Preliminary Results - 2007

RNS Number:0685H
Walker (Thomas) PLC
06 November 2007




Preliminary Statement of results for the year ended 30 June 2007


Thomas Walker PLC, the specialist engineering group, today publishes its
preliminary results for the year ended 30 June 2007.

Turnover and profitability have been enhanced in both of the trading sectors at
a time when considerable managerial attention has been focussed on the
amalgamation of the two stamping operations into a single operation in the
Digbeth factory, with the CNC operations at Kings Norton.

The consolidation was completed successfully in June 2007 on schedule and within
budget so that the Group now comprises of two operating divisions:

Stampings - which now trades as TW Stamping Ltd

and

Accessories - which incorporates the traditional garment and identity businesses
of Thomas Walker (UK) Ltd and Thomas Walker (SEA) Ltd.

This structure gives a stable basis for ongoing operations, with clear lines of
authority and accountability.


Results and Dividend

A full year of trading from the new brass stamping acquisition, together with a
trend-breaking rise in sales of garment accessories, contributed to a 35%
increase in turnover to #9,890,272 (2006 - #7,328,379). Profit Before Tax rose
to #629,341 (2006 - #252,603). Earnings per share were 8.60p (2006 - 2.65p). The
results include the effects of revision to the method of accounting for
overheads absorbed in stock. This has improved the results on a one off basis
but is not a change of accounting policy.

Strong cash management allowed the Group to finance the relocation and
rationalisation projects in T W Stamping Ltd from operating cashflows and indeed
to start reducing the indebtedness incurred by the recent acquisitions.

The Board is pleased to recommend a final dividend of 1.0 pence per share, thus
yielding an overall dividend of 1.5 pence per share for the year. (2006 -
overall dividend 1.0 pence per share).


Stampings

The stamping operations have been dominated by the transfer of the Yardley plant
across Birmingham to the established operation at Digbeth.

In spite of the inevitable disruption caused by the move, the turnover of TW
Stamping Ltd exceeded last year by over 50% and was some 10% over budget.
Profits were encouraging.

Brass prices remained volatile as they fluctuated over a 20% range during the
year. Stampings customers, who operate at the secondary or tertiary levels are
finding that their customers are becoming more resistant to increased metal
costs and are, in turn, exerting pressure on T W Stamping's own margins. We have
been responding to this pressure by innovation and product re-engineering. Brass
prices appear to be somewhat more settled in the early part of the new financial
year.

The stamping acquisitions have to date yielded what was expected and we are
confident that modernisation and other cost saving projects will help sustain
progress.


Accessories

Identity products have experienced a static twelve months with only marginal
improvement in sales over the previous year. Early signs for the coming period
are more encouraging. Recruitment is in hand to give more impetus to Identity
sales.

Garment Accessories bucked the long term trend of decline and rose by some 14%
as the earlier strategic appointment of distributors in Eastern Europe and Asia
proved successful in catering for the manufacturers, who had come out of China.
This development is encouraging and will be exploited to the full. It is,
however unlikely to be indicative of a reversal in the long term trend.

Customer investment in Thomas Walker attaching machines is developing strongly
in Asia and this shows encouraging commitment to the Company's products.

Thomas Walker has announced that the press shop at Catesby will close in the
autumn of 2007 as declining throughput has made the department unsustainable.
Some production will be maintained elsewhere in the UK so that security of
supply may be ensured.


Adoption of International Financial Reporting Standards ("IFRS")

These results are the last which will be published under UK Generally Accepted
Accounting Principles. The Company is currently preparing for the implementation
of IFRS in time for the next Interim Report.


Outlook

The Company opened the new period with ample order books in all sectors.

In the first few months of the current financial year, there has been a general
softening of the Stampings market, as illustrated by slowness in the European
Brass Market. North America, difficult at best, has now been largely discounted
on the basis of adverse exchange rates.

The TW Stamping mix and range of outlets is well placed to buffer and preserve
established trade and to weather the current weaknesses. Current priorities
centre on streamlining the operation and administration of the Digbeth factory.

The outlook for the garment accessory operations is tempered by the end of the
transitional quota agreement between the European Union and China at the end of
2007.

The Board believes that Thomas Walker PLC is well placed to consolidate its
recent progress and to enter the next phase of the Group's corporate development
into higher technology and niche markets.


Bryan C Knight
Chairman
6 November 2007



Group Profit and Loss Account
for the year ended 30 June 2007
                                                            2007           2006
                                                           #'000          #'000
--------------------------------------------------------------------------------

Turnover                                                   9,890          7,328

Net operating expenses                                    (9,093)        (6,999)
--------------------------------------------------------------------------------

Operating profit                                             797            329

Bank interest receivable                                       -              -
Interest payable                                            (167)           (90)
Net finance income / (expense) in respect of pensions         (1)            14
--------------------------------------------------------------------------------
Profit on ordinary activities before taxation                629            253
Taxation on profit on ordinary activities                    (99)           (89)
--------------------------------------------------------------------------------
Profit for the financial year                                530            164
--------------------------------------------------------------------------------
Earnings per share - basic and diluted                      8.60p          2.65p
--------------------------------------------------------------------------------

All results in the year were from continuing operations.



Group Statement of Total Recognised Gains and Losses
for the year ended 30 June 2007 
                                                            2007           2006
                                                           #'000          #'000
--------------------------------------------------------------------------------

Profit for the financial year attributable to members 
 of the parent company                                       530            164 
Actuarial gain / (loss) related to the pension scheme        511            (20)
Deferred tax on actuarial (gain) / loss                     (153)             6
--------------------------------------------------------------------------------
Total recognised gains and losses relating to the year       888            150
--------------------------------------------------------------------------------
Prior year adjustment                                          -           (249)
--------------------------------------------------------------------------------
Total recognised gains and losses since the last 
 annual report                                               888            (99)
--------------------------------------------------------------------------------





Group Balance Sheet
at 30 June 2007
                                                            2007           2006
                                                           #'000          #'000
--------------------------------------------------------------------------------

Fixed assets
Intangible assets                                            543            572
Tangible assets                                            3,958          3,669
--------------------------------------------------------------------------------
                                                           4,501          4,241
Current assets
Stocks                                                     1,794          1,483
Debtors                                                    2,540          2,577
Cash at bank and in hand                                     249            263
--------------------------------------------------------------------------------
                                                           4,583          4,323

Creditors: amounts falling due within one year            (2,893)        (2,682)
--------------------------------------------------------------------------------

Net current assets                                         1,690          1,641
--------------------------------------------------------------------------------

Total assets less current liabilities                      6,191          5,882

Creditors: amounts falling due after more than one year   (1,392)        (1,497)

Provision for liabilities and charges                        (93)          (109)
--------------------------------------------------------------------------------
Net assets excluding pension scheme asset / (liability)    4,706          4,276
--------------------------------------------------------------------------------
Defined benefit pension scheme asset / (liability)           236           (134)
--------------------------------------------------------------------------------

Net assets including pension scheme asset / (liability)    4,942          4,142
--------------------------------------------------------------------------------

Capital and reserves
Called up share capital                                      308            308
Share premium account                                         15             15
Profit and loss account                                    4,619          3,819
--------------------------------------------------------------------------------


Equity shareholders' funds                                 4,942          4,142
--------------------------------------------------------------------------------




Group Statement of Cash Flows
for the year ended 30 June 2007
                                                                    2007                         2006
                                                           #'000          #'000          #'000          #'000
--------------------------------------------------------------------------------------------------------------

Net cash inflow from operating activities                                   873                          (198)

Returns on investments and servicing of finance
Interest paid                                               (161)                          (76)
Interest paid on finance leases                               (6)                          (12)
--------------------------------------------------------------------------------------------------------------
                                                                           (167)                          (88)
Taxation
Corporation tax paid                                         (24)                          (90)
Repayment of prior year corporation tax                       40                             4
--------------------------------------------------------------------------------------------------------------
                                                                             16                           (86)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets                   (811)                         (264)
--------------------------------------------------------------------------------------------------------------
                                                                           (811)                         (264)
Acquisition
Payments to acquire tangible fixed assets                      -                          (849)
Payments to acquire intangible fixed assets                    -                          (320)
--------------------------------------------------------------------------------------------------------------
                                                                              -                        (1,169)
Equity dividends paid                                                       (83)                          (49)
--------------------------------------------------------------------------------------------------------------

Net cash inflow before management of liquid 
 resources and financing                                                   (172)                       (1,854)
--------------------------------------------------------------------------------------------------------------

Financing
Repayment of bank loan                                       (59)                         (179)
Proceeds from new bank facilities                            263                         2,198
Repayment of capital elements of finance leases              (46)                          (42)

--------------------------------------------------------------------------------------------------------------

Net cash inflow from financing                                              158                         1,977
--------------------------------------------------------------------------------------------------------------

(Decrease) / increase in cash in the year                                   (14)                          123
--------------------------------------------------------------------------------------------------------------


Dividends will be paid on 11th December 2007 to those shareholders on the 
Register at the close of business on 16th November 2007.

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 not yet made a report under Section 235 of the Companies Act 1985 
on the financial statements for the year ended 30 June 2007 from which the 
financial information is extracted, and consequently full accounts for the 
period have not been filed at Companies House. The report of the auditors on the
accounts for the year ended 30 June 2006 was unqualified and there was no 
statement under either section 237(2) or section 237(3). Full accounts for the 
year ended 30 June 2006 have been filed at Companies House.

This announcement was approved by the Board of Directors on 6 November 2007.

The Annual General Meeting will be held on 7th December 2007 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.



Enquiries
Edward Cook
Managing Director
Telephone - 0121 486 4101

John Lomer
Finance Director
Telephone - 07778 889 977

Colin Smith
Arden Partners plc
Telephone - 0121 423 8940




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