RNS Number:8383S
Airsprung Furniture Group PLC
04 December 2003
AIRSPRUNG FURNITURE GROUP PLC AND SUBSIDIARIES
Interim Results 2003/2004
The unaudited results for the six months to 3 October 2003 show a pre-tax profit
of #861,000 (2002: #321,000 loss). This was after a profit of #1.45 million
(2002: nil) on the disposal of Sprung Slumber and a profit on a property
disposal of #301,000 (2002: #1.25 million). The operating loss from continuing
operations is #883,000 (2002: #1.55 million loss). The net asset value per
ordinary share of the Group has increased since the last financial year end from
81p to 88p and the Group held cash balances of #4.79 million as at 3 October
2003.
The board has declared an interim dividend of 1.5p per ordinary share (2002:
1.0p) which will be paid on 30 January 2004, the ex-dividend date being 7
January 2004 and the record date 9 January 2004. The level of dividend reflects
the particularly strong cash position following the sale of Sprung Slumber.
On 3 October 2003 the successful sale of Sprung Slumber was announced for a cash
consideration of #5.40 million. The board felt that Sprung Slumber would not be
able to achieve its full potential without considerable capital expenditure in
the form of a new and larger manufacturing facility and it therefore decided to
concentrate bed production for the Group at its Trowbridge facility. In the
period under review Sprung Slumber contributed a profit of #296,000 on sales of
#5.30 million.
Also announced on 3 October 2003 were the continuing difficulties in trading
conditions in the furniture industry in general. Whereas the month of September
would usually see the commencement of a significant increase in demand, this
upturn has only marginally materialised this year.
At the year end we specifically mentioned the difficulties being experienced by
Bymacks which has traditionally operated at the entry point level of the
upholstery market and more especially the continuing challenge created by low
cost imports. On 26 November 2003 we commenced collective consultation to
discuss the potential closure of our Bymacks facility. In the event of closure
we would seek to transfer a proportion of production to other sites. Losses at
Bymacks for the period under review are #598,000.
While restructuring continues in the Group as a whole, we are pleased to report
that the restructuring at Airsprung Beds is now largely complete. Tangible
improvements in productivity, plant efficiencies and staff retention have
already taken place and are expected to continue.
These improvements, together with others across the Group, give the Board
confidence that the underlying operating performance in the second half will be
profitable, although it is difficult to determine at this stage, and until the
restructuring is complete, to what extent operating losses on continuing
operations in the first half will be offset.
Philip G Bradshaw
Chairman 4 December 2003
For further information please contact:
Airsprung
Philip Bradshaw, Chairman
Tony Lisanti, Chief Executive
Airsprung Furniture Group PLC Tel: 01225 754411
Rowan Dartington
Barrie Newton Tel: 0117 933 0011
Consolidated Profit and Loss Account
6 months to 6 months to Year to
3.10.03 30.9.02 31.3.03
#000 #000 #000
Turnover - Continuing operations 27,036 31,560 66,453
Operating loss - Continuing operations (883) (1,554) (1,713)
Profit on sale of fixed assets 301 1,252 1,299
Profit on sale of operation 1,454 - -
Profit/(loss) on ordinary activities before interest 872 (302) (414)
Interest payable (11) (19) (57)
Profit/(loss) on ordinary activities before taxation 861 (321) (471)
UK corporation tax - 212 32
Deferred tax 220 82 249
Profit/(loss) on ordinary activities after taxation 1,081 (27) (190)
Dividends
Equity dividends (358) (239) (1,910)
Non-equity dividends (33) (33) (66)
Profit/(loss) 690 (299) (2,166)
Dividend per ordinary share 1.5p 1.0p 8.0p
Earnings/(loss) per ordinary share 4.4p (0.3p) (1.1p)
Reconciliation of Movements in Shareholders' Funds
6 months 6 months Year to
to 3.10.03 to 30.9.02 31.3.03
#000 #000 #000
Profit/(loss) for the period 1,081 (27) (190)
Dividends (391) (272) (1,976)
690 (299) (2,166)
Goodwill reinstated on sale of operation 1,023 - -
Net movement in shareholders' funds 1,713 (299) (2,166)
Opening shareholders' funds 19,977 22,143 22,143
Closing shareholders' funds 21,690 21,844 19,977
Consolidated Balance Sheet
3.10.03 30.9.02 31.3.03
#000 #000 #000
Assets employed
Fixed assets
Intangible assets 604 929 904
Tangible assets 12,857 15,008 14,303
13,461 15,937 15,207
Current assets
Stocks 3,544 4,857 4,677
Debtors 7,135 13,623 13,069
Bank and cash balances 4,793 - 1,343
15,472 18,480 19,089
Creditors: amounts falling due within one year 6,271 11,212 13,127
Net current assets 9,201 7,268 5,962
Total assets less current liabilities 22,662 23,205 21,169
Financed by
Creditors: amounts falling due after more than - 2 -
one year
Provisions for liabilities and charges
Deferred tax 972 1,359 1,192
972 1,361 1,192
Capital and reserves
Called up share capital 3,044 3,044 3,044
Share premium account 2,348 2,348 2,348
Capital redemption reserve 2,345 2,345 2,345
Revaluation reserve 1,617 1,617 1,617
Profit and loss account 12,336 12,490 10,623
21,690 21,844 19,977
Equity shareholders' funds 21,035 21,189 19,322
Non-equity shareholders' funds 655 655 655
Total shareholders' funds 21,690 21,844 19,977
22,662 23,205 21,169
Consolidated Cash Flow Statement
6 months 6 months Year to
to 3.10.03 to 30.9.02 to 31.3.03
#000 #000 #000
Net cash (outflow)/inflow from operating activities (1,696) (2,119) 659
Returns on investments and servicing of finance
Interest received - 1 8
Interest paid (11) (20) (64)
Interest paid on finance leases and
similar hire purchase contracts - - (1)
Non-equity dividends and appropriations paid (33) (33) (66)
Net cash outflow from returns on
investments and servicing of finance (44) (52) (123)
Taxation
UK corporation tax 193 (40) (308)
Capital expenditure and financial investment
Receipts from sales of assets 2,528 268 1,203
Tangible fixed assets purchased (255) (488) (977)
2,273 (220) 226
Acquisitions and disposals
Disposal of operation 4,398 - -
4,398 - -
Equity dividends paid (1,672) (478) (716)
Net cash inflow/(outflow) 3,452 (2,909) (262)
Financing
Capital element of finance lease rental payments (2) (3) (6)
Net cash outflow from financing (2) (3) (6)
Increase/(decrease) in cash 3,450 (2,912) (268)
Reconciliation of Operating Profit to Net Cash (Outflow)/Inflow
from Operating Activities
6 months 6 months Year to
to 3.10.03 to 30.9.02 to 31.3.03
#000 #000 #000
Continuing activities
Operating loss (883) (1,554) (1,713)
Depreciation of tangible fixed assets 586 665 1,302
Profit on sales of tangible fixed assets (7) - (2)
Decrease in stocks 519 820 1,000
Decrease in debtors 2,571 648 813
Decrease in creditors (4,509) (2,725) (793)
Goodwill amortisation 27 27 52
Net cash (outflow)/inflow from operating activities (1,696) (2,119) 659
Reconciliation of Net Cash Flow to Movement in Net Funds
6 months 6 months Year to
to 3.10.03 to 30.9.02 31.3.03
#000 #000 #000
Increase/(decrease) in cash in the period 3,450 (2,912) (268)
Cash outflow from decrease in debt 2 3 6
Movement in net funds/(debt) in the period 3,452 (2,909) (262)
Net opening funds 1,341 1,603 1,603
Net closing funds/(debt) 4,793 (1,306) 1,341
Analysis of Net Funds
At 1.4.03 Cash flow At 3.10.03
#000 #000 #000
Cash 1,343 3,450 4,793
Finance leases (2) 2 -
1,341 3,452 4,793
Notes
1 For the purpose of Section 240 of the Companies Act 1985 the interim
results represent unaudited abridged accounts. No review of the interim
results has been carried out by the company's Auditors. Full accounts
for the year to 31 March 2003, upon which Auditors have given an
unqualified report, have been delivered to the Registrar of
Companies.
2 The earnings per ordinary share have been calculated on 23,888,698
ordinary shares (2002 - 23,888,698), being the weighted average number of
shares in issue during the period.
3 The interim report is being circulated to all shareholders and further
copies are available at the company's Registered Office.
This information is provided by RNS
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