Interim Results

Anglian Group PLC 28 November 2000 Tuesday 28 November 2000 Interim Results Anglian Group PLC, a UK leader in the home improvements market, announces its interim results for the 26 weeks to 30 September 2000. 26 weeks to 26 weeks to 30 September 2000 2 October 1999 Turnover £128.8 million £121.0 million Operating profit £10.6 million £13.7 million Profit before taxation £10.7 million £14.1 million Earnings per share 11.0 pence 12.9 pence Interim dividend per share 4.8 pence 4.5 pence * Profits in line with expectations * Operating profit impacted by inflationary cost increases particularly in PVCu * Continuing growth from Living Design, the Group's developing kitchen direct sales business * 10% of Company's share capital bought back at cost of £10.6 million in June which, with the £44 million special dividend last year, has produced a more efficient capital structure * Continued positive cash generation, resulting in a net cash inflow of £ 9.7 million before dividend * Group remains ungeared and cash positive. Commenting on the results, Chief Executive Eddie Boss said: 'As anticipated, the year has been and will continue to be challenging. However, with our leading market share and branding positions, integrated supply chain and quality product and service offering, we look forward to a return to growth in due course.' Enquiries: Anglian Group PLC 01603 787000 Eddie Boss, Chief Executive Robert Aitken, Finance Director Financial Dynamics 020 7831 3113 Tom Baldock Charles Armitstead Anglian Group PLC Interim Results for the 26 weeks to 30th September 2000 CHAIRMAN'S AND CHIEF EXECUTIVE'S STATEMENT Overview Turnover showed solid growth by comparison with the first half of last year but this was not reflected in profit due to increased costs. Operating profits, while lower than the comparative period, were in line with expectations. The reduction in operating profit was due to lower margins impacted by inflationary cost increases, particularly in PVCu and distribution costs, which the Group has generally been unable to pass on in prices to date. The Group continues to generate positive cash flows. Reflecting this and following the £44 million special distribution to shareholders last year, approximately 10% of the Company's share capital was bought back in the market during June at a cost of £10.6 million. Despite this the group remains ungeared and cash positive. While these measures have produced a more efficient capital structure, the inevitable reduction in interest income had an impact on profit before tax by comparison with prior periods. Financial summary * Turnover up 6% at £128.8 million (1999: £121.0 million). * Operating profit reduced to £10.6 million (1999: £13.7 million). * Profit before taxation reduced to £10.7 million (1999: £14.1 million). * Earnings per share down to 11.0 pence per share (1999: 12.9 pence). * Interim dividend up 7% to 4.8 pence per share (1999: 4.5 pence). Cash generation continued to be positive, resulting in a net cash inflow of £ 9.7 million (1999: £9.5 million) before management of liquid resources, financing and dividends to shareholders. The reduction in the Group's cash balance from £13.5 million at last year end to £7.6 million reflected the £ 10.6 million buy back of the Company's own shares. Business review Consumer home improvements turnover benefited from a reduction in Anglian Windows' order book to normal levels due to improved installation lead times. The slow down in order intake in the first two months reported at June has been reversed by increased marketing effort. Hence order books in this sector are currently at satisfactory levels. The Living Design kitchen sales and installation business continued to expand, producing good growth in profits and cash flow. The Commercial building products business has proved slower to recover volume with turnover still running below last year's level. Nonetheless demand in the new house building sector is being progressively re-established and there have been some notable successes in winning longer-term supply contracts with our new 'partnering' approach in the public housing sector. The effect of higher oil prices on PVCu and distribution, together with other inflationary cost increases, reduced first half profitability. Increased cost was also incurred in operating the new warehouse facility which has enhanced service to the New Build market. With the manufacturing supply issues experienced last year fully resolved we are confident that Anglian is providing its customary high standard of customer service. Significant enhancements in product offerings, including replacement of two of the principal window ranges for the commercial markets and of Living Design's kitchen range, have been successfully introduced. This provides the Group with an outstanding product range upon which to build future growth. Dividend The Board has declared an increased interim dividend of 4.8 pence per share (1999: 4.5 pence) payable on 13th February 2001 to shareholders on the register at 12th January 2001. Outlook The Group entered the second half with satisfactory order books for its consumer home improvements businesses but some short term weakness in order books for the Commercial building products businesses. As anticipated, the year has been and will continue to be challenging. However, with our leading market share and branding positions, integrated supply chain and quality product and service offering, we look forward to a return to growth in due course. David Perry Eddie Boss Chairman Chief Executive 28 November 2000 Anglian Group PLC Interim Results for the 26 weeks to 30th September 2000 Consolidated profit and loss account (unaudited) 26 weeks to 26 weeks to 52 weeks to 30th September 2nd October 1st April 2000 1999 2000 Notes £'000 £'000 £'000 Continuing operations Turnover 128,825 120,976 259,712 ______ ______ ______ Operating profit 10,607 13,687 26,836 Net interest 94 415 378 ______ ______ ______ Profit on ordinary activities before taxation 10,701 14,102 27,214 Taxation 2 (3,237) (4,372) (8,232) ______ ______ ______ Profit for the period 7,464 9,730 18,982 Dividends 3 (2,554) (3,234) (8,651) ______ ______ ______ Retained profit 4,910 6,496 10,331 ______ ______ ______ Earnings per share - basic 4 11.0p 12.9p 26.0p - diluted 4 11.0p 12.7p 25.8p ______ ______ ______ Dividend per share 3 4.8p 4.5p 12.1p ______ ______ ______ All recognised gains and losses are included in the consolidated profit and loss accounts above. Anglian Group PLC Interim Results for the 26 weeks to 30th September 2000 Consolidated balance sheet (unaudited) 30th September 2nd October 1st April 2000 1999 2000 Notes £'000 £'000 £'000 Fixed assets 29,850 30,189 31,279 Current assets Stocks 14,477 12,868 12,763 Debtors 25,611 30,403 28,248 Cash at bank and in hand 7,610 11,795 13,451 ______ ______ ______ 47,698 55,066 54,462 Creditors - amounts falling due (62,287) (67,910) (64,336) within one year ______ ______ ______ Net current liabilities (14,589) (12,844) (9,874) ______ ______ ______ Total assets less current liabilities 15,261 17,345 21,405 Creditors - amounts fall due after (404) (811) (607) more than one year Provisions for liabilities and (8,288) (8,351) (8,655) charges ______ ______ ______ Net assets 6,569 8,183 12,143 ______ ______ ______ Capital and reserves Called up share capital 4,022 4,450 4,454 Capital redemption reserve 440 - - Share premium account 28,365 28,033 28,193 Profit and loss account 7 (26,258) (24,300) (20,504) ______ ______ ______ Equity shareholders' funds 8 6,569 8,183 12,143 ______ ______ ______ Anglian Group PLC Interim Results for the 26 weeks to 30th September 2000 Consolidated cash flow statement (unaudited) 26 weeks to 26 weeks 52 weeks to to 30th September 2nd October 1st April 2000 1999 2000 Notes £'000 £'000 £'000 Net cash flow from 5 14,180 14,054 33,275 operating activities Returns on investment and servicing of finance 94 415 378 Taxation (1,945) (923) (10,323) Capital expenditure Purchase of tangible fixed assets (3,013) (4,360) (9,406) Sale of tangible fixed assets 411 328 571 ______ ______ ______ (2,602) (4,032) (8,835) ______ ______ ______ Equity dividends paid (4,881) (4,820) (8,024) ______ ______ ______ Net cash inflow before management of liquid resources and financing 4,846 4,694 6,471 Management of liquid resources 2,750 33,188 35,813 Financing 6 (10,687) (43,095) (43,216) ______ ______ ______ Decrease in cash in the period (3,091) (5,213) (932) ______ ______ ______ Reconciliation of net cash flow to movement in net funds Decrease in cash in the period (3,091) (5,213) (932) Cash outflow from decrease in finance 203 213 459 leases Cash inflow from decrease in liquid (2,750) (33,188) (35,813) resources Inception of finance leases - (124) (166) ______ ______ ______ Movement in net funds in the period (5,638) (38,312) (36,452) Net funds at the start of the period 12,437 48,889 48,889 ______ ______ ______ Net funds at the end of the period 6,799 10,577 12,437 ______ ______ ______ Anglian Group PLC Interim Results for the 26 weeks to 30th September 2000 Notes to the interim results 1. Basis of preparation The financial information, which is unaudited and does not constitute statutory accounts, comprises the results of Anglian Group PLC and its subsidiary undertakings for the period ended 30th September 2000. The information has been prepared using accounting policies consistent with those set out in the Group's 2000 statutory accounts. The comparative figures for the financial year ended 1st April 2000 have been extracted from the Group's statutory accounts for that financial year. Those accounts have been reported on by the Group's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under Section 237 (2) or (3) of the Companies Act 1985. 2 Taxation The taxation charge for the period ended 30th September 2000 is calculated at 30.25%, being the estimated effective rate of taxation for the 52 weeks ending 31st March 2001. 3. Dividend The interim dividend of 4.8p (1999: 4.5p) will be paid on 13th February 2001 to shareholders registered on 12th January 2001. The estimated cost of £3,089,000 (1999: £3,234,000) is based on 64,354,523 ordinary shares (1999: 71,199,458 ordinary shares). The charge in the profit and loss account of £2,554,000 includes a credit of £535,000 arising from the over provision of the final dividend for 2000 at 1st April 2000, due to the repurchase of share capital. 4. Earnings per share The calculation of earnings per ordinary share is based on earnings of £7,464,000 (1999: £9,730,000) and the weighted average number of ordinary shares in issue during the period of 67,573,343 (1999: 75,315,691). The calculation of diluted earnings per ordinary share is based on the same earnings and an assumed number of ordinary shares of 67,712,700 (1999: 76,326,649). 5. Reconciliation of net cash flow from operating activities 26 weeks to 26 weeks 52 weeks 30th September to to 2nd October 1st April 2000 1999 2000 £'000 £'000 £'000 Operating profit on continuing 10,607 13,687 26,836 operations Depreciation 4,029 3,552 7,325 Loss/(profit) on sale of fixed assets 2 (84) (102) Increase in stocks (1,714) (2,579) (2,474) Decrease/(increase) in debtors 2,804 (3,456) (1,337) (Decrease)/increase in creditors (1,548) 2,934 3,027 and provisions ______ ______ ______ Net cash inflow from operating 14,180 14,054 33,275 activities ______ ______ ______ 6. Financing 26 weeks to 26 weeks 52 weeks 30th September to to 2nd October 1st April 2000 1999 2000 £'000 £'000 £'000 Issue of share capital 180 1,717 1,881 Special payment to shareholders - (43,987) (43,987) Expenses paid in connection with - (247) (247) share capital consolidation Repurchase of share capital (10,647) - - Funding of employee share option (17) (365) (404) trusts Repayment of finance leases (203) (213) (459) ______ ______ ______ (10,687) (43,095) (43,216) ______ ______ ______ 7. Profit and loss account 30th September 2nd October 1st April 2000 1999 2000 £'000 £'000 £'000 Accumulated retained profits 47,037 51,855 54,221 Goodwill (29,308) (32,168) (30,738) Amount attributable to 'B' share (43,987) (43,987) (43,987) issue ______ ______ ______ (26,258) (24,300) (20,504) ______ ______ ______ 8. Reconciliation of movement in shareholders' funds 30th September 2nd October 1st April 2000 1999 2000 £'000 £'000 £'000 Profit for the period 7,464 9,730 18,982 Dividends (2,554) (3,234) (8,651) ______ ______ ______ Retained profit for the period 4,910 6,496 10,331 Special payment to shareholders - (43,987) (43,987) Costs charged against share premium - (247) (247) Funding of employee share option (17) (365) (404) trusts New shares issued 180 1,717 1,881 Repurchase of share capital (10,647) - - ______ ______ ______ Net movement in shareholders' funds (5,574) (36,386) (32,426) Opening equity shareholders' funds 12,143 44,569 44,569 ______ ______ ______ Closing equity shareholders' funds 6,569 8,183 12,143 ______ ______ ______ 9. Repurchase of ordinary shares During the period under review the company repurchased ordinary shares with a nominal value of £440,000 at a total cost of £10,647,000 (being £10,557,000 value of shares and £90,000 costs) which has been charged against profit and loss account reserves. 10. The financial information for the 26 weeks ending 30th September 2000 is unaudited but has been reviewed in accordance with Auditing Practices Board guidance by KPMG Audit Plc, whose report is included in the interim report which will be posted to shareholders on 8th December 2000.

Companies

Angling Direct (ANG)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today