RNS Number:3166L
Walker (Thomas) PLC
31 October 2006
Thomas Walker PLC
Preliminary Statement on the Results for the Year ending 30 June 2006
The 2006 results for Thomas Walker PLC have benefited from a six month
contribution from the purchase of the business and certain assets of Leslie
Group Ltd (in administration). This was the principal factor in a 39% increase
in turnover to #7,328,379 for the year (2005 - #5,265,563).
Profit Before Tax more than trebled to #252,603 (2005 - #67,995). More
indicative of the underlying improvements is the fourfold rise in the Trading
Profit, which is Operating Profit prior to redundancies of #112,088 (2005;
#Nil). Trading Profit rose to #440,623 compared with #104,622 in 2005.
Post Tax Profit recovered to #163,474 (2005 - loss #7,880) to yield an EPS of
2.65p (2005: (0.13p)).
The Board is pleased to recommend a final dividend of 0.85 pence per share (2005
- 0.65 pence), thus yielding an overall dividend of 1.00 pence per share for the
year (2005 - 0.80 pence). This recommendation is made with full awareness of the
cash requirements for capital and revenue expenditure associated with completing
the project to integrate the Leslie business over the next six months.
Shareholders should draw encouragement from these figures.
The purchase of the assets and trade of Leslie Group Ltd in December 2005 has
materially swung the balance of the Group from a manufacturer of garment
accessories to a stamper and finisher of brass components. Brass stamping will,
in the medium term, account for around 60% of the Group's activities.
This purchase is a major step in the achievement of the declared strategic plan
for the Group. The rationalisation of the two stamping operations will now
continue until the first quarter of 2007 and, once completed, will give the
Group a more secure basis for longer - term growth.
The Catesby factory is evolving from accessory manufacture to becoming the base
for CNC finishing of brass components and to becoming the Group logistics
centre.
Brass Stamping
Both the Guests and the former Leslie businesses showed growth during the year,
but indications are that this is more a function of the 112% rise in metal
prices, since July 2005, than gains in tonnage.
The merger of the two administrations is now complete and the hitherto separate
operations began trading as TW Stamping Ltd from 1 July 2006.
It is expected that the full benefits of the acquisition should become apparent
in early 2007.
Garment Accessories
As foreseen, the shift of garment manufacturing to Asia has not proved to be the
solution for servicing the new "boutique" pattern of High Street trading, as
delivery has not matched the required schedules. The result has been some
repatriation of facilities towards the Eastern fringes of Europe.
Although these shifts in trading have been accompanied by new distribution to
defend our historical business, there has been an overall reduction in the
volume of garment accessories. This will continue.
Chinese quality standards and prices have followed the migration back to Europe.
This has been compounded by the increase in metal prices already mentioned, in
this case faced by the refusal of retailers to accept any price increase.
Identity Products
The ID markets have benefited from an increased demand for personal
identification products resulting in a 14% increase in turnover. New products
and high levels of service have underpinned the growth in volume.
Local production and assembly has maintained speedy delivery and has retained
the goodwill of our customers.
Outlook
The integration of the Leslie business is progressing according to plan and is
providing a solid platform for further development. The Group is now well placed
to move forward with its strategy to develop niche and higher technology areas.
Trading in the new financial year has been in accordance with expectations and
we look forward to the coming year with confidence.
Bryan C. Knight
Chairman
31 October 2006
GROUP PROFIT AND LOSS ACCOUNT
for the year ended 30 June 2006
Year ended Year ended
30/06/06 30/06/05
# #
(As restated)
Turnover 7,328,379 5,265,563
Net operating expenses (6,999,844) (5,160,941)
--------- ---------
Operating profit 328,535 104,622
--------- ---------
Profit before interest and tax 328,535 104,622
Bank interest receivable - 2,498
--------- ---------
Bank interest payable (89,932) (24,125)
Net finance income/(expense) in respect
of pensions 14,000 (15,000)
--------- ---------
Profit on ordinary activities before tax 252,603 67,995
Taxation (89,129) (75,875)
--------- ---------
Profit on ordinary activities after tax 163,474 (7,880)
========= =========
Earnings per share - basic and diluted 2.65p (0.13p)
========= =========
All results in the year were from continuing operations.
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 30 June 2006
Year ended Year ended
30/06/06 30/06/05
# #
(As restated)
Profit/(loss) for the financial year attributable
to members of the parent company 163,474 (7,880)
Actuarial (loss) / gain related to the pension
scheme (20,000) 521,000
Deferred tax on actuarial (loss)/gain 6,000 (156,300)
Exchange difference on retranslation of net assets
of subsidiary undertakings - (2,882)
--------- ---------
Total recognised gains and losses relating to the
year 149,474 353,938
--------- ---------
Prior Year adjustment (249,159)
---------
Total recognised gains and losses since the last
annual report (99,685)
=========
GROUP BALANCE SHEET
at 30 June 2006
Year ended Year ended
30/06/06 30/06/05
# #
(as restated)
Fixed assets
Intangible assets 571,865 276,333
Tangible assets 3,669,026 2,907,641
Investments 104 104
--------- ---------
4,240,995 3,184,078
Current assets
Stocks 1,482,610 912,695
Debtors 2,577,551 1,503,262
Cash at bank and in hand 262,671 239,098
--------- ---------
4,322,832 2,655,055
Creditors: amounts falling due within one year (2,681,674) (1,490,530)
--------- ---------
Net current assets 1,641,158 1,164,525
--------- ---------
Total assets less current liabilities 5,882,153 4,348,603
Creditors: amounts falling after more than one year (1,496,798) (134,625)
Provisions for liabilities and charges (109,539) (34,856)
--------- ---------
4,275,816 4,179,122
--------- ---------
Defined benefit pension scheme liability (133,700) (137,200)
--------- ---------
4,142,116 4,041,922
========= =========
Capital and reserves
Called up share capital 308,000 308,000
Share premium account 15,200 15,200
Profit and loss account 3,818,916 3,718,722
--------- ---------
Equity Shareholders' Funds 4,142,116 4,041,922
========= =========
GROUP STATEMENT OF CASHFLOWS
for the year ended 30 June 2006
Year ended Year ended
30/06/06 30/06/05
# # # #
Net cash (out) / in
flow from operating (198,569) 285,774
activities -------- --------
Returns on investments and
servicing of finance
Interest received - 2,498
Interest paid (75,480) (25,358)
Interest paid on (12,280) -
finance leases -------- --------
(87,760) (22,860)
Taxation
Corporation tax paid (89,857) (7,687)
Repayment of prior year 4,254 3,022
corporation tax -------- --------
(85,603) (4,665)
Capital expenditure and
financial investment
Payments to acquire tangible (263,838) (309,254)
fixed assets
Receipts from sales of - 3,125
tangible fixed assets
Deferred receipt - 505,250
-------- --------
(263,838) 199,121
Acquisition
Payments to acquire tangible (848,650) -
fixed assets
Payments to acquire (320,298) -
intangible fixed assets -------- --------
(1,168,948) -
Equity dividends paid (49,280) (49,280)
-------- --------
Net cash (out)/in flow before
management of liquid (1,853,998) 408,090
resources and financing
Financing
Repayment of bank loan (179,257) (849,215)
Proceeds from new bank 2,198,133 -
facilities
Repayment of captial
elements of finance leases (41,973) -
-------- --------
Net cash in/(out) 1,976,903 (849,215)
flow from financing -------- --------
Increase/(decrease) in cash 122,905 (441,125)
during the year ======== ========
The above statements include a prior year adjustment resulting from the adoption
of FRS 17 "Retirement Benefits" and FRS 21 "Events after the Balance Sheet
date". These have the effect of reducing reserves by #249,159 at 30 June 2005
and profit after tax in the year then ended by #13,410.
Dividends will be paid on 8 December 2006 to those shareholders on the Register
at the close of business on 10 November 2006.
The abridged financial information set out above does not constitute the Group's
statutory accounts as defined under Section 240 of the Companies Act 1985. The
auditors have not yet made a report under Section 235 of the Companies Act 1985
on the financial statements for the year ended 30 June 2006 from which the
financial information is extracted, and consequently full accounts for the
period have not been filed at Companies House. The report of the auditors on the
accounts for the year ended 30 June 2005 was unqualified and there was no
statement under either section 237(2) or section 237(3). Full accounts for the
year ended 30 June 2005 have been filed at Companies House.
This announcement was approved by the Board of Directors on 31 October 2006.
The Annual General Meeting will be held on Friday 1 December 2006 at 12 noon at
The Birmingham Hippodrome Theatre, Hurst Street, Birmingham. Copies of the
annual report and accounts, which will be sent to shareholders shortly, can be
obtained from the registered office of the Company at Catesby Park, Eckersall
Road, Birmingham B38 8SE.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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