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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Widney | LSE:WDNY | London | Ordinary Share | GB0009665778 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 2.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:1540X
Widney PLC
24 May 2007
The headline for Widney Plc announcement released today Thursday 24 May at 07:00
under RNS No 1362X should read Interim Results.
The announcement text is unchanged and is reproduced in full below.
Interim results for the six months ended 31 March 2007
Widney plc is the holding company for Widney UK and Belcot Tool and Die Limited.
Widney UK designs and manufactures window systems for specialist vehicles and
telescopic slides. Belcot Tool and Die Limited manufactures metal press tools
for the automotive industry.
* Loss before taxation of #2,062,000 (2006: #388,000) stated after losses on
discontinued activities of #1,006,000 and non-recurring operating items of
#3,288,000
* Loss before taxation stated before profit on sale of Widney Pressings
Limited and two freehold properties
* Dividend 1/2p (2006 : nil)
* Contracts exchanged for sale of Widney Pressings for #1,400,000 plus
surplus plant and equipment for #750,000
* Contracts exchanged to sell two freehold properties for #7,000,000
* Pro-forma balance sheet net assets of #7,905,000 (31.03.07 : #3,355,000)
* Remaining group is profitable and debt free
Commenting on prospects, Joe Grimmond, Chairman, said:
"If we had not taken the decision to discontinue cab operations and to sell off
Group assets there would have been no prospects for the Group as a whole.
With bank debt eliminated and with substantial cash reserves our situation is
immeasurably improved.
Widney UK has a strong position in its marketplace and continues to perform
well.
Belcot operates in a marketplace that requires consolidation. We intend to play
our part in that process.
With our strengthened balance sheet and profitable core I am confident that our
group has a secure and profitable future."
24 May 2007
Enquiries:
Widney plc 020 7457 2020 (today)
Joe Grimmond, Chairman 0121 327 5500 (thereafter)
Graham Errington, Finance Director
Insinger de Beaufort 020 7190 7000
Chris Caldwell
College Hill 020 7457 2020
Richard Pearson
Chairman's Statement
Results
Turnover on continuing operations was #9,823,000 plus #7,616,000 from Widney
Pressings (2006: #31,468,000) and Operating Profit on continuing operations
before non-recurring operating items was #220,000 plus #314,000 from Widney
Pressings (2006: #585,000). The loss before taxation was #2,062,000 (2006:
#388,000) stated after losses on discontinued activities of #1,006,000 and
non-recurring operating items of #3,288,000. The group loss before taxation is
stated before the profit on the sale of Widney Pressings Limited and two
freehold properties which have been reflected in the consolidated pro forma
balance sheet included in this interim statement.
Dividend
The Board proposes paying an interim dividend of 0.5p per share (2006: nil) on
12 July 2007 to shareholders on the register on 8 June 2007.
Widney Cabs Limited Administration
In spite of substantial new business won during 2006, demand failed to meet
anticipated levels during late December 2006 and early January 2007 and it
became clear that the forecast levels of sales would not be met. A review of
customer demand expected in the first quarter of 2007 confirmed that sales were
not going to be sufficient to prevent very serious losses. Your Board decided
to withdraw support from our subsidiary and Administrators were appointed on 22
January 2007. Widney plc was the largest individual unsecured creditor and
these results include losses to the Group of #3,327,000.
The primary cause of this Administration was the unexpected decision made, for
strategic reasons, by our major customer Caterpillar UK Limited to resource all
its cab business to our competitors in France. We had only recently been
awarded this business against the same competitors after months of investigation
by Caterpillar's Procurement team.
The loss of this business and the effect of this decision in our market place
proved devastating.
I am very disappointed that our widely acknowledged success in turning a
substantially loss making, poorly performing operation into a substantially
profitable, competitive, quality full trim cab supplier resulted in such an
undeserved ill reward.
To those suppliers who lost money as a consequence of this Administration I
apologise. To those ex-colleagues who worked so hard to succeed and lost their
jobs and careers you deserved better.
Sale of Group Assets
The Administration of Widney Cabs left the Group in a seriously over-borrowed
situation. We had no alternative but to sell assets to reduce our indebtedness.
We agreed a programme of action with our bankers and immediately put our
freehold properties up for sale along with surplus plant and equipment. During
negotiations to sell these assets the opportunity arose to sell Widney Pressings
Limited. Pressings had been an excellent acquisition but our priority had to be
debt reduction and we accepted an attractive offer to sell the business. We
exchanged contracts, subject to shareholder approval, for the sale of the
business on 30 March 2007 for the sum of #1,400,000. In addition surplus plant
and equipment was sold to the same purchaser for the sum of #750,000.
Following intensive efforts and negotiations the following week we exchanged
contracts to sell two freehold properties for #7,000,000. Contracts were
exchanged on 5 April 2007 subject to shareholder approval. Shareholder approval
was given on the 20 and 30 April 2007 for the sale of Widney Pressings Limited
and the two freehold properties. Further surplus plant and equipment was sold
for #191,500.
The experience, industrial expertise and support of my fellow board members was
invaluable throughout this period. I would also like to thank Maclay Murray &
Spens, our solicitors, for their superb support and service during this
difficult period.
The very real improvement in our group position after completion of these sales
is reflected in the attached consolidated pro forma balance sheet.
Operations
The period was dominated by our decision to place Widney Cabs Ltd into
Administration.
In spite of this all other operations operated profitably.
The engineering sector has been difficult in general and the automotive sector
in particular as tough as I can remember. Against this background our
businesses performed very well.
Widney Pressings
Widney Pressings lost further business to Turkey and had to counter adverse
comment and concern over group viability. We were awarded a prestigious new
contract for the supply of aftermarket components for the Jaguar S series in
March 2007. I wish the company well under its new ownership.
Belcot
In the most difficult conditions Belcot operated profitably. Management
continues to cut costs in line with expected business demand. We do not expect
to see any improvement in this area over the next year, but will look to use our
financial strength to increase our share of a declining market.
Widney UK
Widney UK introduced a major new contract into production during the period,
creating some disruption, which was to be expected. We have completed the
design and prototyping of a new slide product with considerable sales potential.
Despite the strength of sterling export performance has been remarkable with
70% of sales going to export markets.
Pro-Forma Consolidated Balance Sheet
A balance sheet reflecting completion of the various asset sales has been
included in these interim statements.
Prospects
If we had not taken the decision to discontinue cab operations and to sell off
Group assets there would have been no prospects for the Group as a whole.
With bank debt eliminated and with substantial cash reserves our situation is
immeasurably improved.
Widney UK has a strong position in its marketplace and continues to perform
well.
Belcot operates in a marketplace that requires consolidation. We intend to play
our part in that process.
With our strengthened balance sheet and profitable core I am confident that our
group has a secure and profitable future.
Consolidated Profit and Loss Account
6 months to 6 months to Year to
31/3/07 31/3/06 30/9/06
(As restated)
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Turnover - Continuing operations - Group 9,823 31,468 64,165
- Widney Pressings 7,616 - -
- Discontinued operations 6,756 - -
24,195 31,468 64,165
Operating (loss)/profit before non-recurring operating
items
Continuing operations - Group 220 585 1,120
- Widney Pressings 314 - -
Discontinued operations (1,006) - -
(472) 585 1,120
Non-recurring operating items (Note 3)
Continuing operations (3,169) (638) (610)
Discontinued operations (119) - -
(3,288) (638) (610)
Operating (loss)/profit after non-recurring
operating items (3,760) (53) 510
Profit on Administration of
discontinued operations 2,021 - -
Interest payable (295) (307) (599)
Other finance costs (28) (28) (60)
(Loss) before taxation (2,062) (388) (149)
Taxation (Note 4) - 61 59
Loss after taxation (2,062) (327) (90)
Dividends - non-equity - - -
- equity - (646) -
Retained (loss) for the financial period (2,062) (973) (90)
Basic loss per share (Note 5) (7.98p) (1.27p) (0.35p)
Diluted loss per share (Note 5) (7.98p) (1.27p) (0.35p)
Average number of ordinary shares in
issue ('000's) (Note 5) 25,827 25,827 25,827
Note: Continuing operations include the results of Widney Pressings Ltd, since
the contract for the sale of the whole of the issued share capital had not been
completed prior to the date of these interim results.
Consolidated Balance Sheet
as at 31 March 2007
31/3/07 31/3/06 30/9/06
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Fixed assets
Intangible assets
Positive goodwill 948 998 973
Negative goodwill (2,029) (2,567) (2,500)
(1,081) (1,569) (1,527)
Tangible assets 3,152 13,426 12,270
2,071 11,857 10,743
Current assets
Land & buildings held for resale 6,463 - 735
Stock 2,455 5,214 5,192
Debtors
amounts falling due within one year 6,924 10,708 12,207
15,842 15,922 18,134
Creditors
Amounts falling due within one year (10,531) (16,882) (18,252)
Net current assets/(liabilities) 5,311 (960) (118)
Total assets less current liabilities 7,382 10,897 10,625
Creditors
Amounts falling due after more than one year (3,436) (5,042) (4,501)
Provisions for liabilities and charges - (16) (65)
Net assets excluding pension liabilities 3,946 5,839 6,059
Pension liabilities
Total of defined benefit schemes with net liabilities (591) (735) (591)
Net assets including pension liabilities 3,355 5,104 5,468
Capital and reserves
Called up share capital 258 258 258
Share premium account 2,092 2,092 2,092
Merger reserve 501 501 501
Profit and loss account 504 2,253 2,617
Shareholders funds 3,355 5,104 5,468
Consolidated Cash Flow Statement
6 months to 6 months to Year to
31/3/07 31/3/06 30/9/06
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000 #'000 #'000 #'000
Net cash inflow/(outflow) from operating activities 1,107 (348) 630
Returns on investment and servicing of finance
Interest paid (237) (263) (551)
Interest element of finance lease rentals paid (51) (37) (48)
Non-equity dividends (7) (7) -
Net cash outflow from returns on investment and
servicing of finance (295) (307) (599)
Taxation
UK Corporation Tax (paid) - (333) (517)
Capital expenditure
Purchase of tangible fixed assets (397) (182) (508)
Sale of tangible fixed assets 1,257 2 1
Net cash inflow/(outflow) from capital
expenditure 860 (180) (507)
Acquisitions
Purchase of assets - (1,422) (1,445)
Equity dividends paid - (646) (646)
Net cash inflow/(outflow) before financing 1,672 (3,236) (3,084)
Financing
New loans - 300 300
Loan repayments (1,219) (316) (675)
Capital element of finance lease rentals (143) (230) (500)
Net cash outflow from financing (1,362) (246) (875)
Increase/(decrease) in cash in the period 310 (3,482) 3,959
Consolidated Statement of Total Recognised Gains and Losses
6 months to 6 months to Year to
31/3/07 31/3/06 30/9/06
(Unaudited) (As restated) (Audited)
(Unaudited)
#'000 #'000 #'000
(Loss)/profit for the period (2,062) (327) (90)
Actuarial gain (loss) recognised in the pension scheme (51) (51) 108
Deferred tax arising on losses in the pension scheme - - (32)
Total recognised gains and losses relating to the (2,113) (378) (14)
period
Notes to the Financial Statements
Basis of Preparation
1. The interim financial statements have been prepared on the basis of the
accounting policies set out in the Group's 2006 statutory accounts.
On 22 January 2007 Widney Cabs Limited was placed into Administration. These
financial statements present the consolidated results for Widney Cabs Limited up
to the point the Administrators were appointed.
As the directors of the company have had limited access to the accounting
records of Widney Cabs Limited since the date it was placed into Administration,
in preparing the consolidated financial statements they have included amounts
extracted from the Widney Cabs Limited management accounts for the period up to
31 December 2006, the period end closest to the point at which Widney Cabs
Limited was put into Administration (namely 22 January 2007). Its net book
liabilities at this point in time have been eliminated from the consolidation.
With this exception, the consolidated financial statements are based on
financial statements which are cotermious with those of the parent company and
the directors are not aware of any other matters that should have been disclosed
in these consolidated financial statements.
The financial information for the half year ended 31 March 2007 and 31 March
2006 have not been audited, although the auditor has carried out a review as set
out on page 11 of this statement. The information set out herein does not
constitute statutory accounts as defined in Section 240 of the Companies 1985.
The accounts for the year to 30 September 2006 have been reported on by the
company's auditors and delivered to the Registrar of Companies. The auditor's
report on those accounts was unqualified and did not contain any statement under
section 237 (2) or (3) of the Companies Act 1985.
The financial information for the half year ended 31 March 2006 has been
restated to take into account the effects of FRS25 where dividends on preference
shares have been transferred to interest-paid.
2. The Group's activities solely comprise Engineering and therefore no
analysis of activity by business segment is provided.
3. The non-recurring operating items are made up of the following:
Continuing Discontinued
Total Operations Operations
#'000 #'000 #'000
Redundancy and reorganisation (616) (497) (119)
Bad debts and other costs relating to Widney Cabs (3,327) (3,327) -
Profit on sale of fixed assets and release of
negative goodwill 655 655 -
(3,288) (3,169) (119)
4. Taxation
There is no taxation charge arising on the loss for the period.
5. The earnings per share calculation is as follows:
6 months to 6 months to Year to
31/3/07 31/3/06 30/9/06
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Loss for the period (2,062) (327) (90)
Average number of shares in issue ('000) 25,827 25,827 25,827
Basic loss per share (7.98p) (1.27p) (0.35p)
Diluted loss per share (7.98p) (1.27p) (0.35p)
6. Reconciliation of operating profit to net cash flow from operating
activities
6 months to 6 months to Year to
31/3/07 31/3/06 30/9/06
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Operating (loss)/profit after non-recurring (3,760) (53) 510
operating items
Depreciation 577 683 1,469
Amortisation of goodwill 25 28 53
Release of negative goodwill (463) (211) (259)
Profit on disposal of fixed assets - - (1)
(Increase)/decrease in stocks 144 (92) (64)
(Increase)/decrease in debtors 3,273 (3,356) (4,768)
Increase/(decrease) in creditors 1,210 2,653 3,690
Net cash (outflow)/inflow from operating 1,007 (348) 630
activities
7. Reconciliation of net cash flow to movement in net debt.
6 months to 6 months to Year to
31/3/07 31/3/06 30/9/06
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Increase/(Decrease) in cash in the period 310 (3,482) (3,959)
Cash increase/(decrease) from increase/(decrease)
in debt finance 1,219 16 375
Cash outflow from finance leases 143 230 500
Change in net debt resulting from cash flow 1,672 (3,236) (3,084)
Inception of finance leases (139) (668) (705)
Non cash items 1,882 - -
Movement in net debt for the period 3,415 (3,904) (3,789)
Opening net debt (10,244) (6,255) (6,455)
Closing net debt (6,829) (10,159) (10,244)
Non cash items relate to Widney Cabs overdraft movement.
8. Copies of this statement are being sent to all shareholders and copies are
available from the company's registered office at Plume Street, Aston,
Birmingham B6 7SA
Independent review report by KPMG Audit plc to Widney plc
Introduction
We have been engaged by the company to review the financial information for the
six months ended 31 March 2007 which comprises the consolidated profit and loss
account, consolidated balance sheet, consolidated cash flow statement,
consolidated statement of recognised gains and losses and the related notes. We
have read the other information contained in the interim report and considered
whether it contains any apparent misstatements or material inconsistencies with
the financial information. This report is made solely to the company in
accordance with the terms of our engagement. Our review has been undertaken so
that we might state to the company those matters we are required to state to it
in this report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the company for
our review work, for this report, or for the conclusions we have reached.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the AIM
Rules which require that the interim report must be prepared and presented in a
form consistent with that which will be adopted in the company's annual accounts
having regard to the accounting standards applicable to such annual accounts.
Review work performed
We conducted our review having regard to the guidance contained in Bulletin
1999/4: Review of interim financial information issued by the Auditing Practices
Board for use in the United Kingdom. A review consists principally of making
enquiries of group management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with International Standards on Auditing (UK and Ireland) and
therefore provides a lower level of assurance than an audit. Accordingly, we do
not express an audit opinion on the financial information.
We planned our review so as to obtain all the information and explanations
necessary in order to provide us with sufficient evidence to give reasonable
assurance that there are no material modifications required to the financial
information included in this report. However, the evidence available to us was
limited because, due to the appointment of administrators to the group's
subsidiary, Widney Cabs Limited, as explained in note 1, we were unable to
obtain access to its accounting records.
Therefore, we were unable to review either the results of Widney Cabs Limited
included in the consolidated profit and loss account as discontinued operations
in respect of the period to 22 January 2007 (the date the administrators were
appointed) or the related disclosures in the notes to the consolidated profit
and loss account.
Review conclusion
On the basis of our review, with the exception of the matters referred to below,
we are not aware of any material modifications that should be made to the
financial information in the consolidated balance sheet as presented for the six
months ended 31 March 2007.
Because of the possible effect of the limitation in evidence available to us, we
are unable to form a conclusion as to whether the loss of the discontinued
operations and the profit on administration of discontinued operations are
fairly stated in the consolidated profit and loss account for the six months
ended 31 March 2007; or that the consolidated statement of cash flows presents
fairly the cash flows relating to discontinued operations.
KPMG Audit Plc
Chartered Acc
Pro Forma Consolidated Balance Sheet
as at 31 March 2007 Pro Forma
31/3/07 adjustments Pro Forma
(Unaudited) (Unaudited) (Unaudited)
#'000 #'000 #'000
Fixed assets
Intangible assets
Positive goodwill 948 - 948
Negative goodwill (2,029) 2,029 -
(1,081) 2,029 948
Tangible assets 3,152 (912) 2,240
2,071 1,117 3,188
Current assets
Land & buildings held for resale 6,463 (6,463) -
Stock 2,455 - 2,455
Debtors
amounts falling due within one year 6,924 250 7,174
amounts falling due after one year - 500 500
Cash at bank - 3,026 3,026
15,842 (2,687) 13,155
Creditors
Amounts falling due within one year (10,531) 3,409 (7,122)
Net current assets 5,311 722 6,033
Total assets less current liabilities 7,382 1,839 9,221
Creditors
Amounts falling due after more than one year (3,436) 2,711 (725)
Provisions for liabilities and charges - - -
Net assets excluding pension liabilities 3,946 4,550 8,496
Pension liabilities
Total of defined benefit schemes with net liabilities (591) - (591)
Net assets including pension liabilities 3,355 4,550 7,905
Capital and reserves
Called up share capital 258 - 258
Share premium account 2,092 - 2,092
Merger reserve 501 - 501
Profit and loss account 504 4,550 5,054
3,355 4,550 7,905
The above consolidated pro forma balance sheet has been prepared on the basis
that the resolutions approved at Extraordinary General Meetings held on the 20th
and 30 April 2007 occurred on 31 March as follows:
1. The completion of the sale of land and buildings held for resale for
consideration of #7,000,000 and the consequent release of negative goodwill
to reserves.
2. The completion of the sale of the whole of the issued share capital of Widney
Pressings Limited for #1,400,000 and the assumption of its debt by the
purchaser.
3. The sale of surplus plant at Northampton for #191,500 received in cash and
#750,000 receivable in equal instalments over three years.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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