Interim Results - Pre-tax Profit Up 18%
International Greetings PLC
26 January 2000
Pre-tax profits up 18%
Good Christmas trading
Encouraging outlook for 2000
International Greetings PLC today announced interim
results for the six months ended 30 September 1999.
International Greetings is one of the world's leading
manufacturers of gift wrapping paper, gift accessories,
greeting cards and crackers and is the UK's leading
supplier of private label greetings products to major
multiples including Woolworths, Tesco and Boots. It also
manufactures character stationery products for a range of
children's characters under licence from Disney, Mattel
and Hasbro.
Highlights for the period included:
* Turnover up 22%, at £33.2 million (1998: £27.2
million)
* Pre-tax profit up 18% at £2.4 million (1998: £2.1
million)
* EPS up 17% at 4.1p (1998: 3.5p)
* Strong performance in US
* Interim dividend up 10% at 1.1p (1998: 1.0p)
* Encouraging orders for Christmas 2000
* Confident in outlook for full year to 31 March 2000
Commenting on today's results, the Chairman, John Elfed
Jones said:
'I am delighted to report that your Company has again
performed extremely well in the six months to 30
September 1999. Total turnover was up 22% at £33.2m,
with Copywrite (our character stationery business)
accounting for £6.7m of this total. Profit before
taxation was up 18% at £2.4m, with earnings per share
increasing by 17%.
'Our US division performed particularly well. With
volumes and margins up, it is now reaping the rewards of
investment and management effort in recent years. The US
market was buoyant in 1999 and we expect this trend to
continue throughout 2000.
'We are pleased with the progress made at Copywrite where
we are in the final stages of our rationalisation
programme. Following a detailed review of costs, we have
decided to close Copywrite's Manchester production
facility with effect from March 2000. Production
previously carried out in Manchester will now be sourced
primarily from outside suppliers, with other operational
activities transferring to Copywrite's head office in
Duxford, Cambridgeshire.
'The refinancing of our new property in Hatfield referred
to in last year's Annual Report and Accounts was
completed through a sale and leaseback of the property in
November 1999. This has resulted in a significant
reduction of debt, and will have a beneficial effect on
both year end gearing and interest charge. The gain on
the disposal of this property and the closure costs of
Copywrite's Manchester facility will be separately
disclosed as exceptional items in the results for the
full year to 31 March 2000, and the net effect of these
items is not expected to be material.
'On 11 January this year, we completed the purchase of
the trade and certain assets of Pepperpot, a gift
stationery business, for a cash consideration of
£375,000. In the nine months to 30 September 1999,
Pepperpot's turnover was £1.2m, of which over 50% was in
the US. Its distribution network and customer base there
are complementary to our own, and this small acquisition
will significantly extend our overall range offering in
that market.
'The late Christmas sales trend experienced by customers
in recent years was once again apparent in 1999.
However, I am pleased to report that the majority of our
customers achieved sales of our products in line with
their expectations, and as a result, we look forward to
the results for the full year to 31 March 2000 with
confidence. Orders received so far for the Christmas
2000 period have also been encouraging. Reflecting this,
your Board has declared an increased interim dividend up
10% to 1.1p net per share. The dividend will be paid on
3 March 2000 to all shareholders on the register on 11
February 2000.'
For further information, please contact:
International Greetings PLC 01707 630 630
Nick Fisher, Joint Chief Executive Officer
Mark Collini, Finance Director
Grandfield 0171 417 4170
Michael Henman/Clare Abbot
Group Profit & Loss Account
Six months ended 30th September 1999
Unaudited Unaudited Audited
6 months to 6 months to year ended
30 September 30 September 31 March
1999 1998 1999
£000 £000 £000
Turnover 33,163 27,219 72,151
Operating profit 3,084 2,836 9,416
Interest payable (645) (768) (1,581)
Profit before taxation 2,439 2,068 7,835
Taxation (766) (658) (2,414)
Profit after taxation 1,673 1,410 5,421
Dividend (447) (405) (1,372)
Retained profit 1,226 1,005 4,049
Earnings per share 4.1p 3.5p* 13.5p*
Diluted earnings per share 4.1p 3.5p* 13.3p*
Dividend per ordinary share 1.1p 1.0p* 3.3p*
Note:
1 The figures for the year ended 31 March 1999 are
extracted from the statutory financial statements for
that year, which have been reported on by the auditors
without qualification, and without any statement under
Section 237 (2) or (3) of the Companies Act 1985, and
have been delivered to the Registrar of Companies.
2 The calculation of earnings per share is based on
40,630,091 (6 months to September 1998: 39,932,085*, 12
months to 31 March 1999: 40,255,335*) ordinary shares
being the average number of shares in issue during the
period. The calculation of diluted earnings per share is
based on 41,043,759 (6 months to 30 September 1998:
40,863,690*, 12 months to 31 March 1999 40,872,465*)
ordinary shares calculated in accordance with FRS 14.
3 The taxation charge for the six months ended 30th
September 1999 is based on the estimated tax rate for the
full year.
* Figure adjusted to reflect bonus issue made in
September 1999.
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