Preliminary Results
April 26 2001 - 3:30AM
UK Regulatory
RNS Number:6341C
Wensum Company PLC
26 April 2001
THE WENSUM COMPANY PLC
Preliminary Results
Chairman's Statement for the Year Ended 27 January 2001
Results
Profits before tax increased to #1,925,884 (2000 -
#1,904,083) on reduced turnover of #15,606,429 (2000 -
#17,011,779).
Earnings per share were 16.48p (2000 - 17.00p).
We continue to have nil gearing. Cash balances stood at
#1,541,405 at the end of the period under review despite
the early repayment of #625,000, the outstanding balance
of a loan with 3i.
The directors are recommending a final dividend of 3.55p
(2000 - 4.20p). This, together with the increased
interim dividend, maintains the total for the year at
6.20p (2000 - 6.20p).
The final dividend will be paid on 27 June, 2001 to all
shareholders on the register on 18 May, 2001.
Share Buy Back
Renewal will be sought of the authority given at last
year's Annual General Meeting to purchase up to 10% of
the company's issued share capital when the current
authority lapses on 26 June, 2001.
Whilst the company has no short term plans to exercise
this authority it may consider doing so at an appropriate
time, should this be in the best interests of the company
and its development.
Operating Review
Wensum Corporate, our Gatwick based operation, is a
service orientated business comprising the design,
project management and distribution of corporate wear for
many leading brand companies, principally specialising in
the travel and leisure sectors.
Wensum Corporate performed well in the year under review,
increasing profits to record levels.
The launch of a substantial clothing project in the
financial services sector was completed successfully
during the year and this remains a key target growth
area.
We continue to develop our expertise in off shore
production. This, combined with our reputation for
design and service, provides our customers with high
quality clothing solutions in an increasingly competitive
market.
Wensum Clothing, our Norwich based operation, designs and
manufactures high quality private label tailored clothing
for a number of leading prestigious retailers.
Wensum Clothing's performance in the period under review
reflected the continuing pressure on margins from the
strength of sterling against our main European
competitors. Additionally, during the year sales to an
important customer declined significantly following a
strategic change in their market positioning.
However, progress continues to be made in the development
of personal tailoring. The reduced lead times achieved
during the year, along with improved operating systems
supported growth in this key area.
We continue to work closely with our customers in
developing exclusive stock supported ranges, which are
becoming increasingly important. Production of tailored
clothing for women is now well established and provides
opportunities for future development.
David Haggett OBE
In December last year David Haggett, our non-executive
deputy chairman, died following an illness fought with
characteristic determination and fortitude.
David, a former senior partner of Eversheds, Birmingham,
contributed significantly to the success of Wensum. He
played a key part in the management buy out of the
company in 1988, the flotation the following year and our
subsequent development.
We wish to record our appreciation of his substantial
contribution to the company and to convey our condolences
and our very best wishes to his family. He will be sadly
missed.
Management and Staff
We are currently underway with the recruitment of non-
executive director representation and an announcement
will be made at the appropriate time.
The board would like to record its appreciation of the
hard work and commitment shown by all staff during the
year.
Outlook
The achievement in the period under review of 12.3%
profit on turnover is a highly successful level for our
industry but given current market conditions this result
is unlikely to be repeated this year. The board
anticipates continued pressure on turnover and margins in
both areas of the business, particularly in the first
half of the current year which has started slowly.
However, we have embarked on a strategy to restore
turnover and margins, although the benefits are unlikely
to be reflected in the results in the current year.
In particular, we are investing in both people and
equipment to enable us to expand the growth of personal
tailoring, an area we believe has great potential. In
corporate clothing we have an exciting new launch towards
the end of the year in the retail services area, a new
market sector that we believe we can develop using the
significant expertise gained in the travel and leisure
sectors.
The directors are confident that these actions will
provide a solid base for future growth.
ANDREW HUGHES
Chairman
26 April 2001
AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 27
JANUARY, 2001
2001 2000
#'000 #'000
Turnover 15,606 17,011
------ ------
Operating profit 1,859 1,900
Net interest received 67 4
-- -----
Profit on ordinary activities before
taxation 1,926 1,904
Tax on profit on ordinary activities (643) (585)
------ ------
Profit on ordinary activities after
taxation attributable to members of
the holding company 1,283 1,319
Dividends (485) (482)
----- -----
Retained profit for the year 798 837
=== =====
Earnings per share - basic 16.48p 17.00p
- diluted 16.45p 16.95p
------ ------
Dividends per ordinary share
- interim 2.65p 2.00p
- proposed final 3.55p 4.20p
------ -----
6.20p 6.20p
------ -----
Notes:
1. The earnings per share were calculated on profits
for the year of #1,283,280 (2000 - #1,319,559) and on
7,784,954 ordinary shares, being the weighted average
number of shares in issue during the year (2000 -
7,764,341). The diluted earnings per share is based on
profits for the year of #1,283,280 and on 7,800,732
ordinary shares.
2. A final dividend per ordinary share of 3.55p (2000 -
4.20p) has been proposed totalling #278,814 (2000 -
#326,378). The interim dividend of 2.65p was paid to
shareholders on 12 October, 2000, totalling #206,062
(2000 - #156,281).
3. The Annual General Meeting will be held at the
Company's registered office, 179 Northumberland Street,
Norwich, Norfolk NR2 4EE on Tuesday, 26 June 2001,
commencing at 12 noon.
AUDITED GROUP BALANCE SHEET AT 27 JANUARY, 2001
2001 2000
#'000 #'000
Fixed assets
Tangible assets 2,165 2,299
----- -----
Current assets
Stock 2,240 2,148
Debtors 3,333 2,369
Cash at bank and in hand 1,542 2,286
----- -----
7,115 6,803
Creditors: amounts falling due within
one year 2,644 2,927
----- -----
Net current assets 4,471 3,876
----- -----
Total assets less current liabilities 6,636 6,175
Creditors: Amounts falling due after more
than one year - 500
Provisions for liabilities and charges
Deferred taxation 289 178
----- -----
6,347 5,497
===== =====
Capital and reserves
Called up share capital 392 388
Share premium account 190 142
Other reserves - 1,081
Profit and loss account 5,765 3,886
----- -----
6,347 5,497
===== =====
Notes:
1. The above audited financial information does not
amount to Statutory Accounts within the meaning of
Section 240 of the Companies Act 1985. The Statutory
Accounts for the period ended 29 January, 2000, which
include an unqualified audit report, have been filed with
the Registrar of Companies.
2. There has been no change in any of the accounting
policies for the group during these two financial years.
3. The other reserves were created in 1990 following
the cancellation of the share premium account. These
have been transferred to profit and loss reserves.
4. The Annual Report and Accounts will be despatched to
shareholders on 3 May, 2001 and will be available from
that date from the Company Secretary at the company's
registered office, 179 Northumberland Street, Norwich NR2
4EE.
AUDITED GROUP CASH FLOW STATEMENT FOR THE YEAR ENDED 27
JANUARY, 2001
2001 2000
#'000 #'000
Net cash inflow from operating activities 1,216 2,550
Returns on investment and servicing of finance:
Interest paid (49) (58)
Interest received 29 52
--- ---
(20) (6)
--- ---
Taxation:
UK corporation tax paid (629) (539)
Capital expenditure and financial investment:
Payments to acquire tangible fixed assets(212) (267)
Receipts on disposal of fixed assets 6 -
----- -----
(206) (267)
----- -----
Equity dividends paid (532) (423)
Financing:
Repayment of loan account (625) (125)
Proceeds from issue of shares 52 17
----- ----
(573) (108)
----- ----
(Decrease)/increase in cash (744) 1,207
===== =====
Notes:
2001 2000
#'000 #'000
Reconciliation of operating profit to net cash
inflow from operating activities
Operating profit 1,859 1,900
Depreciation 347 352
(Increase)/decrease in stocks (92) 41
(Increase)/decrease in operating
debtors and prepayments (878) 896
(Decrease) in operating creditors
and accruals (13) (639)
Profit on disposal of fixed assets (7) -
----- -----
1,216 2,550
===== =====
Analysis of net funds
29 January Cash 27 January
2000 Flow 2001
#'000 #'000 #'000
Cash 2,286 (744) 1,542
Liquid resources:
Short term loan (125) 125 -
Long term loan (500) 500 -
----- ----- -----
1,661 (119) 1,542
===== ===== =====
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