RNS Number:6856X
Dobbies Garden Centres PLC
25 June 2002
DOBBIES GARDEN CENTRES plc
Interim Results for the Six Months ended 30 April 2002
Highlights
• Sales £18.0m up 51%
• Like-for-like sales to mid June up 10.2%
• Operating profit £2.17m up 117%
• Profit before tax £1.66m* up 152%
• Earnings per share 12.01p* up 136%
• Interim dividend 2.40p per share
• 55,000 sq. ft. centre opened in Preston
• New garden centre under construction at Perth
*Excludes gain on sale of properties
Chairman, Alex Hammond-Chambers, said: "Our sales during these six months
increased by 51% against the same period last year, rising from £11.9 million to
£18.0 million. The main reasons behind these excellent numbers include a full
half year for the expanded centres at Milngavie and Shrewsbury, the sales for
Atherstone which was acquired in September last year and excellent trading
conditions for the rest of the Group's centres."
Enquiries:
James Barnes, Chief Executive
Sharon Brown, Finance Director
Dobbies Garden Centres plc Tel: 0131 663 6778
Jonathon Brill, Director
Caroline Sturdy, Associate Director
Bell Pottinger Financial Tel: 020 7861 3232
Chairman's Statement
First Half Sales
I am happy to be able to report yet further progress made by your Company in the
half year to 30th April 2002. Our sales during these six months increased by 51%
against the same period last year, rising from £11.9 million to £18.0 million.
The main reasons behind these excellent numbers include a full half year for the
expanded centres at Milngavie and Shrewsbury, the sales for Atherstone which was
acquired in September last year and excellent trading conditions for the rest of
the Group's centres, enjoying as they did some good weather.
In fact the year so far has been more or less the reverse of last year. Last
year we experienced one of the wettest springs on record but May and June were
excellent, receiving the benefit of some of the frustrated demand thrown forward
from the Spring. This year the spring weather was good but May and June's
weather (to date) has been cold and wet. Having said that, the larger scale
format of our stores does help to make them less weather dependent, and the
like-for-like sales performance over the 71/2 months has been a satisfactory
increase of 10.2%. We have highlighted the like-for-like figures over this
longer period because they provide a better guide to how sales growth is
progressing for the full year than does the shorter six-month period.
Profits and Dividend
The pre-tax profits that resulted from our trading and which exclude the gain on
the property disposal, amounted to £1.66 million, a rise of 152% compared to the
£0.66 million earned last year. To this is added the profit of £2.13 million
made on the sale of our leasehold property at Perth. It was a one off but large
transaction which did not relate to the Company's day to day trading;
accordingly we have also shown the earnings per share figure excluding the Perth
profit.
Your Board of Directors has declared an interim dividend of 2.40p per ordinary
share, payable to shareholders on 31 October 2002.
Company Developments
As I mentioned above, we have sold our lease of the Perth centre; we are
currently in the process of building a new garden centre across the road on the
United Auctions site, which we anticipate will be open for business in August
and which will have more than twice the selling space of the previous one. We
are working on plans to redevelop the centre at Atherstone which, once
completed, will be the largest centre in our portfolio, measuring about 80,000
sq. ft; we plan to have a number of visitor attractions to go with it, thus
making it a destination which we believe will draw customers from a large area
including Birmingham, Coventry and Leicester. And finally, we opened our latest,
most up-to-date, 55,000 sq. ft. centre in Clifton, which lies between Preston
and Blackpool; trading in this new centre has got off to a good start.
I have emphasised in past statements the importance of building our management
alongside the development of our physical properties. During this half year
period we have made appointments in the property, buying, merchandising and
finance areas of the business; we are excited about the new members of our team
and believe that they will make important contributions to our performance in
the future - as well as expand our capacity to manage and at the same time grow
the existing business. As always our team, headed by James Barnes, Johnny
Trotter and Sharon Brown, has worked very hard and produced the good results,
which I am fortunate enough to be able to report: thank you. Given these
developments - unforeseen events aside - we expect to be able to report, in
February 2003, further progress in sales and profits for the full year.
Alex Hammond-Chambers
Chairman
Consolidated Profit & Loss Account
Unaudited six months Year ended
ended 30 April 31 October
2002 2001 2001
restated restated
£'000 £'000 £'000
Turnover 17,970 11,895 30,450
Cost of sales (9,582) (6,365) (16,377)
-------------- -------------- --------------
Gross profit 8,388 5,530 14,073
Administrative and selling expenses (6,567) (4,849) (11,010)
Other operating income 349 320 651
-------------- -------------- --------------
Operating profit 2,170 1,001 3,714
Profit on sale of properties 2,130 - -
-------------- -------------- --------------
Profit on ordinary activities before interest 4,300 1,001 3,714
Interest payable and similar charges (511) (342) (790)
-------------- -------------- --------------
Profit on ordinary activities before taxation 3,789 659 2,924
Tax on ordinary activities (503) (198) (939)
-------------- -------------- --------------
Profit on ordinary activities after taxation 3,286 461 1,985
Dividends (245) (200) (636)
-------------- -------------- --------------
Profit for the period 3,041 261 1,349
Basic earnings per share 34.15p 5.09p 21.78p
Adjustment for profit on sale of properties (22.14p)
Adjusted basic earnings per share 12.01p 5.09p 21.78p
Diluted earnings per share 33.85p 4.96p 21.22p
Adjustment for profit on sale of properties (21.94p)
Adjusted diluted earnings per share 11.91p 4.96p 21.22p
Dividend per share 2.40p 2.20p 6.65p
Shares in issue (weighted average) 9,621.923 9,071,382 9,111,667
Consolidated Balance Sheet
Unaudited At
At 30 April 31 October
2002 2001 2001
restated restated
£'000 £'000 £'000
Fixed Assets
Intangible assets 747 602 767
Tangible assets 48,243 37,429 44,512
------------ ------------ ------------
48,990 38,031 45,279
------------ ------------ ------------
Current Assets
Stocks 7,565 6,346 6,939
Debtors 1,544 1,189 715
Cash at bank and in hand 283 200 281
------------ ------------ ------------
9,392 7,735 7,935
------------ ------------ ------------
Creditors: amounts falling due
within one year (14,812) (15,927) (20,082)
------------ ------------ ------------
Net current liabilities (5,420) (8,192) (12,147)
------------ ------------ ------------
Total assets less current liabilities 43,570 29,839 33,132
Creditors: amounts falling due after
more than one year (11,964) (4,980) (4,960)
Provisions for liabilities and charges (811) (462) (723)
------------ ------------ ------------
Net assets 30,795 24,397 27,449
------------ ------------ ------------
Capital and reserves
Equity shareholders' funds 30,795 24,397 27,449
------------ ------------ ------------
Reconciliation of Movements in Shareholders' Funds
Unaudited six months Year ended
ended 30 April 31 October
2002 2001 2001
£'000 £'000 £'000
Profit for the financial period 3,286 461 1,985
Dividends (245) (200) (636)
New share capital subscribed 25 - 48
Share premium arising (net) 280 - 1,916
Prior year adjustment - per note 6 (325) (325)
------------ ------------ ------------
3,346 (64) 2,988
Opening shareholders' funds 27,449 24,461 24,461
------------ ------------ ------------
Closing shareholders' funds 30,795 24,397 27,449
------------ ------------ ------------
Consolidated Cash Flow Statement
Unaudited six months Year ended
ended 30 April 31 October
2002 2001 2001
£'000 £'000 £'000
Cash flow from operating activities (note 4) 4,074 1,082 3,131
Returns on investment and servicing of finance (479) (368) (808)
Taxation (257) (241) (602)
Capital expenditure and financial investment (4,545) (5,488) (8,707)
Acquisitions and disposals 2,250 - (4,355)
Equity dividends paid (436) (367) (577)
------------ ------------ ------------
Cash inflow/(outflow) before use of liquid resources
and financing 607 (5,382) (11,918)
Financing 139 (97) 2,233
------------ ------------ ------------
Increase/(decrease) in cash in period 746 (5,479) (9,685)
------------ ------------ ------------
Notes
1. The financial information for the six months ended 30 April 2002 and the
comparative figures for the six months ended 20 April 2001 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
2001 but subject to the implementation of FRS19 per note 6 below. 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 2001 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 9,621,923 ordinary shares, being the
weighted average number of shares in issue. The diluted earnings per share
for the period is based on the profit after tax for the financial period
divided by 9,707,204, being the number of potential ordinary shares
calculated in accordance with Financial Reporting Standard 14. The
comparatives have been restated in respect of FRS 19 per note 6.
3. The Directors have declared an interim dividend of 2.4p per ordinary share.
The dividend will be payable on 31 October 2002 to shareholders on the
register at 27 September 2002.
4. Reconciliation of operating profit to operating cash flow
Unaudited six months Year ended
ended 30 April 31 October
2002 2001 2001
£'000 £'000 £'000
Operating profit 2,170 1,001 3,714
Depreciation charge 695 447 918
Goodwill amortisation 20 22 44
Profit on sale of tangible fixed assets - (53) (61)
(Increase)/decrease in stock (626) (1,430) (1,596)
(Increase)/decrease in debtors (829) (706) (232)
Increase/(decrease) in creditors 2,644 1,801 344
---------- ---------- ----------
Cash flow from operating activities 4,074 1,082 3,131
---------- ---------- ----------
5. Reconciliation of net cash flow movement in net debt
Unaudited six months Year ended
ended 30 April 31 October
2002 2001 2001
£'000 £'000 £'000
Increase/(decrease) in cash in period 746 (5,479) (9,685)
Cash (inflow)/outflow from debt and
hire purchase 112 - 112
Additional term loan arrangement fee - - 20
Loan notes redeemed/(issued) 54 - (381)
---------- ---------- ----------
Movement in net debt in the period 912 (5,479) (9,934)
---------- ---------- ----------
Opening net debt (18,790) (8,856) (8,856)
---------- ---------- ----------
Closing net debt (17,878) (14,335) (18,790)
---------- ---------- ----------
6. Deferred taxation is now stated on a full liability basis in
accordance with FRS19 and comparative financial information has been
restated as necessary. The impact of adopting FRS19 was to increase the
tax charge for the six months ended 30 April 2002, the six months ended
30 April 2001 and the year ending 31 October 2001 by £88,000, £35,000
and £296,000 respectively. Deferred tax has not been provided on any
potential profit on the sale of properties as any gain will be
rolled-over.
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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