Wensum Company PLC - Interim Results
October 14 1997 - 3:31AM
UK Regulatory
RNS No 1330a
THE WENSUM COMPANY PLC
14th October 1997
THE WENSUM COMPANY PLC
INTERIM CHAIRMAN'S STATEMENT
RESULTS
Profits before taxation for the first six months ended 26 July
1997 advanced to #650,397(1996 - #640,301) on turnover of #7,091,245
(1996- #6,154,680).
Earnings per share were 5.83p (1996 - 5.64p).
Net gearing improved to 9% compared with 20% at the same time
the previous year.
The Directors are recommending a maintained interim dividend
of 1.575p per ordinary share which will be paid on 24 November
1997 to all shareholders on the register on 24 October 1997.
REVIEW OF OPERATIONS
WENSUM CORPORATE, our corporate clothing operation, performed
well in the period under review, increasing both turnover and
operating profits.
The new purpose built site at Gatwick has been a great success
with many of our clients taking advantage of the improved
facilities, although with an inevitable increase in overheads
not fully recoverable in the short term.
Wensum Corporate is recognised as a significant force in the
airline and travel sector and an initiative is now underway to
develop additional opportunities in other areas of the
corporate clothing market. In support of this initiative we
are working in collaboration with overseas manufacturers to
reduce lead times and provide even greater added value to our
customers at a time when margins are under pressure.
WENSUM CLOTHING, our high quality tailored clothing
manufacturing operation, performed below expectation although
improving performance towards the latter part of the first
half , resulting in an overall uplift in sales, but a marginal
decrease in operating profits. The move towards more
specialist smaller orders continues to challenge our
manufacturing systems although great progress has been made in
improving cutting efficiency - an area of great importance to
the business.
Personal tailoring continues to grow substantially and will
inevitably become an increasing proportion of our business -
entirely in line with the trends emerging in many different
product areas towards greater individuality and choice for the
consumer.
CURRENT TRADING AND PROSPECTS
The second half has started well with both sales and profits
ahead of last year. However, the higher overhead levels in
Wensum Corporate, the continued growth in personal tailoring
and the consequential short term loss of efficiencies in
Wensum Clothing will inhibit margin growth in the second half
presenting a challenge in maintaining last year's profit
levels.
In addition the increasing specialisation of both our
operating companies will necessitate some strengthening of
management in key developmental areas. Whilst this must have
a short term effect on our bottom line we see this as an
investment in support of our long term growth and development
objectives and our confidence in our products and sectors of
the markets in which we operate.
The balance sheet is in good shape with an improvement in
gearing when compared with the position this time last year.
Andrew Hughes
Chairman
14th October 1997
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 26 JULY 1997
6 months 6 months 12 months
ended ended ended
26 July 1997 27 July 1996 25 January
(Unaudited) (Unaudited) 1997
#000 #000 (Audited)
#000
Turnover 7,091 6,155 14,059
____ ____ _____
Operating Profit 682 657 1,352
Net interest (32) (17) (51)
payable ___ ___ ____
Profit before taxation 650 640 1,301
Tax Charge (201) (211) (443)
____ ____ ____
Profit after taxation 449 429 858
Dividends (121) (120) (383)
____ ____ ____
Retained profit 328 309 475
___ ___ ___
Earnings per 5.83p 5.64p 11.28p
share ("EPS") ____ ____ _____
1. The EPS has been calculated on 7,691,383 Ordinary shares,
being the weighted average number of shares in issue
throughout the period ended 26 July (6 months to 27 July
1996 - 7,600,213).
2. An Interim Dividend of 1.575p (1996 - 1.575p) is
proposed, payable on 24 November 1997 to shareholders on
the register on 24 October 1997.
3. The tax charge for the six months to 26 July 1997 is
based on an estimated rate of 31% (1996 - estimated rate
33%). The tax charge for the year to 25 January 1997 is
the actual charge.
GROUP BALANCE SHEET
26 July 25 January 27 July
1997 1997 1996
(Unaudited) (Audited) (Unaudited)
#000 #000 #000
Fixed Assets 2,309 2,251 1,880
_____ _____ _____
Current assets
Stocks 1,780 1,783 2,138
Debtors 2,653 2,842 2,470
Cash at bank and 615 1,124 370
in hand _____ _____ _____
Creditors: 5,048 5,749 4,978
amounts falling
due within one 2,785 3,708 2,703
year _____ _____ _____
Net current 2,263 2,041 2,275
assets _____ _____ _____
Total assets less 4,572 4,292 4,155
current liabilities
Creditors:amounts 812 875 937
falling due after more
than one year
Deferred taxation 44 44 41
_____ _____ _____
3,716 3,373 3,177
_____ _____ _____
Capital and reserves
Called up share capital 385 384 380
Share premium account 102 88 62
Other reserves 1,082 1,082 1,082
Profit and loss account 2,147 1,819 1,653
account _____ _____ _____
3,716 3,373 3,177
_____ _____ _____
1. The above financial information does not constitute
Statutory Accounts as defined in Section 240 of the
Companies Act 1985. The comparative financial information
is based on the Statutory Accounts for the financial year
ended 25 January 1997. Those accounts, upon which the
auditors issued an unqualified opinion, have been
delivered to the Registrar of Companies.
2. The interim results will be sent to shareholders of the
Company, and copies will be available to the public at the
Registered Office, 179 Northumberland Street, Norwich,
Norfolk, NR2 4EE.
END
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