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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Ladenburg Thalmann Financial Services Inc | AMEX:LTS | AMEX | Common Stock |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 3.49 | 0 | 01:00:00 |
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RNS Number:5325I
Litho Supplies PLC
11 March 2003
LITHO SUPPLIES Plc
Results for the year ended 31 December 2002
Litho Supplies Plc, the leading supplier of consumables, analogue and digital
equipment and related services to the printing, graphic arts and corporate
markets in the UK, announces its results for the year ended 31 December 2002.
Highlights:
* Cash at bank at 31 December 2002 of #204,000 compared to net bank debt of
#5.58m the previous year.
* Pre-tax profit before exceptionals #1.80m (#2.04m) reflecting difficult
trading conditions.
* UK market leaders in the distribution of digital printing equipment,
consumable products and related services.
* Reorganised business well placed to deal with the challenges ahead.
Chief Executive Mike Hammond commented on the results: "Following our recent
restructuring and consolidation period, we are happy with the progress the Group
is making. Although sales were down compared to the same period last year, this
reflected the disposal of CK Chemicals, the closure of our European subsidiaries
and price deflation within the market. Growth areas included pressroom and
digital printing equipment and consumable products. Furthermore, we were
extremely pleased to be acknowledged as market leaders in digital printing by
Xerox, when it gave us its award for "Value Added Reseller" of the year for
2002. Strong cash flow during the year has resulted in cash at bank of #204,000
compared to net bank debt of #5.58m at 31 December 2001."
CHAIRMAN'S STATEMENT
Results for the year ended 31 December 2002
The audited results for the year ended 31 December 2002 show a pretax profit of
#1.80m (#2.04m) before #1.40m (#1.47m) of exceptional charges incurred in the
reorganisation of the business during the year. Included in the exceptional
charges are goodwill write-offs on the closure of AM Graphidec NV: #590,000 and
the disposal of CK Chemicals: #706,000. These write-offs have had no cashflow
impact on the 2002 results. A detailed breakdown of the exceptional charges
is shown in the attached note 2. The profit before tax after the charge for
exceptional expenditure is #0.40m (#0.57m). Sales for the year were #53.79m
(#70.69m), reflecting the disposal, closure of the European subsidiaries and
price deflation in the market.
Basic earnings per share before exceptional items are 6.24p (6.85p) and after
exceptional items are 0.03p (1.35p).
Trading continues to be extremely difficult: operating margins have only been
maintained by strict control of the cost base but this has had a positive effect
on cash flow which has been very strong during the year. This is despite
continued exceptional charges offset to some extent by the proceeds of the sale
of surplus land at Herne Bay, Kent. At 31 December 2002 the Group had a cash
balance of #0.20m compared with an overdraft of #5.58m at 31 December 2001.
This has been achieved by greater focus on the core business, reducing stock and
debtor levels still further but without sacrificing service levels to customers.
The closure of more branches has also helped by reducing stock and debtor
requirements.
The above process is continuing into the present year. However, the Board is
conscious of the difficult trading conditions and against this background is
recommending an unchanged final dividend of 1.5p (1.5p) per share, which will be
paid on 30 May 2003, ex dividend date 23 April 2003, which makes a total
dividend for the year of 3.0p per share compared to 3.5p for the previous year.
Consumables
The value of UK consumable sales, which represent the core of the business, is
#41.67m (#47.96m). The reasons for the lower figures are exactly as I reported
twelve months ago. The implementation of printing technologies with newer
equipment needing less consumables, continues to have an impact on sales. Aware
of this change, we have concentrated our sales efforts in the growth areas
available to us such as pressroom products where there has been an overall
increase, particularly in the sales of ink. Notwithstanding the speed of
change, the concentration upon sales of new technology equipment has enabled us
to maintain a strong customer base and to maintain our market share.
Nevertheless, I am again encouraged that our margins have been maintained and it
is comforting to see a reduction in the amount of bad debts in the year, when
our customers are going through such difficult times.
Electronic Equipment
Sales of UK electronic products were #9.12m (#9.53m) for the year, representing
a satisfactory performance given the climate of considerable uncertainty for
capital investment and the price deflation of most products. As highlighted in
my interim statement, we had a successful IPEX show in Birmingham in May with in
excess of #4m worth of orders.
Computer-to-plate sales remain buoyant, as our customers change from analogue to
digital technology and the sales of digital proofing and wide format inkjet
products continue to grow.
We were acknowledged as market leaders in digital printing by Xerox, when it
gave us its award for "Value Added Reseller" of the year for 2002. All these
products continue to provide opportunities for sales of consumables, albeit on
lower volumes.
We have introduced a catalogue of small electronic items, such as workstations,
printers and scanners, which is issued quarterly to our customer base and
published on our web site www.litho.co.uk. Many of our customers are now
taking advantage of the special offers and products available exclusively from
this source.
We remain the first choice for our customers for their electronic equipment
investment and we have continued to make good progress in developing revenue
streams from our support services, including engineering and technical service,
adding value to both our customers and our business and making a meaningful
contribution to profits.
Europe
As I reported at the half-year, our remaining subsidiary company in Europe, the
operation in Belgium, was closed during the year with Litho Supplies now
concentrating on its core UK market.
Reorganisation
In my Interim Report, I commented on the significant progress that had been made
in our two hub sites at Greenford in Middlesex and at Dewsbury near Leeds in
Yorkshire and we continue to develop further opportunities from these two sites.
The transfer of our water based chemical business to Varn Products Company
Limited and the sale of our solvent-based chemical business CK Chemicals were
successfully completed in the second half.
Our core business now operates from eight strategically situated sites in
Livingston, Gateshead, Dewsbury, Birmingham, Derby, Norwich, Greenford and
Bristol with the Electronics division operating from Bromsgrove.
During the last year, we have further developed our in-house computer systems
and the Board continues to seek other business efficiencies.
Part of our earlier reorganisation involved the transfer of our ink
manufacturing back to a major supplier leaving the Group free to dispose of the
land at Herne Bay in Kent. The sale was completed on 19 December 2002 and the
land was sold for #535,000, generating an exceptional profit of #251,000.
Board Change
I was very sorry that Michael Painter, one of our longer serving Non-Executive
Directors, had to retire for health reasons. Michael has been a very loyal and
supportive colleague and has made a significant contribution to the Group and to
me personally since I became Chairman in 2001. I thank him for all his help and
hard work and wish him well for the future.
In his place, I am pleased to welcome Christopher Powles, a Chartered
Accountant, whose experience in banking, corporate finance and the development
of smaller companies, will be invaluable to the Board.
Pension Commitments
Throughout the year, the Company has continued to pay, in addition to the normal
pension contributions, a special contribution of #25,000 per month. This
special contribution of #300,000 for the year is included as an expense in the
Company's profit and loss account and had an impact on the profit for the year.
Your Board continues closely to monitor the pension scheme liability and is
addressing the issues widely highlighted in the national press.
Current Trading
The printing industry continues to suffer from a worldwide recession in
advertising (as evidenced by the recent reports from two of the largest global
advertising services agents). So, notwithstanding the small fall in profits, I
am still pleased with the result. Shareholders should be impressed by the
success of the management team in improving cash generation. This has been one
of the main focuses of the team after the rationalisation of the branch network
and the closure of the unprofitable European operations. We can now face the
future with a leaner organisation focused on the UK market that we know and
understand well.
Our main emphasis is to consolidate and then to grow sales and, in this
connection, after a slow start in January 2003, sales in February were
encouraging. It is pleasing to report that our new telesales department, which
has been developed to support our sales representatives, has been successful in
developing new business. Murodigital, our division selling digital output
devices and binding systems to the corporate and education markets, is also
making good progress.
We have taken part in Flexo 2003, the European packaging exhibition at the NEC
at the beginning of March and will have a large presence at the major Northprint
printing exhibition in Harrogate, in May 2003. Both events give us the
opportunity to demonstrate the latest developments in technology to the market
and we expect more investment to be made by our customers following these
exhibitions.
I am also aware of the need to consolidate our excellent relationships with
major suppliers and I am heartened by the acknowledgement referred to earlier in
this report from such an important supplier as Xerox. These relationships will
ensure that we remain at the cutting edge of the development of new technology
with our customers, enabling us to profit from follow-on consumable orders in
future years. I thank both our suppliers and customers for their continuing
support and confidence.
Finally, it needs to be said each year that none of this would have been
possible without the support and loyalty of our people who have all worked
extremely hard during the year. I thank them for their efforts and support.
B C Clark
Chairman
11 March 2003
GROUP PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2002
2002 2001
Before
Exceptional Exceptional
Costs Costs Total
#'000 #'000 #'000 #'000
TURNOVER
Continuing operations 51,476 - 51,476 59,700
Discontinued operations 2,317 - 2,317 10,985
TOTAL TURNOVER 53,793 - 53,793 70,685
Cost of sales
Continuing operations 42,595 17 42,612 49,251
Discontinued operations 1,882 - 1,882 9,617
44,477 17 44,494 58,868
GROSS PROFIT 9,316 (17) 9,299 11,817
Distribution costs
Continuing operations 2,508 87 2,595 3,020
Discontinued operations 95 - 95 471
2,603 87 2,690 3,491
Administrative expenses
Continuing operations 4,439 134 4,573 5,781
Discontinued operations 275 - 275 1,603
4,714 134 4,848 7,384
OPERATING PROFIT
Continuing operations 1,934 (238) 1,696 1,648
Discontinued operations 65 - 65 (706)
TOTAL OPERATING PROFIT 1,999 (238) 1,761 942
Sale of fixed assets - 251 251 -
Sale of business - (711) (711) -
Closure of business - (702) (702) 56
PROFIT BEFORE INTEREST & TAX 1,999 (1,400) 599 998
Interest receivable 3 - 3 6
Interest payable & similar charges (207) - (207) (435)
(204) - (204) (429)
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 1,795 (1,400) 395 569
Tax on profit on ordinary activities 411 (48) 363 569
PROFIT ON ORDINARY ACTIVITIES
AFTER TAXATION 1,384 (1,352) 32 -
Equity minority interests (25) - (25) 295
PROFIT ATTRIBUTABLE TO MEMBERS
OF THE PARENT COMPANY 1,359 (1,352) 7 295
Dividends on equity shares 654 - 654 762
RETAINED (LOSS)/PROFIT
FOR THE YEAR 705 (1,352) (647) (467)
EARNINGS PER SHARE - basic 6.24p 0.03p 1.35p
- diluted 6.24p 0.03p 1.35p
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 31 December 2002
2002 2001
#'000 #'000
Profit attributable to members of the parent company 7 295
Exchange difference on retranslation of net assets of
subsidiary undertakings (1) 25
TOTAL RECOGNISED GAINS AND LOSSES
RELATING TO THE YEAR 6 320
RECONCILIATION OF SHAREHOLDERS' FUNDS
for the year ended 31 December 2002
2002 2001
#'000 #'000
Total recognised gains and losses 6 320
Dividends (654) (762)
Goodwill reinstated on sale of subsidiary 762 -
Total movement during the year 114 (442)
Shareholders' funds at 1 January 12,644 13,086
Shareholders' funds at 31 December 12,758 12,644
GROUP BALANCE SHEET
at 31 December 2002
2002 2001
#'000 #'000
FIXED ASSETS
Intangible assets 600 1,261
Tangible assets 603 1,273
1,203 2,534
CURRENT ASSETS
Stocks 7,788 9,596
Debtors 14,617 19,947
Cash at bank and in hand 204 373
22,609 29,916
CREDITORS: amounts falling
due within one year 11,054 19,831
NET CURRENT ASSETS 11,555 10,085
TOTAL ASSETS LESS CURRENT
LIABILITIES 12,758 12,619
Equity minority interests - 25
NET ASSETS 12,758 12,644
CAPITAL AND RESERVES
Called up share capital 2,179 2,179
Share premium account 13,420 13,420
Capital redemption reserve 461 461
Profit and loss account (3,302) (3,416)
EQUITY SHAREHOLDERS' FUNDS 12,758 12,644
GROUP STATEMENT OF CASH FLOWS
for the year ended 31 December 2002
2002 2001
#'000 #'000
NET CASH INFLOW FROM OPERATING
ACTIVITIES 5,728 1,335
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest received 3 6
Interest paid (218) (431)
NET CASH OUTFLOW FROM RETURNS ON
INVESTMENTS AND SERVICING OF FINANCE (215) (425)
TAXATION
Corporation tax paid (604) (955)
CAPITAL EXPENDITURE
Payments to acquire tangible fixed assets (92) (480)
Receipts from the sale of
tangible fixed assets 602 43
NET CASH INFLOW/(OUTFLOW) FROM
CAPITAL EXPENDITURE 510 (437)
ACQUISITIONS AND DISPOSALS 1,017 (32)
EQUITY DIVIDENDS PAID (654) (1,693)
INCREASE/(DECREASE) IN CASH
IN THE YEAR 5,782 (2,207)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT)
2002 2001
#'000 #'000
Net debt at 1 January (5,578) (3,371)
Increase/(decrease) in cash 5,782 (2,207)
Net funds/(debt) at 31 December 204 (5,578)
Net funds/(debt) at 31 December is made up as follows:
Cash at bank and in hand 204 373
Bank overdraft - (5,951)
204 (5,578)
RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM
OPERATING ACTIVITIES
2002 2001
#'000 #'000
Reconciliation of operating profit to
net cash inflow from operating activities:
Operating profit 1,761 942
Amortisation of goodwill 71 97
Depreciation 297 425
Decrease in debtors 2,728 1,456
Decrease in stocks 1,194 1,175
Decrease in creditors (230) (2,760)
Exceptional non-operating costs (93) -
Net cash inflow from operating activities 5,728 1,335
NOTES TO THE ACCOUNTS
1. The figures for the year ended 31 December 2002 do not constitute full
accounts within the meaning of S.240 of the Companies Act 1985. The figures for
the year ended 31 December 2002 have been extracted from the full accounts for
that year which have yet to be delivered to the Registrar of Companies and on
which the auditors have issued an unqualified audit report. The figures for the
year ended 31 December 2001 have been extracted from the full accounts for that
year which have been delivered to the Registrar of Companies and on which the
auditors have issued an unqualified audit report.
2. EXCEPTIONAL COSTS
2002 2001
#'000 #'000
Exceptional
reorganisation costs - UK 949 976
- Belgian subsidiary 702 407
- French subsidiary - 85
1,651 1,468
Exceptional profit on sale of land (251) -
1,400 1,468
The UK exceptional reorganisation costs comprise expenditure incurred in
reorganising the business, included within this figure is an amount of #706,000
relating to recycling of goodwill on the disposal of CK Chemicals. The
exceptional reorganisation costs of the Belgian subsidiary comprise the net
closure costs of the business, included within this figure is an amount of
#590,000 relating to the write off of goodwill.
3. CLOSURE OF BUSINESS
AM Graphidec NV: The Board of AM Graphidec NV applied to the Belgian court for
a Moratorium and this was approved on 26 April 2002. During the Moratorium
reorganisation plans were considered. Regrettably, the plans were not viable
and the Board of AM Graphidec NV applied to the Belgian court for the
appointment of a liquidator on 4 September 2002. The results of the subsidiary
have not been consolidated since 26 April 2002 and the Group investment in the
subsidiary is carried at nil value as at 31 December 2002.
4. DIVIDEND
2002 2001
#'000 #'000
Ordinary interim dividend paid
1.50p (2001: 2.00p) per share 327 435
Ordinary final dividend proposed
1.50p (2001: 1.50p) per share 327 327
654 762
5. EARNINGS PER SHARE
The earnings per share have been calculated as follows:
2002 2001
#'000 #'000
Profit available for equity shareholders #7,000 #295,000
Basic and diluted basis:
Weighted average number of Ordinary
shares of 10p each in issue 21,786,148 21,786,148
Earnings per share 0.03p 1.35p
The number of dilutive potential shares as at 31 December 2002 and 2001 is nil.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR URUNROBROAAR
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