"International designers and manufacturers of innovative quality floorcoverings"
Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Tuesday, 22 November 2011
Embargoed: 7.00am
Half-Yearly Results
for the 26 weeks ended 1 October 2011
"The Group delivers a strong operational performance
whilst making good progress against its strategic objective of becoming the leading quality flooring supplier in both Australasia and the United Kingdom"
Key financials:
· Group Revenue increased to £39.02 million +17.1%
· Robust Profit performance with Operating profit at £1.40 million +80.0%
· Profit before Tax up to £1.27 million after Irish restructuring costs +126.9%
· Basic adjusted earnings per share of 17.66 pence* +241.6%
· Half Year Dividend of 3.50 pence +16.7%
Key commercials:
· Against challenging economic and tough market conditions:
o Australian business delivers improved results
o UK business out-performs the market and returns to profit
o Our market share has grown in synthetic products, as wool's competitive position has weakened through significant raw material price increases
· Group to leverage Victoria's excellent 'Brand' reputation and customer associations by adding Luxury Vinyl flooring to its product offering through a new division, VICTORIA™ LUXURY FLOORING - opening up new opportunities in the UK and European markets
"The Board's objective remains focused on building Victoria's 'Brand' reputation and improving the quality of its earnings. To do this, we plan to continue to invest in our business for the future and, during the remainder of this current financial year, we will be making significant investment in both new carpet ranges and in the luxury vinyl tile market.
"We feel confident that alongside our traditional business, these new product initiatives, allied to anticipated growth in new market areas, will help the Group continue to gain market share and place Victoria in a commanding position to exploit any opportunities presented by the market."
* Refer to note 5 of this Announcement
Enquiries:
Victoria PLC |
Citigate Dewe Rogerson |
Arden Partners |
Alan Bullock Group Managing Director Today: +44 (0)207 638 9571 until 12.00noon Mobile: +44 (0)7785 325701 Thereafter Office: +44 (0)1562 749300 |
Fiona Tooley, Director Keith Gabriel, Senior Account Manager Today: +44 (0)207 638 9571 Mobile: +44 (0)7785 703523 (FMT) Thereafter: +44 (0)121 362 4035
|
Steve Douglas Corporate Finance Director +44 (0)121 423 8900 +44 (0)207 614 5900
|
Ian Davies Group Finance Director Today: +44 (0)207 638 9571 until 12.00noon Mobile: +44 (0)777 0638791 Thereafter Office: +44 (0)1562 749300 |
|
|
VICTORIA PLC
Half-Yearly Results
for the 26 weeks ended 1 October 2011
CHAIRMAN'S STATEMENT
OVERVIEW
I am pleased to report that in the first half of our financial year, Victoria has delivered a strong operational performance whilst making good progress against our strategic objective of becoming the leading quality flooring supplier in both Australasia and the United Kingdom.
Against a backdrop of on-going and extremely challenging economic and market conditions, the Group has delivered a solid and satisfying increase in both revenue and profitability across all of its operations.
FINANCIAL SUMMARY
Group revenue increased by 17.1% in the first half from £33.31m to £39.02m and, in constant currency terms, this was ahead of the corresponding period last year by 9.8%.
All parts of the Group delivered a robust profit performance, with operating profit improving significantly by 80.0% from £0.78m to £1.40m. Profit before tax increased by 126.9% from £0.56m to £1.27m after accounting for non-recurring costs of £0.45m in respect of the closure of the Group's Irish trading entity.
HALF YEAR DIVIDEND
The Board is pleased to declare a 16.7% uplift in the Half-year dividend from 3.0p per share to 3.5p per share. This will be payable on 15 December 2011 to all shareholders on the register as at 2 December 2011, with the ex-dividend date being 30 November 2011.
OPERATING REVIEW
AUSTRALIA
Our Australian business has again delivered improved results despite the difficult economic and soft market conditions that have prevailed in its key markets of Australia and New Zealand.
Both territories have been adversely affected by the increases in wool fibre costs, reduced housing and real estate activity. These factors, coupled with an increasing volume of synthetic carpet imports and a higher level of consumer cautiousness in spending, have created an intensely competitive trading environment.
In this context, therefore, it is pleasing to report that revenue for the first half increased by 9.2% from A$35.42m to A$38.68m and profit before tax rose 12.3% to A$2.93m from A$2.61m in the corresponding period last year. Gross margins were slightly down due to market conditions but this was more than off-set by higher volumes, tight cost control and the positive impact of a strong Australian Dollar.
Modest capital expenditure of A$0.74m was undertaken during the period and mainly related to the commissioning of an in-line latex compounding system. This project was successfully completed in July 2011 and is already providing attractive cost savings as well as quality improvements.
Inventory levels at the end of the period under review were up by A$1.55m (6.6%) over the first half last year, reflecting a changing mix within the business as imported materials with longer lead-times form a higher proportion of stocks. The range of carpet tiles and broadloom products was also expanded to support our recent and successful entry into the commercial contract sector.
The growth of synthetic carpet sales in both the Australian and New Zealand markets has continued, no doubt assisted by the dramatic increases seen in wool fibre costs which over the last year alone have risen by 75%. Wool's competitive position in relation to synthetic fibre has deteriorated significantly and recently, in a declining market, this has resulted in wool-spinning mill closures by two of our major competitors in the market. The challenges of maintaining satisfactory loadings at our own spinning mills is one we have successfully managed to date, albeit with an increasing degree of difficulty.
UNITED KINGDOM
To date, the economy in the UK has shown no signs whatsoever of recovery and, if anything, actually weakened further during August and September. Consumer confidence is extremely fragile as Government cut-backs in the public sector, higher unemployment and a general squeeze in household budgets, dampens discretionary spend.
Despite these extremely challenging conditions, I am pleased to report that our UK operation has undoubtedly out-performed the market and delivered a credible performance.
UK revenue was up by 10.8% from £12.47m to £ 13.82m, with strong growth seen in our business with both The John Lewis Partnership and the insurance replacement market. Sales of synthetic carpet under our EASICARE™ brand have also continued to grow, as these products gain market share from traditional wool products where significant price increases have again led to a deterioration in wool's competitive position.
Tight cost control and our ability to pass on higher raw material prices enabled our UK operation to return to profit from the operating loss last half-year of £0.48m to an operating profit of £0.21m during the period under review.
Profit before tax was £0.16m, compared to a loss before tax of £0.53m in the first half last year.
As part of our strategic planning process, the Group has looked carefully at how it might better leverage Victoria's excellent 'Brand' reputation and customer associations.
Part of this process identified that the Luxury Vinyl Tile (LVT) market is a growing and profitable sector of the flooring market in both the UK and in Continental Europe. The Board sees this area of the flooring market as offering an exciting opportunity for our business.
Consequently, a new division has been established to develop and market this style of flooring in the UK. The modest but strategically important acquisition of C&H Distribution in September 2011 for £0.4m has given us immediate traction in this sector. In early 2012, the Group plans to roll-out an extensive programme of luxury vinyl flooring under the VICTORIA™ LUXURY FLOORING banner. Experienced personnel from within the LVT market have already been successfully recruited, bringing both technical, sales and marketing expertise to the Group. This move will allow us to develop this new Victoria offering whilst the existing Victoria management remain fully focused on our core carpet business.
With regard to the 'redundant property' that we identified in our portfolio sometime ago, I am pleased to report that, after over five years of endeavour to seek a 'change of use' for the Group's sports field in Kidderminster, planning consent will be granted, subject to certain further conditions being satisfied. The Board is now looking at how it may best dispose of this site whilst seeking to maximise shareholder value.
IRELAND
During the first quarter and in accordance with plans previously advised to shareholders, the Group has completed on-time and within budget the closure of its trading entity in Ireland. Our business and brands in Ireland of Munster and Navan Carpets are now being actively marketed and traded under a distribution model and are reported upon as part of our UK operation.
CANADA
Revenue in the period in our associate Canadian company, Colin Campbell, was up by 14.4% from C$3.88m to C$4.44m, with operating profit advancing 191.7% from C$0.12m to C$0.35m.
Whilst the Canadian market in general remains soft, we have exploited the contract residential market well and delivered flooring to some very prestigious projects in the Vancouver area during the first half.
OUTLOOK
Looking at our businesses going forward into the second-half year: In Australia, the global financial volatility, together with falling equity and property values, continue to fuel consumer cautiousness and it is likely that consumers' focus will remain on non-discretionary spending for the time being and the demand for carpet will continue to be subdued. Whilst, in the UK, consumer confidence continues to be extremely weak and the short-term outlook lacks any clear visibility as to when overall conditions might improve.
However, the Board's objective remains focused on building Victoria's 'Brand' reputation and improving the quality of its earnings. To do this, we plan to continue to invest in our business for the future and, during the remainder of this current financial year, we will be making significant investment in both new carpet ranges and in the luxury vinyl tile market.
We feel confident that alongside our traditional business, these new product initiatives, allied to anticipated growth in new market areas, will help the Group continue to gain market share and place Victoria in a commanding position to exploit any opportunities presented by the market.
Nikki Beckett
Chairman
Condensed Consolidated Income Statement
For the 26 weeks ended 1 October 2011 (unaudited)
|
|
26 Weeks |
26 Weeks |
52 weeks |
||
|
|
ended 1 Oct 2011 |
ended 2 Oct 2010 |
ended 2 April 2011 |
||
|
Notes |
£000 |
£000 |
£000 |
||
Continuing operations |
|
|
|
|
||
Revenue |
3 |
39,016 |
33,312 |
70,503 |
||
|
|
|
|
|
||
Cost of sales |
|
(28,221) |
(23,613) |
(50,611) |
||
|
|
|
|
|
||
Gross profit |
|
10,795 |
9,699 |
19,892 |
||
|
|
|
|
|
||
Distribution costs |
|
(6,926) |
(6,966) |
(13,615) |
||
|
|
|
|
|
||
Administrative expenses |
|
(2,239) |
(2,125) |
(4,337) |
||
|
|
|
|
|
||
Other operating income |
|
218 |
168 |
478 |
||
|
|
|
|
|
||
Restructuring costs |
|
(451) |
---- |
---- |
||
|
|
|
|
|
||
Operating profit |
3 |
1,397 |
776 |
2,418 |
||
|
|
|
|
|
||
Share of results of associated company |
|
95 |
24 |
(22) |
||
|
|
|
|
|
||
Finance costs |
|
(219) |
(239) |
(472) |
||
|
|
|
|
|
||
Profit before tax |
3 |
1,273 |
561 |
1,924 |
||
|
|
|
|
|
||
Taxation |
4 |
(471) |
(202) |
(715) |
||
|
|
|
|
|
||
Profit for the period |
|
802 |
359 |
1,209 |
||
|
|
|
|
|
||
Attributable to: |
|
|
|
|
||
Equity holders of the parent |
|
802 |
359 |
1,209 |
||
|
|
|
|
|
||
Earnings per share - |
pence |
basic |
5 |
11.55 |
5.17 |
17.41 |
|
|
|
|
|
|
|
|
|
diluted |
5 |
10.45 |
4.50 |
15.76 |
Condensed Consolidated Statement of Comprehensive Income For the 26 weeks ended 1 October 2011 (unaudited) |
||||||
|
26 Weeks |
26 Weeks |
52 weeks |
|||
|
ended 1 Oct 2011 |
ended 2 Oct 2010 |
ended 2 April 2011 |
|||
|
£000 |
£000 |
£000 |
|||
Exchange differences on translation of foreign operations |
(952) |
401 |
1,733 |
|||
Deferred tax on share option scheme |
---- |
---- |
18 |
|||
Other comprehensive (loss)/ income for the period |
(952) |
401 |
1,751 |
|||
Profit for the period |
802 |
359 |
1,209 |
|||
Total comprehensive (loss)/ income for the period |
(150) |
760 |
2,960 |
|||
Attributable to |
|
|
|
|||
Equity holders of the parent |
(150) |
760 |
2,960 |
Condensed Consolidated Balance Sheet
As at 1 October 2011 (unaudited)
|
As at 1 Oct 2011 |
As at 2 Oct 2010 |
As at 2 April 2011 |
|
|
£000 |
£000 |
£000 |
|
Non-current assets |
|
|
|
|
Goodwill |
---- |
65 |
---- |
|
Intangible assets |
778 |
404 |
389 |
|
Property, plant and equipment |
25,368 |
26,598 |
26,537 |
|
Investment property |
180 |
180 |
180 |
|
Investment in associated company |
559 |
512 |
487 |
|
Deferred tax asset |
823 |
1,429 |
853 |
|
Total non-current assets |
27,708 |
29,188 |
28,446 |
|
Current assets |
|
|
|
|
Inventories |
26,066 |
23,863 |
22,902 |
|
Trade and other receivables |
12,562 |
12,187 |
11,821 |
|
Cash at bank and in hand |
769 |
1,032 |
1,626 |
|
Total current assets |
39,397 |
37,082 |
36,349 |
|
Total assets |
67,105 |
66,270 |
64,795 |
|
Current liabilities |
|
|
|
|
Trade and other payables |
14,865 |
12,693 |
12,442 |
|
Current tax liabilities |
426 |
966 |
613 |
|
Financial liabilities |
7,851 |
7,177 |
6,360 |
|
Total current liabilities |
23,142 |
20,836 |
19,415 |
|
Non-current liabilities |
|
|
|
|
Trade and other payables |
2,387 |
2,755 |
2,611 |
|
Other financial liabilities |
931 |
2,439 |
1,497 |
|
Deferred tax liabilities |
1,395 |
2,600 |
1,510 |
|
Total non-current liabilities |
4,713 |
7,794 |
5,618 |
|
Total liabilities |
27,855 |
28,630 |
25,033 |
|
|
|
|
|
|
Net assets |
39,250 |
37,640 |
39,762 |
|
Equity |
|
|
|
|
Issued share capital |
1,736 |
1,736 |
1,736 |
|
Share premium |
829 |
829 |
829 |
|
Retained earnings |
36,500 |
35,075 |
37,067 |
|
Share-based payment reserve |
185 |
---- |
130 |
|
Total equity |
39,250 |
37,640 |
39,762 |
Condensed Consolidated Statement of Changes in Equity
For the 26 weeks ended 1 October 2011 (unaudited)
|
|
|
|
Share- based |
|
|
Share |
Share |
Retained |
payment |
Total |
|
capital |
premium |
earnings |
reserve |
equity |
|
£000 |
£000 |
£000 |
£000 |
£000 |
At 4 April 2010 |
1,736 |
829 |
34,690 |
---- |
37,255 |
|
|
|
|
|
|
Total comprehensive income for the period |
---- |
---- |
760 |
---- |
760 |
|
|
|
|
|
|
Dividends paid |
---- |
---- |
(375) |
---- |
(375) |
|
|
|
|
|
|
At 2 October 2010 |
1,736 |
829 |
35,075 |
---- |
37,640 |
|
|
|
|
|
|
At 4 April 2010 |
1,736 |
829 |
34,690 |
---- |
37,255 |
|
|
|
|
|
|
Total comprehensive income for the period |
---- |
---- |
2,960 |
---- |
2,960 |
|
|
|
|
|
|
Dividends paid |
---- |
---- |
(583) |
---- |
(583) |
|
|
|
|
|
|
Transfer from accruals |
---- |
---- |
---- |
73 |
73 |
|
|
|
|
|
|
Share-based payment charge |
---- |
---- |
---- |
57 |
57 |
|
|
|
|
|
|
At 2 April 2011 |
1,736 |
829 |
37,067 |
130 |
39,762 |
|
|
|
|
|
|
At 3 April 2011 |
1,736 |
829 |
37,067 |
130 |
39,762 |
|
|
|
|
|
|
Total comprehensive loss for the period |
---- |
---- |
(150) |
---- |
(150) |
|
|
|
|
|
|
Dividends paid |
---- |
---- |
(417) |
---- |
(417) |
|
|
|
|
|
|
Share-based payment charge |
---- |
---- |
---- |
55 |
55 |
|
|
|
|
|
|
At 1 October 2011 |
1,736 |
829 |
36,500 |
185 |
39,250 |
Condensed Consolidated Statement of Cash Flows
For the 26 weeks ended 1 October 2011 (unaudited)
|
|
26 Weeks |
26 Weeks |
52 weeks |
|
|
ended 1 Oct 2011 |
ended 2 Oct 2010 |
ended 2 April 2011 |
|
Notes |
£000 |
£000 |
£000 |
Net cash (outflow)/ inflow from operating activities |
7a |
(185) |
(714) |
2,505 |
|
|
|
|
|
Investing activities |
|
|
|
|
Purchases of property, plant and equipment |
|
(898) |
(294) |
(948) |
Acquisition of intangible assets |
|
(400) |
---- |
---- |
Proceeds of disposals of property, plant and equipment |
|
103 |
1 |
62 |
Net cash used in investing activities |
|
(1,195) |
(293) |
(886) |
|
|
|
|
|
Financing activities |
|
|
|
|
Decrease in long term loans |
|
(312) |
(307) |
(971) |
Receipts from financing of assets |
|
195 |
---- |
202 |
Payment of finance leases/HP liabilities |
|
(440) |
(325) |
(725) |
Dividends paid |
|
(417) |
(375) |
(583) |
Net cash used in financing activities |
|
(974) |
(1,007) |
(2,077) |
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(2,354) |
(2,014) |
(458) |
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
(3,866) |
(3,474) |
(3,474) |
|
|
|
|
|
Effect of foreign exchange rate changes |
|
(47) |
20 |
66 |
|
|
|
|
|
Cash and cash equivalents at end of period |
7b |
(6,267) |
(5,468) |
(3,866) |
Notes to the Condensed Half-Year Financial Statements
For the 26 weeks ended 1 October 2011 (unaudited)
1 General information
These condensed consolidated financial statements for the 26 weeks ended 1 October 2011 have not been audited or reviewed by the Auditor. They were approved by the Board of Directors on 22 November 2011.
The information for the 52 weeks ended 2 April 2011 does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The Auditor's report on those accounts was unqualified and did not include a reference to any matter to which the Auditor drew attention by way of emphasis without qualifying the report and did not contain statements under Section 498(2) or 498(3) of the Companies Act 2006.
2 Basis of preparation and accounting policies
These condensed consolidated financial statements should be read in conjunction with the Group's financial statements for the 52 weeks ended 2 April 2011, which were prepared in accordance with IFRSs as adopted by the European Union.
The accounting policies and basis of consolidation of these condensed financial statements are consistent with those applied and set out on pages 47 to 53 of the Group's audited financial statements for the 52 weeks ended 2 April 2011, except for the following accounting standards and interpretations which became effective for the Group in the current reporting period.
IFRS 7 (amended) 'Financial Instrument: Disclosures'
IAS 24 (amended) 'Related Party Disclosures'
IAS32 (amended) 'Classification of Rights Issues'
IFRIC 14 (amended) 'Prepayments of a Minimum Funding Requirement'
IFRIC 19 'Extinguishing Financial Liabilities with Equity Instruments'
None of these revised and amended standards and interpretations have had a material impact on the Group's net cash flows, financial position, total comprehensive income or earnings per share.
Having reviewed the Group's projections, and taking account of reasonable possible changes in trading performance, the Directors believe they have reasonable grounds for stating that the Group has adequate resources to continue in operational existence for the foreseeable future.
The Directors are of the view that the Group is well placed to manage its business risks despite the current challenging economic and market conditions. Accordingly, the Directors continue to adopt the going concern basis in preparing the financial statements of the Group.
3 Segmental information
In line with previous announcements, the Irish business was restructured in the first quarter of this financial year, and the trade and assets transferred into the UK operation from July 2011. Following this change, the UK and Ireland results are now reported as one segment.
The Group is organised into two operating divisions, the UK & Ireland and Australia. Our share of the Canadian associate result is also presented separately.
Geographical segment information for revenue, operating profit and a reconciliation to entity net profit is presented below.
|
For the 26 weeks ended 1 October 2011 |
For the 26 weeks ended 2 October 2010 |
||||||
|
Revenue |
Operating profit |
Finance costs |
Profit before tax* |
Revenue |
Operating profit/ (loss) |
Finance costs |
Profit/ (loss) before tax* |
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
UK and Ireland |
13,817 |
210 |
(54) |
156 |
12,466 |
(484) |
(50) |
(534) |
Australia |
25,199 |
2,026 |
(116) |
1,910 |
20,846 |
1,669 |
(135) |
1,534 |
|
39,016 |
2,236 |
(170) |
2,066 |
33,312 |
1,185 |
(185) |
1,000 |
|
|
|
|
|
|
|
|
|
Restructuring costs |
---- |
(451) |
---- |
(451) |
---- |
---- |
---- |
---- |
Central costs |
---- |
(388) |
(49) |
(437) |
---- |
(409) |
(54) |
(463) |
Share of results of associate |
---- |
---- |
---- |
95 |
---- |
---- |
---- |
24 |
|
|
|
|
|
|
|
|
|
Total continuing |
39,016 |
1,397 |
(219) |
1,273 |
33,312 |
776 |
(239) |
561 |
operations |
|
|
|
|
|
|
|
|
Tax |
|
|
|
(471) |
|
|
|
(202) |
Profit after tax from |
|
|
|
|
|
|
|
|
continuing activities |
|
|
|
802 |
|
|
|
359 |
* The share of results of the associated company is shown net of tax as required by IAS1.
Intersegment sales between the Group's subsidiaries were immaterial in the current and comparative periods.
4 Tax
|
26 Weeks |
26 Weeks |
|
ended 1 Oct 2011 |
ended 2 Oct 2010 |
|
£000 |
£000 |
Current tax |
|
|
- Current year overseas |
586 |
403 |
|
586 |
403 |
Deferred Tax |
|
|
- Current year movement |
(115) |
(160) |
- Effect of rate change in the UK |
---- |
(41) |
|
(115) |
(201) |
Total |
471 |
202 |
The overall corporation tax rate is 37.0% (2010: 36.0%), representing the best estimate of the weighted average annual corporation tax rate expected for the full financial year. The underlying full year effective corporation tax rate after adjusting for non-recurring restructuring costs in connection with the Irish business is estimated at 31.2%.
5 Earnings per share
The calculation of earnings per ordinary equity share in the parent entity is based on the following earnings and number of shares:
|
26 Weeks |
26 Weeks |
26 Weeks |
26 Weeks |
|
ended |
ended |
ended |
ended |
|
1 Oct 2011 |
1 Oct 2011 |
2 Oct 2010 |
2 Oct 2010 |
|
Basic |
Adjusted |
Basic |
Adjusted |
|
2011 |
2011 |
2010 |
2010 |
|
£'000 |
£'000 |
£'000 |
£'000 |
Profit attributable to ordinary equity holders of the parent entity |
802 |
802 |
359 |
359 |
Adjustment for restructuring costs (net of tax) |
---- |
424 |
---- |
---- |
Earnings for the purpose of basic, adjusted and diluted earnings per share |
802 |
1,226 |
359 |
359 |
|
|
|
|
|
Weighted average number of ordinary shares ('000) for the purposes of basic and adjusted earnings per share |
|
|
|
|
|
6,944 |
|
6,944 |
|
Effect of dilutive potential ordinary shares: |
|
|
|
|
Long-Term Incentive Plan ('000) |
|
728 |
|
1,034 |
Weighted average number of ordinary shares ('000) for the purposes of diluted earnings per share |
|
7,672 |
|
7,978 |
|
|
|
|
|
The Group's earnings per share are as follows: |
|
|
|
|
Basic adjusted (pence) |
|
17.66 |
|
5.17 |
Diluted adjusted (pence) |
|
15.98 |
|
4.50 |
Basic (pence) |
11.55 |
|
5.17 |
|
Diluted (pence) |
10.45 |
|
4.50 |
|
|
|
|
|
|
6 Dividends
|
26 weeks |
26 weeks |
|
ended |
ended |
|
1 Oct 2011 |
2 Oct 2010 |
|
£000 |
£000 |
Amounts recognised as distributions to equity holders in the period: |
|
|
Final dividend for the year ended 2 April 2011 paid during the year 6.0p per share (2010: 5.4p) |
417 |
375 |
Interim dividend declared for the year to 31 March 2012 3.5p per share (2010: 3.0p) |
243 |
208 |
7 Notes to the cash flow statement
a) Reconciliation of operating profit to net cash (outflow)/ inflow from operating activities
|
26 weeks |
26 weeks |
52 weeks |
|
ended 1 Oct 2011 |
ended 2 Oct 2010 |
ended 2 April 2011 |
|
£000 |
£000 |
£000 |
Operating profit from continuing operations |
1,397 |
776 |
2,418 |
Adjustments for: |
|
|
|
- Depreciation charges |
1,457 |
1,407 |
2,865 |
- Amortisation of intangible assets |
6 |
12 |
32 |
- Goodwill impairment |
---- |
---- |
65 |
- Share-based payment charge |
55 |
---- |
57 |
- (Profit)/ loss on disposal of property, plant and equipment |
(20) |
(1) |
13 |
- Exchange rate difference on consolidation |
10 |
52 |
126 |
Operating cash flows before movements in working capital |
2,905 |
2,246 |
5,576 |
Increase in working capital |
(2,080) |
(2,257) |
(1,673) |
Cash generated from/(used in) operations |
825 |
(11) |
3,903 |
Interest paid |
(237) |
(253) |
(505) |
Income taxes paid |
(773) |
(450) |
(893) |
Net cash (outflow)/ inflow from operating activities |
(185) |
(714) |
2,505 |
b) Analysis of net debt
|
At 2 April 2011 |
Cash flow |
Other non-cash changes |
Exchange movement |
At 1 October 2011 |
|
£000 |
£000 |
£000 |
£000 |
£000 |
Cash |
1,626 |
(801) |
---- |
(56) |
769 |
Bank overdrafts |
(5,492) |
(1,553) |
---- |
9 |
(7,036) |
Cash and cash equivalents |
(3,866) |
(2,354) |
---- |
(47) |
(6,267) |
Secured commercial bills |
|
|
|
|
|
- Payable more than one year |
(970) |
312 |
---- |
34 |
(624) |
Finance leases and hire purchase agreements |
|
|
|
|
|
- Payable less than one year |
(850) |
440 |
(409) |
5 |
(814) |
- Payable more than one year |
(527) |
(195) |
409 |
5 |
(308) |
Net debt |
(6,213) |
(1,797) |
---- |
(3) |
(8,013) |
8 Rates of exchange
The results of overseas subsidiaries and associated undertakings have been translated into Sterling at the average exchange rates prevailing during the periods. The balance sheets are translated at the exchange rates prevailing at the period ends:
|
26 Weeks |
26 Weeks |
52 weeks |
|
ended 1 Oct 2011 |
ended 2 Oct 2010 |
ended 2 April 2011 |
Australia (A$) - average rate |
1.5349 |
1.6992 |
1.6460 |
Australia (A$) - period end |
1.6029 |
1.6298 |
1.5465 |
Ireland (€) - average rate |
1.1362 |
1.1753 |
1.1688 |
Ireland (€) - period end |
1.1611 |
1.1502 |
1.1333 |
Canada (C$) - average rate |
1.5822 |
1.5860 |
1.5831 |
Canada (C$) - period end |
1.6233 |
1.6184 |
1.5461 |
9 Related party transactions
During the period, the Group had transactions with its associate, comprising sales of goods to the value of £261k (2010: £127k). At 1 October 2011, the Group was owed £286k (2010: £240k). All goods and services were provided at market rates.
10 Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group's medium term performance and the factors which mitigate these risks have not changed from those set out on page 21 of the Group's 2011 Annual Report, a copy of which is available on the Group's website - www.victoriaplc.com. The Chairman's Statement includes consideration of uncertainties affecting the Group in the remaining six months of the year.
11 Information rights
Under Section 146 of the Companies Act 2006, registered shareholders of fully listed companies are able to nominate the underlying beneficial owners of their shares to receive information rights from 1 October 2007. Companies are required to fulfil these requests from 1 January 2008.
Please note that beneficial owners of shares nominated by the registered holders of those shares are required to direct all communications to the registered holder of their shares rather than to the Company's registrar, Capita Registrars, or the Company directly.
12 Statement of directors' responsibilities
The directors confirm that to the best of their knowledge the condensed set of financial statements has been prepared in accordance with IAS 34, "Interim financial reporting" as adopted by the European Union, gives a true and fair view of the assets, liabilities, financial position and profit of the Group and includes a fair review of the information required by Disclosure and Transparency Rules 4.2.7R, 4.2.8R and 4.2.9R of the United Kingdom's Financial Services Authority.