Interim Results - Amendment

Worthington Group PLC 1 December 1999 The issuer has advised that the following alteration should be made to the WORTHINGTON GROUP PLC, DISPOSALS/RIGHTS/INTERIM RESULTS, announcement released yesterday 30 November 1999 at 7:05am under RNS No 6580B. The unaudited results for the half year ended 30 September 1999 released yesterday contained a typographical error in respect of that period's turnover. The consolidated profit and loss account showed turnover for the period of £39,364,000; this should have read £29,264,000, which corresponds with the correct figure referred to in the Chairman's statement preceeding the results. A corrected version of the interim results for the six months ended 30 September 1999 is shown below: INTERIM RESULTS OF WORTHINGTON FOR THE SIX MONTHS ENDED 30 SEPTEMBER 1999 The task of restructuing the Group has continued with much vigour in the first half of the year and the benefits will not start to be apparent. The market has been far from easy, with much turbulence in the retail sector. In the circumstances, sales of £29.2 million producing trading profits of £1,169,000 and margins of some 4 per cent. averaged over the Group are considered satisfactory. From these trading profits must be deducted non-recurring items of £273,000, which are to be expected given the ongoing rationalisation which is set to continue until we have completed the streamlining of our operations. Competitiveness is currently being maintained by cost reduction programmes with the result that this half year performance was better than the last six months of the previous year. The interest charge has the most significant impact on these unaudited interim results, borrowings are simply too high and must be quickly reduced in order that the Group can progress plans for its development. The proposed Rights Issue and disposals announced today will remedy the problem to a large extent. The full details are contained in the circular which accompanies this Statement.Further disposals are under consideration with a view to eliminating all bank borrowings. Turning now to the individual divisions, Clothing Components had a good period with sales and profits well above budget. Industrial and Home Furnishings traded in line with expectations. The results for Yarns and Fabrics were a disappointment with sales and profits well below budget. Yours Board is giving particular attention to improving the Group's profitability, and is undertaking a serious review of the scale and future of some of the Group's operations. The Board is generally pleased with the progress to-date and feels that the time is now right to actively consider a measured diversification into new areas. Notwithstanding this proposed change of emphasis, some of the underlying businesses which are retained have a niche in the marketplace and their profit contributions should sustain a stream of earnings sufficient for dividends to be resumed once the balance sheet has been repaired. JC Dwek, C.B.E. 30 November 1999 Consolidated profit and loss account 6 months 6 months Year ended ended ended 30 September 30 September 31 March 1999 1998 1999 unaudited unaudited audited (restated - note 1) £'000 £'000 £'000 Turnover 29,264 18,649 45,001 ------ ------ ------ Trading profit/(loss) 1,169 1,096 (282) Exceptional and non-recurring items (note 3) (273) - (5,405) Operating profit/(loss) 896 1,096 (5,687) Profit on disposal of fixed assets - 4 134 Net interest payable (866) (479) (1,355) ------ ----- ------ Profit/(loss) before tax 30 631 (6,908) Taxation - (181) (301) ------ ------ ------ Profit/(loss) attributable to shareholders 30 440 (7,209) Dividends payable - (556) (556) ------ ------ ------ Retained profit/(loss) 30 (116) (7,765) ------ ------ ------- Earnings/(loss) per share 0.1p 1.1p (15.8p) Consolidated balance sheet 30 September 31 March 1999 1999 unaudited audited £'000 £'000 Fixed assets 18,777 19,528 Negative goodwill (80) (80) Investments 27 27 ------ ------ 18,724 19,475 ------ ------ Current assets Stock 9,802 10,016 Debtors 13,129 12,474 Cash 4 28 ------ ------ 22,935 22,518 Creditors due in less than one year (29,220) (29,256) ------ ------ Net current liabilities (6,285) (6,738) ------ ------ Total assets less current liabilities 12,439 12,737 Creditors due in more than one year (5,712) (6,040) ------ ------ Net assets 6,727 6,697 ------ ------ Capital and reserves Share capital 5,238 5,238 Share premium 16,219 16,219 Other reserves 152 152 Profit and loss account (14,882) (14,912) ------ ------ 6,727 6,697 ------ ------ Consolidated cash flow statement 6 months Year ended ended 30 September 31 March 1999 1999 unaudited audited £'000 £'000 Net cash (outflow)/inflow from operating activities (90) 1,305 Returns on investments and servicing of finance: Interest paid (603) (1,185) Interest element of finance lease rental payments (118) (170) ------ ------ (721) (1,355) ------ ------ Taxation: UK Corporation tax including advance corporation tax (40) (842) Capital expenditure and financial investments Purchase of tangible fixed assets (300) (811) Sale of tangible fixed assets 260 393 ------ ------ (40) (418) ------ ------ Acquisitions and disposals Purchase of subsidiary undertakings - (554) Overdrafts acquired with subsidiary - (2,412) ------ ------- - (2,966) ------ ------- Equity dividends (paid) (556) (1,275) Special dividend paid on acquisitions - (207) ------ ------ Net cash (outflow) before financing (1,447) (5,758) Financing: Issue of ordinary share capital - 7 Capital element of finance lease rental payments (615) (662) Debt due within one year Increase in short term borrowings - 500 Repayments of short term borrowings (496) (1,200) Debt due after more than one year New loan repayable 2006 - 4,620 Repayment of long term borrowings (258) (3,803) ------ ----- (1,369) (538) ------ ------ Decrease in cash (2,816) (6,296) ------ ------ Notes: 1. The unaudited results for the six months ended 30 September 1998 have been re-stated to take into account the change in accounting treatment of development costs and the error in the basis of stock valuation as detailed in the 1998/99 Annual Report & Accounts dated 30 July 1999, as follows: Pro-forma Change in Error As only re- account- in basis restated stated ing trea- of stock tment of valua- developm- tion ent costs £'000 £'000 £'000 £'000 Turnover 18,649 - - 18,649 ------ ------ ------ ------ Operating profit/(losses) 2,409 (450) (863) 1,096 Profit on disposal of fixed assets 4 - - 4 Net interest payable (479) - - (479) ------ ------ ------ ------ Profit before tax 1,934 (450) (863) 621 Taxation (561) 130 250 (181) ------ ------ ------ ------ Profit attributable to shareholders 1,373 (320) (613) 440 ------ ------ ------ ------ (i) The 'as previously reported' results for the half year ended 30 September 1998 are the Interim Results published on 7 December 1998. (ii) In March 1999 the Group reviewed its treatment of development costs which were previously classified as prepayments and written off against future revenue streams. All development costs are now written off as incurred. (iii)A review of the basis of stock valuation attributable to manufactured and bought-in stock was carried out in 1999 and revealed that in prior periods inappropriate costs had been absorbed into the carrying value of stocks. Absorption of direct and indirect costs is now included in the value of stock only when appropriate (iv) A tax credit equivalent to 29% has been allocated to the tax charge in respect of points (ii) and (iii) above (v) The exceptional items written off as at 31 March 1999 have not been allocated into the six month period ended 30 September 1998 since they principally related to items included in the balance sheet as at 31 March 1998 (see note 3 below). 2. The Interim Results and the comparative figures are unaudited and do not constitute Group accounts as defined in Section 240 of the Companies Act 1985. The information relating to the year ended 31 March 1999 does not constitute Group accounts as defined in Section 240 of the Companies Act 1985 and has been extracted from the audited accounts, reported without qualification, which have been delivered to the Registrar of Companies. 3. The exceptional and non-recurring items consist of the following: 6 months 6 months Year ended ended ended 31 March 30 Sept 99 30 Sept 98 1999 £'000 £'000 £'000 Non-recurring items Closure costs of London Head Office (170) - - Trading loss and loss on disposal of 'Davenport Street' operations (53) - - Redundancy costs (50) - - Exceptional items As per note 6 to the 1998/9 Annual Report and Accounts - - (5,405) ------- ------ ------ (273) - (5,405) ------- ------ ------ 4. Earnings/(loss) per share have been calculated by reference to the average number of of ordinary shares in issue in the period, amounting to 52,387,697 shares(six months ended 30 September 1998: 41,148,376 shares) and on profit after taxation of £30,000 (six months ended 30 September 1998: related profits after taxation of £440,000). The diluted earnings per share for the six months ended 30 September 1999 was 0.1p (six months ended 30 September 1998: 1.1p). 5. Reconciliation of operating profit to net cash flow from operating activities: 6 months Year ended ended 30 Sept 99 31 March 99 Operating profit/(loss) 896 (282) Depreciation 791 1,512 Decrease/(increase) in stock 214 877 Decrease/(increase) in debtors (655) 267 (Decrease)/increase in creditors (1,336) (1,069) ------ ------ Net cash flow from operating activities (90) 1,305 ------ ------ 6. Further copies of this statement are available from: Worthington Group plc, Victoria Works, Shipley, West Yorkshire BD17 7EF.

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