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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 |
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THE LONGMEAD GROUP PLC
Preliminary results for 52 weeks ended 1 November 2003
CHAIRMAN'S STATEMENT
Trading Results
The outcome for the year is in line with expectations. The trading results, before exceptional items, show a
loss of £256,000 (2002: £144,000 for 15 months). The trading loss in the second half of £84,000 shows a
significant improvement over the £172,000 loss in the first half. In addition to the trading loss, exceptional
costs amounted to £478,000 in line with the figurereported in the interim statement. These items are commented
on below under Group Reorganisation.
Turnover did not show the anticipated growth in the second half due to delays by some of our customers in taking
new ranges into stock. However, the shortfall in turnover was compensated for by improved margins and lower
overhead costs than those budgeted.
Sales
The demand for metal products has continued to increase and are now our most important product area. Although the
decline in the sale of ceramic accessories has probably halted, the majority of sales of these products is now
going to major DIY outlets. Our emphasis on product development is now mainly concentrated on metal products.
We were successful in obtaining a number of sales promotions with a major customer, although most of the turnover
has occurred since the year end. In addition, new ranges of door furniture products have been introduced into
another major customer, but again most of the benefit of this has not been realised until after the end of October
2003.
In the current year we are budgeting for a significant increase in turnover with increased emphasis being placed
on small bathroom distributors and retailers.
Group Reorganisation
As reported in the Interim Statement, we have carried out a major reorganisation of the Group's activities during
the year. As a result, £478,000 of exceptional costs have been incurred during the period under review. These
costs comprise:
* Write-off of plant and equipment
* Redundancy payments
* Removal expenses
* Write-off of stocks
Since the end of the financial year we have completed the sale of our warehouse premises for £850,000 less
expenses. The sale price compares with the balance sheet value of £480,000 with the surplus to be included in our
results for the financial year ending 30 October 2004.
The reorganisation has involved a great deal of hard work on the part of our staff and has gone, largely,
according to plan. We have ceased the manufacture of door furniture, all of which is now being imported. We are
continuing to manufacture ceramic bathroom accessories in the UK as so far we have been unable to obtain products
of the right quality from the Far East. We will continue to seek to obtain reliable sources but in the meantime
we have been able to maintain supplies from our own reorganised production facilities.
New Product Development
During the year we have carried out a significant programme of new product development, aimed at ensuring that the
Company is seen in the trade as a leader in design and presentation. We showed our new ranges at the Kitchen,
Bedroom and Bathroom Exhibition at the NEC, Birmingham in January 2004, and the new bathroom ranges were very well
received. In addition to new ranges of products, new brochures, packaging and display stands have been developed.
The new ranges have meant the discontinuance of a number of our existing products and packaging, and this is the
main reason for the stock write-off in the accounts.
The programme of new product developments will continue throughout the present year with the emphasis on
broadening the product range to enable us to offer a more comprehensive range of bathroom products.
Balance Sheet
As reported in our Interim Statement, the trading loss and exceptional items have reduced shareholders' funds,
which at the end of the financial year stood at 31.8p per share. During the year, increased borrowing facilities
were arranged with our bank but these have now been reduced following the sale of the warehouse premises.
Although our bank borrowings as a percentage of shareholders' funds at the end of the period was 88%, adjusting
for the proceeds of the sale of the warehouse premises, this falls to 36%.
With the various provisions we have made against stock values it is unlikely that further significant stock write-
offs will be necessary in the foreseeable future. Other provisions made at the time of the reorganisation appear
to be adequate and it is unlikely that any further costs will be incurred in the current year.
Dividend
A final dividend cannot be recommended due to the negative balance on the Profit and Loss Account at the end of
the year. However, as previouslystated, dividend payments will be restored as soon as the financial results
permit.
Future Prospects
As I stated in the Interim Report, I believe the prospects for the Company are brighter than they have been for
some time.
Since my last Annual Report:
* We have totally reorganised the Company and lowered its cost base
* We have increased operating margins
* We have completely revamped the product ranges and improved product
presentation
* Since the year end we have substantially reduced the level of gearing
The main objectives in the current year must be to increase turnover and this we are committed to do. I believe
that we have now established the platform for a return to profitability.
In conclusion I should like to thank the management and staff of the Company for all their hard work and
commitment during the year.
R E W Newman
Chairman
THE LONGMEAD GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
52 weeks ended 1 November 2003
Before Exceptional 52 weeks 66 weeks
exceptional costs ended ended
costs (Note 1) 1 November 2 November
2003 2003 2003 2002
£ £ £ £
TURNOVER
2,598,200 - 2,598,200 3,922,538
Cost of sales (1,777,483)(478,253) (2,255,736) (3,097,260)
________ _______ ________ ________
GROSS PROFIT (478,253)
820,717 342,464 825,278
Distribution costs(685,072) (685,072) (873,082)
-
Administrative expenses (313,253) - (313,253) (398,427)
________ _______ _______ _______
OPERATING (LOSS) (177,608) (478,253) (655,861) (446,231)
________ _______
Interest receivable and similar income
5 3
Interest payable and similar charges (78,503) (107,377)
_______ _______
(LOSS) ON ORDINARY ACTIVITIES
BEFORE TAXATION (734,359) (553,605)
Tax credit on loss on ordinary activities
- -
_______ _______
(LOSS) ON ORDINARY ACTIVITIES
AFTER TAXATION (734,359) (553,605)
_______ _______
RETAINED (LOSS)
FOR THE PERIOD (734,359) (553,605)
======= =======
(LOSS) PER SHARE (13.15)p (11.79)p
There are no recognised gains and losses other than the gains and losses set out in the profit and loss
account.
THE LONGMEAD GROUP PLC
CONSOLIDATED BALANCE SHEET
At 1November 2003
1 November 2 November
2003 2002
£ £
FIXED ASSETS
Intangible assets
24,981 27,981
Tangible assets 1,979,586
2,199,399
________ ________
2,004,567
2,227,380
________ ________
CURRENT ASSETS
Stocks 1,201,628
1,363,643
Debtors 669,677
733,457
Cash at bank and in hand
9,267 1,219
________ ________
1,880,572
2,098,319
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR (955,490) (1,058,350)
________ ________
NET CURRENT ASSETS 925,082
1,039,969
________ ________
TOTAL ASSETS LESS
CURRENT LIABILITIES 2,929,649
3,267,349
CREDITORS: AMOUNTS FALLING
DUE AFTER MORE THAN ONE YEAR (1,152,200) (755,541)
________ ________
1,777,449
2,511,808
======== ========
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 270,257
275,329
Profit and loss account
(467,994) 261,293
________ ________
TOTAL EQUITY SHAREHOLDERS' FUNDS 1,777,449 2,511,808
======== ========
THE LONGMEAD GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
52 weeks ended 1 November 2003
2003 2002
£ £
CASH FLOW FROM OPERATING
ACTIVITIES (197,392) (125,707)
Returns on investment and
Servicing of finance (80,061) (105,907)
Capital expenditure and
Financial investment (48,042) (69,006)
_______ _______
NET CASH (OUTFLOW)
BEFORE FINANCING (325,495) (300,620)
Financing - Increase in debt 394,653 170,631
_______ _______
INCREASE/(DECREASE) IN CASH 69,158 (129,989)
======= =======
NOTES TO THE ACCOUNTS
52 weeks ended 1 November 2003
1. EXCEPTIONAL COSTS
2003 2002
£ £
Stock write-offs 301,547 256,667
Additional depreciation charge relating to write-off of fixed assets 152,040 -
Factory closure costs 24,666 115,432
Reorganisation of Board and compensation for redundancy -37,275
___________ __________
478,253 409,374
====== ======
2. EARNINGS 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 (2002: 4,695,213) and on the loss attributable to ordinary
shareholders of £734,359 (2002: £553,605).
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 52 weeks ended 1
November 2003 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 2003 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, Smith & Williamson Corporate Finance Limited at No 1 Riding House
Street, London, W1A 3AS for one month from the date of this announcement.
The Longmead Group PLC
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