Final Results
Caldwell Investments PLC
22 June 2007
PRELIMINARY RESULTS
Year Ended 28th February 2007
CALDWELL INVESTMENTS P.L.C.
Highlights:
• Turnover for the year ended 28th February 2007 £6,247,478 (2006:
£6,418,670)
• Pre tax loss before exceptional items £158,135 (2006: £525,668)
• Reassessment of Group activities and recognition for strategic change
• NinaSun garden furniture discontinued
• Downsize of underwear and baby buggy parasol activities in the UK
• Arrangements made to dispose of premises in Skelmersdale
• Moving into production of Crude Jatropha Oil in Brazil for the
Biodiesel industry
• Fernando Lunardini appointed Group Chief Executive
Chairman, Stanley Wootliff, commenting on the results, said:
'The year ended 28th February 2007 has been one of fundamental reassessment and
recognition of the need for strategic change. We have downsized our underwear
business and baby buggy parasol operations due to margin pressures and reduced
sales volumes. As a result of lower than expected sales of our garden furniture
we have also now withdrawn from that activity completely. These decisions have
been extremely difficult and as a consequence have incurred considerable costs
however doing nothing would have led to terminal decline.
Following on from the above decisions, your Board has decided to reposition the
Company into the rapidly expanding Biodiesel market and to establish plantations
in Brazil to produce crude Biodiesel oil from Jatropha Trees. To lead the Group
in this development Fernando Lunardini was appointed to the Caldwell Board as
Group Chief Executive on 22nd June 2007. The Board believes that this new
strategy will deliver value for shareholders in the coming years'.
For further information, please contact:
Stanley Wootliff, Executive Chairman
Graham Haselden, Finance Director.
Tel: 0113 235 0632
CHAIRMAN'S STATEMENT
BUSINESS PERFORMANCE
In the last financial year, the Group has undertaken a strategic review of all
its existing activities and as a consequence initiated a project to investigate
the feasibility of moving into the production of Biodiesel feed-stock in Brazil
for sale and distribution in Europe and USA (the 'Biodiesel Project').
The Group loss on ordinary activities, before exceptional items, and before
taxation, from its existing businesses for the year ended 28th February 2007 was
£158,135 (2006: £525,668).
Exceptional items amounting to £799,930 were related to the write down of
intellectual property, fixed assets and stocks associated with the Group's
existing activities in particular the NinaSun garden furniture.
After providing for tax on overseas profits, a retained loss of £1,118,242 has
been transferred to reserves.
OPERATIONAL REVIEW
The year ended 28th February 2007 has been one of fundamental reassessment of
the Group's activities and recognition of the need for strategic change.
As announced on 2nd February 2007, the Board has reviewed all current activities
and as a result of ongoing margin pressure and reduced sales volumes in its
underwear business and lower than expected uptake of its 'NinaSun' garden
furniture range, the Group has been left with no alternative but to discontinue
its activities in relation to garden furniture and seek out an alternative
activity in order to reposition the Group away from its traditional, mature
underwear businesses.
This decision has been extremely difficult and incurred considerable costs,
which are reflected in the accounts under review. However the Board considers
that, the inevitable consequence of doing nothing would have been terminal
decline.
NinaSun Garden Furniture
On 2nd February 2007, we announced that we were reviewing our NinaSun business
and considering a number of options. Although the product was initially well
received, the business remained too small to be economic and your Board took the
view that the marketing spend necessary to achieve a commercially viable level
of sales would not produce a satisfactory return on the Group's financial
resources. A number of possible options were considered, including the option of
franchising, none of which proved to be feasible. It was therefore decided to
discontinue the activity.
Underwear
Our German business continues to trade profitably whilst continuing to be
subject to ongoing margin and turnover pressures.
In the UK, the volume of third party importing handled by the Group is expected
to continue to decline and the Company intends to downsize its overheads to
levels more appropriate to the reduced volumes of business.
Baby Buggy Parasols
Our baby buggy parasol business, 'NinaClip', continues to receive a reduced
volume of orders. This is due primarily to a change in the design of baby
buggies, many of which now incorporate integral hoods, removing the requirement
for a separate parasol. We continue to supply this market although an ongoing
reduction in demand is expected and the operation is being scaled down
accordingly.
PROPERTY
In recognition of the scaling down of the existing UK businesses, the Company's
premises at Skelmersdale have been put onto the market for sale. We have
received serious interest and hope to have exchanged contracts for the sale of
the building within the next few months.
BIODIESEL PROJECT
In December 2006, as a result of the Group's strategic review your Board took a
decision to investigate the feasibility of Caldwell producing Biodiesel
feedstock Crude Jatropha Oil ('CJO') from Jatropha trees grown in Brazil.
The Group's feasibility study into the Biodiesel market confirmed the market
opportunity for the production of CJO for the esterification of Biodiesel.
The next stage entailed more detailed project evaluation including identifying a
project leader, a local management team, and investigating land availability and
local infrastructure and resources.
In January 2007, we carried out a small scale trial in Brazil planting and
germinating seeds for 1,000 Jatropha trees. The success of this trial has
confirmed that the conditions available are sufficiently fertile for the Company
to be able to grow Jatropha trees directly from planted seeds rather than
nursery grown saplings. This could afford us significant cost savings.
The Board believes that Biodiesel is a rapidly expanding market whose growth
will continue to be driven by geo-political concerns and legislation aimed at
protecting the environment and is a market where demand is running ahead of
supply.
MANAGEMENT
The focus of the Group's activities on the Biodiesel Project required the
introduction of appropriate management to the Board. Accordingly, in order to
lead the Group in its development as a leading producer of CJO, Fernando
Lunardini (38) was appointed to the Caldwell board as Group Chief Executive on
22nd June 2007. Fernando Lunardini is a Brazilian National based in Sao Paulo.
Until May 2006 he was an Associate Partner at McKinsey & Co., for the previous
eight years, and prior to that he was with Anderson Consulting and Cap Gemini.
He is a non-executive director of Panazon Ambiental Ltd, a water treatment
equipment company in Brazil. He has a BSc in engineering and an MBA from INSEAD
and extensive experience of eco-related business development projects in Brazil.
Fernando is well qualified to lead the Group in its new endeavours in the
Biodiesel industry.
CURRENT TRADING
All the Group's existing businesses are trading satisfactorily within the
context of the current, scaled-down business plan. The UK underwear and baby
buggy businesses are being relocated to smaller premises and should be installed
by the end of July. Current trading in Germany is steady.
OUTLOOK
The repositioning of the Group's traditional businesses is proceeding according
to plan. The Biodiesel Project in Brazil has been initiated and funded to date
from Caldwell's existing resources. The next stage of the Biodiesel Project will
require more substantial funding and proposals will be put to shareholders for a
placing to provide the necessary equity capital as soon as practicable.
CHANGE OF NAME
The Board believes that it will be appropriate to change the Company name to
VIRIDAS to reflect the Company's new activities in the green energy industry. A
special resolution to change the name will be put to shareholders at the Annual
General Meeting on July 27th 2007.
SUMMARY
In the year ended 28 February 2007, we have taken some difficult decisions.
Practical steps have been taken to start to reposition the Company into an
expanding area of the global economy and your Board believes that the new
strategy will deliver value for shareholders in the coming years.
On a personal note, I would like to thank all my colleagues at Caldwell for
their continued efforts and enthusiasm in what has been a difficult year.
Without their help and support these achievements would not have been possible.
CALDWELL INVESTMENTS P.L.C.
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR
ENDED 28 FEBRUARY 2007
Year ended
28 February Year ended
2007 28 February
Before 2007 Year ended Year ended
exceptional Exceptional 28 February 28 February
items Items 2007 2006
£ £ £ £
Turnover - continuing operations 6,247,478 - 6,247,478 6,418,670
Cost of sales (5,161,297) (105,911) (5,267,208) (5,355,099)
-------------- -------------- -------------- --------------
Gross profit 1,086,181 (105,911) 980,270 1,063,571
Distribution costs (139,969) - (139,969) (155,353)
Administration expenses (1,104,347) (694,019) (1,798,366) (1,437,105)
Other operating income - - - 3,219
-------------- -------------- -------------- --------------
Operating loss - continuing operations (158,135) (799,930) (958,065) (525,668)
Net interest payable (71,342) (64,126)
-------------- --------------
Loss on ordinary activities before taxation (1,029,407) (589,794)
Tax on profit on ordinary activities (88,835) (57,412)
-------------- --------------
Loss for the financial year (1,118,242) (647,206)
======== ========
Loss per share
Basic (5.62p) (3.40p)
-------------- --------------
Diluted (5.62p) (3.40p)
======== ========
CALDWELL INVESTMENTS P.L.C.
BALANCE SHEETS
AT 28 FEBRUARY 2007
GROUP COMPANY
2007 2006 2007 2006
£ £ £ £
Fixed assets
Intangible assets 166,556 506,756 - 241,179
Tangible assets 559,114 799,096 441,481 364,452
Investments - - 837,906 2,382,906
-------------- -------------- -------------- --------------
725,670 1,305,852 1,279,387 2,988,537
Current assets
Stocks 1,008,416 1,554,300 - -
Debtors falling due within 1 year 477,088 630,912 793,132 619,916
Cash at bank and in hand 689,118 917,673 444,857 607,779
-------------- ------------ ------------ ------------
2,174,622 3,102,885 1,237,989 1,227,695
Creditors: amounts falling due within one year (1,350,779) (1,802,164) (100,338) (114,148)
-------------- -------------- -------------- --------------
Net current assets 823,843 1,300,721 1,137,651 1,113,547
-------------- -------------- -------------- --------------
Total assets less current liabilities 1,549,513 2,606,573 2,417,038 4,102,084
Creditors: amounts falling due after more than one year
(296,933) (314,043) (296,933) (314,043)
Net assets 1,252,580 2,292,530 2,120,105 3,788,041
-------------- -------------- -------------- --------------
Capital and reserves
Called up share capital 1,991,196 1,991,196 1,991,196 1,991,196
Share premium account 1,906,229 1,906,229 1,906,229 1,906,229
Capital redemption reserve 27,000 27,000 27,000 27,000
Revaluation reserve 118,000 27,000 118,000 27,000
Profit and loss account (2,789,845) (1,658,895) (1,922,320) (163,384)
-------------- -------------- -------------- --------------
Shareholders' funds 1,252,580 2,292,530 2,120,105 3,788,041
-------------- -------------- -------------- --------------
CALDWELL INVESTMENTS P.L.C.
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR
ENDED 28 FEBRUARY 2007
Year ended Year ended
28 February 28 February
2007 2006
£ £
Net cash inflow/(outflow) from operating activities 285,116 (605,141)
Returns on investments and servicing of finance
Interest received - 1,920
Interest paid (69,834) (63,566)
Finance lease interest paid (1,508) (2,480)
-------------- --------------
Net cash outflow from returns on investments and servicing of finance (71,342) (64,126)
-------------- --------------
Taxation
Tax paid (47,853) (50,542)
-------------- --------------
Capital expenditure and financial investment
Purchase of intangible fixed assets (15,994) (57,735)
Purchase of tangible fixed assets (5,855) (72,657)
Receipt from sale of fixed assets - 2,151
-------------- --------------
Net cash outflow from capital expenditure (21,849) (128,241)
-------------- --------------
Net cash inflow/(outflow) before financing 144,072 (848,050)
Financing
Issue of shares - 574,864
Share issuing expenses - (61,488)
Repayment of bank loans (25,113) (24,437)
Capital element of finance lease payments (9,852) (16,656)
-------------- --------------
Net cash (outflow)/inflow from financing (34,965) 472,283
-------------- --------------
Increase/(decrease) in cash in the year 109,107 (375,767)
-------------- --------------
BASIS OF PREPARATION
This preliminary statement of annual results which covers the twelve months to
28 February 2007 has been agreed by the Group's auditors and is consistent with
the full financial statements.
The abridged preliminary Group accounts for the year ended 28 February 2007 are
not statutory accounts and have been extracted from the full statutory accounts
for the year ended 28 February 2007. The full statutory accounts for the year on
which the auditor's report is unqualified will be delivered to the Registrar of
Companies in due course.
The comparative figures for the twelve months to 28 February 2006 are abridged
from the accounts for that year and do not constitute full accounts within the
meaning of Section 240 of the Companies Act 1985 (as amended). Statutory
accounts for that year on which the auditors gave an unqualified opinion have
been delivered to the Registrar of Companies.
LOSS PER SHARE
The calculation of basic loss per share is based on losses attributable to
ordinary shareholders divided by the weighted average number of shares in issue
during the period. The calculation of diluted earnings per share is based on
the basic loss per share adjusted to allow for the assumed conversion of all
dilutive options.
ANNUAL REPORT
The annual report will be mailed to shareholders on or around 5th July 2007.
Copies will be available after that date from: The Secretary, Caldwell
Investments P.L.C., 647 Roundhay Road, Leeds, West Yorkshire LS8 4BA.
ANNUAL GENERAL MEETING
The Annual General Meeting will be held at Centurion House, 37 Jewry Street,
London. EC3N 2ER on Friday 27th July 2007 at 10.00 a.m.
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