Interim Results

St. Ives PLC 23 April 2002 St Ives plc Interim Results Announcement Equipment investment and cost reduction programme position group well to respond to a market upturn St Ives, the leading UK-based printing group, today announces Interim Results for the 26 weeks ended 1 February 2002. 26 weeks to 26 weeks to 1 Feb 2002 26 Jan 2001 â€¢ Turnover Â£241.1m Â£233.3m â€¢ Profit before tax, exceptional items & goodwill Â£16.6m Â£30.7m amortisation â€¢ Earnings per share before exceptional items & 10.9p 20.3p goodwill amortisation â€¢ Interim dividend per share 5.0p 5.0p Commenting on the interim results, Miles Emley, Chairman, St Ives plc said: 'In most of our markets conditions have been more challenging than at any time in recent history. In the UK book market, supply and demand have recently moved towards equilibrium. All our other markets are experiencing significant excess capacity and there is little sign of an upturn in demand. Against this background, progress will be hard to achieve in the short term. 'In the longer term, the steps recently announced to reduce costs and rationalise capacity, together with our long standing policy of investing in the most modern and flexible equipment, make us well placed to respond to an upturn when it occurs.' For further information, please contact: St Ives plc 020 7928 8844 Miles Emley, Chairman Brian Edwards, Managing Director Citigate Dewe Rogerson 020 7638 9571 Julian Walker / Duncan Murray Results The results for the twenty-six weeks ended 1 February 2002 show turnover of Â£241.1 million (2001 - Â£233.3 million) and profit before taxation, exceptional items and amortisation of goodwill of Â£16.6 million (2001 - Â£30.7 million). Profit before taxation, which is struck after goodwill amortisation of Â£1.1million and exceptional costs of Â£9.4 million relating to rationalisation measures completed or announced throughout the Group, was Â£6.1million (2001 - Â£30.3 million). Earnings per share before exceptional items and goodwill amortisation were 10.93p (2001 - 20.33p). Dividend An interim dividend of 5.00p per share (2001 - 5.00p) has been declared, which will be paid on 5 June 2002 to shareholders on the register on 3 May 2002. Trading Conditions In most of our markets conditions have been more challenging than at any time in recent history. There has been a widespread reduction in advertising expenditure which has affected direct response, commercial and magazine markets in the geographic areas in which we operate; the uncertainties facing global capital markets have led to a dearth of corporate financial documentation; and demand for music and multimedia related product is weak. The effect of reducing demand has been exacerbated by the significant excess of capacity over demand which was already in evidence in mid-2001 and, in the UK, by the continued strength of sterling against the euro. Only the UK market for books has shown some resilience. We have reacted swiftly to the hostile environment by reducing costs and taking steps to retire our least efficient capacity. Regrettably, most of these initiatives involve reductions in the number of people employed, and, in the UK and Europe, lengthy consultations can be required before they are finalised. As ever, we keep our cost base under continuous review. Books Overall demand for monochrome consumer books in the UK has been steady. We have produced the majority of best-selling titles during the half year by virtue of our ability to offer a faster and more responsive service than our competitors. Sales of paperback books were strong, partly because we produced a number of titles associated with recent film releases. Direct Response and Commercial In the UK we have experienced reduced demand overall and competitive pricing, mainly as a result of falling advertising expenditure and continued overseas competition for longer-run, less time-sensitive products. We continue to concentrate on more specialist products which require a higher level of service and for which demand has been generally more resilient. Towards the end of the period we announced proposals to reduce capacity by decommissioning three of our older presses, which were less suited to the production of specialist material, and associated finishing equipment, at our Leeds factory. These actions are now complete. The profitability of our business in Germany serving these markets has been further affected by weak demand and pricing pressure resulting from excess capacity. As a result we decommissioned one of our 32 page presses towards the end of the half-year. In the USA we experienced particularly sharp reductions in demand in the travel and leisure sectors as well as for high quality retail advertising material, which made for volatile utilisation and persistent pricing pressure. We have taken some costs out of the business as a result of the consolidation of Avanti and Case-Hoyt with our pre-existing US business, mitigating the adverse effects of the challenging economic environment. Financial As a result of unsettled conditions in global capital markets, demand for corporate financial print remained at extremely low levels throughout the half-year in the USA, UK and Europe. We have sustained our market share in this depressed market. In France, we were particularly successful in winning a very high proportion of the few global transactions that were launched. The cost base of this business has been further reduced both in the UK and USA. We are also maintaining our share of the market for Annual Reports and Accounts, the majority of which are produced in the second half of our financial year. Magazines In the UK falling advertising demand, especially in the travel and internet related sectors, has resulted in reduced paginations and a number of title closures, the effect of which has been exacerbated by a surplus of web offset capacity. The fashion and lifestyle sectors were more resilient. Generally, the consumer titles which we print, many of which are market leaders in their fields, have maintained circulation levels. At the end of the period, we announced proposals to close our factory at Gillingham in Kent which should enable us to take advantage of under-utilised capacity at our other sites. Similar factors have affected our business serving the US market for these products, where the reduction in page count in the travel and leisure sectors has been more marked, but where internet related titles represent a smaller proportion of our volumes. Multimedia Levels of demand for both music and multimedia related products deteriorated and adversely affected our plants in both the UK and Holland. As yet we have not experienced any significant growth in our customers' requirements for DVD-related packaging. Pricing continues to be extremely competitive and short term volatility in demand makes it hard to achieve acceptable utilisation. Balance Sheet The Group's financial position remains strong. Our commitment to continued investment in the business is undiminished. In the last eighteen months we have invested in excess of Â£50 million in further improving the flexibility and productivity of our equipment. Shareholders' funds at the end of the period stood at over Â£237 million and net debt was below Â£4 million. Outlook In the UK book market, supply and demand have recently moved towards equilibrium. All our other markets are experiencing significant excess capacity and there is little sign of an upturn in demand. Against this background, progress will be hard to achieve in the short term. In the longer term, the steps recently announced to reduce costs and rationalise capacity, together with our long standing policy of investing in the most modern and flexible equipment, make us well placed to respond to an upturn when it occurs. CONSOLIDATED PROFIT AND LOSS ACCOUNT 26 weeks to 1 February 2002 ---------------------------------------------- Before Exceptional exceptional items and 26 weeks to 53 weeks to items and goodwill 26 January 3 August goodwill amortisation 2001 2001 amortisation (note 6) Total (Restated) (Restated) ---------------------- ---------------- ----------- -------------- --------------- Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Turnover 241,124 - 241,124 233,309 498,154 (note 2) Cost of (183,468) (4,007) (187,475) (167,907) (361,063) sales ----------- ---------- ----------- ---------- --------- Gross 57,656 (4,007) 53,649 65,402 137,091 profit Sales (16,368) (503) (16,871) (14,247) (31,223) and distribution costs Administrative expenses Goodwill - (1,096) (1,096) (394) (1,546) amortisation Exceptional - (4,074) (4,074) - - items Other (24,787) - (24,787) (22,498) (46,151) administrative expenses (24,787) (5,170) (29,957) (22,892) (47,697) Other 362 (845) (483) 655 889 operating income/(costs) ----------- ----------- --------- ---------- --------- Operating 16,863 (10,525) 6,338 28,918 59,060 profit (note 2) Interest 402 - 402 1,624 2,563 receivable Interest (649) - (649) (270) (1,164) payable ----------- ------------ --------- --------- ---------- Profit 16,616 (10,525) 6,091 30,272 60,459 before taxation Taxation (5,397) 3,277 (2,120) (9,478) (18,628) (note 3) ----------- ------------- ---------- ---------- ---------- Profit 11,219 (7,248) 3,971 20,794 41,831 after taxation Dividends (5,137) - (5,137) (5,243) (17,711) (note 4) ------------ ------------ --------- ---------- ---------- Retained 6,082 (7,248) (1,166) 15,551 24,120 (loss)/profit ======== ======== ====== ======= ======= Basic 3.87p 19.97p 40.20p earnings per share (note 5) ======= ======= ======= Diluted 3.86p 19.83p 40.00p earnings per share (note 5) ======= ======= ======= Earnings per share before exceptional items and goodwill amortisation 10.93p 20.33p 41.59p (note 5) ========= ======== ======== Dividend 5.00p 5.00p 17.15p per ordinary share ======= ======== ======== Comparative figures for the 26 weeks to 26 January 2001 and the 53 weeks to 3 August 2001 have been restated to reflect a change in accounting policy for deferred taxation following the adoption of FRS19 'Deferred Taxation' (see notes 1 and 3). All transactions are derived from continuing activities. CONSOLIDATED BALANCE SHEET 1 February 26 January 3 August 2002 2001 2001 (Restated) (Restated) ------------------ --------------------- --------------------- Â£'000 Â£'000 Â£'000 Fixed assets Intangible assets 43,228 17,590 44,328 Tangible assets 205,640 179,962 205,580 ---------------- ---------------- --------------- 248,868 197,552 249,908 ---------------- -------------- -------------- Current assets Stocks 17,343 18,014 21,134 Debtors 82,321 81,534 87,521 Cash at bank and in hand 26,826 63,761 32,961 --------------- --------------- -------------- 126,490 163,309 141,616 Creditors - due within one year (114,889) (103,720) (137,827) --------------- ---------------- --------------- Net current assets 11,601 59,589 3,789 --------------- ---------------- --------------- Total assets less current liabilities 260,469 257,141 253,697 Creditors - due after more than one year (3,295) (4,930) (3,817) Provisions and deferred taxation (18,303) (14,518) (10,887) Deferred income (1,728) (1,955) (1,786) ---------------- ---------------- -------------- 237,143 235,738 237,207 ========= ========= ======== Capital and reserves Called up share capital 10,271 10,419 10,256 Share premium account 44,070 42,419 43,568 Capital redemption reserve 1,238 1,040 1,238 Profit and loss account 181,564 181,860 182,145 ---------------- --------------- --------------- Equity shareholders' funds 237,143 235,738 237,207 ========= ========= ========= This interim statement was approved by the Board of Directors on 23 April 2002. SUMMARISED CONSOLIDATED CASH FLOW STATEMENT 26 weeks to 26 weeks to 53 weeks to 1 February 26 January 3 August 2002 2001 2001 --------------- ----------------- ----------------- Â£'000 Â£'000 Â£'000 Net cash inflow from operating activities 32,262 33,491 81,618 Returns on investments and servicing of finance (305) 1,396 1,463 Tax paid (8,614) (8,144) (21,781) Capital expenditure (16,670) (11,188) (35,212) Acquisitions - (4,591) (35,489) Equity dividends paid (12,467) (12,654) (17,866) ---------------- ----------------- --------------- Net cash outflow before financing (5,794) (1,690) (27,267) Financing Issue of shares 517 928 2,112 Purchase of own shares - - (8,370) (Decrease)/increase in debt (784) (1,319) 1,292 ---------------- ---------------- ---------------- Decrease in cash (6,061) (2,081) (32,233) ========== ========= ========= NOTES TO THE SUMMARISED CONSOLIDATED CASH FLOW STATEMENT 26 weeks to 26 weeks to 53 weeks to 1 February 26 January 3 August 2002 2001 2001 ------------------ ----------------- ---------------- Â£'000 Â£'000 Â£'000 Net cash inflow from operating activities Operating profit 6,338 28,918 59,060 Depreciation 16,734 14,449 31,556 Goodwill amortisation 1,096 394 1,546 Other non cash movements 6,670 (977) (1,542) Changes in working capital 1,283 (9,293) (9,122) Other items 141 - 120 ----------------- ---------------- ---------------- 32,262 33,491 81,618 ======== ========= ========= NOTES TO THE SUMMARISED CONSOLIDATED CASH FLOW STATEMENT Continued 26 weeks to 26 weeks to 53 weeks to 1 February 26 January 3 August 2002 2001 2001 -------------------- ------------------ ----------------- Â£'000 Â£'000 Â£'000 Reconciliation of net cash flow to movement in net (debt)/funds Decrease in cash (6,061) (2,081) (32,233) in the period Cash outflow/(inflow) from decrease/(increase) in debt and lease 784 1,319 (1,292) financing ---------------- -------------- ---------------- Change in net funds resulting from (5,277) (762) (33,525) cash flows Loans acquired - - (20,815) with subsidiary Exchange (199) 268 (670) adjustments --------------- --------------- --------------- Movement in net (5,476) (494) (55,010) funds in the period Opening net funds 1,740 56,750 56,750 ---------------- ---------------- -------------- Closing net (3,736) 56,256 1,740 (debt)/funds ========== ========= ======== Other 3 August non cash Exchange 1 February 2001 Cashflow Changes Movements 2002 --------------- ----------------- ------------------ ------------------- ---------------- Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Analysis of net (debt)/funds Cash at bank and 32,961 (6,293) - 158 26,826 in hand Overdrafts (232) 232 - - - ------------- (6,061) Bank loans - due within one (26,033) 262 (209) (359) (26,339) year due after one year (2,145) - 209 2 (1,934) Finance leases (2,811) 522 - - (2,289) -------------- --------------- ---------------- --------------- -------------- 1,740 (5,277) - (199) (3,736) ========= ======== ========= ========= ======== STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 26 weeks to 26 weeks to 53 weeks to 1 February 26 January 3 August 2002 2001 2001 (Restated) (Restated) ---------------- -------------------- ------------------- Â£'000 Â£'000 Â£'000 Profit 3,971 20,794 41,831 after taxation Exchange 585 1,540 1,626 differences ----------------- ------------------- ------------------- Total recognised gains and losses relating to 4,556 22,334 43,457 the period Prior year - (802) (802) adjustment ----------------- ------------------- ------------------- Total recognised gains and losses since last 4,556 21,532 42,655 Annual Report MOVEMENTS IN SHAREHOLDERS' FUNDS 26 weeks to 26 weeks to 53 weeks to 1 February 26 January 3 August 2002 2001 2001 (Restated) (Restated) ----------------- ------------------- ------------------- Â£'000 Â£'000 Â£'000 Opening 237,834 218,521 218,521 shareholders ' funds Prior year (627) (802) (802) adjustment ----------------- ------------------ ----------------- Opening 237,207 217,719 217,719 shareholders ' funds (as restated) Total 4,556 22,334 43,457 recognised gains and losses Dividends (5,137) (5,243) (17,711) Issue of 517 928 2,112 ordinary shares Purchase of - - (8,370) own shares ------------------ ----------------- ------------------ Closing 237,143 235,738 237,207 shareholders ' funds ========== =========== =========== The prior year adjustments shown in the total recognised gains and losses and the movement in shareholders' funds for the periods ended 1 February 2002, 26 January 2001 and 3 August 2001 are a result of the adoption of FRS19 (see notes 1 and 3). NOTES TO THE FINANCIAL STATEMENTS 1. Basis of preparation The interim statements have been prepared in accordance with the accounting policies set out in the Group's Annual Report for 2001 except for the adoption of Financial Reporting Standard 19 'Deferred Taxation' (FRS19). Deferred taxation is now provided on all non-permanent timing differences which have originated but not reversed by the balance sheet date. Deferred taxation provisions at 26 January 2001 and 3 August 2001 have been restated by a prior year adjustment to reserves with a consequent tax credit in the profit and loss account of prior periods to reflect this change in policy. As permitted by FRS19, the group has adopted an accounting policy of not discounting deferred taxation provisions to reflect the time value of money. Deferred taxation is not provided on gains on sales of assets deferred by rollover relief, or taxation arising on the distribution of retained earnings of overseas subsidiaries. The interim statements are neither audited nor reviewed. The financial information set out in these statements does not comprise statutory accounts for the purposes of Section 240 of the Companies Act 1985. The abridged information for the fifty-three weeks to 3 August 2001 has been prepared from the Group's statutory accounts for that period, which have been filed with the Registrar of Companies. The auditors' report on the accounts of the Group for that period was unqualified and did not contain a statement under either Section 237(2) or Section 237(3) of the Companies Act 1985. 2. Geographical analysis The geographical analysis of turnover and operating profit by origin is stated below: 26 weeks to 26 weeks to 53 weeks to 1 February 26 January 3 August 2002 2001 2001 ------------------ ------------------ ------------------ Â£'000 Â£'000 Â£'000 Turnover United Kingdom 152,465 171,063 340,875 United States of America 76,523 48,024 130,878 Rest of the World 12,136 14,222 26,401 ---------------- ---------------- ---------------- 241,124 233,309 498,154 ========== ========== ========= Operating profit/(loss) United Kingdom 7,448 25,806 53,976 United States of America 1,760 2,651 6,962 Rest of the World (1,774) 855 (332) ------------------ ------------------ ----------------- 7,434 29,312 60,606 Goodwill amortisation - USA (1,096) (394) (1,546) ----------------- ----------------- ----------------- 6,338 28,918 59,060 ========== ========== ========== Operating profit/(loss) before exceptional items and goodwill amortisation United Kingdom 16,054 25,806 53,976 United States of America 1,815 2,651 6,962 Rest of the World (1,006) 855 (332) ------------------ ----------------- ----------------- 16,863 29,312 60,606 =========== =========== ========== The directors consider that the Group has only one class of business and consequently no further analysis of turnover or profit is given. 3. Taxation The tax charge is analysed below: 26 weeks to 26 weeks to 53 weeks to 1 February 26 January 3 August 2002 2001 2001 (Restated) (Restated) ---------------- -------------------- ------------------- Â£'000 Â£'000 Â£'000 United Kingdom taxation 2,901 9,004 17,697 Overseas taxation (781) 474 931 --------------- -------------- --------------- 2,120 9,478 18,628 ---------------- ----------------- ---------------- The taxation charge for the period ended 1 February 2002 is based on the estimated charge for the fifty-two weeks to 2 August 2002. The effect of adopting FRS19, and therefore providing taxation on non-permanent timing differences, is to increase last year's interim profit after tax by Â£88,000 and final profit after tax by Â£175,000. The adoption of FRS19 also increases deferred taxation provisions by Â£627,000, Â£714,000 and Â£802,000 at 3 August 2001, 26 January 2001 and 30 July 2000 respectively. The profit after tax for the twenty-six weeks ended 1 February 2002 would have been materially unchanged if FRS19 had not been adopted. 4. Dividends The directors have declared an interim dividend of 5.00p (2001 - 5.00p) net per share. The payment date will be 5 June 2002 and the record date will be 3 May 2002. 5. Earnings per share The calculation of the basic earnings per share is based on profit after taxation as disclosed in the profit and loss account of Â£3,971,000 (2001: January Â£20,794,000; July Â£41,831,000). Earnings per share before exceptional items and goodwill amortisation is calculated by adding back exceptional items and goodwill amortisation, as adjusted for taxation, to the profit after taxation. Basic earnings per share and earnings per share before exceptional items and goodwill amortisation are calculated on a weighted average of 102.6 million (2001: January - 104.1 million; July - 104.1 million) shares in issue during the period. The calculation of the diluted earnings per share is based on profit after taxation as disclosed in the profit and loss account and on a diluted weighted average of 103.0 million (2001: January - 104.8 million; July - 104.6 million) shares during the period. 6. Exceptional items and goodwill amortisation Goodwill amortisation of Â£1,096,000 was charged in the twenty-six weeks ended 1 February 2002. The exceptional items of Â£9,429,000, before taxation, relate to rationalisation measures completed or announced throughout the Group. They include redundancy costs, losses and provisions for losses on asset disposals less realised gains, and provision for lease termination. No exceptional items arose in the twenty-six weeks ended 26 January 2001 or in the fifty-three weeks ended 3 August 2001. 7. A copy of the interim statement will be sent to all shareholders. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Sivota (SIV)

Full Archive

UK 100

Latest directors dealings

All directors dealings today