Final Results

RNS Number : 4492F

Leeds Group PLC

28 July 2016

 

 

Leeds Group plc

("Leeds Group" or the "Group")

 

Financial Highlights

q Leeds Group profit before tax was £1,507,000 (2015: £1,571,000).

q Aggregate sales volumes of our two business sectors increased to 16.0 million metres (2015: 15.8 million metres).

q Leeds Group sales revenue increased by 4.1% to £36,272,000 (2015: £34,859,000).

q Hemmers sales were £32,775,000 (2015: £31,151,000) and pre-tax profit was £1,309,000 (2015: £1,443,000).

q Hemmers results in Euros were: sales up 8.7% to €44,295,000 (2015: €40,735,000). PBT was affected by the bankruptcy of a major customer late in the year and was down 8.9% to €1,705,000 (2015: €1,871,000).

q ChinohTex external sales were £3,497,000 (2015: £3,708,000) and pre-tax profit was £267,000 (2015: £305,000).

q In the first full year since the acquisition of a 50% interest in textile retailer Stoff-Ideen-KMR GmbH, the Leeds Group share of post-tax profit was £51,000.

q Capital expenditure in the year was £4,156,000 (2015: £298,000) principally on the acquisition and extension of the German warehouse and office facility.

q Leeds Group finished the year with bank debt, net of cash, of £2,646,000 (2015: net cash £596,000).

q Leeds Group net asset value per share (excluding treasury shares) was 56.5 pence (2015: 50.2 pence).

q Earnings per Leeds Group share were 3.8 pence (2015:  3.8 p).

q In view of the capital expenditure in the year and the continuing need to finance growth plans, as last year the Directors do not propose a dividend.

Enquiries:
Leeds Group plc	Cairn Financial Advisers LLP
Jan Holmstrom, Chairman  Tel: [phone]	Tony Rawlinson Tel: [phone]
Malcolm Wilson, Company Secretary Tel: [phone]	Liam Murray      Tel: [phone]

Chairman's Statement

I am pleased to present the results for the year ended 31 May 2016.

Results

In the year ended 31 May 2016 Leeds Group made a profit after tax of £1,039,000 (2015: £1,053,000).  Pre-tax profit fell by 4.1% to £1,507,000 (2015: £1,571,000), and was affected close to the year-end by the bankruptcy of a major German customer which was partially offset by credit insurance. Despite this setback, pre-tax profit finished slightly ahead of our budget for the year and close to last year's level.

Net assets at 31 May 2016 increased to £15,512,000 (2015: £13,822,000) and the value per share was 56.5p (2015: 50.2p). Earnings per share for the year were 3.8p (2015: 3.8p). Following capital expenditure of £4,156,000 in the year (2015: £298,000), chiefly on the acquisition and extension of the German warehouse and office facility, the Group closed the year with net bank debt of £2,646,000 (2015: net cash £596,000).

Hemmers-Itex Textil Import Export GmbH ("Hemmers")

Total fabric sales in the year by Hemmers, Leeds Group's principal trading company, increased modestly by 1.0% to 13.789 million linear metres (2015: 13.633 million). Revenue in Euro terms increased by 8.8%, reflecting the sales price increases that were necessary to preserve margins in the face of the depreciation of the Euro against the US dollar. Pre-tax profit in Euro terms was €1,705,000 (2015: €1,871,000) and was affected by the bankruptcy of a significant customer referred to above.

In sterling terms, revenue was £32,775,000 (2015: £31,151,000) and pre-tax profit was £1,309,000 (2015: £1,443,000).

During the year Hemmers invested heavily in purchasing and extending the warehouse and office facility in Nordhorn at a cost to date of approximately €5,000,000 (£3,700,000). The entire project comprising warehousing, office space and an enlarged sales area is very close to completion.

In December 2014 Hemmers acquired a 50% interest in Stoff-Ideen-KMR GmbH ("KMR"), a chain of 14 retail fabric and haberdashery stores. KMR has now relocated to the Hemmers facility and now rents a portion of the new warehouse extension, enabling both businesses to improve inventory management. In this, the first full year of our investment in KMR, the business has continued to source a significant proportion of its stock purchases from Hemmers, and has grown with the opening of two new stores in Saarbrücken and Bamberg, with further new stores planned to open in the next few months.

Chinoh-Tex, the Hemmers subsidiary based in Shanghai, achieved external sales revenue of £3,497,000 (2015: £3,708,000) and pre-tax profit of £267,000 (2015: £305,000). Some European customers previously dealing with Chinoh-Tex bought from Hemmers this year, but Chinoh-Tex maintained its sales volume by developing sales in China and other far eastern markets. Though small, ChinohTex continues to provide valuable assistance to its European parent in terms of purchasing, quality inspection and bulk shipping of material bought in China.

Dividend

Leeds Group has made a significant investment in KMR, and in the purchase and expansion of the Nordhorn facility, where a further £1,000,000 is committed to complete the project in the current financial year. Therefore, as last year, the Directors do not propose a dividend. In the opinion of the Board, this maximises the long-term value of the Group to the benefit of all shareholders.

Employees

On behalf of shareholders, I thank the management and staff of Hemmers and ChinohTex for their continued hard work and commitment that has produced such a highly satisfactory result.

Outlook

We continue to believe potential growth opportunities exist for Hemmers in their traditional wholesale business, and that even greater potential exists in the retail business in which we have invested more recently. We continue to monitor possibilities to accelerate this growth potential by way of acquisition.

At this early point in the current financial year, sales have been in line with the expectations of the Board.

Jan G Holmstrom

Chairman

27 July 2016

Strategic Report

Business review

The Companies Act 2006 requires the directors to set out in this report a fair review of the business of the Group during the year ended 31 May 2016, including an analysis of the position of the Group at the end of the year and a description of the principal risks and uncertainties facing the Group. This information includes a discussion of the Key Performance Indicators used by the directors to monitor the business which are:

·      Sales volumes and revenue	·     profit before tax
·      gross profit margin	·     earnings per share
·      operating overheads and central costs	·     working capital levels

Group result

      Group revenue in the year was £36,272,000 (2015: £34,859,000), and pre-tax profit was £1,507,000 (2015: £1,571,000). Although sterling at 31 May 2016 was 6.2% weaker against the Euro than had been the case a year earlier, its average rate for the year as a whole was stronger by 3.6%.  Group revenue and pre-tax profit would have been greater by £871,000 and £43,000 respectively had the results of overseas subsidiaries been translated at last year's average rates.

Profitability in Hemmers was adversely affected by the bankruptcy late in the year of a major customer, which was covered in part by credit insurance.

The average value of the Euro throughout the year was USD 1.105 (2015: USD 1.351). A weaker Euro increases the Euro cost of stock invoiced in US Dollars but this transaction effect was not significant; margins were close to their 2015 level by the combined effects of the stockholding period, forward exchange contracts and sales price increases.

The parent company has granted a loan denominated in Euros to its subsidiary Hemmers and, as sterling depreciated sharply at the end of the financial year, an unrealised gain arose of £100,000 (2015: unrealised loss £253,000).

The tax charge in the year was £468,000 net of a deferred tax credit of £28,000 relating to temporary differences on financial derivatives. Earnings per share were unchanged from 2015 at 3.8p.

Hemmers Europe

This German-based business is engaged in the import, warehousing and wholesaling of fabrics.

Sales volumes increased in the year by 1% to 13.789 million linear metres (2015: 13.633 million) while sales revenue rose by 8.8% to €44,309,000 (2015: €40,735,000), with the growth achieved predominantly in the German home market.

As mentioned above, despite the weakness of the Euro gross margins were little changed at 21.5% (2015: 22.2%).  Overhead expenditure in local currency (excluding the charge for bad and doubtful debts) increased by 6.5% as a result of the modest sales volume increases and cost inflation.

Pre-tax profit for the year was €1,705,000 (2015: €1,871,000) with the profitability from continued sales growth proving insufficient to compensate for the need to provide against receivables due from a large customer entering bankruptcy. Administrators have been appointed and are seeking to achieve asset sales and a financial reconstruction but a conservative 100% provision was considered appropriate.

In December 2014 Hemmers acquired a 50% interest in Stoff-Ideen-KMR GmbH ("KMR"), a chain of retail fabric and haberdashery stores, at a cost of €500,000 (£383,000). KMR is operated as a joint venture and in May 2015 each of the two joint venture partners subscribed for additional capital of €250,000 (£192,000) bringing the total investment by Hemmers to €750,000 (£575,000). The Group's share of the post-tax income of KMR in the year was £51,000 (5 months to 31 May 2015: £13,000).

During the year Hemmers purchased the warehouse and offices it had leased for the previous ten years for €2,700,000. Having already constructed a freehold extension in 2008, construction of a further extension to provide additional warehousing and office space was begun in the year at budgeted cost of €3,000,000 (£2,300,000). We had planned to complete this project by 31 May 2016, but building work was suspended for a while in the autumn owing to excessively wet conditions. At the date of this report, full occupation of warehouse and offices is imminent. Part of the extension will be leased to KMR, and neither KMR nor Hemmers will now need to continue to rent warehousing outside the Nordhorn facility.

The final phase of the warehouse extension will increase the total size of the facility to approximately 17,000 square metres and will be completed early in the current year with the purchase and installation of additional machinery to increase our capacity to meet the customer requirement to double-fold our fabrics before sale. This will eliminate the need to outsource this work and so reduce cost.

Largely as a result of this investment programme, the Hemmers bank debt, net of cash, increased in the year to £3,647,000 (2015: £1,077,000). This bank debt is secured on the assets of Hemmers.

Hemmers China

Chinoh-Tex is a textile trading subsidiary of Hemmers. It is based in Shanghai and has been trading for eight years. It purchases fabric from Chinese suppliers and in 2016 sold to customers in 31 countries. External sales increased marginally in the year to 2.202 million linear metres (2015: 2.191 million). 40% of sales were made to EU countries (2015: 60%) with the reduction caused chiefly by certain European customers being supplied from Hemmers rather than from Chinoh-Tex, who compensated for this by increasing sales in China to £597,000 (2015: £103,000) with significant growth also in Viet Nam.

External sales revenue fell by 5.7% to £3,497,000 (2015: £3,708,000) reflecting the changes to product and market mix, and gross margin fell slightly to 21.5% (2015: 22.0%). Overhead spending was reduced by 5.5% to £484,000 (2015: £512,000) and pre-tax profit amounted to £267,000 (2015: £305,000).

Importantly, ChinohTex continues to give valuable assistance to its European parent with the purchasing, inspection and shipping of material.

Holding Companies' Costs

The holding companies generated net income in the year as follows:

	Year ended 31 May 2016   £000	Year ended 31 May 2015 £000
Holding companies' costs net of interest receivable	(73)	(42)
Unrealised exchange gain/(loss) on Group loan	100	(253)
Net holding companies' income/(costs)	27	(295)

The voluntary liquidation of the CLG Holding BV, the Dutch holding company, was completed in the year.

Fixed Assets

Capital additions in the year amounted to £4,156,000 (2015: 298,000) and included expenditure of £3,697,000 in respect of the purchase and extension of the warehouse and office facility in Nordhorn. The net book amount of tangible fixed assets in the Consolidated Statement of Financial Position is £5,864,000 (2015: £1,760,000). A further £1,000,000 has been authorised and committed to complete the Nordhorn project in the current year.

Working Capital

Working capital comprises inventories, trade and other receivables, and trade and other payables and increased in the year by just £127,000 (2015: £555,000). The directors anticipate that working capital will now rise to its annual peak over the next few months.

Net Asset Value

Net assets increased in the year by £1,690,000 as follows:

	Net assets £000	Per share pence
At 31 May 2015	13,822	50.2
Profit after tax	1,039	3.8
Purchase of own shares for treasury (cost)	(42)	(0.2)
Purchase of own shares for treasury (reduced denominator)	-	0.2
Translation differences	693	2.5
At 31 May 2016	15,512	56.5

Debt Profile

The funding policy of the Group continues to be to match its funding requirement in trading subsidiaries in a cost-effective fashion with an appropriate combination of short and longer-term debt. The warehouse constructed in 2008 in Germany is financed by a 20-year loan at a fixed interest rate of 4.07%.  Property investments in the year have been financed partly from cash generated in the year, but principally from loans at fixed interest rates between 1.65% and 3.4%. Working capital finance, when required, is via short term loans of three months currently attracting interest at approximately 1.4%.

Bank debt in the subsidiaries is secured by charges on inventories, receivables and property and is without recourse to the Parent Company.

Principal risks and uncertainties

Following the UK referendum result in favour of leaving the European Union ("EU"), the economic environment has become much more uncertain. However, the business of Leeds Group is conducted entirely by subsidiaries incorporated in Germany or China, and their exports to the UK account for approximately 4% of Group revenue. For this reason, the Directors do not believe that a material risk to Leeds Group will arise from the terms on which the UK will, in the future, have access to EU markets, and vice versa.

Of greater risk is the possibility of reduced demand owing to falling consumer confidence, although the business has proved robust in earlier recessions with some evidence that reduced consumer spending on ready-made apparel or furnishings generates increased demand for Hemmers fabrics that customers use to make equivalent goods in the home.

The currency markets in particular dislike the current air of uncertainty, and sterling immediately lost ground on news of the referendum result. This benefits Leeds Group since, as the pound weakens, the value of the revenues, profits and net assets of foreign subsidiaries is increased in sterling terms.

Leeds Group subsidiaries purchase the majority of their fabrics in US dollars, while the Euro is the principal currency in which Hemmers Europe sells its product. Thus the Euro/dollar rate is of greater significance to Leeds Group than the strength of sterling. Since the referendum result the Euro has not depreciated against the US dollar to a material extent, and at the date of this report is actually stronger than in the winter months of the financial year just ended. We shall continue to manage this transactional currency risk by a combination of forward exchange contracts with reputable banks and sales price increases where necessary.

Fire risk is mitigated by insurance, including consequential loss insurance to cover the loss of business opportunity while replacement stocks are obtained. There is an adequate disaster recovery programme in place with regard to essential computer systems. The commercial risks of operating in the highly competitive European fabric market are limited by the fact that Hemmers has a wide range of suppliers, and no customer accounts for more than 5% of revenues. The Directors therefore consider the principal operating risks of operating in this market to be credit risk, market risk in the form of fair value or cash flow interest rate risk, or foreign exchange risk.

Jan G Holmstrom

Chairman

27 July 2016

Consolidated Statement of Comprehensive Income

for the year ended 31 May 2016

	Year ended 31 May 2016   £000	Year ended 31 May 2015   £000
Revenue	36,272	34,859
Cost of sales	(28,563)	(27,066)
Gross profit	7,709	7,793
Distribution costs	(2,216)	(2,316)
Administrative expenses	(3,949)	(3,855)
Profit from operations	1,544	1,622
Finance expense	(92)	(71)
Finance income	4	7
Share of post-tax profit of joint venture	51	13
Profit before tax	1,507	1,571
Tax expense	(468)	(518)
Profit for the year attributable to the equity holders of the Parent Company	1,039	1,053
Other comprehensive income
Translation differences on foreign operations	693	(1,215)
Other comprehensive income for the year	693	(1,215)
Total comprehensive income for the year attributable to the equity holders of the Parent Company	1,732	(162)

The results shown in the consolidated statement of comprehensive income derive wholly from continuing operations. There is no tax effect relating to other comprehensive income for the year.

Amounts included in other comprehensive income may be reclassified subsequently as profit or loss.

 

 

Earnings per share attributable to

the equity holders of the Company

	Note	Year ended 31 May 2016	Year ended 31 May 2015
Basic and diluted earnings per share (pence)	3	3.8p	3.8p

Consolidated Statement of Financial Position

at 31 May 2016

Company number 00067863	31 May 2016 £000	31 May 2015 £000
Assets
Non-current assets
Property, plant and equipment	5,864	1,760
Goodwill	855	802
Investment in joint venture	640	553
Total non-current assets	7,359	3,115
Current assets
Inventories	7,765	7,258
Trade and other receivables	5,779	6,000
Derivative financial asset	-	59
Cash and cash equivalents	1,612	2,027
Total current assets	15,156	15,344
Total assets	22,515	18,459
Liabilities
Non-current liabilities
Loans and borrowings	(3,843)	(665)
Deferred tax	(230)	(244)
Total non-current liabilities	(4,073)	(909)
Current liabilities
Trade and other payables	(2,283)	(2,666)
Loans and borrowings	(415)	(766)
Derivative financial liability	(40)	-
Corporation tax liability	(192)	(296)
Total current liabilities	(2,930)	(3,728)
Total liabilities	(7,003)	(4,637)
TOTAL NET ASSETS	15,512	13,822

Capital and reserves attributable to equity holders of the Company
Share capital	3,792	3,792
Capital redemption reserve	600	600
Treasury share reserve	(767)	(725)
Foreign exchange reserve	642	(51)
Retained earnings	11,245	10,206
TOTAL EQUITY	15,512	13,822

The financial statements were approved and authorised for issue by the Board of directors on 27 July 2016 and were signed on behalf of the Board by:-

Jan G Holmstrom

Chairman

Consolidated Cash Flow Statement

for the year ended 31 May 2016

	Year ended 31 May 2016   £000	Year ended 31 May 2015   £000
Cash flows from operating activities
Profit for the year	1,039	1,053
Adjustments for:
Depreciation	300	226
Finance expense	92	71
Finance income	(4)	(7)
Movement in derivative financial asset	99	(63)
Loss on sale of property, plant and equipment	1	2
Share of post-tax profit of joint venture	(51)	(13)
Income tax expense	468	518
Cash flows from operating activities before changes in working capital and provisions	1,944	1,787
Increase in inventories	(44)	(1,063)
Decrease/(increase) in trade and other receivables	538	(495)
(Decrease)/(increase) in trade and other payables	(621)	1,003
Cash generated from operating activities	1,817	1,232
Income taxes paid	(613)	(679)
Net cash flows from operating activities	1,204	553
Investing activities
Purchase of property, plant and equipment	(4,156)	(298)
Sale of property, plant and equipment	-	-
Investment in joint venture	-	(575)
Bank interest received	4	7
Net cash used in investing activities	(4,152)	(866)
Financing activities
Purchase of treasury shares	(42)	(44)
Bank borrowings drawn down	2,640	717
Bank interest paid	(92)	(71)
Net cash generated in financing activities	2,506	602
Net (decrease)/increase in cash and cash equivalents	(442)	289
Translation gain/(loss) on cash and cash equivalents	27	(34)
Cash and cash equivalents at the beginning of the year	2,027	1,772
Cash and cash equivalents at the end of the year	1,612	2,027

Consolidated Statement of Changes in Equity

for the year ended 31 May 2016

	Share capital £000	Capital redemption reserve £000	Treasury share reserve £000	Foreign exchange reserve         £000	Retained earnings £000	Total equity £000
At 31 May 2014	3,792	600	(681)	1,164	9,153	14,028
Profit for the year	-	-	-	-	1,053	1,053
Other comprehensive income	-	-	-	(1,215)	-	(1,215)
Total comprehensive income	-	-	-	(1,215)	1,053	(162)
Transaction with Shareholders: Purchase of treasury shares	-	-	(44)	-	-	(44)
At 31 May 2015	3,792	600	(725)	(51)	10,206	13,822
Profit for the year	-	-	-	-	1,039	1,039
Other comprehensive income	-	-	-	693	-	693
Total comprehensive income	-	-	-	693	1,039	1,732
Transaction with Shareholders: Purchase of treasury shares	-	-	(42)	-	-	(42)
At 31 May 2016	3,792	600	(767)	642	11,245	15,512

The following describes the nature and purpose of each reserve within equity:

Reserve	Description and purpose
Share capital	The nominal value of issued ordinary shares in the Company.
Capital redemption reserve	Amounts transferred from share capital on redemption of issued shares.
Treasury share reserve	Cost of own shares held in treasury.
Foreign exchange reserve	Gains/losses arising on retranslation of the net assets of overseas operations into sterling.
Retained earnings	Cumulative net gains/losses recognised in the consolidated statement of comprehensive income after deducting the cost of cancelled treasury shares.

Leeds Group plc

Preliminary Results

Notes

1.            This preliminary announcement has been prepared using the recognition and measurement principles of IFRS as adopted by the European Union.

2.            The Directors do not recommend the payment of a dividend.

3.             Earnings per share

Since there are no outstanding share options, there is no difference between basic and diluted earnings per share.	Year ended 31 May 2016	Year ended 31 May 2015
Numerator
Profit for the year from continuing operations, being the earnings used in earnings per share	£1,039,000	£1,053,000
Denominator
Weighted average number of shares used in earnings per share (excluding treasury shares)	27,506,459	27,583,006
Basic and diluted earnings per share	3.8p	3.8p

4.               The financial information set out above does not constitute the company's statutory accounts for 2016 or 2015.

Statutory accounts for the years ended 31 May 2016 and 31 May 2015 have been reported on by the Independent Auditors. 

The Independent Auditors' Report on the Annual Report and Financial Statements for both 2016 and 2015 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

5.               Statutory accounts for the year ended 31 May 2015 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 May 2016 will be delivered to the Registrar in due course. The Annual Report, giving notice of the Annual General Meeting, will be sent to shareholders shortly.  Further copies will be available from the Company's Registered Office, Old Mills, Whitehall Grove, Drighlington, Bradford, BD11 1BY or from the Group's website, www.leedsgroup.plc.uk

6.              Segmental information

						IFRS adjustments
Year ended 31 May 2016	Hemmers Europe       £000	Hemmers China £000	Inter segmental £000	Total Hemmers £000	Holding companies £000	Financial derivatives £000	Goodwill         £000	Group total £000
External revenue	32,775	3,497	-	36,272	-	-	-	36,272
Inter-segmental revenue	10	622	(632)	-	-	-	-	-
Cost of sales	(25,731)	(3,368)	635	(28,464)	-	(99)	-	(28,563)
Gross profit	7,054	751	3	7,808	-	(99)	-	7,709
Distribution costs	(1,964)	(252)	-	(2,216)	-	-	-	(2,216)
Admin expenses	(3,582)	(232)	-	(3,814)	(135)	-	-	(3,949)
Profit from operations	1,508	267	3	1,778	(135)	(99)	-	1,544
Finance expense	(92)	-	-	(92)	-	-	-	(92)
Finance income	-	-	-	-	4	-	-	4
Internal interest	(158)	-	-	(158)	158	-	-	-
Share of JV profit	51	-	-	51	-	-	-	51
Profit before tax	1,309	267	3	1,579	27	(99)	-	1,507

						IFRS adjustments
At 31 May 2016	Hemmers Europe       £000	Hemmers China £000	Inter segmental £000	Total Hemmers £000	Holding companies £000	Financial derivatives £000	Goodwill         £000	Group total £000
Property, plant & equipment	5,794	70	-	5,864	-	-	-	5,864
Goodwill	-	-	-	-	-	-	855	855
Investment in JV	640	-	-	640	-	-	-	640
Inventories	7,526	271	(32)	7,765	-	-	-	7,765
Trade receivables	4,215	401	-	4,616	-	-	-	4,616
Other receivables	702	438	-	1,140	23	-	-	1,163
Cash & equivalents	611	453	-	1,064	548	-	-	1,612
Total assets	19,488	1,633	(32)	21,089	571	-	855	22,515
Group loans & current accounts	(2,178)	(127)	-	(2,305)	2,305	-	-	-
Non-current liabilities	(3,843)	-	-	(3,843)	-	-	(230)	(4,073)
Trade payables	(1,066)	(328)	-	(1,394)	-	-	-	(1,394)
Other payables	(691)	(161)	-	(852)	(37)	-	-	(889)
Derivative financial liability	-	-	-	-	-	(40)	-	(40)
Corporation tax	(178)	(14)	-	(192)	-	-	-	(192)
Current loans & borrowings	(415)	-	-	(415)	-	-	-	(415)
Total liabilities	(8,371)	(630)	-	(9,001)	2,268	(40)	(230)	(7,003)
Net assets	11,117	1,003	(32)	12,088	2,839	(40)	625	15,512

						IFRS adjustments
Year ended 31 May 2015	Hemmers Europe       £000	Hemmers China £000	Inter segmental £000	Total Hemmers £000	Holding companies £000	Financial derivatives £000	Goodwill         £000	Group total £000
External revenue	31,151	3,708	-	34,859	-	-	-	34,859
Inter-segmental revenue	68	924	(992)	-	-	-	-	-
Cost of sales	(24,303)	(3,815)	989	(27,129)	-	63	-	(27,066)
Gross profit	6,916	817	(3)	7,730	-	63	-	7,793
Distribution costs	(2,082)	(234)	-	(2,316)	-	-	-	(2,316)
Admin expenses	(3,177)	(278)	-	(3,455)	(458)	-	58	(3,855)
Profit from operations	1,657	305	(3)	1,959	(458)	63	58	1,622
Finance expense	(71)	-	-	(71)	-	-	-	(71)
Finance income	-	-	-	-	7	-	-	7
Internal interest	(156)	-	-	(156)	156	-	-	-
Share of JV profit	13	-	-	13	-	-	-	13
Profit before tax	1,443	305	(3)	1,745	(295)	63	58	1,571

						IFRS adjustments
At 31 May 2015	Hemmers Europe       £000	Hemmers China £000	Inter segmental £000	Total Hemmers £000	Holding companies £000	Financial derivatives £000	Goodwill         £000	Group total £000
Property, plant & equipment	1,678	82	-	1,760	-	-	-	1,760
Goodwill	-	-	-	-	-	-	802	802
Investment in JV	553	-	-	553	-	-	-	553
Inventories	7,107	184	(33)	7,258	-	-	-	7,258
Trade receivables	4,522	238	-	4,760	-	-	-	4,760
Other receivables	742	480	-	1,222	18	-	-	1,240
Derivative financial asset	-	-	-	-	-	59	-	59
Cash & equivalents	354	595	-	949	1,078	-	-	2,027
Total assets	14,956	1,579	(33)	16,502	1,096	59	802	18,459
Group loans & current accounts	(1,629)	(204)	-	(1,833)	1,833	-	-	-
Non-current liabilities	(665)	-	-	(665)	-	(17)	(227)	(909)
Trade payables	(1,364)	(418)	-	(1,782)	(3)	-	-	(1,785)
Other payables	(705)	(132)	-	(837)	(44)	-	-	(881)
Corporation tax	(269)	(15)	-	(284)	(12)	-	-	(296)
Current loans & borrowings	(766)	-	-	(766)	-	-	-	(766)
Total liabilities	(5,398)	(769)	-	(6,167)	1,774	(17)	(227)	(4,637)
Net assets	9,558	810	(33)	10,335	2,870	42	575	13,822

Analysis of revenue by destination

	Year ended 31 May 2016			Year ended 31 May 2015
	Hemmers Europe £000	Hemmers China £000	Group total £000	Hemmers Europe £000	Hemmers China £000	Group total £000
UK	1,205	100	1,305	1,087	324	1,411
Germany	22,088	71	22,159	20,205	822	21,027
Rest of EU	7,762	1,230	8,992	8,215	1,059	9,274
Total EU	31,055	1,401	32,456	29,507	2,205	31,712
Rest of Europe	1,186	335	1,521	1,070	157	1,227
Total Europe	32,241	1,736	33,977	30,577	2,362	32,939
North America	187	580	767	251	669	920
Asia	140	831	971	102	295	397
Oceania	80	301	381	106	350	456
South America	108	19	127	113	11	124
Africa	19	30	49	2	21	23
Total revenue	32,775	3,497	36,272	31,151	3,708	34,859

Other information

	Year ended 31 May 2016			Year ended 31 May 2015
	Hemmers Europe £000	Hemmers China £000	Group total £000	Hemmers Europe £000	Hemmers China £000	Group total £000
Additions to property, plant & equipment	4,147	9	4,156	284	14	298
Depreciation	279	21	300	208	18	226

 

 

END

 

 

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