

 

ABOUT ARMOUR

 

Armour Group is the United Kingdom's leading consumer electronics group within the home and in-car communications and entertainment markets, committed to designing, manufacturing and distributing leading-edge audio and visual products and solutions.

 

Armour Group has two principal operating divisions, Armour Home and Armour Auto, and employs over 300 people across seven operating sites in the UK, Scandinavia and Hong Kong.

 

The Group possesses a strong brand portfolio, including more than 6,000 products and accessories, which is underpinned by innovative product development and investment in proprietary technology.

 

An unrivalled distribution capability ensures that products are supplied direct to more than 6,000 retail outlets within the UK and to customers in 68 countries worldwide. Armour Group is also a leading supplier of audio and visual technology to a host of non-retail customers including vehicle manufacturers, hotel chains, house builders and custom installers.

 

The Group's strength is based on 5 fundamentals:

 

·      Strong recognised brands

·      Quality product portfolio

·      Structured programme of product innovation

·      Unrivalled distribution into the UK's retail electronics market

·      First class customer service

 

 


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