Wensum Company PLC - Final Results
April 30 1998 - 3:33AM
UK Regulatory
RNS No 7525n
WENSUM COMPANY PLC
30th April 1998
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 JANUARY, 1998
The Wensum Company operates from two principal locations.
Our Norwich operation designs and manufactures high
quality tailored clothing; at Gatwick our service
orientated business provides a complete package
comprising the design, development, sourcing,
distribution and total management of career wear clothing
to leading brand companies.
Highlights
- Pre-tax profit up 3.95% to #1.35m
- Operating profit of 9.8% to sales
- Turnover up 3.5% to #14.56m
- Earnings per share up 4.5% to 11.79p
- Maintained final dividend proposed
- Nil net gearing with growing cash resources
- Plans to purchase up to 10% of own shares
- Excellent order book
Results
I am delighted to be able to report an overall improved
performance for Wensum for the year ended 31 January
1998. This result exceeds market expectations. Net
profits before taxation were 3.95% up at #1,352,473
(1997: #1,301,022) on turnover up 3.5% at #14,561,390
(1997: #14,058,640).
Earnings per share increased to 11.79p (1997: 11.28p).
There was nil net gearing at the year end and net cash is
steadily increasing at #425,336 (1997: #124,305).
The directors are recommending a final dividend of 3.425p
per ordinary share making a maintained total for the year
of 5.00p. The final dividend will be paid on 1 July,
1998 to all shareholders on the register on 22 May, 1998.
It was particularly pleasing that the rate of operating
profit to sales during the year was 9.8% which reflects
the quality of our business.
The directors would like to thank all management and
staff throughout the group for their continued loyalty,
dedication and hard work in achieving these results.
Review of Operations
Wensum Corporate had an excellent year in its first full
year at its new headquarters adjacent to Gatwick airport.
This new site is proving to be a real benefit to both
customers and staff. We are now able to undertake major
launches for all customers using the enhanced facilities.
This includes the individual fitting of staff by Wensum
trained personnel, training rooms available for use by
customers, direct computer links with customers to our
extensive databases and distribution to the individual
employee.
We reported last year the impending launch of a major new
customer. This was Britannia Airways whose staff,
wearing the new uniform, have been profiled extensively
on the television in the last few months. This launch
was extremely successful and during 1998 our programme
with them will grow to incorporate all their European
activities.
There have been several other major launches during the
year, one of which takes us into a totally different
market sector. In 1997 we launched Servisair, the UK's
leading ground handling agent for the airline industry.
In 1998 the uniform will be distributed throughout Europe
as part of their re-branding and growth programme.
This was a year of further development for Wensum
Clothing.
We ceased to manufacture for Marks & Spencer and still
achieved a net increase in turnover by following our
declared strategy of concentrating on a wider range of
specialist orders with high added value. This is
illustrated by the continued development of our Personal
Tailoring, or Made to Measure business, which we have
more than doubled in size in the last year and which has
great potential for future growth.
Wensum Clothing has a full order book to supply many of
the finest retailers in the country, with the Englishness
of our products being a strong selling feature. We
believe that very few companies have such an outstanding
customer portfolio.
Current Trading & Prospects
Both our divisions have had an excellent start to the
current year. The order book in Wensum Clothing is
exceptionally strong and Wensum Corporate continues to
add to its excellent client base by working on brand-led
projects.
Whilst Wensum Corporate is seen fundamentally as being a
British company our product is being distributed
worldwide on the strength of our customers' growth, for
example, at Virgin. We are also delighted to add to our
portfolio for 1988 a truly international project -
Cathay Pacific.
Against this background the board has become increasingly
concerned that the company's share price does not reflect
the underlying quality of, and prospects for, the
business.
We will be seeking approval from our shareholders at the
Annual General Meeting on 18 June, 1988 for the company
to have the authority, although not the obligation, to
purchase up to 10% of its issued share capital - within
Stock Exchange guidelines.
We are confident that the strategy we have developed will
provide a firm foundation for future growth.
ANDREW HUGHES
Chairman
30 April, 1988
THE WENSUM COMPANY PLC
AUDITED GROUP BALANCE SHEET AT 31 JANUARY, 1998
1998 1997
#000 #000
Fixed assets
Tangible assets 2,300 2,251
----- -----
Current assets
Stock 2,063 1,783
Debtors 2,633 2,842
Cash at bank and in hand 1,300 1,124
----- -----
5,996 5,749
- Creditors: Amounts falling due within one year 3,581 3,708
----- -----
- Net current assets 2,415 2,041
----- -----
- Total assets less current liabilities 4,715 4,292
- Creditors: Amounts falling due after more than
one year 750 875
- Provisions for liabilities and charges
Deferred taxation 30 44
----- -----
3,935 3,373
===== =====
Capital and reserves
Called up share capital 387 384
Share premium 126 88
Other reserves 1,081 1,081
Profit and loss account 2,341 1,820
----- -----
3,935 3,373
===== =====
THE WENSUM COMPANY PLC
AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 JANUARY, 1998
1998 1997
#000 #000
Turnover 14,561 14,059
------ ------
Operating profit 1,428 1,352
Net interest payable (76) (51)
Profit before taxation 1,352 1,301
Tax charge (444) (443)
----- -----
908 858
Dividends (387) (383)
----- -----
Retained profit 521 475
=== ===
Earnings per share 11.79p 11.28p
------ ------
Dividends per ordinary share
- interim 1.575p 1.575p
- proposed final 3.425p 3.425p
------ ------
5.000p 5.000p
====== ======
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 25 January, 1997, which
include an unqualified audit report, have been filed
with the Registrar of Companies.
2. The earnings per share have been calculated on
7,704,341 ordinary shares being the weighted average
number of shares in issue during the year. (1997:
7,605,763).
3. A final dividend per ordinary share of 3.425p net
(1997: 3.425p net) has been proposed totalling #265,298
(1997: #262,729). The interim dividend of 1.575p net was
paid to shareholders on 24 November, 1997, totalling
#121,211 (1997: #119,938).
4. The Annual Report and Accounts will be despatched to
shareholders on 19 May, 1998 and will be available from
that date from the Company Secretary at the company's
registered office, 179 Northumberland Street, Norwich,
NR2 4EE.
THE WENSUM COMPANY PLC
AUDITED GROUP CASH FLOW STATEMENT FOR THE YEAR ENDED 31
JANUARY, 1998
1998 1997
#000 #000
Net cash inflow from operating activities 1,190 1,366
----- -----
Returns of investment and servicing of finance:
Interest paid (100) (86)
Interest received 24 32
Net cash outflow from returns on investments and ---- ----
servicing of finance (76) (54)
---- ----
UK corporation tax paid (102) (425)
----- -----
Investing activities:
Purchase of plant, machinery, fixtures and
fittings (367) (651)
Disposal of fixed assets - 7
----- ----
(367) (644)
----- -----
Equity dividends paid (385) (380)
----- -----
Net cash inflow/(outflow) before financing 260 (137)
=== =====
Financing:
Repayment of loan account 125 -
Proceeds from issue of shares (41) (30)
---- ----
84 (30)
---- ----
Increase/(decrease) in cash and cash equivalents 176 (107)
--- -----
260 (137)
=== =====
END
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