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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Straight | LSE:STT | London | Ordinary Share | GB0033695486 | 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% | 77.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMSTT
RNS Number : 9878I
Straight PLC
23 March 2010
23 March 2010
Straight plc
Preliminary Results
for the year ended 31 December 2009
Straight plc (AIM: STT), the recycling products and services group, is pleased
to announce its Preliminary Results for the year ended 31 December 2009.
Key Points
· Revenue increased by 11% to GBP28.3m (2008: GBP25.4m)
o Trade Business revenue up 17% to GBP27.1m (2008: GBP23.2m)
· Headline Operating Profit increased to GBP1.6m (2008: GBP0.4m)
o Headline Trade Business Operating Profit increased by 36% to GBP3.0m (2008:
GBP2.2m)
o Retail Business performance greatly improved with profit expected in 2010
· Strong cash position at year end of GBP1.6m (2008: GBP1.6m)
· Healthy order book
· Final dividend of 0.7p, resulting in full year dividend increasing by
16.67% to 3.5p (2008: 3.0p)
Post Year End Events
· Acquisition of trade and certain assets of Helesi UK for GBP1.65m
Commenting on the results, James Newman, Chairman of Straight plc, said:
"I am delighted to report excellent results for 2009, a year in which the Group
transformed its performance. Straight continues to lead in all of its core
markets and is making good progress in broadening both its product and customer
base."
Jonathan Straight, Chief Executive of Straight plc, added:
"In March 2009, we forecast a successful year. I am pleased to say that the
many difficult decisions taken late in 2008 proved to be the correct ones and we
have a reinvigorated business.
"The outlook for 2010 is positive. We had a record order book at the start of
the year and a strong pace of order intake has continued since January. We are
the leading player in many of our markets and where we do not lead we have the
resources and capability to do so in the future. "
The preliminary announcement was approved by the Board on 23 March 2010.
For further information: please contact:
+----------------------------------------+----------------------+
| Straight plc | |
+----------------------------------------+----------------------+
| James Newman, Chairman | 07850 672 727 |
| Jonathan Straight, Chief Executive | 0113 245 2244 |
+----------------------------------------+----------------------+
| | |
+----------------------------------------+----------------------+
| Panmure Gordon | |
+----------------------------------------+----------------------+
| Andrew Godber | 0207 459 3600 |
+----------------------------------------+----------------------+
| | |
+----------------------------------------+----------------------+
| Redleaf Communications | |
+----------------------------------------+----------------------+
| Paul Dulieu | 0207 566 6700 |
+----------------------------------------+----------------------+
Notes to Editors
· Straight plc is the UK's leading supplier of specialist kerbside recycling
containers as well as a key supplier of a broad range of waste and recycling
container solutions. Founded in 1993 by the current Chief Executive, Jonathan
Straight, the business has since supplied more than 12 million kerbside
recycling boxes to local authorities across the UK, securing its position as the
industry leader.
· In 2005, Straight acquired Blackwall Limited, the UK's largest supplier of
home composters and water butts. Through the Blackwall brand, Straight has
delivered more than 3.5 million compost bins and water butts.
· The business operates through two divisions. The core Trade Business
supplying products in bulk to local authorities, utilities, the waste industry,
retailers and other businesses and the Retail Business supplying a range of
proprietary environmentally friendly consumer products directly to the public,
often in partnership with a local authority or a utility.
· Straight operates a business model with all manufacture outsourced on an
international basis. Most production is local to the end market keeping freight
movements and associated emissions to a minimum.
· In February 2009, Straight added to its portfolio with the acquisition of
Harcostar Garden Products, a long established premium brand consisting of water
butts, compost bins, watering cans and accessories. This has gained new
distribution channels for the business in the UK and in Europe.
· In March 2010, Straight acquired the business and certain assets relating
to the UK manufacturing operations of Helesi plc, providing the Group with a
proprietary wheeled bin range for the first time.
· Straight plc has established diverse overseas sales channels and is now
producing and selling water butts in Australia and North America.
· Further information about the company and its products can be found at:
www.straight.co.uk
Chairman's Statement
I am delighted to report excellent results for 2009, a year in which the Group
has transformed its performance. The Group continues to lead in all of its core
markets and is making good progress in broadening both its product and customer
base. The Group is well positioned to accelerate this strategy through both
organic and acquisitive growth.
Trading performance
Group turnover increased during the year by 11% to GBP28.3m (2008: GBP25.4m).
The balance sheet remained strong with cash balances at the year end of GBP1.6m
(2008: GBP1.6m) despite another year of significant investment in product design
and new tooling.
Trade Business
The Trade Business has strengthened further with revenue increasing by 17% to
GBP27.1m (2008: GBP23.2m). This increase was a result of ongoing success with
new products as well its expansion into new markets enhanced by the
opportunities which came with the acquisition of Harcostar.
The Group has continued to focus on building its non municipal markets and has
made excellent progress both at home and overseas. The Group's strategy to
manufacture locally has now been extended into North America following success
with this model in Australia.
Gross margins in the Trade Business increased from 18.4% to 19.5% reflecting the
Group's strength in its core markets and the new products introduced during the
year.
Retail Business - Direct to Consumer Environmental Products
The Retail Business is well placed to realise its strategic value to the Group
following its appointment as sole supplier on the Eastern Shires Purchasing
Organisation (ESPO) and Central Buying Consortium national composting framework
agreement which was announced on 3 February 2010.
Following restructuring in 2008, the performance of the Retail Business was
transformed during the year. Whilst the strategy of focusing only on
strategically important products and clients reduced revenues in the short term
to GBP1.2m (2008: GBP2.3m), operating losses were substanially reduced to
GBP94,000 (2008: loss GBP0.5m). This improvement was assisted by a significant
fall in home delivery costs, as a result of the creation of an in-house
controlled national carrier network.
As a result of the enhanced market potential and improved efficiencies, a
positive contribution is forecast for 2010.
Overall Result
The continued strong growth in the Trade Business combined with the dramatic
reduction in losses in the Retail Business resulted in underlying operating
profits of GBP1.6m (2008: GBP0.4m). Profit before tax was GBP1.6m compared to a
loss of GBP1.0m in 2008 which suffered the exceptional costs of the 2008
strategic reviews as well as the impairment of the goodwill associated with the
Retail Business.
Earnings per share
Headline earnings per share for the year were 10.1p compared to 4.6p in 2008, an
improvement of 120%. The 2008 figure excludes the impact of one-off costs and
goodwill impairment in that year. Basic earnings were 9.9p (2008 loss: 8.9p).
Dividend
Following a much improved trading performance in the year, the Board is
proposing to increase dividends for the full year by 17% to 3.5p (2008: 3.0p).
An interim dividend of 1.3p (2008: 1.25p) was paid in December 2009. In
addition to this, a one-off second interim dividend of 1.5p was announced on 4
March 2010. The Board is pleased to announce that it is proposing to pay a
final dividend of 0.7p, which will be paid on 4 June 2010 to shareholders on the
register on 7 May 2010, subject to shareholder approval at the Annual General
Meeting.
Business Developments
In January 2009 the Group acquired the business and assets of Harcostar Garden
Products for a total consideration of GBP0.4m in cash. The integration of
Harcostar into the Group is now complete and the consideration has now been
recovered in terms of direct profit contribution.
On 5 March 2010 the Group announced the acquisition of the business and certain
assets relating to the UK manufacturing operations of Helesi plc for GBP1.65m in
cash. The addition of this proprietary wheeled bin range will significantly
strengthen the Group's position in this important market.
The Board is actively progressing additional acquisition opportunities in order
to strengthen and protect its position as market leader in its core market
sectors.
Board
I would like to thank my Board colleagues for their continued hard work and
exceptional level of commitment.
Outlook
The Group began 2010 with a very healthy order book following an unprecedented
level of order intake in the final quarter of 2009. The addition of a
proprietary wheeled bin range will further enhance opportunities in its core
markets.
The Group's strategy of organic growth as well as selective acquisitions will
continue into 2010, supported by a strong trading environment in the UK, new
overseas market opportunities and strong cash generation.
James H Newman
Chairman
23 March 2010
Chief Executive's Review
In March 2009 a successful year was forecast. I am pleased to say that the many
difficult decisions taken late in 2008 proved to be the correct ones and that
they have reinvigorated the business .
The Group has worked to identify its core values. The entire management team is
now focused on developing and promoting the customer focused, innovative,
market-leading and high quality environmental products and services we offer
with honesty and integrity.
Trade Business
Municipal Sales
Municipal sales are a central part of the business and there is no sign of a
slowdown in the development of this market. We continue to be the key supplier
in the UK for kerbside recycling containers in general. Our lead in the
foodwaste container market has been maintained and further built upon. This
market is still relatively new yet is growing rapidly with the increasing
rollout of anaerobic digestion capacity.
Market share in the steel wheeled bin market continued to grow through 2009 and
we are now the second player in the UK. Sufficient critical mass has now been
achieved to support the recently refined supply chain and further growth is
forecast. The addition of new sizes to the range supports this position.
Our standing in the plastic wheeled bin market has been enhanced by the recent
acquisition of moulds for two-wheeled containers from Helesi plc as well as a
distribution agreement covering four-wheeled containers and other products.
Order intake continues to be strong and reached record levels in the fourth
quarter of 2009. Strong orders were received across the entire product portfolio
with a particular focus on food waste containers and the Wheeled Bin Inner
Caddy.
Non-municipal Sales
Sales to our non-municipal customers are repeat in nature and are generally
predictable. A decision was taken in 2009 to further develop these revenue
streams in order to diversify the Group's activities.
A target of GBP10m sales per year by the end of 2011 was set and excellent
progress is being made with sales of GBP6m in 2009. To date the focus has been
in commercial recycling, garden and hardware as well as export sales.
An investment of GBP0.25m into the Ecosort office recycling container range has
resulted in strong sales both in the UK and overseas. Following initial success
in Australia, further developments are being pursued in this market and a
network of international distributors is being recruited. In recent weeks we
have concluded arrangements in Denmark, Italy and Spain.
Overseas sales have continued to grow and represented 4.0% of Group revenues in
2009 (2008: 1.7%). Further significant growth is anticipated in 2010.
New Product Development
Through 2009 the new product development programme has continued with almost
GBP1m invested. This covered new kitchen caddies, the Ecosort office recycling
container range, additional sizes of Steelybin and a smaller water butt for both
the UK market and North American markets.
Acquisition of Helesi UK business and assets
The acquisition of various assets and the business of Helesi UK is a key
milestone in the development of the Group. Whilst we have sold wheeled bins in
significant numbers over the past five years, we have never had a proprietary
product to offer. This has resulted in reduced margins and lost opportunities.
In addition to the tooling purchased we have also taken ownership of injection
moulding machinery which is being hosted by one of our existing moulding
partners. This represents a significant evolution to our business model and will
allow us to increase margins whilst maintaining the current principle of
outsourced manufacture.
As well as manufacturing the most popular sizes of wheeled bin in the UK, we
also have access, on an exclusive basis, to the broader range of bin sizes
manufactured by Helesi in Greece and Italy. This gives us a strong foothold in
the UK market as well as the potential for sales in certain overseas
territories.
Retail Business
The key reason for remaining in the retail market was that we anticipated the
return of local authority home composting business from a market recently
dominated by WRAP, the government agency. WRAP announced its withdrawal from
the English market at the end of September 2009 following which local
authorities began contracting with us to supply these products.
A number of our customers were waiting for a formal national agreement to be
made available. Such a contract was subsequently let by ESPO and we are the sole
provider of home composting products and services on this framework. Currently
more than half of the English district councils have signed up to our retail
programme.
Another development in the retail market is binsdirect.com. This is a website
offering waste and recycling containers for sale feeding off the stock that the
business holds and using the existing order processing and logistics systems.
Sales have been encouraging to date with an average order value more than three
times that of the core Retail Business.
Management and staff
2009 has been a year of significant development and progress for the Group. I
would like to extend my thanks to my Board colleagues and staff for their
support, hard work and enthusiasm.
Outlook
Looking forward, the outlook for 2010 is positive. We had a record order book at
the start of the year and a strong pace of order intake has continued since
January.
We are the leading player in many of our markets and where we do not lead we
have the resources and capability to do so in the future.
Our brand is strong, it has key values which are understood by staff and are
visible to customers and stakeholders.
The business model is evolving and with the Helesi acquisition we now own
moulding machinery as well as tooling. This significant development has
highlighted the many opportunities afforded by being closer to the source of our
products. This principle will be developed both organically and by further
acquisitions going forward.
Jonathan Straight
Chief Executive
23 March 2010
Finance Director's Review
Revenue and Operating Margins
Trade Business
Revenues grew 17% during 2009 to GBP27.1m (2008: GBP23.2m). Sales of
proprietary products grew by GBP1.8m, driven by growth in sales of food waste
containers. Sales of factored products also grew, by GBP2.1m, driven by sales
of wheeled bins which were particularly strong in the first half. Sales of
wheeled bins in the second half were lower than in the first half because of
difficulties the Group experienced in procuring suitable bins to fulfil ongoing
customer demand. The need to overcome this gap in the Group's product range was
recognised by the Board during the year and has now been successfully addressed
through the Helesi acquisition announced on 5 March 2010.
Gross margin in the year was 19.5% (2008: 18.4%). The increase of 1.1% was
achieved in spite of the increased sales of factored products including wheeled
bins which are sold at lower margins than the Group average. The Group is now
confident that following the acquisition of a proprietary wheeled bin range it
will be able to increase the margins on these products.
The operating profit of the Trade Business, excluding non-recurring costs, grew
by GBP0.8m to GBP3.0m.
Retail Business
The Group's decision to focus on strategically important products and clients
resulted in revenues for the year of GBP1.2m (2008: GBP2.3m). In spite of this
reduced turnover, gross profits were increased from 4.4% to 17.4%, assisted by a
reduction in home delivery costs.
Fixed overhead in the Retail Business was reduced by 51% to GBP0.3m. This
reduction was attributable to the reduced number of product lines and the focus
on core clients and activities.
Excluding the non-recurring costs and goodwill impairment recorded in 2008,
underlying losses in the Retail Business were reduced from GBP0.5m to GBP94,000.
The Retail Business is expected to return to profit in 2010.
Central Overheads
Central overheads were stable during the year at GBP1.3m (2008: GBP1.3m).
Operating Cashflow
The Group remained cash generative during the year with GBP1.5m being generated
from operations (2008: GBP2.0m). This was in spite of major changes to the
Group's supplier base in the year which resulted in creditor days falling from
77 to 57 days.
The Group's ability to generate cash enabled it to comfortably fund capital
investment in tooling and equipment totalling GBP1.0m (2008 GBP1.6m).
After payment of GBP0.4m (2008 GBP0.3m) in dividends cash balances were
maintained at GBP1.6m (2008: GBP1.6m).
Earnings
Headline earnings per share for the year were 10.1p compared to 4.6p in 2008, an
improvement of 120%. The 2008 figure excludes the impact of one-off costs and
goodwill impairment in that year. Basic earnings were 9.9p (2008 loss: 8.9p).
Review of key performance indicators
2009 2008 Change
GBP'000 GBP'000 %
Group Revenue
28,320 25,437 +11%
Gross profit
5,498 4,362 +26%
Headline EBITDA
2,066 944 +119%
Headline EBITDA per employee 53
25 +112%
Cash generated from operations 1,481
2,031 -27%
The increase in Group Revenue was attributable to increases in sales across both
proprietary and factored products with the most significant increase being in
the new range of food waste containers.
The increase in gross profit was attributable to strong margins being achieved
in new products including food waste containers in the Trade business. In
addition, the gross margins in the Retail business were increased following the
significant reductions made in carriage costs during the year.
The strategic reviews carried out at the end of 2008 resulted in the headcount
of the Group being reduced from 62 to 38 during the latter part of that year.
During 2009 only modest increases in employee numbers took place. The cost
savings made as a consequence of these reviews, combined with the increases in
absolute gross margins noted above increased underlying operating profits and
produced the very large increase in EBITDA per employee noted.
During the year major changes in the Group's supplier base were responsible for
a reduction in the Group's creditor days from 77 to 57. This in turn was
responsible for a large reduction in creditors in the year. This reduction when
combined with smaller reductions in trade receivables and inventories gave rise
to the net reduction in cash generated from operations noted above.
Management of Financial Risk
The Group has maintained its policy of managing foreign exchange risk by
purchasing currency forward when it is notified that a relevant contract bid has
been successful. In addition it enjoys a degree of natural hedging where both
purchases and sales are made in the same currency. The impact of foreign
currency movements during the year on operating profit was negligible.
The Group's rigorously enforced approach to credit control once again ensured
that no significant bad debts arose.
Forecast short term and longer term cash consumption are regularly reviewed by
the Board which constantly monitors the Group's free cash resources.
James Mellor
Finance Director
23 March 2009
Consolidated Statement of Comprehensive Income
For the year ended 31 December2009
Non- Non-
recurring recurring
Headline costs Total Headline costs Total
2009 2009 2009 2008 2008 2008
Note GBP'000 GBP'000
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 2 28,320- 28,320 25,437
- 25,437
Cost of sales (22,822) -
(22,822) (21,075) - (21,075)
_____ _____ _____ _____ _____ _____
Gross profit 5,498 - 5,498
4,362 - 4,362
Operating costs 4 (3,943) - (3,943)
(3,949) (1,422) (5,371)
_____ _____
_____ _____ _____ _____
Operating profit/(loss)1,555 - 1,555 413
(1,422) (1,009)
Investment income 5
1 37
_____ _____
Profit/(loss)
before taxation 2 1,556
(972)
Income tax expense 6 (417)
(52)
_____ _____
Profit/(loss) for the year attributable
to the equity holders of the Company and
total comprehensive income/(loss) for the year 1,139
(1,024)
__________
Earnings per share (continuing and total)
for profit attributable to the equity holders
of the Company during the year
Adjusted basic 7
10.1p 4.6p
Adjusted diluted 7
10.0p 4.6p
Basic 7
9.9p (8.9p)
Diluted 7
9.9p (8.9p)
All operations are continuing.
Consolidated Summarised Balance Sheet
At 31 December 2009
2009 2008
GBP'000 GBP'000
Assets
Non current assets
Property, plant and equipment
3,433 2,776
Intangible assets
4,770 4,741
Investments
35 35
_____ _____
8,238 7,552
Current assets
Inventories
1,313 1,533
Trade and other receivables
3,102 3,675
Cash and cash equivalents
1,584 1,580
_____ _____
5,999 6,788
_____ _____
Total assets
14,237 14,340
_____ _____
Liabilities
Non current liabilities
Deferred taxation
(178) (120)
_____ _____
Current liabilities
Trade and other payables
(4,001) (5,302)
Income tax payable
(358) -
_____ _____
(4,359) (5,302)
_____ _____
Total liabilities
(4,537) (5,422)
_____ _____
_____ _____
Net assets9,700 8,918
__________
Equity attributable to equity holders of parent
Issued share capital
115 115
Share premium
5,970 5,970
Merger reserve
744 744
Profit and loss account
2,871 2,089
_____ _____
Total equity
9,700 8,918
__________
Consolidated Statement of Changes in Equity
For the year ended 31 December 2009
Share Share Merger Profit Total
Capital Premium Reserve and Loss Equity
Account Account
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2008 115
5,970 744 3,383 10,212
Loss and total comprehensive loss
for the year
- - - (1,024) (1,024)
Arising on grant of share options -
- - 75 75
Dividends
- - - (345) (345)
_____ _____ _____ _____ _____
At 1 January 2009 115
5,970 744 2,089 8,918
Profit and total comprehensive income
for the year
- - - 1,139 1,139
Arising on grant of share options -
- - 22 22
Dividends
- - - (379) (379)
_____ _____ _____ _____ _____
At 31 December 2009 115
5,970 744 2,871 9,700
_________________________
Consolidated Summarised Cash Flow Statement
For the year ended 31 December2009
2009 2008
GBP'000 GBP'000
Cash flows from operating activities
Profit after taxation:
1,139 (1,024)
Adjustment for:
Depreciation
416 350
Profit on sale of property plant and equipment
(2) (7)
Amortisation of customer contracts
26 14
Goodwill impairment
- 1,026
Other intangibles amortisation
69 167
Investment income
(1) (37)
Taxation expense recognised in income statement
417 52
Share option costs recognised in income statement
22 75
Decrease in inventories
220 153
Decrease/(increase) in trade and other receivables
550 (99)
(Decrease)/increase in trade and other payables
(1,375) 1,361
_____ _____
Cash generated from operations 1,481 2,031
Income tax repaid/(paid)
22 (125)
_____ _____
Net cash from operating activities1,503 1,906
Cash flows from investing activities
Purchase of investments
- -
Purchase of intangibles
(124) (16)
Purchase of property, plant and equipment
(998) (1,613)
Proceeds from sale of equipment
1 7
Interest received
1 37
_____ _____
Net cash used in investing activities
(1,120) (1,585)
Cash flows from financing activities
Proceeds from issue of share capital
- -
Dividends paid
(379) (345)
_____ _____
Net cash used in financing activities
(379) (345)
Net increase/(decrease) in cash and cash equivalents
4 (24)
_____ _____
Cash and cash equivalents at beginning of period1,580 1,604
_____ _____
Cash and cash equivalents at end of period
1,584 1,580
__________
Notes to the Preliminary Announcement
For the year ended 31 December 2009
1. Basis of preparation
The preliminary announcement has been prepared in accordance with applicable
International Financial Reporting Standards as adopted by the EU and applied in
accordance with the Companies Act 2006.
The financial statements have been prepared under the historical cost
convention. During 2009 the Group has adopted IFRS 8, Operating Segments, and
the revised standard IAS 1, Presentation of Financial Statements, which have
only impacted the disclosure and presentation of information and have not
resulted in restatement of comparative amounts. Other changes to IFRS, effective
in 2009, have resulted in no material changes to the Group's financial
statements.
2. Segmental reporting
The operating results are attributable to the principal activities of the Group.
Central Central
Trade Retail overhead Total
Trade Retail overhead Total
2009 2009 2009 2009 2008 2008
2008 2008
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
GBP'000 GBP'000 GBP'000
Revenue 27,135 1,185 - 28,320
23,158 2,279 - 25,437
Cost of sales (21,843) (979) - (22,822)
(18,897) (2,178) - (21,075)
_____ _____ _____
_____ _____ _____ _____ _____
Gross profit 5,292 206 - 5,498
4,261 101 - 4,362
Operating costs
excluding non-
recurring costs (2,310) (300) (1,333) (3,943)
(2,072) (609) (1,268) (3,949)
_____ _____ _____
_____ _____ _____ _____ _____
Operating profit
excluding non-
recurring costs 2,982 (94) (1,333) 1,555
2,189 (508) (1,268) 413
_____ _____ _____
_____ _____ _____ _____ _____
Strategic review
of the business - - -
- (246) (150) - (396)
Goodwill
write-down - - -
- - (1,026) - (1,026)
_____ _____ _____
_____ _____ _____ _____ _____
Non-recurring
operating costs - - -
- (246) (1,176) - (1,422)
_____ _____ _____
_____ _____ _____ _____ _____
Total operating
costs (2,310) (300) (1,333) (3,943)
(2,318) (1,785) (1,268) (5,371)
_____ _____ _____
_____ _____ _____ _____ _____
Interest receivable 11
37 37
_____ _____ _____
_____ _____ _____ _____ _____
Profit/(loss)
Before taxation 2,982 (94) (1,332) 1,556
1,943 (1,684) (1,231) (972)
________________________________________
It is not possible to split the central overheads (which include the
amortisation of purchased contracts and trademarks) between the operating
segments of the business as the resources to which they relate are common to
both segments.
Depreciation of GBP416,000 (2008: GBP280,000) and amortisation of computer
software of GBP34,000 (2008: GBP133,000) has been included within the operating
costs of the Trade Business. Depreciation of GBPnil (2008: GBP70,000) and
amortisation of computer software of GBP33,000 (2008: GBP33,000) has been
included within the operating costs of the Retail Business.
All current and non current assets and liabilities other than trade receivables
are used in both segments of the business and therefore have not been allocated
to the segments. The amount carried in trade receivables which relates to the
Retail Business is GBP22,000 (2008: GBP8,000).
3. Profit before tax
The profit before taxation is stated after the costs below.
2009 2008
GBP'000 GBP'000
Depreciation
416 350
Amortisation of customer contracts
26 14
Goodwill impairment
- 1,026
Other intangibles non-current assets amortisation
69 167
Operating lease rentals - land and buildings
157 172
Auditors' remuneration - audit services
26 26
Auditors' remuneration - review of interim financial statements
3 3
Share based payments
22 75
4.Operating costs
2009 2008
GBP'000 GBP'000
Distribution costs
1,745 1,842
Administrative expenses
2,198 2,107
_____ _____
Operating costs excluding non-recurring costs3,943 3,949
Non-recurring costs (see note 2)
- 1,422
_____ _____
Operating expenses3,943 5,371
__________
5. Investment income
2009 2008
GBP'000 GBP'000
Bank deposits
1 37
________
6. Taxation
2009 2008
GBP'000 GBP'000
Corporation tax at an average rate of 26.7% (2008: 23.7%)
358 (21)
Under/(over) provision in prior years
1 (2)
____ ____
Current tax
359 (23)
Deferred tax
58 75
____ ____
Income tax expense417 52
________
Analysis of total tax charge
Profit/(loss) before taxation
1,556 (972)
Profit/(loss) before taxation multiplied by standard rate of
Corporation tax in the UK (28%) (2008: 28.5%)
435 (277)
Expenses not deductible for tax purposes
3 295
Losses carried back to earlier periods
- (18)
Marginal relief
(22) -
Deferred tax impact of reduction in Company's share price
- 60
Other
- (6)
Under/(over) provision in respect of prior periods
1 (2)
____ ____
417 52
________
7. Earnings per share
Basic earnings per share
Basic earnings per share are calculated on the basis of profit for the financial
year after tax divided by the weighted average number of shares in issue for the
year.
Diluted earnings per share are calculated on the basis of profit for the year
after tax divided by the weighted average number of shares in issue in the year
plus the weighted average number of shares which would be issued if all the
options granted were exercised.
2009 2008
Weighted Weighted
average average
Earnings number Per share Earnings number Per share
GBP'000 of shares pence GBP'000 of shares
pence
Basic earnings attributable to
ordinary shareholders1,139 11,499,294 9.9 (1,024)
11,499,294 (8.9)
Dilutive effect of share options -
55,773 - - -
-
____ _________ ____ ____ _________
____
Diluted earnings per share1,139 11,555,067 9.9
(1,024) 11,499,294 (8.9)
__________________________________
Adjusted earnings per share
Adjusted earnings per share are calculated on the basis of adjusted profit for
the year after taxation (see below), defined as profits attributable to the
equity holders of the Company excluding non-recurring costs and share scheme
charges and the deferred tax movements associated with these charges, divided by
the weighted average number of shares in issue in the year. The comparative is
calculated by reference to the weighted average number of shares in issue in
2008.
2009 2008
Weighted Weighted
average average
Earnings number Per share Earnings number Per share
GBP'000 of shares pence GBP'000 of shares
pence
Adjusted earnings attributable to
ordinary shareholders1,161 11,499,29410.1 533 11,499,294
4.6
Dilutive effect of share options -
55,773(0.1) - -
-
____ _________ ____ ____ _________
____
Diluted earnings per share 1,161 11,555,067
10.0 533 11,499,294 4.6
__________________________________
2009 2008
GBP'000 GBP'000
Profit/(loss) for the year attributable to the equity1,139
(1,024)
holders of the Company
Non-recurring costs
- 1,422
Share scheme charges
22 75
Deferred tax movement on share scheme charges
- 60
_____
_____
Adjusted earnings attributable to
ordinary shareholders
1,161 533
__________
8. Post balance sheet events
On 4 March 2010, the Company announced a second interim dividend of 1.5p per
share. This will be paid on 30 March 2010 to all shareholders who were on the
register of members at 12 March 2010.
On 5 March 2010 the Group acquired the business and certain assets relating to
the UK manufacturing operations of Helesi plc for a consideration of
GBP1,650,000 in cash. This consideration consists of GBP450,000 on exchange of
contracts, a further balance of GBP450,000 on 26 March 2010 with the balance
being paid in 10 equal monthly instalments commencing on 30 April 2010. The
initial accounting for the acquisition was incomplete on 23 March 2010 as
completion was not due until 26 March 2010.
On 23 March 2010, the Company proposed a final dividend of 0.7p per share.
Subject to shareholder approval, this dividend will be paid on 4 June 2010 to
shareholders on the register of members on 7 May 2010. This gives a total
dividend for the year of 3.5p (2008: 3.0p).
9. Publication of non statutory accounts
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 435 of the Companies Act
2006.
The Summarised Consolidated Balance sheet at 31 December 2009, Summarised
Statement of Comprehensive Income, Summarised Consolidated Cash Flow statement,
Consolidated Statement of Changes in Equity and associated notes for the year
then ended, have been extracted from the Group's financial statements upon which
the auditors opinion is unqualified and does not include any statement under
section 498[2] and 498[3] of the Companies Act 2006. Those financial statements
have not yet been delivered to the Registrar.
10. Annual General Meeting
The Annual General Meeting of the Company will be held in Leeds on Friday 28 May
2010. Full details will be included in the published Annual Report and
Financial Statements, which will be sent to shareholders in due course.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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