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Osborne & Little (OSL)

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Friday 19 November, 1999

Osborne & Little

Interim Results - Half Year to 30 September 1999

Osborne & Little PLC
18 November 1999


      INTERIM RESULTS - HALF YEAR ENDED 30 SEPTEMBER 1999
                               
*    Osborne  &  Little, a leading designer and  international
     distributor  of  fine furnishing fabrics and  wallpapers,
     which  has  increased turnover, profits and earnings  per
     share  in  each of the last six years, announces  further
     increases:

                                       1999      1998   Change
                                                             %
     
     Turnover (£000)                 18,501    17,845      3.7
     Operating profit (£000)          2,568     2,393      7.3
     Pre-tax profit N (£000)          2,640     2,516      4.9
     EPS (p)                          26.29     25.49      3.1
     DPS (p)                             13        12      8.3
     Period end net cash (£000)       4,255     4,018      5.9

*    Sales  in  North America were up 7% in sterling terms  at
     £8.9m  (1998: £8.3m) and now represent 48% of total Group
     sales.   The  programme of showroom expansions  continues
     with  larger showrooms effective or planned for  Atlanta,
     Boston and San Francisco.

*    UK  sales  were marginally ahead at £6.2m (1998:  £6.1m),
     representing  34%  of  total Group sales,  after  the  7%
     decline  in  UK sales in the year to 31 March 1999,  with
     the   improvement  mostly  in  the  second  quarter   and
     continuing.

*    Sales  to  the  rest of the world were static  at  £3.4m,
     representing   18%  of  total  Group  sales,   reflecting
     difficult markets except Eire, where sales were ahead  by
     17%.

*    Several excellent collections were launched in September,
     notably  Just  Kidding, the first children's  collection,
     launched under the Liberty Furnishings label and  already
     generating excellent sales.

*    Sir  Peter  Osborne, Chairman & Chief  Executive,  stated
     'With  our two principal markets, North America  and  the
     UK,  continuing to perform up to expectations, we  remain
     confident  of another satisfactory outcome  to  the  full
     year.'

Enquiries:

Osborne & Little plc                             0181-675 2255
  Sir Peter Osborne (Chairman & Chief Executive)
  Peter Soar (Finance Director)

Bankside Consultants Limited                     0171-220 7477
  Charles Ponsonby



                     CHAIRMAN'S STATEMENT
                               
FINANCIAL OVERVIEW

I  am pleased to report an increase in pre-tax profit of 5% to
£2,640,000  (1998:  £2,516,000) for the  half  year  ended  30
September  1999,  on  turnover up 4% at £18.5  million  (1998:
£17.8  million).  Earnings per share rose 3% to  26.3p  (1998:
25.5p), reflecting a higher tax rate due to the larger element
of profit made in the USA, where effective rates are higher.

Net  cash balances at the end of September were higher at £4.3
million compared with £3.5 million at 31 March 1999.

DIVIDENDS

The  Board  has decided to increase the interim  dividend  per
share  to 13p (1998: 12p).  The interim dividend will be  paid
on  19  January 2000, to shareholders on the register at close
of business on 17 December 1999.

NORTH AMERICA

Sales were up 7% in sterling terms at £8.9 million (1998: £8.3
million).   North American sales now represent  48%  of  total
Group  sales.  The result is commendable in view of  the  fact
that,  as  I  mentioned  in my last Chairman's  Statement,  we
discontinued  distribution  of  a  brand  that,   last   year,
represented some 5% of our North American sales.

Our  programme  of  showroom expansions  continues.   We  have
enlarged  our  space  within the  showroom  of  our  agent  in
Atlanta,  and we will be moving to larger showrooms in  Boston
and San Francisco early in the New Year.

UNITED KINGDOM

UK  sales  were marginally ahead at £6.2 million  (1998:  £6.1
million).  This should be seen in the context of UK sales  for
the year to 31 March 1999, being down 7%, and is indicative of
an  upturn  in our home market in the current year.   Most  of
this  improvement came in the second quarter and has continued
into the opening weeks of the second half.  UK sales represent
34% of total Group sales.

Our  sales team has been strengthened by the addition of a new
sales  manager, and our product offering by several  excellent
collections launched in September.  Outstanding amongst  these
was  Just  Kidding, our first children's collection,  launched
under  the  Liberty  Furnishings label and already  generating
excellent sales.

REST OF THE WORLD

Sales  to  the  rest of the world, representing 18%  of  total
Group  sales,  were static at £3.4 million.   All  our  export
markets  were difficult (a notable exception being Eire,  with
sales ahead by 17%) and they have continued to be so into  the
second half.

France, where we have appointed a new sales manager with  many
years'  experience in our industry, was ahead  by  4%,  whilst
Germany,  where  we  also have our own  sales  operation,  was
unchanged.   Both  performances were  a  little  disappointing
given our view at the year-end that these markets were finally
emerging from recession.

PROSPECTS

With  our  two principal markets, North America  and  the  UK,
continuing to perform up to expectations, we remain  confident
of another satisfactory outcome to the full year.


Sir Peter Osborne Bt.
Chairman

19 November 1999



        UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
           for the half year ended 30 September 1999
                               
                                Half year  Half year      Year
                                    ended      ended     ended
                                  30 Sept    30 Sept    31 Mar
                                     1999       1998      1999
                                     £000       £000      £000
--------------------------------------------------------------
Turnover                           18,501     17,845    37,117
Cost of sales                      (7,620)    (7,321)  (15,279)
--------------------------------------------------------------
Gross profit                       10,881     10,524    21,838
==============================================================
Operating profit                    2,568      2,393     5,503
Net interest receivable                72        123       209
--------------------------------------------------------------
Profit on ordinary activities
  before taxation                   2,640      2,516     5,712
Taxation on profit on
  ordinary activities              (1,002)      (928)   (2,160)
--------------------------------------------------------------
Profit on ordinary activities
  after taxation                    1,638      1,588     3,552
Dividends                            (810)      (748)   (1,869)
--------------------------------------------------------------
Retained profit for the year          828        840     1,683
==============================================================
Earnings per share                 26.29p     25.49p    57.01p
==============================================================
Diluted earnings per share         25.70p     25.08p    56.09p
==============================================================
Dividends per share                   13p        12p       30p
==============================================================
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.

         ABRIDGED UNAUDITED CONSOLIDATED BALANCE SHEET
                    as at 30 September 1999
                               
                                  30 Sept    30 Sept    31 Mar
                                     1999       1998      1999
                                     £000       £000      £000
--------------------------------------------------------------
Fixed assets                        4,220      3,596     4,016
--------------------------------------------------------------
Current assets
Stocks and work in progress         7,509      7,551     7,717
Debtors: amounts falling
  due within one year               4,537      4,238     5,212
Cash at bank and in hand            4,255      4,018     3,528
--------------------------------------------------------------
                                   16,301     15,807    16,457
--------------------------------------------------------------
Creditors: amounts falling
  due within one year               8,001      8,325     8,756
--------------------------------------------------------------
Net current assets                  8,300      7,482     7,701
--------------------------------------------------------------
Creditors: amounts falling
  due after one year                    -        187         -
--------------------------------------------------------------
Equity shareholders' funds         12,520     10,891    11,717
==============================================================


      ABRIDGED UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
           for the half year ended 30 September 1999
                               
                                Half year  Half year      Year
                                    ended      ended     ended
                                  30 Sept    30 Sept    31 Mar
                                     1999       1998      1999
                                     £000       £000      £000
--------------------------------------------------------------
Cash flow from
  operating activities              3,164      2,737     5,754
Returns on investments and
  servicing of finance                 72        123       209
Taxation                             (696)      (498)   (2,438)
Capital expenditure                  (684)      (433)   (1,283)
Equity dividends paid              (1,121)    (2,119)   (2,867)
--------------------------------------------------------------
Increase/(decrease) in cash           735       (190)     (625)
==============================================================

   UNAUDITED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
           for the half year ended 30 September 1999
                               
                                Half year  Half year      Year
                                    ended      ended     ended
                                  30 Sept    30 Sept    31 Mar
                                     1999       1998      1999
                                     £000       £000      £000
--------------------------------------------------------------
Profit for the year                 1,638      1,588     3,552
Currency translation differences
on foreign currency
net investments                       (25)       (31)      (48)
--------------------------------------------------------------
Total recognised gains and losses   1,613      1,557     3,504
==============================================================

NOTES

1. TAXATION
   The  tax  charge for the half year ended 30 September  1999
   has  been based on the estimated tax rate for the full year
   of 38.0% (1998: 36.9%).

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 period.   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 in the table below:

                         1999                    1998
                 Earn- Number    Per   Earn-   Number     Per
                  ings     of  share    ings       of   share
                     £ shares amount       £   shares  amount
   ----------------------------------------------------------
   Basic
   earnings
   per
   share 1,638,000 6,230,965 26.29p 1,588,0006,230,965 25.49p
   Effect
   of dilutive
   securities:
   Options       -   143,393(0.59)p         -  102,000 (0.41)p
   ----------------------------------------------------------
   Diluted
   earnings
   per
   share 1,638,000 6,374,358 25.70p 1,588,0006,332,965 25.08p
   ==========================================================

3. RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOWS
   
                                                1999     1998
                                                £000     £000
   ----------------------------------------------------------
   Operating profit                            2,568    2,393
   Depreciation charges                          484      412
   (Profit)/loss on sale of
     tangible fixed assets                       (22)      12
   Decrease/(increase) in stocks                 208   (1,161)
   Decrease in trade debtors                     661    1,265
   (Increase) in prepayments
     and accrued income                           (2)    (197)
   (Decrease)/increase in
     trade creditors                            (373)     110
   (Decrease) in other taxation
     and social security                         (96)    (148)
   (Decrease)/increase in accruals
     and deferred income                        (264)      51
   ----------------------------------------------------------
   Net cash inflow from
     operating activities                      3,164    2,737
   ==========================================================
   
   There  was  an £8,000 exchange loss affecting the  movement
   in cash.
   
4. YEAR 2000
   Year  2000  plans are progressing satisfactorily  with  all
   critical systems now compliant.

   Additional  costs  since the last  financial  year  end  to
   achieve  compliance are difficult to estimate  but  are  in
   the region of £40,000.

   The  Directors believe that they are taking all  reasonable
   steps  to  minimise the risk of Year 2000 related  failures
   disrupting the business.

5. PREPARATION OF INTERIM FINANCIAL INFORMATION
   The  financial information set out herein has been prepared
   using  accounting  policies consistent  with  the  previous
   year,  but  does  not  comprise full  financial  statements
   within  the meaning of the Companies Act 1985 and  has  not
   been  audited.   The full year comparatives were  extracted
   from  the full Group Accounts which received an unqualified
   audit  report  and have been delivered to the Registrar  of
   Companies.

6. INTERIM REPORT
   Copies   of   this  Interim  Report  were   despatched   to
   shareholders  on  19 November 1999 and are  available  from
   the  Company Secretary at the registered office of  Osborne
   & Little plc at:
                               
              49 Temperley Road, London SW12 8QE
                      Tel:  020 8675 2255
                      Fax:  020 8673 8254
                               
              Email:  [email protected]
                               


                                                                                  

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