Final Results
Carclo PLC
19 June 2000
Preliminary Results for the Year ended 31 March 2000
Highlights
* Significant further progress in repositioning the group has
been made with the acquisition of CTP Carrera and the
disposal of Lee Steel Strip.
* Turnover for ongoing operations was up 18% to £173 million
(1999: £147 million).
* Underlying operating profit for continuing operations was up
59% at £13.9 million (1999: £8.7 million).
* 12% increase in reported profit before tax at £6.0 million
(1999: £5.4 million).
* Underlying EPS increased by 35% to 14.9p (1999: 11.0p) which
covers the unchanged total dividend of 11.0p per share 1.4
times.
Commenting on the results, George Kennedy, Chairman said:
'Carclo benefits from exposure to high growth markets such as
mobile telephones and data communications. With new capacity
coming on stream in our second half, we are confident that these
dynamic markets will more than offset the recent deterioration in
automotive markets.
The recovery in demand for card clothing and specialist wire
products continues.
We are confident that the group has now entered a period of
growth and will benefit from its position as a leader in the
fields of technical plastics and specialist wire products.'
For further information, please contact:
Carclo plc On 19 June: 0207 253 2252
Ian Williamson, Chief Executive Thereafter: 01924 330500
Chris Mawe, Finance Director
Ludgate Communications 0207 253 2252
Richard Hews
Chairman's statement
Strategic overview
Over the past three years Carclo has repositioned itself into a
group focused on technically demanding injection moulded plastics
and specialist wire products. Further progress was made in
1999/2000 with the acquisition in April 1999 of CTP Carrera in
the USA and the disposal of Lee Steel Strip in November 1999
underlining our withdrawal from commodity steel based products.
To reflect these changes and to reinforce brand identity the
company name was changed to Carclo plc. This was approved by
shareholders at an extraordinary general meeting held on 8
November 1999.
Results
The underlying operating profits of the group increased by over
40% to £15.4 million on turnover up 8% at £191 million. This
performance reflects an impressive maiden contribution from CTP
Carrera, which contributed £4.2 million to operating profits,
growth in technical plastics and a recovery in the profitability
of our Specialist Wire businesses following significant
reorganisation last year.
In November 1999 Lee Steel Strip was sold for £20.7 million. A
£5.8 million surplus over asset value was realised; however,
goodwill of £9.6 million arising on the original acquisition of
Arthur Lee & Sons plc, which had previously been written off
against reserves, has been charged to the profit & loss account.
This reduces the reported profit before tax for the year to £6.0
million, 12% ahead of prior year, but a higher tax charge in the
year gives an EPS, when calculated in accordance with FRS3, of
4.4p compared to 6.9p in 1998/99. This tax charge is more fully
discussed in the finance director's review. Underlying EPS, which
more accurately reflects progress, has increased by 35% to 14.9p
compared to 11.0p last year.
Dividends
Your board is recommending an unchanged final dividend of 7.56p
per ordinary share, giving an unchanged dividend for the year of
11.0p per share. This dividend is covered 1.4 times by underlying
earnings per share. Subject to shareholders' approval, dividend
warrants will be posted on 14 September 2000 to shareholders on
the register at the close of business on 11 August 2000. The
shares will be traded excluding the right to the final dividend
from 7 August 2000.
Financial position
Carclo ended the year with net borrowings at £28.1 million, a
reduction of £3.6 million during the course of the year. This
represents gearing at 31 March 2000 of 39%. Carclo currently has
cash and unutilised medium term facilities totalling £71.2
million available to fund the future development of the group.
Employees, management and board structure
Henry Mutkin retired from the board on 31 December 1999. I would
like to reiterate my thanks to Henry for his guidance and support
over the years.
Barbara Richmond joined Carclo as a non executive director on 1
January 2000 and has taken over the chair of the audit committee.
We are delighted to welcome Barbara to the board.
I would also like to welcome to the board Chris Mawe who joined
as finance director on 3 September 1999. Chris was previously the
finance director of IMI Yorkshire Fittings Group. Chris is
making a significant contribution to the Carclo team.
I would like to take this opportunity to thank all those employed
by Carclo for their hard work during 1999/2000.
Share buy back
During the year your board exercised the powers conferred upon it
to purchase 1,000,000 Carclo ordinary shares in the market for
cancellation at a price of 120p per share. In addition the 10 1/2%
preference shares were redeemed at their par value of £0.6
million.
Whilst we are not looking to purchase further shares at this
time, your board will be seeking to renew the general authority
to repurchase shares at the annual general meeting.
Outlook
Carclo benefits from exposure to high growth markets such as
mobile telephones and data communications. With new capacity
coming on stream in our second half, we are confident that these
dynamic markets will more than offset the recent deterioration in
automotive markets.
The recovery in demand for card clothing and specialist wire
products continues.
We are confident that the group has now entered a period of
growth and will benefit from its position as a leader in the
fields of technical plastics and specialist wire products.
George Kennedy
19 June 2000
Chief executive's review
The transformation of Carclo into a group focused in growth
markets began in March 1997 with the acquisition of the Silleck
and Davall technical plastics companies. This transformation was
completed in the last year with our exit from mature and cyclical
steel businesses. Underlying operating profits from continuing
businesses grew by 59% in the last year justifying our confidence
in the group's strategy.
In 1996/97 our sales were £146 million. In the year just ended
the ongoing businesses we owned in 1996/97 generated sales of
just £87 million and less than half of our ongoing profits. The
sales reduction during this period has been due to:
Disposal of steel businesses
(raising £28 million cash) £36 million
Closure and rationalisation of
wire businesses £11 million
Impact of sterling on volume and prices £12 million
Total sales reduction £59 million
In this same period we have invested £52 million in four major
technical plastics acquisitions which contributed £86 million of
sales and £8 million of operating profits to last year's results.
The board has been concerned to achieve this transformation
within our existing resources. In the three years to 31 March
2000 we have paid out £18 million to shareholders in dividends;
continued to invest well in our ongoing businesses; bought back
and cancelled 12% of the equity and yet our borrowings of £28
million at 31 March 2000 were some £2 million lower than at 31
March 1997.
In common with the rest of the engineering sector in the UK, our
shares have not been a good investment over this same period -
yet paradoxically the group is in a far stronger position today
to deliver superior growth than at any time in the recent past.
Carclo Technical Plastics now represents 70% of the group. We are
one of a relatively small number of groups worldwide focused on
fine tolerance, technical injection moulded components and
assemblies. The largest of our competitors is not much more than
twice our size, and we can therefore realistically aim to be in
the top tier of global suppliers in the next two to three years.
In technical plastics we benefit from the 'new economy' growth
sectors - approximately 10% of our technical plastic sales in
1999/2000 were for mobile telephones, with a similar volume
destined for broader telecommunication markets. Growth in these
areas is very strong - our sales to the mobile telephone sector
are set to double in the coming year.
In Specialist Wire we retain strong global market positions in
card clothing and in nylon coated wires. We are benefiting from
exceptional productivity gains in the UK - compensating in part
for the strength of sterling - and are seeing good recovery
worldwide in the textile markets which we serve. These businesses
are also now returning to growth.
Opportunities for organic growth and technical development have
never been higher and these will receive priority for capital
investment and management resource. Capital expenditure will rise
this year as we respond to the opportunities available to us. We
also expect over the next couple of years to add to our
activities in the USA - and to extend our geographical footprint
in technical plastics in Europe and Asia. We have the headroom
within our existing banking facilities to finance such
acquisitions.
Technical Plastics
CTP Carrera was acquired in April 1999 and has delivered an
outstanding performance in its first year in the group. Operating
profits were £4.2 million on sales of £22.4 million. CTP Carrera
is one of the leading moulders in the USA of fine tolerance
components used in automotive, telecommunications, medical and
computer applications. We have seen very strong growth in demand
in the last year which is continuing into the present year. CTP
Carrera operates satellite manufacturing plants - located close
to major customers - controlled and technically supported from a
core operation in Latrobe, Pennsylvania. This business model has
proven to be very successful in the strong market conditions
experienced in the last year. The satellite plants have been able
to focus exclusively on maintaining high utilisation and
efficiency - delivering real utilisation in excess of 80%.
Operating so close to theoretical capacity limits is not feasible
in the long run, and to cope with continuing strong growth we are
adding new capacity in the USA. A 10 press satellite will
commence operation in the second quarter of this year, and a
further 15 press satellite is now in the planning stage for
implementation towards the end of this year should the strong
growth in demand continue.
The integration of CTP Carrera with the CTP UK operations has
gone well. We have learnt a great deal from the CTP Carrera model
and are using some of the operating principles and procedures in
the development of our UK operations. CTP Plasro is already
moulding for a CTP Carrera customer in Europe, and CTP Carrera is
supporting a CTP Coil customer in the USA. This confirms the
importance of our global capability in technical plastics.
The UK technical plastics operations delivered profits 3% ahead
of the prior year on sales up by some 9%. There was good sales
and profit growth in our automotive activities led particularly
by CTP Wipac which delivered a very strong turnaround from the
losses being incurred at acquisition in May 1998. Looking
forward, the environment for automotive components in the UK is
deteriorating. In the current year we are seeing increased
pressure on pricing combined with slower market conditions.
Product development and innovation will be the key to generating
growth in our automotive businesses. CTP Wipac is making good
progress in the development of niche lighting products and has
exciting new developments, such as the multiband antenna, in the
pipeline.
Sales and profits in teletronics were also ahead of prior year in
part due to the growth of our mobile telephone business.
The performance of the optical-medical businesses was
disappointing. In medical products we experienced an adverse Y2K
effect as customer inventories were built up ahead of the
millennium and were run down sharply in the New Year.
Performance in the final quarter was unexpectedly weak, but has
recovered strongly in the first quarter of this current year. CTP
Coil was acquired in December 1998 and is the UK leader in
plastic optics - its technology and design capability is
excellent and it has a well deserved reputation for innovative
design solutions. The company made a small profit in the first
half but in the second half production yields fell resulting in a
small loss before reorganisation costs for the full year. We have
implemented a radical reorganisation and will relocate the
business to a new factory in Slough later in the year. CTP Coil
has entered the new year trading profitably.
We are increasing capacity in the USA to cope with rapid growth.
We are also seeing strong growth in our teletronics operations
and have approved a major capacity expansion at two of our
Scottish plants. This includes construction of a new state of the
art plant modelled on the CTP Carrera concept - using identical
operating procedures and practices. These investments will
support significant volume growth over the next two years.
Specialist Wire
Profits in Specialist Wire showed a good recovery rising by 21%
on sales down by 7%. This pattern of improving profits on
declining sales is set to continue in the coming year as we
continue to exit from wire products which are not profitable at
the current level of sterling.
Our card clothing business reported a much improved performance,
particularly in the second half. The UK card clothing operations
have achieved a significant improvement in productivity allowing
us to pursue competitive pricing strategies even with the
overvalued pound. We appear to be regaining market share in a
world textile equipment market which is now recovering. Our USA
operations also performed well despite generally difficult market
conditions. The new Turkish service company established market
leadership in one of the world's leading and fast growing textile
markets. The Indian manufacturing operation commenced production
and is achieving excellent quality levels from a very low cost
base. Overall the prospects for card clothing are good.
The other specialist wire operations did well to raise
profitability in very difficult market conditions. Demand for
nylon coated wire was good but we suffered further price
deflation on this mainly export orientated business. Our wire
rope operation was boosted by rapid growth in fibre optic cable
demand. Within the UK we are the major source of the plastic
coated strength members which form the core of fibre optic cable.
Most of our wire activities are now concentrated in niches where
we have proprietary technology or very strong market positions,
although the process of rationalisation and withdrawal from low
margin products will continue during the current year.
In November 1999 we sold Lee Steel Strip to Avesta Sheffield AB
for £20.7 million. This ends our involvement in cyclical steel
businesses. In December 1999 we closed Fairbank Brearley, a
business which produced specialised machinery for road vehicle
spring manufacture. This export driven business performed poorly,
in part due to the ongoing strength of sterling and, with no
immediate prospects of recovery, we could see no alternative but
to close the operation. The product range has been licensed to a
privately owned machine tool manufacturer. The two remaining
small Precision Engineering companies are now included in the
Specialist Wire division. Both had a satisfactory year with sales
and profits moving ahead of the previous year.
Ian Williamson
19 June 2000
Finance director's review
2000 1999
£000 £000
Turnover (continuing) 173,340 147,350
Divisional operating profit 15,126 9,971
Central costs (1,179) (1,226)
-------- -------
Underlying operating profit from continuing
operations 13,947 8,745
Underlying divisional operating margin 8.7% 6.8%
Underlying earnings per share 14.9p 11.0p
Profits
Underlying operating profit from continuing operations grew
strongly to £13.9 million from £8.7 million in 1998/99
representing an increase of 59%.
Profit before tax was £15.6 million before charging £9.6 million
of goodwill reinstated from reserves on the disposal of Lee Steel
Strip. This represents an increase of £10.3 million.
The group continued to invest in reorganisation and
rationalisation, partly as a result of the continued strength of
sterling, accordingly £1.2 million was expended in the period.
During the year we disposed of our Lee Steel Strip operation and
closed Fairbank Brearley. Together these are classified as
discontinued operations in the profit & loss account. The Lee
Steel Strip disposal also resulted in a book profit of £5.8
million. Current accounting standards, however, require us to
reinstate to the profit and loss account goodwill, which had been
previously written off directly to reserves on the original
acquisition of the business. For Lee Steel Strip this amounted
to £9.6 million and is shown separately on the face of the profit
and loss account.
In 1998/99 we reported a £4 million charge against the withdrawal
from flat wire production at Lee Smith Wires and the closure of
its Halifax manufacturing satellite. As anticipated further costs
were incurred in the current year, which along with the closure
costs associated with Fairbank Brearley amounted to £0.5 million.
Net interest payable in the period increased by £1 million, due
primarily to higher borrowings between April 1999 and mid
November 1999 when the group owned both CTP Carrera and Lee Steel
Strip. Excluding goodwill amortisation, the net interest charge
was covered 5.1 times by underlying operating profit (1999: 5.5
times).
Taxation
Taxation increased in the period to £3.5 million from £1.3
million in 1998/99 reflecting the strong rise in underlying
taxable profits. The tax rate on underlying group profits in the
year rose modestly to 35% (1999: 33%) reflecting a higher
proportion of profits generated in the United States.
The sale of Lee Steel Strip resulted in a taxable capital gain
which has been offset against other capital losses and no tax
should become payable on the transaction. However, the taxation
treatment of gains and losses does not mirror those used for the
preparation of accounts using generally accepted accounting
principles. Because of this, a net £3.9 million charge,
representing the excess of goodwill reinstated to the profit and
loss account for Lee Steel Strip over the book gains, does not
attract tax relief against operating income. Accordingly the
aggregate group tax rate appears artificially high at 58.1%.
Segmental analysis
The group has previously reported its results in three divisions.
As Lee Steel Strip made up the bulk of the Precision Engineering
division the results of the remaining smaller engineering
companies have been reported as part of the Specialist Wire
division.
The majority of the group's turnover also previously originated
in the United Kingdom. The acquisition of CTP Carrera has changed
this profile and we have therefore disclosed an analysis of the
results by geographical origin.
Earnings per share
Underlying earnings per share have increased by 35% to 14.9p. The
effect of corporate activity and share buy backs on the
underlying EPS growth is analysed below:
%
Underlying EPS 1998/99 11.0p
Increase due to share repurchase 0.6p 5%
Lee Steel Strip disposal (1.8p) (16%)
CTP Carrera acquisition 3.9p 35%
Organic growth 1.2p 11%
------ ------
Underlying EPS 1999/2000 14.9p 35%
Employee numbers
Employee numbers at the beginning of the period were 3,349.
Reorganisation resulted in a reduction in employee numbers of
around 100. Disposals and closures reduced numbers by a further
234 and 223 new employees joined the group with CTP Carrera.
This, along with the normal fluctuation in employment, brought
the total employed by the group at the year end to 3,223.
Banking
At 31 March 2000, in addition to subsidiary company overdraft
facilities, the company had assured medium term facilities with
our 4 UK relationship banks amounting to £64.8 million. The
company has $35 million of fixed rate indebtedness secured under
a United States Private Placement (USPP) the proceeds of which
have been used to hedge overseas currency assets or swapped into
sterling. Maturity of the USPP ranges between 2006 and 2010 with
medium term facilities coming up for renewal between 2001 and
2010.
Cash flow & gearing
The group generated operating cash flows in the year of £18.9
million after investing £4.3 million in additional working
capital. Taxation and interest payments amounted to £6.0 million
and capital expenditure (not including the purchase of the CTP
Carrera land and buildings) amounted to £7.2 million or 76% of
depreciation (1999: 104%). The dividend payment was £6.2 million.
The group has undertaken two major corporate transactions in the
year, purchasing Carrera Corporation in the USA in April and then
subsequently disposing of Lee Steel Strip in November. Carrera
Corporation was acquired for an initial consideration of £15.3
million, including costs, satisfied by £13.8 million in cash and
£1.5 million in shares. Deferred consideration of £5.6 million
will become payable in instalments of £3.9 million in June 2000
and £1.7 million in June 2001 if full performance conditions are
met. In addition, the group purchased the CTP Carrera land and
buildings during 1999 amounting to £2.7 million. Total
consideration will therefore amount to £23.6 million. In November
1999 the group disposed of Lee Steel Strip for net proceeds of
£21.7 million. The effect of these two transactions gave rise to
a £5.3 million cash inflow. A further limited share buy back of 1
million ordinary shares at a cost of £1.2 million was undertaken
in the year with £0.6 million used to redeem the 1999 10 1/2%
cumulative preference shares at par. Net debt at the period end
reduced by £3.6 million to £28.1 million, representing gearing of
39% (1999: 47%).
Foreign Currency
The group adopts a strategy of hedging its overseas-denominated
assets with corresponding borrowing. At the balance sheet date,
100% of the group's foreign currency net assets, excluding
goodwill previously written off, was covered by currency
borrowings. The re-translation of net assets denominated in
foreign currencies at the balance sheet date has therefore not
had a material affect on the net assets of the group. We do not
hedge the operational results arising at our overseas
subsidiaries. A growing proportion of the group's operating
profits and cash flows are now generated in the United States and
therefore the re-translation of overseas subsidiary results into
sterling can impact the profit in future periods.
Dividends and shareholders' funds
The board is recommending a final dividend payment of 7.56 pence
per share. This is unchanged on last year. The total dividend for
the year amounts to 11.0p (1999: 11.0p). The dividend is covered
2.0 times by post tax profits before the reinstatement of 9.6m of
goodwill from reserves (1999: 0.7 times).
Shareholders' funds increased from £67.3 million to £72.9
million. This included the issue of new share capital of £1.6
million; a £0.2 million loss on foreign currency investments and
a share repurchase of £1.8 million.
New accounting standards
Two new accounting standards, FRS 15 (Tangible Fixed Assets) and
FRS 16 (Current Tax) have been introduced in the year. The impact
of the standards has not resulted in any material changes to the
accounting policies of the group.
Year 2000 compliance
We are pleased to report that all of our mainstream computer
systems proved to be millennium compliant.
Chris Mawe
19 June 2000
CONSOLIDATED PROFIT AND LOSS ACCOUNT
YEAR ENDED 31 MARCH
2000 1999
£'000 £'000
---------------------------------------------------------------------
Turnover
Continuing operations: ongoing 150,919 147,350
acquisitions 22,421 -
Discontinued operations 17,953 30,203
-------- --------
191,293 177,553
-------- --------
Operating profit
Continuing operations: ongoing
- before rationalisation costs 9,719 8,745
- rationalisation costs (1,226) (1,161)
-------- --------
- after rationalisation costs 8,493 7,584
acquisitions 4,228 -
Discontinued operations 1,447 2,085
-------- --------
14,168 9,669
Goodwill amortisation (748) (103)
-------- --------
Operating profit 13,420 9,566
-------- --------
Continuing operations: ongoing 8,196 7,481
acquisitions 3,777 -
Discontinued operations 1,447 2,085
-------- --------
Operating profit 13,420 9,566
-------- --------
Disposal of subsidiary undertaking
- surplus of proceeds over assets 5,753 -
- goodwill previously written off to reserves (9,628) -
-------- --------
(3,875) -
Loss on termination of operations (538) (4,044)
Profit on sale of properties - 1,812
-------- --------
Profit before interest 9,007 7,334
Net interest payable 3,012 1,962
-------- --------
Profit on ordinary activities before taxation 5,995 5,372
Taxation 3,484 1,269
-------- --------
Profit on ordinary activities after taxation 2,511 4,103
Preference dividends (non equity) 32 64
-------- --------
Profit attributable to ordinary shareholders 2,479 4,039
Ordinary dividends 6,016 6,181
-------- --------
Deficit for the year (3,537) (2,142)
======== ========
Earnings per ordinary share
Basic and fully diluted 4.4p 6.9p
Underlying 14.9p 11.0p
-------- --------
Dividend per ordinary share 11.0p 11.0p
-------- --------
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH
2000 1999
£'000 £'000 £'000 £'000
---------------------------------------------------------------------
Fixed assets
Intangible assets 20,008 5,837
Tangible assets 57,918 63,898
Investments 1,072 187
------ ------
78,998 69,922
Current assets
Stocks 19,884 23,918
Debtors 40,332 39,193
Pensions prepayment due after
more than one year 11,106 10,947
Cash at bank and in hand 11,672 11,529
------ ------
82,994 85,587
------ ------
Creditors - amounts falling due within one
year
Bank loans and overdrafts 8,935 14,795
Trade and other creditors 35,175 31,144
Taxation 1,031 1,023
Dividends 6,016 6,214
------ ------
51,157 53,176
------ ------
Net current assets 31,837 32,411
------- -------
Total assets less current liabilities 110,835 102,333
Creditors - amounts falling due after more
than one year 32,051 27,584
Provisions for liabilities and charges 5,890 7,465
------- -------
Total net assets 72,894 67,284
======= =======
Capital and reserves
Called up share capital 2,788 3,380
Share premium 41,722 40,236
Revaluation reserve 2,080 2,215
Other reserves 1,134 476
Profit and loss account 25,170 20,977
------- -------
Shareholders' funds 72,894 67,284
======= =======
Equity interests 72,894 66,676
Non equity interests - 608
CASH FLOW STATEMENT
YEAR ENDED 31 MARCH
2000 1999
£'000 £'000
----------------------------------------------------------------------
Cashflow from operating activities 18,908 18,692
Returns on investments and servicing of finance (3,059) (1,670)
Taxation (2,937) (4,168)
Capital expenditure and financial investment (9,565) (4,609)
Acquisitions and disposals 10,318 (10,272)
Equity dividends paid (6,183) (4,655)
------- -------
Cash inflow/(outflow) before use of liquid
resources and funding 7,482 (6,682)
Financing
Issue of shares - 22
Repurchase of own shares (1,817) (7,197)
Increase in debt 1,254 8,320
Capital element of finance lease rentals (994) (715)
------- -------
Increase/(decrease) in cash in period 5,925 (6,252)
======= =======
Reconciliation of net cash flow to movement in net debt
Increase/(decrease) in cash in period 5,925 (6,252)
Cash inflow from increase in debt and lease financing (260) (7,605)
------- -------
Change in net debt resulting from cash flows 5,665 (13,857)
Exchange movement 336 103
Loans and finance leases acquired with subsidiary
undertaking (2,367) (1,695)
------- -------
Movement in net debt in period 3,634 (15,449)
Net debt at beginning of period (31,749) (16,300)
------- -------
Net debt at end of period (28,115) (31,749)
======= =======
TURNOVER, OPERATING PROFIT AND NET ASSETS EMPLOYED
YEAR ENDED 31 MARCH
2000
Operating Net
Turnover profit assets
£'000 £'000 £'000
---------------------------------------------------------------------
By class of business
Continuing operations
Technical plastics division 94,152 6,772 37,303
Specialist wire division 56,767 4,166 35,962
------- ------- -------
150,919 10,938 73,265
Rationalisation costs (note 1) (1,226)
------- ------- -------
150,919 9,712 73,265
Acquisitions - Technical Plastics
division 22,421 4,228 4,359
Discontinued (Note 2) 17,953 1,447 -
-------
77,624
Unallocated assets (Note 3) (4,730)
------- -------
191,293 72,894
------- ------- -------
Divisional operating profit 15,387
Central administration costs (1,179)
Pension cost - regular cost (2,590)
- credit in respect
of surplus 2,550
Goodwill amortisation (748)
-------
Group operating profit 13,420
=======
By geographical area
Continuing operations
United Kingdom 134,811 10,554 67,058
United States of America 6,293 586 3,218
Rest of World 9,815 (202) 2,989
------- ------- -------
150,919 10,938 73,265
Rationalisation costs (note 1) (1,226)
------- ------- -------
150,919 9,712 73,265
Acquisitions - United States of America 22,421 4,228 4,359
Disposals - United Kingdom 17,953 1,447 -
-------
77,624
Unallocated assets (Note 3) (4,730)
------- -------
191,293 72,894
------- ------- -------
Divisional operating profit 15,387
Central administration costs (1,179)
Pension cost - regular cost (2,590)
- credit in respect of surplus 2,550
Goodwill amortisation (748)
-------
Group operating profit 13,420
=======
Geographical segment - by destination
United Kingdom 100,708
Rest of Europe 33,470
Rest of World 57,115
-------
191,293
=======
1999
Operating Net
Turnover profit assets
£'000 £'000 £'000
---------------------------------------------------------------------
By class of business
Continuing operations
Technical plastics division 86,617 6,559 36,964
Specialist wire division 60,733 3,442 37,950
------- ------- -------
147,350 10,001 74,914
Rationalisation costs (note 1) (1,161)
------- ------- -------
147,350 8,840 74,914
Acquisitions - Technical Plastics
division - - -
Discontinued (Note 2) 30,203 2,085 13,711
-------
88,625
Unallocated assets (Note 3) (21,341)
------- -------
177,553 67,284
------- ------- -------
Divisional operating profit 10,925
Central administration costs (1,226)
Pension cost - regular cost (2,562)
- credit in respect of surplus 2,532
Goodwill amortisation (103)
-------
Group operating profit 9,566
=======
By geographical area
Continuing operations
United Kingdom 131,494 10,075 68,299
United States of America 5,759 439 3,019
Rest of World 10,097 (513) 3,596
------- ------- -------
147,350 10,001 74,914
Rationalisation costs (note 1) (1,161)
------- ------- -------
147,350 8,840 74,914
Acquisitions - United States of America - - -
Disposals - United Kingdom 30,203 2,085 13,711
-------
88,625
Unallocated assets (Note 3) (21,341)
-------
177,553 67,284
------- ------- -------
Divisional operating profit 10,925
Central administration costs (1,226)
Pension cost - regular cost (2,562)
- credit in respect of surplus 2,532
Goodwill amortisation (103)
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Group operating profit 9,566
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Geographical segment - by destination
United Kingdom 107,233
Rest of Europe 36,110
Rest of World 34,210
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177,553
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Notes
1. The rationalisation costs in the year relate to both divisions
and were principally employee costs in nature.
2. The discontinued businesses were formerly in the Precision
Engineering division
3. Unallocated net liabilities include interest bearing assets
and liabilities, investments, taxation balances, capitalised
goodwill and head office net assets.