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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Mallett | LSE:MAE | London | Ordinary Share | GB0005583504 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 55.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMMAE
RNS Number : 7325L
Mallett PLC
15 August 2013
MALLETT PLC
("Mallett" or the "Group")
Interim report for the six months ended 30(th) June 2013
Chairman's Statement
Dear Shareholder
Our interim results for the six months ended 30(th) June 2013 show a profit before tax of GBP0.2m, compared to a profit before tax of GBP0.1m for the same period of the previous year. Turnover has reduced slightly to GBP6.6m (2012 - GBP6.7m) but our margins have improved such that gross profit has remained constant at GBP1m.
We are pleased to report that the US market has shown a marked improvement and turnover for Mallett US and has almost doubled from the same period of last year to GBP3.4m (2012 - GBP1.7m). For this reason we are reviewing our staffing in the US and the planned subletting of part of the New York showroom to ensure that we maximise the potential of the significant uplift in the US.
Plans for our new website are progressing well with some exciting concepts being put forward by a number of designers and we continue to evaluate the options regarding maximising the value to the Group of our freehold property in Clapham. We also completed the sale of the business and certain assets of James Harvey British Art Limited to James Harvey during the period and the results of this business are shown in discontinued operations.
Mallett
Mallett Antiques' turnover for the six months ended 30(th) June 2013 was slightly lower than the first half of last year at GBP6.3m (2012 - GBP6.5m). However, more of those sales were generated in the US this year, where the market has been much more active, than in the UK where the market has remained fragile. A number of sales during the period were made to Brazil and to China which were a direct result of the visits to those countries made by our sales team in 2012. This is part of our ongoing strategy to promote Mallett in these and other emerging markets and we are pleased with its progress.
Whilst the UK has proved a difficult market, we have held two significant exhibitions in our London Showroom which have created interest and sales. Firstly we put on the Great English Furniture exhibition which celebrated the skills of some of the best furniture makers in history and also provided an opportunity for collectors to buy pieces which have not been on the market for at least a quarter of a century. Secondly, we put on the Age of Elegance exhibition which was a collaborative exhibition with London's most prestigious Old Master paintings dealer, Colnaghi, which attracted great interest, prompted in particular by the media coverage of the exhibition.
Other businesses
The sale of the business of James Harvey British Art Limited (JHBA) and GBP80,000 of stock to James Harvey was completed in May. During the period JHBA incurred a trading loss of GBP0.1m (2012 - GBP0.2m) and this confirmed that JHBA requires funding to be successful which Mallett did not wish to provide at this time and therefore it was sensible for Mallett to exit from that business.
Hatfields continues to perform to expectation, with third party sales increasing by 48%, and are working hard to ensure that this will be sustained in the second half of the year.
Masterpiece London Limited, of which Mallett owns 23.75%, put on its fourth fair at the end of June at the Royal Hospital, London. It was another successful fair with visitor numbers increasing by 20% on the previous year to just under 34,000 over the 8 days of the fair. We expect the fair to be profitable again this year with Mallett's share of the profit for the six months to 30(th) June 2013 expected to be approximately GBP85,000 (2012 - GBP83,000). In addition, an extraordinary GBP840,000 was raised for the Marie Curie Cancer Trust through Masterpiece's Midsummer party during the fair.
In the 2012 Results it was announced that Finance Director, Michael Smyth-Osbourne was due to leave Mallett in June 2013, however, his departure date has been put back to December 2013 whilst the Group continues with the process of evaluating options in respect of the Clapham property, the relocation of Hatfields and the ongoing evaluation of the New York showroom.
Balance sheet
Shareholders' equity at 30 June 2013 was GBP14.8m (31 December 2012 - GBP14.5m) which represents an increase of GBP0.3m since the start of the year. The increase is due primarily to foreign exchange gains of GBP0.2m.
The value of inventory at 30 June 2013 has reduced slightly from the start of the year to GBP11.5m (31 December 2012 - GBP11.9m) reflecting the sale of a number of high value items during the period, the proceeds of which have not yet been fully re-invested. Our net debt position has increased slightly since the start of the year to GBP0.7m (31 December 2012 - GBP0.5m). Debtors and creditors have increased significantly since the position at 31 December 2012 which reflects some of the high value item sales as referred to above and the high volume of sales in June, mainly from the Masterpiece fair.
Dividends
The Board has decided not to declare an interim dividend. However, as the Group continues its progression towards a stable level of profits, the Board reiterates its commitment to returning to paying a dividend once it is financially prudent to do so.
Principal Risks and Uncertainties
The Group's operating results and liquidity are significantly influenced by a number of risk factors, many of which are not within its control. These have not changed from those set out in the Annual Report and Accounts for 2012. These include the strength of the UK and US economies and financial markets, another banking crisis/financial shock to the global system, the demand for antique furniture and works of art, the ability to attract and retain key personnel, competition, the value of artworks, foreign currency exchange rate movements and retirement benefit pension obligations. A full disclosure of these risks can be found on page 15 of Mallett's Annual Report and Accounts for 2012, a copy of which can be downloaded from www.mallettantiques.com.
Outlook for the second half
The upturn in the US market has given us some cause for optimism and we have revised our strategy to take advantage of this. The slow progress in the UK market, however, calls for a note of caution, but we will continue to provide varied and high quality exhibitions in our glamorous Ely House showroom to promote interest and excitement in our market and to generate sales.
Lord Daresbury
Chairman
For further information please contact:
Giles Hutchinson Smith, Chief Executive 020 7499 7411
Neither the content of the Company's website nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.
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MALLETT PLC
Condensed Consolidated Income Statement (unaudited)
for the six months ended 30th June 2013
Six months Six months
ended ended
30th 30th
Notes June June
2013 2012
GBP'000 GBP'000
Revenue 6,628 6,720
Cost of sales (5,621) (5,763)
Gross profit 1,007 957
Other operating income 6 6
Distribution costs (121) (101)
Administrative expenses (754) (797)
Operating profit 138 65
Net interest (15) (7)
Share of operating profit in associate 85 83
Profit before income tax 208 141
Income tax 5 (2) (1)
Profit for the period 206 140
------------------ -------------------
Loss on discontinued operation, net of
tax 4 (92) (157)
114 (17)
------------------ -------------------
Profit/(loss) attributable to:
Owners of the parent company 148 41
Non controlling interest (34) (58)
114 (17)
------------------ -------------------
Earnings per share attributable to the
ordinary equity holders of the parent
Profit and loss
Basic earnings per share 6 0.86p (0.13)p
------------------ -------------------
Diluted earnings per share 6 0.82p (0.12)p
------------------ -------------------
Profit and loss from continuing operations
Basic earnings per share 1.55p 1.05p
------------------ -------------------
Diluted earnings per share 1.48p 1.00p
------------------ -------------------
Consolidated Statement of Comprehensive
Income
for the six months ended 30th June 2013
Six months Six months
ended ended
30th 30th
June June
2013 2012
GBP'000 GBP'000
Profit/(loss) for the period 114 (17)
Other comprehensive income:
Exchange differences on translation of
foreign operations 236 (48)
Actuarial loss on the defined benefit
pension scheme (24) (112)
Total other comprehensive loss for the
period, net of tax 212 (160)
------------------ -------------------
Total comprehensive profit/(loss) for
the period 326 (177)
------------------ -------------------
Total comprehensive profit/(loss) attributable
to:
Owners of the parent company 360 (119)
Non controlling interest (34) (58)
326 (177)
------------------ -------------------
Condensed Consolidated Balance Sheet (unaudited)
at 30th June 2013
30th 31st
June December
2013 2012
GBP'000 GBP'000
Non-current assets
Property, plant and equipment 4,725 4,741
Investment in associate 6 -
4,731 4,741
------------------ -----------------
Current assets
Inventories 11,461 11,906
Trade and other receivables 5,202 3,302
Cash and cash equivalents 954 798
17,617 16,006
------------------ -----------------
Assets in disposal groups classified
as held for sale - 387
17,617 16,393
------------------ -----------------
Total assets 22,348 21,134
------------------ -----------------
Equity
Share capital 690 690
Capital redemption reserve 5,168 5,168
Own shares (468) (438)
Retained profits 9,472 9,214
14,862 14,634
Non controlling interest (48) (89)
Total equity 14,814 14,545
------------------ -----------------
Current liabilities
Trade and other payables 4,342 3,196
Bank overdrafts and loans 1,695 1,457
6,037 4,653
Liabilities directly associated
with assets in disposal groups classified
as held for sale - 296
6,037 4,949
Non current liabilities
Retirement benefit pension obligations 1,497 1,640
Total liabilities 7,534 6,589
------------------ -----------------
Total equity and liabilities 22,348 21,134
------------------ -----------------
Condensed Consolidated Statement of Changes in Equity
(unaudited)
for the six months ended 30th
June 2013
Capital Non
Share redemption Own Retained controlling Total
capital reserve shares profits Total interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1st January
2012 690 5,168 (513) 10,073 15,418 (58) 15,360
Loss in 6
months
to 30th June
2012 41 41 (58) (17)
Total other
comprehensive
loss for the
period (160) (160) (160)
Disposal of
interest
in subsidiary (14) (14) (14)
Net movement
in
own shares (1) (12) (13) (13)
At 30th June
2012 690 5,168 (514) 9,928 15,272 (116) 15,156
Loss in 6
months
to 31st
December
2012 (314) (314) 13 (301)
Total other
comprehensive
loss for the
period (351) (351) (351)
Disposal of interest
in subsidiary - - 14 14
Net movement
in
own shares 76 (49) 27 27
At 31st
December
2012 690 5,168 (438) 9,214 14,634 (89) 14,545
Profit in 6
months
to 30th June
2013 148 148 (34) 114
Total other
comprehensive
profit for
the
period 212 212 212
Acquisition of
interest in
subsidiary (155) (155) 75 (80)
Own shares
exercised 28 53 81 81
Own shares
purchased (58) - (58) (58)
At 30th June
2013 690 5,168 (468) 9,472 14,862 (48) 14,814
-------------- ------------- --------------- --------------- --------------- --------------- ---------------
Condensed Consolidated Cash Flow Statement
(unaudited)
for the six months ended 30th June
2013
Six months Six months
ended ended
30th 30th
June June
2013 2012
GBP'000 GBP'000
Profit before income tax 208 141
Adjustments for:
Net interest 15 7
Share of operating profit in associate (85) (83)
Operating profit 138 65
Adjustments for:
Depreciation 139 135
Share-based payments 58 60
Defined benefit pension adjustment (167) (127)
Net exchange adjustments (104) 22
Loss from discontinued operations (92) (157)
Movements in working capital:
Decrease in inventories 570 695
(Increase)/decrease in receivables (1,778) 814
Increase in payables 929 417
Cash generated by operations (307) 1,924
Tax paid (2) (1)
Net Cash from Operating Activities (309) 1,923
------------------ -------------------
Investing Activities
Purchase of shares in associate (80) -
Purchase of property, plant and equipment (18) (67)
Net Cash (used in)/from Investing
Activities (98) (67)
------------------ -------------------
Financing Activities
Interest paid (15) (7)
Purchases of own shares (10) (60)
Net Cash used in Financing Activities (25) (67)
------------------ -------------------
Net Increase in Cash and Cash Equivalents (432) 1,789
Cash and Cash Equivalents at the
beginning of the period (545) (1,121)
Effect of foreign exchange rate changes 236 (48)
Cash and Cash Equivalents at the
end of the period (741) 620
------------------ -------------------
Statement of Directors' Responsibilities
for the six months ended 30th June
2013
The directors confirm that to the
best of their knowledge:
- The unaudited condensed set of financial statements has been prepared
in accordance with IAS 34
"Interim Financial Reporting" as adopted by the EU; and
- The interim management report includes a fair review of the information
required by DTR 4.2.7R and
DTR 4.2.8R of the Disclosure and Transparency Rules of the UK Financial
Services Authority.
Notes to the Condensed Consolidated Financial Statements
for the six months ended 30th June
2013
1 BASIS OF PREPARATION
The annual financial statements of Mallett Plc are prepared in accordance
with IFRSs as adopted by the European Union. The comparative financial
information for the year ended 31 December 2012 included within this
report does not constitute the full statutory accounts for that period.
The statutory Annual Report and Financial Statements for 2012 have
been filed with the Registrar of Companies. The Independent Auditors'
Report on that Annual Report and Financial Statement for 2012 was
unqualified, did not draw attention to any matters by way of emphasis,
and did not contain a statement under 498(2) or 498(3) of the Companies
Act 2006.
SIGNIFICANT ACCOUNTING
2 POLICIES
The condensed financial statements are presented on the basis
of the historical cost convention.
The accounting policies adopted are consistent with those followed
in the preparation of the Group's annual financial statements for
the year ended 31 December 2012.
3 SEGMENTAL REPORTING
The Group's operating segments have been determined based on the
management accounts reviewed by the Board of Directors (the Chief
Operating Decision Maker). The Group's activities are split into
two business segments: dealing in antique furniture and objets d'art
through Mallett, and providing restoration services through Hatfields.
The operations of Mallett are further split into two geographical
regions, UK and US, reflecting the location of a Mallett showroom
in each of those regions.
The Board assesses the performance of the operating segments based
on turnover and operating profit. Sales are reported by location
of sales outlet. The accounting policies of the reportable segments
are the same as described in note 2 and no segment is reliant on
any one major external customer.
Transfer pricing between segments are set on an arm's length basis.
Segmental assets and liabilities consist of property, plant and equipment,
trade receivables, payables, cash at bank and inventories.
Mallett
Dis-continued
UK USA Hatfields Other Total operations
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income & expenses information for six months
ended 30th June 2013
Total Revenue 3,973 3,408 408 - 7,789 140
Inter segment
revenue (1,091) - (70) - (1,161) -
External revenue
by sales outlet 2,882 3,408 338 - 6,628 140
EBITDA 101 204 30 (59) 276 (68)
Depreciation and
amortisation (47) (75) - (16) (138) -
Operating
profit/(loss) 54 129 30 (75) 138 (68)
Share of operating profit
in associate - - - 85 85 -
Interest revenue (15) - - - (15) -
Interest expense 46 (46) - - - -
Profit/(loss)
before tax 85 83 30 10 208 (68)
Income tax - (2) - - (2) (24)
Profit/(loss) for
the year 85 81 30 10 206 (92)
------------------------------- -------------- -------------- ------------- -------------- -------------- --------------
Balance Sheet information at 30th
June 2013
Capital expenditure 18 - - - 18
Total assets 12,107 7,815 435 1,991 22,348
Total liabilities, excluding
tax liabilities 6,927 514 93 - 7,534
Investment in associate - - - 6 6
------------------------------- -------------- -------------- ------------- -------------- --------------
Mallett
Dis-continued
UK USA Hatfields Other Total operations
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income & expenses information for six months
ended 30th June 2012
Total Revenue 4,920 1,741 436 - 7,097 223
Inter segment
revenue (170) - (207) - (377) -
External revenue
by sales outlet 4,750 1,741 229 - 6,720 223
EBITDA 70 78 52 - 200 (157)
Depreciation and
amortisation (45) (75) - (15) (135) -
Operating
profit/(loss) 25 3 52 (15) 65 (157)
Share of operating profit
in associate - - - 83 83 -
Interest revenue (7) - - - (7) -
Interest expense 48 (48) - - - -
Profit/(loss)
before tax 66 (45) 52 68 141 (157)
Income tax - (1) - - (1) -
Profit/(loss) for
the year 66 (46) 52 68 140 (157)
------------------------------- -------------- -------------- ------------- -------------- -------------- --------------
Balance Sheet information at 30th
June 2012
Capital expenditure 67 - - - 67
Total assets 11,978 6,440 330 2,396 21,144
Total liabilities, excluding
tax liabilities 4,997 711 82 198 5,988
Investment in associate - - - - -
--------------------------- -------------- -------------- ------------- -------------- --------------
4 DISCONTINUED OPERATIONS
On 28 May 2013 the sale of the business of James Harvey British Art
Limited ("JHBA") and JHBA inventory with a book value of GBP80,000
was completed to James Harvey in exchange for James Harvey's 50%
equity in JHBA. The company will no longer trade through JHBA, which
will become a dormant company, and therefore the results of JHBA
for 2013 and 2012 and costs associated with the sale have been separated
out from the rest of the Group and included in discontinued operations
as follows:
2013 2012
GBP'000 GBP'000
Result of discontinued
operations
Revenue 140 223
Expenses other than
finance costs (208) (380)
Tax credit (24) -
Loss for the
year (92) (157)
-------------- --------------
Basic loss per
share (0.69)p (1.18)p
-------------- --------------
Diluted loss
per share (0.66)p (1.13)p
-------------- --------------
5 TAX
Taxation has been provided for at an estimated
rate of 20% (2012 - 21%).
6 BASIC AND DILUTED EARNINGS PER
SHARE
Basic and diluted earnings per share have been calculated on the
profit attributable to the owners of the parent company for the period
after taxation and divided by the weighted average number of shares
in issue during the period of 13,334,018 (2012 - 13,334,018).
Dilutive earnings per share is calculated by adjusting the weighted
average number of ordinary shares outstanding assuming conversion
of all potentially dilutive ordinary shares. The company has potentially
dilutive ordinary shares in the form of share awards under the Group's
SIP and LTIP. For these share awards the number of shares that could
have been acquired at fair value based on the monetary value of the
subscription rights attached to outstanding share awards is 642,352
(2012 - 690,789). Therefore, the weighted average number of shares
for the diluted earning per share is 13,976,370 (2012 - 14,024,807).
7 DIVIDENDS
The directors have not declared an interim
dividend (2012 - nil).
Company Information
Lord Daresbury
DIRECTORS (Chairman)*
Giles H. Hutchinson Smith
*Non-executive (Chief Executive)
James
Heneage*
M. Henry G. Neville
Michael Smyth-Osbourne (Secretary)
REGISTERED Ely
OFFICE House
37 Dover
Street
London
W1S
4NJ
COMPANY NUMBER 1838233
WEBSITE www.mallettantiques.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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