Osborne & Little PLC
28 November 2002
Osborne & Little plc
Interim Results
for the half year ended 30 September 2002
CHAIRMAN'S STATEMENT
FINANCIAL OVERVIEW
Whilst our results for the first half of the year are an improvement on the
comparable period last year, it is disappointing that they are not markedly
better. Weak demand in all our major markets has resulted in a 6% drop in
turnover to £16.9 million (2001 - £18.1 million). The loss before taxation has
reduced to £60,000, against a loss last year of £308,000.
There has been a positive cash inflow from operating activities of £1.2 million,
which after capital expenditure of £417,000, and buying in 72,538 of our own
shares at a cost of £213,000, resulted in a cash increase of £583,000. At the
halfway stage we were in a net cash position. Our policy on dividends is to
distribute to shareholders a substantial part of our annual profits. In the
absence of such profits, and notwithstanding our strong balance sheet, we have
decided not to declare an interim dividend. We remain committed, however, to
returning to dividend payments at the earliest opportunity.
In my last Chairman's Statement, in June 2002, I listed a range of cost saving
measures that we had implemented. Some have already taken effect and some will
only do so in the second half of the year and into next year. Staff levels have
fallen, from the beginning of this financial year, by some 8% largely as a
result of not replacing staff who have left. We continue to look at other ways
in which costs can be reduced without sacrificing quality or service.
A brief overview of our major markets follows:-
NORTH AMERICA
Sales were down 8% at £8.8 million (2001- £9.6 million). In dollar terms they
reduced by 4%, which is an improvement on last year when they were down 10%.
We now have showroom presence in two new locations, Laguna Niguel (in
California) and Honolulu. In Dallas our agents have moved to a new showroom and
allocated us 6,000 sq ft, giving us our largest showroom presence of anywhere in
the USA.
UNITED KINGDOM
Sales were down 4%, at £5.3 million (2001- £5.5 million). Again, whilst this is
an improvement on last year's fall of 12%, it is disappointing that we are not
seeing real growth.
We launched 13 collections in September from our three brands, Osborne & Little,
Nina Campbell and Liberty Furnishings. The initial reaction has been extremely
encouraging.
REST OF THE WORLD
Sales were down 6% overall at £2.8 million (2001- £3.0 million). European
markets are proving to be particularly challenging, with weak demand and a
strong pound impacting on margins.
CURRENT TRADING AND PROSPECTS
Whilst trading in our principal markets shows little sign of improving
significantly in the months ahead, there are one or two bright spots; staffing
and other costs are coming down and our business to business e-commerce facility
will soon become fully operational, giving a boost to our service capabilities.
However, whilst the second half has historically been stronger than the first,
we can only be cautious about the full year's outcome.
Sir Peter Osborne Bt.
Chairman
28 November 2002
Enquiries
Osborne & Little plc 020 8675 2255
Sir Peter Osborne Bt. (Chairman) 07799 691757
Peter Soar (Finance Director) 020 8675 2255
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the half year ended 30 September 2002
Notes Half year ended Half year ended Year ended
30 September 2002 30 September 2001 31 March
2002
£000 £000 £000
Turnover 16,943 18,108 36,552
Cost of sales (7,297) (7,876) (15,406)
Gross profit 9,646 10,232 21,146
Operating (loss)/ profit (14) (308) 494
Net interest (46) - (80)
(Loss)/ profit on ordinary activities before (60) (308) 414
taxation
Taxation on ordinary activities (1) 17 (45) (178)
(Loss)/ profit on ordinary activities after (43) (353) 236
taxation
Dividends - (793) (793)
Retained (loss) for the period (43) (1,146) (557)
(Loss)/ earnings per share (2) (0.71)p (5.79)p 3.87p
Diluted (loss)/ earnings per share (2) (0.71)p (5.79)p 3.78p
Dividends per share - ordinary nil 13p 13p
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 period stated above and their historical
cost equivalents.
ABRIDGED UNAUDITED CONSOLIDATED BALANCE SHEET
as at 30 September 2002
Notes 30 September 2002 30 September 31 March
2001 2002
£000 £000 £000
Fixed assets 4,257 4,631 4,494
Current assets
Stocks and work in progress 7,892 8,859 7,843
Debtors: amounts falling due within one year 6,515 6,772 7,313
Cash at bank and in hand (3) 1,528 1,743 1,398
15,935 17,374 16,554
Creditors: amounts falling due within one year
Bank overdrafts (3) 1,298 2,106 1,846
Creditors 6,714 8,029 6,706
8,012 10,135 8,552
Net current assets 7,923 7,239 8,002
Equity shareholders' funds 12,180 11,870 12,496
ABRIDGED UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
for the half year ended 30 September 2002
Notes Half year ended Half year ended Year ended
30 September 2002 30 September 31 March 2002
2001
£000 £000 £000
Cash inflow/ (outflow) from operating activities (4) 1,210 (5) 1,595
Returns on investments and servicing of finance (46) - (80)
Taxation 49 (264) (577)
Capital expenditure (417) (669) (1,175)
Equity dividends paid - (1,157) (1,953)
Purchase of own shares/ share proceeds (213) (53) (49)
Increase/ (decrease) in cash 583 (2,148) (2,239)
UNAUDITED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the half year ended 30 September 2002
Half year ended Half year ended 30 Year ended
30 September 31 March September
2002 2001 2002
£000 £000 £000
(Loss)/ profit (43) (353) 236
Currency translation differences on foreign currency
net investments (61) (25) 9
Total recognised gains and losses (104) (378) 245
NOTES
30 September 2002
1. Taxation
The tax for the half year ended 30 September 2002 has been based on the
estimated tax rate for the full year.
2. (Loss)/ earnings per share
Basic (loss)/ earnings per share is calculated using the (loss)/ profit on
ordinary activities after tax and the weighted average number of ordinary
shares in issue during the year. The effect of the options is anti-dilutive due
to the loss for the period. Full details are given below:
Half year ended 30 September 2002 Half year ended 30 September 2001
Losses Number Per share Losses Number Per share
£ of shares amount £ of shares amount
Basic loss per share (43,000) 6,070,633 (0.71)p (353,000) 6,095,424 (5.79)p
Effect of dilutive securities:
Options - - - - - -
Diluted loss per share (43,000) 6,070,633 (0.71)p (353,000) 6,095,424 (5.79)p
3. Analysis of net funds/ (debt)
1 April Exchange 30 September
2002 Cashflow movement 2002
£000 £000 £000 £000
Cash at bank and in hand 1,398 35 95 1,528
Bank overdraft (1,846) 548 - (1,298)
(448) 583 95 230
4. Reconciliation of operating (loss)/ profit to operating cash flows
Half year ended Half year ended Year ended
30 September 2002 30 September 2001 31 March
2002
£000 £000 £000
Operating (loss)/ profit (14) (308) 494
Depreciation charges 564 599 1,226
(Profit)/ loss on sale of tangible fixed assets (11) (8) 38
(Increase)/ decrease in stocks (49) 157 1,173
Decrease/ (Increase) in debtors 738 124 (359)
(Decrease) in creditors (18) (569) (977)
Net cash inflow/ (outflow) from operating activities 1,210 (5) 1,595
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 28 November
2002 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 8772 9200
Email: [email protected]
This information is provided by RNS
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