Mallett Plc - Final Results
March 13 2000 - 2:30AM
UK Regulatory
RNS Number:1148H
Mallett PLC
13 March 2000
Mallett PLC ("Mallett" or "the Company") - Results for the
year ended 31 December 1999
Dear Shareholder
I am pleased to present to you our 1999 results. In both my
report for last year and in my 1999 interim statement I
indicated that our 1998 results were exceptional and we could
not expect to match them in 1999. In the event our turnover
was down from #18,567,000 to #16,574,000 and our operating
profit was down from #5,136,000 to #4,211,000. The greater
drop in profit as compared to turnover was a factor partly of
the mix in margins between different categories of stock and
also due to the fact that we have few variable costs. In a
three year context, the 1999 operating profit compares
favourably with the corresponding figure of #3,231,000 for
1997.
Our earnings per share were 21.34p as compared to 25.92p for
1998. At the half year stage we increased the interim
dividend from 1.5p to 2.0p per share in order to reduce the
disparity between the interim and final dividends. Despite
the fall in profits in 1999 your board has decided to
recommend an increase in the final dividend from 4.3p to 5.0p
giving a total of 7p for the year as against 5.8p for 1998.
This shows an increase of 20.7% for the year but we believe
still leaves us with a sufficient dividend cover of three
times earnings. Subject to the approval of shareholders at
the Annual General Meeting to be held on 5th May 2000, the
dividend will be paid on 19th May 2000 to shareholders on the
register on 25th April 2000.
In general your company performed well in 1999, particularly
when compared to other firms in its peer group. In response
to its new strategy, the picture department had an excellent
performance selling several important paintings to United
Kingdom museums and private collectors. I reported last year
that we had opened the new 'Great Room' at Bourdon House and
this has enabled us to put on exhibitions and to show to
better advantage some of our more important pieces of stock.
We are attending more specialist fairs throughout the world
and meeting new clients as a result. In 1999 we exhibited at
6 fairs in Europe and the United States and I am glad to say
that they all proved successful. We have a full programme
for 2000 including a first attendance at the Winter Show in
New York in January. A new computerised stock system
including digital photographs of important pieces, will be
introduced during the current year to link our stock system
with our website and to service our clients more effectively.
Recently there has been a lot of comment in the press about
the possibility of a "droite de suite" tax but, since our
business is focussed on antiques rather than 20th century
paintings, we are unlikely to be affected. Similarly we do
not feel that the current problems at the major auction
houses will have adverse repercussions, indeed we could even
benefit in the long term.
I am delighted to report that we have managed to acquire a
highly important private collection of English neo-classical
furniture and objects by Matthew Boulton. This will be
featured as a special exhibition in June with a detailed
catalogue.
The year 2000 has started encouragingly and I feel confident
that the increasing tempo of our activities will produce a
satisfactory outcome.
Once again I would like to thank all members of staff for
their hard work last year.
Rex Cooper
Chairman.
13th March 2000
FOR FURTHER INFORMATION:
Lanto Synge, Chief Executive 020 7499 7411
Mallett PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 December 1999
1999 1998
#'000 #'000
TURNOVER 16,574 18,567
Cost of sales (11,489) (12,463)
---------- ----------
GROSS PROFIT 5,085 6,104
Operating expenses (874) (968)
---------- ----------
OPERATING PROFIT 4,211 5,136
Net interest 76 91
---------- ----------
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 4,287 5,227
TAXATION (1,342) (1,650)
---------- ----------
PROFIT FOR THE FINANCIAL YEAR 2,945 3,577
DIVIDENDS (966) (800)
---------- ----------
Retained profit for the financial 1,979 2,777
year
========== ==========
Earnings per ordinary share 21.34p 25.92p
========== ==========
CONSOLIDATED BALANCE SHEET
at 31 December 1999
1999 1998
#'000 #'000
FIXED ASSETS
Tangible assets 4,107 4,216
CURRENT ASSETS
Stocks 17,448 18,232
Debtors 1,136 809
Bank balances and cash 1,892 97
---------- ----------
20,476 19,138
CREDITORS - amounts falling due
within one year 2,853 3,594
---------- ----------
NET CURRENT ASSETS 17,623 15,544
---------- ----------
TOTAL ASSETS LESS CURRENT 21,730 19,760
LIABILITIES
CREDITORS - amounts falling due
after more than one year - 40
PROVISIONS FOR LIABILITIES AND 47 16
CHARGES
---------- ----------
TOTAL NET ASSETS 21,683 19,704
========== ==========
CAPITAL AND RESERVES
Called up share capital 690 690
Share premium account 5,168 5,168
Revaluation reserve 1,857 1,893
Profit and loss account 13,968 11,953
---------- ----------
21,683 19,704
========== ==========
Net assets per share #1.57 #1.43
========== ==========
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 1999
1999 1998
#'000 #'000
NET CASH INFLOW FROM OPERATING 4,678 793
ACTIVITIES
RETURNS ON INVESTMENT AND SERVICING
OF FINANCE 76 91
TAXATION PAID (1,961) (1,029)
CAPITAL EXPENDITURE AND FINANCIAL
INVESTMENT (52) (350)
EQUITY DIVIDEND PAID (869) (635)
---------- ----------
NET INFLOW/(OUTFLOW) BEFORE USE OF
LIQUID RESOURCES AND FINANCING 1,872 (1,130)
FINANCING - bank and other loans (40) (40)
repaid
---------- ----------
INCREASE/(DECREASE) IN CASH FOR THE 1,832 (1,170)
YEAR
========== ==========
MOVEMENT IN CASH AND CASH
EQUIVALENTS DURING THE YEAR
Increase/(decrease) in cash in the
year and movement 1,832 (1,170)
Net debt at 1 January 1999 (53) 1,117
---------- ----------
Cash and cash equivalents at 31
December 1999 1,779 (53)
========== ==========
NOTES
1. EARNINGS AND NET ASSETS PER SHARE
Earnings and net assets per share have been calculated
on the basis of profit on ordinary activities after
taxation of #2,945,000, net assets of #2,683,000 and on
13,800,060 shares in issue.
2. BASIS OF PREPARATION
The accounts for the twelve months ended 31 December
1999 comply with relevant accounting standards and have
been prepared on a consistent basis using accounting
policies set out in the 1998 Annual Report. The figures
for the twelve months ended 31 December 1998 do not
constitute the company's statutory accounts for that
period but have been extracted from the statutory
accounts which have been filed with the Registrar of
Companies. The auditors have reported on both the 1998
and 1999 accounts and those reports were not qualified
and did not contain a statement under section 237 (2) of
the companies Act 1985.
END
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