Half-Year Results
Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Monday, 9 November 2009
Victoria PLC
("Victoria" or "the Group")
Manufacturer and distributor of carpets and floorcoverings,
supplying the mid to high end residential market and contract sector internationally
Half-year Results in line with the Board's expectations
|
|
26 weeks
ended
3.10.09
|
26 weeks
ended
27.9.08
|
|
Revenue
|
£30.17m
|
£32.71m
|
|
Group operating profit
|
£0.52m
|
£1.64m
|
|
Pre-tax profit
|
£0.20m
|
£1.28m
|
|
Earnings per share-basic
|
1.86p
|
13.02p
|
|
Interim dividend
|
2.60p
|
4.00p
|
Highlights
-
The Group has been strongly cash generative, enabling net debt to be significantly reduced by £1.96 million to £9.47 million. As a result net gearing is 21.4% at the half-year
-
Strong balance sheet, good headroom to support planned working capital requirements
-
Australian and UK operations remain profitable, but adverse market conditions have impacted performances in Ireland and Canada
-
Group investment in new products should benefit second half and underpin future growth
"…The global recession has continued to impact the trading landscape in all of the geographies in which the Group operates.
"…We remain focused on optimising the full potential of each business and winning further market share. The Board remains confident that the Group will continue to weather the economic conditions well, and despite ongoing uncertain times, we hope to see an improved performance in the seasonally stronger second half of this financial year.
"Looking beyond this, Victoria is very well positioned so that when recovery in the markets does occur, the business is in good shape to move quickly to exploit and benefit fully from improved conditions both at home and overseas."
Alexander Anton, Chairman
FULL STATEMENT ATTACHED
|
Enquiries: |
|
|
Victoria PLC |
Citigate Dewe Rogerson |
|
Alan Bullock, Group Managing Director |
Fiona Tooley, Director |
|
Mobile: +44 (0) 7785 325701 |
Mobile: +44 (0) 7785 703523 |
|
Ian Davies, Group Finance Director |
Keith Gabriel, Senior Account Manager |
|
Mobile: +44 (0) 7770 638791 |
Mobile+ 44 (0) 7770 788624 |
|
Office: +44 (0) 1562 749300 |
Office: +44 (0) 121 362 4035 |
|
|
Worcester Road, Kidderminster, Worcestershire DY10 1JR England
Telephone: +44 (0)1562 749300 Fax: +44 (0)1562 749649
Registered in England No. 282204
-2-
Victoria PLC
Half-year Results for the six months ended 3 October 2009
CHAIRMAN'S STATEMENT
Overview
As previously flagged at the time of the AGM in July, the Group's first half-year, which is seasonally the weaker of the two halves, has proven to be extremely challenging. The global recession has continued to impact the trading landscape in all of the geographies in which the Group operates.
I am therefore pleased to report that although the pre-tax profit achieved is modest, it is in line with the Board's expectations and, during the period, the Group has been strongly cash generative, enabling net debt to be significantly reduced.
Financial summary
Group revenue declined by 7.8% in the first half from £32.71 million to £30.17 million and in constant currency terms, by 11.6%.
The Group's Australian and UK operations were both profitable but the Irish operation recorded a trading loss as the significant deterioration in the local economy and market conditions impacted that business.
Group operating profit fell by 68.2% from £1.64 million to £0.52 million and pre-tax profit was down by 84.3% from £1.28 million to £0.20 million.
Group borrowings reduced significantly in the six month period by £1.96 million from £11.43 million to £9.47 million, resulting in net gearing now being at the relatively low level of 21.4% compared to 26.0% at the year end.
The Group has a healthy balance sheet and, in each of its operational regions, enjoys strong banking relationships. The businesses have continued to trade well within the existing banking facilities and new arrangements, recently put in place, provide good headroom to support planned working capital requirements. The businesses are well invested with modern plant and equipment across all of their operations, and there are no major capital expenditure projects anticipated in the near term.
Half-year dividend
The Board declares an interim dividend of 2.60p per share, payable on 10 December 2009 (2008: 4.00p) to all shareholders on the register as at 20 November 2009.
Operational review
United Kingdom
As expected, the economic and market conditions have remained challenging throughout the first half of our current financial year.
Whilst there are signs that the decline in sales in the residential sector may be coming to an end, disappointingly the contract floorcovering market continues to experience recessionary pressure which, in the short-term, is restricting progress in this area.
continued…
-3-
Overall, UK revenue was down by 10.8% from £12.44 million to £11.10 million. Operating profit achieved a small improvement, up 5.5% from £0.145 million to £0.153 million, whilst profit before tax increased 103.5% to £0.12 million compared to the corresponding period last year of £0.06 million.
Despite the difficult trading conditions, the operation has continued to invest in new products for the residential sector, which should benefit trading in the second half. It continues to build the infrastructure for the contract and export arena and is confident that as the markets start to recover from the down-turn, it will be well placed to exploit sales opportunities within these sectors.
The demise of several of the carpet trade's woollen spinners, both in the UK and in Europe, has taken considerable production capacity out of the woollen spun yarn market. This is benefiting the UK's yarn spinning division with increased external sales.
Ireland
The dire state of the Irish economy has been well reported upon in the media. The extent of its impact on the market, however, is unprecedented with the malaise affecting both the residential and contract floorcovering markets.
Revenue in Ireland in the first half fell by 50.6% from £3.39 million to £1.67 million and by 55.8% in constant currency terms.
The operation has moved quickly to control its costs and has introduced sales and marketing initiatives aimed at stimulating business, but it has proved difficult to 'right-size' the business enough to counterbalance the quantum of the market decline. Consequently, the Irish operation recorded an operating loss of £0.28 million in the half-year compared to an operating profit of £0.14 million in the first half of 2008.
Australia
Whilst the Australian economy did not officially enter into the recession seen in many other countries, it has nonetheless seen very low GDP growth and weak consumer demand. The operation has also had to contend with a highly competitive local trading environment.
Revenue in Australia was up by 3.0% in the first half from £16.88 million to £17.40 million, aided by a strong Australian Dollar: Sterling exchange rate. In constant currency terms, revenue was down by 3.4%.
Profitability has been affected by both the highly competitive nature of the market, as the Australian operation chose to protect its market share, and from a significant under utilisation of the woollen spun yarn capacity at its two spinning mills as the demand for synthetic pile carpets grew at the expense of wool ranges.
Operating profit was down by 44.6 % from £1.67 million to £0.93 million in the period. Profit before tax was down by 50.4% from £1.50 million to £0.74 million.
The operation has continued to introduce new products manufactured on the new tufting equipment introduced in late 2008. This has helped underpin the first half sales performance and should help improve margins in the second half of this financial year.
continued…
-4-
Canada
The North American economy in general has remained weak during the first half of our financial year which has impacted our associate company's performance. Revenue was down by 25.9% from C$5.04 million to C$3.73 million. This gave rise to an operating loss of C$0.11 million compared to a profit of C$0.22 million in the first half of 2008.
Management changes have been initiated to further tighten costs and to leverage channels to market.
Personnel
I would like to make special mention of all employees who, over the past six months in particular, have had to contend with the worst trading conditions the Group has seen in several decades.
The Board has clearly had to make some very tough decisions over the past 12 months in 'right-sizing' the businesses and controlling costs to help the business in weathering these current economic conditions. All of the employees in the Group have had to make sacrifices and yet have worked tirelessly and loyally in positioning Victoria as best as possible to meet the market challenges.
On behalf of the shareholders and my fellow Directors, I would like to thank all our employees for their past commitment and continuing support.
Outlook
There still remains a high degree of uncertainty in all of the markets in which the Group operates, and this makes forecasting for the near future difficult.
Looking first at the UK, the Board feels that it cannot rely on any real help from the economy or a market recovery in the second half of this financial year and it might be well into 2010 before it can look forward to more normal trading conditions or any real market recovery. This having been said, there are some positives which lead the Board to believe that the UK operation can gain market share. It has invested in new product introductions which it hopes will help in underpinning sales growth in the coming months. Pre-emptive action taken to control operational costs both last year and again in the first quarter of this financial year has enabled it to operate in a very cost-effective manner. Likewise, better plant utilisation in the yarn spinning division should also start to deliver further benefits in the second half.
The Irish economic situation is unstable and the market conditions are not expected to benefit the operation in the second half-year. As a result, the Board believes that it is unlikely that the Irish operation will be profitable in the second half, despite the focus on maximising any sales and profit opportunities that may present themselves.
The Australian operation is now seeing the first signs of market improvement and the Board is optimistic for the second half out-turn. The current strength of the Australian Dollar benefits the Group not only in translating profits back into Sterling, but also locally in the sourcing of materials from overseas suppliers.
Colin Campbell, the Canadian associate business, is a small part of the overall Group result and, in the short-term, the outlook for the North American market remains uncertain. Recent management changes have stabilised the business and positioned it well to exploit any upturn as and when it comes.
continued…
-5-
Summary
With a strong balance sheet, we remain focused on optimising the full potential of each business and winning further market share. The Board remains confident that the Group will continue to weather the economic conditions well, and despite ongoing uncertain times, we hope to see an improved performance in the seasonally stronger second half of this financial year.
Looking beyond this, Victoria is very well positioned so that when recovery in the markets does occur, the business is in good shape to move quickly to exploit and benefit fully from improved conditions both at home and overseas.
Alexander Anton
Chairman
9 November 2009
-6-
Victoria PLC
Condensed Consolidated Income Statement
For the 26 weeks ended 3 October 2009 (unaudited)
|
|
|
26 Weeks |
26 Weeks |
53 weeks |
||
|
|
|
ended 3 Oct 2009 |
ended 27 Sept 2008 |
ended 4 April 2009 |
||
|
|
Notes |
£000 |
£000 |
£000 |
||
|
Continuing operations |
|
|
|
|
||
|
Revenue |
3 |
30,166 |
32,713 |
62,150 |
||
|
Cost of sales |
|
(21,728) |
(22,978) |
(44,638) |
||
|
Gross profit |
|
8,438 |
9,735 |
17,512 |
||
|
Distribution costs |
|
(6,409) |
(6,423) |
(12,313) |
||
|
Administrative expenses |
|
(1,677) |
(2,078) |
(3,604) |
||
|
Other operating income |
|
170 |
405 |
633 |
||
|
Operating profit |
3 |
522 |
1,639 |
2,228 |
||
|
Share of results of associated company |
|
(61) |
8 |
2 |
||
|
Finance costs |
|
(259) |
(363) |
(768) |
||
|
Profit before tax |
|
202 |
1,284 |
1,462 |
||
|
Taxation |
4 |
(73) |
(380) |
(1,073) |
||
|
Profit for the period |
|
129 |
904 |
389 |
||
|
Attributable to equity holders of the parent |
|
129 |
904 |
389 |
||
|
Earnings per share - |
pence |
basic |
5 |
1.86 |
13.02 |
5.60 |
|
|
diluted |
5 |
1.62 |
13.02 |
5.22 |
|
Condensed Consolidated Statement of Comprehensive Income
For the 26 weeks ended 3 October 2009 (unaudited)
|
|
26 Weeks |
26 Weeks |
53 weeks |
|
|
ended 3 Oct 2009 |
ended 27 Sept 2008 |
ended 4 April 2009 |
|
|
£000 |
£000 |
£000 |
|
Exchange differences on translation of foreign operations |
2,360 |
(401) |
864 |
|
Other comprehensive income/ (expense) for the period |
2,360 |
(401) |
864 |
|
Profit for the period |
129 |
904 |
389 |
|
Total comprehensive income for the period |
2,489 |
503 |
1,253 |
|
Attributable to equity holders of the parent |
2,489 |
503 |
1,253 |
-7-
Victoria PLC
Condensed Consolidated Balance Sheet
As at 3 October 2009 (unaudited)
|
|
As at |
As at |
As at |
|
|
3 Oct 2009 |
27 Sept 2008 |
4 April 2009 |
|
|
£000 |
£000 |
£000 |
|
Non-current assets |
|
|
|
|
Goodwill |
65 |
65 |
65 |
|
Intangible assets |
451 |
433 |
464 |
|
Property, plant and equipment |
27,190 |
24,756 |
26,430 |
|
Investment property |
180 |
180 |
180 |
|
Investment in associated company |
529 |
579 |
560 |
|
Deferred tax asset |
1,133 |
1,107 |
1,067 |
|
Total non-current assets |
29,548 |
27,120 |
28,766 |
|
Current assets |
|
|
|
|
Inventories |
19,444 |
20,051 |
19,630 |
|
Trade and other receivables |
11,501 |
13,533 |
9,175 |
|
Other financial asset |
---- |
2 |
---- |
|
Cash at bank and in hand |
687 |
282 |
259 |
|
Total current assets |
31,632 |
33,868 |
29,064 |
|
Total assets |
61,180 |
60,988 |
57,830 |
|
Current liabilities |
|
|
|
|
Trade and other payables |
10,319 |
11,889 |
8,565 |
|
Current tax liabilities |
809 |
1,053 |
776 |
|
Financial liabilities |
6,572 |
5,498 |
5,507 |
|
Total current liabilities |
17,700 |
18,440 |
14,848 |
|
Non-current liabilities |
|
|
|
|
Trade and other payables |
2,414 |
1,430 |
1,521 |
|
Other financial liabilities |
3,593 |
6,792 |
6,220 |
|
Deferred tax liabilities |
2,696 |
2,233 |
2,675 |
|
Total non-current liabilities |
8,703 |
10,455 |
10,416 |
|
Total liabilities |
26,403 |
28,895 |
25,264 |
|
|
|
|
|
|
Net assets |
34,777 |
32,093 |
32,566 |
|
Equity |
|
|
|
|
Issued share capital |
1,736 |
1,736 |
1,736 |
|
Share premium |
829 |
829 |
829 |
|
Retained earnings |
32,212 |
29,528 |
30,001 |
|
Total equity |
34,777 |
32,093 |
32,566 |
-8-
Condensed Consolidated Statement of Changes in Equity
For the 26 weeks ended 3 October 2009 (unaudited)
|
|
Share |
Share |
Retained |
Total |
|
|
capital |
premium |
earnings |
equity |
|
|
£000 |
£000 |
£000 |
£000 |
|
At 5 April 2009 |
1,736 |
829 |
30,001 |
32,566 |
|
Total comprehensive income for the period |
---- |
---- |
2,489 |
2,489 |
|
Dividends paid |
---- |
---- |
(278) |
(278) |
|
At 3 October 2009 |
1,736 |
829 |
32,212 |
34,777 |
|
At 30 March 2008 |
1,736 |
829 |
29,998 |
32,563 |
|
Total comprehensive income for the period |
---- |
---- |
503 |
503 |
|
Dividends paid |
---- |
---- |
(973) |
(973) |
|
At 27 September 2008 |
1,736 |
829 |
29,528 |
32,093 |
|
At 30 March 2008 |
1,736 |
829 |
29,998 |
32,563 |
|
Total comprehensive income for the period |
---- |
---- |
1,253 |
1,253 |
|
Dividends paid |
---- |
---- |
(1,250) |
(1,250) |
|
At 4 April 2009 |
1,736 |
829 |
30,001 |
32,566 |
-9-
Victoria PLC
Condensed Consolidated Statement of Cash Flows
For the 26 weeks ended 3 October 2009 (unaudited)
|
|
|
26 Weeks |
26 Weeks |
53 weeks |
|
|
|
ended 3 Oct 2009 |
ended 27 Sept 2008 |
ended 4 April 2009 |
|
|
Notes |
£000 |
£000 |
£000 |
|
Net cash inflow/ (outflow) from operating activities |
7a |
3,251 |
(2,094) |
894 |
|
Investing activities |
|
|
|
|
|
Dividends received from associate |
|
---- |
---- |
33 |
|
Purchases of property, plant and equipment |
|
(195) |
(1,429) |
(3,484) |
|
Proceeds of disposals of property, plant and equipment |
|
5 |
46 |
76 |
|
Net cash used in investing activities |
|
(190) |
(1,383) |
(3,375) |
|
Financing activities |
|
|
|
|
|
(Decrease)/ increase in long term loans |
|
(2,726) |
2,926 |
3,233 |
|
Receipts from financing of assets |
|
---- |
31 |
102 |
|
Payment of finance leases/HP liabilities |
|
(270) |
(387) |
(766) |
|
Dividends paid |
|
(278) |
(972) |
(1,250) |
|
Net cash (used in)/ from financing activities |
|
(3,274) |
1,598 |
1,319 |
|
Net decrease in cash and cash equivalents |
|
(213) |
(1,879) |
(1,162) |
|
Cash and cash equivalents at beginning of period |
|
(3,785) |
(2,629) |
(2,629) |
|
Effect of foreign exchange rate changes |
|
29 |
(30) |
6 |
|
Cash and cash equivalents at end of period |
7b |
(3,969) |
(4,538) |
(3,785) |
-10-
Victoria PLC
Notes to the Condensed Half-Year Financial Statements
For the 26 weeks ended 3 October 2009 (unaudited)
1 General information
These condensed consolidated financial statements for the 26 weeks ended 3 October 2009 have not been audited or reviewed by the Auditors. They were approved by the Board of Directors on 6 November 2009.
The information for the 53 weeks ended 4 April 2009 does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The Auditors' report on those accounts was unqualified.
2 Basis of preparation and accounting policies
These condensed consolidated financial statements should be read in conjunction with the Group's financial statements for the 53 weeks ended 4 April 2009, which were prepared in accordance with IFRSs as adopted by the European Union.
The accounting policies and basis of consolidation of these condensed financial statements are consistent with those applied and set out on pages 46 to 50 of the Group's audited financial statements for the 53 weeks ended 4 April 2009, except for the following accounting standards and interpretations which are effective for the Group from 5 April 2009:
IAS1 (revised) 'Presentation of Financial Statements' requires the presentation of a consolidated statement of changes in equity as a primary statement rather than as a note. IAS 1 (revised) has no impact on the Group's net cash flows, financial position, total comprehensive income or earnings per share.
IAS 23 (revised) 'Borrowing Costs' requires the Group to capitalise borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset as a part of the cost of the asset. IAS 23 (revised) has no significant impact on the Group's net cash flows, financial position, total comprehensive income or earnings per share.
IFRS 2 (revised) 'Share Based Payments' makes changes to the definitions and accounting treatment of vesting conditions and cancellations. These amendments have no significant impact on the Group's net cashflows, financial position, total comprehensive income or earnings per share.
IFRS 8 'Operating Segments' requires operating segments to be identified on the basis of information that is provided internally to the chief operating decision maker. Following the adoption of IFRS 8, the Group is continuing to report operating segments by operating divisions since this forms the basis of internal reporting.
Having reviewed the Group's projections, and taking account of reasonable possible changes in trading performance, the Directors believe they have reasonable grounds for stating that the Group has adequate resources to continue in operational existence for the foreseeable future.
The Directors are of the view that the Group is well placed to manage its business risks despite the current challenging economic and market conditions. Accordingly, the Directors continue to adopt the going concern basis in preparing the financial statements of the Group.
continued…
-11-
3 Segmental information
For management purposes, the Group is organised into four operating divisions according to the geographical areas where they are managed. These divisions form the basis on which the Group reports its primary segment information, plus the Canadian associate. The three segments are UK, Ireland and Australia, to which is added the Canadian associate.
The accounting standard IFRS8 "Operating Segments" replaces IAS14 "Segment Reporting" for periods beginning on or after 1 January 2009. The segments identified in accordance with IFRS8 do not materially change those previously disclosed under IAS14.
Geographical segment information for revenue, operating profit and a reconciliation to entity net profit is presented below.
|
|
For the 26 weeks ended 3 October 2009 |
For the 26 weeks ended 27 September 2008 |
||||||
|
|
Revenue |
Operating profit/ (loss) |
Finance Costs |
Profit/ (loss) before tax* |
Revenue |
Operating profit |
Finance costs |
Profit before tax* |
|
|
|
|
|
|
|
|
|
|
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
UK |
11,100 |
153 |
(37) |
116 |
12,443 |
145 |
(88) |
57 |
|
Ireland |
1,671 |
(284) |
(4) |
(288) |
3,386 |
139 |
(10) |
129 |
|
Australia |
17,395 |
928 |
(185) |
743 |
16,884 |
1,674 |
(177) |
1,497 |
|
|
30,166 |
797 |
(226) |
571 |
32,713 |
1,958 |
(275) |
1,683 |
|
Share of results of associate |
---- |
---- |
---- |
(61) |
---- |
---- |
---- |
8 |
|
Central costs |
---- |
(275) |
(33) |
(308) |
---- |
(319) |
(88) |
(407) |
|
Total continuing |
30,166 |
522 |
(259) |
202 |
32,713 |
1,639 |
(363) |
1,284 |
|
operations |
|
|
|
|
|
|
|
|
|
Tax |
|
|
|
(73) |
|
|
|
(380) |
|
Profit after tax from |
|
|
|
|
|
|
|
|
|
continuing activities |
|
|
|
129 |
|
|
|
904 |
* The share of results of the associated company is shown net of tax as required by IAS1.
Intersegment sales between the UK and Ireland and Australia were immaterial in the current and comparative periods.
continued…
-12-
4 Tax
|
|
26 Weeks |
26 Weeks |
|
|
ended 3 Oct 2009 |
ended 27 Sept 2008 |
|
|
|
|
|
|
£000 |
£000 |
|
Current tax |
|
|
|
- Current year UK |
(54) |
(95) |
|
- Current year overseas |
127 |
475 |
|
- Prior years |
---- |
---- |
|
|
73 |
380 |
|
Deferred tax |
---- |
---- |
|
Total |
73 |
380 |
Corporation tax for the half year is charged at 36.0% (2008: 29.6%), representing the best estimate of the weighted average annual corporation tax rate expected for the full financial year. The high effective tax rate is primarily due to the low tax rate and consequently tax credit in Ireland and the Canadian associate loss being reported after tax, as required under IAS1.
5 Earnings per share
The calculation of earnings per ordinary equity share in the parent entity is based on the following earnings and number of shares:
|
|
26 Weeks |
26 Weeks |
|
|
ended 3 Oct 2009 |
ended 27 Sept 2008 |
|
Earnings (£000) basic and diluted |
|
|
|
Profit attributable to ordinary equity holders of the parent entity |
129 |
904 |
|
Weighted average number of ordinary shares ('000) for the purposes of basic and adjusted earnings per share |
6,944 |
6,944 |
|
Effect of dilutive potential ordinary shares: |
|
|
|
Long-Term Incentive Plan ('000) |
1,034 |
---- |
|
Weighted average number of ordinary shares ('000) for the purposes of diluted earnings per share |
7,978 |
6,944 |
|
|
|
|
|
The Group's earnings per share are as follows: |
|
|
|
Basic and adjusted |
1.86 |
13.02 |
|
Diluted and diluted adjusted |
1.62 |
13.02 |
continued…
-13-
6 Dividends
|
|
|
|
|
|
26 Weeks |
26 Weeks |
|
|
ended 3 Oct 2009 |
ended 27 Sept 2008 |
|
|
£000 |
£000 |
|
Amounts recognised as distributions to equity holders in the period: |
|
|
|
Final dividend for the year ended 4 April 2009 paid during the year 4p per share (2008: 14p) |
278 |
972 |
|
Interim dividend declared for the year to 3 April 2010 2.6p per share (2008: 4p) |
181 |
278 |
7 Notes to the cash flow statement
a) Reconciliation of operating profit to net cash inflow/(outflow) from operating activities
|
|
26 Weeks |
26 Weeks |
53 weeks |
|
|
ended 3 Oct 2009 |
ended 27 Sept 2008 |
ended 4 April 2009 |
|
|
£000 |
£000 |
£000 |
|
Operating profit from continuing operations |
522 |
1,639 |
2,228 |
|
Adjustments for: |
|
|
|
|
- Depreciation charges |
1,306 |
1,179 |
2,380 |
|
- Amortisation of intangible assets |
16 |
15 |
31 |
|
- Loss/ (profit) on disposal of property, plant and equipment |
2 |
(9) |
(16) |
|
- Exchange rate difference on consolidation |
1,226 |
(144) |
336 |
|
Operating cash flows before movements in working Capital |
3,072 |
2,680 |
4,959 |
|
Decrease/ (increase) in working capital |
488 |
(3,800) |
(2,331) |
|
Cash generated from operations |
3,560 |
(1,120) |
2,628 |
|
Interest paid |
(289) |
(374) |
(742) |
|
Income taxes paid |
(20) |
(600) |
(992) |
|
Net cash inflow/(outflow) from operating activities |
3,251 |
(2,094) |
894 |
b) Analysis of net debt
|
|
At 4 April 2009 |
Cash flow |
Other non-cash changes |
Exchange movement |
At 3 October 2009 |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
|
Cash |
259 |
399 |
---- |
29 |
687 |
|
Bank overdrafts |
(4,044) |
(612) |
---- |
---- |
(4,656) |
|
Cash and cash equivalents |
(3,785) |
(213) |
---- |
29 |
(3,969) |
|
Secured commercial bills |
|
|
|
|
|
|
- Payable less than one year |
(766) |
278 |
(593) |
(106) |
(1,187) |
|
- Payable more than one year |
(4,622) |
2,448 |
593 |
(640) |
(2,221) |
|
Finance leases and hire purchase Agreements |
|
|
|
|
|
|
- Payable less than one year |
(662) |
270 |
(305) |
(26) |
(723) |
|
- Payable more than one year |
(1,598) |
---- |
305 |
(79) |
(1,372) |
|
Net debt |
(11,433) |
2,783 |
---- |
(822) |
(9,472) |
continued…
-14-
8 Rates of exchange
The results of overseas subsidiaries and associated undertakings have been translated into Sterling at the average exchange rates prevailing during the periods. The balance sheets are translated at the exchange rates prevailing at the period ends:
|
|
26 Weeks |
26 Weeks |
53 weeks |
|
|
ended 3 Oct 2009 |
ended 27 Sept 2008 |
ended 4 April 2009 |
|
Australia (A$) - average rate |
1.9927 |
2.1252 |
2.1787 |
|
Australia (A$) - period end |
1.8339 |
2.2216 |
2.0879 |
|
Ireland (€) - average rate |
1.1318 |
1.2643 |
1.2096 |
|
Ireland (€) - period end |
1.0883 |
1.2619 |
1.1028 |
|
Canada (C$) - average rate |
1.7912 |
1.9836 |
1.9186 |
|
Canada (C$) - period end |
1.7199 |
1.9080 |
1.8288 |
9 Related party transactions
During the period, the Group had transactions with its associate, comprising sales of goods to the value of £104k (2008: £384k) and provision of services worth £49k (2008: £44k). At 3 October 2009, the Group was owed £144k (2008: £332k). All goods and services were provided at market rates.
10 Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group's medium term performance and the factors which mitigate these risks have not changed from those set out on page 20 of the Group's 2009 Annual Report, a copy of which is available on the Group's website - www.victoriaplc.com. The Chairman's Statement includes consideration of uncertainties affecting the Group in the remaining six months of the year.
11 Information rights
Under Section 146 of the Companies Act 2006, registered shareholders of fully listed companies are able to nominate the underlying beneficial owners of their shares to receive information rights from 1 October 2007. Companies are required to fulfil these requests from 1 January 2008.
Please note that beneficial owners of shares nominated by the registered holders of those shares are required to direct all communications to the registered holder of their shares rather than to the Company's registrar, Capita Registrars, or the Company directly.
12 Statement of Directors' responsibilities
The directors confirm that to the best of their knowledge the condensed set of financial statements has been prepared in accordance with IAS 34, "Interim financial reporting" as adopted by the European Union, and includes a fair review of the information required by Disclosure and Transparency Rules 4.2.7R, 4.2.8R and 4.2.9R of the United Kingdom's Financial Services Authority.
This information is provided by RNS
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