TIDMCRL
RNS Number : 1435X
Creightons PLC
22 November 2017
For Immediate Release 22 November 2017
Creightons plc Group
(the "Group" or "Creightons")
Unaudited interim financial report
for the six months ended 30 September 2017
Financial highlights
-- Revenue increased by 7% GBP16.7m. (2016: GBP15.6m).
-- Operating profit margin of 5.8% (2016 5.1%).
-- Profit before tax increased by 21% to GBP956,000 (2016: GBP790,000).
-- Diluted EPS 1.09p (2016: 1.00p)
-- ROCE 10.7% (2016: 9.5%)
-- Paid final dividend of 0.23p per ordinary share in August 2017 (2016: No dividend).
-- Interim dividend of 0.15p per ordinary share to be paid in December 2017
Chairman's statement
The Group has continued to make progress in the first half of
the year and the impact of the continuing growth can be seen in the
results for the period ending 30 September 2017.
Sales
Group Sales were GBP16,734,000 for the six months ended 30
September 2017 (2016: GBP15,600,000) an increase of 7.3%. This has
been achieved in conjunction with an order intake during the period
which is 13.5% up on the same period last year. Sales have
increased for the period through growth with key existing customers
and by bringing on new customers. Sales of our branded products for
the first 6 months have exceeded group growth at 12% through
existing customers, new export markets and ongoing development of
licenced brands. During the period we have focused on winning and
extending business with key UK retailers which are growing their
personal care and beauty market share as well as a realignment of
key contract accounts based on margin performance.
Margin and overheads
Our gross margin was 42.1% in the six months to 30 September
2017 (2016: 41.0%). We have continued to benefit from the economies
of scale generated by the sales growth in the year to March 2017
and on supplier base consolidation. We intend to focus efforts to
improve our margins through targeted investment in plant and
machinery which will increase production capacity and improve unit
cost of manufacture. This will be key to our success especially in
the current economic climate as we continue to see the trend of
consumers in the UK focussing on value.
We will continue to manage our overhead cost base and working
capital requirements to ensure they are aligned with the
anticipated sales levels of the Group, whilst retaining the skills
necessary to meet growth opportunities as they arise.
Profit before tax
Profit before tax was GBP956,000 (2016: GBP790,000), which
represents an increase of 21.0%. The increased sales together with
the tight control on costs results in an operating profit margin of
5.8% (2016: 5.1%).
Tax
It should be noted that the Group utilised all of its historic
tax losses in the financial year to 31 March 2017 and therefore we
have provided a tax charge within these results of GBP232,000
(2016: GBP119,000 - reduced rate due to utilization of historic
losses).
Earnings per share
I am pleased to report that the impact of the above is a diluted
earnings per share of 1.09p (2016: 1.00p) an increase of 9%.
Dividend Payments
The Board is pleased to announce that it will be paying an
interim dividend of 0.15 pence per ordinary share, reflecting the
continued strong performance the group has shown in the first half.
I anticipate that this will be paid before Christmas. This is in
addition to the dividend of 0.23 pence per ordinary share we paid
in August 2017, the charge for which is shown in the accounts to 30
September 2017. The total payment in relation to the dividend paid
in August was GBP139,000 (2016: GBP0).
Working capital and loans
Net cash on hand (cash and cash equivalents less short term
borrowings and loans) is a net borrowing of GBP246,000 (2016:
GBP43,000). The main reason for the decrease in net cash on hand is
the higher working capital requirement to support the sales growth
during the period.
The Board and I believe that this half year's sales of
GBP16,734,000 and profit after tax of GBP724,000 continues to place
the Group in a good position to take advantage of any opportunities
that may arise.
I would like to take this opportunity to thank each and every
one of the Group's employees for the hard work and effort they have
put in over what has been a challenging period. I would also like
to thank our customers, shareholders and suppliers for their
support and loyalty to the Group.
W O McIlroy
Executive Chairman 21 November 2017
Responsibility statement
The names and functions of the Directors of the Company are as
follows:
William O McIlroy Executive Chairman
Bernard Johnson Executive Managing Director
Mary T Carney Non-executive Director
Nicholas O'Shea Non-executive Director
William Glencross Non-executive Director
Martin Stevens Deputy Managing Director
Pippa Clark Group Sales and Marketing Director
Paul Forster Group Finance and Commercial Director
The Board confirms that to the best of its knowledge the
condensed set of financial statements gives a true and fair view of
the assets and liabilities, financial position and profit of the
Group and has been prepared in accordance with IAS 34 'Interim
Financial Reporting', as adopted by the European Union and that the
interim management report includes a fair review of the information
required by the Disclosure and Transparency Rules as issued by the
Financial Conduct Authority, namely:
-- DTR 4.2.7: An indication of important events that have
occurred during the first six months of the financial year, and
their impact on the condensed set of financial statements, and a
description of the principal risks and uncertainties for the
remaining six months of the financial year.
-- DTR 4.2.8: Details of related party transactions that have
taken place in the first six months of the current financial year
and that have materially affected the financial position or
performance of the enterprise during that period. Together with any
changes in the related parties transactions described in the last
annual report that could have a material effect on the enterprise
in the first six months of the current financial year.
By order of the Board
Nicholas O'Shea
Company Secretary and Director 21 November 2017
Principal risks and uncertainties
Risks
The Board regularly monitors exposure to key risks, such as
those related to production efficiencies, cash position and
competitive position relating to sales. It has also taken account
of the economic situation over the past 12 months, and the impact
that has had on costs and consumer purchases.
It also monitors those risks not directly or specifically
financial, but capable of having a major impact on the business's
financial performance if there is any failure, such as product
contamination and manufacture outside specification, maintenance of
satisfactory levels of customer and consumer service, accident
ratios, failure to meet environmental protection standards or any
of the areas of regulation mentioned above.
Capital structure, cash flow and liquidity
The business is funded using retained earnings and invoice
discounting, with a bank facility secured against its assets.
Consolidated income statement - unaudited
Six months ended Year ended
30 September (Unaudited) 31 March
(Audited)
-------------------------- ----- ---------------------------- -----------
2017 2016 2017
-------------------------- ----- ------------- ------------- -----------
Note GBP000 GBP000 GBP000
-------------------------- ----- ------------- ------------- -----------
Revenue 16,734 15,600 30,586
-------------------------- ----- ------------- ------------- -----------
Cost of sales (9,691) (9,201) (17,598)
-------------------------- ----- ------------- ------------- -----------
Gross profit 7,043 6,399 12,988
-------------------------- ----- ------------- ------------- -----------
Distribution
costs (626) (605) (1,280)
-------------------------- ----- ------------- ------------- -----------
Administrative
expenses (5,452) (4,995) (10,195)
-------------------------- ----- ------------- ------------- -----------
Operating profit 965 799 1,513
-------------------------- ----- ------------- ------------- -----------
Finance costs (9) (9) (24)
-------------------------- ----- ------------- ------------- -----------
Profit before
tax 956 790 1,489
-------------------------- ----- ------------- ------------- -----------
Taxation 3 (232) (119) (238)
-------------------------- ----- ------------- ------------- -----------
Profit for the
period from continuing
operations attributable
to the equity
shareholders
of the parent
company 724 671 1,251
-------------------------- ----- ------------- ------------- -----------
Dividend Six months Six months Year ended
ended 30 ended 30 31 March
September September (Audited)
(Unaudited) (Unaudited)
--------------------- ------------- ------------- -----------
2017 2016 2017
--------------------- ------------- ------------- -----------
Dividend Paid 139 - -
in period (GBP'000)
--------------------- ------------- ------------- -----------
Paid in period 0.23 - -
(pence per share)
--------------------- ------------- ------------- -----------
Earnings per share
Six months ended Year ended
30 September 31 March
(Unaudited) (Audited)
--------- ----- ------------------- -----------
Note 2017 2016 2017
--------- ----- --------- -------- -----------
Basic 2 1.20p 1.12p 2.09p
--------- ----- --------- -------- -----------
Diluted 2 1.09p 1.00p 1.88p
--------- ----- --------- -------- -----------
Consolidated statement of comprehensive income - Unaudited
Six months ended Year
30 September ended
(Unaudited) 31 March
(Audited)
------------------------------ ------------------- -----------
2017 2016 2017
------------------------------ --------- -------- -----------
GBP000 GBP000 GBP000
------------------------------ --------- -------- -----------
Profit for the year 724 671 1,251
------------------------------- --------- -------- -----------
Exchange differences on
translating of foreign
operations - - 3
------------------------------- --------- -------- -----------
Exercise of derivatives 30 - 26
------------------------------- --------- -------- -----------
Total comprehensive income
for the period attributable
to the equity holders of
the company 754 671 1,280
------------------------------- --------- -------- -----------
Consolidated balance sheet - unaudited
30 September 31 March
---------------------------------- --- -------------------------------- -----------
2017 2016 (Unaudited) 2017
(Audited)
(Unaudited)
---------------------------------- --- ------------- ----------------- -----------
GBP000 GBP000 GBP000
---------------------------------- --- ------------- ----------------- -----------
Non-current assets
---------------------------------- --- ------------- ----------------- -----------
Goodwill 331 331 331
--------------------------------------- ------------- ----------------- -----------
Other intangible assets 320 180 212
--------------------------------------- ------------- ----------------- -----------
Property, plant and equipment 1,767 1,582 1,637
--------------------------------------- ------------- ----------------- -----------
2,418 2,093 2,180
-------------------------------------- ------------- ----------------- -----------
Current assets
---------------------------------- --- ------------- ----------------- -----------
Inventories 5,736 4,554 4,024
--------------------------------------- ------------- ----------------- -----------
Trade and other receivables 7,901 6,373 4,861
--------------------------------------- ------------- ----------------- -----------
Cash and cash equivalents 213 1,001 2,631
--------------------------------------- ------------- ----------------- -----------
Derivative financial instruments 56 14 19
--------------------------------------- ------------- ----------------- -----------
13,906 11,942 11,535
-------------------------------------- ------------- ----------------- -----------
Total assets 16,324 14,035 13,715
--------------------------------------- ------------- ----------------- -----------
Current liabilities
---------------------------------- --- ------------- ----------------- -----------
Trade and other payables 6,618 5,097 4,564
--------------------------------------- ------------- ----------------- -----------
Short term borrowings 459 455 68
--------------------------------------- ------------- ----------------- -----------
Bank loan - under 12 months - 132 116
--------------------------------------- ------------- ----------------- -----------
Derivative financial instruments - 40 56
--------------------------------------- ------------- ----------------- -----------
7,077 5,724 4,804
-------------------------------------- ------------- ----------------- -----------
Net current assets 6,829 6,218 6,731
--------------------------------------- ------------- ----------------- -----------
Non-current liabilities
---------------------------------- --- ------------- ----------------- -----------
Deferred tax liability 66 - 26
--------------------------------------- ------------- ----------------- -----------
Bank loan - 457 418
--------------------------------------- ------------- ----------------- -----------
66 457 444
-------------------------------------- ------------- ----------------- -----------
Total liabilities 7,143 6,181 5,248
--------------------------------------- ------------- ----------------- -----------
Net assets 9,181 7,854 8,467
--------------------------------------- ------------- ----------------- -----------
Equity
---------------------------------- --- ------------- ----------------- -----------
Share capital 606 599 606
--------------------------------------- ------------- ----------------- -----------
Share premium account 1,260 1,249 1,259
--------------------------------------- ------------- ----------------- -----------
Other reserves 25 25 25
--------------------------------------- ------------- ----------------- -----------
Translation reserve (9) (12) (9)
--------------------------------------- ------------- ----------------- -----------
Cash flow hedge reserve 56 (26) (37)
--------------------------------------- ------------- ----------------- -----------
Retained earnings 7,243 6,019 6,623
--------------------------------------- ------------- ----------------- -----------
Total equity attributable
to the equity shareholders 9,181 7,854 8,467
--------------------------------------- ------------- ----------------- -----------
Statement of changes in shareholders' equity - unaudited
Share Share Other Translation Cash Retained Total
capital premium reserves reserve flow earnings
account hedge
reserve
----------------- --------- --------- ---------- ------------ --------- ---------- -------
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Balance at
1 April 2016 599 1,249 25 (12) (26) 5,307 7,142
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Profit for
six months
ended 30
September
2016 - - - - - 671 671
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Share based
payments - - - - - 41 41
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Exercise
of derivatives - - - - 26 - 26
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Charge in
relation
to derivative
financial
instruments - - - - (26) - (26)
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Balance at
30 September
2016 599 1,249 25 (12) (26) 6,019 7,854
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Profit for
six months
ended 31
March 2017 - - - - - 580 580
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Share based
payments - - - - - 49 49
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Exchange
differences
on translation
of foreign
operations 3 - - 3
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Exercise
of options 7 10 - - - - 17
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Charge in
relation
to derivative
financial
instruments - - - (11) - (11)
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Deferred
tax through
Equity (25) (25)
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Balance at
31 March
2017 606 1,259 25 (9) (37) 6,623 8,467
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Profit for
six months
ended 30
September
2017 - - - - - 724 724
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Payment of
dividend - - - - - (139) (139)
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Share based
payments - - - - - 35 35
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Exercise
of options - 1 - - - - 1
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Exercise
of derivatives - - - - 30 - 30
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Charge in
relation
to derivative
financial
instruments - - - - 63 - 63
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Balance at
30 September
2017 606 1,260 25 (9) 56 7,243 9,181
----------------- --------- --------- ---------- ------------ --------- ---------- -------
Consolidated cash flow statement - unaudited
Note Six months ended 30 Year ended
September (Unaudited) 31 March
(Audited)
----------------------------- ----- ------------------------- -----------
2017 2016 2017
----------------------------- ----- ------------- ---------- -----------
GBP000 GBP000 GBP000
----------------------------- ----- ------------- ---------- -----------
Net cash (outflow)
/ inflow from operating
activities 4 (1,532) (403) 2,058
----------------------------- ----- ------------- ---------- -----------
Cash flow from investing
activities
----------------------------- ----- ------------- ---------- -----------
Purchase of property,
plant and equipment (296) (350) (551)
----------------------------- ----- ------------- ---------- -----------
Expenditure on intangible
assets (309) (98) (306)
----------------------------- ----- ------------- ---------- -----------
Net cash (used in)
investing activities (605) (448) (857)
----------------------------- ----- ------------- ---------- -----------
Cash flow from financing
activities
----------------------------- ----- ------------- ---------- -----------
Repayment of finance
lease obligations - (7) (7)
----------------------------- ----- ------------- ---------- -----------
Proceeds on issue
of shares 1 - 17
----------------------------- ----- ------------- ---------- -----------
Payment of dividend (139) - -
----------------------------- ----- ------------- ---------- -----------
(Repayment) / increase
of bank loans and
invoice finance facilities (143) 1,044 602
----------------------------- ----- ------------- ---------- -----------
Net cash (used in)
/ generated from
financing activities (281) 1,037 612
----------------------------- ----- ------------- ---------- -----------
Net (decrease) /
increase in cash
and cash equivalents (2,418) 186 1,813
----------------------------- ----- ------------- ---------- -----------
Cash and cash equivalents
at start of period 2,631 814 814
----------------------------- ----- ------------- ---------- -----------
Effect of foreign
exchange rate changes - 1 4
----------------------------- ----- ------------- ---------- -----------
Cash and cash equivalents
at end of period 213 1,001 2,631
----------------------------- ----- ------------- ---------- -----------
Notes to the unaudited interim financial report
1. Basis of preparation
The interim financial statements for the six months ended 30
September 2016 and 30 September 2017 and for the twelve months
ended 31 March 2017 do not constitute statutory accounts for the
purposes of Section 434 of the Companies Act 2006. The Annual
Report and Financial Statements for the year ended 31 March 2017
have been filed with the Registrar of Companies. The Independent
Auditors' Report on the Annual Report and Financial Statements for
the year ended 31 March 2017 was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a
statement under sections 498(2) or 498(3) of the Companies Act
2006. The 30 September 2017 statements were approved by the Board
of Directors on 21 November 2017. This unaudited interim report has
not been audited or reviewed by auditors pursuant to the Financial
Reporting Council guidance on Review of Interim Financial
Information.
The condensed financial statements in this Interim Report have
been prepared in accordance with the requirements of IAS 34
'Interim Financial Reporting' as adopted by the European Union.
As required by the Disclosure and Transparency Rules of the UK's
Financial Conduct Authority, the condensed set of financial
statements has been prepared by applying the accounting policies
and presentation that were applied in the preparation on the
Company's published consolidated financial statements for the year
ended 31 March 2017, which were prepared in accordance with
International Financial Reporting Standards as adopted by the
European Union.
The condensed interim financial statements for the six months
ended 30 September 2017 and the comparative figures for the six
months ended 30 September 2016 are unaudited. The figures for the
year ended 31 March 2017 have been extracted from the Annual Report
on which the Auditors issued an unqualified audit report and which
have been filed with the Registrar of Companies.
2. Earnings per share
The calculation of the basic and diluted earnings per share is
based on the following data:
Six months ended Year
30 September ended
(Unaudited) 31 March
(Audited)
------------------------- ------------------- -----------
2017 2016 2017
------------------------- --------- -------- -----------
GBP000 GBP000 GBP000
------------------------- --------- -------- -----------
Earnings
------------------------- --------- -------- -----------
Net profit attributable
to the equity holders
of the parent company 724 671 1,251
-------------------------- --------- -------- -----------
Six months ended Year
30 September ended
(Unaudited) 31 March
(Audited)
------------------------------ ------------------------ ------------
2017 2016 2017
------------------------------ ----------- ----------- ------------
Number Number Number
------------------------------ ----------- ----------- ------------
Number of shares
------------------------------ ----------- ----------- ------------
Weighted average number
of ordinary shares for
the purposes of basic
earnings per share 60,563,551 59,837,243 59,905,805
------------------------------- ----------- ----------- ------------
Effect of dilutive potential
ordinary shares relating
to Share options 5,928,689 7,005,000 6,850,137
------------------------------- ----------- ----------- ------------
Weighted average number
of ordinary shares for
the purposes of diluted
earnings per share 66,492,240 66,842,243 66,755,942
------------------------------- ----------- ----------- ------------
3. Taxation
Six months ended Year
30 September ended
(Unaudited) 31 March
(Audited)
-------------- ------------------- -----------
2017 2016 2017
-------------- --------- -------- -----------
GBP000 GBP000 GBP000
-------------- --------- -------- -----------
Current tax 192 119 237
--------------- --------- -------- -----------
Deferred tax 40 - 1
--------------- --------- -------- -----------
Total 232 119 238
--------------- --------- -------- -----------
The charge for the period can be reconciled to the profit per
the income statement as follows:
Six months ended Year ended
30 September 31 March
(Unaudited) (Audited)
---------------------------------- ------------------- -----------
2017 2016 2017
---------------------------------- --------- -------- -----------
GBP000 GBP000 GBP000
---------------------------------- --------- -------- -----------
Profit before taxation 956 790 1,489
----------------------------------- --------- -------- -----------
Tax charge at the UK corporation
tax rate of 19% (2016
- 20%) (182) (158) (298)
----------------------------------- --------- -------- -----------
Tax effect of expenses
that are not deductible
in determining taxable
profit (7) - (1)
----------------------------------- --------- -------- -----------
Deferred tax charge on
temporary differences (1) - (1)
----------------------------------- --------- -------- -----------
Deferred tax credited
directly to retained earnings - - 25
----------------------------------- --------- -------- -----------
Adjustment in respect (56) - -
of prior periods
---------------------------------- --------- -------- -----------
Tax effect of utilisation
of brought forward tax
losses - 54 54
----------------------------------- --------- -------- -----------
Adjust closing deferred
tax to average rate (12) - 5
----------------------------------- --------- -------- -----------
Adjust opening deferred
tax to average rate (3) - 1
----------------------------------- --------- -------- -----------
Deferred tax not recognised - - 9
----------------------------------- --------- -------- -----------
Other differences 29 (15) (32)
----------------------------------- --------- -------- -----------
Total expense and effective
rate for the year (232) (119) (238)
----------------------------------- --------- -------- -----------
4. Notes to cash flow statement
Six months ended Year ended
30 September 31 March
(Unaudited) (Audited)
---------------------------------- ------------------- -----------
2017 2016 2017
---------------------------------- --------- -------- -----------
GBP000
---------------------------------- --------- -------- -----------
Profit from operations 733 680 1,275
----------------------------------- --------- -------- -----------
Adjustments for:
---------------------------------- --------- -------- -----------
Depreciation on property,
plant and equipment 166 142 288
----------------------------------- --------- -------- -----------
Amortisation of intangible
assets 201 157 333
----------------------------------- --------- -------- -----------
Share based payment charge 35 41 90
----------------------------------- --------- -------- -----------
1,135 1,020 1,986
---------------------------------- --------- -------- -----------
Increase in inventories (1,712) (640) (112)
----------------------------------- --------- -------- -----------
Increase in trade and
other receivables (3,040) (2,324) (813)
----------------------------------- --------- -------- -----------
Increase in trade and
other payables 2,054 1,551 1,021
----------------------------------- --------- -------- -----------
Increase in deferred tax
provision 40 - 26
----------------------------------- --------- -------- -----------
Movement in non-cash derivatives - - (26)
----------------------------------- --------- -------- -----------
Cash (utilised in) / generated
from operations (1,523) (393) 2,082
----------------------------------- --------- -------- -----------
Interest (paid) (9) (8) (24)
----------------------------------- --------- -------- -----------
Net cash (outflow) / inflow
from operating activities (1,532) (401) 2,058
----------------------------------- --------- -------- -----------
5. Related party transactions
The related party transactions that occurred in the six months
ended 30 September 2017 are not materially different in size or
nature to those reported in the Company's Annual Report for the
year ended 31 March 2017.
6. Availability of Interim Report
The Interim Report is being made available to shareholders on
the company website www.creightonsplc.com. Further copies can be
obtained from the Company's Registered Office, 1210 Lincoln Road,
Peterborough, PE4 6ND.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
For more information:
Nicholas O'Shea, Director, Creightons plc 01733 281000
Roland Cornish, Beaumont Cornish Limited 0207 628 3396
This information is provided by RNS
The company news service from the London Stock Exchange
END
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