Interim Results

Treatt PLC 19 May 2003 Treatt PLC ('Treatt' or the 'Group') INTERIM STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2003 CHAIRMAN'S STATEMENT Trading for the six months to 31st March 2003 was challenging, with Group turnover increasing 5.3 per cent to £15,216,000 (2002: £14,454,000) and profit before tax falling by 24 per cent to £955,000 (2002: £1,255,000). Earnings per share have consequently decreased to 6.5 pence per share (2002: 8.6 pence per share). The Board has declared an unchanged interim dividend of 2.7 pence per share (2002: 2.7 pence per share) which is payable on 3rd October 2003 to all shareholders on the register at close of business on 5th September 2003. R C Treatt, the Group's principal operating subsidiary based in the UK, has increased sales but net profits were lower due to the absence of last year's significant one-off orange stock profits together with the impact of the weakening US Dollar during the last 12 months. Despite moving to a new facility and poor weather in the northern United States, Treatt USA sales have been stable. However, there has also been a slight reduction in margins due to the product mix and increased overheads in the new facility. The last six months have not been easy for staff at Treatt USA, having relocated within budget and on time, and having installed a new Enterprise Resource Planning computer system. R C Treatt intends to implement fully this system later this year. Orange oil prices remain firm and are expected to remain so until the new Brazilian orange crop in 2004 when it is believed that prices may well return to near historical levels. The Group's balance sheet remained stable with net assets per share of £1.68 (September 2002: £1.65 per share). Net Debt was £5.5m and gearing was 31 per cent. Based upon our current projections the cash flow in the second half should be positive. Prospects The Group order book is much stronger than at this time last year, particularly in the USA. Treatt USA will have a stronger second half and although it is too early to predict results for R C Treatt, we believe that they will have at least as good a second half as the first half. People We are pleased to welcome Richard Hope (aged 36) as Finance Director, who joined the company on 12th May. Having qualified as a Chartered Accountant in 1990 with PriceWaterhouseCoopers, Richard has been Head of Finance at Hampshire Cosmetics Limited for seven years and was Finance Director of the Marketing Services Division of The Richbell Group. Edward Dawnay Chairman 19th May 2003 GROUP PROFIT AND LOSS ACCOUNT Six months Year ended ended 31 March 31 March 30 September 2003 2002 2002 (Unaudited) (Unaudited) (Audited) Notes £'000 £'000 £'000 Turnover 3 15,216 14,454 30,740 Cost of (11,101) (10,233) (21,662) Sales ______ ______ ______ Gross 4,115 4,221 9,078 profit Net operating costs ----------- -------- --------- Exceptional items - - (739) Other Operating costs (3,033) (2,889) (6,140) ----------- -------- --------- (3,033) (2,889) (6,879) ______ ______ ______ Operating profit 1,082 1,332 2,199 Net interest payable and (127) (77) (167) similar charges ______ ______ ______ Profit on ordinary 955 1,255 2,032 activities before taxation Tax on profit on ordinary 5 (287) (384) (554) activities ______ ______ ______ Profit on ordinary 668 871 1,478 activities after taxation Dividends (278) (273) (864) ______ ______ ______ Transfer to reserves 390 598 614 ______ ______ ______ Dividends per share 2.7p 2.7p 8.4p Earnings per share -Basic -after 6 6.5p 8.6p 14.6p exceptional items -before 6 6.5p 8.6p 19.7p exceptional items -Diluted 6 6.5p 8.5p 14.6p GROUP BALANCE SHEET As at As at As at 31 March 31 March 30 September 2003 2002 2002 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Tangible fixed assets 10,098 7,989 9,523 Current assets Stocks 11,144 10,013 10,080 Debtors 6,432 6,379 6,006 ----------- -------- --------- Cash at - restricted 227 1,827 561 bank - unrestricted 219 233 156 ----------- -------- --------- 446 2,060 717 ______ ______ ______ 18,022 18,452 16,803 Creditors: amounts falling due within one year Bank overdrafts (2,838) (1,086) (1,776) Other creditors (4,697) (4,574) (4,484) ______ ______ ______ (7,535) (5,660) (6,260) ______ ______ ______ Net current 10,487 12,792 10,543 assets Total assets less current 20,585 20,781 20,066 liabilities Creditors: amounts falling (3,084) (3,482) (2,941) due after more than one year Deferred taxation (193) (225) (194) ______ ______ ______ Net assets 17,308 17,074 16,931 ______ ______ ______ Share 1,029 1,010 1,029 capital Share premium account 2,142 1,963 2,139 Profit and loss account 14,137 14,101 13,763 ______ ______ ______ Shareholders' funds 17,308 17,074 16,931 ______ ______ ______ The financial information set out in this document does not constitute statutory accounts within the meaning of the Companies Act 1985. The figures for the year ended 30 September 2002 are an abridged version of the Group's audited financial statements which have been delivered to the Registrar of Companies. These statements received an unqualified audit opinion. The figures for the six months ended 31 March 2003 and 2002 are unaudited. This interim report was approved by the Board on 19 May 2003. GROUP CASH FLOW STATEMENT Six months Six months Year ended ended ended 31 March 31 March 30 September 2003 2002 2002 (Unaudited) (Unaudited) (Audited) Notes £'000 £'000 £'000 Cash inflow/(outflow) 1 74 (817) 968 from operating activities Returns on investments (127) (77) (167) and servicing of finance Taxation (82) (307) (943) Capital expenditure (592) (626) (1,507) and financial investment Equity dividends (277) (264) (820) paid ______ ______ ______ Cash outflow before (1,004) (2,091) (2,469) financing Financing - Decrease - - (85) in debt - Issue of 3 - 195 ordinary share capital ______ ______ ______ Decrease in cash in 2 (1,001) (2,091) (2,359) the period ______ ______ ______ Notes (1) Reconciliation of operating profit to cash inflow/ (outflow) from operating activities Operating 1,082 1,332 2,199 profit Depreciation 327 372 480 charges Net increase in (1,335) (2,521) (1,711) working capital and other items ______ ______ ______ Cash inflow/ 74 (817) 968 (outflow) from operating activities ______ ______ ______ (2) Reconciliation of net cash flow to increase in net debt Decrease in cash (1,001) (2,091) (2,359) in the period Cash outflow from (331) - (1,545) change in net debt Exchange and 14 6 168 other non-cash movements ______ ______ ______ Decrease in net (1,318) (2,085) (3,736) funds in the period Net debt at 1 (4,159) (423) (423) October 2002 ______ ______ ______ Net debt at 31 (5,477) (2,508) (4,159) March 2003 ______ ______ ______ (3) Turnover by destination United 3,313 3,819 7,597 Kingdom Rest of 4,626 3,864 8,044 Europe The 3,477 4,015 8,375 Americas Rest of 3,800 2,756 6,724 the World ______ ______ ______ 15,216 14,454 30,740 ______ ______ ______ (4) Statement of recognised gains --- --- --- --- and losses Profit for the 668 871 1,478 period before dividends Currency (16) 119 (235) translation differences on foreign currency net investments ______ ______ ______ Total recognised 652 990 1,243 gains and losses ______ ______ ______ (5) Taxation has been provided at 30.1 per cent (2002: 30.5 per cent) which is the effective group rate currently anticipated for the financial year ending 30 September 2003. (6) (a) Basic earnings per share for the six months ended 31 March 2003 are based on the weighted average number of shares in issue in the period of 10,289,970 (2002: 10,102,749) and earnings of £668,000 (2002: £871,000) being the profit on ordinary activities after taxation. (b) Diluted earnings per share for the six months ended 31 March 2003 are based on the weighted average number of shares in issue in the period, adjusted for the effects of all dilutive potential ordinary shares of 10,289,970 (2002: 10,197,701) and the same earnings as above. (7) The interim financial statements have been prepared on the basis of the accounting policies set out in the Group's 30 September 2002 annual report This information is provided by RNS The company news service from the London Stock Exchange

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