Longmead Group PLC - Interim Results
March 20 2000 - 2:01AM
UK Regulatory
RNS Number:5032H
Longmead Group PLC
20 March 2000
CHAIRMAN'S STATEMENT
Trading Results
I am pleased to report that our trading position has improved
compared with the same period last year. Although turnover has
increased only marginally, there have been improvements in
operating efficiency that have increased margins. Turnover rose
slightly to #1.77 million (#1.75 million) but profits before tax
increased to #72,000 (#12,000).
Import penetration continues to be a problem and the strength of
the pound is inhibiting export sales. However, sales in the UK
have been improving despite having lost a small number of accounts
due to cheap foreign imports.
Bathroom Accessories
Sales of bathroom accessories are encouraging with new ranges
being purchased by major customers. Product development has
continued with more new ranges being shown at the Bathroom Show at
the National Exhibition Centre in January. We had a very
successful show and received a good level of orders and enquiries.
Our UK sales force has been strengthened to take advantage of the
increased interest in our products.
In spite of the strength of the pound we are taking a long term
view on exports and have appointed an Export Manager to develop
overseas sales.
Product development continues to be a priority and we are also
increasing our marketing activities with the recruitment of
additional staff.
Door Furniture
Door furniture sales were a little disappointing during the period
but we have recently seen a significant improvement in orders.
New non-ceramic ranges launched in January have produced an
excellent response and we are looking to develop these further.
We have an on-going programme of new product development with new
ranges planned for later in the year. In-house manufacturing is
now having a very beneficial effect on margins.
Dividend
It is your Board's intention to pay the same interim dividend as
last year, i.e. 0.5p per ordinary share. This will be paid on
28th April to shareholders on the register on 31st March.
Balance Sheet
The balance sheet remains strong. We have repaid the penultimate
instalment of the fixed rate medium term loan which will result in
a saving in interest. Borrowing as a percentage of shareholders'
funds (excluding finance leases) remains at less than 30%.
Future Prospects
The results for the half year are just a start towards getting the
Company back to a respectable level of profits. The second half
has started reasonably well and there are a number of good
opportunities for increasing sales and profits.
Our products are now on the Internet and our Website can be
visited at:-
www.longmead-group.co.uk
We have considered two further acquisitions but in both cases we
decided not to proceed. We will however continue our search for
the right opportunity.
I am convinced that, in spite of the strength of the pound, the
increased emphasis we are now putting on our export sales effort
will lead to a significant increase in sales over the next two
years.
In summary, I believe that we have a strong management team in
place, cost control is very good, our new product ranges are being
very well received and we are financially sound. I look forward
to the future with confidence.
R E W Newman
Chairman
20 March 2000
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR 26 WEEKS ENDED 29 JANUARY 2000
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
to to to
29 Jan 30 Jan 31 July
2000 1999 1999
#'000 #'000 #'000
TURNOVER 1,768 1,754 3,425
Costs of Sales (1,195) (1,220) (2,528)
--------- --------- ---------
Gross Profit 573 534 897
Operating Costs (452) (465) (961)
--------- --------- ---------
OPERATING PROFIT/(LOSS) 121 69 (64)
Interest Receivable - 2 1
Interest Payable (49) (59) (107)
-------- --------- --------
PROFIT/(LOSS) ON ORDINARY
ACTIVITIES
BEFORE TAXATION 72 12 (170)
Tax on profit on ordinary (15) (3) 37
activities
-------- -------- --------
PROFIT/(LOSS) ON
ORDINARY ACTIVITIES
BEFORE TAXATION 57 9 (133)
Dividends (18) (18) (36)
-------- -------- --------
RETAINED PROFIT/(LOSS)
FOR THE PERIOD 39 (9) (169)
===== ===== =====
EARNINGS PER SHARE (PENCE) 1.59p 0.26p (3.68)p
There are no recognised gains and losses other than the gains and
losses set out in the profit and loss account.
UNAUDITED CONSOLIDATED BALANCE SHEET
AT 29 JANUARY 2000
Unaudited Unaudited Audited
26 weeks 26 weeks as at
to to
29 Jan 30 Jan 31 July
2000 1999 1999
#'000 #'000 #'000
FIXED ASSETS
Tangible Assets 2,549 2,555 2,583
------- ------- -------
CURRENT ASSETS
Stocks 1,791 1,851 1,807
Debtors 1,015 987 817
Cash at bank and in hand - - -
------- ------- -------
2,806 2,838 2,624
CREDITORS: amounts
falling due within one year (1,390) (1,176) (1,122)
-------- -------- ---------
NET CURRENT ASSETS 1,416 1,662 1,502
-------- -------- ---------
TOTAL ASSETS LESS
CURRENT LIABILITIES 3,965 4,217 4,085
CREDITORS: amounts
falling due after one year (535) (678) (694)
PROVISIONS FOR
LIABILITIES & CHARGES (80) (68) (80)
------- ------- -------
3,350 3,471 3,311
==== ==== ====
CAPITAL AND RESERVES
Called up share capital 361 361 361
Share premium account 1,225 1,225 1,225
Revaluation reserve 289 294 292
Profit and loss account 1,475 1,591 1,433
------- ------- -------
TOTAL EQUITY
SHAREHOLDERS' FUNDS 3,350 3,471 3,311
==== ===== =====
UNAUDITED CASH FLOW STATEMENT
FOR 26 WEEKS ENDED 29 JANUARY 2000
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
to to to
29 Jan 30 Jan 31 July
2000 1999 1999
#'000 #'000 #'000
CASH FROM OPERATING
ACTIVITIES (Note 1) 99 97 287
Returns on investment and
servicing of finance (46) (59) (108)
Taxation - - (30)
Capital expenditure and
financial investment (64) 10 (55)
Equity dividends paid - (72) (90)
------- ------- -------
NET CASH (OUTFLOW)/INFLOW
BEFORE FINANCING (11) (24) 4
Financing - (decrease) in debt (180) (172) (225)
------- ------- -------
(DECREASE) IN CASH (191) (196) (221)
==== ==== ====
Note 1: Reconciliation of operating profit to net cash inflow
from operating activities
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
to to to
29 Jan 30 Jan 31 July
2000 1999 1999
#'000 #'000 #'000
Operating profit/(loss) 121 69 (64)
Depreciation 117 106 219
(Profit) on sale of fixed assets (2) (18) (19)
Decrease/(increase) in stock 17 (7) 37
(Increase)/decrease in debtors (247) (89) 129
Increase/(decrease) in creditors 93 36 (15)
------- ------- -------
99 97 287
==== ==== ====
Note 2: Reconciliation of net cash flow to movement in net debt
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
to to to
29 Jan 30 Jan 31 July
2000 1999 1999
#'000 #'000 #'000
(Decrease)/increase in cash in (191) (196) (221)
the period
Cash inflow/(outflow) from
increase
in debt and lease and hire 180 172 225
purchase financing
------ ------ -------
(11) (24) 4
New finance lease and hire
purchase obligations (18) (51) (124)
------- ------- ------
Movement in net debt in period (29) (75) (120)
Net debt at beginning of period (1,106) (986) (986)
-------- ------- -------
Net debt at end of period (1,135) (1,061) (1,106)
===== ===== =====
ANALYSIS OF NET DEBT
At Cash Other At 29
31 July Flow non- January
cash
1999 changes 2000
#'000 #'000 #'000 #'000
Cash - - - -
Overdraft (191) (191) - (382)
------ ------- ------- -------
(191) (191) - (382)
Debt due within (150) 135 (135) (150)
one year
Debt due after (570) - 135 (435)
one year
Finance leases (195) 45 (18) (168)
------ ------ ------- -------
TOTAL (1,106) (11) (18) (1,135)
===== ===== ===== =====
Note 3: Earnings per share
The earnings per ordinary share is calculated on the profit on
ordinary activities after taxation and on a weighted average of
ordinary shares in issue of 3,609,391 in the period (26 weeks to
30 January 1999: 3,609,391 and 52 weeks to 31 July 1999:
3,609,391).
Note 4: Preparation of interim financial statements
These unaudited interim financial statements have been prepared on
the basis of the accounting policies set out in the Group's 1999
statutory financial statements.
Note 5: Copies of the interim statement will be sent to
shareholders in due course. Further copies of the announcement
are available from the registered office of The Longmead Group,
Millwey Industrial Estate, Axminster, Devon, EX13 5HU and from the
Company's nominated adviser, Smith & Williamson, at 1 Riding House
Street, London, W1A 3AS.
END
IR SFLFLWSSSEID
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