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Osborne & Little (OSL)

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Friday 02 June, 2000

Osborne & Little

Final Results - Year Ended 31 March 2000

Osborne & Little PLC
2 June 2000

              OSBORNE & LITTLE plc - 2000 PRELIMS
                               
   Special supplementary dividend proposed, Board confident
                               
*    Osborne   &   Little,  the  designer  and   international
     distributor  of  fine furnishing fabrics and  wallpapers,
     announces,  for  the  year ended  31  March  2000,  a  6%
     increase  in turnover to £39.3m (1999: £37.1m) and  a  3%
     decline  in pre-tax profits to £5.5m (1999: £5.7m)  after
     six   consecutive  annual  increases,  reflecting  senior
     management   recruitment   costs   and   testing   market
     conditions.

*    EPS  were 0.5% down at 56.7p (1999: £57.0p) and DPS of  47p
     (1999:  30p),  including  a special  supplementary  final
     dividend of 15p (1999: nil), are proposed in view of  the
     increase  in  year end net cash balances  to  £5.4m  from
     £3.5m.

*    Sales  to  North America were up 9% in sterling terms  at
     £17.8m  (1999:  £16.3m), representing 45%  of  the  Group
     total.  The expansion of the showroom network continues.

*    Sales  in  the  UK  were up 6% at £14.0m (1999:  £13.2m),
     representing  36% of the Group total, in a  market  which
     remains challenging despite a H2 improvement.

*    Sales  to  the rest of the world were down  1%  at  £7.5m
     (1999: £7.6m), representing 19% of the Group total,  with
     the   continuing  strength  of  sterling,  in  particular
     against   major   European  currencies,   affecting   the
     performance.

*    A  major  new computer system, which will hugely  enhance
     the  quality  of service, will be installed  in  calendar
     2001.

*    In  the  course of the year, 23 collections were launched
     across  the  Company's brands - Osborne  &  Little,  Nina
     Campbell  and  Liberty Furnishings  -  plus  five  fabric
     collections  from  Lorca,  the newly  represented  French
     brand.

*    Sir  Peter  Osborne,  Bt, Chairman and  Chief  Executive,
     stated  'The current year has started satisfactorily  and
     we look forward to the future with confidence.'

Enquiries:

Osborne & Little plc                             020-8675 2255
  Sir Peter Osborne (Chairman)
  Peter Soar (Finance Director)
Bankside Consultants Limited                     020-7220 7477
  Charles Ponsonby


CHAIRMAN'S STATEMENT

Financial Overview
After  six  consecutive annual increases, I have to  report  a
slight  decline  in pre tax profits for the full  year;  these
were  down 3% at £5,529,000 (1999 - £5,712,000). However,  due
to  a lower effective rate of tax on foreign earnings and  the
benefit of a reduced UK tax rate, earnings per share were only
down half a per cent at 56.7p (1999 - 57.0p).  Turnover was up
6% at £39.3 million against £37.1 million last year.

Some  additional  costs  were  incurred  in  the  second  half
principally  relating to the recruitment of senior management.
These,  together with testing market conditions,  combined  to
bring about the profit shortfall.

Net  cash  balances  at  the end of March  were  £5.4  million
compared with £3.5 million at 31 March 1999.

Dividends
The Board has decided to increase the final dividend per share
to  19p (1999 - 18p), and, in addition, in view of the Group's
healthy  cash  balances,  to declare a  special  supplementary
dividend per share of 15p (1999 - nil).  The combined dividend
will  be  paid on 21 July 2000 to shareholders on the register
at  close of business on 23 June 2000.  The total dividend per
share  declared  for  the  year, including  the  special  one,
amounts to 47p (1999 - 30p).

North America
Sales  were up 9% in sterling terms at £17.8 million  (1999  -
£16.3 million) and represent 45% of the Group total.  In March
we  opened  a new 4,200 square feet trade showroom in  Boston,
managed  by  our  existing agent; in the same  month  we  also
appointed  an independent showroom representative in Cleveland
-  a city where we had no previous presence.  Later this month
we will be opening our own 3,300 square feet trade showroom in
San  Francisco  bringing  the number of  showrooms  owned  and
managed  by  ourselves to four (New York, Chicago,  Washington
and  San Francisco).  It remains our policy to have a  mix  of
own showrooms and agents' showrooms across North America.

In  January we introduced a system of direct delivery from our
London warehouse to customers across North America.  This  has
resulted  in  greatly  reduced  delivery  times  and,  we  are
confident, will lead to increased business.

United Kingdom
Sales  were up 6% at £14.0 million (1999 - £13.2 million)  and
represent 36% of the Group total.

Whilst the second half saw an improvement on the first, the UK
market still remains challenging.  Contract sales, up only 2%,
were  disappointing.  A new contracts manager and  sales  team
are  in  place,  and  we look forward to  a  revival  in  this
important  sector.

Rest of the World
Sales  to the rest of the world, representing 19% of the Group
total,  were  down  1% at         £7.5 million  (1999  -  £7.6
million) .  The continuing strength of sterling, in particular
against   major   European  currencies,   has   affected   the
performance.

In  France, where we have our own sales operation, we achieved
a  commendable 19% increase, 25 % in french francs,  over  the
previous  year.  We are confident that, in the  current  year,
this  market will begin to contribute hitherto elusive profits
towards  the overall Group result.  In Germany, where we  also
operate  our  own  sales organisation, sales  were  static  in
deutschmarks but down 5% in sterling.

General
We  believe  that  service  levels  have  become  increasingly
important to our business.  Ready access to information, speed
of  delivery  and  quality of goods are  now  key  factors  in
today's high expectation market place.  Our prime objective is
to   fulfil   these  expectations.   To  this  end   we   have
commissioned  a  major  new computer  system  to  replace  our
existing one which is now 15 years old.  It will go live early
next  year.  The benefits will be far-reaching, including bar-
coding  and  batch-control of stock and an improved  real-time
link  with  the USA; in phase two, during 2001, stock  enquiry
and  sales  order  entry will be available to trade  customers
over  the  internet.  When the new system is fully operational
it   will  hugely  enhance  the  quality  of  service  to  our
customers.

Equally  important  is the flow of good collections  from  our
studios, as our business becomes more fashion-driven.   It  is
pleasing  to note that ranges launched in the last  two  years
account  for  36% of sales compared with 31% in  the  previous
year,  indicating  that  we  continue  to  produce  successful
collections.

In  the  course of the year we launched 23 collections  across
our  brands,  Osborne  &  Little, Nina  Campbell  and  Liberty
Furnishings.  These  included collections  of  fabric  prints,
weaves,  silks,  wools,  trimmings,  wallpapers  and  contract
wallcoverings,  illustrating  the  breadth  of   our   product
offering.

We also launched five fabric collections from Lorca, our newly
represented line from France; although sales are still  fairly
small  we have high expectations for this line in the  UK  and
USA, as the name begins to achieve recognition.

My  thanks  go,  as always, to our staff worldwide  for  their
enthusiasm and commitment, which are such important factors in
our continuing financial success.

Current Trading and Prospects
The  current  year  has  started satisfactorily  and  we  look
forward to the future with confidence.


Sir Peter Osborne Bt
Chairman and Chief Executive                       2 June 2000



CONSOLIDATED PROFIT AND LOSS ACCOUNT

Year ended 31 March                  Notes      2000      1999
                                                £000      £000
--------------------------------------------------------------
Turnover                                      39,325    37,117
Cost of sales                                (16,498)  (15,279)
--------------------------------------------------------------
Gross profit                                  22,827    21,838
==============================================================
Operating profit                               5,353     5,503
Net interest receivable                          176       209
--------------------------------------------------------------
Profit on ordinary activities
before taxation                                5,529     5,712
Taxation on ordinary activities               (1,996)   (2,160)
--------------------------------------------------------------
Profit for the year                            3,533     3,552
Dividends                                1    (2,929)   (1,869)
--------------------------------------------------------------
Retained profit for the year                     604     1,683
==============================================================
Basic earnings per share                 2     56.7p     57.0p
==============================================================
Diluted earnings per share               2     55.4p     56.1p
==============================================================
Dividends per share                      1     47.0p     30.0p
==============================================================


All activity has arisen from continuing operations.

There is no material difference between the profit on ordinary
activities  before taxation and the retained  profit  for  the
year stated above and their historical cost equivalents.

CONSOLIDATED SUMMARISED BALANCE SHEET

At 31 March                                     2000      1999
                                                £000      £000
--------------------------------------------------------------
Fixed assets                                   4,067     4,016
Current assets
Stock                                          7,218     7,717
Debtors                                        6,125     5,212
Cash                                           5,429     3,528
--------------------------------------------------------------
Current assets                                18,772    16,457
--------------------------------------------------------------
Current liabilities
Creditors                                     10,525     8,756
--------------------------------------------------------------
Equity shareholders' funds                    12,314    11,717
==============================================================
PBT/year end shareholders' funds               44.9%     48.7%
==============================================================

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

Year ended 31 March                             2000      1999
                                                £000      £000
--------------------------------------------------------------
Profit for the year                            3,533     3,552
Currency translation differences
on foreign currency
net investments                                   (7)     (48)
--------------------------------------------------------------
Total recognised gains and
losses for the year                            3,526     3,504
==============================================================


CONSOLIDATED SUMMARISED CASH FLOW STATEMENT

Year ended 31 March                             2000      1999
                                        Note    £000      £000
--------------------------------------------------------------
Net cash inflow from
operating activities                       3   6,689     5,754
Returns on investments
and servicing of finance                         176       209
Taxation                                      (1,963)   (2,438)
Capital expenditure                           (1,059)   (1,283)
Equity dividends paid                         (1,931)   (2,867)
--------------------------------------------------------------
Increase/(decrease) in cash                    1,912      (625)
==============================================================

NOTES

1.   Dividends

     The  Directors  have paid and now propose  the  following
     dividends in respect of the year ended 31 March 2000:

                                                2000      1999
                                                £000      £000
     ---------------------------------------------------------
     Interim paid of 13p
       (1999 - 12p) per share                    810       748
     Final proposed of 19p
       (1999 - 18p) per share                  1,184     1,121
     Special supplementary proposed of 15p
     (1999 - nil) per share                      935         -
     ---------------------------------------------------------
                                               2,929     1,869
     =========================================================
        
     If  approved  at the Annual General Meeting  on  18  July
     2000,   the  proposed  final  and  special  supplementary
     dividends will be paid on 21 July 2000 to shareholders on
     the register at close of business on 23 June 2000.

2.   Earnings per share

     Basic  earnings per share is calculated using the  profit
     on ordinary activities after tax and the weighted average
     number of ordinary shares in issue during the year.   For
     diluted earnings per share the weighted average number of
     ordinary shares is adjusted to assume conversion  of  all
     dilutive  potential ordinary shares.   Full  details  are
     given below:

                          2000                    1999
                        Number                  Number
              Earnings      of    EPS Earnings      of        EPS
                     £  shares      p        £  shares         p
     ---------------------------------------------------------
     Basic earnings per
     share  3,533,000 6,230,965  56.70 3,552,000 6,230,965  57.01
     Effect of dilutive
     securities:
     Options        -   151,500 ( 1.35)        -   102,000  (0.92)
     ---------------------------------------------------------
     Diluted earnings
     per share3,533,000 6,382,465 55.35 3,552,000 6,332,965 56.09
     =========================================================
     
     
3.   Reconciliation  of  operating profit  to  operating  cash
     flows

                                                  2000    1999
                                                  £000    £000
     ---------------------------------------------------------
     Operating profit                            5,353   5,503
     Depreciation, net of
     profits and losses
     on sale of fixed assets                     1,012     890
     Decrease/ (increase) in stocks                499  (1,327)
     (Increase)/ decrease in debtors              (929)     92
     Increase in creditors                         754     596
     ---------------------------------------------------------
     Net cash inflow from operating activities   6,689   5,754
     =========================================================
    
     
4.   Consolidated results

     The  consolidated  results shown do not  constitute  full
     accounts  for  the Group.  The Group's accounts  for  the
     year  ended  31 March 2000 received an unqualified  audit
     opinion on 2 June 2000.  Copies of the full accounts  for
     the  year  ended  31  March 2000 will  be  circulated  to
     shareholders for approval at the Annual General  Meeting,
     which will be held on 18 July 2000.

     The  Group's  accounts for the year ended 31  March  1999
     received an unqualified Audit Report and have been  filed
     with the Registrar of Companies.

                                                                                                                            

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