Transition to US Dollar reporting

RNS Number : 2652O

Volex PLC

15 September 2011

 



For immediate release                                                                                           15 September 2011

VOLEX PLC

('Volex' or the 'Group')

Transition to US Dollar reporting

Restatement of historical financial information in US Dollars

 

As communicated in our annual financial statements for the year to 3 April 2011 and the Interim Management Statement dated 25 July 2011, the Group is changing its presentation currency from Pounds Sterling ('GBP') to US Dollars ('USD'). 

This transition is being made for the following reasons:

1.   Following the disposal of our Wiring Harness division in 2009, the Group no longer operates any manufacturing facilities in the UK and the proportion of GBP denominated business activity carried out by the Group has been decreasing, with the Group's revenues and profits increasingly generated in USD.  For the 52 weeks to 3 April 2011, less than 1% of Group revenue was invoiced in GBP.

2.   Over two thirds of the Group's revenue is produced by Group entities with USD as their functional currency.  Transition to a USD reporting currency, therefore, better reflects the underlying trading performance, reducing translation related distortions in reported results caused by exchange rate movements.  Furthermore the transition to a USD reporting currency better aligns our internal and external reporting; and

3.   USD reporting aids comparison with other international cable and interconnect solutions businesses, which predominantly report in US Dollars.

The interim consolidated financial statements for the 6 months to 2 October 2011 will be released on 2 November 2011 and will be presented in USD.  All subsequent financial information will also be prepared using USD as the presentation currency.  In accordance with relevant accounting standards, comparative information will be provided in USD.  To assist shareholders and other users of the accounts with this change, this announcement provides selected audited historical financial information for the years to 3 April 2011 and 4 April 2010 restated in USD ('the restated financial information'), together with a special purpose audit report thereon. 

In addition, the Company has provided selected unaudited historical information for the years to 5 April 2009 and 30 March 2008 and selected half-yearly and quarterly analyses for information purposes.  Although the restatement of these earlier periods has not been audited, the same translation methodology has been applied.

Financial Highlights

$'million (from continuing operations)	FY11 (audited)	FY10 (audited)	FY09 (unaudited*)	FY08 (unaudited*)
Revenue	490.0	365.4	451.4	448.3
Operating profit before non-recurring items and share based payments	26.1	21.3	18.1	14.7
Net assets	38.3	19.2	9.2	45.5
Diluted earnings per share (cents)	28.2	14.6	4.9	(1.3)
Adjusted diluted earnings per share (cents)**	32.4	23.2	16.8	7.7
Closing Rate (USD:GBP)	1.6111	1.5169	1.4738	2.0095
Average Rate (USD:GBP)	1.5510	1.5958	1.6924	2.0057

*    While the historic GBP reported figures were audited and an unqualified audit opinion issued, the restatement of these figures into USD has not been audited.  The same translation methodology as for FY11 and FY10 has been applied.

** Earnings per share before non-recurring items and share based payment charges.

For further information please contact:

Volex plc                                                                                                 

Ray Walsh, Group Chief Executive                                                           [phone]

Andrew Cherry, Group Finance Director                                                   [phone]

 

Buchanan Communications

Charles Ryland / Helen Chan                                                                    [phone]

Restated financial information

Consolidated income statement                                            

For the 52 weeks ended 3 April 2011 (52 weeks ended 4 April 2010)

	Note	52 weeks to  3 April 2011	52 weeks to  4 April 2010
		$'000	$'000
Revenue	2	490,009	365,437
Cost of sales		(397,940)	(291,772)
Gross profit		92,069	73,665
Operating expenses		(68,596)	(57,309)
Operating profit	2	23,473	16,356
Analysed as:
Operating profit before non-recurring items and share based payments		26,075	21,313
Non-recurring items	3	-	(4,943)
Operating profit before share based payments		26,075	16,370
Share based payments charge		(2,602)	(14)
Operating profit		23,473	16,356
Finance income		222	114
Finance costs		(3,383)	(5,442)
Profit on ordinary activities before taxation		20,312	11,028
Taxation		(3,660)	(2,604)
Profit for the period attributable to the owners of the parent		16,652	8,424
Earnings per share (cents)*
Basic	4	29.3	14.8
Diluted	4	28.2	14.6

* Earnings per share before non-recurring items and share based payment charges is shown in note 4.                                                                                                                                                     

Restated financial information

Consolidated statement of comprehensive income  

For the 52 weeks ended 3 April 2011 (52 weeks ended 4 April 2010)

	52 weeks to  3 April 2011	52 weeks to  4 April 2010
	$'000	$'000
Profit for the period	16,652	8,424
Other comprehensive income:
Gain on hedge of net investment taken to equity	827	977
Exchange differences on translation of foreign operations	(1,843)	1,268
Actuarial gain / (loss) on defined benefit pension schemes	1,500	(734)
Other comprehensive income for the period	484	1,511
Tax relating to components of other comprehensive income	-	-
Other comprehensive income for the period	484	1,511
Total comprehensive income for the period attributable to the owners of the parent	17,136	9,935

Restated financial information

Consolidated statement of financial position                                     

As at 3 April 2011 (4 April 2010)

	Note	3 April 2011 $'000	4 April 2010 $'000
Non-current assets
Goodwill		3,109	2,928
Other intangible assets		2,120	998
Property, plant and equipment		12,465	11,378
Trade and other receivables		322	323
Deferred tax asset		2,157	407
		20,173	16,034
Current assets
Inventories		51,889	41,718
Trade and other receivables		118,127	91,235
Current tax assets		722	584
Cash and bank balances	5	20,397	27,638
		191,135	161,175
Total assets		211,308	177,209
Current liabilities
Borrowings	5	27,542	428
Obligations under finance leases	5	195	97
Trade and other payables		127,154	93,970
Current tax liabilities		4,393	8,194
Retirement benefit obligation		251	235
Provisions		2,940	6,151
Derivative financial instruments		296	563
		162,771	109,638
Net current assets		28,364	51,537
Non-current liabilities
Borrowings	5	-	38,463
Obligations under finance leases	5	108	135
Deferred tax liabilities		2,309	99
Retirement benefit obligation		1,883	3,384
Provisions		5,744	6,165
Non-equity preference shares		207	121
		10,251	48,367
Total liabilities		173,022	158,005
Net assets		38,286	19,204
Equity attributable to owners of the parent
Share capital		28,180	25,940
Share premium account		2,586	2,586
Hedging and translation reserve		(4,182)	(3,166)
Own shares		(2,240)	-
Accumulated gains / (losses)		13,942	(6,156)
Total equity		38,286	19,204

Restated financial information

Consolidated statement of changes in equity

For the 52 weeks ended 3 April 2011 (52 weeks ended 4 April 2010)

	Share capital	Share premium account	Hedging and translation reserve	Own shares	Accumulated gains / (losses)	Total equity
	$'000	$'000	$'000	$'000	$'000	$'000
Balance at 5 April 2009	25,940	2,586	(5,411)	-	(13,877)	9,238
Profit for the period attributable to the owners of the parent	-	-	-	-	8,424	8,424
Other comprehensive income / (loss) for the period	-	-	2,245	-	(734)	1,511
Total comprehensive income / (loss) for the period	-	-	2,245	-	7,690	9,935
Reserve entry for share option charges	-	-	-	-	31	31
Balance at 4 April 2010	25,940	2,586	(3,166)	-	(6,156)	19,204
Profit for the period attributable to the owners of the parent	-	-	-	-	16,652	16,652
Other comprehensive income / (loss) for the period	-	-	(1,016)	-	1,500	484
Total comprehensive income / (loss) for the period	-	-	(1,016)	-	18,152	17,136
Issue of share capital	2,240	-	-	-	-	2,240
Own shares acquired in the period	-	-	-	(2,240)	-	(2,240)
Reserve entry for share option charges	-	-	-	-	1,946	1,946
Balance at 3 April 2011	28,180	2,586	(4,182)	(2,240)	13,942	38,286

 

Restated financial information

Consolidated statement of cash flows

For the 52 weeks ended 3 April 2011 (52 weeks ended 4 April 2010)

	Note	52 weeks to  3 April 2011	52 weeks to  4 April 2010
		$'000	$'000
Profit for the period		16,652	8,424
Adjustments for:
Finance income		(222)	(114)
Finance costs		3,383	5,442
Income tax expense		3,660	2,604
Depreciation of property, plant and equipment		3,041	3,511
Amortisation of intangible assets		390	147
Loss on disposal of property, plant and equipment		23	10
Share option charge		2,602	14
Decrease in provisions		(4,347)	(2,076)
Operating cash flow before movements in working capital		25,182	17,962
(Increase) / decrease in inventories		(9,340)	(5,352)
(Increase) / decrease in receivables		(24,708)	(837)
Increase / (decrease) in payables		29,501	13,464
Movement in working capital		(4,547)	7,275
Cash generated by operations		20,635	25,237
Cash generated before non-recurring items		20,635	29,507
Cash utilised in respect of non-recurring items		-	(4,270)
Taxation paid		(6,774)	(2,937)
Interest paid		(2,774)	(3,508)
Net cash (used in) / generated from operating activities		11,087	18,792
Cash flow from investing activities
Interest received		222	114
Proceeds on disposal of intangible assets, property, plant and equipment		101	116
Purchases of property, plant and equipment		(4,363)	(2,585)
Purchases of intangible assets		(1,200)	(378)
Net cash outflow arising on disposal of operations		(247)	(3,015)
Net cash used in investing activities		(5,487)	(5,748)
Cash flow before financing activities		5,600	13,044
Cash (used) / generated before non-recurring items		5,847	20,329
Net cash outflow on disposal of operations		(247)	(3,015)
Cash utilised in respect of non-recurring items		-	(4,270)
Cash flow from financing activities
Repayment of borrowings	5	(14,387)	(9,000)
Refinancing costs paid	5	(24)	(2,283)
Repayments of obligations under finance leases	5	(144)	(3)
Net cash used in financing activities		(14,555)	(11,286)
Net (decrease) / increase in cash and cash equivalents		(8,955)	1,758
Cash and cash equivalents at beginning of period	5	27,210	24,873
Effect of foreign exchange rate changes		270	579
Cash and cash equivalents at end of period	5	18,525	27,210

Notes to the restated financial information

1.  Basis of preparation

The restated financial information should be read in conjunction with the annual financial statements for the 52 week period ended 3 April 2011, which have been prepared in accordance with IFRSs as adopted by the European Union.

The restated financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.  The statutory accounts for the 52 weeks ended 3 April 2011 have been filed with the Registrar of Companies for England and Wales and have been reported on by the Group's auditors.  The Report of the Auditors was not qualified and did not contain a statement under Section 498 of the Companies Act 2006.

Presentation of financial information

Volex plc will present its consolidated financial statements in US Dollars ('USD') with effect from 4 April 2011.  In accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors this change in presentational currency will be applied retrospectively.

For the 52 weeks ended 3 April 2011 and 4 April 2010, the Company has presented in USD a consolidated income statement, a consolidated statement of comprehensive income, a consolidated statement of changes in equity and a consolidated cash flow statement, along with a consolidated statement of financial position as at 3 April 2011 and 4 April 2010 and accompanying notes.  This financial information will form the basis of the comparative financial information expected to be included in the first complete set of financial statements of the Group presented in USD for the 52 week period ended 1 April 2012.

In order to meet the IAS 21 requirements with respect to a change in presentational currency, the statutory financial information as initially reported in the Group's Annual Reports for the 52 week periods ended 3 April 2011 and 4 April 2010 has been restated from Pounds Sterling into US Dollars using the procedures as outlined below:

·     assets and liabilities denominated in non-USD currencies were translated into USD at period end closing rates of exchange;

·     share capital, share premium and own reserves were translated at the historic rates prevailing at 5 April 2004 (i.e. the transition date to IFRS) or the subsequent dates of transactions;

·     non-USD trading results were translated into USD at average rates of exchange;

·     the cumulative hedging and translation reserve was set to nil at 5 April 2004 (i.e. the transition date to IFRS). All subsequent foreign exchange translation movements comprising differences on the retranslation of the opening net assets of non-USD subsidiaries and the retranslation of the trading results of non-USD subsidiaries have been charged to the hedging and translation reserve; and

·     exchange differences recognised directly in the hedging and translation reserve arising from foreign exchange hedging instruments or monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur were translated into USD at average rates of exchange.

No events since the signing of the 3 April 2011 and 4 April 2010 financial statements have been taken into consideration in the restatement of the balances into USD

All exchange rates used were extracted from the Group's underlying financial records.  The exchange rates used were as follows:

 

USD / GBP exchange rate	FY2011	FY2010	FY2009
Closing Rate	1.6111	1.5169	1.4738
Average Rate	1.5510	1.5958	1.6924

Notes to the restated financial information

2.  Business and geographical segments

Business segments

	52 weeks to  3 April 2011 $'000	52 weeks to  4 April 2010 $'000
Revenue
Consumer	304,336	222,379
Telecoms/Datacoms	109,948	94,766
Healthcare	41,536	30,770
Industrial	34,189	17,522
	490,009	365,437

	52 weeks to  3 April 2011 $'000	52 weeks to  4 April 2010 $'000
Gross profit
Consumer	53,609	49,053
Telecoms/Datacoms	20,653	13,994
Healthcare	9,735	6,649
Industrial	8,072	3,969
	92,069	73,665
Unallocated overhead costs	(65,994)	(52,352)
Non-recurring items	-	(4,943)
Operating profit before share based payments	26,075	16,370
Share based payments	(2,602)	(14)
Operating profit	23,473	16,356
Finance income	222	114
Finance costs	(3,383)	(5,442)
Profit before tax	20,312	11,028
Tax	(3,660)	(2,604)
Profit after tax	16,652	8,424

3.  Non-recurring items

	52 weeks to  3 April 2011 $'000	52 weeks to  4 April 2010 $'000
Continuing operations
Corporate restructuring	-	3,439
Facilities rationalisation	-	1,504
	-	4,943

Notes to the restated financial information

4.  Earnings per ordinary share

Earnings per share

The calculations of the basic and diluted earnings per share are based on the following data:

Earnings	52 weeks to  3 April 2011 $'000	52 weeks to  4 April 2010 $'000
Profit for the purpose of basic and diluted earnings per share being net profit attributable to equity holders of the parent	16,652	8,424
Adjustments for:
Share based payments charge	2,602	14
Tax effect of above adjustment	(127)	-
Normalised earnings	19,127	8,438
Adjustments for:
Non-recurring items	-	4,943
Earnings for the purpose of adjusted earnings per share	19,127	13,381
Weighted average number of ordinary shares	No. shares	No. shares
Weighted average number of ordinary shares for the purpose of basic earnings per share	56,821,563	56,821,563
Effect of dilutive potential ordinary shares - share options	2,141,432	958,703
Weighted average number of ordinary shares for the purpose of diluted earnings per share	58,962,995	57,780,266
Basic earnings per share	Cents	Cents
Basic earnings per share	29.3	14.8
Adjustments for:
Share based payments charge	4.6	-
Tax effect of above adjustment	(0.2)	-
Normalised basic earnings per share	33.7	14.8
Adjustments for:
Non-recurring items	-	8.7
Adjusted basic earnings per share	33.7	23.5
Diluted earnings per share
Diluted earnings per share	28.2	14.6
Adjustments for:
Share based payments charge	4.4	-
Tax effect of above adjustment	(0.2)	-
Normalised diluted earnings per share	32.4	14.6
Adjustments for:
Non-recurring items	-	8.6
Adjusted diluted earnings per share	32.4	23.2

The normalised earnings per share has been calculated on the basis of profit before non-recurring items and share based payments, net of tax. The Directors consider that this earnings per share calculation gives a better understanding of the Group's earnings per share in the current and prior period.

Notes to the restated financial information

5.  Analysis of net debt

	4 April 2010 $'000	Cash flow $'000	Exchange movement $'000	Other non-cash changes £'000	3 April 2011 £'000
Cash and cash equivalents	27,210	(8,955)	270	-	18,525
Bank loans	(39,966)	14,387	(905)	-	(26,484)
Finance leases	(232)	144	(16)	(199)	(303)
Debt issue costs	1,503	24	65	(778)	814
Net debt	(11,485)	5,600	(586)	(977)	(7,448)

		3 April 2011 $'000	4 April 2010 $'000
Per balance sheet:
Cash and bank balances		20,397	27,638
Borrowings - short term		(27,542)	(428)
Obligations under finance leases - short term		(195)	(97)
Borrowings - long term		-	(38,463)
Obligations under finance leases - long term		(108)	(135)
Net debt		(7,448)	(11,485)

Special Purpose Auditors' Report of PricewaterhouseCoopers LLP to Volex plc (the 'Company') on the change in presentational currency applied to the Company's prior periods' financial information

We have audited the consolidated statement of financial position of Volex plc ('the Company') as at 3 April 2011 and 4 April 2010, the related consolidated income statements, consolidated statements of comprehensive income, consolidated statements of change in equity, consolidated statements of cash flow and accompanying notes for the 52 week periods then ended presented in US Dollars (the 'audited restated financial information').

Financial information for the 52 week periods ended 3 April 2011 and 4 April 2010 has been restated from Pounds Sterling into US Dollars, as described in Note 1. For each of the aforementioned periods the Company has presented a consolidated statement of financial position, consolidated income statement, consolidated statement of comprehensive income, consolidated statement of change in equity and consolidated statement of cash flow.  This information will form the basis of the comparative financial information expected to be included in the first complete set of financial statements and accompanying information of the Company presented in US Dollars for the 52 week period ended 1 April 2012.

Respective responsibilities of Directors and PricewaterhouseCoopers LLP

The Directors of the Company are responsible for the preparation of the audited restated financial information which has been prepared as part of the Company's transition to US Dollar presentational currency.

Our responsibility is to audit the audited restated financial information in accordance with the terms of our engagement and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.

Under the terms of our engagement we are required to report to you our opinion as to whether the audited restated financial information has been properly prepared, in all material respects, in accordance with the basis of preparation set out in Note 1. This report, including the opinion, has been prepared for, and only for, the Company for the purposes of assisting with the Company's change in presentational currency and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of the audit of the US Dollar financial information

This audit involves obtaining evidence about the amounts and disclosures included within the audited restated financial information sufficient to give reasonable assurance that the audited restated financial information is free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the basis of preparation is appropriate to the Company's circumstances and has been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the audited restated financial information.

Opinion

In our opinion the audited restated financial information has been properly prepared, in all material respects, in accordance with the basis of preparation set out in Note 1.

PricewaterhouseCoopers LLP

Chartered Accountants

London

14 September 2011

Unaudited additional years

 

Restated financial information (unaudited)

Consolidated income statement  

For the 53 weeks ended 5 April 2009 (52 weeks ended 30 March 2008)

		Unaudited 53 weeks to  5 April 2009	Unaudited 52 weeks to 30 March 2008
		$'000	$'000
Continuing operations
Revenue		451,429	448,332
Cost of sales		(380,885)	(386,682)
Gross profit		70,544	61,650
Operating expenses		(59,257)	(52,036)
Operating profit		11,287	9,614
Analysed as:
Operating profit before non-recurring items and share based payments		18,072	14,708
Non-recurring items		(6,988)	(5,346)
Operating profit before share based payments		11,084	9,362
Share based payments charge		203	252
Operating profit		11,287	9,614
Finance income		382	411
Finance costs		(5,441)	(5,718)
Profit on ordinary activities before taxation		6,228	4,307
Taxation		(3,441)	(5,036)
Profit / (loss) for the period from continuing operations attributable to the owners of the parent		2,787	(729)
Discontinued operations
Loss for the period from discontinued operations attributable to owners of the parent		(31,659)	(6,031)
Loss for the period attributable to the owners of the parent		(28,872)	(6,760)
Earnings / (loss) per share (cents)
From continuing operations
Basic		4.9	(1.3)
Diluted		4.9	(1.3)
From continuing and discontinued operations
Basic		(50.8)	(11.9)
Diluted		(50.8)	(11.9)
Adjusted earnings / (loss) per share (cents)*
From continuing operations
Basic		16.8	7.7
Diluted		16.8	7.7

* Earnings per share before non-recurring items and share based payment charges.                                     

Restated financial information (unaudited)

Consolidated statement of financial position

As at 5 April 2009 (30 March 2008)

		Unaudited 5 April 2009 $'000	Unaudited 30 March 2008 $'000
Non-current assets
Goodwill		2,844	3,878
Other intangible assets		835	525
Property, plant and equipment		11,849	15,642
Deferred tax asset		1,020	627
		16,548	20,672
Current assets
Inventories		35,570	70,433
Trade and other receivables		88,061	128,359
Current tax assets		83	709
Cash and bank balances		24,873	8,675
		148,587	208,176
Total assets		165,135	228,848
Current liabilities
Obligations under finance leases		3	88
Trade and other payables		83,023	105,231
Current tax liabilities		8,610	8,727
Retirement benefit obligation		225	299
Provisions		5,505	6,750
Liability for share based payments		21	431
Derivative financial instruments		365	-
		97,752	121,526
Net current assets		50,835	86,650
Non-current liabilities
Borrowings		46,663	50,806
Trade and other payables		930	-
Deferred tax liabilities		-	237
Retirement benefit obligation		2,480	3,040
Provisions		7,953	7,583
Non-equity preference shares		119	161
Liability for share based payments		-	8
		58,145	61,835
Total liabilities		155,897	183,361
Net assets		9,238	45,487
Equity attributable to owners of the parent
Share capital		25,940	25,940
Share premium account		2,586	2,586
Hedging and translation reserve		(5,411)	1,561
Own shares		-	-
Accumulated (losses) / gains		(13,877)	15,400
Total equity		9,238	45,487

Unaudited half-yearly and quarterly information

 

Restated financial information (unaudited)

Half-yearly information

Consolidated income statement

For FY2011 (FY2010)

	FY2010				FY2011
	26 weeks ended 4 October 2009	26 weeks ended 4 April 2010	52 weeks ended 4 April 2010		26 weeks ended 3 October 2010	26 weeks ended 3 April 2011	52 weeks ended 3 April 2011
	$'000	$'000	$'000		$'000	$'000	$'000
Revenue
Consumer	103,963	118,416	222,379		151,156	153,180	304,336
Telecoms/Datacoms	50,321	44,445	94,766		52,523	57,425	109,948
Healthcare	15,605	15,165	30,770		18,664	22,872	41,536
Industrial	5,834	11,688	17,522		16,011	18,178	34,189
Group	175,723	189,714	365,437		238,354	251,655	490,009
Gross profit
Consumer	21,980	27,073	49,053		27,508	26,101	53,609
Telecoms/Datacoms	8,608	5,386	13,994		10,412	10,241	20,653
Healthcare	3,312	3,337	6,649		5,166	4,569	9,735
Industrial	1,433	2,536	3,969		3,751	4,321	8,072
Group	35,333	38,332	73,665		46,837	45,232	92,069
Administrative expenses	(25,543)	(26,809)	(52,352)		(34,046)	(31,948)	(65,994)
Adjusted operating profit	9,790	11,523	21,313		12,791	13,284	26,075
Non-recurring items	(4,238)	(705)	(4,943)		-	-	-
Normalised operating profit	5,552	10,818	16,370		12,791	13,284	26,075
Share based payment charge	(2)	(12)	(14)		(355)	(2,247)	(2,602)
Operating profit	5,550	10,806	16,356		12,436	11,037	23,473
Financing costs, net	(2,825)	(2,503)	(5,328)		(1,832)	(1,329)	(3,161)
Profit before tax	2,725	8,303	11,028		10,604	9,708	20,312
Taxation	(1,244)	(1,360)	(2,604)		(2,258)	(1,402)	(3,660)
Profit after tax	1,481	6,943	8,424		8,346	8,306	16,652
Earnings per share (cents)
Basic	2.6	12.2	14.8		14.7	14.6	29.3
Diluted	2.6	12.0	14.6		13.9	14.3	28.2
Adjusted earnings per share (cents)*
Basic	10.1	13.4	23.5		15.3	18.4	33.7
Diluted	10.0	13.2	23.2		14.4	18.0	32.4

* Earnings per share before non-recurring items and share based payment charges.                  

Restated financial information (unaudited)

Half-yearly information

Consolidated income statement

For 26 weeks to 5 October 2008 (26 weeks to 30 September 2007)

		Unaudited 26 weeks to 5 October 2008	Unaudited 26 weeks to 30 September 2007
		$'000	$'000
Continuing operations
Revenue		255,312	218,785
Cost of sales		(218,738)	(185,251)
Gross profit		36,574	33,534
Operating expenses		(28,824)	(22,976)
Operating profit		7,750	10,558
Analysed as:
Operating profit before non-recurring items and share based payments		7,576	11,499
Non-recurring items		5	-
Operating profit before share based payments		7,581	11,499
Share based payments charge		169	(941)
Operating profit		7,750	10,558
Finance income		305	306
Finance costs		(2,858)	(2,913)
Profit on ordinary activities before taxation		5,197	7,951
Taxation		(1,934)	(1,942)
Profit / (loss) for the period from continuing operations attributable to the owners of the parent		3,263	6,009
Discontinued operations
Loss for the period from discontinued operations attributable to owners of the parent		(3,423)	(2,259)
Loss for the period attributable to the owners of the parent		(160)	3,750
Earnings / (loss) per share (cents)
From continuing operations
Basic		5.7	10.6
Diluted		5.7	10.6
From continuing and discontinued operations
Basic		(0.3)	6.6
Diluted		(0.3)	6.6
Adjusted earnings / (loss) per share (cents)*
From continuing operations
Basic		5.4	12.2
Diluted		5.4	12.2

* Earnings per share before non-recurring items and share based payment charges.                  

Restated financial information (unaudited)

Half-yearly information

Consolidated statement of financial position

	Unaudited 3 October 2010 $'000	Unaudited 4 October 2009 $'000	Unaudited 5 October 2008 $'000	Unaudited 30 September 2007 $'000
Non-current assets
Goodwill	3,041	3,086	3,393	3,906
Other intangible assets	1,324	753	462	364
Property, plant and equipment	12,081	11,545	14,823	16,961
Deferred tax asset	771	1,099	768	385
	17,217	16,483	19,446	21,616
Current assets
Inventories	54,791	37,094	68,579	79,175
Trade and other receivables	122,954	94,078	130,701	116,999
Current tax assets	607	-	148	872
Cash and bank balances	16,026	26,598	14,430	11,557
	194,378	157,770	213,858	208,603
Total assets	211,595	174,253	233,304	230,219
Current liabilities
Obligations under finance leases	41	-	26	105
Trade and other payables	131,217	92,251	121,607	100,990
Current tax liabilities	5,487	9,508	9,577	7,596
Retirement benefit obligation	246	457	76	799
Provisions	3,022	6,166	3,469	4,914
Liability for share based payments	-	-	-	680
Derivative financial instruments	474	766	-	-
	140,487	109,148	134,755	115,084
Net current assets	53,891	48,622	79,103	93,519
Non-current liabilities
Borrowings	31,735	44,540	47,139	46,880
Obligations under finance leases	120	-	-	20
Deferred tax liabilities	1,478	-	176	530
Retirement benefit obligation	3,716	5,035	1,969	4,368
Provisions	6,505	7,658	5,447	7,185
Non-equity preference shares	126	128	141	162
Liability for share based payments	-	-	-	89
	43,680	57,361	54,872	59,234
Total liabilities	184,167	166,509	189,627	174,318
Net assets	27,428	7,744	43,677	55,901
Equity attributable to owners of the parent
Share capital	27,875	25,940	25,940	25,940
Share premium account	2,586	2,586	2,586	2,586
Hedging and translation reserve	(3,241)	(5,848)	(691)	1,864
Own shares	(1,935)	-	-	-
Accumulated (losses) / gains	2,143	(14,934)	15,842	25,511
Total equity	27,428	7,744	43,677	55,901

Restated financial information (unaudited)

Half-yearly information

Consolidated statement of cash flows

For the 26 weeks ended 3 October 2010 (26 weeks ended 4 October 2009)

		26 weeks to 3 October 2010	26 weeks to 4 October 2009
		$'000	$'000
Profit for the period		8,346	1,481
Adjustments for:
Finance income		(181)	(60)
Finance costs		2,013	2,885
Income tax expense		2,258	1,244
Depreciation of property, plant and equipment		1,602	1,705
Amortisation of intangible assets		90	73
Loss on disposal of property, plant and equipment		5	83
Share option charge		355	2
Decrease in provisions		(3,258)	(760)
Operating cash flow before movements in working capital		11,230	6,653
(Increase) / decrease in inventories		(12,669)	(832)
(Increase) / decrease in receivables		(29,729)	(3,916)
Increase / (decrease) in payables		34,224	10,441
Movement in working capital		(8,174)	5,693
Cash generated by operations		3,056	12,346
Cash generated before non-recurring items		3,056	14,007
Cash utilised in respect of non-recurring items		-	(1,661)
Taxation paid		(3,577)	(432)
Interest paid		(1,395)	(2,069)
Net cash (used in) / generated from operating activities		(1,916)	9,845
Cash flow from investing activities
Interest received		181	62
Proceeds on disposal of intangible assets, property, plant and equipment		84	5
Purchases of property, plant and equipment		(1,867)	(1,308)
Purchases of intangible assets		(640)	(27)
Net cash outflow arising on disposal of operations		-	(2,485)
Net cash used in investing activities		(2,242)	(3,753)
Cash flow before financing activities		(4,158)	6,092
Cash (used) / generated before non-recurring items		(4,158)	10,238
Net cash outflow on disposal of operations		-	(1,661)
Cash utilised in respect of non-recurring items		-	(2,485)
Cash flow from financing activities
Repayment of borrowings		(7,200)	(3,888)
Refinancing costs paid		(23)	(1,237)
Repayments of obligations under finance leases		(78)	(3)
Net cash used in financing activities		(7,301)	(5,128)
Net (decrease) / increase in cash and cash equivalents		(11,459)	964
Cash and cash equivalents at beginning of period		27,210	24,873
Effect of foreign exchange rate changes		275	761
Cash and cash equivalents at end of period		16,026	26,598

Restated financial information (unaudited)

Consolidated quarterly information

		FY2012
		13 weeks ended 3 July 2011
		$'000
Revenue
Consumer		77,872
Telecoms/Datacoms		27,438
Healthcare		10,917
Industrial		9,854
Group		126,081
Gross Profit		23,920
Adjusted operating profit *		6,754
Normalised operating profit **		6,754

		FY2011
		13 weeks ended 4 July 2010	13 weeks ended 3 October 2010	13 weeks ended 2 January 2011	13 weeks ended 3 April 2011		52 weeks ended 3 April 2011
		$'000	$'000	$'000	$'000		$'000
Revenue
Consumer		71,634	79,522	74,194	78,986		304,336
Telecoms/Datacoms		24,420	28,103	30,218	27,207		109,948
Healthcare		8,731	9,933	12,411	10,461		41,536
Industrial		7,133	8,878	8,349	9,829		34,189
Group		111,918	126,436	125,172	126,483		490,009
Gross Profit		22,074	24,763	22,513	22,719		92,069
Adjusted operating profit *		5,943	6,848	6,325	6,959		26,075
Normalised operating profit **		5,943	6,848	6,325	6,959		26,075

		FY2010
		13 weeks ended 5 July 2009	13 weeks ended 4 October 2009	13 weeks ended 3 January 2010	13 weeks ended 4 April 2010		52 weeks ended 4 April 2010
		$'000	$'000	$'000	$'000		$'000
Revenue
Consumer		47,508	56,455	58,202	60,214		222,379
Telecoms/Datacoms		25,471	24,850	24,182	20,263		94,766
Healthcare		7,901	7,704	6,901	8,264		30,770
Industrial		2,829	3,005	5,192	6,496		17,522
Group		83,709	92,014	94,477	95,237		365,437
Gross Profit		16,102	19,231	20,210	18,122		73,665
Adjusted operating profit *		4,691	5,099	5,547	5,976		21,313
Normalised operating profit **		4,754	798	4,953	5,865		16,370

* Operating profit before share based payment charge and non-recurring items

** Operating profit before share based payment charge

Restated financial information (unaudited)

Consolidated quarterly information

		FY2009
		13 weeks ended 6 July 2008	13 weeks ended 5 October 2008	13 weeks ended 4 January 2009	14 weeks ended 5 April 2009		53 weeks ended 5 April 2009
		$'000	$'000	$'000	$'000		$'000
Revenue
Consumer		72,490	82,808	59,278	47,106		261,682
Telecoms/Datacoms		35,544	36,835	30,317	34,605		137,301
Healthcare		7,849	9,576	9,000	8,825		35,250
Industrial		4,645	5,565	4,262	2,724		17,196
Group		120,528	134,784	102,857	93,260		451,429
Gross Profit
Consumer							38,789
Telecoms/Datacoms							23,687
Healthcare							5,710
Industrial							2,358
Group		15,569	21,005	15,378	18,592		70,544
Adjusted operating profit *		1,752	5,824	4,974	5,522		18,072
Normalised operating profit **		1,659	5,922	4,896	(1,393)		11,084

The Group adopted the Consumer, Telecoms/Datacoms, Healthcare and Industrial sector structure in the 52 week period ended 4 April 2010.  As part of this revision, the Group restated the comparative sector figures for the 53 week period ended 5 April 2009.  Earlier periods were not restated and therefore the Group has not provided a breakdown of revenue for the 52 week period ended 30 March 2008 by sector.  Below is the quarterly analysis of total revenue, gross profit, adjusted operating profit and normalised operating profit for the 52 weeks ended 30 March 2008.  

		FY2008
		13 weeks ended 1 July 2007	13 weeks ended 30 September 2007	13 weeks ended 30 December 2007	13 weeks ended 30 March 2008		52 weeks ended 30 March 2008
		$'000	$'000	$'000	$'000		$'000
Revenue		104,785	114,000	114,612	114,935		448,332
Gross Profit		17,738	15,796	13,633	14,483		61,650
Adjusted operating profit *		4,663	6,836	1,589	1,620		14,708
Normalised operating profit **		4,663	6,836	1,589	(3,726)		9,362

* Operating profit before share based payment charge and non-recurring items

** Operating profit before share based payment charge

 

 

END

 

 

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