Information  X 
Enter a valid email address

Osborne & Little PLC (OSL)

  Print      Mail a friend

Friday 04 July, 2003

Osborne & Little PLC

Final Results

Osborne & Little PLC
04 July 2003


                              Osborne & Little plc
              Preliminary Results for the year ended 31 March 2003


4th July 2003

                                                           2003           2002
Turnover                                                  £33.1m         £36.6m
Operating (loss) /profit                                £(0.089)m       £0.494m

Group (loss) /profit before tax                         £(0.139)m       £0.414m
(Loss)/Earnings per share                                 (9.26)p         3.87p
Dividend per share(1)                                        0.0p         13.0p


• Loss before tax of £139,000, due to challenging trading conditions
• UK Staff reduced by 15 per cent
• Other costs constantly monitored
• e-commerce up and running

Sir Peter Osborne, Chief Executive, Osborne & Little plc (the 'Company'),
commented:

'The financial year 2003 was a difficult one for the Group as I indicated at the
time of the trading update on 28 March 2003, and this is reflected in the full
year results. We experienced difficult market conditions during the year to 31
March 2003, and the current trading environment, in the first three months of
the current year, shows no indication of short term recovery in the group's two
major markets, the UK and the USA.

In the circumstances, the Board is managing the business carefully with
attention to costs, risks and opportunities to deal with these difficult market
conditions.'

                                    - ends -


For further information, please contact:

Osborne & Little plc
Sir Peter Osborne, Chief Executive                         020 8675 2255
Peter Soar, Finance Director


(1)It was announced today that the boards of O&L Acquisition plc and the Company
had reached agreement on the terms of a recommended offer to be made on behalf
of O&L Acquisition plc for the whole of the issued and to be issued share
capital of the Company. If the offer does not become or is not declared wholly
unconditional, the board has no current intention to declare a dividend for the
52 weeks ended 31st March 2003.


Chairman's Statement


The financial year ended 31 March 2003 was one of the most difficult that I can
recall, due to generally weak demand in all our markets together with the war in
Iraq, falling share prices and a declining US dollar.

Turnover fell by 9 per cent to £33.1 million (2002 - £36.6 million). The Group
made a net loss before tax of £139,000 (2002 - profit of £414,000) and a net
loss after tax of £560,000 (2002- profit of £236,000) after releasing part of
the deferred tax asset amounting to £477,000 which relates to long term timing
differences in our USA subsidiary. The loss per share for the year was 9.26p
(2002 - earnings per share of 3.87p).

As a result of the cost-cutting measures that I have referred to in previous
statements, and careful stock and debtor management, the net bank balance at the
end of March was £1.5 million, an inflow of £1.8 million during the year.

The Directors do not recommend the payment of a dividend.

An overview of our major markets follows for the year ended 31 March 2003:

North America

Sales declined by approximately 13 per cent to £16 million (2002 - £18.3
million) being a combination of a 6 per cent reduction in gross sales and a 7
per cent reduction in the US dollar. Whilst the rate of decline in sales has
slowed, it is disappointing that we have not seen a return to growth.

In the course of the year we decided to part company with our agent in Atlanta -
our second largest market in the USA after New York - and we have appointed a
new agent as from 1 July 2003.

The USA represents just under 50 per cent of total Group sales and only when
market and currency conditions improve will we be able to look forward to a
return to Group profitability.

United Kingdom

Sales declined by 7 per cent to £11 million (2002 - £11.8 million). At the half
year sales were down 4 per cent so it is disappointing that there has been a
further decline in the second half of the year.

We have reduced the number of staff by some 15 per cent and we continue to
monitor staff levels in all departments on a regular basis. During the year we
renewed the leases on our warehouse in Merton and our showroom in Chelsea. The
latter is shortly to undergo refurbishment.

Rest of the World

Sales declined by 5 per cent to £6.1 million (2002 - £6.4 million). Whilst the
strong euro has worked in our favour, particularly in the second half of the
year, demand throughout Europe has been consistently weak.

On 1 April 2003 we closed Osborne & Little SARL in France and any French costs
will now be borne directly by Osborne & Little plc.

Our e-commerce facility is running smoothly and is widely, and increasingly,
used in all our principal overseas markets.

Current Trading & Prospects

There has been no indication in the first three months of the current year of a
recovery in the Group's two major markets, the UK and the USA. With the dollar
continuing its slide, it is very difficult to predict when the position will
stabilise. Whereas the strong euro has helped our European sales, this positive
impact is offset by substantial purchases of woven product in euros.

Our strategy of cost-cutting will continue through what is proving to be a very
difficult period. We anticipate a sustained period of difficult trading
conditions.

Management Buyout

It was announced today that the boards of O&L Acquisition plc and the Company
had reached agreement on the terms of a recommended offer to be made on behalf
of O&L Acquisition plc for the whole of the issued and to be issued share
capital of the Company. For further details, please see the Offer Document which
was sent to shareholders today.


Sir Peter Osborne Bt.
Chairman

4 July 2003


Enquiries

Osborne & Little plc 020 8675 2255
Sir Peter Osborne Bt. (Chairman) 07799 691757
Peter Soar (Finance Director) 020 8675 2255


CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                                              
Year ended 31 March                             Notes         2003        2002
                                                              £000        £000
                                                          ----------  ----------
Turnover                                                    33,121      36,552
Cost of sales                                              (15,017)    (15,406)
                                                          ----------  ----------
Gross profit                                                18,104      21,146
                                                          ==========  ==========
Operating (loss) / profit                                      (89)        494
Net Interest (payable)                                         (50)        (80)
                                                          ----------  ----------
(Loss) / profit on ordinary activities before                 (139)        414
taxation
Taxation on ordinary activities                               (421)       (178)
                                                          ----------  ----------
(Loss) / profit for the year                                  (560)        236
Dividends                                            1           -        (793)
                                                          ----------  ----------
Retained (loss) for the year                                  (560)       (557)
                                                          ==========  ==========
(Loss) / earnings per share                          2       (9.26)p      3.87p
                                                          ==========  ==========
Diluted (loss) / earnings per share                  2       (9.26)p      3.78p
                                                          ==========  ==========


All activity has arisen from continuing operations.

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


CONSOLIDATED SUMMARISED BALANCE SHEET
                                                                          
At 31 March
                                                       2003               2002
                                                       £000               £000
                                                   ----------         ----------
Fixed assets                                          3,971              4,494
                                                   ----------         ----------
Current assets
Stocks                                                6,785              7,843
Debtors                                               5,151              7,313
Cash                                                  1,492              1,398
                                                   ----------         ----------
                                                     13,428             16,554
                                                   ----------         ----------
Current liabilities
Bank overdraft                                            -              1,846
Creditors                                             5,738              6,706
                                                   ----------         ----------
                                                      5,738              8,552
                                                   ----------         ----------

Net Current Assets                                    7,690              8,002
                                                   ----------         ----------
Equity shareholders' funds                           11,661             12,496
                                                   ==========         ==========


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


Year ended 31 March                                           2003        2002
                                                              £000        £000
                                                          ----------  ----------
(Loss) / profit for the year                                  (560)        236
Currency translation differences on foreign currency net       (62)          9
investments                                               ----------  ----------
Total recognised gains and losses for the year                (622)        245
                                                          ==========  ==========


CONSOLIDATED SUMMARISED CASH FLOW STATEMENT

Year ended 31 March                              Note         2003        2002
                                                              £000        £000
                                                          ----------  ----------
Cash inflow from operating activities                3       2,813       1,595
                                                          ----------  ----------
Returns on investments and servicing of
finance
Interest paid                                                  (52)        (99)
Interest received                                                2          19
                                                          ----------  ----------
Net cash outflow from returns on investment and                (50)        (80)
servicing of finance                                      ----------  ----------
Taxation                                                        (8)       (577)
                                                          ----------  ----------
Capital expenditure
Purchase of tangible fixed assets                             (847)     (1,230)
Sale of tangible fixed assets                                  135          55
                                                          ----------  ----------
Net cash outflow for capital expenditure                      (712)     (1,175)
                                                          ----------  ----------
Equity dividends paid to shareholders                            -      (1,953)
                                                          ----------  ----------
Cash inflow / (outflow) before financing                     2,043      (2,190)
Financing:
Issue of own shares                                              -          14
Purchase of own shares                                        (213)        (63)
                                                          ----------  ----------
Increase /(decrease) in cash                         4       1,830      (2,239)
                                                          ==========  ==========


NOTES


1.  Dividends

The Directors do not recommend a dividend in respect of the year ended 31 March
2003:

                                                           2003          2002
                                                           £000          £000
                                                       ----------    ----------
Interim paid of nil (2002 - 13p) per share                    -           793
Proposed final of nil (2002 - nil) per share                  -             -
                                                       ----------    ----------
                                                              -           793
                                                       ==========    ==========


2.  (Loss) / earnings per share


Basic (loss) / earnings per share is calculated using the loss 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. The effect of options is anti-dilutive for the current year.
Full details are given in the table below:


                              2003                                  2002   
                 Loss      Number of    Per share  Earnings    Number of   Per share
                    £       shares         amount         £      shares       amount
                                                   
              --------    --------       --------   --------    --------   --------
Basic        (560,000)   6,049,089        (9.26)p   236,000    6,096,447      3.87p
(loss) /
earnings
per share

Effect of
dilutive
securities:

Options             -            -            -           -      144,000     (0.09)p
               --------     --------     --------    --------     --------  --------
Diluted      (560,000)   6,049,089        (9.26)p   236,000    6,240,447      3.78p
(loss) /       ========     ========     ========    ========     ========  ========
earnings
per share



3.  Reconciliation of operating (loss) / profit to operating cash flows


                                                               2003       2002
                                                               £000       £000
                                                           ----------  ---------
Operating (loss) / profit                                       (89)       494
Depreciation, net of profits and losses on sale of fixed      1,129      1,264
assets
Decrease in stocks                                            1,058      1,173
Decrease / (increase) in debtors                              1,748       (359)
(Decrease) in creditors                                      (1,033)      (977)
                                                           ----------  ---------
Net cash inflow from operating activities                     2,813      1,595
                                                           ==========  =========



4.  Analysis of Net Funds

                                 1 April        Movement         31 March 2003
                                    2002
                                    £000            £000                  £000
                                 ---------       ---------             ---------
Cash at bank and in hand           1,398              94                 1,492
Bank overdrafts                   (1,846)          1,846                     -
                                 ---------       ---------             ---------
Net funds / (debt)                  (448)          1,940                 1,492
                                 =========       =========             =========


The effect of foreign exchange rates was £110,000, which is included in the
movement during the year of £1,940,000.



5.  Consolidated results


The consolidated results shown do not constitute full accounts for the Group.
The Group's accounts for the year ended 31 March 2002 received an unqualified
Audit Report on 13 June 2002 and have been filed with the Registrar of
Companies. Copies of the full accounts for the year ended 31 March 2003 include
an unqualified audit report and will be circulated to shareholders for approval
at the Annual General Meeting, which will be held on 28 July 2003, and will be
available to the general public free of charge during office hours for one month
from the date of this announcement at 49 Temperley Road, London, SW12 8QE.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
                                                                                                                                   

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