We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Gaskell | LSE:GKLL | London | Ordinary Share | GB0004320452 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.00 | - |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
RNS Number:4771P
Gaskell PLC
08 September 2003
GASKELL PLC
8 September 2003
INTERIM ACCOUNTS
CHAIRMAN'S STATEMENT
I described in some detail in my statement accompanying the 2002 Annual Report
the background and effect of the sale of the Gaskell Tile Division and the sale
of the Kidderminster site. These disposals have now been completed according to
plan and I summarise the final result of these sales later in this report.
I also stated that the Group would generate a loss in the early part of 2003,
which indeed is revealed in this Interim Statement. The losses are slightly
higher than expected due to start up costs attributable to our new logistics
operation at Kidderminster and difficult market conditions in Gaskell Carpets'
leisure markets, particularly during the Iraq conflict. However, operating
losses before exceptional items show a welcome reduction on the previous year.
We have made some progress in determining the strategic direction for the Group
and I comment further on this below.
Results
The Group reported a pre-tax profit of #3.12m (2002 - loss of #2.31m) on a
turnover of #17.0m (2002 - #29.7m). The profit arose entirely on the disposals
referred to above. However, operating losses before exceptional items fell from
#2.13m in 2002 to #0.87m in the current period. Operating exceptional charges
of #1.56m (2002 - #Nil) arose on the closure of Tomkinsons operations at the
Kidderminster site and the re-establishment of the Gaskell Wool Rich business in
Rishton. Sales on continuing operations of #13.5m are almost #4m higher than
for the corresponding period in 2002, but this primarily reflects the inclusion
of Gaskell Wool Rich retail turnover previously reported in the discontinued
Tomkinsons operation. On a like for like basis, Group turnover is approximately
2% down, with growth in retail carpet, underlay and export business offset by
weaker sales in the UK contract market. Gross margins improved due to increased
efficiencies at the Rishton site together with the elimination of less
profitable contracts. The fixed overhead base continued to fall with the
elimination of certain central costs, commensurate with a smaller overall Group.
Net interest charges were minimal at #86,000 (2002 - #563,000) due to the
repayment of the Group's entire bank debt in the first quarter. The taxation
charge of #1m (2002 - #Nil) arose, as anticipated, on the income streams
generated from the major disposals in the period. The overall profit after
taxation of #2.12m (2002 - loss of #2.31m) produced earnings per share of 8.6p
(2002 - loss of 9.4p).
Cashflow
The Group produced a positive net cashflow of #7.2m in the period. A total of
#19.4m was generated, net of costs, from the Tile division and Kidderminster
disposals and this was utilised to repay the Group's bank debts in full
(approximately #11m) together with a number of other Government and trade
creditors which had been deferred, by agreement, pending the outcome of the
divestment process. Although there was a net cash outflow from operating
activities in the first half of #4.7m, this arose largely from exceptional items
and an increase in working capital due primarily to the settlement of overdue
debts. However, the continuing businesses are now operating closer to break
even in cash terms.
Dividends
Whilst the Group now has a small cash surplus the underlying trading is not
sufficiently strong to warrant the payment of a dividend at this point in time.
If the Group can return to sustainable profit in its continuing businesses, then
an appropriate dividend policy will be considered at that time.
Restructuring
As indicated in my Chairman's Statement on 25 March 2003, Gaskell agreed to sell
its Tile Division to Low & Bonar PLC on 27 January 2003 for a price of #18m,
with #17m cash received on completion and a further #1m subject to meeting a net
asset target in the completion accounts. I am pleased to report that the
completion accounts have now been agreed and additional deferred consideration
of #780,000 has been agreed with Low & Bonar and this amount was settled in full
on 4 June 2003.
Furthermore, having effected the initial phase of completion of the
Kidderminster property disposal in early March, the additional net consideration
of #0.9m, payable on clearance of the site, was settled on 2 May 2003, giving
total proceeds of #3.1m.
As a result of the above transactions, the Group has been able to repay all its
outstanding bank debt, discharge such liabilities as fell due as a result of
these disposals and return its creditor payment policy to more normal terms.
The Group has had positive cash balances since the end of February 2003 and the
net cash position at 30 June 2003 was in excess of #3m.
Pension Schemes
As indicated in my Chairman's Statement of 25 March 2003, #0.2m of pension
liabilities crystallised as a result of the disposal of the Tile business.
Additional employer contributions are being made into the Group's final salary
pension schemes and employee contributions to the Gaskell scheme have been
increased by 2%. A combination of these increased payments and an improvement
in the equity markets should start to reduce the deficits on these schemes.
Strategy
Your Board has started to make progress in developing the future strategy of the
Group.
The Board has reaffirmed its commitment to the Gaskell Carpets business, based
on its longstanding reputation in the leisure market, the recent
re-establishment of the Gaskell Wool Rich retail brand and its expertise in high
speed Axminster loom technology. These strengths will be reinforced by
innovative sourcing of both new yarns and finished products which will not only
enhance the product range but also reduce significantly the company's cost base.
The appointment of a Creative Director, Darren Clanford, who takes up his
position in November, will also provide a new impetus to the design and
marketing activities, which play a key role in generating new business at
Gaskell Carpets.
Gerry Wheeler, in addition to his duties as Group Chief Executive, has become
increasingly involved in the running of Gaskell Textiles on a day to day basis.
The strategy for this business is centred around a growth in turnover through a
combination of an increased direct sales force, the introduction of several new
products and more focused activity in the distribution sector. The company's
expansion will be built upon its traditional strength in underlays, together
with the development of suitable partners for the supply and distribution of
fibre bonded products.
The final element of the Group's strategy relates to its logistics operations at
both the Kidderminster and Clayton Park sites which are currently subject to a
detailed review, due for completion by the end of the year.
Prospects
Certain markets in which we operate, particularly retail, continue to be
difficult. We believe that the recent announcement by Carpets International
(UK) Limited will have a significant impact on the market going forward.
Nevertheless, we are already gaining market share in some important segments of
our business and with the various sales and cost reduction initiatives outlined
above, I believe we can continue to make progress in the second half of 2003.
Operating profits are likely to be difficult to generate in the short term and
pension fund commitments will continue to be a significant burden on the Group.
However, with the normal final quarter uplift in sales and close management of
working capital, I believe that positive cash balances can be maintained and the
Group can become well positioned as we go into 2004.
A J CHAMBERLAIN
8 September 2003
Consolidated profit & loss account
For the half year ended 30 June 2003
Half year ended 30/06/03 Half year Full year
Before After Ended Ended
Exceptional Exceptional Exceptional 30/06/02 31/12/02
Items Items Items
Note #000 #000 #000 #000 #000
Turnover 2
Continuing operations 13,465 - 13,465 9,484 19,026
Discontinued operations 3,491 - 3,491 20,254 36,610
======= ======= ======= ======== =======
16,956 - 16,956 29,738 55,636
Operating (loss)/profit
Continuing operations 2,3 (1,215) - (1,215) (1,439) (2,305)
Discontinued operations 4 340 (1,561) (1,221) (696) (2,350)
------- ------- ------- ------- -------
(875) (1,561) (2,436) (2,135) (4,655)
Discontinued operations
Profit/(loss) on disposal of 5 - 184 184 - (2,561)
fixed assets
Profit/(loss) on disposal of 5 - 5,458 5,458 391 (755)
businesses
------- ------- ------- ------- -------
- 5,642 5,642 391 (3,316)
Profit/(loss) on ordinary (875) 4,081 3,206 (1,744) (7,971)
activities before interest
Interest payable (86) - (86) (563) (1,013)
------- ------- ------- ------- -------
Profit/(loss) on ordinary (961) 4,081 3,120 (2,307) (8,984)
activities before taxation
Tax on profit/(loss) on 6 - (1,000) (1,000) - 1,015
ordinary activities
------- ------- ------- ------- -------
Profit/(loss) for the period (961) 3,081 2,120 (2,307) (7,969)
Dividends - - - - -
------- ------- ------- ------- -------
Amount (deducted from)/set (961) 3,081 2,120 (2,307) (7,969)
aside to reserves
======= ======= ======= ======== =======
Basic & diluted earnings/ 7 (3.9p) 12.5p 8.6p (9.4p) (32.5p)
(loss) per ordinary share
Dividends per ordinary share - - - - -
======= ======= ======= ======== =======
Statement of total recognised gains and losses for the half year ended 30 June
2003
With the exception of profit/(loss) after taxation there were no recognised
gains and losses in the Group.
Consolidated balance sheet
As at 30 June 2003
30/06/03 30/06/02 31/12/02
Note #000 #000 #000
Fixed assets
Intangible assets - (363) -
Tangible assets 5,211 18,007 13,352
--------- --------- ---------
5,211 17,644 13,352
========= ========= =========
Current assets
Stocks 5,620 14,180 10,941
Debtors 6,116 9,749 9,477
Cash at bank and in hand 3,806 1,049 1,111
--------- --------- ---------
15,542 24,978 21,529
========= ========= =========
Creditors (amounts falling due within one year)
Bank loan and overdraft - 5,936 7,320
Obligations under finance leases and hire 519 732 838
purchase contracts
Other creditors 7,304 13,279 12,810
--------- --------- ---------
7,823 19,947 20,968
--------- --------- ---------
Net current assets 7,719 5,031 561
--------- --------- ---------
Total assets less current liabilities 12,930 22,675 13,913
--------- --------- ---------
Creditors (amounts falling due after more than
one year)
Bank loan - 5,035 3,155
Obligations under finance leases and hire 403 2,065 841
purchase contracts
Loan notes 493 1,011 1,011
Other creditors - - 4
--------- --------- ---------
896 8,111 5,011
--------- --------- ---------
Net assets 12,034 14,564 8,902
========= ========= =========
Capital and reserves
Called up share capital 1,226 1,226 1,226
Share premium account 4,630 4,630 4,630
Revaluation reserve 881 1,546 1,117
Capital redemption reserve fund 175 175 175
Profit and loss account 5,122 6,987 1,754
--------- --------- ---------
Equity shareholders' funds 9 12,034 14,564 8,902
========= ========= =========
Consolidated cash flow statement
For the half year ended 30 June 2003
Half year ended Half year ended Full year ended
30/06/03 30/06/02 31/12/02
Note #000 #000 #000
Net cash (outflow)/inflow from operating 3 (4,747) 475 2,364
activities
Returns on investments and servicing of finance
Interest paid (159) (442) (874)
Interest element of finance leases and hire (19) (54) (129)
purchase rentals
--------- --------- ---------
(178) (496) (1,003)
--------- --------- ---------
Taxation 29 326 198
Capital expenditure
Purchases of tangible fixed assets (excluding (56) (165) (233)
finance lease and hire purchase assets)
Sale of tangible fixed assets and assets held 3,030 111 1,128
for resale
--------- --------- ---------
2,974 (54) 895
--------- --------- ---------
Business disposals
Receipts from sales of trades, net of costs 5 16,367 1,552 1,496
Loan relating to business subject to disposal - - (250)
--------- --------- ---------
16,367 1,552 1,246
--------- --------- ---------
Equity dividends paid - - (172)
Financing
Repayment of capital element of finance leases (799) (726) (1,678)
and hire purchase rentals
New finance leases 42 215 -
Repayment of bank loans (5,930) - (850)
Cost of new medium term loan - - 45
Repayment of loan notes (518) - -
--------- --------- ---------
(7,205) (511) (2,483)
--------- --------- ---------
Increase in cash 8 7,240 1,292 1,045
========= ========= =========
Notes to the financial statements
1. Accounting policies
These interim statements, which have been prepared on the basis of the
accounting policies set out in the Group's 2002 statutory accounts, do not
constitute statutory accounts within the meaning of section 240 of the Companies
Act 1985 and are neither audited nor reviewed. The abridged accounts for the
year ended 31 December 2002 are an extract from the accounts for that period on
which the auditors gave an unqualified report and which have been filed with the
Registrar of Companies.
2. Continuing and discontinued operations
The continuing business represents Gaskell PLC, Gaskell Carpets Limited and
Gaskell Textiles Limited and the associated warehousing and distribution
operations. The discontinued operations comprise businesses sold during the
current period (Bamber Carpets Limited, Gaskell Carpet Tiles Limited and Modulus
Flooring Systems Limited), businesses sold in the previous year (Mid-Wales Yarns
Limited and Crucial Trading) and the manufacturing and selling operations of
Tomkinsons Carpets Limited which ceased during the current period.
3. Reconciliation of operating loss to net cash (outflow)/inflow
from operating activities
Half year ended Half year ended Full year ended
30/06/03 30/06/02 31/12/02
#000 #000 #000
Operating loss (2,436) (2,135) (4,655)
Depreciation/amortisation and loss/(profit) on 468 1,119 1,547
sale of fixed assets
(Increase)/decrease in stock (890) 1,389 4,338
(Increase)/decrease in debtors (1,055) (333) 217
(Decrease)/increase in creditors (834) 435 917
--------- --------- ---------
(4,747) 475 2,364
========= ========= =========
4. Operating exceptional items
Operating exceptional items comprise costs associated with the closure of the
manufacturing and selling operations of Tomkinsons Carpets Limited (2002-#Nil).
5. Non-operating exceptional items
The profit on disposal of fixed assets totalling #184,000 arose from the sale of
the Kidderminster site and related plant and equipment.
The net profit on disposal of businesses of #5,458,000 arose from the sale of
the trade and certain net assets of the Gaskell Tile Division (Bamber Carpets
Limited, Gaskell Carpet Tiles Limited and Modulus Flooring Systems Limited) and
comprised -
#000
Proceeds, net of costs 16,367
Net assets disposed of or written off (9,897)
Related goodwill previously written off against reserves (1,012)
-------
5,458
=======
Non-operating exceptional items in the first half of 2002 related to the profit
on disposal of the Crucial Trading division of Tomkinsons Carpets Limited
(#1.28m) less impairment charges of #891,000 attributable to Mid-Wales Yarns
Limited, sold in August 2002.
6. Taxation on profit/(loss) on ordinary activities
The taxation charge of #1.0m (2002-#Nil) arose from the reversal of the deferred
tax asset on the realisation of the income streams from the major business and
asset disposals during the period. Otherwise, taxation on the profit/(loss) on
ordinary activities is based on the estimated effective rate for the year.
7. Earnings/(loss) per ordinary share
Basic earnings/(loss) per ordinary share is calculated by dividing the profit
attributable to shareholders of #2,120,000 (2002 - loss of #2,307,000) by the
weighted average of 24,522,079 (2002 - 24,522,079) ordinary shares in issue
during the period. The diluted earnings/(loss) per ordinary share is calculated
by dividing the profit attributable to shareholders of #2,120,000 (2002 - loss
of #2,307,000) by the weighted average of 24,571,079 (2002 - 24,522,079)
ordinary shares, being the increased weighted average assuming the exercise of
dilutive employee share options.
8. Reconciliation of net cash/(debt)
Half year ended Half year ended Full year ended
30/06/03 30/06/02 31/12/02
#000 #000 #000
Increase in cash in the period 7,240 1,292 1,045
Decrease in lease financing 799 726 1,678
Repayment of bank loan 5,930 - 850
Repayment of loan notes 518 - -
--------- --------- ---------
Change in net debt resulting from cash flows 14,487 2,018 3,573
New finance leases and hire purchase contracts (42) (229) (63)
Amortisation of bank loan costs - - (45)
--------- --------- ---------
Movement in net debt in the period 14,445 1,789 3,465
Net debt brought forward (12,054) (15,519) (15,519)
--------- --------- ---------
Net cash/(debt) carried forward 2,391 (13,730) (12,054)
========= ========= =========
9. Reconciliation of movement in shareholders' funds
Half year ended Half year ended Full year ended
30/06/03 30/06/02 31/12/02
#000 #000 #000
Profit/(loss) for the financial period 2,120 (2,307) (7,969)
Goodwill previously written off against reserves 1,012 - -
--------- --------- ---------
3,132 (2,307) (7,969)
Opening shareholders' funds 8,902 16,871 16,871
--------- --------- ---------
Closing shareholders' funds 12,034 14,564 8,902
========= ========= =========
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BRGDCIGGGGXU
1 Year Gaskell Chart |
1 Month Gaskell Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
