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John Mansfield Group (JMS)

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Friday 29 October, 1999

John Mansfield Group

Interim Results - Continuing Talks with Waddington

JOHN MANSFIELD GROUP PLC
29 October 1999

                    
                  JOHN MANSFIELD GROUP PLC

CHAIRMAN'S STATEMENT

Interim Report

Corporate activity

We   remain   encouraged  by  the  level  of   institutional
shareholder  support and the commitment from investment  and
commercial  banks,  as  well  as  our  primary  professional
advisors.

We  have held a number of discussions with the Boards  of  a
variety  of public companies during the last six months  and
whilst coming close to making a formal offer in a number  of
instances, have been concerned at the high values continuing
to be ascribed to the market in general and in particular to
many underperforming companies.

On  25  October,  we  announced that we  have  entered  into
preliminary  discussions with the Board of  Waddington  plc,
the   packaging  and  specialist  printing  company.   These
discussions  are  continuing and  we  anticipate  a  further
announcement in due course.

We  remain  committed to making an acquisition of substance.
In  the  first  half  of 1999 your Board incurred  costs  of
£145,000 in pursuit of such corporate activity.


John Mansfield Timber Limited

In  1998  we began to rebuild the Timber business which  had
survived   for  years  without  investment  nor   purposeful
strategic  direction.  The investment we made in people  and
systems  together  with  the initial  reorganisation  was  a
beginning.

In  the first half of 1999 sales increased by 8.4% with more
business  placed by national house builders but  not  enough
through  the  'one stop shop' total product package  we  are
targeting.   Individual product selling  prices  were  under
pressure  as  over-supply continued to impact market  prices
for commodity timbers.  Gross margins suffered accordingly.

With  additional costs from the investments and lower  gross
margins, the first half produced a loss of £298,000 for  the
Timber business.

Our  objective  continues  to be  the  introduction  of  new
products  and  the  move towards a more total  supply  based
business   with   less  dependence  on   commodity   product
manufacture.   In order to maintain the momentum  of  change
the  decision  has  been taken to rationalise  the  business
further.   This will reduce core manufacturing to  one  site
from   three,  more  fully  utilising  the  recent   capital
investment and see the elimination of the manufacture of non-
profitable products.

An exceptional charge of up to £2 million in the second half
will be taken as we consolidate our manufacturing activities
onto  one site.  Most of this charge will be in the form  of
non-cash  items, such as fixed asset write-downs.   We  will
continue to move purposefully towards our aim of becoming  a
total  package  supplier  of  timber-related  products   and
services   through   partnerships  with   housebuilder   and
contractor customers.

The  directors  do  not  recommend  payment  of  an  interim
dividend.


Year 2000

We  have completed a comprehensive review of all the Group's
hardware  and  software  and  have  replaced  equipment   as
necessary.  The cost of hardware and software replacement is
not expected to be material.

We  continue  to liaise with key customers and suppliers  in
working towards millennium compliance.


Stuart Wallis
Chairman
29 October 1999


John Mansfield Group plc
Interim Results

                                    Unaudited    Unaudited        Audited
                                     6 months     6 months      12 months
                                      30 June      30 June    31 December
                                         1999         1998           1998
                                             
                                       £000's       £000's         £000's
                                              
Turnover                                6,512        6,007         12,752

Operating (loss)                         (443)         (87)          (267)

Exceptional items                          -             -         (1,500)
                      
Net interest                               -            39             42
                    
(Loss) on ordinary activities                    
before taxation                          (443)         (48)        (1,725)

Taxation on                              
ordinary activities                        -             -             -

(Loss) after taxation                    (443)         (48)        (1,725)

Earnings per share                     (0.16p)      (0.02p)        (0.67p)
                   
                                             

Notes

1.   There is no taxation charge for the six months ended 30
     June 1999 due to tax losses brought forward.

2.   The  Earnings  per  share has been calculated  on  the
     weighted average number of Ordinary Shares in issue 30 June
     1999: 278,614,648 (31 December 1998: 257,322,753:  30 June
     1998: 243,996,251).

3.   The  abridged profit and loss account for  the  twelve
     months ended 31 December 1998 is an extract from the latest
     published  accounts  which  have  been  delivered  to  the
     Registrar of Companies; the audit report for those accounts
     was unqualified.

4.   The  accounting policies disclosed in the Group's 1998
     Report   and   Financial  Statements  have  been   applied
     consistently throughout the half year to 30 June 1999.


                        

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