RNS Number:8484Y
Dobbies Garden Centres PLC
14 February 2001
Dobbies Garden Centres plc
DOBBIES GARDEN CENTRES plc
Preliminary Results for the year ended 31 October 2000
* Turnover at #23.6 million -up 49%
* Like for like sales -up 11%
* Profit before tax #2.6 million -up 34%
* Earnings per share at 25.0p -up 14%
* Final dividend of 4.05p, making a total of
6.05p - up 10%
* 5 new centres added during the year (now totaling 15),
confirming number two position in the market.
"While the prospects for the garden leisure industry as a whole
continue to be very positive, we are even more excited about
our own prospects within it. Our new format stores are all
trading successfully and this Spring we will open major
redevelopments at Milngavie, Glasgow and Bayston Hill,
Shrewsbury.
"The current year has started well, with like for like sales
growth at the end of January of 14%."
James Barnes, Chief Executive
Enquiries:
Dobbies Garden Centres plc
Alex Hammond Chambers, Chairman Tel: 0131 222 9430
James Barnes, Chief Executive Tel: 0131 663 1941
Bell Pottinger Financial
Jonathon Brill Tel: 020 7353 9203
Chairman's Statement
I am happy to report that, following the most significant
expansion in the company's history, Dobbies is now the UK's
second largest garden centre retailer. Although, by quoted
stock market standards, we must still be regarded as a small
company, such is the fragmentation of the garden centre
business that, with 15 centres, we are number two. I would
like to think, however, that in many other respects we are the
leaders in our business, especially in the development of large
state-of-the-art garden centres retailing a broad range of
house and garden goods.
This expansion was made possible by two most important
developments in the year. The first of these was a placing and
open offer, which raised #10 million, nearly doubling our
shareholders' investment in the Company. The second was the
acquisition of Findlay Clark Ltd and its four garden centres,
an event which confirmed our market leading position in
Scotland. A further purchase, of the Clifton Garden Centre,
near Preston, was another welcome addition to our portfolio.
As a consequence of this expansion, and of our own internal
growth, we achieved sales for the full year of #23 million
(+49%), profits before tax of #2.6 million (+ 34%) and earnings
per share (diluted by the placing) of 25.0p (+14%). James
Barnes and Sharon Brown, who was appointed our Finance Director
during the year, provide further details of the year's
performance in their own reviews.
Dividend and AGM
The Board of Directors is recommending to shareholders a final
dividend of 4.05p per share which, if approved, will be paid on
the 30th April 2001. This gives a total dividend for the year
of 6.05p (5.5p in 1999). The AGM will be held at the Company's
new offices at Melville Garden Centre, just outside Edinburgh,
at 12 noon on Tuesday 10th April 2001. I urge as many
shareholders as possible to attend. A notice convening the AGM
will be sent separately to shareholders.
Alternative Investment Market (AIM) Listing
In last year's review, I stated that your Company would be
seeking a full listing on the London Stock Exchange this year.
However, recent Government legislation, restricting capital
gains tax to only 10% for shares listed on the Alternative
Investment Market (AIM) held for four full tax years or more,
makes AIM a more attractive market for Dobbies to be listed on
at present. Consequently, we will remain listed on AIM for the
foreseeable future.
Building our management team
To ensure we are able to continue growing the business, we have
invested considerable resources in the development of our
management team throughout the year. This has included both
the training and empowerment of our current staff and the
hiring of individuals who can contribute to our growth.
Although we are conscious of the need to control our central
overhead, continued investment in, and development of, the team
is essential to support our long term growth objectives.
As part of the culture of the Company, we encourage employees
to be long term shareholders and we currently offer two
shareholder incentive plans for executive directors and for
senior management.
The previous executive Directors' share plan has now expired
and we are looking to introduce a new one, although it is the
Directors' intention to keep some of the options aside for
future executive Directors. We would also like to introduce a
Share Save Scheme for all employees. We will be seeking
shareholder approval for these at the forthcoming AGM.
We were very pleased to have announced the appointment of
Sharon Brown as our Finance Director earlier in the year. In
her short time at Dobbies, Sharon has made a significant
contribution to our progress and, on behalf of all
shareholders, I would like to thank her, James Barnes, Johnny
Trotter and all the staff for their hard work and commitment,
without which we could not have achieved what we have.
Prospects
The programme for this year focuses on the redevelopment of our
centres at Milngavie and Shrewsbury, further development of our
Christmas sales (which have been doing very well) and finally
continuing development of the merchandising at all of our
centres, in order to improve our sales per square foot. As a
consequence of increasing our square footage and improving its
productivity, I am confident that, except for the occurrence of
unforeseen events, we will be able to report higher sales and
profits in a year's time.
Alex Hammond Chambers
Chairman
Chief Executive's Review
This year, has once again, seen major progress in the
development of your Company with, perhaps, the most significant
event being the acquisition of Findlay Clark Ltd. At #5.8
million, this was our largest acquisition to date and has given
the Company access to a number of important new locations,
particularly north Glasgow and Aberdeen. The purchase has
consolidated our position as Scotland's leading garden
retailer.
A further acquisition in the year was Clifton Garden Centre in
Preston, where we already have planning permission to develop a
new centre of 55,000 sq.ft. These acquisitions bring our total
number of stores to 15, making us the second largest garden
centre operator in the UK. We believe our policy of acquiring
and developing large-scale destination centres is the right one
for the business and at year end four stores matched this
criteria. This year two more stores, at Glasgow and
Shrewsbury, will come on stream; Preston will be completed by
Spring 2002 and, of our other existing sites, two have
potential for redevelopment to superstore status.
Expansion and Investment
While geographical expansion remains a core policy, so does
investment in existing stores, and this year we committed #3.8
million on these sites. Major projects included the
redevelopment of our Birtley store, where sq. footage was
increased by 57% to 30,000 sq.ft, and the addition of some
8,000 sq.ft at our Edinburgh store to incorporate new retail
sale space and a new restaurant (where covers nearly doubled to
310).
The importance of a quality catering offer should not be
underestimated and, to underline our commitment to this area of
our business, we have brought back under our own management two
of our major catering enterprises this year. Within the Group,
our catering sales now equate to 9% of turnover.
We also acquired the freehold of two of our centres this year
on an earnings-enhancing basis, which means that we now own 90%
of our centres.
The benefit of last year's capital spend will materialize over
the coming years. The historic levels of investment and the
quality of our stores has yielded above average like for like
growth (11% in 2000).
The placing and open offer in the Spring of last year raised
#10 million net and will allow us to continue our growth both
by acquisition and development.
People
We have continued to develop our head office team in line with
our policy of growth. The integration of Findlay Clark has gone
well and we have been able to fill a number of key positions in
the field of personnel, finance and IT with knowledgeable and
experienced staff. Staff levels now total 720 and I would like
to add my thanks to those of our Chairman to all our staff for
the effort they have put in over the past year. To accommodate
additional staff, and the need for improved communication
systems, we are currently building new company headquarters on
our Edinburgh site. Ready for occupation in the Spring, the
new building will also allow us to convert our existing office
space into additional garden centre retail use.
Buying and Merchandising
Merchandising is key to any retail business and I am pleased to
say that major improvements have been achieved in this area
over the year. Our product range has improved and expanded
significantly, particularly in glass and chinaware and in our
Christmas offer. Plants remain the core product of our
business and we continue to develop our range.
Outlook
While the prospects for the garden leisure industry as a whole
continue to be very positive, we are even more excited about
our own prospects within it. Our new format stores are all
trading successfully and this Spring we will open major
redevelopments at Milngavie, Glasgow and Bayston Hill,
Shrewsbury.
The current year has started well, with like for like sales
growth at the end of January of 14%.
James Barnes
Chief Executive
Consolidated Profit and Loss Account
Year ended 31 October
2000 1999
#000 #000
Turnover
Continuing operations 19,114 15,832
Acquisitions 4,477 -
---------- ----------
23,591 15,832
Cost of sales (12,667) (8,583)
---------- ----------
Gross profit 10,924 7,249
Administrative and selling
expenses (8,279) (5,623)
Other operating income 542 517
---------- ----------
Operating profit 3,187 2,143
Interest payable and similar
charges (575) (197)
---------- ----------
Profit on ordinary activities
before taxation 2,612 1,946
Tax on profit on ordinary
activities (651) (490)
---------- ----------
Profit on ordinary activities
after taxation for the
financial year 1,961 1,456
Dividends (549) (364)
---------- ----------
Retained profit 1,412 1,092
---------- ----------
There are no recognised gains or losses for the financial year
other than as stated above.
Earnings per share
Basic 25.00p 22.00p
Diluted basis 24.28p 21.49p
Consolidated Balance Sheet
Year ended 31 October
2000 1999
#000 #000
Fixed assets
Intangible assets 640 -
Tangible assets 32,318 17,788
---------- ----------
32,958 17,788
Current assets
Stocks 4,916 3,141
Debtors 483 418
Cash at bank and in hand 230 209
---------- ----------
5,629 3,768
Creditors: amounts falling due
within one year (8,907) (8,199)
---------- ----------
Net current liabilities (3,278) (4,431)
---------- ----------
Total assets less liabilities 29,680 13,357
Creditors: amounts falling due
after more than one year (5,117) (197)
Provisions for liabilities and
charges (102) (140)
---------- ----------
24,461 13,020
---------- ----------
Equity capital and reserves
Called up share capital 907 662
Share premium account 18,709 8,925
Profit and loss account 4,845 3,433
---------- ----------
Equity shareholders' funds 24,461 13,020
---------- ----------
These financial statements were approved by the Board of
Directors on 13 February 2001.
Consolidated Cash Flow Statement
Year ended 31 October
2000 2000 1999 1999
#000 #000 #000 #000
Net cash inflow from
operating activities 3,030 2,562
Returns on investments
and servicing of
finance (531) (211)
Taxation (668) (440)
Capital expenditure and
financial investment (4,024) (3,645)
Acquisitions and
disposals (8,319) (3,003)
-------- -------
Net cash outflow from
investing activities (12,343) (6,648)
Dividends paid (426) (342)
-------- -------- ------- -------
Net cash outflow before
financing (10,938) (5,079)
Financing 12,029 (93)
-------- -------
Increase/(decrease) in
cash in the year 1,091 (5,172)
-------- -------
Reconciliation of net cash flow to movement in net debt/funds
Increase/(decrease) in
cash in the year 1,091 (5,172)
Cash (inflow)/outflow from
debt and hire purchase (4,887) 93
Hire purchase and finance
leases acquired with
subsidiary (45) -
------- -------
Movement in net debt in
the year (3,841) (5,079)
Opening net (debt)/funds (5,015) 64
------- -------
Closing net debt (8,856) (5,015)
------- -------
Notes
1. The calculation of earnings per share is based on the
profit after tax of #1,961,000 (1999 :#1,456,000) and on
7,844,924 ordinary shares being the weighted average
number of ordinary shares during the year ended 31 October
2000 (1999: 6,618,882).
2. The financial information set out above does not
constitute statutory accounts as defined in section 240 of
the Companies Act 1985. The audited accounts for the year
ended 31 October 1999 have been filed with the Registrar
of Companies. The auditors reported on these accounts;
their report was unqualified and did not contain a
statement under Section 237 (2) or (3) Companies Act 1985.
The statutory accounts for the year 31 October 2000 will
be finalised on the basis of the financial information
presented by the Directors in this Preliminary
Announcement and will be delivered to the Registrar of
Companies following the Company's AGM.
3. The directors propose a final dividend of 4.05p per
ordinary share, to be paid on 30 April 2001 to
shareholders on the register at the close of business on
30 March 2001.
4. This preliminary announcement is not being posted to
shareholders, but a full Annual Report will be despatched
to shareholders shortly. The Annual General Meeting will
be held on 10 April 2001.
Reconciliation of operating profit to net cash in flow
from operating activities
2000 1999
#000 #000
Operating Profit 3,187 2,143
Depreciation Charges 647 425
Goodwill amortisation 10 -
Profit on sale of tangible fixed
assets (32) (4)
Increase in Stocks (553) (181)
Decrease/(Increase in debtors) 6 (111)
(Decrease)/Increase in creditor (235) 290
---------- ----------
Net cash inflow from operating
activities 3,030 2,562
---------- ----------
Analysis of cash flows 2000 1999
#000 #000
Returns on Investment and
servicing of finance
Interest Paid (531) (208)
Interest element of hire purchase
repayments - (3)
---------- ----------
Net cashflow from returns on
investments and servicing of
finance (531) (211)
---------- ----------
Capital expenditure and financial
investments
Purchase of tangible fixed assets (4,081) (3,669)
Sale of tangible fixed assets 57 24
---------- ----------
Net cash outflow from capital
expenditure and financial
investments (4,024) (3,645)
---------- ----------
Dobbies Garden Centres (LSE:DGC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Dobbies Garden Centres (LSE:DGC)
Historical Stock Chart
From Jul 2023 to Jul 2024
