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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Longmead Grp. | LSE:LGM | London | Ordinary Share | GB0002249075 | ORD 10P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 7.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:8110R Longmead Group PLC 08 April 2008 THE LONGMEAD GROUP PLC Preliminary announcement for the period 53 week period to 3 November 2007 CHAIRMAN'S STATEMENT Trading Results The trading results for the year have been affected by significant stock provisions. Over the last five years, we have seen a gradual decline in our turnover to our main DIY bathroom customer from over £1 million per annum to the present level of £100,000 per annum. As a result, it has become necessary to make a major stock provision in respect of work in progress, packaging and finished goods. We have also rationalised our door furniture product range and this has resulted in further stock provisions. In addition, our changing customer profile has necessitated further provisions. The overall trading result is a loss of £253,000 (2006: £170,000) after allowing for the stock write-offs. Although the outcome is most unsatisfactory, there are some encouraging signs. Our General Trade sales are up by over 12% and our gross profit has increased from 37.6% to 39.8% before the stock write-offs. Our turnover fell to £2.15 million (2006: £2.29 million) but this is the result of a fall in sales to the main DIY customer mentioned above. The operating loss (before stock write-offs) has fallen to £86,000 (2006: £118,000), an improvement of 27%. Overheads continue to fall in spite of increased energy and distribution costs, and were 4% lower in 2007 than 2006. This is in spite of the fact that we incurred one-off costs of £10,000 as a result of changing our Nominated Adviser and Broker and re-arranging our borrowings. These items are commented on in more detail below. Interest shows an increase of £6,000 arising from higher borrowing costs during the year, although this is likely to improve in the present year as a result of the new borrowing arrangements. New Products The new products introduced last year have continued to perform well but new product development must be an ongoing process. In March 2008, we exhibited at the Kitchens Bedrooms & Bathrooms Exhibition at the NEC Birmingham where we showed a further range of new products. These included an exciting, highly competitive range of shower curtains, new bathroom accessory ranges, extensions to our bathroom furniture range and back-lit mirrors. These new items have been carefully researched and we believe they will prove very successful. The launch of our new ceramic products for the non-bathroom market has been delayed but it is hoped that the distributor concerned will be promoting them over the Internet in the very near future. Change of Advisers During 2007 we changed our Nominated Adviser and Broker. Your Board decided it would be sensible to find a broker who had a close affiliation with a Nominated Adviser and, after talking with several companies, we elected to appoint Ellis Stockbrokers as our broker and City Financial Associates as our Nominated Adviser. Accordingly, we terminated our contract with Smith & Williamson. The cost of the changeover was approximately £6,000. Restructuring of Borrowings During the year we also, in discussions with our Bankers HSBC, decided to change the structure of our borrowings. We increased the size of our Medium Term Loan to £830,000 to be repaid over a ten year period, with the level of interest based on the Bank's Sterling Base Rate. At the same time, we reduced our overdraft facility to a nominal amount. The increase in our borrowings has enabled us to invest more in new products which will lead to increased turnover in the longer term. The cost of the change was approximately £4,000. Balance Sheet Following the loss for the year, our shareholders' funds have fallen to £1.201million (2006: £1.454 million) which represents net assets per share of 21.5p. However, our freehold premises were revalued during the year at £1.6 million which represents an increase of over £460,000 against the value shown in the balance sheet. This increase has not been included in the 2007 balance sheet. Stocks have been reduced at the year end but this is mainly due to the stock provisions reported above. Debtors have been reduced partly as a result of reduced turnover but mainly through a much stricter system of credit control. As a result of the change in the bank arrangements our net current assets have risen slightly. Future Prospects Since the year end, we have taken out further overhead costs which have lowered the breakeven position. Many of our customers are taking a pessimistic view of the year ahead and are reducing their level of stocks, but they are receptive to new products and this, together with the presentation of products at the KBB Show in Birmingham, should stand us in good stead. However, the almost total loss of our major DIY customer's business means we have been running to stand still. We are budgeting for a small increase in turnover but there is no doubt 2008 will be a difficult year for all retailers, so an increase will be hard to achieve. The strength of the pound against the dollar is helping us to maintain reasonable margins and interest rate falls should be of some benefit. It is impossible to predict the likely outcome for the year but we will continue to use all our endeavours to achieve a further improvement in our results. I would like to thank the management and staff of the Company for their hard work and support during the year. R E W Newman Chairman CONSOLIDATED PROFIT AND LOSS ACCOUNT 53 weeks to 3 November 2007 Before Exceptional 53 weeks ended 52 weeks ended exceptional item (note 1) 3 November 2007 28 October 2006 items 2007 2007 2007 2007 £ £ £ £ Turnover - continuing operations 2,146,841 - 2,146,841 2,288,354 Cost of sales (1,293,362) (108,988) (1,402,350) (1,427,398) Gross profit 853,479 (108,988) 744,491 860,956 Distribution costs (597,260) (656,553) Administration expenses (342,585) (322,897) Operating loss - continuing operations (195,354) (118,494) Interest receivable and similar income 50 3 Interest payable and similar charges (57,562) (51,611) Loss on ordinary activities before (252,866) (170,102) taxation Tax on loss on ordinary activities - - Loss on ordinary activities after (252,866) (170,102) taxation Loss for the financial year (252,866) (170,102) Loss per ordinary share (Note 2) - Basic (4.53)p (3.05)p - Diluted (4.53)p (3.05)p There are no recognised gains and losses for the current or preceding financial period other than as stated in the profit and loss account. Accordingly, no statement of total recognised gains and losses is given. CONSOLIDATED BALANCE SHEET As at 3 November 2007 2007 2006 £ £ £ £ Fixed assets Intangible assets 12,981 15,981 Tangible assets 1,215,043 1,306,049 1,228,024 1,322,030 Current assets Stocks and work in progress 1,149,148 1,293,350 Debtors 440,197 540,685 Cash at bank and in hand 1,700 2,191 1,591,045 1,836,226 Creditors: Amounts falling due within (725,291) (972,091) one year Net current assets 865,754 864,135 Total assets less current liabilities 2,093,778 2,186,165 Creditors: Amounts falling due after (892,400) (731,921) more than one year Total net assets 1,201,378 1,454,244 Capital and reserves Called up share capital 558,439 558,439 Share premium account 1,397,747 1,397,747 Capital redemption reserve 19,000 19,000 Revaluation reserve 249,969 255,041 Profit and loss account (1,023,777) (755,983) Total equity shareholders' funds 1,201,378 1,454,244 CONSOLIDATED CASH FLOW STATEMENT 53 weeks ended 3 November 2007 2007 2006 £ £ £ £ Net cash inflow/(outflow) from operating 77,559 (41,858) activities Returns on investments and servicing of finance Interest received 50 3 Interest paid (55,905) (50,641) Interest element of financial lease (370) (914) rentals (56,225) (51,552) Capital expenditure and financial investment Purchase of tangible fixed assets - (6,600) Proceeds from sale of tangible assets - 4,650 - (1,950) Net cash inflow/(outflow) before 21,334 (95,360) financing Financing Capital element of finance lease rentals (10,061) (20,432) Loan advanced 830,000 - Loans repaid (684,780) (56,331) Net cash inflow/(outflow) from financing 135,159 (76,763) Increase/(decrease) in cash in the period 156,493 (172,123) NOTES TO THE ACCOUNTS 1. EXCEPTIONAL ITEMS 2007 2006 £ £ Stock provisions 108,988 - 2. LOSS PER ORDINARY SHARE The calculation of the basic loss per share is based on the weighted average number of shares in issue during the financial year of 5,584,391 (2006: 5,584,391) and on the loss attributable to ordinary shareholders of £252,866 (2006: £170,102 loss). 3. The financial information on the Group set out above does not constitute statutory information financial year within the meaning of section 240 of the Companies Act 1985. The statutory accounts for the 53 weeks ended 3 November 2007 will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the Registrar of Companies following the Group's Annual General Meeting. 4. Copies of the 2007 Report and Accounts will be sent to shareholders in due course. Further copies will be available from the registered office of The Longmead Group plc, Millwey Industrial Estate, Axminster, Devon, EX13 5HU and from the Company's nominated adviser, City Financial Associates Limited, 46 Worship Street, London, EC2A 2EA for one month from the date of this announcement. END Contact:- RE Newman, Chairman Longmead Group Plc Tel: 01297 32578 Liam Murray, Nominated Adviser City Financial Associates Limited Tel: 020 7492 4777 This information is provided by RNS The company news service from the London Stock Exchange END FR UBVNRWARSRAR
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