Final Results

    RNS Number : 8564F
  Walker (Thomas) PLC
  15 October 2008
   

    Date: Wednesday 15 October 2008
    Embargoed: 7.00am
    Thomas Walker plc

    Preliminary Results
    for the year ended 30 June 2008

    Chairman's Statement

    Challenging trading conditions have had an adverse influence on the Group's overall performance during the financial year ending 30 June
2008. Downturns in both garment sales and in the plumbing trades allied to house-building have had a detrimental effect on the results for
UK and the Stamping operation.

    I indicated at the time of the interim results statement that business in the early months of 2008 was encouraging, following the
disappointing losses in the six months to December 2007. It is therefore pleasing to confirm a significant recovery in the second half,
resulting in an operating profit of £203,000 (2007: £840,000) for the full year.

    This recovery is underlined by the fact that the Group's operations proved to be a solid generator of cash, with an inflow of £677,000
(2007: £722,000) from operating activities during the year. This is particularly pleasing given the "one-off costs" associated with raw
materials during the latter part of 2007. These were reported within the Interim Results Announcement of 28 March 2008.

    Stamping

    A new Management team appointed in TW Stamping during December 2007 has yielded tangible benefits improving margins and reverting to
steady profit. Building on this encouraging performance, management has been further strengthened with the appointment of a new Director of
Sales and Marketing. This adds new expertise for the development of key market sectors which offer increased added value; for example
business with a precision machining component as well as stamping, in which TW Stamping intends to invest in order to develop long term
business.

    Garment Accessories

    The widespread problems experienced by garment retailers in the UK, Europe and the USA, have been well documented in the press. The
resultant downturn in demand, of course, reduces the market potential for accessories. For this reason year on year sales are down and the
prime range of "Non-Crush" hooks and bars has experienced a significant fall in sales.

    The migration of garment manufacture to China and within China is in a new state of uncertainty as there are persistent rumours of
significant cost increases due to legislation determining working conditions, environmental norms and transport costs. Garment manufacturers
are already considering alternative manufacturing locations, including India, Bangladesh and Vietnam. Such changes usually result in lost
business in the short term.

    Sales of Identity Products had a strong second half. Supported by high levels of service, new customers and new products brought in
extra business. In July 2008, Thomas Walker (UK) also recruited a new Sales Manager to develop further markets and products in new areas.

    Financial Results

    These are the first full year results to be prepared using International Financial Reporting Standards as adopted by the EU (IFRS). The
corresponding figures for the previous year have been restated accordingly.

    Sales for the year ending 30 June 2008 were £9,215,000 (2007: £9,890,000). This generated an operating profit of £203,000 (2007:
£840,000). Of this £251,000 was generated in the second half of the year.

    Despite the challenging trading conditions and the difficulties experienced during the first half of the financial year, net debt was
reduced to £2.0 million in June 2008 (2007: £2.2 million).

    Dividend

    The Board is pleased to recommend a final dividend of 1.0 penny per share (2007: 1.0 penny per share). This, together with the interim
payment of 0.5 pence per share maintains the overall dividend at 1.5 pence at the same level as in 2007.

    The final dividend, which is subject to shareholder approval at the Annual General Meeting to be held on Tuesday 11 November, will be
due for payment on 21 November 2008 to shareholders on the Register as at 24 October 2008.

    Employees

    Mr Edward Cook stood down as Managing Director on 1 July 2008 but he remained on the Board until his retirement on 4 October 2008.

    Edward Cook has led the Group through many changes to its present status as an AIM listed PLC. He also successfully led the relocation
of the Group to its present premises in Kings Norton and the acquisition of the businesses, which now, together, constitute TW Stamping.

    On behalf of my fellow directors, shareholders and everyone at Thomas Walker PLC, I thank him for his unstinting service to the Group
and wish him a long and prosperous retirement.

    As previously announced, Mr William Good joined the Board on 1 June 2008 prior to assuming the role of Managing Director from 1 July
2008. I welcome Mr Good (or "Bill" as he prefers to be called in less formal circumstances) as a colleague and I look forward to working
with him during the next phase of the Group's development.

    On behalf of the shareholders, I express my sincere thanks to my colleagues for their dedication, hard work and commitment to the Group
throughout the past twelve months.

    Outlook

    All the markets in which the Group operates are likely to continue to be influenced by ongoing financial uncertainty. The general
trading environment in the early months of the new financial year has been difficult and this is impacting the results of the stamping
operation. On the positive side the operations of TW UK have performed to expectations. Within TW Stamping significant opportunities are
being developed for adding value through the addition of precision machining for both existing and new customers.

    The Board remains confident that the fundamentals of our operations remain sound and that the Group is well positioned to take advantage
of any possible developments in market conditions.

    Bryan C Knight
    15 October 2008
    Non-Executive Chairman  
    Group Income Statement
    for year ended 30 June 2008
                                                              2008     2007*
                                                              £'000    £'000
 Revenue                                                      9,215    9,890
 Operating expenses excluding one off costs                   (8,851)  (9,050)
 Operating expenses - one-off costs                           (161)    -
 Operating profit                                             203      840
 Financial expense                                            (180)    (167)
 Net finance expense in respect of pensions                   (20)     (22)
 Profit before taxation                                       3        651
 Taxation                                                     (15)     (146)
 Profit for the period attributable to the equity holders of  (12)     505
 the company
 Basic and diluted earnings per share                         (0.2p)   8.20p

    * Restated for IFRS




    Group Statement of Recognised Income and Expense
    for year ended 30 June 2008
                                                                  2008   2007*
                                                                  £'000  £'000
 Actuarial (losses)/gains on defined benefit pension scheme       (109)  511
 Deferred tax on actuarial gain/(loss)                            31     (153)
 Exchange differences on translation of foreign operations        2      4
 Net (loss)/income recognised directly in equity                  (76)   362
 Profit for the year attributable to the equity holders of the    (12)   505
 parent Company
                                                                  (88)   867

    *Restated for IFRS

      Group Balance Sheet
    at 30 June 2008
                                   2008     2007*
                                   £'000    £'000
 Non-current assets
 Intangible assets                 555      565
 Property, plant and equipment     3,861    3,958
 Retirement benefit surplus        247      337
                                   4,663    4,860

 Current assets
 Stocks                            1,874    1,794
 Trade and other receivables       2,096    2,540
 Cash and cash equivalents         28       249
                                   3,998    4,583
 Total assets                      8,661    9,443

 Current liabilities
 Trade and other payables          (1,691)  (1,671)
 Tax payable                       -        (150)
 Obligations under finance leases  (41)     (46)
 Bank loans                        (679)    (1,026)
                                   (2,411)  (2,893)

 Non-current liabilities
 Bank loans                        (1,286)  (1,348)
 Obligations under finance leases  -        (44)
 Deferred tax liabilities          (225)    (241)
                                   (1,511)  (1,633)
 Total liabilities                 (3,922)  (4,526)

 Net assets                        4,739    4,917

  
 Capital and reserves
 Share capital                     308      308
 Share premium                     15       15
 Reserves                          6        4
 Retained earnings                 4,410    4,590
 Total equity                      4,739    4,917

    * Restated for IFRS
      Group Cash Flow Statement
    for year ended 30 June 2008
                                                      2008   2007*
                                                      £'000  £'000
  
 Cash flows from operating activities
 (Loss)/profit for the year                           (12)   505
 Adjustments for:
 Depreciation                                         472    522
 Amortisation                                         10     7
 Financial expense                                    200    189
 Gain on sale of property, plant and equipment        (28)   -
 Taxation                                             15     146
                                                      657    1,369
 Decrease in trade and other receivables              447    38
 (Increase) in stock                                  (80)   (311)
 (Decrease) in trade and other payables               (33)   (218)
 Increase/(decrease) in deferred tax liabilities      16     (5)
                                                      1,007  873
 Net interest paid                                    (180)  (167)
 Tax paid                                             (150)  16
 Net cash from operating activities                   677    722
 Cash flows from investing activities
 Proceeds from sale of property, plant and equipment  27     -
 Acquisition of property, plant and equipment         (375)  (811)
 Net cash from investing activities                   (348)  (811)
  
 Cash flows from financing activities
 (Repayment of)/proceeds from new bank facilities     (347)  263
 Bank loan repayment                                  (62)   (59)
 Payment of finance lease liabilities                 (49)   (46)
 Dividends paid                                       (92)   (83)
 Net cash from financing activities                   (550)  75
 Net decrease in cash and cash equivalents            (221)  (14)
 Cash and cash equivalents at beginning of period     249    263
 Cash and cash equivalents at end of the period       28     249

    * Restated for IFRS

    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 made a report under Section 235 of the Companies Act 1985 on the financial statements for the year
ended 30 June 2008 from which the financial information is extracted, but full accounts for the year ended 30 June 2008 have not yet been
filed at Companies House. The report of the auditors on the accounts for each of the years ended 30 June 2007 and 30 June 2008 was
unqualified and there was no statement under either section 237(2) or section 237(3). Full accounts for the year ended 30 June 2007,
prepared under UK GAAP and restated under IFRS for the purpose of this announcement, have been filed at Companies House.

    This announcement was approved by the Board of Directors on 15 October 2008.

    The Annual General Meeting will be held on 11 November 2008 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 and will also be published on the Company's website.

 Enquiries:
 Bill Good, Group Managing Director                                           
 John Lomer, Group Finance Director  Colin Smith         Katie Dale
 Thomas Walker plc                   Arden Partners plc  Golley Slater
 Mobile: [phone] (BG)           Tel: [phone]  Tel: [phone]
 Mobile: [phone] (JL)                              Mobile: [phone]



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