Final Results
Buckland Investments PLC
17 June 2002
BUCKLAND INVESTMENTS PLC
Preliminary Announcement of Final Results
for the year ended
31 December 2001
Chairman's Statement
I am pleased to present the financial results for Buckland for the year ended 31
December 2001. The results show a profit before exceptional item and tax of £
14,406. After charging exceptional costs of £100,286 relating to the closure of
all operations in France, the resulting loss before tax was £85,880 (2000: loss
£1,272,839). Sales for the year were £5,807,836 (2000: £7,141,375). There is no
tax liability for the year. Before exceptional charges, the profit per share
was 0.14p; after the exceptional item, the attributable loss was equivalent to
0.58p per share (2000: 8.35 p loss per share). No dividend is proposed.
Review of 2001
Restructuring
The year 2001 saw the final completion of the process of restructuring the
operations of our component manufacturing subsidiaries. Following the transfer
of all production activity to Thailand during 2000, we had intended to maintain
a small operation in France, to handle sales and distribution to our European
customers and to continue the design and development function. However, it soon
became clear that this was not going to be a cost effective solution.
Accordingly in March 2001 we appointed Pechiney World Trade to act as our sole
distributor and principal agent for all sales in Europe. Pechiney had already
fulfilled this role for us in the UK for the previous ten years and we were
pleased to be able to conclude this wider agreement with them, which reduces our
net sales and distribution costs in Europe.
In July 2001, we applied for our two French subsidiaries to be placed in the
French equivalent of administration. This was followed by the total closure of
all operations in France last December and the liquidation of both companies in
early January 2002. Our R&D department is now based with the manufacturing
operations in Bangkok and is being built up by the recruitment of suitably
qualified engineers from within the region.
As a result of the closure of all operations in France, there was an exceptional
charge of £ 100,286 to the P&L account. Essentially it comprises redundancy
costs plus the write-off of goodwill and assets relating to the French companies
less corresponding liabilities.
Following the above restructuring, all the Group's manufacturing operations are
based in Bangkok and comprise plastic injection moulding, metal stamping and
metal treatment, and high volume manual / part automated assembly lines. These
operations are supported by quality assurance, tool room and design and
development functions. In addition our sales and marketing and finance functions
are also based in Bangkok. For further information about our connector business,
please visit Euro Asia Connector's website at www.euroasia.co.th .
Trading
Sales during 2001 were unaffected by the restructuring of the French operations
and we continued to supply CRT sockets and SCART connectors to the majority of
the major consumer electronics manufacturers worldwide.
Sales in Europe were again at a satisfactory level. Demand for CRT sockets and
SCART connectors for the colour TV market was stable whilst the declining demand
for SCARTS for VCRs was offset by good sales into set top boxes and into the
fast growing market for DVD players. Sales of our new range of power input
sockets also grew steadily. Following the Pechiney agreement last March, our
terms of trade for sales in Europe were changed from CIF customers' plants to
FOB Bangkok, which means that European turnover figures do not compare directly
between 2000 and 2001.
In Asia the computer monitor industry was badly hit by the worldwide fall in PC
sales and as a result our sales of CRT sockets were also lower, with 2001 sales
being 15% down on the previous year.
However, more importantly, we finally began to see the benefits of having all
our manufacturing operations in Thailand, on a significantly lower cost base.
This meant that the continuing Group operations were able to generate a
significant profit which unfortunately was offset, albeit for the last time, by
equally significant losses in France.
Annual General Meeting
Following recommendations from shareholders, a resolution will be proposed at
the Annual General Meeting to change the name of the company to Buckland Group
plc, to avoid any further confusion between our activities and those of a
financial investment company.
A further resolution will be proposed to extend the expiry date of the existing
share option scheme from 30th September 2004 to 30th September 2009. At present
only the directors of Buckland have interests in this scheme but it is intended
to grant options in the near future to key members of the management team in
Thailand as well. Extending the expiry date to 2009 will ensure that the scheme
continues to offer an appropriate level of incentive to all participants.
Extraordinary General Meeting
As a result of the fact that the Company's net assets have fallen to a level
less than half of its called up share capital, it is a requirement of company
law to convene an Extraordinary General Meeting to consider that fact and the
steps taken by the directors in regard thereto. Accordingly an EGM of the
Company will be held immediately following the AGM.
The fall in net assets was caused by the continuing losses in France in 2001
together with the writing-off of our investments in the French subsidiaries. The
fund raisings mentioned below have restored the Company's balance sheet and
liquidity to a level considered satisfactory by your Board.
Outlook
Since the year end we have greatly strengthened the Group's balance sheet by
raising a total of approximately £870,000 net of expenses by the issue of new
shares at 0.75 pence each. As a result the Group is now in a healthy financial
position with pro forma net assets, adjusted for the fund raisings, standing in
excess of £1.0m.
Sales in Europe in 2002 to date have been satisfactory, helped in part by the
stimulus to demand from the World Cup. In Asia the market remains more difficult
because of continuing depressed demand from the PC industry worldwide, which
sources most of its monitors in Asia. However, there are some expectations of
recovery in that market during the second half of this year.
Overall we expect to report significant progress in 2002, reflecting for the
first time the unfettered benefits of our new, much lower cost base. With the
restructuring of the business now completed, we are looking to develop the Group
by both organic growth and by acquisitions in related activities.
Enquiries
Buckland Investments plc
Patrick Rogers, Chairman
07711 420702
Nabarro Wells & Co. Limited
David Nabarro
020 7710 7400
Consolidated profit and loss account for the year ended 31 December 2001
Year ended Year ended
31 December 2001 31 December 2000
£ £ £ £
Turnover
Continuing operations 5,137,362 2,302,990
Discontinued operations 670,474 4,838,385
5,807,836 7,141,375
Cost of sales (4,559,351) (5,484,356)
Gross profit 1,248,485 1,657,019
Administrative expenses (1,168,072) (2,837,157)
Other operating income 97,677 169,011
Operating profit/(loss)
Continuing operations 588,844 290,688
Discontinued operations (410,754) (1,301,815)
178,090 (1,011,127)
Exceptional item (100,286) -
Interest receivable - -
Interest payable and similar
charges
Continuing operations (56,774) (102,809)
Discontinued operations (106,910) (158,903)
(163,684) (261,712)
Loss on ordinary activities
before taxation (85,880) (1,272,839)
Tax on loss on ordinary
activities - -
Retained loss transferred
from reserves (85,880) (1,272,839)
Profit/(loss) per ordinary
share, before Exceptional
item
Basic 0.14p (8.35)p
(Loss) per ordinary share,
after Exceptional item
Basic (0.58)p (8.35)p
Consolidated statement of total recognised gains and losses
and consolidated reconciliation of movements in shareholders' funds
for the year ended 31 December 2001
Year ended Year ended
31 December 2001 31 December 2000
£ £
Consolidated statement of total recognised gains and losses
Loss for the period (85,880) (1,272,839)
Exchange translation gain/(loss) on foreign currency
net investments in subsidiary undertakings 56,136 (75,685)
Total recognised gains and losses for the period (29,744) (1,348,524)
Consolidated reconciliation of movements in shareholders' funds
Total recognised gains and losses (29,744) (1,348,524)
New ordinary share capital subscribed for and allotted in the period,
including share premium (net of expenses) - 30,000
Net reduction in equity shareholders' funds (29,744) (1,318,524)
Opening equity shareholders' funds 224,673 1,543,197
Closing equity shareholders' funds 194,929 224,673
Consolidated balance sheet at 31 December 2001
At 31 December 2001 At 31 December 2001
£ £ £ £
Fixed assets
Intangible assets 81,483 558,452
Tangible assets 630,354 948,968
711,837 1,507,420
Current assets
Stocks 738,280 988,405
Debtors 779,129 1,802,631
Cash at bank and in hand 87,304 37,658
1,604,713 2,828,694
Creditors: amounts falling due
within one year (1,999,335) (4,090,677)
Net current liabilities (394,622) (1,261,983)
Total assets less current liabilities 317,215 245,437
Creditors: amounts falling due
after more than one year (122,286) (20,764)
194,929 224,673
Capital and reserves
Called up share capital 1,540,900 1,540,900
Share premium account 459,993 459,993
Profit and loss account (1,805,964) (1,776,220)
Equity shareholders' funds 194,929 224,673
Company balance sheet at 31 December 2001
At 31 December 2001 At 31 December 2001
£ £ £ £
Fixed assets
Investments 722,822 1,022,822
722,822 1,022,822
Current assets
Debtors
- falling due within one year 194,723 149,960
Creditors: amounts falling due
within one year (588,716) (359,417)
Net current liabilities (393,993) (209,457)
Provisions for liabilities and charges (118,476) -
Total assets less current liabilities 210,353 813,365
Capital and reserves
Called up share capital 1,540,900 1,540,900
Share premium account 459,993 459,993
Profit and loss account (1,790,540) (1,187,528)
Equity shareholders' funds 210,353 813,365
Consolidated cash flow statement for the year ended 31 December 2001
Year ended Year ended
31 December 31 December 2000
2001
£ £
Net cash inflow from operating activities (see below) 1,025,157 213,959
Returns on investments and servicing of finance (163,684) (262,861)
Taxation 10,518 43,881
Capital expenditure (81,789) 228,055
Cash inflow before management of liquid resources
and financing 790,202 223,034
Financing (739,076) (598,047)
Increase/(Decrease) in cash 51,126 (375,013)
Reconciliation of net cash flow to movement in net funds
Increase/(Decrease) in cash in the period 51,126 (375,013)
Cash inflow from decrease in debt 746,699 628,047
Change in net debt resulting from cash flows 797,825 253,034
Inception of finance leases - (37,456)
Exchange movement 27,025 (49,446)
Write down of loans during period 266,441 -
Movement in net debt in the period 1,091,291 166,132
Opening net debt (1,576,409) (1,742,541)
Closing net debt (485,118) (1,576,409)
Reconciliation of operating (loss)/profit to net
cash inflow/(outflow) from operating activities
Operating profit/(loss) 178,090 (1,011,127)
Depreciation 334,289 368,675
Amortisation of goodwill 41,441 40,735
(Profit) on sale of fixed assets (3,157) (92,043)
Decrease in stocks 177,785 120,059
Decrease in debtors 651,043 374,937
(Decrease)/increase in creditors (253,663) 412,723
Redundancy costs (100,671) -
Net cash inflow from operating activities 1,025,157 213,959
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985. The consolidated profit and loss account, consolidated statement of
recognised gains and losses, consolidated reconciliation of movement in
shareholders' funds, consolidated balance sheet, company balance sheet and
consolidated cash flow statement for the year ended 31 December 2001 have been
extracted from the Group's statutory financial statements for the year ended 31
December 2001 upon which the auditors opinion is unqualified and does not
include any statement under section 237 of the Companies Act 1985. The results
for the year ended 31 December 2000 have been extracted from the statutory
accounts for that period, which have been delivered to the Registrar of
Companies and on which the auditors gave an unqualified report.
A copy of the full financial statements of the Group for the year ended 31
December 2001 is being sent to all shareholders and further copies of this
statement or the full financial statements may be obtained from Buckland
Investments PLC, 106 Ebury Street, London SW1W 9QD.
This information is provided by RNS
The company news service from the London Stock Exchange
SRWRUVRNAAR
Latest directors dealings
- 2 days ago NextEnergy Solar Fund Limited Red
- 2 days ago Ashtead Group
- 2 days ago Playtech
- 2 days ago CRH (CDI)
- 2 days ago Foxtons Group