Final Results
Victoria PLC
22 June 2004
Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Tuesday, 22 June 2004
Embargoed: 7.00am
Victoria P.L.C.
Manufacturers of carpet and carpet yarns through operations
in the UK, Australia, Ireland and Canada
Preliminary Results for the year ended 3 April 2004
Strong performance produces a year of record turnover and profits at Victoria
•Another year of record turnover and profits
•Significant sales growth, with Group turnover up 23% to £54.6 million
•Maintained momentum of organic growth - like for like sales increased by
13.6%
•Successful acquisition and integration of Navan Carpets in Ireland
•Profit before tax up 39% to £4.19 million
•EPS up by 44% to 43.3 pence
•Dividend up 27.8% from 9.0 pence to 11.5 pence
•Victoria Carpets UK performed well in a difficult market, with carpet
sales up 17%
•Revolutionary new carpet backing line at Kidderminster now successfully
producing first ranges of 5-metre width carpet
•Outstanding results achieved in Australia, with 18% increase in turnover
and 53% increase in pre-tax profit further building on last year's record
results
'I am delighted to be able to report on a year of record turnover and profits.
Not only have we maintained the momentum of organic growth, but we have taken
important steps through investment and acquisition to position ourselves well
for the future.
After an exceptional year in Australia, we are starting to see some slackening
of demand and increased levels of competition, therefore we are somewhat
cautious about the prospects for our business in this region. On the other hand,
we expect the UK and Ireland to show returns from last year's investment in
products and plant as well as a positive impact from the acquisition of Navan.
Overall, I look forward with confidence to achieving further progress in the
year ahead.'
R M Gilbert, Chairman
FULL STATEMENT ATTACHED
Enquiries:
Alan Bullock, Group Managing Director
Mark Lee, Group Finance Director Fiona Tooley/Katie Dale
Victoria P.L.C. Citigate Dewe Rogerson
Today: 020 7282 8000 up to 2pm Today: 020 7282 8000
Onwards: Mobile: 07785 325701 (Alan Bullock) Thereafter: 0121 455 8370
Thereafter: 01562 749640 Mobile: 07785 703523
www.victoria.plc.uk
-2-
Victoria P.L.C.
Preliminary Results for the year ended 3 April 2004
STATEMENT BY THE CHAIRMAN, R M GILBERT
Overview
I am delighted to be able to report on a year of record turnover and profits.
Not only have we maintained the momentum of organic growth, but we have taken
important steps through investment and acquisition to position ourselves well
for the future.
The Group's turnover in the year to 3 April 2004 grew 23% to £54.6 million
(2003:£44.4m). Operating profit rose by 42% to £4.75 million (2003:£3.34m):
pre-tax profit was 39% higher at £4.19 million (2003: £3.01m) whilst earnings
per share were 44% higher at 43.3 pence per share (2003: 30.1p).
Dividend
The strong trading result this year enables the Board to recommend a 27.8%
increase in the dividend to 11.50 pence per share. Subject to approval at the
AGM on 23 July 2004, the dividend will be paid on 26 July 2004 to shareholders
on the register at 2 July 2004.
UK
The UK operation continued to build its market share, with sales increasing by
10% to £29.5 million. We continued to invest in products and service, which
included the UK liveried transport fleet being renewed and extended in August
2003. There has been considerable disruption to overcome in the relocation of
manufacturing plant from Navan in Ireland to the Kidderminster plant in
Worcestershire, however, I am pleased to report that the looms and traditional
backing line are now commissioned and are anticipated to be running well by the
summer.
Our UK yarn spinner, Westwood Yarns in West Yorkshire, completed an expansion
project in August 2003, which added an extra 20% capacity. This was in good time
for the busy Autumn period, allowing it to deliver its increased output imm
ediately on commissioning.
Ireland
In late July 2003, we extended our presence in the Irish market with the
acquisition of the Irish business and certain assets of Navan Carpets Limited.
Navan is the leading brand in the residential and hospitality contract market in
Ireland and fits well with Victoria's strategy of developing strong market
positions in the middle to top end of the quality spectrum.
The Navan business has made a positive contribution to our results in its first
8 months as part of the Group, adding to the profits from Munster Carpets, which
was bought a year earlier.
Australia
Our Australian business continued to build on the record performance we enjoyed
last year. Carpet sales volume grew 16.5% and contributed to an 18% increase in
turnover to A$54.0 million.
This growth was achieved as a result of the availability of additional yarn from
the Pacific Yarns spinning mill in Bendigo which we acquired in November 2002.
It is pleasing to note that since the acquisition of this spinning mill it has
met all of the targets set by the Board.
The success of our Australian operation, as with every business, is based on
talent, expertise and the skill of our professional staff. In September 2004,
our non-executive chairman, Arthur Rendell, who is now 72 years old, will be
retiring. Arthur has chaired our Australian company for 13 years and has made a
significant contribution to the growth and development of our Australian
business.
On behalf of the Board, shareholders and staff, I would like to thank him most
sincerely for the considerable input he has made to the company and we wish him
and his wife a long and happy retirement.
continued...
-3-
Employees
Group employees now number over 750. On behalf of the Board and shareholders, I
would like to thank every employee for their contribution over the last
financial year, as it is the combined effect of their hard work that produces
our on-going success.
Outlook
After an exceptional year in Australia, we are starting to see some slackening
of demand and increased levels of competition, therefore we are somewhat
cautious about the prospects for our business in this region.
On the other hand, we expect the UK and Ireland to show returns from last year's
investment in products and plant as well as a positive impact from the
acquisition of Navan.
Overall, I look forward with confidence to achieving further progress in the
year ahead.
-4-
Victoria P.L.C.
Preliminary Results for the year ended 3 April 2004
OPERATING REVIEW BY THE GROUP MANAGING DIRECTOR, ALAN BULLOCK
Victoria has enjoyed another excellent year of growth and whilst each of the
principal trading subsidiaries of the Group has experienced quite different
market and operating conditions during the year the overall result is one of
record turnover and profits.
Group sales increased by 23% from £44.4 million to £54.6 million, whilst
Operating Profits improved by 42% from £3.34 million to £4.75 million. Pre-Tax
Profits were 39% higher at £4.19 million compared to £3.01 million last year.
All companies within the Group again showed improved performance and were
profitable.
United Kingdom
Victoria Carpets' performed well in a difficult market environment: not only did
the industry have to compete with the long, hot, dry summer of 2003; it also had
to contend with the uncertainty created by the wider geo-political problems in
the post 9/11 world. Certainly, the conditions in the UK in 2003 have been far
from conducive to instil consumer confidence.
Against this backdrop, Victoria Carpets' sales were up by 17% in value terms,
from £25.2m to £29.5m, as the consistent investment made in product and
point-of-sale display materials allowed us to distance ourselves from our
competitors.
Home sales within the United Kingdom were up by 13% from £21.7m to £24.6m, with
sales to the Independent Retail sector, which account for over 63% of our UK
sales, remaining strong and growing by 17% during the year.
Our drive to offer our customers consistently high levels of service was
recognised twice during the year with the award for the 'Best Supplier of the
Year', from both the CFR Magazine, the Trade's highly respected magazine, and
the Greendale Buying Group, the biggest independent retail buying group in the
UK. I am also pleased to report that this is the second year running that we
have received the prestigious Greendale award for both Best Supplier and Best
Product, which reflects great credit on all of the team at Victoria Carpets UK.
Exports too have enjoyed good success during the year with sales up 44%, despite
the on-going strong value of Sterling and this reflects a recovery in our export
sales to the hospitality industry following the set-backs of 9/11
Sales to our Irish businesses, Munster and Navan Carpets, also boosted our
exports as we took full advantage of our manufacturing base in the UK to supply
our Irish subsidiaries. Even after stripping out the effect of these sales, our
exports were still up by 10%.
Operationally, within Victoria Carpets UK, we have had an exceptionally busy and
difficult year, therefore, I would like to express my gratitude to all of the
operational staff who have had to contend with significant changes and thank
them also for their tireless efforts in delivering the record levels of
production demanded by sales, whilst implementing these changes.
The revolutionary new Tufted backing line which was successfully commissioned in
2003, is now delivering all that we expected of it. The first ranges of 5-metre
width carpet are now available in the market, including our award winning and
successful Tudor Twist Collection, which was launched this month in 5-metre
width.
continued...
-5-
As part of the acquisition of Navan Carpets, Ireland in July 2003, we purchased
some of its Axminster looms. This has not only enabled us to modernise our own
Axminster plant in Kidderminster but it has allowed us to produce denser
constructions of Axminster carpet which is necessary in order to strengthen our
position in the Contract Hospitality sector. The relocation of these looms
itself was quickly and successfully completed, however, the reconditioning of
the looms and bringing them into full and effective production proved to be a
much bigger task than originally envisaged. As a result of these difficulties,
we struggled to meet demand for our products and had to commission outwork
weaving in order to maintain the service levels to our contract customers. This
was not done without considerable cost, which resulted in the Axminster
department being unprofitable in the year. At the time of writing, I am pleased
to say that the looms are now all running although there are still some teething
problems to be overcome, but we are confident that we will rise above these
challenges during the summer and that the department will then return to full
profitability.
As part of our modernisation programme of our traditional Axminster and Wilton
production, we are also improving our carpet backing facilities and building a
new in-line finishing and inspection facility. These plans will greatly improve
our finishing capabilities and reduce operational costs.
Bob Milnes, the Operations Director of Victoria Carpets, reaches retirement age
in July 2004 and I would particularly like to thank Bob for the contribution he
has made to our business in over 40 years' service with the company. His
successor is Neil Glover, who joined us in December 2003; and already his
contribution in driving the business forward is being felt.
Westwood Yarns, under the stewardship of Mark Reah, who became Managing Director
in July 2003 on the retirement of Brian Priest, has enjoyed a good year
contributing well to the Group.
A capital expenditure programme of £1.18 million was successfully completed in
August 2003, enabling output to be lifted by some 20% to around 60 tonnes of
quality carpet yarn per week.
During the year, around 93% of the yarn Westwoods produced was utilised within
the Group by Victoria Carpets in Kidderminster.
Ireland
Victoria acquired Munster Carpets in October 2002 and then added a further brand
in the form of Navan Carpets in July 2003, which has given us the two
pre-eminent carpet brands in the Republic of Ireland.
Munster Carpets sells predominantly quality Wilton carpets through the design /
specification route to the Contract Commercial Market, whilst Navan Carpets
markets and sells Axminster, Wilton and Tufted carpets to both the Residential
and Contract Hospitality Markets and this combination provides coverage of most
of the quality, middle to high end of the carpet market.
Both brands market independently with their own sales teams although they are
now head-quartered in new consolidated office and warehouse facilities in
Maynooth, just outside Dublin.
Sales of the combined businesses in the year were £3.7 million on which there
was a net profit before tax of £0.2 million. This represents an 8 month period
of trading for Navan and a full 12 months for Munster Carpets.
The Irish economy was, by previous standards, sluggish and has slowed
significantly from its highs of recent years. This having been said, with its
young, well educated population and strong inward investment, the Irish economy
remained one of the better performers in the EU and it is perhaps the slow down
from the past outstanding growth levels that has made consumers feel a lack of
confidence.
continued...
-6-
Certainly, in the first-half of our financial year, the market was below our
expectations and the contract commercial market, upon which Munster is so
focused, was slow. However, we saw signs of 'green shoots' as Ireland took on
its period of European Presidency and the contract market is now showing
indications of returning to more normal trading levels.
Residentially, the market is still slow and the penetration of alternative floor
coverings has had some impact on this sector.
During the year, Munster Carpets took on the exclusive representation of an
excellent carpet tile manufacturer, which will complement well the Wilton,
Axminster and Tufted contract offerings they already have. Additionally, plans
are already well advanced to introduce a wider stock offering, which should help
Munster boost sales in the future.
Navan Carpets, which we purchased from the Liquidator, has made a very promising
start and has been profitable since acquisition. Having conducted an early
strategic review of the business, we have commenced a strong programme of new
range launches aimed at re-positioning the Navan brand as the foremost supplier
of quality carpets in the Irish market. We are also rolling out the same
in-store display, service orientated policy that has proven such a success for
our UK business and whilst it will take time for us to re-instil consumer and
retailer confidence in the brand, we are confident that this can be achieved.
I would like to express my personal thanks to Sean Kelly, the Managing Director
of our Irish businesses and to his team for all of the hard work that they are
putting into restoring Navan and Munster to their former glories.
Australia
April 2004 saw the 50th Anniversary of the commencement of our Australian
operations and the outstanding results achieved this year were a most gratifying
way to celebrate a half-century 'Down-Under'.
A strong consumer led Australian economy, a buoyant market at retail market
level and the company's success in the Contract Residential area have combined
to produce excellent results.
Sales turnover was up 18% from A$45.8m to A$54.0m following on from an increase
in sales of 43% in the previous year and net profit before tax was 53% higher,
up from
A$4.7m to A$7.2m.
Excellent new product ranges, high levels of customer service and on-going
investment in state-of-the-art plant and equipment continue to hold us in good
stead whilst investment in the most modern tufting machinery at our Dandenong
factory continues to provide substantial productivity improvements in our carpet
production
The acquisition of Pacific Textiles, Bendigo, in late 2002 has proven to be an
outstanding success and has been fundamental to supporting the growth in our
Australian business. Yarn output from Bendigo during the year was commensurate
with our excellent Castlemaine spinning mill and, with some A$2 million invested
at Bendigo over the past twelve months, yarn quality is now also of a comparable
standard.
We sincerely appreciate the excellent work done by our Australian team at the
three locations in Victoria: Dandenong, Castlemaine and Bendigo, and
congratulate them on the result achieved in 2003/ 2004.
Canada
In October 2003, we completed our search for a new President of Colin Campbell &
Sons and we are pleased to welcome Richard Munden to head our Canadian business.
continued...
-7-
Despite being without a President for nearly 8 months Campbell's business has
fared well during the year with profits almost doubled on the previous year with
costs tightly controlled whilst sales remained static.
Outlook
In the United Kingdom, we expect the residential market to remain difficult,
with higher interest rates, fuel price increases and concerns over world events
continuing to affect consumer confidence. However, we do feel that we are well
placed to exploit the market conditions and continue to take market share from
our competitors.
Positively, we have seven new ranges planned for introduction during the first
half of the financial year, all of which will be available in the market before
the crucial autumn selling season. We are continuing to invest in point-of-sale
display units and have a new generation of units just starting to enter the
market.
Exports from the UK will hopefully continue to prosper and we have initiatives
planned to exploit our improved Axminster facilities in the contract markets.
Operationally, we expect the Axminster looms and new traditional backing line to
be up and running by the end of June and this should see a turn-around in the
performance of our Axminster Department.
Westwood Yarns' business is strongly underwritten by the demand created by
Victoria Carpets and we will have the availability of their increased capacity
for the full year.
In Ireland, Munster's contract commercial business appears to be improving with
a strong list of specifications already written, which we would normally expect
to convert into firm orders. The programme of introducing stock range options,
as well as the custom bespoke contract programmes, should also under-pin their
business.
We expect Navan's business to increase gradually during the year as the new
ranges and point-of-sale display material are installed in the retailers'
showrooms. The Contract Hospitality work Navan does with the hotel trade appears
also to be picking up, which is a positive sign for us.
The outlook in Australia, however, is a little less certain with signs that the
Australian economy is off its highs of the last two years. The Australian
residential property market is presently undergoing a modest decline but we feel
that this should not impact on our business too severely.
The Australian Government's Strategic Investment Programme (SIP), which assisted
our profitability last year, particularly as a result of our purchase of Pacific
Textiles, should continue and we could receive recognition under this programme
for on-going investment. It will, however, be at a reduced level compared to
2003/2004.
The import tariff rates on carpet brought into Australia will fall from 15% to
10% in six months' time, and it is likely that an Australian /USA free trade
agreement will be ratified by January 1st 2005, reducing tariff rates to 8% on
carpets from the USA. This may attract greater competition into the Australian
market, particularly in synthetic carpets.
Having seen two years in succession of outstanding growth from our Australian
business and having mentioned the above factors that could affect our business;
we see 2004/2005 as being a year more of consolidation rather than one of
further growth in this region.
-8-
Victoria P.L.C.
Preliminary Results for the year ended 3 April 2004
FINANCIAL REVIEW BY THE GROUP FINANCE DIRECTOR, MARK LEE
Overview
These results include the first 8 months' contribution from Navan Carpets,
acquired at the end of July 2003, and the first full year from Munster Carpets
and Pacific Textiles acquired in October and November 2002. Notwithstanding the
increase in Group turnover attributable to these acquisitions, the existing
businesses in the UK and Australia demonstrated significant organic growth. The
interest charges on the debt taken on with each acquisition have been more than
covered by the operating profits generated, and each has made a positive
contribution to Group profits.
Turnover
Group sales increased by 23% in the year to £54.6m (2003: £44.4m). Excluding the
beneficial effects of the Australian exchange rate movement and the Irish
acquisitions in 2002 and 2003, like for like sales increased by 13.6%. In local
currencies, Australian sales increased by 17.9% and UK sales increased by 10.4%.
Operating profit
Operating margin increased from 7.54% to 8.87% as efficiencies fed through from
higher production volumes. Returns were also seen from investment in increased
yarn spinning in our own spinning mills. Operating profit rose 42% to £4.75
million.
Interest charge and pre-tax profit
Interest costs were £0.23m higher at £0.59m, with the increase being
attributable to the higher level of borrowings. The interest charge was 8.1
times covered by operating profit. After interest costs, and a contribution of
£0.02 million from the associated company Colin Campbell & Sons in Canada,
profit before tax was £4.185 million.
Taxation
The taxation charge for the year was £1.18 million, which represented a rate of
28.2% (2003: 30.5%).
Earnings per share
Profit after taxation increased 44% to £3.01m (2003: £2.09m), and basic earnings
per share (eps) increased 44% to 43.28p. There are no options, warrants or
conversion rights over ordinary shares in the Company, and hence fully diluted
eps are the same as basic eps.
Balance Sheet
Net assets at the year end were £25.33 million, an increase of 13% on the
previous year end.
Borrowings increased by £3.0 million to leave year end net borrowings at
£11.16 million, representing gearing of 44%. The increase in borrowings was due
to a combination of factors as shown in the table under Cash Flow below.
continued...
-9-
Cash flow
The summarised cash flow shows the major components of the Group's cash flow in
the year.
2004 2003
£000 £000
Operating profit 4,752 3,344
Depreciation, amortisation and loss on sale of fixed
assets 2,107 1,810
Changes in working capital (2,657) (1,994)
Exchange rate movements 258 86
-------------------------------- -------- -------
Net cash inflow from operations 4,460 3,246
Interest (586) (352)
Taxation (1,256) (614)
Replacement capital expenditure (1,067) (1,728)
-------------------------------- -------- -------
Free cash flow 1,551 552
Discretionary capital expenditure (2,166) (2,656)
Acquisitions (1,446) (2,752)
Dividends (625) (486)
-------------------------------- -------- -------
Movement in net debt (2,686) (5,342)
-------------------------------- -------- -------
The 23% growth in turnover in the year increased working capital requirements
which absorbed £2.66m of cash. Capital investment amounting to £1.07m was made
in replacing older plant and equipment, with a further £2.17m invested in
expanding the spinning capacity at Westwood Yarns and other discretionary
projects. The acquisition of the Navan Carpets business and assets incurred a
cash outflow of £1.45m which was met from additional banking facilities.
Dividends
The Board maintains a policy of progressive dividend growth, and in line with
this is recommending a 27.8% increase in the dividend to 11.5 pence per share.
This dividend, if approved at the AGM, will be paid on 26 July 2004 to
shareholders on the register at 2 July 2004. The proposed dividend is covered
3.8 times by earnings, leaving £2.21 million of retained earnings for investment
in the Group's activities.
New accounting standards
Although there have been a number of changes in UK accounting standards since
the last annual report, none of these has had any impact on the Group's
financial statements.
As a listed company, the Group will be required to adopt International Financial
Reporting Standards (IFRS) for the year ending March 2006, and the interim
report in September 2005. The Group has commenced its work to move to IFRS
compliant accounts by these dates, and is in line to meet this timetable.
-10-
Victoria P.L.C.
Preliminary Results for the year ended 3 April 2004
GROUP PROFIT & LOSS ACCOUNT
53 weeks 52 weeks
ended ended
3 April 29 March
2004 2003
Note £000 £000
Turnover 1 54,622 44,367
Cost of sales 38,808 31,479
-------- --------
Gross profit 15,814 12,888
Distribution costs 8,948 7,193
Administrative expenses 3,199 3,014
Other operating income 1,085 663
-------- --------
Operating profit 4,752 3,344
Interest payable and similar charges 586 352
Share of profits of associated undertaking 19 15
-------- --------
Profit on ordinary activities before taxation 1 4,185 3,007
Taxation 1,180 917
-------- --------
Profit after taxation 3,005 2,090
Dividends paid and proposed 799 625
-------- --------
Retained profit 2,206 1,465
-------- --------
Earnings per share - basic and diluted 43.28p 30.10p
-------- --------
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
2004 2003
Profit after taxation 3,005 2,090
Currency translation differences on foreign currency net 673 193
investments
Total gains relating to the year and recognised since the last
annual report 3,678 2,283
-11-
Victoria P.L.C.
Preliminary Results for the year ended 3 April 2004
CONSOLIDATED BALANCE SHEET
3 April 29 March
2004 2003
£000 £000
Fixed assets
Intangible assets 563 377
Tangible assets 23,592 21,551
Investments 306 289
-------- --------
24,461 22,217
-------- --------
Current assets
Stock 14,908 10,723
Debtors 9,795 9,352
Cash at bank and in hand 308 257
-------- --------
25,011 20,332
-------- --------
Less: current liabilities 16,052 12,732
Creditors - due within one year
-------- --------
Net current assets 8,959 7,600
-------- --------
Total assets less current liabilities 33,420 29,817
Less: Creditors - due after one year 7,033 6,331
Provision for deferred taxation 1,056 1,034
-------- --------
Net assets 25,331 22,452
======== ========
Capital and reserve (equity)
Share capital 1,736 1,736
Share premium 829 829
Revaluation reserve 2,144 2,077
Profit and loss account 20,622 17,810
-------- --------
Total shareholders' funds 25,331 22,452
======== ========
-12-
Victoria P.L.C.
Preliminary Results for the year ended 3 April 2004
GROUP CASH FLOW STATEMENT
53 weeks ended 52 weeks ended
3 April 2004 29 March 2003
Note £000 £000 £000 £000
Net cash inflow from operating 2 4,460 3,246
activities
Dividends received from associated - 8
undertaking
Returns on investment and servicing
of
finance
Interest paid (357) (202)
Interest element of finance lease (229) (150)
and hire
purchase payments
--------- ---------
(586) (352)
Taxation
UK Corporation Tax paid (271) (280)
Overseas tax paid (985) (334)
--------- ---------
(1,256) (614)
Capital expenditure and financial
investment
Payments to acquire tangible fixed (3,303) (4,433)
assets
Receipts from sales of tangible
fixed 70 49
assets --------- ---------
(3,233) (4,384)
Acquisitions
------- -------
Payments to acquire the assets of a
trade or business (1,446) (2,752)
------- -------
(2,061) (4,848)
Equity dividends paid (625) (486)
------- -------
(2,686) (5,334)
Financing
Increase/(decrease) in long term (457) 1,912
loans
Capital element of finance lease (923) (597)
and hire
purchase payments
Receipts from financing of assets 1,375 2,323
--------- ---------
(5) 3,638
------- -------
Decrease in cash (2,691) (1,696)
======= =======
-13-
Victoria P.L.C.
Preliminary Results for the year ended 3 April 2004
NOTES
1. Analysis of Group turnover and profit
The turnover, contribution to profit and net assets are geographically spread as
follows:
53 weeks ended 52 weeks ended
3 April 2004 29 March 2003
Profit on Profit on
ordinary Net ordinary Net
Turnover activities assets Turnover activities assets
£000 £000 £000 £000 £000 £000
United Kingdom 28,488 971 13,643 25,809 1,060 13,246
Australia 22,397 2,993 10,959 17,513 1,785 8,582
Ireland 3,737 202 423 1,045 118 312
Canada - 19 306 - 44 312
---------------------------------------------------------------
54,622 4,185 25,331 44,367 3,007 22,452
---------------------------------------------------------------
The Group's turnover and profits were derived from continuing operations during
the current and previous years. During the year, the Group acquired certain
assets and the Irish business of Navan Carpets, based in Ireland. These
operations were immediately integrated into the existing operations of the
Group, such that it is not practicable to determine the post-acquisition
results.
An indication of the contribution made by Navan Carpets, since the acquisition
of the business and assets on 27 July 2003, is given by the turnover (£2.24
million) and the operating profits (£0.15 million) made by this division of
Munster Carpets Limited in Ireland.
2. Reconciliation of operating profit to net cash inflow from operating
activities
2004 2003
£000 £000
Operating profit 4,752 3,344
Depreciation and amortisation 2,094 1,799
Loss on sale of fixed assets 13 11
(Increase) in stocks (3,111) (2,357)
(Increase) in debtors (443) (3,058)
Increase in creditors 897 3,421
Exchange rate difference on consolidation 258 86
------- -------
Net cash inflow from operating activities 4,460 3,246
======= =======
3. Rates of exchange
The following year-end exchange rates have been used:
Australia: A$2.4099 to one pound sterling (2003: A$2.6145)
Euro: €1.5074 to one pound sterling (2003: €1.4581)
Canada: C$2.4101 to one pound sterling (2003: C$2.3002)
4. The Report & Accounts will be posted to shareholders on 28 June 2004 and
further copies will be available from the Company's Registered Office: Worcester
Road, Kidderminster, Worcestershire DY10 1HL.
5. The Annual General Meeting is being held at the Registered Office of the
Company, Worcester Road, Kidderminster on Friday, 23 July 2004 at 2.30pm.
This information is provided by RNS
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