Interim Results

RNS Number:3496J
Walker (Thomas) PLC
04 March 2005


                  Chairman's Statement on the Interim Results
                    for the half year ending 31 December 2004
                                        

The interim statement includes, for the first time, the results of the newly
acquired subsidiary Guests Brass Stampings Ltd (Guests).

The first half results incorporate two opposing trends. On the one hand the
Board is pleased to report that the investment in Guests has fully matched
expectations even though the process of modernisation and restructuring is still
at an early stage. On the other hand, the traditional textile based business of
Thomas Walker continues to decline in line with garment manufacturing as a
whole.

The bespoke brass stamping activities of Guests remain positive. The pattern of
short runs and prompt delivery keeps it relatively immune from migration to
emergent manufacturing bases in Eastern Europe or China.

It is already responding to the progressive introduction of new technologies in
design, toolmaking and manufacturing.

The Board is confident that the Guests enterprise will assume a growing
significance in the months ahead. There is new business to be developed and
initial successes augur well with first half sales ahead of last year.

In textiles, the patterns of the previous year were repeated with order intake
and sales prices drifting downwards as the period progressed, driven by
generally weak performance from the major garment retailers. As last year, this
was widely reported in the media and has been confirmed subsequently in the
published results and commentaries for many of the prime clothing brands.

Our market share for UK based Identity Products was maintained even though
margins were reduced through greater competition and a weakening market.

The adverse trends in the traditional Thomas Walker (UK) trades described above
resulted in an overall 12% decline in sales volume compared with the previous
year.

The Hong Kong operations proved to be in a better position to accommodate the
weaknesses of the European and the North American markets. Turnover direct to
third parties rose by 30% (albeit from a lower base than the UK company) and
profitability was maintained.

In China, new factors emerged through manufacturing capacity being restricted by
rotating power cuts of one day per week and by a temporary hiatus in raw
material supplies caused by new central government controls. Customer loyalty
was maintained by reverting to UK production when necessary, but with some
adverse impact on margin.

In total, the Thomas Walker Group turnover benefited from the additional Brass
Stamping business and rose 35% to #2,544,203, (2003 - #1,879,113). Pre-tax
profit rose by 62.5% to #93,304 (2003 - #57,415).

Reports in early 2005 indicate that the weaknesses in the clothing market are
persisting into the new year as garment manufacturers migrate again to more
remote and more low cost locations and are faced with ongoing demands from the
retail for even lower prices. Ordering patterns are also changing away from bulk
commitments to small ad hoc call offs at restricted margins to compete with
local component producers.

In the second half of the current year, brass stamping will continue to offset
ongoing downward tendencies in textiles and will further demonstrate the
benefits of the investment.

In view of the uncertainties in the textile sector, the Directors consider that
a prudent dividend policy is essential at the half year stage. The Board
therefore proposes to maintain the interim dividend of 0.15p per share (2003 -
0.15p) distribution will be on 15th April 2005.

B. C. Knight
Chairman
4th March 2005




Consolidated Profit and Loss Account

                                            Unaudited    Unaudited 
                                           Six months   Six months 
                                                ended        ended   Year ended
                                             31/12/04     31/12/03     30/06/04
                                                    #            #            #

Turnover                                    2,544,203    1,879,113    3,785,767
                                            ---------    ---------    ---------
Operating profit                               99,848       44,363      128,021
Gain on disposal of freehold                        -            -    1,554,824
property
Net interest (payable)/receivable              (6,544)      13,052       15,015
Profit before taxation                         93,304       57,415    1,697,860
                                            ---------    ---------    ---------
Taxation                                      (27,991)     (17,225)     (65,881)
                                            ---------    ---------    ---------
Profit attributable to shareholders            65,313       40,190    1,631,979
Dividends                                      (9,240)      (9,240)     (49,280)
                                            ---------    ---------    ---------
Retained profit                                56,073       30,950    1,582,699
                                            =========    =========    =========
Dividends (pence per share)
Interim                                          0.15p        0.15p        0.15p
Final                                               -            -         0.58p
Earnings per share                               1.06p        0.65p       26.49p



Consolidated statement of total recognised gains and losses

                                            Unaudited    Unaudited
                                           Six months   Six months
                                                ended        ended   Year ended
                                             31/12/04     31/12/03     30/06/04
                                                    #            #            #

Profits for the period                         65,313       40,190    1,631,979
Exchange differences                             (173)       2,513        2,992
                                           ----------    ---------    ---------
Total Recognised Gains and Losses              65,140       42,703    1,634,971
                                           ==========    =========    =========



Consolidated balance sheet

                                            Unaudited    Unaudited
                                           Six months   Six months
                                                ended        ended   Year ended
                                             31/12/04     31/12/03     30/06/04
                                                    #            #            #

Fixed assets                                3,049,849    1,807,362    3,005,331
Fixed assets held for re-sale                       -      795,080            -
                                            ---------    ---------    ---------
Fixed Assets                                3,049,849    2,602,442    3,005,331
                                            ---------    ---------    ---------

Other current assets                        2,364,298    2,139,390    3,023,747
Cash at bank and in hand                       20,349            -      580,891
                                            ---------    ---------    ---------
Current assets                              2,384,647    2,139,390    3,604,638
                                            ---------    ---------    ---------

Creditors - amounts falling
due within one year
Deposit on exchange of contract                     -     (250,000)           -
Short term loan                              (220,916)  (1,100,000)  (1,000,000)
Bank overdraft                                      -      (53,499)           -
Other creditors                              (764,923)    (578,409)  (1,229,904)
                                            ---------    ---------    ---------
                                             (985,839)  (1,981,908)  (2,229,904)
                                            ---------    ---------    ---------
Net current assets                          1,398,808      157,482    1,374,734
                                            ---------    ---------    ---------
                                            ---------    ---------    ---------
Total assets less current liabilities       4,448,657    2,759,924    4,380,065
                                            ---------    ---------    ---------

Creditors - amounts falling due after more
than one year
Provisions for liabilities and charges        (63,282)      (3,582)     (63,282)
Deferred Income                                (4,200)           -       (5,700)
                                            ---------    ---------    ---------
Net assets                                  4,381,175    2,756,342    4,311,083
                                            =========    =========    =========
                                            ---------    ---------    ---------
Capital and reserves                        4,381,175    2,756,342    4,311,083
                                            =========    =========    =========



Consolidated cash flow statement

                                            Unaudited    Unaudited
                                           Six months   Six months
                                                ended        ended   Year ended
                                             31/12/04     31/12/03     30/06/04
                                                    #            #            #

Net cash inflow from operating activities     425,257      150,081      347,629

Returns on investment and servicing on
finance                                        (6,544)      13,052       15,015
                                            ---------    ---------    ---------

Taxation paid                                       -            -      (49,537)

Capital expenditure                          (160,131)    (289,764)   1,214,406
                                            ---------    ---------    ---------

Acquisitions and disposals                          -            -     (910,514)

Equity dividends paid                         (40,040)     (35,728)     (44,968)

Financing                                    (779,084)    (200,000)    (300,000)
                                            ---------    ---------    ---------
(Decrease)/increase in cash                  (560,542)    (362,359)     272,031
                                            =========    =========    =========

Dividends will be paid to those shareholders on the register at close of
business on 18th March 2005: paid on 15th April 2005.

Taxation is calculated at 30%.

The interim statement will be sent to shareholders and is available to the
public at the registered office: Catesby Park, Eckersall Road, Kings Norton,
Birmingham B38 8SE.

The figures for the financial year ended 30 June 2004 are based on an abridged
version of the audited accounts of the group which carried an unqualified audit
report filed with the registrar of companies.



End
4th March 2005






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IR ILFELVEISIIE