Final Results - Year Ended 31 December 1999
Caldwell Investments PLC
2 May 2000
CALDWELL TAKES THE PAIN AND MOVES ON FROM PROBLEMS
OF MANUFACTURING FOR 'OWN BRAND' CUSTOMER
Resultant Exceptional Costs Create A £635,623 Loss
Ninaclip Plc Fastening System Subsidiary To Be Floated Separately
Shareholders To Receive Preferential Treatment
New Opportunities Being Reviewed By Group
Sound Balance Sheet And Cash At Year End
Caldwell Investments Plc hopes to float separately - 'on a preferential basis
to existing shareholders' - its promising Ninaclip Plc subsidiary, developers
of the patented fastening system which is looking beyond the nursery products
market, says chairman Mr Stanley Wootliff.
Reporting today on calendar 1999 results he states that Caldwell suffered
from the problems affecting some High Street stores groups and took the
'difficult and costly' decision to withdraw from the manufacture of 'own
brand' products for a major retailer. The losses incurred in discontinuing
production at two units, together with their ancillary services, fixed assets
and stock losses associated with withdrawal from major product areas,
amounted to £741,732. 'These losses more than account for our total loss
for the year', he says.
Caldwell's pre-tax loss for 1999 was £635,623 after total exceptional items
of £744,188. The figure compares to a £87,131 pre-tax loss (including
exceptionals of £220,988) in 1998.
'The benefit for the future is that we have now extricated ourselves from an
unprofitable major retailer and more than replaced the lost sales with new UK
and overseas customers and retaken control and ownership of the Ninaclip
brand.'
NEW OPPORTUNITIES BEING REVIEWED
Mr. Wootliff says that with Ninaclip floated: 'In going forward, Caldwell has
a strong balance sheet, a good cash position and two sound and profitable non-
fashion underwear businesses. Your Board continues to review a number of
opportunities which have been brought to its attention and will keep
shareholders informed appropriately'.
/2
CALDWELL INVESTMENTS 2
A separate listing should enable Ninaclip to broaden its present range of
nursery accessories as well as developing a variety of new applications for
the company's unique fastening device.
Mr. Wootliff comments: 'The Board continues to regard the Ninaclip as having
considerable potential. However, despite the funds raised by the Group last
year, it is clear that further exploitation of the product will require
greater resources than Caldwell will have available in the foreseeable
future. Accordingly, it has been decided that this young technology company
should have a separate market quote and most appropriately one that attracts
EIS (Enterprise Investment Scheme) tax relief.
'It is therefore our intention to explore the possibilities of separately
floating Ninaclip Plc in the summer, retaining a substantial minority
interest and giving existing Caldwell shareholders the opportunity to
participate on a preferential basis. The development and marketing budget
has been prepared, appropriate to the scale of potential business.'
RESULTS ALSO HIT BY STRENGTH OF STERLING
Caldwell's financial results for 1999 were also adversely affected by the
strength of the pound. Caldwell's German subsidiary 'produced record sales
and good profits locally,' but these were cut substantially when translated
into sterling after an effective 13.5p.c. devaluation of the Deutschmark.
Withdrawal from the High Street customer and subsequent closures enabled
Caldwell to put up for sale its manufacturing facility at Oldham, Lancashire.
Mr Wootliff says this should generate about £250,000 net cash and
substantially reduce the group's gearing.
Turnover from continuing operations last year was £7.2m (1998: £8.1m). As
indicated at the time of the October rights issue no final dividend is
recommended (1998: 0.8p). Equity shareholders' net assets fell from 24.8p
to 18.4p per share.
The annual report will be posted next week.
Annual General Meeting - Leeds, Monday 5th June.
Further information:
Stanley Wootliff, Chairman, Caldwell Investments Plc
0113 235 0632
John Greenhalgh, City of London PR Ltd
020 7628 5518
CALDWELL INVESTMENTS P.L.C.
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 1999
Contin Discont Total Contin Discont Total
uing inued 1999 uing inued 1998
1999 1999 1998 1998
£ £ £ £ £ £
Turnover 7,210,786 2,659,430 9,870,216 8,097,354 4,241,342 12,338,696
Cost of
sales (5,729,899) (2,335,097)(8,064,996) (6,495,933) (3,793,471) (10,289,404)
1,480,887 324,333 1,805,220 1,601,421 447,871 2,049,292
Gross
Profit
Dist-
ribution
costs (171,792) (76,110) (247,902) (245,135) (121,226) (366,361)
Adminis-
tration
expenses (979,568) (324,853)(1,304,421) (1,106,262) (331,677) (1,437,939)
Other
operating
income
60,150 - 60,150 145,291 - 145,291
Except-
ional
items - (630,763) (630,763) - (220,988) (220,988)
Operating
profit/
(loss) 389,677 (707,393) (317,716) 395,315 (226,020) 169,295
Share of
associates'
operating
loss (1,765) (12,384)
Loss on
disposal of
fixed assets
-continuing
operations (79,086) - - -
-discontinued
operations (34,339) - - -
Net interest
payable (202,717) (244,042)
Loss on
ordinary
activities
before
taxation (635,623) (87,131)
Tax on loss
on ordinary
activities (40,133) 40,540
Loss on
ordinary
activities
after
taxation (675,756) (46,591)
Equity
minority
interest
4,877 (5,880)
Loss for
the
financial
year (670,879) (52,471)
Equity
dividends
paid and
proposed (46,878) (135,118)
Retained
loss for
the
financial
year (717,757) (187,589)
Earnings
per
share
-Basic and
diuted (5.53p) (0.46)p
No consolidated note of historical cost profits and losses is presented as
there is no material difference between the loss for the financial year as
stated and the loss for the financial year on a historical cost basis.
CALDWELL INVESTMENTS P.L.C.
GROUP AND COMPANY BALANCE SHEET
AS AT 31 DECEMBER 1999
GROUP COMPANY
1999 1998 1999 1998
£ £ £ £
Fixed assets
Intangible assets 344,327 302,073 216,369 143,820
Tangible assets 1,286,407 1,353,879 974,340 991,549
Investments - 79,086 1,786,152 1,865,238
1,630,734 1,735,038 2,976,861 3,000,607
Current assets
Stocks 2,137,232 2,971,368 - -
Debtors falling
due within one
year 1,425,675 2,065,512 87,824 440,116
Debtors falling
due after more
than one year - - 460,834 460,834
Cash at bank and
in hand 1,169,128 584,765 573,090 30,818
4,732,035 5,621,645 1,121,748 931,768
Creditors:
amounts falling
due within one
year (2,921,405) (3,519,803) (156,899) (535,228)
Net current
assets 1,810,630 2,101,842 964,849 396,540
Total assets
less current
liabilities 3,441,364 3,836,880 3,941,710 3,397,147
Creditors:
amounts falling
due after more
than one year (843,402) (1,023,786) (479,379) (534,361)
Provisions for
liabilities and
charges (7,765) (25,150) - (16,902)
Net assets 2,590,197 2,787,944 3,462,331 2,845,884
Capital and
reserves
Called up share
capital 1,378,750 1,103,000 1,378,750 1,103,000
Share premium
accoun 1,620,302 1,272,871 1,620,302 1,272,871
Revaluation
reserve 191,734 196,873 191,734 196,873
Capital
redemption
reserve 27,000 27,000 27,000 27,000
Profit and
loss account (675,881) 135,031 244,545 246,140
Equity
shareholders'
funds 2,541,905 2,734,775 3,462,331 2,845,884
Equity minority
interest 48,292 53,169 - -
Total capital
and reserves 2,590,197 2,787,944 3,462,331 2,845,884
CALDWELL INVESTMENTS P.L.C.
CONSOLIDATED CASH FLOW STATEMENT
AS AT 31 DECEMBER 1999
1999 1998
£ £
Net cash inflow /(outflow) from operating activities
526,074 (192,006)
Returns on investments and servicing of finance
Interest received 15,386 27,926
Interest paid (218,102) (271,968)
Net cash outflow (202,716) (244,042)
Taxation
Tax paid (39,775) (82,777)
Net cash outflow (39,775) (82,777)
Capital expenditure and financial investment
Purchase of intangible fixed assets (86,042) (54,231)
Purchase of tangible fixed assets (127,363) (238,456)
Sale of tangible fixed assets - 30,771
Net cash outflow (213,405) (261,916)
Acquisitions and disposals
Purchase of subsidiary undertakings and associates - (18,305)
Sale of subsidiary undertaking - 232,852
Net cash disposed of with subsidiary undertaking - (83,563)
Net cash inflow - 130,984
Equity dividends paid (135,118) (135,118)
Net cash outflow before financing (64,940) (784,875)
Financing
Issue of shares 623,181 -
New loan finance - 25,000
Repayment of loans (172,564) (49,899)
Capital element of finance lease payments (12,803) (15,031)
Net cash inflow/outflow 437,814 (39,930)
Increase/(Decrease) in cash in the year 372,874 (824,805)
Notes:
1. The financial information set out above does not comprise the company's
statutory accounts. The auditors have not reported on the accounts for
the year ended 31 December 1999 nor have any such accounts been delivered
to the Registrar of Companies. Statutory accounts for 1998 have been
delivered to the Registrar of Companies.
2. The calculation of basic and diluted earnings per share is based on the
loss for the financial year of £670,879 (1998: £52,471) and a weighted
average number of ordinary shares of 12,120,912 (1998: 11,471,200).
The calculations of basic and diluted earnings per share for 1998 have
been restated in order to reflect the effect of the rights issue in
October 1999.
4. The 1999 Report and Accounts will be posted to shareholders on 9th May
2000.
2nd May 2000
Latest directors dealings
- 35 minutes ago Henderson High Income Trust
- 1 hour ago Essentra
- 1 hour ago Hargreaves Services
- 1 hour ago Sydbank A/S Sydbank Ord Shs
- 1 hour ago EDX Medical Group Plc