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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bullough | LSE:BLGH | London | Ordinary Share | GB0001532059 | ORD 20P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.00 | - |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:6050B
Bullough PLC
25 September 2002
25 SEPTEMBER 2002
Howard Marshall, Chairman
Colin Bonsey, Group Finance Director
Bullough plc Tel: 01372 379088
Charlie Armitstead
Financial Dynamics Tel: 020 7831 3113
Bullough plc
Interim results - 30 June 2002
Introduction
The six months to June 2002 has been a challenging one for the group as trading
conditions showed little improvement over the level of activity seen in the
second half of 2001 and were below anticipated levels. The market for office
furniture products throughout the Western economies reached its lowest level for
the last four years during the period under review and further restructuring
action has been taken as a consequence.
As advised in the annual report, agreement was reached on 9 March 2002 for the
sale of Product Procurement Services (PPS) to its management and the results for
the six months reflect the final write off of costs in respect of the
transaction.
Results summary
The results for the six months saw a marked reduction in overall demand in
relation to the previous year and an increase in the trading deficit. Sales for
Workplace Solutions fell by 25% alleviated to some extent by an increase of 10%
in Temperature Control sales. Further action was taken in the period to reduce
costs. The number of people employed by the group has declined by 191 or 14% of
the total. Redundancy costs of #0.6m (prior year #0.3m) were incurred. Over
the last eighteen months employment for the continuing operations has been
reduced by 411 or 28% in order to counteract the fall in demand.
The loss sustained by the continuing operations was #1.9 million. This was worse
than the prior year loss of #0.4 million as a consequence of the major fall in
demand in Workplace Solutions although the profit at Temperature Control
improved. Exceptional items represent the write off of the residual cost for
the disposal of PPS. As advised in the annual report only part of the cost of
disposal could be dealt with in those accounts with the residue to be expensed
this year. The anticipated total cost of disposal was advised to all
shareholders in the circular dated 19 March 2002 requesting approval for the
transaction.
Cash Flow
There was a strong operating cash flow for the period amounting to an inflow of
#1.4m after interest and taxation despite the operating losses. Disposal of
subsidiary undertakings represents the cash element of the disposal of PPS.
At 30 June 2002 total borrowings amounted to #7.5 million.
Operational
Analysis of turnover and operating profit
six months ended 30 June 2002
Operating Operating
Turnover Turnover (loss) profit (loss) profit
2002 2001 2002 2001
#000 #000 #000 #000
Continuing operations
Workplace Solutions 26,777 35,409 (2,475) (789)
Temperature Control 13,411 12,227 561 438
40,188 47,636 (1,914) (351)
Workplace Solutions
This division had an extremely difficult six months impacting all of the
companies. Sales were down across the division by 25% and all companies,
excluding Project, sustained a loss. Order intake fell significantly across the
division in the wake of general economic uncertainty prevailing in the last
calendar quarter of last year and has not shown any sign of meaningful recovery.
Cost reduction programmes continue, employment has been reduced by 18% with
further reductions to follow in the second half.
A major investment in new manufacturing processes has been made at Flexiform at
a capital cost of #0.8m. This action has enabled a physical consolidation to
occur and to release property for sale the proceeds from which will exceed the
cost of the capital programme.
The combination of these actions should enable trading performance to improve in
the second half of the year.
Temperature Control
Johnson & Starley delivered another satisfactory performance and Boulter
recovered from the destocking actions of its customers, which had hampered the
comparable prior year performance.
Trianco showed some improvement in sales and a reduction in losses sustained
compared with the first half of last year. A number of operational improvements
have been implemented at Trianco including the introduction of robotic welding.
These initiatives in addition to the cost reduction programme should improve the
performance for the second half.
Property sales
Since the end of the six month period contracts have been exchanged both for the
surplus property at Bradford and for the sale of the office/warehouse facility
formerly occupied by PPS. The sale proceeds of these two properties amounts to
#1.9m and the cash will be received in the second half.
Dividends
In the light of the significant loss incurred in the first half the directors
regret there will be no interim dividend (2001: nil).
General Outlook
General market conditions are expected to remain depressed for the time being.
The necessary actions have and will be taken to ensure that capacity of the
businesses is in balance with the market demand. Also investments in
manufacturing efficiencies and new products are beginning to make a favourable
impact. As a result of the measures taken the Group is anticipating an improved
result for the second half.
Howard Marshall Chairman
25 September 2002
Interim results
Unaudited group results for the six months ended 30 June 2002
Six months ended 30 June 2002 Unaudited
Before
exceptional Exceptional
items items Total
#000 #000 #000
Turnover
Continuing operations 40,188 - 40,188
Discontinued operations 4,735 - 4,735
44,923 - 44,923
Cost of sales (32,167) - (32,167)
Gross profit 12,756 - 12,756
Net operating expenses (15,778) - (15,778)
Operating loss
Continuing operations (1,914) - (1,914)
Discontinued operations (1,108) - (1,108)
Total operating loss (3,022) - (3,022)
Exceptional items
(Loss) profit on disposal of - (4,957) (4,957)
discontinued operations
Utilisation of provision made in previous year - 2,000 2,000
Loss before interest (3,022) (2,957) (5,979)
Net interest (payable) receivable (134) - (134)
Loss on ordinary activities before taxation (3,156) (2,957) (6,113)
Taxation - - -
Loss on ordinary activities after taxation (3,156) (2,957) (6,113)
Dividends -
Loss absorbed in the period (6,113)
Earnings per share
Basic loss per share (11.50)p
Adjusted loss per share (3.82)p
Diluted loss per share (11.50)p
Dividend per share Nil
Six months ended 30 June 2001
Unaudited Year ended
Before 31 December
exceptional Exceptional 2001
items items Total Audited
#000 #000 #000 #000
Turnover
Continuing operations 47,636 - 47,636 90,482
Discontinued operations 5,951 - 5,951 14,427
53,587 - 53,587 104,909
Cost of sales (37,682) - (37,682) (75,642)
Gross profit 15,905 - 15,905 29,267
Net operating expenses (19,894) - (19,894) (42,194)
Operating loss
Continuing operations (351) - (351) (5,306)
Discontinued operations (3,638) - (3,638) (7,621)
Total operating loss (3,989) - (3,989) (12,927)
Exceptional items
(Loss) profit on disposal of - 46 46 (1,053)
discontinued operations
Utilisation of provision made in - - - -
previous year
Loss before interest (3,989) 46 (3,943) (13,980)
Net interest (payable) receivable 31 - 31 34
Loss on ordinary activities before (3,958) 46 (3,912) (13,946)
taxation
Taxation - 84 84 1,522
Loss on ordinary activities after (3,958) 130 (3,828) (12,424)
taxation
Dividends - -
Loss absorbed in the period (3,828) (12,424)
Earnings per share
Basic loss per share (7.20)p (23.37)p
Adjusted loss per share (0.55)p (4.37)p
Diluted loss per share (7.20)p (23.37)p
Dividend per share Nil Nil
In accordance with practice adopted in previous years, the interim results have
not been subject to a review by the company's auditors.
There were no recognised gains or losses other than the results shown above.
There is no material difference between the loss before taxation and the loss
absorbed for each period as shown above and their historical cost equivalent.
Consolidated balance sheet
at 30 June 2002
30 June 30 June 31 December
2002 2001 2001
Unaudited Unaudited Audited
#000 #000 #000
Tangible fixed assets 21,777 21,929 21,831
Current assets
Stocks 8,986 13,911 9,783
Debtors 19,251 25,790 24,242
Cash at bank and in hand - - 135
28,237 39,701 34,160
Creditors - amounts falling (22,750) (19,694) (22,736)
due within one year
Net current assets 5,487 20,007 11,424
Total assets less current 27,264 41,936 33,255
liabilities
Creditors - amounts falling (178) (218) (180)
due after more than one year
Provisions for liabilities and (7,032) (6,955) (6,908)
charges
Total net assets 20,054 34,763 26,167
Capital and reserves
Called up share capital 10,634 10,634 10,634
Share premium account 1,964 1,964 1,964
Revaluation reserve 1,621 1,622 1,621
Capital redemption reserve 13,683 13,683 13,683
Profit and loss account (7,848) 6,860 (1,735)
Equity shareholders' funds 20,054 34,763 26,167
Net assets per share (53.2m 37.7 65.4 49.2
shares)
Net borrowings including 7,518 2,192 4,902
finance lease obligations
Reconciliation of movements in shareholders' funds
for the six months ended 30 June 2002
Six months Six months
ended ended Year ended
30 June 2002 30 June 2001 31 December 2001
Unaudited Unaudited Audited
#000 #000 #000
At 1 January 2002 26,167 38,591 38,591
Total recognised (losses) gains for the year (6,113) (3,828) (12,424)
At 30 June 2002 20,054 34,763 26,167
Consolidated cash flow statement
for the six months ended 30 June 2002
Six months Six months
ended ended Year ended
30 June 2002 30 June 2001 31 December 2001
Unaudited Unaudited Audited
#000 #000 #000
Operating loss (3,022) (3,989) (12,927)
Depreciation 1,485 1,457 2,992
Loss on sale of tangible fixed assets - - 57
Decrease (increase) in stocks 1,162 (1,954) 798
Decrease in debtors 4,199 7,956 9,596
Decrease in creditors (3,095) (6,124) (5,762)
(Decrease) increase in provisions (451) (26) 651
Net cash flow from operating activities 278 (2,680) (4,595)
Return on investments and servicing of finance
Net interest (paid) received (131) 74 12
Taxation
UK corporation tax received (paid) 1,275 (241) 68
Capital expenditure
Purchase of tangible fixed assets (1,613) (1,069) (3,182)
Sale of tangible fixed assets 104 16 13
(1,509) (1,053) (3,169)
Acquisitions and disposals
Disposal of subsidiary undertakings (2,529) (681) 393
(2,529) (681) 393
Equity dividends paid - (378) (378)
Net cash outflow before financing activities (2,616) (4,959) (7,669)
Financing
Inception of new finance leases 44 - -
Capital element of finance leases repaid (34) (36) (69)
10 (36) (69)
Increase in borrowings in the period (2,606) (4,995) (7,738)
Reconciliation of net cash flow to movement in net debt
for the six months ended 30 June 2002
Six months Six months
ended ended Year ended
30 June 2002 30 June 2001 31 December 2001
Unaudited Unaudited Audited
#000 #000 #000
Increase in borrowings in the period (2,606) (4,995) (7,738)
(Increase) decrease in amounts due under lease financing (10) 36 69
Increase in net debt in the period (2,616) (4,959) (7,669)
Net debt at 1 January 2002 (4,902) 2,767 2,767
Net debt at 30 June 2002 (7,518) (2,192) (4,902)
Notes
1 Comparative figures
Comparative figures for the year ended 31 December 2001 have been extracted from
the group's 2001 Report and Accounts, which have been filed with the Registrar
of Companies. The auditors' opinion on those accounts was unqualified and did
not include a statement under Section 237(2) or (3) of the Companies Act 1985.
2 Accounting policies
The accounting policies remain as set out in the group's 2001 Report and
Accounts except for the change noted below.
The requirements of Financial Reporting Standard 19, 'Deferred Tax', have been
adopted for the first time in this interim statement. The previous accounting
policy of making partial provision for deferred taxation which is expected to
become payable in the forseeable future has been replaced by a full provision
policy for all deferred tax assets and liabilities. This change in policy does
not have any impact on the assets or results for the periods covered in this
interim statement.
3 Exceptional items
On 12 April 2002 the company completed the disposal of its subsidiary, Product
Procurement Services Limited (PPS) to Ingleby (1463) Limited, a new company set
up to make the purchase, for consideration of #1. Operating losses of PPS have
been included up to 28 February 2002, the date from which the purchasers took
over the operation of the business. These have been included within discontinued
operations. An exceptional loss of #4,957,000 arose on the disposal, of which
#2,000,000 was provided for in 2001 as an impairment provision against the value
of fixed assets and stock to be disposed of.
4 Loss per share
Adjusted loss per share is shown to reflect the underlying performance of
continuing operations excluding exceptional items.
30 June 2002 30 June 2001 31 December 2001
Loss after Loss after Loss after
taxation taxation taxation
#000 #000 #000
Loss used for basic and fully diluted loss per share (6,113) (3,828) (12,424)
Loss after taxation of discontinued operations 1,124 3,668 7,117
Exceptional items 2,957 (130) 2,986
Adjusted loss on continuing operations
before exceptional items (2,032) (290) (2,321)
The weighted average number of shares for all periods was 53.2 million. Fully
diluted loss per share is the same as the basic loss per share because the
impact of share options is anti-dilutive.
-ENDS-
The interim report will be mailed to shareholders (but not published in the
newspapers) on 27 September 2002. Copies will be available on request from the
Company Secretary, Bullough plc, 21 The Crescent, Leatherhead, Surrey, KT22 8DY.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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