Results for the Year Ended 31

RNS Number : 7213N
Worthington Group PLC
16 June 2010
 



Worthington Group plc ("the Company")

 

Results for the Year Ended 31 March 2010

 

Chairman's Statement

 

The Company generated a profit of £230,000 (2009: loss of £11,000) excluding the non cash items relating to the pension scheme finance charge and the amounts related to associated companies, which are discussed below. Including the non cash items, the Company produced a loss after tax for the year of £316,000 (2009: £487,000).

 

We ended the year with cash balances of £831,000, an increase of £35,000, which is highly creditable given the payments to the pension scheme of £182,000 and the ongoing administration costs of the scheme which are picked up in the head office costs.

 

During the year we successfully completed two secured bridging loans utilising our cash balances for a good part of the year and generating interest and fees of £116,000 on an average sum lent of £630,000 over the two deals. We continue to look for suitable opportunities to lend always mindful of the need to preserve our capital.

 

I am pleased to report a slight increase in rental receipts during the year to £147,000 (2009: £142,000) which compared favourably with the £150,000 budget set against a challenging economic background. Overall we produced surplus rental income of £135,000 (2009: £59,000) after much reduced maintenance costs in the year. Head office costs as a whole also reduced in the year although this was largely due to the release of some provisions from earlier years which were no longer deemed necessary.

 

We are investigating various planning schemes for the site at Keighley to realise the maximum value out of the site. A public consultation in Keighley was completed at the end of April 2010 which proposed the building of a new health centre on our land which whilst zoned for industrial use nevertheless sits within a large residential area. The alternative was to rebuild a new centre on the existing site. We still await the outcome of the consultation and if our site is selected it is likely we would enter negotiations to sell the spare land whilst retaining the buildings which are currently being rented. We anticipate moving forward with some sort of planning application for the site in the coming year dependent on the outcome of the consultation.

 

Turning to the pension scheme, the income statement, in accordance with IAS 19, includes a non cash charge of £242,000 (2009: £166,000) in respect of the pension scheme net finance cost. Payments into the scheme to reduce the deficit during the period amounted to £182,000 (2009: £223,000) but despite this the scheme deficit on an IAS 19 basis increased to £3,240,000 (2009: £2,641,000). 

 

The pension scheme funding risk continues to represent the principal risk factor faced by the Company. The tri-annual full actuarial review of the scheme as at 5 April 2010 is currently being prepared by the scheme actuaries, the results of which will be known in the next few months. We are however mindful that the review may well revise mortality rates upwards since the last review in 2007 which may have a consequential impact on the scheme deficit.

 

The investment performance of the scheme assets against benchmarks together with the levels of head office costs and the rental income continue to be monitored closely by the Board as key performance indicators.

 

Trimmings by Design ("Trimmings"), in which we have a 44% shareholding, produced another loss for the year, with our share of the trading losses included in these accounts amounting to £79,000 (2009: £56,000). Actions have been taken by management, to reduce staff costs in particular, but we feel there is more that could be done. Whilst the budget for this year has forecast a near breakeven position we have had to review the carrying value of the investment given a lack of dividends and have accordingly made an impairment provision of £225,000 against the value of the investment on our statement of financial position. All these items are non cash items.

 

Accordingly net asset value has decreased by £855,000 in the year to £232,000 (2009: £1,087,000) once again principally as a result of the rise in the pension scheme deficit of £599,000. A substantial recovery in the scheme assets during the year was unfortunately more than offset by the effect of changes in discount rates on the scheme liabilities.

 

We continue to look for ways to reduce the Company's exposure going forward to the pension scheme but it is likely that this can only be addressed when we have found a suitable  acquisition opportunity which we continue to seek.

 

 

J C Dwek CBE

Executive Chairman  

16 June 2010



Worthington Group plc

 

Income Statement

for the year ended 31 March 2010

 

 

                                                                                                                 2010              2009

                                                                                       Note                  £'000             £'000

 

Revenue                                                                            2                        147                142

Cost of sales                                                                                                (12)               (83)

                                                                                                             ______         ______

 

Gross profit                                                                                               135                  59

Administrative expenses                                                                                (74)              (149)

                                                                                                             ______         ______

 

Operating profit / (loss)                                                                              61                 (90)

Investment revenues                                                           3                        169                  79

Finance costs                                                                     4                      (242)              (166)

Share of results of associate                                                                          (79)               (56)

Provision for impairment losses                                            5                      (225)              (254)

                                                                                                             ______         ______

Loss before taxation                                                                                (316)              (487)

Taxation                                                                             6                            -                    -

                                                                                                             ______         ______

 

Loss after taxation for current year                                                        (316)              (487)

                                                                                                             ______         ______

 

Loss per ordinary share from continuing operations

- Basic                                                                               7                       (2.7p)            (4.1p)

- Fully diluted                                                                      7                         n/a                 n/a

 

 

 

All items are derived from continuing operations. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Worthington Group plc

 

Statement of Comprehensive Income

For the year ended 31 March 2010

                                                                                                                 2010              2009

                                                                                                               £'000             £'000

 

Loss for the year                                                                                     (316)              (487)

Actuarial loss on retirement benefit obligation                                               (539)           (1,779)

                                                                                                             ______         ______

 

Total comprehensive loss for the period                                                (855)           (2,266)

                                                                                                             ______         ______

 

Attributable to:

Owners of the parent                                                                               (855)           (2,266)

                                                                                                             ______         ______



Worthington Group plc

 

Statement of Financial Position

At 31 March 2010

 

                                                                                           2010         2010          2009          2009

                                                                                          £'000       £'000        £'000        £'000

Non-current assets

Investment property                                                             1,800                          1,800

Interests in associates                                                             125                            429

Other financial assets                                                              800                            800

                                                                                         _____                       _____

                                                                                                           2,725                         3,029

Current assets

Trade and other receivables                                                      15                              85

Cash and bank balances                                                          831                            796

                                                                                         _____                       _____

                                                                                                              846                            881

                                                                                                        ______                       _____

 

Total assets                                                                                       3,571                         3,910

 

Current liabilities

Trade and other payables                                                          99                            182

                                                                                         _____                       _____

 

Non-current liabilities

Retirement benefit obligation                                                3,240                         2,641

                                                                                         _____                       _____

 

                                                                                          3,240                         2,641

                                                                                         _____                       _____

 

Total liabilties                                                                                  (3,339)                       (2,823)

                                                                                                        ______                     ______

 

Net assets                                                                                             232                         1,087

                                                                                                        ______                       _____

Equity

Called-up share capital                                                                       11,807                        11,807

Share premium account                                                                        9,836                         9,836

Retained earnings                                                                             (21,411)                     (20,556)

                                                                                                        ______                     ______

 

Total equity                                                                                           232                          1,087

                                                                                                        ______                     ______



Worthington Group plc

 

Statement of Changes in Equity

for the year ended 31 March 2010

 

                                                                             Share             Share        Retained

                                                                            capital         premium         earnings              Total

                                                                             £'000             £'000             £'000             £'000

 

At 1 April 2009                                                     11,807              9,836           (20,556)            1,087

Total comprehensive income for the year                        -                    -               (855)              (855)

                                                                         ______         ______         ______         ______

 

At 31 March 2010                                            11,807            9,836         (21,411)              232

                                                                         ______         ______         ______         ______

 

 

                                                                             Share             Share        Retained

                                                                            capital         premium         earnings              Total

                                                                             £'000             £'000             £'000             £'000

 

At 1 April 2008                                                     11,807              9,836           (18,290)            3,353

Total comprehensive income for the year                        -                    -            (2,266)           (2,266)

                                                                         ______         ______         ______         ______

 

At 31 March 2009                                            11,807            9,836         (20,556)           1,087
                                                                         ______         ______         ______         ______

 

 

 



Worthington Group plc

 

Cash Flow Statement

for the year ended 31 March 2010

 

                                                                                                                        2010              2009

                                                                                                                      £'000             £'000

Cash flow from operating activities

Operating profit / (loss)                                                                                         61                 (90)

Movement in trade and other receivables                                                                70                 (40)

Movement in trade and other payables excluding pension obligation                         (83)                 17

Payments to pension scheme                                                                              (182)              (223)

                                                                                                                      _____           _____

 

Net cash outflow from operating activities                                                     (134)              (336)

 

Cash flow from investing activities

Interest received                                                                                                 169                  66

Dividends received from associated undertakings                                                       -                  66

                                                                                                                      _____           _____

 

Net cash generated by investing activities                                                     169                132

                                                                                                                      _____           _____

 

Increase/(decrease) in cash and cash equivalents                                            35               (204)

Cash and cash equivalents at beginning of year                                                     796              1,000

                                                                                                                      _____           _____

 

Cash and cash equivalents at end of year                                                             831                796

                                                                                                                      _____           _____

 

 

Cash and cash equivalents comprise of cash held at bank.

 

 



Worthington Group plc

 

 

Notes forming part of the preliminary announcement for the year ended 31 March 2010

 

1. Basis of preparation

 

The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

 

The financial information in this announcement, which was approved by the Board of Directors on 16 June 2010, does not constitute the Company's statutory accounts for the years ended 31 March 2010 or 2009, but is derived from these accounts.

 

Statutory accounts to 31 March 2009 have been delivered to the Registrar of Companies and those for 2010 will be delivered following the Company's annual general meeting. The auditors have reported on these accounts; their reports were unqualified and did not contain statements under S498 of the Companies Act 2006.

 

The financial information has been prepared on the historical cost basis, except for the revaluation of certain properties and assets.

 

 

2. Segmental Analysis

 

The Company has adopted IFRS 8 with effect from 01 April 2009.  IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Company that are regularly reviewed by the Chief Executive to allocate resources and assess performance.


As a result, following the adoption of IFRS 8, the Company's only reportable segment remains property rental and management in the UK.

 

Included in revenues arising from the Company's only operating segment are revenues of approximately £135,000 which arose from the Company's three largest customers being £98,000, £22,000 and £15,000 respectively.

 

 

3. Investment Revenues

 

                                                                                                                        2010              2009

                                                                                                                      £'000             £'000

 

Loan note interest                                                                                                 52                  52

Interest and arrangement fees on bridging loans                                                    116                    -

Interest on bank deposits                                                                                         1                  27

                                                                                                                        ____             ____

 

                                                                                                                          169                  79

                                                                                                                        ____             ____

 

 



4. Finance Costs

                                                                                                                        2010              2009

                                                                                                                      £'000             £'000

 

Pension scheme net finance charge                                                                      242                166

                                                                                                                        ____             ____

 

5. Impairment losses recognised

                                                                                                                        2010              2009

                                                                                                                      £'000             £'000

 

Goodwill written off                                                                                                 -                145

Provision against goodwill in balance sheet of associate                                              -                109

Provision for impairment losses                                                                            225                    -

                                                                                                                        ____             ____

 

                                                                                                                          225                254

                                                                                                                        ____             ____

 

Following losses made in the current year by Trimmings by Design Ltd and a budgeted loss for the 2010/11 year the Directors consider there has been an impairment of the investment recognised in the Company's statement of financial position. Accordingly a provision has been made against the carrying value of the investment of £225,000 in respect of its associate with a corresponding charge to the income statement.

 

 

6. Taxation

 

No corporation charge has been provided for 2010 or 2009 as a result of the availability of various reliefs.

 

 

7. Earnings per share

 

The earnings per share has been calculated using the weighted average number of shares in issue during the relevant financial periods.  The weighted average number of shares in issue during the year was 11,807,013 (2009: 11,807,013) and the loss after taxation was £316,000 (2009:  £487,000).

 

There is no difference between the basic and diluted loss per share in either year.

 

 

8. Copies of the Annual Report

 

Copies of the Annual Report are available from the Company Secretary at the registered office which is situated at Suite 1, Courthill House, 66 Water Lane, Wilmslow, Cheshire, SK9 5AP. The annual report and AGM notices will also be available for download on the Company's website www.worthingtongroupplc.co.uk

 

 

Enquiries:

Worthington Group plc

 

Joe Dwek CBE, Chairman

Tel: 01625 549082

David Shalom , Finance Director

Tel: 07912 777470

 


This information is provided by RNS
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