RNS Number:8356F
Dobbies Garden Centres PLC
26 June 2001
26 June 2001
DOBBIES GARDEN CENTRES plc
Interim Results
6 months to 30 April 2001
Highlights
* Sales #11.9m up 30%
* Like-for-like sales up 8%
* Operating profit #1.0m up 4.4%
* Pre-tax profit #0.66m down 8.5%
* Interim dividend 2.2p up 10%
* Two major stores redeveloped
Chairman, Alex Hammond-Chambers, said: "Although the weather had an influence
on our profitability, had it not been for the partial closure of two of our
major stores for redevelopment, we estimate that our profits would have been
22% higher than last year.
"Most encouragingly, the warm weather in May has improved our comparative
sales statistics, so that in the period up to mid-June 2001, our like-for-like
sales are now 15% ahead of the same period a year ago. With our two major
developments now completed we expect to be able to report further progress in
our sales and profits in February 2002."
Enquiries:
Dobbies Garden Centres plc
James Barnes, Chief Executive
Sharon Brown, Finance Director
Tel: 0131 663 6778
Bell Pottinger Financial
Jonathon Brill, Director
Caroline Sturdy, Associate Director
Tel: 020 7353 9203
Chairman's Statement
First half-year sales
I am very happy to be able to report that sales for the first half of our
current trading year rose 30% to #11.9m. It was not an easy trading period for
us because it covered one of the coldest, wettest winters for 30 years and the
partial closure of two of our larger garden centres for redevelopment - those
at Milngavie (Glasgow) and Shrewsbury. These two important factors apart,
there were three other influences on our sales performance - all positive: our
Findlay Clark and Clifton garden centres, acquired a year ago, traded for the
full six months; we had an excellent Christmas; and April, an important month,
proved to be somewhat better than the appallingly wet April 2000. Perhaps the
best way of demonstrating the overall sales performance comes from the 8%
increase in our like-for-like sales for the six months to 30th April 2001.
Most encouragingly, the warm weather in May has improved these comparable
sales statistics, so that in the period to mid-June 2001, our like-for-like
sales are now 15% ahead of the same period a year ago.
Pre-tax profits
Profits before tax for the six-month period amounted to #659,000, 8% lower
than the #720,000 earned in the same period last year. Although the weather
had an influence on our profitability, had it not been for the partial closure
of two of our major stores for redevelopment, we estimate that our profits
would have been 22% higher than last year.
Dividend
Your Board of Directors has declared an interim dividend of 2.2p per ordinary
share, payable to shareholders on 31 October 2001.
Company Developments
During this first half-year we have completed three major developments at a
cost of over #5m: the two redevelopments at Milngavie and Shrewsbury, which
were opened at the beginning of May and the new Company head office located in
Edinburgh.
We have increased the square footage of Milngavie by just under 60% and of
Shrewsbury by just under 70%. Both of these stores are now what we would
categorise as superstores with sales potential in excess of #3m. This brings
the number of superstores in the Group to six, with the potential for
redevelopment of at least two more of the existing centres within the next 2-3
years. Indeed, we plan to commence the redevelopment of our Clifton Garden
Centre, located near Preston, this Autumn.
These developments, and future ones, are important for the continued growth of
your Company's business. A great deal of hard work has gone into producing
good results in difficult circumstances and separately into the completion of
the three developments. I would like to thank James Barnes, Johnny Trotter and
Sharon Brown and all their colleagues for the progress that has been made
during this six-month period. Unforeseen events aside, we expect to be able to
report further progress in our sales and profits in February 2002.
Alex Hammond-Chambers
Chairman
Dobbies Garden Centres plc
Consolidated Profit and Loss Account
Unaudited six months Year ended
ended 30 April 31 October
2001 2000 2000
#'000 #'000 #'000
Turnover 11,895 9,138 23,591
Cost of sales (6,365) (5,016) (12,667)
---------- ---------- ----------
Gross profit 5,530 4,122 10,924
---------- ---------- ----------
Administrative and selling expenses (4,849) (3,412) (8,279)
Other operating income 320 249 542
---------- ---------- ----------
Operating profit 1,001 959 3,187
Interest payable and similar charges (342) (239) (575)
---------- ---------- ----------
Profit on ordinary activities before 659 720 2,612
taxation
Tax on ordinary activities (163) (180) (651)
---------- ---------- ----------
Profit on ordinary activities after 496 540 1,961
taxation
Dividends (200) (181) (549)
---------- ---------- ----------
Retained profit for the period 296 359 1,412
---------- ---------- ----------
Earnings per share (note 2) 5.46p 8.15p 25.00p
---------- ---------- ----------
Diluted earnings per share (note 2) 5.33p 7.94p 24.28p
---------- ---------- ----------
Dividend per share 2.20p 2.00p 6.05p
---------- ---------- ----------
Shares in issue (weighted average) 9,071,382 6,620,133 7,844,924
---------- ---------- ----------
Reconciliation of Movements in Shareholders' Funds
Unaudited six months Year ended
ended 30 April 31 October
2001 2000 2000
#'000 #'000 #'000
Profit for the financial period 496 540 1,961
Dividends (200) (181) (549)
New share capital subscribed - 1 245
Share premium arising (net) - 16 9,784
---------- ---------- ----------
296 376 11,441
Opening shareholders' funds 24,461 13,020 13,020
---------- ---------- ----------
Closing shareholders' funds 24,757 13,396 24,461
====== ====== ======
Consolidated Cash Flow Statement
Unaudited six months Year ended
ended 30 April 31 October
2001 2000 2000
#'000 #'000 #'000
Cash flow from operating activities 1,082 2,882 3,030
(note 5)
Returns on investments and servicing of
finance (368) (252) (531)
Taxation (241) (136) (668)
Capital expenditure and financial (5,488) (2,325) (4,024)
investment
Acquisitions and disposals - (8,371) (8,319)
Equity dividends paid (367) (244) (426)
---------- ---------- ----------
Cash outflow before use of liquid
resources and financing (5,382) (8,446) (10,938)
Financing (97) (2,958) 12,029
------------ ------------
----------Increase/(decrease) in cash in period (5,479) (11,404)
1,091
------------ ------------ ----------
Consolidated Balance Sheet
Unaudited At
at 30 April 31 October
2001 2000 2000
#'000 #'000 #'000
Fixed Assets
Intangible assets 624 - 640
Tangible assets 37,407 31,743 32,318
----------- ----------- -----------
38,031 31,743 32,958
----------- ----------- -----------
Current Assets
Stocks 6,346 5,212 4,916
Debtors 1,189 1,165 483
Cash at bank and in hand 200 34 230
----------- ----------- -----------
7,735 6,411 5,629
Creditors: amounts falling due within one (15,927) (24,521) (8,907)
year
----------- ----------- -----------
Net current liabilities (8,192) (18,110) (3,278)
----------- ----------- -----------
Total assets less current liabilities 29,839 13,633 29,680
Creditors: amounts falling due after more (4,980) (97) (5,117)
than one year
Provisions for liabilities and charges (102) (140) (102)
----------- ----------- -----------
Net assets 24,757 13,396 24,461
----------- ----------- -----------
Capital and reserves
Equity shareholders' funds 24,757 13,396 24,461
----------- ----------- -----------
Notes
1. The financial information for the six months ended 30 April 2001 and the
comparative figures for the six months ended 30 April 2000 are neither
audited nor reviewed and have been prepared on the basis of the accounting
policies set out in the statutory accounts for the year ended 31 October
2000. This financial information does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985. The financial
information for the year ended 31 October 2000 has been extracted from the
statutory accounts which, together with an unqualified audit report, have
been delivered to the Registrar of Companies.
2. The calculation of earnings per share is based on the profit after tax for
the financial period divided by 9,071,382 ordinary shares, being the
weighted average number of shares in issue (2000 - 6,620,133). The diluted
earnings per share for the period is based on the profit after tax for the
financial period divided by 9,309,055 being the number of potential
ordinary shares calculated in accordance with Financial Reporting Standard
14 (2000 - 6,802,503).
3. The Directors have declared an interim dividend of 2.20p net per ordinary
share. The dividend will be payable on 31 October 2001 to shareholders on
the register at 28 September 2001.
4. In adopting FRS15, the Group has continued its policy to carry tangible
fixed assets at cost.
5. Reconciliation of operating profit to operating cash flow
Unaudited six months Year ended
ended 30 April 31 October
2001 2000 2000
#'000 #'000 #'000
Operating profit 1,001 959 3,187
Depreciation charge 469 311 657
Profit on sale of tangible fixed assets (53) (38) (32)
(Increase)/decrease in stock (1,430) (843) (553)
(Increase)/decrease in debtors (706) (572) 6
Increase/(decrease) in creditors 1,801 3,065 (235)
---------- ---------- -------
Cash flow from operating activities 1,082 2,882 3,030
---------- ---------- -------
6. Reconciliation of net cash flow to movement in net debt
Unaudited six months Year ended
ended 30 April 31 October
2001 2000 2000
#'000 #'000 #'000
Increase/(decrease) in cash in period (5,479) (11,404) 1,091
Cash (inflow)/outflow from debt and
hire purchase - 2,958 (4,887)
Loans acquired with subsidiary - (2,841) -
Hire purchase and finance leases - - (45)
acquired with subsidiary
----------- ----------- -----------
Movement in net debt in the period (5,479) (11,287) (3,841)
Opening net debt (8,856) (5,015) (5,015)
----------- ----------- -----------
Closing net debt (14,335) (16,302) (8,856)
----------- ----------- -----------
7. Copies of this statement will be sent to all shareholders and
will be available from the registered office, Melville Nursery,
Lasswade, Midlothian, EH18 1AZ.
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