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Hi-Tec Sports PLC (HTS)

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Tuesday 29 February, 2000

Hi-Tec Sports PLC

Interim and 8 Months Results - Part 1

Hi-Tec Sports PLC
29 February 2000

PART 1

                    HI-TEC Sports Plc
                            
  Unaudited Interim results for the six months ended 31
                      October 1999
                            
    Preliminary results for the eight months ended 31
                      December 1999
                            
Chairman's statement

The  period  under  review marks an  improvement  in  the
Group's  overall financial performance which was tempered
by  challenging  trading conditions in North  America  to
which we have referred in previous statements.


Change of financial year-end

Before reviewing the Group's performance, it is important
to  reiterate that at the end of the last financial year,
being  30  April 1999, the Board decided  to  change  the
financial  year-end to 31 December.  This  brings  HI-TEC
into  line  with  most  of  the international  sportswear
industry  and  better  reflects the  industry's  seasonal
trading pattern.

On  this occasion we are required to compare results  for
the  eight month period to 31 December 1999 to those  for
the  twelve month period ended 30 April 1999.  To  assist
shareholders,  we  are  presenting  also  the   financial
results  for the equivalent unaudited eight month  period
in 1998.  In addition to this, we present Interim results
for  the  six  months  ended 31  October  1999.   In  the
following narrative we therefore present comparatives for
either the eight month or six month periods.

In  financial reporting terms the Group is in a period of
transition.   Shareholders must take  into  consideration
that  the  Group's  most  important  trading  season   is
spring/summer.   The results under review  include  eight
months of costs and reflect income from the traditionally
less  important autumn/winter season and the  investments
associated with the spring/summer season, but no sales or
profit   contributions  from   the   latter.    This   is
particularly  noticeable  in  the  balance   sheet   when
comparing April 1999 and December 1999 figures.


Financial highlights

Turnover  in  the eight months to 31 December,  1999  was
£53.4  million representing a 9.5% improvement  over  the
equivalent period in 1998.  Turnover in the six months to
31   October   1999  improved  by  8.4%.   Gross   margin
contribution  for  the  eight  months  to  December  1999
improved  by 15.2% and for the six months to  31  October
1999  by  10.5%.   This positive trend  is  reflected  in
markedly  improved gross margin percentage,  up  1.7%  to
33.4%  for  the eight months to 31 December 1999  and  by
0.6%  to 32.9% for the six months ended 31 October  1999.
For  the  eight months to 31 December 1999 losses  before
tax  were reduced by £2.3 million to £0.8 million and the
Group  made  a profit before tax of £0.2 million  at  the
interim stage (31 October 1998: loss of £1.3 million).

As  the Group continues its recovery but reports a  loss,
the  Board  is not recommending the payment  of  a  final
dividend.


Trading overview

The  Group  continued to face the impact of a challenging
global  market for the sports footwear industry.  A  year
which  saw many retailers going out of business and down-
sizing  has  led  to  a  sustained period  of  discounted
selling of surplus sports shoes.  The Group operates in a
market   place  with  reducing  floor  space  for  sports
footwear and in a highly price-driven environment.

Despite these issues the financial results reflect  sound
progress which is attributable to the strength of the HI-
TEC   and  MAGNUM  brands  and  their  respective  market
positions.    The  Group's  continued   focus   on   five
categories  -  outdoor, sport and athletic, indoor,  golf
and  MAGNUM  service  -  works in  its  favour.  We  have
improved  our  reputation for product innovation,  style,
quality  and value.  In particular we are well positioned
for  the  global trend toward outdoor leisure  activities
and  we  continue to be a market leader supplying service
footwear  under  the MAGNUM brand.  The  increased  gross
margin   reflects  a  combination  of  improved   product
quality, buying, distribution and inventory management.


UK & Ireland

For the eight months to 31 December 1999 sales were £20.1
million compared to £17.2 million for the eight months to
31 December 1998 representing an increase of 17% over the
equivalent  period  last year with stronger  performances
across  all  categories.   Operating  profits  were  £0.9
million  and  £0.2  million respectively.   For  the  six
months  to  31  October  1999 sales  increased  by  14.3%
compared  to  the  six months ended 31 October  1998  and
operating  profits  were £0.9 million  and  £0.3  million
respectively.


US and Canada

Sales  of £17.2 million were achieved in the eight months
to  31 December 1999 with an associated operating loss of
£0.6  million.   This compares to £18.1  million  and  an
operating loss of £0.8 million for the eight months to 31
December 1998.  The sales decrease is associated  with  a
gross   margin  increase  and  reflects  a  decrease   in
discounted  sales  made  last year  to  reduce  inventory
levels.

At  31 October 1999 sales were £14.4 million representing
an identical 5% decrease from the equivalent period ended
31  October 1998. Operating (losses)/profits were £(0.01)
million and £0.5 million respectively.

Actions  being taken by the new management team announced
at  the  last  year-end are starting  to  reap  benefits,
although  the  market remains challenging  and  there  is
still  a lot of work to do to win back sustained retailer
support  for  our brands.  In Canada it was a contrasting
picture, demonstrating a recovery already underway.


Continental Europe

In  the eight months to 31 December 1999 sales were  £8.3
million  and operating profit was £0.6 million.   In  the
six months to 31 October 1999 sales were £5.7 million and
operating  profit was £0.5 million.  In the eight  months
to  31  December  1998 the comparable numbers  were  £5.8
million and a loss of £0.05 million, respectively. In the
six months to 31 October 1998 the comparable numbers were
£4.8   million   and  a  profit  of  £0.2  million.   The
performances by the various countries in these respective
periods was mixed; Spain, an important market, had a good
year  and  retained  overall market  share  and  improved
profitability.  Our Italian distributor had a very strong
year,  selling principally MAGNUM product. Our new  Czech
subsidiary had to contend with an economic recession  and
bear  consequences of devaluation but a break-even result
leaves  the  HI-TEC brand in the No.2  position  in  that
market place.


Rest of the World

Sales  of £7.8 million were achieved in the eight  months
to  31  December  1999  with  operating  profit  of  £0.6
million.    This  compares  favourably  with  sales   and
operating  profit of £7.6 million and  a  loss  of  £0.42
million in the eight months to 31 December 1998.  In  the
six months to 31 October 1999 sales were £7.5 million and
operating  profit  was £0.6 million. In  the  six  months
ended  31  October 1998 the comparable numbers were  £6.2
million  and  a  loss of £0.3 million. Our South  African
company performed well, showing a strong recovery led  by
locally  manufactured MAGNUM product being sold to  South
African institutions for the first time.


Directors and staff

The  Group's performance in the face of these challenging
market conditions has been a testament to the quality and
enthusiasm of all our staff.  On behalf of the  Board,  I
thank everybody for their efforts.  We have a great  team
of  people  working  for us who will be  able  to  adjust
themselves  to  the changing circumstances  in  whichever
market they operate.


Possible offer for the entire issued share capital of HI-
TEC Sports Plc

The following statement was issued by the stock exchange
on 21 February 2000:

'The board of HI-TEC has noted the recent movement in the
company's share price and announces that it is holding
discussions with the company's executive directors which
may or may not lead to an offer being made for the entire
issued share capital of the company.

'A further announcement will be made in due course.'


Outlook

Much  progress  has  been made in improving  the  Group's
financial  performance.   At  the  same  time   we   have
continued  to invest in our teams and in the  HI-TEC  and
MAGNUM  brands in order to ensure that we offer  products
which  give  a  unique combination of  style,  value  and
performance. Group order books are in line with this time
last year.

Whilst  we  cannot  ignore the ever existing  competitive
climate and the rapid reduction in square footage in  the
athletic  retail industry, we believe the Group  is  well
positioned to make further progress.


Frank van Wezel
Chairman
29 February 2000


For further information, please contact:

HI-TEC Sports Plc
Paul Harrison, Group Chief Executive
01702  541 741
Donald Bell, Group Finance Director

Ludgate Communications
Tim Davis
020 7253 2252
                            
                    HI TEC SPORTS PLC

Preliminary results for the 35 weeks ended 31 December
1999 (unaudited and unreviewed) compared with the 35
weeks ended 31 December 1998 (unaudited and unreviewed)
and the 52 weeks ended 30 April 1999 (audited)

Interim results (unaudited and unreviewed) for the 6
months ended 31 October 1999 compared with the 6 months
ended 31 October 1998 (unaudited and unreviewed)

                           INTERIM RESULTS              
                             Unaudited  Unaudited 
                              6 months   6 months 
                             to 31 Oct  to 31 Oct 
                                  1999       1998 
                              £' 000's   £' 000's 
                                                  
                                                  
Turnover                        43,518     40,145 
                                                  
                                                  
    Gross                       14,320     12,957 
  Margins
GM % age                         32.9%      32.3% 
                                                  
Operating                          908      (279) 
   Profit
  /(loss)
                                                  
      Net                        (696)    (1,000) 
 interest
  payable
                              --------   -------- 
Profit/(loss)                     212    (1,279) 
   before
 taxation
                                                  
 Taxation                         (69)          0 
(charge)/
   credit
                              --------   -------- 
Profit/(loss)                     143    (1,279) 
  after tax
                                                  
   Equity                          (1)         13 
 minority
interests
                              --------   -------- 
Profit/(loss)                                        
                                  142    (1,266)
attributable to
shareholders
     
                                                  
Dividends                            0      (258) 
 proposed
                              --------   -------- 
 Retained                          142    (1,524) 
profit/(loss)
 for
 the
 period
                                 =====      ===== 

                          PRELIMINARY RESULTS                 
                            Audited Unaudited    Audited
                           8 months  8 months  12 months
                          to 31 Dec  to 31Dec to 30 April
                               1999      1998       1999
                           £' 000's  £' 000's   £' 000's
                                                        
                                                        
Turnover                     53,441    48,794     82,291
                                                        
                                                        
    Gross                    17,839    15,481     25,346
  Margins
GM % age                      33.4%     31.7%      30.8%
                                                        
Operating                        98   (1,767)    (1,054)
   Profit
  /(loss)
                                                        
      Net                     (934)   (1,332)    (1,914)
 interest
  payable
                            -------  --------   --------
Profit/(loss)                 (836)   (3,099)    (2,968)
   before
 taxation
                                                        
 Taxation                      (45)        99        212
(charge)/
   credit
                            -------  --------   --------
Profit/(loss)                 (881)   (3,000)    (2,756)
after tax
                                                        
   Equity                         1        27       (21)
 minority
interests
                            -------  --------   --------
Profit/(loss)                                               
                               (880)   (2,973)    (2,777)
attributable
    to
shareholders
                                                        
Dividends                         0     (258)      (258)
 proposed
                            -------  --------   --------
 Retained                     (880)   (3,231)    (3,035)
profit/(loss)
  for
  the
   period
                               ====     =====      =====


Consolidated profit and loss account
For the 35 week period ended 31 December 1999
and the 52 week period ended 30 April 1999

                          35 week period    52 week period
                                   ended             ended
                             31 December     30 April 1999
                                    1999
                                   Total             Total
                   Note            £'000             £'000
                                                          
Turnover            1,2           53,441            82,291
Cost of Sales                   (35,602)          (56,945)
                             -----------       -----------
Gross profit                      17,839            25,346
Selling and                                               
Distribution costs              (10,226)          (15,971)
Administration                   (7,515)         (10,429)*
costs
                             -----------       -----------
Operating           2,3               98           (1,054)
profit/(loss)
Other interest       4                                    
receivable and                       133               257
similar income
Interest payable     5                                    
and similar                      (1,067)           (2,171)
charges
                             -----------       -----------
Loss on ordinary                                          
activities before                  (836)           (2,968)
taxation
                                                          
Tax on loss on                                            
ordinary                                                  
activities           6              (45)               212
                             -----------       -----------
Loss on ordinary                                          
activities after                   (881)           (2,756)
taxation
                                                          
Equity minority                        1              (21)
interests
                             -----------       -----------
Loss attributable                                         
to shareholders                    (880)           (2,777)
                                                          
Dividends            7                 0             (258)
                             -----------       -----------
Retained loss for                                         
the period          22             (880)           (3,035)
                                 =======           =======
Loss per share       8            (1.7)p            (5.4)p
Diluted loss per     8            (1.8)p            (5.4)p
share                                                     
                                 =======           =======

*includes a net exceptional item of (28) arising from
litigation receipts of 963 offset   by redundancies, asset
write-offs and reorganisation costs of (991).


Statement of total recognised gains and losses
For the 35 week period ended 31 December 1999
and the 52 week period ended 30 April 1999


                               35 week period   52 week period
                               ended             ended
                                  31 December   30 April 1999
                                         1999
                         Note                               
                                                            
Loss attributable to                    (880)        (2,777)
shareholders
Translation differences   22                                
in foreign currency net                    80           (43)
investments
                                     --------     ----------
Total losses recognised                                     
in the period                           (800)        (2,820)
                                        =====         ======
The results disclosed above are on an unmodified historical
cost basis.
                                                            
Reconciliation of                               
movement in equity
shareholders' funds
                             35 week period     52 week period
                            ended              ended
                                  31 December   30 April 1999
                                         1999
                                                            
                                                            
Equity shareholders'                   19,318         22,091
funds at beginning of
period
Loss attributable to                    (880)        (2,777)
shareholders
Dividends                                   0          (258)
Translation differences                    80           (43)
New share capital issued                    0            284
Scrip dividends                             0             21
                                     --------      ---------
Equity shareholders'                                        
funds at end of period                 18,518         19,318
                                        =====          =====


Consolidated balance sheet as at
31 December 1999

                           35 week period  52 week period
                                    ended          ended
                              31 December   30 April 1999
                                     1999
                       Note         £'000          £'000
                        
Fixed assets                                            
Intangible assets       10            538            571
Tangible assets         11          1,319          1,409
                                 --------       --------
                                    1,857          1,980
                                 --------       --------
Current assets                                          
Stocks                  12         21,914         18,743
Debtors                 13         16,360         24,555
Investments             14              8             10
Cash at bank and in                 7,980          4,702
hand
                                 --------       --------
                                   46,262         48,010
                                                        
Creditors: amounts      15                              
falling due within one           (29,051)       (30,148)
year
                                 --------       --------
Net current assets                 17,211         17,862
                                 --------       --------
Total assets less                                       
current liabilities                19,068         19,842
                                                        
Creditors : amounts     15                              
falling due after more              (134)          (115)
than one year
                                                        
Provisions for          20                              
liabilities and                      (73)           (89)
charges
                                ---------       --------
                                   18,861         19,638
                                    =====          =====
Capital and reserves                                    
Called up share         21         13,080         13,080
capital
Share premium account   22         15,682         15,682
Profit and loss         22       (10,244)        (9,444)
account
                                ---------       --------
Equity shareholders'               18,518         19,318
funds
Equity minority                       343            320
interests
                                    =====          =====
                                   18,861         19,638
                                                        


Consolidated cash flow statement
For the 35 week period ended 31 December 1999
and 52 week period ended 30 April 1999

                                35 week period     52 week
                                         ended period ended
                                   31 December    30 April
                                          1999        1999
                            Note          £000        £000
Net cash (outflow) /                                      
inflow from operating       26           (640)       2,554
activities
                                        ------       -----
Returns on investments and                                
servicing of finance
Interest received                  133           257      
Interest paid                  (1,083)         (2,207) 
                                                  
Interest element of                                       
finance lease rental              (17)          (25)
payments
                                ------         -----      
Net cash outflow from                                     
returns on
investments and servicing                (967)       (1,97
of finance                                              5)
                                                          
Taxation                                                  
UK and overseas corporate                  371       (811)
tax paid
                                                          
Capital expenditure and                                   
financial investment
Tangible fixed assets            (418)         (469)      
acquired
Tangible fixed assets sold         102           181      
Intangible fixed assets           (14)          (28)      
acquired
Receipts/(payments) from             2           (5)      
investments
                               -------         ------      
Net cash outflow capital                                  
expenditure and financial                (328)       (321)
investment
                                                          
Equity dividend paid                      (24)       (712)
                                                          
Net cash outflow before                                   
use of liquid resources                (1,588)       (1,265)
and finance                                             
                                                          
Financing                                                 
Capital element of finance  27    (12)         (119)      
lease rentals
Proceeds of share issue              0            37      
                                ------         ------      
Net cash outflow from                     (12)        (82)
financing
                                                          
                                       -------       -----
Decrease in cash and cash   28         (1,600)       (1,34
equivalents                                             7)
                                        ======       =====

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