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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Airsprung Group | LSE:APG | London | Ordinary Share | GB0000119940 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 30.50 | 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 : 3809O
Airsprung Furniture Group PLC
29 June 2010
AIRSPRUNG GROUP PLC
Preliminary Results for the year ended 31 March 2010
Financial and operational highlights
Airsprung Group PLC is a leading UK manufacturer of beds, mattresses and sofa
beds, under the Airsprung, Gainsborough, Hush and Hush-a-Bye brands. In
addition, the Group operates the Cavendish Upholstery, Airofreem foam component
and Arena graphic design businesses. The Group supplies catalogue and internet
retailers, multiple and independent retailers, and contract customers.
- Group sales GBP46.5 million, up 9% on prior year
- Profit before tax GBP978k, favourable swing of GBP1.4 million
- Dividend of 0.6p recommended, 20% up on prior year
- Cost reductions and operational efficiencies achieved
- Sales up 50% at Cavendish Upholstery
- Cash balance GBP2.4 million at year end
Stuart Lyons, Chairman, said:
"Airsprung Group is well positioned in the marketplace but vigorous steps will
continue to be necessary to secure a satisfactory platform for future progress.
Our management teams are continuing to look for operational and buying
efficiencies, and to develop strategic and market opportunities."
For further information please contact:
Airsprung
Tony Lisanti, Chief Executive 01225 779114
Tean Dallaway, Finance Director 01225 779145
finnCap
Marc Young (Corporate Finance) 0207 600 1658
Simon Starr (Corporate Broking) 0207 600 1658
AIRSPRUNG GROUP PLC
Preliminary Results for the year ended 31 March 2010
Chairman's Statement
Results and dividend
Airsprung Group sales for the year rose to GBP46.5 million, a 9% increase on the
prior year. Profit on ordinary activities before tax was GBP978,000, a strong
recovery after last year's loss of GBP417,000 and representing a favourable
swing of GBP1.4 million. The cash position remained positive with a balance of
GBP2.4 million at the year end.
The directors are pleased to recommend an increased dividend of 0.6p (0.5p) per
ordinary share, which will be payable on 13 October 2010 to shareholders on the
register at 24 September 2010.
Unfavourable movements in AA rated corporate bond yields resulted in an
increased pension deficit of GBP3.7 million at the year end. The directors
recognise that such changes are an inevitable consequence of volatile financial
markets.
Sector performance
The board considers that the Group operates in two business sectors, beds and
other activities, and this year's accounts show the performance of each sector.
Beds
In the beds sector, the Group operates in several product markets. Airsprung
Beds mainly supplies major catalogue, multiple and internet retailers with
price-competitive ranges of beds and mattresses. Gainsborough has developed a
significant sofa bed business in the department store and independent retailer
markets, in addition to its range of deluxe pocket-sprung beds. Hush and the
recent Hush-a-Bye acquisition are building a position in the mid-price range,
mainly with independent and family-owned businesses.
In the year under review, the Group's bed businesses, all based on freehold
sites in Trowbridge, Wiltshire, generated revenues of GBP38.0 million and
profits before tax of GBP1.5 million. Airsprung Beds was the major driver of
this improvement. Sales at Airsprung Beds were little changed from the previous
year in a challenging marketplace, but it achieved significant reductions in
direct and indirect costs, while maintaining its cost ratios on raw materials.
The Gainsborough and Hush businesses achieved increased sales in a difficult
market, but at lower gross margins.
Other activities
The Group has three business activities outside the bed sector. These are
Cavendish Upholstery, Airofreem and Arena.
Cavendish Upholstery manufactures and distributes upholstered furniture from a
freehold site in Chorley in Lancashire. Cavendish has had a difficult three
years, as several of its traditional customers have ceased trading, and the
business has therefore lacked critical mass. Consequently, the management made
a decision to change the business model in two respects. First, it decided to
supply a major multiple retail group and, second, it entered into two low-cost
partnerships to increase its breadth of offering for its traditional customers.
The result has been substantial sales growth, with increased revenues of well
over 50%, and a 70% reduction in losses over the previous year.
Airofreem supplies internal and external customers with cut foam components.
Despite rising costs for petrochemically derived materials, it increased its net
margins during the year as a result of greater operational efficiencies.
The Group's graphic design business Arena also serves external as well as
internal customers. Arena had a good year and is developing increasing strength
in web design. I would like to congratulate its staff on being the 2009 awards
winner in Interiors Monthly for the Best Furniture Website, a project carried
out for Airsprung Beds.
Sales for these three businesses, which are recorded under Other activities,
rose to GBP8.4 million, yielding profits before tax of GBP0.4 million.
Central charges
Certain Airsprung Group costs, including holding company and pension charges,
are not debited to the Group's trading businesses, but are accounted for
centrally. In the year under review, the net central charges were GBP0.9
million.
Appreciation
I wish to thank the employees and management of all the Group's businesses for
their continued efforts and loyalty, which have contributed to these results,
and not least our CEO Tony Lisanti and our finance director Tean Dallaway. I am
also grateful to my non-executive colleagues John Newman and Stephen Yates for
their constructive advice and support in our board and committee meetings.
Strategy
The directors believe that the future for companies such as the Airsprung Group
will be enhanced if they develop critical mass with the potential for increased
efficiencies and market penetration. Expansion can be achieved either by
acquisition or partnership arrangements, witness the smaller initiatives made by
Cavendish last year, or by licensing programmes, as in the USA, or by merger.
During the year, the Group has held exploratory discussions with various parties
with such development in mind. We hope to be able to report further progress on
these fronts during the second half year.
Outlook
During the early part of calendar year 2010, many of our customers experienced a
slowdown in trading activity. Sales in the normally buoyant January period were
adversely affected by extensive snow throughout the UK. Many retailers were
left with high end-of-season stocks and were unable to re-order at the normal
levels for Spring business. Economic uncertainty prior to the general election
campaign further dampened consumer enthusiasm.
The result of these factors has been that trading in the first quarter of the
Group's current financial year commencing 1 April 2010 has been weaker than
expected. Revenues for the first two months are down on last year and it is
likely that profits for the first six months will fall modestly below the level
of 2009. With regard to the second half year, the new Chancellor's budget
statement has now been delivered, but its impacts on consumer spending are not
yet clear. Although VAT is set to rise, it will remain at 17.5% for the first
three-quarters of the current financial year, giving retailers and suppliers
time to adjust and plan. Nevertheless, the directors recognise that economic
conditions may be challenging for some time.
The board believes the Airsprung Group is well positioned in the marketplace but
that vigorous steps will continue to be necessary to secure a satisfactory
platform for future progress. Our management teams are continuing to look for
operational and buying efficiencies, and to develop the strategic and market
opportunities for the Group and its products. We are encouraged that, despite
the difficult environment, we are continuing to secure new tranches of business
and that our expansion plans generally are taking good shape.
Stuart Lyons CBE
Chairman
29 June 2010
Consolidated income statement
for the year ended 31 March 2010
+---------------------------------------------+----------+----------+
| | 12 | 12 |
| | months | months |
| | to | to |
| | 31.3.10 | 31.3.09 |
| | GBP000 | GBP000 |
+---------------------------------------------+----------+----------+
| Revenue | 46,532 | 42,812 |
+---------------------------------------------+----------+----------+
| Cost of sales | (33,129) | (32,372) |
+---------------------------------------------+----------+----------+
| Gross profit | 13,403 | 10,440 |
+---------------------------------------------+----------+----------+
| Operating costs | (12,329) | (10,968) |
+---------------------------------------------+----------+----------+
| Operating profit/(loss) before financing | 1,074 | (528) |
+---------------------------------------------+----------+----------+
| Finance income | - | 188 |
+---------------------------------------------+----------+----------+
| Finance costs | (96) | (77) |
+---------------------------------------------+----------+----------+
| Profit/(loss) before tax | 978 | (417) |
+---------------------------------------------+----------+----------+
| Income tax | (218) | (90) |
+---------------------------------------------+----------+----------+
| Profit/(loss) attributable to equity | 760 | (507) |
| holders of the parent | | |
+---------------------------------------------+----------+----------+
| Basic earnings per share | 3.2p | (2.1p) |
+---------------------------------------------+----------+----------+
| Diluted earnings per share | 3.0p | (2.1p) |
+---------------------------------------------+----------+----------+
All the above figures relate to continuing operations.
Consolidated statement of comprehensive income
for the year ended 31 March 2010
+---------------------------------------------+-----------+-----------+
| | 2009/2010 | 2008/2009 |
| | GBP000 | GBP000 |
+---------------------------------------------+-----------+-----------+
| Profit/(loss) for the period | 760 | (507) |
+---------------------------------------------+-----------+-----------+
| Other comprehensive income: | | |
+---------------------------------------------+-----------+-----------+
| Actuarial (loss)/gain on defined | (1,946) | 362 |
| benefit pension scheme | | |
+---------------------------------------------+-----------+-----------+
| Total comprehensive expense for the period | (1,186) | (145) |
| attributable to equity shareholders | | |
+---------------------------------------------+-----------+-----------+
All the above figures relate to continuing operations
Consolidated balance sheet
at 31 March 2010
+---------------------------------------+----------+----------+----------+
| | 31.03.10 | 31.03.09 | 01.04.08 |
| | GBP000 | GBP000 | GBP000 |
+---------------------------------------+----------+----------+----------+
| Intangible assets | 236 | - | - |
+---------------------------------------+----------+----------+----------+
| Property, plant and equipment | 7,856 | 8,232 | 8,754 |
+---------------------------------------+----------+----------+----------+
| Deferred tax | 295 | 488 | 578 |
+---------------------------------------+----------+----------+----------+
| Total non-current assets | 8,387 | 8,720 | 9,332 |
+---------------------------------------+----------+----------+----------+
| Inventories | 3,293 | 3,157 | 4,349 |
+---------------------------------------+----------+----------+----------+
| Trade and other receivables | 7,776 | 6,736 | 7,723 |
+---------------------------------------+----------+----------+----------+
| Cash and cash equivalents | 2,405 | 1,469 | 1,672 |
+---------------------------------------+----------+----------+----------+
| Total current assets | 13,474 | 11,362 | 13,744 |
+---------------------------------------+----------+----------+----------+
| Total assets | 21,861 | 20,082 | 23,076 |
+---------------------------------------+----------+----------+----------+
| Called up share capital | 2,389 | 2,389 | 2,389 |
+---------------------------------------+----------+----------+----------+
| Share premium account | 2,348 | 2,348 | 2,348 |
+---------------------------------------+----------+----------+----------+
| Reserves | 3,065 | 3,065 | 2,399 |
+---------------------------------------+----------+----------+----------+
| Retained earnings | 2,195 | 3,501 | 4,301 |
+---------------------------------------+----------+----------+----------+
| Total equity | 9,997 | 11,303 | 11,437 |
+---------------------------------------+----------+----------+----------+
| Financial liabilities | 153 | 435 | 145 |
+---------------------------------------+----------+----------+----------+
| Pension scheme deficit | 3,683 | 2,027 | 2,927 |
+---------------------------------------+----------+----------+----------+
| Total non-current liabilities | 3,836 | 2,462 | 3,072 |
+---------------------------------------+----------+----------+----------+
| Trade and other payables | 7,764 | 6,042 | 7,870 |
+---------------------------------------+----------+----------+----------+
| Financial liabilities | 264 | 275 | 42 |
+---------------------------------------+----------+----------+----------+
| Shares classed as financial | - | - | 655 |
| liabilities | | | |
+---------------------------------------+----------+----------+----------+
| Total current liabilities | 8,028 | 6,317 | 8,567 |
+---------------------------------------+----------+----------+----------+
| Total liabilities | 11,864 | 8,779 | 11,639 |
+---------------------------------------+----------+----------+----------+
| Total equity and liabilities | 21,861 | 20,082 | 23,076 |
+---------------------------------------+----------+----------+----------+
Consolidated cash flow statement
for the year ended 31 March 2010
+-----------------------------------------------+-----------+-----------+
| | 2009/2010 | 2008/2009 |
| | GBP000 | GBP000 |
+-----------------------------------------------+-----------+-----------+
| Profit/(loss) before tax | 978 | (417) |
+-----------------------------------------------+-----------+-----------+
| Adjustments for: | | |
+-----------------------------------------------+-----------+-----------+
| Depreciation | 583 | 634 |
+-----------------------------------------------+-----------+-----------+
| Amortisation | 34 | - |
+-----------------------------------------------+-----------+-----------+
| Interest expense/(income) | 96 | (111) |
+-----------------------------------------------+-----------+-----------+
| Contributions to defined benefit pension | (366) | (350) |
| scheme | | |
+-----------------------------------------------+-----------+-----------+
| Charge for share based payments | - | 11 |
+-----------------------------------------------+-----------+-----------+
| Profit on sale of property, plant and | (23) | - |
| equipment | | |
+-----------------------------------------------+-----------+-----------+
| Operating cash flows before movements in | 1,302 | (233) |
| working capital | | |
+-----------------------------------------------+-----------+-----------+
| (Increase)/decrease in inventories | (136) | 1,192 |
+-----------------------------------------------+-----------+-----------+
| (Increase)/decrease in receivables | (1,040) | 987 |
+-----------------------------------------------+-----------+-----------+
| Increase/(decrease) in payables | 1,510 | (1,813) |
+-----------------------------------------------+-----------+-----------+
| Cash generated from operations | 1,636 | 133 |
+-----------------------------------------------+-----------+-----------+
| Non-equity dividends and appropriations paid | - | (56) |
+-----------------------------------------------+-----------+-----------+
| Interest paid | (20) | (36) |
+-----------------------------------------------+-----------+-----------+
| Net cash from operating activities | 1,616 | 41 |
+-----------------------------------------------+-----------+-----------+
| Investing activities | | |
+-----------------------------------------------+-----------+-----------+
| Acquisition | (113) | - |
+-----------------------------------------------+-----------+-----------+
| Proceeds on disposal of property, plant and | 46 | - |
| equipment | | |
+-----------------------------------------------+-----------+-----------+
| Purchase of property, plant and equipment | (200) | (112) |
+-----------------------------------------------+-----------+-----------+
| Net cash outflow from investing activities | (267) | (112) |
+-----------------------------------------------+-----------+-----------+
| Financing activities | | |
+-----------------------------------------------+-----------+-----------+
| Dividends paid | (120) | - |
+-----------------------------------------------+-----------+-----------+
| Increase in borrowing | - | 674 |
+-----------------------------------------------+-----------+-----------+
| Redemption of Preference shares | - | (655) |
+-----------------------------------------------+-----------+-----------+
| Repayment of loan | (244) | (112) |
+-----------------------------------------------+-----------+-----------+
| Payment of finance lease liabilities | (49) | (39) |
+-----------------------------------------------+-----------+-----------+
| Net cash outflow from financing activities | (413) | (132) |
+-----------------------------------------------+-----------+-----------+
| Net increase/(decrease) in cash and cash | 936 | (203) |
| equivalents | | |
+-----------------------------------------------+-----------+-----------+
| Cash and cash equivalents at beginning of | 1,469 | 1,672 |
| period | | |
+-----------------------------------------------+-----------+-----------+
| Cash and cash equivalents at end of period | 2,405 | 1,469 |
+-----------------------------------------------+-----------+-----------+
Consolidated statement of changes in equity
for the year ended 31 March 2010
+---------------+---------+---------+---------------------------+------------+----------+---------+
| | Share | Share | Shares to be issued | Capital | Retained | Total |
| | capital | premium | GBP000 | redemption | earnings | equity |
| | GBP000 | GBP000 | | reserve | GBP000 | GBP000 |
| | | | | GBP000 | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Balance 1 | 2,389 | 2,348 | 54 | 2,345 | 4,301 | 11,437 |
| April 2008 | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Redemption | - | | - | 655 | (655) | - |
| of | | | | | | |
| preference | | | | | | |
| shares | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Employee | - | - | 11 | - | - | 11 |
| benefits | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Transactions | - | - | 11 | 655 | (655) | 11 |
| with owners | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Loss for | - | - | - | - | (507) | (507) |
| the period | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Other | | | | | | |
| comprehensive | | | | | | |
| income | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Actuarial | - | - | - | - | 362 | 362 |
| gain on | | | | | | |
| defined | | | | | | |
| benefit | | | | | | |
| pension | | | | | | |
| scheme | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Total | - | - | - | - | (145) | (145) |
| comprehensive | | | | | | |
| income for | | | | | | |
| the period | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Balance 31 | 2,389 | 2,348 | 65 | 3,000 | 3,501 | 11,303 |
| March 2009 | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Balance 1 | 2,389 | 2,348 | 65 | 3,000 | 3,501 | 11,303 |
| April 2009 | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Dividends | - | - | - | - | (120) | (120) |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Employee | - | - | - | - | - | - |
| benefits | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Transactions | - | - | - | - | (120) | (120) |
| with owners | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Profit for | - | - | - | - | 760 | 760 |
| the period | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Other | | | | | | |
| comprehensive | | | | | | |
| income | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Actuarial | - | - | - | - | (1,946) | (1,946) |
| loss on | | | | | | |
| defined | | | | | | |
| benefit | | | | | | |
| pension | | | | | | |
| scheme | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Total | - | - | - | - | (1,186) | (1,186) |
| comprehensive | | | | | | |
| income for | | | | | | |
| the period | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
| Balance 31 | 2,389 | 2,348 | 65 | 3,000 | 2,195 | 9,997 |
| March 2010 | | | | | | |
+---------------+---------+---------+---------------------------+------------+----------+---------+
Notes for the year ended 31 March 2010
1 This summary of results does not constitute the statutory financial
statements for the year ended 31 March 2010. The financial statements have not
yet been delivered to the Registrar of Companies, nor have the auditors yet
reported on them. The statutory accounts for the year ended 31 March 2010 will
be finalised on the basis of the financial information presented by the
directors in this preliminary announcement and will be delivered to the
Registrar of Companies. The financial information for the year ended 31 March
2009 has been extracted from the full report and statements which were prepared
under International Financial Reporting Standards (IFRS) as adopted by the
European Union. Those accounts were filed with the Registrar of Companies. The
auditors reported on those accounts; their report was unqualified and did not
contain a statement under s.237 (2) or (3) Companies Act 1985.
2 Total continuing turnover includes turnover generated in the United
Kingdom of GBP46.0 million (2009: GBP42.6 million) and export sales of GBP0.5
million (2009: GBP0.2 million).
3 The profit per ordinary share has been calculated on 23,889,000 ordinary
shares (2009: 23,889,000) being the weighted average number of shares in issue
during the period.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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