Eclipse Blinds PLC - Final Results

RNS No 0880b
ECLIPSE BLINDS PLC
26th March 1998

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 1997


HIGHLIGHTS

    Sales up 9% to #45.4m

    Operating profits up 11% to #7.47m

    Profit before tax and exceptionals up 14% to #7.17m

    Headline earnings per share up 18% to 11.4p

    Dividend up 20% to 3.60 pence (net)

Chairman, Hamish Grossart, commented

"We are delighted with the results for 1997, the fourth year
in succession we have been able to report good  growth.  We
expect 1998 to show a continuation of this positive trend and
the first two months trading have lent support to this view."


CHAIRMANS STATEMENT

1997  has proved another good year for Eclipse.  Sales  growth
was achieved in the groups two principal businesses; the last
remaining  non-core  business was sold; an  important  product
source was secured by acquisition; margins and cash flows were
maintained despite currency fluctuations; and new records were
set for turnover, profits, earnings and dividends.

Results

In  the year to 31 December 1997, group sales rose 9 per  cent
to  #45.4m.   Within this, turnover from continuing operations
grew to #43.8m primarily reflecting a full years contribution
from the groups 1996 US acquisition.  Two acquisitions during
1997  contributed a further #1.3m and discontinued  activities
#0.3 million.  On a like for like basis, sales in the main  UK
business grew by just under 2 per cent and in the US by 7  per
cent.

Operating profit, before exceptional items, rose by a  healthy
11  per  cent  to #7.47 million.  Exceptional debits  totalled
#0.90  million of which #0.71 million was attributable to  the
lease and  leaseback  of premises, and #0.19  million  to  the
disposal  of  non  window blind activities.  Interest  charges
fell  30  per  cent to #0.29 million, and the tax  charge  was
reduced from 27 per cent to 25 per cent.

Headline  earnings  per share, struck before  the  exceptional
items, rose by a creditable 18 per cent to 11.43p.

Disposals and acquisitions

The group is now firmly focused on developing its window blind
businesses  in the UK, North America and Northern and  Eastern
Europe.

During   the   year,  Eclipse  disposed  of  British   Plywood
Manufacturing,  the  last  remaining  business  in  the  group
engaged   in   non-window  blind  activities, for a net cash
consideration   of  #0.53  million.   

In  October 1997, Eclipse disposed of an interest in  premises
in  Inchinnan, Scotland, in  a lease and leaseback transaction
which  raised a total of #7.16 million in cash.  This improved
liquidity   and  enhanced  the  groups  ability  to   finance
expansion from internal resources.

Also  in October 1997, the group acquired the business of OPM,
in  Sweden.  Importantly, this brought into the group a secure
source   of  supply  of  aluminium venetian blind slat. 
OPM  manufactures and sells to a well spread customer  base  in
approximately 15 countries in Northern Europe.  Eclipse  plans
to  increase OPMs sales by providing additional product lines
through its distribution outlets.

Financial position

At 31 December 1996 net borrowings totalled #3.0m, and maximum
outstanding deferred consideration a further #3.0m.  The total
of  these, representing underlying net indebtedness of  #6.0m,
equated to balance sheet gearing of 49 per cent.

During 1997, cash flow from operations reached a record  level
of  #8.25m. In addition, the disposal of premises realised #7.16m
and  the disposal of British Plywood Manufacturing brought in
a further #0.53m.  Interest and taxation payments totalled #2.53m,
dividends  absorbed  a further #2.20m and capital  expenditure
totalled  #0.63m. The  acquisition of  OPM  included cash
payments  of #3.77m, and deferred consideration of #1.48m  was
paid in respect of the 1996 US acquisition.

At  the end of 1997 the group had net cash of #1.87m.  Maximum
outstanding  deferred consideration payments totalled  #3.05m.
Together, these represent underlying indebtedness of #1.18m, a
balance sheet gearing ratio of 10 per cent.

Dividends

1997  has  shown good growth in earnings per share, cash  flow
remains strong, gearing is low, dividend cover is healthy  and
prospects  are good.  The board therefore feels it appropriate
that  dividends should grow at least as fast as earnings,  and
accordingly  are recommending a final dividend of  2.40  pence
per share.

When taken together with the interim dividend already paid  of
1.20  pence,  the total dividend in respect of 1997  would  be
3.60 pence per share, a 20 per cent increase over 1996.

If approved, the final dividend will be paid on 31 May 1998 to
shareholders on the register on 14 April 1998.

Focusing on performance

The  Eclipse group has been transformed in the past four years
and  now  boasts operating performance of a very  high  level.
Given the series of disposals and acquisitions that have  been
undertaken  during that period, it is perhaps worth reflecting
on  a selection of underlying performance statistics which may
have  been  lost  in the inevitable noise that has  surrounded
restructuring.   These statistics, which  are  for  continuing
businesses and exclude exceptional credits and debits, give  a
much better description of what Eclipse has become than can be
done prosaically:-

                                  1994    1995   1996    1997
                                    #m      #m     #m      #m

  Sales                          33.30   33.80  40.32   45.07
  Operating profit                4.55    5.07   6.72    7.47
  Operating margin               13.7%   15.0%  16.6%   16.6%
  Headline earnings per share    5.65p   7.62p  9.70p  11.43p
  Dividends per share                -   1.00p  3.00p   3.60p
  Underlying balance sheet 
   gearing                        197%     55%    49%     10%


Over  this  period,  the  compound  average  growth  rate   in
operating profit has been 18 per cent per annum, the  compound
average growth rate in headline earnings per share has been 26
per  cent  per  annum and net indebtedness has  been  all  but
eradicated.   The quality of the groups main businesses,  the
strength in their markets and the exceptionally robust margins
and cash flow all combine to make continuing growth possible.


Setting out a statistical account may give the impression that
a  record  of  growth is easily won.  It is not.  The  growing
group  that  Eclipse  has  become has  been  as  a  result  of
concentrating  on a clear and consistent set of objectives,  a
constant  reappraisal  of performance,  a  commitment  to  the
business  by management and staff, a clear focus on where  the
market   opportunities  lie,  and  product   improvement   and
innovation.  The group is fortunate to have a strong and loyal
staff  and  management  team, under  the  leadership  of  Bill
Macdonald,  and  our thanks are due to all of them  for  their
continuing contribution.

Board of Directors

It  is  with regret that I have had to advise the board of  an
intention  to  stand down as chairman and as a director  as  a
result  of  increasing commitments elsewhere.  It has  been  a
privilege to be involved with my colleagues and the group at a
time  of  fundamental change.  I will, of course, continue  to
fulfil  my  duties until such time as the board  have  decided
upon a successor.

Outlook

We  have  had  a good start to 1998, with sales satisfactorily
ahead  of  the  corresponding period last year, and  operating
performance remaining strong.

At  this  early point in the year, it is difficult  to  see  a
reason why the growth trend of the last four years should  not
be continued.  We have  successfully weathered a sea change in
sterlings relative value and see little danger to Eclipse  in
the  recent further rises in the pound.  Higher interest rates
would  have  an  immaterial effect on profits  given  our  low
gearing,  and all the signs are that spending on our  products
is robust.

The current year will include OPM for a full year, and we 
expect no exceptional items. Strong margins and operating
cash flow will continue and we therefore look forward  to
the remainder of 1998 with confidence.

Hamish Grossart
Chairman

GROUP PROFIT AND LOSS ACCOUNT
For the year ended 31 December 1997 (audited)

                            1997              1996
               Total Continu- Discon-  Total  Continu- Discon-               
                         ing   tinued             ing   tinued  
               #000   #000    #000  #000   #0000    #000
Turnover
 Continuing
  operations  43,813  43,813          40,322   40,322
 Acquisition   1,261   1,261               -        -
             -------  ------          ------   ------
              45,074  45,074          40,322   40,322
Discontinued 
 operations      326       -     326   1,255        -     1,255                
 
             ------- -------   -----  ------   ------     ----- 
              45,400  45,074     326  41,577   40,322     1,255
Cost of
  sales      (28,877)(28,626)   (251)(26,685) (25,755)     (930)
             ------- -------   ----- -------  --------    ------
Gross profit  16,523  16,448      75  14,892   14,567       325
Overheads     (9,057) (9,012)    (45) (8,169)  (7,849)     (320)
Operating
 profit        7,466   7,436      30   6,723    6,718         5

 -continuing
    operations 7,312   7,312       -   6,718    6,718         -
 -acquisitions   124     124       -      -        -          -
 -discontinued
    operations    30       -      30      5        -          5

Operating profit
 before
 exceptional
 items         7,466   7,436      30  6,723     6,718         5
              ------   -----    ----  -----     -----       -----
Exceptional
 loss on
 disposal of
 interest
 in property
 in continuing
 operations     (713)                   -

Exceptional
 loss arising
 on disposal
 of discontinued
 subsidiary    (193)                    -
            --------               --------
Profit on 
 ordinary 
 activities
 before
 interest     6,560                  6,723

Net interest   (294)                  (422)
            ---------              ---------
Profit on
 ordinary
 activities
 before 
 taxation     6,266                  6,301

Tax on profit
 on ordinary
 activities  (1,541)                (1,679)
            ---------              ---------
Profit on 
 ordinary
 activities
 after
 taxation     4,725                  4,622

Equity
 minority 
 interests      (17)                   (42)
            ---------              ---------
Profit for
 the financial
 year
 attributable 
 to
 shareholders 4,708                  4,580

Preference
 dividend      (870)                  (936)
Ordinary
 dividend    (1,542)                (1,210)
            ---------              ---------
Retained 
 profit for
 the year     2,296                  2,434
            ---------              ---------
IIMR heading
 earnings per
 ordinary
 share       11.43p                  9.70p
           =========               ========
Earnings
 per
 ordinary 
 share        9.25p                  9.70p
          =========               =========


BALANCE SHEET
At 31 December 1997
(audited)
                            Group              Company
                       1997      1996      1997        1996
                      #000     #000     #000       #000
Fixed assets
Tangible assets       4,996    12,419        27           -
Investments               -         -    59,124      59,876
                     ------    ------    ------      -------
                      4,996    12,419    59,151      59,876

Current assets
Stocks                9,745     8,261       -           -
Debtors               8,859     7,797    16,308      13,121
Cash at bank
 and in hand          2,766     4,245       375        -
                     ------     -----     -----      ------
                     21,370    20,303    16,683      13,121
Creditors due
 within one year    (12,462)  (17,601)   (4,686)     (7,010)
                    -------    ------    -------     -------
Net current assets    8,908     2,702    11,997       6,111
                    ------     ------    ------      -------
Total assets less
 current
 liabilities         13,904    15,121    71,148      65,987
Creditors due after
 more than one year  (1,941)   (2,195)       -           -
Provisions for
 liabilities & charges (166)     (480)     (140)       (166)
                    --------   -------   -------     -------
                      11,797   12,446    71,008      65,821
                    --------   -------   ------      ------
Capital and reserves
Called up share
 capital              11,477   10,777    11,477      10,777
Share premium account 27,419   24,932    27,419      24,932
Other reserves       (39,071) (34,428)   23,330      23,330
Capital redemption
 reserve                  71       11        71          11
Profit and loss 
 account              11,605   10,868     8,711       6,771
                   ---------   ------    ------      -------
Total shareholders
 funds                11,501   12,160    71,008      65,821
                   ---------   ------    ------      ------

Equity shareholders
 funds                (2,161)  (2,851)   57,346      50,810
Non Equity
 shareholders
 funds                13,662   15,011    13,662      15,011

Equity minority
  interests              296      286        -           -
                    --------   ------    ------      -------
                      11,797   12,446   71,008        65,821
                    --------   ------   -------      -------

Approved by the Board on 26 March 1998 and signed on its
behalf by
Hamish Grossart, Chairman
Ken Brown, Finance Director


GROUP CASH FLOW STATEMENT
For year ended 31 December 1997 (audited)

                                   1997            1996
                           #000        #000   #000      #000
Cash flow from operating 
 activities

Continuing                              8,253              8,132

Return on investments 
 and servicing of finance
Interest received             80                   90
Interest paid               (444)                (522)
Dividends paid on non
 equity capital             (891)      (1,255)   (939)    (1,371)
                         --------                -------
Taxation

Taxation paid             (2,208)                (978)
Taxation recovered            41       (2,167)    249       (729)
                        ---------               --------
Capital Expenditure

Payments to acquire
 tangible fixed assets    (632)                  (997)
Receipts from sales of
 tangible fixed assets
(net of disposal costs)  7,156          6,524     100      (897)
                        ----------              --------
Acquisitions and disposals
Net cash outflow on
 acquisition of 
 subsidiaries           (3,774)                (5,702)
Net cash inflow on
 disposal of subsidiary    534                      -
Deferred consideration  (1,478)        (4,718)      -     (5,702)
                      -----------              ---------
Dividends paid
On equity capital                      (1,308)              (738)
                                     ---------           --------
Net cash outflow before
 financing                              5,329             (1,305)

Financing
Proceeds from placing
 and open offer               -                 5,257
Less: Costs                                      (204)
                                                -------
                                                5,053
Proceeds from exercise
 of share options          10                      48
New loans                   -                     433
Repayment of loans     (2,797)        (2,787)    (177)    5,357
                     ---------                  --------
                                      -------             ------
Increase in cash                       2,542              4,052
                                      -------             ------

Enquiries: Hamish Grossart, Chairman  Tel: [phone]
                                       or 0468 025209
           Bill Macdonald, Managing Director 0141 812 3322
           Ken Brown, Finance Director  0141 812 3322
           Eclipse Blinds PLC
          Zena Bates, Buchanan Communications 0171 466 5000


END

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