Information  X 
Enter a valid email address

Downtex PLC (CAW)

  Print      Mail a friend

Wednesday 28 February, 2001

Downtex PLC

Final Results

Downtex PLC
28 February 2001
 
 
Downtex Plc 
Preliminary Results 
For the year ended 31 December 2000 
 
 
 
 
* Record turnover of £6.639m achieved, up 5% on 1999 
 
* Successful integration of the acquisition of the flat pack business in
Altrincham which continues to perform strongly 
UK retail sales continue to be difficult to achieve  
 
 
* Dividend maintained at last year's level 
 
 
 
'Whilst it is too early to forecast the outcome for 2001, it would appear
that encouraging signs are emerging and the decline experienced in the second
half of 2000 appears to have been reversed. 
 
'We are still pursuing growth both by a mixture of organic and acquisitive
means and currently we have several opportunities which we are pursuing and
about which we will inform you in due course.' 
 
 
 
 
GERALD CAREY, FCIB 
 
 
 
FULL STATEMENT ATTACHED 
 
 
 
Enquiries: 
David Mond, Finance Director 
Downtex Plc 
Tel: 0161 236 6555 
 
Alan Cooke, Account Manager 
Citigate Dewe Rogerson 
Tel: 0121 631 2299 

-2- 
 
 
Downtex Plc 
Preliminary Results 
For the year ended 31 December 2000 
 
 

STATEMENT BY THE CHAIRMAN, GERALD CAREY, FCIB

Last year, in my second Chairman's Statement I wrote of year to year
irregular trading patterns. We have experienced this phenomenon again during
2000. However, the year did see our first business acquisition a manufacturer
of flat pack furniture accessories, which has strengthened our business in
the manner we anticipated a year ago. 
 
Turnover at £6.639m is at its highest ever level and more than 5% higher than
the previous year. Without the acquisition and on a 'like for like' basis,
turnover is down 10.7% for the full year and 24% across the second half.
Retail sales in the UK continue to be difficult to achieve with football
branded household textiles suffering most but from specific issues which we
expect to address during the current year. 
 
The high cost of fuel continues to impact negatively on our heavy costs of
carriage and packing and interest charges have risen sharply as a result of
financing the acquisition. Thus, the pre-tax profit has fallen by 26%.
Notwithstanding this, our gearing levels are satisfactory with net capital
gearing of 82% (1999 - 68%) and interest cover a little under four times
(1999 - seven times). 
 
We have maintained the dividend at 1.25p as last year and both Jonathan and
David Mond are providing further support by waiving their entitlement on 92%
(1999 - 84%) of their shareholding. 
 
The start of 2001 has seen the acquisition of two further retail outlets that
are performing above expectations. This augurs well for the future and will
strengthen our business. The business acquired during 2000 continues to
perform strongly. Sales in the first 5 weeks of 2001 show a marked
improvement with 'like for like' sales almost back to the levels of the
previous year. Whilst it is too early to forecast the outcome for 2001, it
would appear that encouraging signs are emerging and the decline experienced
in the second half of 2000 appears to have been reversed.  
 
We are still pursuing growth both by a mixture of organic and acquisitive
means and currently we have several opportunities which we are pursuing and
about which we will inform you in due course. 
 
Finally, and once again, I would like to place on record my appreciation to
all staff and particularly so for the manner in which they coped so admirably
with the extra work imposed by the acquisition. 

-3- 
 
 
Downtex Plc 
Preliminary Results 
PROFIT AND LOSS ACCOUNT 
For the year ended 31 December 2000 
 
 

                                                                              
                                         Notes            2000           1999 
                                                             £              £ 
  Turnover                                                                    
  Continuing operations                              5,631,068      6,304,927 
  Acquisitions                                       1,008,281              - 
                                                                              
                                                     6,639,349      6,304,927 
  Total                                                                       
  Cost of sales                                     (5,072,428)    (4,808,144)  
  Gross profit                                       1,566,921      1,496,783 
  Other operating expenses                          (1,215,346)    (1,089,440)  
  Operating profit                                                            
  Continuing operations                                324,589        407,343 
  Acquisitions                                          26,986              - 
                                                       351,575        407,343 
  Interest payable and similar charges                 (93,704)       (58,176)  
  
  Profit on ordinary activities before                                        
  taxation                                             257,871        349,167 
  Tax on profit on ordinary activities                 (61,811)       (84,418)  
  
  Profit on ordinary activities after                                         
  taxation                                             196,060        264,749 
  Dividends                                            (41,133)       (49,506)  
  
  Retained profit for the financial                                           
  year                                                 154,927        215,243 
                                                                              
  Earnings per share                                     1.57p          2.16p 
 
The company has no recognised gains and losses other than those included in
the results above and therefore no separate statement of total recognised
gains and losses has been presented. 
 
There is no difference between the profit on ordinary activities before
taxation and the retained profit for the year stated above and their
historical cost equivalents. 

-4- 
 
 
Downtex Plc 
Preliminary Results 
BALANCE SHEET 
As at 31 December 2000 
 
 

                                                                              
                                                            2000         1999 
                                                               £            £ 
  Fixed assets                                                                
  Intangible assets                                      164,871        7,000 
  Tangible assets                                        571,589      495,585 
                                                         736,460      502,585 
  Current assets                                                              
  Stocks                                               1,652,482    1,569,310 
  Debtors                                              1,311,111    1,201,125 
  Cash at bank and in hand                               184,628      157,023 
                                                       3,148,221    2,927,458 
  Creditors: amounts falling due within one year       2,171,331    1,869,559 
  Net current assets                                                          
                                                         976,890    1,057,899 
                                                                              
  Total assets less current liabilities                1,713,350    1,560,484 
  Creditors: amounts falling due after more than         232,000      264,000 
  one year                                                                    
  Deferred taxation                                        5,554            - 
                                                                              
                                                       1,475,796    1,296,484 
  Net assets                                                                  
                                                                              
                                                                              
  Capital and reserves                                                        
  Called up share capital                                249,813      247,210 
  Share premium account                                  336,766      314,984 
  Revaluation reserve                                     33,666       34,367 
  Profit and loss account                                855,551      699,923 
                                                                              
  Equity shareholders' funds                           1,475,796    1,296,484 

-5- 
 
 
Downtex Plc 
Preliminary Results 
CASH FLOW STATEMENT 
For the year ended 31 December 2000 
 
 

                                                                              
                                                          2000         1999 
                                                             £            £ 
  Net cash inflow/(outflow) from operating             590,850    (185,293)  
  activities                                                                  
  Returns on investment and servicing of finance                              
  Interest paid                                       (93,704)     (58,176)   
  Taxation                                                                    
  UK corporation tax paid                             (85,363)     (68,407)   
  Capital expenditure                                                         
  Purchase of tangible fixed assets                   (108,187)    (82,011)   
  Disposal of tangible fixed assets                     35,540      15,640 
                                                                              
  Net cash outflow from capital expenditure            (72,647)    (66,371) 
  Acquisitions                                        (616,100)         - 
  Equity dividends paid                                (49,506)    (26,850)   
                                                                              
  Cash outflow before financing                       (326,470)   (405,097) 
                                                                              
                                                                              
  Financing                                                                   
  Issue of ordinary share capital                           -       42,500 
  Expenses of share issue                               (7,500)         - 
  New bank loans                                       400,000     241,000 
  Loan repayments                                     (326,166)         - 
                                                                              
  Net cash inflow from financing                        66,334     283,500 
                                                                              
  Decrease in cash in the year                        (260,136)   (121,597) 
                                                                              
  Reconciliation of operating profit to net cash inflow/(outflow) from        
  operating activities                                                        
                                                            2000         1999 
                                                               £            £ 
  Operating profit                                       351,575      407,343 
  Depreciation on tangible fixed assets                   51,740       41,001 
  Amortisation of intangible fixed assets                  8,229        2,000 
  (Profit)/loss on sale of tangible fixed assets          (5,097)       1,767 
  Decrease/(increase) in stock                           348,712     (188,825)  
  Increase in trade debtors                             (113,241)    (240,923)  
  Decrease/(increase) in prepayments, accrued                                 
  income and deferred                                      3,255      (5,994) 
  expenditure                                                                 
  Decrease in trade creditors                           (109,915)   (119,386)  
  Increase in other taxation and social security          28,995       8,574 
  (Decrease)/increase in other creditors                  (2,180)      2,180 
  Increase/(decrease) in accruals and deferred            28,777     (93,030)   
  income                                                                      
                                                                              
  Net cash inflow/(outflow) from operating               590,850    (185,293) 
  activities                                                                  

-6- 
 
 
Downtex Plc 
Preliminary Results 
NOTES 
 
 
1.     The earnings per share is calculated on the weighted average of
12,458,106 ordinary shares in issue during the course of the year (1999:
12,266,767). 
 
2.     The proposed final dividend will be paid on 1 May 2001 to shareholders
on the register at the close of business on 9 March 2001. 
 
3.     Results for the year ended 31 December 2000 are abridged from the 2000
Annual Report & Accounts, which received an unqualified auditor's report and
which will be filed with the Registrar of Companies following the Annual
General Meeting. 
 
4.     The Annual Report will be posted to shareholders on 28 February 2001.
Further copies will be available from the Company's Registered Office or Web
Site. 
 
5.     The Annual General Meeting will be held at 10.00am on Friday, 30 March
2001 at George House, 48 George Street, Manchester, M1 4HF. 




           

a d v e r t i s e m e n t