Interim Results
March 29 2001 - 12:28PM
UK Regulatory
RNS Number:3383B
Longmead Group PLC
29 March 2001
LONGMEAD GROUP PLC
Interim Results
for the six months ended 27 January 2001
CHAIRMAN'S STATEMENT
Trading Results
The last six months have seen significant changes in the D-I-Y sector which
have had a major impact on our business. All our large D-I-Y customers have
been affected by changes of ownership which has meant that trading with them
has been particularly difficult over the last few months. Turnover for the
period was #1.54 million (2000: #1.77 million) and profit before tax and
exceptional items was #12,000 (2000: #72,000).
In view of the changes mentioned above your Board decided to carry out a
complete review of all product ranges and to make provisions, where
appropriate, for stock which we now consider to be slow moving or obsolete.
Accordingly the results for the half year include exceptional costs of #
540,000 relating to stock provisions. Details of the reasons for the stock
provisions are listed below.
The overall result of these provisions is to show a loss after exceptional
items of #528,000.
Exceptional Items
As reported above, the exceptional items in the half year results, amounting
to #540,000, relate to stock write offs and provisions. Your Board considers
it prudent to make a substantial stock provision for the following reasons:-
* the reorganisation within the D-I-Y industry will result in significant
changes to product ranges within stores. A number of our ranges are being
discontinued to be replaced by others and this will result in products and
packaging becoming obsolete.
* we are in the process of completely overhauling our product offering to
General Trade customers and certain ranges will be changed. Provision has
been made for a write off of finished goods, work in progress and
packaging.
* the research which we have carried out into export markets indicates
that some product ranges need to be changed in order to meet the market's
requirements and we have therefore made provisions against the stock of
ranges which we propose to discontinue.
* we have also introduced new ranges of door furniture to meet the
changing needs of the market place. A number of door furniture products
are being discontinued and provision is being made to enable us to write
down old stocks to clear them.
Bathroom Accessories
In my last statement I reported on the steps we had taken to broaden our
product ranges by including chrome and gold metal accessories, primarily
sourced from the Far East. I believe that this will turn out to be an
excellent diversification but, as reported previously, it will take some time
to see the full benefits. Lead times from the Far East are over three months
which means there has not been much impact on our results in the first half.
We needed first to evaluate all the product ranges we acquired and this has
now been done. We have made many improvements and additions and we believe we
now have an excellent product offering. Substantial orders have been placed
with our suppliers which are due to be delivered over the next few weeks.
We have also reviewed all our ranges of ceramic products and some have been
changed. A completely new consumer catalogue will be available shortly which
we are confident will lead to a general improvement in sales.
The restructuring in the D-I-Y industry, although painful in the short term,
will we believe lead to additional opportunities in the bathroom sector in the
months ahead.
Door Furniture
The market for these products remains difficult with increased penetration
from imported products. This area has also been affected by the
re-organisations in the D-I-Y industry and we are working with our customers
to rationalise ranges.
Product development has continued in this area and we are increasing the
number of products which we import.
Balance Sheet
The Balance Sheet remains strong in spite of the stock provisions made.
Unaudited net assets per share are 76p and, although the stock provisions have
adversely affected our gearing, bank borrowings as a percentage of shareholder
funds were still only 42% at the half year end.
Dividend
In view of the Interim Results your Board does not consider it prudent to pay
an interim dividend.
Future Prospects
Although trading conditions in the last two years have been very difficult and
the financial results unsatisfactory, we believe that the future does provide
improved opportunities.
* the changes which have taken place in the D-I-Y industry are likely to
benefit the Company in the longer term
* we are now offering a much broader range of products to our General
Trade customers with the addition of the metal bathroom accessory ranges
* we have persisted with our export sales effort and there are now signs
that our efforts will start to show some results by the end of the
calendar year.
Much hard work lies ahead but your board is committed to returning the Company
to a satisfactory level of profit as soon as possible.
R E W Newman
Chairman
29 March 2001
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR 26 WEEKS ENDED 27 JANUARY 2001
Unaudited 26 weeks to 27 Jan 2001
Before Exceptional Unaudited Audited
Exceptional Item Total 26 weeks 26 weeks to
to
Item 29 Jan 29 July
2000 2000
#'000 #'000 #'000 #'000 #'000
TURNOVER 1,545 - 1,545 1,768 3,142
Cost of Sales (1,020) (540) (1,560) (1,195) (2,183)
______ ______ ______ ______ ______
Gross 525 (540) (15) 573 959
Profit/(Loss)
Operating (460) - (460) (452) (944)
Costs
______ ______ ______ ______ ______
OPERATING 65 (540) (475) 121 15
PROFIT
/(LOSS)
Interest 2 - 2 - -
Receivable
Interest (55) - (55) (49) (97)
Payable
______ ______ ______ ______ ______
PROFIT/ 12 (540) (528) 72 (82)
(LOSS) ON
ORDINARY
ACTIVITIES
BEFORE
TAXATION
===== =====
Tax on 48 (15) 13
profit on
ordinary
activities
_____ _____ _____
PROFIT/ (480) 57 (69)
(LOSS) ON
ORDINARY
ACTIVITIES
BEFORE
TAXATION
Dividends - (18) (18)
______ _____ ______
RETAINED (480) 39 (87)
PROFIT/
(LOSS) FOR
THE PERIOD
===== ===== =====
(LOSS)/ (13.29)p 1.59p (1.90)p
EARNINGS PER
SHARE (PENCE)
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 27 JANUARY 2001
Unaudited Unaudited Audited
as at as at as at
27 Jan 29 Jan 29 July
2001 2000 2000
#'000 #'000 #'000
FIXED ASSETS
Tangible Assets 2,428 2,549 2,523
_____ _____ _____
CURRENT ASSETS
Stocks 1,579 1,791 1,921
Debtors 666 1,015 623
Cash at bank and in hand 2 - 3
_____ ______ ______
2,247 2,806 2,547
CREDITORS: amounts falling due within one (966) (1,390) (1,271)
year
______ _______ _______
NET CURRENT ASSETS 1,281 1,416 1,276
______ _______ _______
TOTAL ASSETS LESS 3,709 3,965 3,799
CURRENT LIABILITIES
CREDITORS: amounts falling due after one (965) (535) (527)
year
PROVISIONS FOR LIABILITIES & CHARGES - (80) (48)
_____ _____ _____
2,744 3,350 3,224
==== ==== ====
CAPITAL AND RESERVES
Called up share capital 361 361 361
Share premium account 1,225 1,225 1,225
Revaluation reserve 284 289 287
Profit and loss account 874 1,475 1,351
_____ _____ _____
TOTAL EQUITY SHARE-HOLDERS' FUNDS 2,744 3,350 3,224
==== ==== ====
UNAUDITED CASH FLOW STATEMENT
FOR 26 WEEKS ENDED 27 JANUARY 2001
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks to
to to
27 Jan 29 Jan 29 July
2001 2000 2000
#'000 #'000 #'000
CASH FROM OPERATING ACTIVITIES (Note 1) (134) 99 250
Returns on investment and servicing of (61) (46) (98)
finance
Taxation 46 - -
Capital expenditure and financial investment (13) (64) (102)
Equity dividends paid - - (36)
____ _____ _______
NET CASH (OUTFLOW)/ INFLOW BEFORE FINANCING (162) (11) 14
Financing - Increase/ (decrease) in debt 379 (180) (231)
_____ _____ _____
INCREASE/ (DECREASE) IN CASH 217 (191) (217)
==== ==== =====
NOTES TO THE ACCOUNTS
Note 1: Reconciliation of operating profit to net cash inflow from operating
activities
Unaudited Unaudited Audited
26 weeks to 26 weeks to 52 weeks to
27 Jan 2001 29 Jan 2000 29 July 2000
#'000 #'000 #'000
Operating (loss)/profit (475) 121 15
Depreciation 106 117 232
Loss/(profit) on sale of fixed assets 2 (2) (5)
Decrease/(increase) in stock 342 17 (114)
(Increase)/decrease in debtors (91) (247) 175
(Decrease)/increase in creditors (18) 93 (53)
____ ______ _____
(134) 99 250
==== ===== ====
Note 2: Reconciliation of net cash flow to movement in net debt
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
to to to
27 Jan 29 Jan 29 July
2001 2000 2000
#'000 #'000 #'000
Increase/(decrease) in cash in the period 217 (191) (217)
Cash (outflow)/inflow from increase in debt and (379) 180 231
lease and hire purchase financing
____ _____ ____
(162) (11) 14
New finance lease and hire purchase obligations - (18) (66)
____ ____ ____
Movement in net debt in period (162) (29) (52)
Net debt at beginning of period (1,158) (1,106) (1,106)
_____ _____ _____
Net debt at end of period (1,320) (1,135) (1,158)
===== ===== =====
ANALYSIS OF NET DEBT
At Cash Other At
29 July Flow non-cash 27 Jan
2000 changes 2001
#'000 #'000 #'000 #'000
Cash 3 (1) - 2
Overdraft (412) 218 - (194)
_____ _____ _____ ______
(409) 217 - (192)
Debt due within one year (150) 135 (85) (100)
Debt due after one year (420) (565) 85 (900)
Finance leases (179) 51 - (128)
_____ ____ ____ _____
TOTAL (1,158) (162) - (1,320)
===== ==== ==== =====
Note 3: Earnings per share
The (loss)/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 29 January 2000: 3,609,391 and
52 weeks to 29 July 2000: 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 2000 statutory financial
statements.
Note 5: Copies of the Accounts
Copies of the interim accounts will be sent to shareholders. Further copies
will be available from the Company's head office at 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.
29 March 2001
Longmead (LSE:LGM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Longmead (LSE:LGM)
Historical Stock Chart
From Jul 2023 to Jul 2024
