Final Results

RNS Number : 9554F

Caffyns PLC

31 May 2013

 



Caffyns plc

Preliminary Results for the year ended 31 March 2013

Summary

	2013	2012
	£'000	£'000
Revenue	164,965	170,192
Reported profit before tax	1,522	1,456
Adjusted EBITDA *	2,981	2,568
Adjusted operating profit **	2,110	1,625
Adjusted profit before tax **	1,218	564
Non-underlying items before tax **	304	892
	P	P
Earnings per share	46.6	51.0
Adjusted earnings per share **	37.3	27.2
Proposed final dividend per share	7.0	7.0
*  Adjusted EBITDA is adjusted operating profit plus underlying depreciation of £871,000
**   Adjusted for non-underlying items (as restated)

Highlights

§ Underlying profit before tax of £1,218,000 (2012: £564,000).

§ Profit before tax of £1,522,000 (2012: £1,456,000).

§ Like for like new car unit sales up 18.5%.

§ Like for like increase in underlying revenue of 10.6%.

§ Adjusted earnings per share of 37.3p (2012: 27.2p).

§ Successful disposal of three underperforming businesses.

Commenting on the results, Simon Caffyn, Chief Executive said: "We are pleased to have improved our underlying trading profits after a period of restructuring.  We continue to invest the proceeds from the sale of properties and closed operations into larger business opportunities in stronger markets to deliver higher returns on capital.  Fewer, bigger sites will enable us to deliver performance improvement.  Our improved profitability in the second half of last year has continued into the current financial year."

Enquiries:

Caffyns plc	Simon Caffyn, Chief Executive	Tel:	01323 730201
	Mark Harrison, Finance Director
The HeadLand Consultancy	Tom Gough	Tel:	0207 367 5228
			07717 896701

Operational and Business Review

Summary of results

I am pleased to report that the Group has increased profit before tax in the year ended 31 March 2013 to £1.52m (2012: £1.46m) building on the underlying profits announced at the half year. Profit before tax and non-underlying items is £1.22m, up from £0.56m (as restated) in the previous financial year.

Revenue at £165.0m was down from £170.2m last year, following the closure of three underperforming businesses during the prior year.  Underlying revenues on a like for like basis, excluding the disposal of four non-core operations, increased by 10.6%.

The net non-underlying gain of £0.3m comprised gains on the sale of two properties, net of impairments, of £1.72m together with a net credit on the pension scheme of £67,000 less the costs of closing businesses of £1.07m and other redundancies of £0.41m.

Adjusted earnings per share are 37.3p (2012: 27.2p as restated). Basic earnings per share are 46.6p (2012: 51.0p) reflecting a 15% taxation charge this year compared to a tax credit in the previous year.  

New and Used Cars

Our new unit sales were up by 18.5% on a like for like basis, while total UK new car registrations rose by 7.2% over the twelve month period. Within this, the private and small business sector rose by 13.2% so we outperformed both the overall UK average and the specific sector in which Caffyns operates. Our premium and premium-volume franchises continue to perform well and new car margins remained firm, with new car gross profits ahead of our internal expectations.

Used car unit sales in the year were up 2.3% on a like for like basis with the second half up 12.0% on a like for like basis.

Aftersales

Total UK new car registrations continue to be below pre-recession levels resulting in a further reduction in the overall size of the 0 to 5 year old car servicing market and a 2.4% decline in like for like aftersales revenues.  However, the actions we have taken to enhance our aftersales marketing and retention procedures, together with our improving new and used car sales, are addressing this issue.

Operations

The UK new car retail market is being driven by manufacturer offers to counteract the depressed market in mainland Europe.  Our focus on improving operational processes has seen an encouraging increase in new and used car sales and this, along with used finance and aftersales retention, remains at the centre of our drive to enhance profitability.

The new and enlarged showroom and aftersales facilities for our Volkswagen dealership in Brighton are now complete, on schedule and budget, with the business returning to normal trading after the onsite disruption.

Work on the construction of our new Volkswagen dealership in Worthing began in May 2013, with an expected completion early in 2014. The anticipated cost of the development at £4.75m will be partially offset, in due course, by the sale of the existing site occupied by this franchise in Goring.

In Haywards Heath the enlargement of our Volkswagen showroom has been completed. This dealership is situated next to the busy commuter station and our improved facilities are highly visible from the platform.

We have begun trading as a Seat dealer in Tunbridge Wells alongside our Skoda business and will be redeveloping the two showrooms to the new franchise specifications.

As previously reported, our loss-making Ford and Volvo business in Brighton was sold in July 2012 and we also closed our Ford retail dealership in Alton in September 2012.

In February 2013, we acquired a freehold property immediately adjacent to our Land Rover dealership in Lewes. The purchase of this site enables us to operate our aftersales activities at our enlarged dealership, having vacated nearby leasehold premises in April 2013.

In Ashford we are redeveloping our redundant bodyshop building to provide a larger showroom and workshop facility for the growing Skoda franchise.

Restructuring

We announced in July 2011 that we would be ceasing representation of Vauxhall for new car sales in Ashford and Tunbridge Wells when the then current agreements terminated. We now represent Skoda and Seat in the Tunbridge Wells site but, after positive discussions with Vauxhall since the end of our financial year, we have agreed to continue to represent Vauxhall in Ashford. We have seen a considerably improved performance there and we believe that this new arrangement will optimise our return from this important dealership. Trading from these Vauxhall sites has been treated as non-underlying in the period from July 2011 to March 2013.

In addition to these closures and disposals referred to above, we have further reduced central and branch administration costs.  The funds generated by these actions will be invested in growing our remaining businesses and in acquiring further operations as and when appropriate opportunities arise.

The total costs attributable to the above restructuring were £1.07m, in addition to which there were redundancy costs of £0.41m. 

Property

We operate primarily from freehold properties and our property portfolio provides strategic flexibility to our business model. During the year, we incurred capital expenditure of £3.67m and realised £2.9m net of disposal costs on the sale of our freehold properties sites at Alton and Goring-by-Sea. Net gains on the disposal of tangible fixed assets were £1.9m.

A valuation of the Company's freehold premises as at 31 March 2012 was carried out by chartered surveyors CBRE Limited on the basis of existing use value. Excluding the three freehold properties being offered for sale at 31 March 2013, the properties were valued at £4.6m over their net book value. In accordance with the Group's accounting policies (which reflect those utilised throughout the industry), this surplus has not been incorporated into the Group's accounts. The directors are advised that there has not been a significant change in values during the year to 31 March 2013.

We have exchanged contracts, conditional upon an appropriate planning approval, for the sale of freehold land in Hailsham for £1.4m. Our freehold property in Upperton Road, Eastbourne has been marketed and an offer accepted, subject to a planning approval. However, contracts have not yet been exchanged. 

Following the purchase of the freehold property in Lewes, adjacent to our Land Rover dealership, for £2.0m in February 2013, we now occupy about half of the site for our aftersales activities. At the same time, we had terminated a leasehold unit in the vicinity which resulted in termination costs of £183,000. This represented a "one-off" opportunity to consolidate our significant Land Rover operations onto one site. We are examining with our advisors opportunities to redevelop the balance of this site.

The Folkestone site was leased to a tenant in October 2012 and unconditional contracts for the sale of the freehold property were exchanged on 16 May 2013. The proceeds of £495,000, which are the same as book value net of disposal costs, are receivable on completion by 15 August 2013. This property is shown as an asset held for sale in the balance sheet at 31 March 2013.

In Tonbridge we had a vacant leasehold site which was underlet in March 2013 to a third party at the current passing rent.

As a consequence of these various actions on properties, an impairment provision of £178,000 was required in the year.

Bank facilities

Overall bank facilities remain at £18.0m.  Facilities from HSBC total £11.0m and include a three year revolving credit facility expiring in March 2015 together with a £3.5m overdraft. We also have a £7.0m overdraft facility provided by Volkswagen Bank.  Bank borrowings net of cash balances at 31 March 2013 were £9.84m (2012: £8.7m).

Pension Scheme

The Group has a defined benefit pension scheme which was closed to future accrual in 2010. The directors have very little control over the key assumptions required by the accounting standards in the valuation calculations. Despite an increase in the scheme assets during the year of £5.5m, the deficit, net of deferred tax, increased to £10.5m at 31 March 2013 (2012: £4.8m), mainly due to the reduction in the discount rate used to value the liabilities of the scheme. The discount rate used to value the liabilities is related to the yield on Government securities and this rate has reduced during the year from 5.1% at 31 March 2012 to 4.3% at 31 March 2013, increasing the scheme's liabilities. Each 0.1% reduction in the discount rate increases the liabilities by between £1.0m and £1.5m.

The net financing return and service cost on pension obligations in respect of the defined benefit pension scheme is now presented as a non-underlying item.  Prior period figures have been restated on a consistent basis, the result of which was to reduce profit before taxation before non-underlying items by £215,000 for the year ended 31 March 2012.  While the total tax charge for the Group is unchanged, the comparative taxation figure in respect of non-underlying items for the previous year has been restated accordingly.  The change in accounting policy had no impact upon the balance sheet of the Group.

The triennial valuation as at 31 March 2011 shows a deficit at that date of £14.4m. The Recovery Plan agreed with the trustees requires a cash payment of £375,000 in the year to 31 March 2013 followed by £346,000 in the year to 31 March 2014 increasing by 3.4% per annum thereafter.

The Board continues to work with the trustees to review the available opportunities that could further reduce the deficit.

People

During recent years we have seen considerable restructuring of the group but throughout this period of change our employees have been very positive in their approach. This has been a difficult period and I should like to thank them personally for their dedication under challenging circumstances.  

I am particularly pleased by the success of our apprentice programme. We were delighted to win the South East Regional Apprentice Large Employer of the Year Award and were also recognised as one of the top 100 Apprenticeship Employers of the Year in the UK.

Having served for nine years as a non-executive director, Andrew Goodburn can no longer be considered independent in accordance with the UK Corporate Governance Code and he will retire from the Board this year. We thank him for his excellent contribution to the Board during his period of office. As is our policy, we have engaged independent executive search consultants to recruit a replacement.

Dividend

The Board has decided to recommend a final dividend of 7.0p per Ordinary Share (2012: 7.0p).  If approved at the Annual General Meeting, this will be paid on 25 July 2013 to shareholders at close of business on 28 June 2013. 

Together with the interim dividend of 5.0p per Ordinary Share (2012: 5.0p) paid during the year, the total dividend for the year will be 12.0p per Ordinary Share (2012: 12.0p).

Strategy

Our overall strategy of focusing on representing premium and premium-volume franchises is delivering positive results.

We continue to invest the proceeds from the sale of properties and closed operations into larger business opportunities in stronger markets to deliver higher returns on capital. Fewer, bigger sites will enable us to deliver performance improvement.

Outlook

Our improved profitability in the second half of last year has continued into the current financial year.  We have seen signs of an improvement in consumer confidence with the new car market up 8.9% in the UK in the four months to April 2013. However the market in Europe remains weak and this could affect the levels of manufacturer support available to the UK market. We remain strategically well placed with resilient premium franchises to take advantage of any improvement in economic conditions. 

S G M Caffyn

Chief Executive

31 May 2013

Consolidated Income Statement

for the year ended 31 March 2013

	Note	Underlying	Non-underlying (note 5)	2013	Underlying (as restated)*	Non-underlying (note 5) (as restated)*	2012
		£'000	£'000	£'000	£'000	£'000	£'000
Revenue		150,847	14,118	164,965	154,375	15,817	170,192
Cost of sales		(131,969)	(12,117)	(144,086)	(134,282)	(13,816)	(148,098)
Gross profit		18,878	2,001	20,879	20,093	2,001	22,094
Operating expenses
Distribution costs		(11,030)	(1,750)	(12,780)	(11,910)	(2,065)	(13,975)
Administration expenses		(5,738)	(1,727)	(7,465)	(6,558)	(1,273)	(7,831)
Operating profit before other income		2,110	(1,476)	634	1,625	(1,337)	288
Other income (net)		-	1,718	1,718	-	2,024	2,024
Operating profit		2,110	242	2,352	1,625	687	2,312
Finance expense	6	(892)	(25)	(917)	(1,061)	(32)	(1,093)
Finance income on pension scheme	7	-	87	87	-	237	237
Net finance (expense)/income		(892)	62	(830)	(1,061)	205	(856)
Profit before taxation		1,218	304	1,522	564	892	1,456
Income tax (expense)/credit	8	(186)	(47)	(233)	192	(232)	(40)
Profit for the year from continuing operations		1,032	257	1,289	756	660	1,416
Earnings per share continuing operations
Basic	9			46.6p			51.0p
Diluted	9			45.2p			49.1p

*see note 2

Consolidated Statement of Comprehensive Income

for the year ended 31 March 2013

	2013		2012
	£'000		£'000
Profit for the year	1,289		1,416
Other comprehensive income:
Defined benefit plan actuarial loss recognised	(7,843)		(1,196)
Deferred tax on actuarial loss	1,804		287
Total other comprehensive income, net of taxation	(6,039)		(909)
Total comprehensive income for the year	(4,750)		507

Consolidated Balance Sheet

at 31 March 2013

	2013 £'000		2012 £'000
Non-current assets
Property, plant and equipment	31,073		26,669
Investment property	528		532
Goodwill	286		286
Deferred tax asset	1,743		172
	33,630		27,659
Current assets
Inventories	25,650		25,722
Trade and other receivables	6,174		6,712
Cash and cash equivalents	1,159		22
Non-current assets classified as held for sale	446		3,180
	33,429		35,636
Total assets	67,059		63,295
Current liabilities
Interest bearing loans and borrowings	3,500		1,219
Trade and other payables	25,658		26,501
Current tax payable	208		208
	29,366		27,928
Net current assets	4,063		7,708
Non-current liabilities
Interest bearing loans and borrowings	7,500		7,500
Preference shares	1,237		1,237
Retirement benefit obligations	13,641		6,260
	22,378		14,997
Total liabilities	51,744		42,925
Net assets	15,315		20,370
Capital and reserves
Share capital	1,439		1,439
Share premium account	272		272
Capital redemption reserve	282		282
Non-distributable reserve	2,390		2,390
Other reserve	120		96
Retained earnings	10,812		15,891
Total equity attributable to shareholders of Caffyns plc	15,315		20,370

Consolidated Statement of Changes in Equity

for the year ended 31 March 2013

	Share capital £'000	Share premium £'000	Capital redemption reserve £'000	Non-distributable reserve £'000	Other reserve £'000	Retained earnings £'000	Total £'000
At 1 April 2012	1,439	272	282	2,390	96	15,891	20,370
Total comprehensive income
Profit for the period	-	-	-	-	-	1,289	1,289
Other comprehensive income	-	-	-	-	-	(6,039)	(6,039)
Total comprehensive income for the year	-	-	-	-	-	(4,750)	(4,750)
Transactions with owners:
Dividends	-	-	-	-	-	(332)	(332)
Issue of shares - SAYE scheme						3	3
Share-based payment	-	-	-	-	24	-	24
At 31 March 2013	1,439	272	282	2,390	120	10,812	15,315

for the year ended 31 March 2012

	Share capital £'000	Share premium £'000	Capital redemption reserve £'000	Non-distributable reserve £'000	Other reserve £'000	Retained earnings £'000	Total £'000
At 1 April 2011	1,439	272	282	2,419	72	15,786	20,270
Total comprehensive income
Profit for the period	-	-	-	-	-	1,416	1,416
Other comprehensive income	-	-	-	-	-	(909)	(909)
Realised surpluses on disposal of land and buildings	-	-	-	(29)	-	29	-
Total comprehensive income for the year	-	-	-	(29)	-	536	507
Transactions with owners:
Dividends	-	-	-	-	-	(335)	(335)
Purchase of own shares (net)	-	-	-	-	-	(104)	(104)
Issue of shares - SAYE scheme	-	-	-	-	-	8	8
Share-based payment	-	-	-	-	24	-	24
At 31 March 2012	1,439	272	282	2,390	96	15,891	20,370

Consolidated Cash Flow Statement

for the year ended 31 March 2013

	Note		2013		2012
			£'000		£'000
Net cash outflow from operating activities	11		(41)		(2,046)
Investing activities
Proceeds on disposal of property, plant and equipment			2,896		4,557
Purchases of property, plant and equipment			(3,670)		(2,703)
Net cash (outflow)/inflow from investing activities			(774)		1,854
Financing activities
Secured loans repaid			-		(3,000)
Secured loans received			-		2,500
Purchase of own shares			-		(104)
Issue of shares - SAYE scheme			3		8
Dividends paid			(332)		(335)
Net cash outflow from financing activities			(329)		(931)
Net (decrease)/increase in cash and cash equivalents			(1,144)		(1,123)
Cash and cash equivalents at beginning of year			(1,197)		(74)
Cash and cash equivalents at end of year			(2,341)		(1,197)
			31 March		31 March
			2013		2012
			£'000		£'000
Cash and cash equivalents			1,159		22
Overdrafts			(3,500)		(1,219)
Net cash and cash equivalents			(2,341)		(1,197)

Notes

for the year ended 31 March 2013

1.             GENERAL INFORMATION

Caffyns plc is a company domiciled in the United Kingdom. The address of the registered office is Saffrons Rooms, Meads Road, Eastbourne BN20 7DR. The registered number of the Company is 105664.

These consolidated financial statements were approved by the Directors on 31 May 2013.

2.             ACCOUNTING POLICIES

The financial information has been prepared under International Financial Reporting Standards (IFRSs) issued by the IASB and as adopted by the European Commission (EC). This financial information has been prepared on the same basis as in 2012.             

       
Whilst the financial information included in this announcement has been computed in accordance with IFRSs, this announcement does not itself contain sufficient information to comply with IFRSs.

As noted in the Half Year Report, this set of financial statements has been prepared in accordance with the accounting policies set out in the Annual Report for the year ended 31 March 2012 apart from the disclosure of the pension charge to the Income Statement. The net financing return and service cost on pension obligations in respect of the defined benefit pension scheme closed to future accrual is now presented as a non-underlying item.  Prior period figures have been restated on a consistent basis, the result of which was to reduce profit before taxation before non-underlying items by £215,000 for the year ended 31 March 2012.  While the total tax charge for the Group is unchanged, the comparative taxation figures in respect of non-underlying items for the previous periods have been restated accordingly. IAS 1 Presentation of Financial Statements requires presentation of a comparative balance sheet as at the beginning of the first comparative period, in some circumstances.  Management considers that this is not necessary this year because the 2012 balance sheet is the same as that previously published.

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 March 2013 or 2012, but is derived from those accounts. Statutory accounts for the year ended 31 March 2012 have been delivered to the Registrar of Companies and those for the year to 31 March 2013 will be delivered following the Company's annual general meeting. The auditors have reported on those accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain statements under section 498(2) or (3) Companies Act 2006 or equivalent preceding legislation.

A copy of the annual report for the year ended 31 March 2013 will be available at www.caffynsplc.co.uk and will be posted to shareholders by 2 July 2013.

3.             GOING CONCERN

The financial statements have been prepared on a going concern basis which the directors consider appropriate for the reasons set out below:

The Group meets its day to day working capital requirements through short-term stocking loans and bank overdraft and medium-term revolving credit facilities. The overdraft and revolving credit facilities include certain covenant tests. The failure of a covenant test would render these facilities repayable on demand at the option of the lenders.

The directors have undertaken a detailed review of trading and cash flow forecasts for a period in excess of one year from the date of this Annual Report which projects that the facility limits are not exceeded over the duration of the forecasts. These forecasts have made assumptions in respect of future trading conditions, particularly volumes and margins of new and used car sales, aftersales and operational improvements together with the timing of capital expenditure. The forecasts take into account these factors to an extent which the directors consider to be reasonable, based on the information that is available to them at the time of approval of this financial information. These forecasts indicate that the Group will be able to operate within the financing facilities that are available to it and meet the covenant tests with sufficient margin for reasonable adverse movements in expected trading conditions.

  
The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For those reasons, they continue to adopt the going concern basis in preparing the annual financial statements.

4.             CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense.  Actual results may differ from these estimates.

Except as described below, in preparing the consolidated financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 March 2012. 

5.             NON-UNDERLYING ITEMS

				2013		2012
				£'000		£'000
	Impairment of property, plant and equipment			(178)		(174)
	Net profit on disposal of property, plant and equipment			1,896		2,198
	Other income (net)			1,718		2,024
	Within operating expenses:
	Losses incurred on closed businesses			(1,067)		(1,315)
		Redundancy costs		(414)		(32)
				(1,481)		(1,347)
				237		677
	Net finance income and service cost on pension scheme			67		215
	Total non-underlying items before taxation			304		892
	Income tax expense - Tax charge on non-underlying items			(47)		(232)
	Total after tax			257		660

The following amounts have been presented as non-underlying items in these financial statements:

Property, plant and equipment have been reviewed for possible impairment in the light of economic conditions. As a result of this review the directors have decided to impair certain branch assets totalling £178,000 (2012: £174,000).

Losses incurred in the closure of businesses amounted to £1,067,000 (2012: £1,315,000). These costs include wind down expenses, recognised from the date of the announcement to close or terminate the dealer agreement with the manufacturer, and also branch specific redundancy costs which amounted to £135,000 (2012: 333,000). Dealerships affected included the closure of Ford at Alton and sale of Volvo/Ford in Hove together with the trading at Ashford, Folkestone and Tunbridge Wells following the termination notice with Vauxhall Motors in July 2011.

The Group undertook a programme of redundancies in its core business consequent to the current economic situation, resulting in non-underlying payments of £414,000 (2012: £32,000).

As stated in note 1 above, the net financing return and service cost on pension obligations in respect of the defined benefit scheme closed to future accrual is now presented as a non-underlying item. While the profit before tax for the Group is unchanged, the comparative figure in respect of non-underlying items for the previous period has been restated accordingly.

6.             FINANCE EXPENSE

		2013		2012
		£'000		£'000
	Interest payable on bank borrowings	329		436
	Vehicle stocking plan interest	370		413
	Financing costs amortised	116		142
	Preference dividends (see note 9)	102		102
	Finance expense	917		1,093
	Interest payable on bank borrowings is after capitalising interest in additions to freehold properties of £13,000 (2012: £43,000).

7.             FINANCE INCOME ON PENSION SCHEME

		2013 £'000		2012 £'000
	Defined benefit pension scheme net finance income	87		237

8.             TAXATION

				2013		2012
				£'000		£'000
	Current tax
			UK corporation tax	-		-
	Deferred tax
			Origination and reversal of temporary differences	(275)		(227)
			Adjustments recognised in the period due to change in rate of corporation tax	42		86
			Adjustments recognised in the period for deferred tax of prior periods	-		101
				(233)		(40)
		Total tax charged in the Income Statement		(233)		(40)
		The tax (charge)/credit arises as follows:
		On normal trading		(186)		136
		Non-underlying (see note 5)		(47)		(176)
				(233)		(40)

	The charge for the year can be reconciled to the profit per the Income Statement as follows:	2013		2012
		£'000		£'000
	Profit before tax	1,522		1,456
	Tax at the UK corporation tax rate of 24% (2012: 26%)	(365)		(379)
	Tax effect of expenses that are not deductible in determining taxable profit	(18)		(30)
	Change in rate of corporation tax from 24% to 23% (2012: 26% to 24%)	42		86
	Accounting depreciation/impairment for which no tax relief is due	(130)		(105)
	Difference between accounts profits and taxable profits on capital asset disposals	479		(204)
	Movement in rolled over and held over gains	(241)		491
	Adjustments to tax charge in respect of prior years	-		101
	Tax charge for the year	(233)		(40)

9.             EARNINGS PER SHARE

		The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year.  Treasury shares are treated as cancelled for the purposes of this calculation. The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares and the post-tax effect of dividends and/or interest, on the assumed conversion of all dilutive options and other dilutive potential ordinary shares.  Reconciliations of earnings and weighted average number of shares used in the calculations are set out below:
				Adjusted				Basic
				2013 £'000		2012* £'000		2013 £'000		2012 £'000
		Profit before tax		1,522		1,456		1,522		1,456
		Adjustments:
		Non-underlying items (note 5)		(304)		(892)		-		-
		Adjusted profit before tax		1,218		564		1,522		1,456
		Taxation		(186)		192		(233)		(40)
		Earnings		1,032		756		1,289		1,416
		Earnings per share		37.3p		27.2p		46.6p		51.0p
		Diluted earnings per share		36.2p		26.2p		45.2p		49.1p
*as restated
	The number of fully paid ordinary shares in circulation at the year-end was 2,767,553 (2012: 2,766,779). The weighted average shares in issue for the purposes of the earnings per share calculation were 2,766,973 (2012: 2,779,064). The shares granted under the Company's SAYE scheme are dilutive. The weighted average number of dilutive shares under option at fair value was 85,831 (2012:104,697) giving a total diluted weighted average number of shares of 2,852,804 (2012: 2,883,761).

10.           DIVIDENDS

		2013		2012
	Paid	£'000		£'000
	Preference
	6.5% Cumulative First Preference	25		25
	10% Cumulative Preference	65		65
	6.0% Cumulative Second Preference	12		12
	Included in finance expense (see note 6)	102		102
	Ordinary
	Interim dividend paid in respect of the current year of 5.0p (2012: 5.0p)	138		140
	Final dividend paid in respect of the March 2012 year end of 7.0p (2011: 5.0p)	194		195
		332		335
	Proposed
	In addition, the directors are proposing a final dividend in respect of the year ended 31 March 2013 of 7.0p per share which will absorb £194,000 of shareholders' funds (2012: 7.0p per share absorbing £194,000).  The proposed final dividend is subject to approval by shareholders at the forthcoming Annual General Meeting and has not been included as a liability in these financial statements.

11.           NOTES TO THE CASH FLOW STATEMENT

		2013 £'000		2012 £'000
	Profit before taxation	1,522		1,456
	Adjustment for net finance expense	830		856
		2,352		2,312
	Adjustments for:
	Depreciation of property, plant and equipment	916		990
	Impairment of property, plant and equipment	178		174
	Change in retirement benefit obligations	(375)		(180)
	Gain on disposal of property, plant and equipment	(1,896)		(2,198)
	Share-based payments	24		24
	Operating cash flows before movements in working capital	1,199		1,122
	(Increase)/decrease in inventories	(26)		547
	Decrease/(increase) in receivables	546		(940)
	Decrease in payables	(843)		(1,678)
	Cash generated by operations	876		(949)
	Income taxes	-		(4)
	Interest paid	(917)		(1,093)
	Net cash derived from operating activities	(41)		(2,046)

12.           POST BALANCE SHEET EVENTS

A final dividend of 7.0p per share (2012: 7.0p) has been recommended by the Directors.

An unconditional contract was exchanged on 16 May 2013 for the sale of a freehold site in Folkestone, held as an asset for sale at 31 March 2013, at a sale price of £495,000. Completion on the sale is due between 5 July 2013 and 15 August 2013 and the consideration is payable in cash.

 

END

 

 

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