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Yorklyde PLC (YKLD)

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Tuesday 23 April, 2002

Yorklyde PLC

Final Results

Yorklyde PLC
23 April 2002


YORKLYDE PLC

    Tuesday 23 April 2002



                                    Yorklyde plc
            Preliminary results for the year ended 31st January 2002


Yorklyde plc, a manufacturer of high value cloth and accessories for the luxury
goods sector and high specification fabrics for use in the transport industry,
today announced its preliminary results:


Highlights

•    Profits before tax of the ongoing businesses of £307,000 (2001:
     £426,000)

•    Group profit before tax of £7,000 (2001:  loss £626,000)

•    Earnings per share of the ongoing businesses 2.7p (2001: 2.6p)

•    Group turnover of £19.5 million (2001: £21.9 million)

•    The completion of the disposal of the Westcountry Clothing business to a 
     management buy-out team in May 2001, and the sale of Manor Works, Newton
     Abbot, the Westcountry Clothing property, for £380,000, to be completed in 
     May 2002

•    The proposed transfer of the remaining manufacturing facility in Langholm 
     to Peebles in order to concentrate the manufacturing of apparel jacketing 
     fabrics on one site.  This is expected to result in annual cost savings of 
     around £400,000 with a one-off cost in this year's accounts of around
     £200,000

•    A strong asset base with net assets per ordinary share of 142.7p 
     (2001:  145.2p) with low gearing of 11.8% (2001:  7.2%)

•    The proposal by the Directors to maintain the final dividend of 1.75p per 
     share (2001:  1.75p) giving a total of 3.0p (2001 3.0p) payable on 1 July
     2002 to those shareholders on the register on 31 May 2002.

Commenting on the results, Charles Brook, Chairman, said:

'The past year has been one of the most unpredictable I can ever remember and I
believe that the tragic events of 11 September are still having a profound
effect on the economies of the world and the various businesses on whom we all
depend.  However I do believe that, whilst we are still experiencing many of
these difficulties, towards the end of the year we expect to see an improvement
in trade which will ultimately benefit our Group.

In the meantime the Board is continuing to take positive steps to improve the
level of the Group's profitability.  In addition to the transfer of the
manufacturing facility in Langholm to concentrate the manufacturing of apparel
jacketing fabrics on one site there are a number of other material overhead cost
reductions being implemented.  These will have a limited effect in the current
year due to the costs of reorganisation but will have a positive effect on
profitability in the following year.


For further information, please contact:


Yorklyde plc 01484 683 611
Charles A Brook, Chairman


                               CHAIRMAN'S STATEMENT


In my statement last year I expressed a degree of optimism as to the future
prospects of the Group.  This sentiment was supported by the results announced
in our interim report, issued on 6 September 2001, despite our concern with the
well publicised downturn in global economic activity, particularly with
reference to our business in the United States.  However nobody could have
foreseen the tragic events of 11 September 2001 and the resultant effect that
this has had on the world economy and on all types of business.  Your Group has
been, along with many others, adversely affected by the downturn in retail sales
affecting all parts of the company and the initial immediate reduction in air
travel affecting our Replin business.  Nevertheless there has been a return to
Group profitability in the year despite the inclusion of the operating losses of
the Westcountry Clothing business in the three months prior to its sale in May
2001.  However the return to normality is taking longer than initially expected
and this will undoubtedly adversely affect the current year's results.



HIGHLIGHTS

•    Profits before tax of the ongoing businesses of £307,000 (2001: £426,000)

•    Group profit before tax of £7,000 (2001:  loss £626,000)

•    Earnings per share of the ongoing businesses 2.7p (2001:  2.6p)

•    Group turnover of £19.5 million (2001:  £21.9 million)

•    The completion of the disposal of the Westcountry Clothing business to a 
     management buy-out team in May 2001, and the sale of Manor Works, Newton
     Abbot, the Westcountry Clothing property for £380,000, to be completed in 
     May 2002.

•    The proposed transfer of the remaining manufacturing facility in Langholm 
     to Peebles in order to concentrate the manufacturing of apparel jacketing 
     fabrics on one site.  This is expected to result in annual cost savings of 
     around £400,000 with a one-off cost in this year's accounts of around
     £200,000.

•    A strong asset base with net assets per ordinary share of 142.7p 
     (2001:145.2p) with low gearing of 11.8% (2001:  7.2%).

•    The proposal by the Directors to maintain the final dividend of 1.75p per 
     share (2001:  1.75p) giving a total of 3.0p (2001:  3.0p) payable on 1 July
     2002 to those shareholders on the register on 31 May 2002.



DIVISIONAL REVIEW

As indicated earlier, the year just ended has changed from one where your
Directors expressed cautious optimism as to the future to a year ending where
there continues to be a great deal of uncertainty in the world.  This has
resulted in customers being very cautious in placing orders in the aftermath of
11 September when retail sales declined markedly and air travel volumes
collapsed overnight.  This resulted in our statement to the Stock Exchange on 19
October in which we indicated that the uncertainty would impinge upon the
Group's year end results and would mean that the year end results would not meet
the analysts' expectations at that time.  In the event, the Group is announcing
a small reduction in both turnover and operating profit on ongoing activities
against the previous year.

Replin Fabrics suffered a major reduction in their second half turnover due to
orders being delayed by the aircraft manufacturers and airlines but nevertheless
maintained robust margins and there are now indications of an upturn in business
as normality in air travel begins to return.

The apparel business in Peebles, consisting of Robert Noble, Arthur Bell and
Whiteley & Green, has had a difficult year.  The first 6 months were
satisfactory but the downturn in the United States materially affected the order
book and meant that the Spring business was minimal and the orders placed for
delivery of garments to the retail for Winter 2002/3 were reduced in line with
the downturn in retail sales.  Although there is a feeling that there will be
improvements for next season, it is still too early to forecast future levels of
activity.

As a result of these difficulties we have decided to concentrate all our apparel
jacketing production in Peebles and as a consequence of this, the Board have
agreed to close our facility in Langholm during the summer shutdown.  This is
expected to result in annual cost reductions of around £400,000 with a one-off
cost of around £200,000 and a more balanced manufacturing facility that reflects
the current state of trade.  This has been a most difficult decision for the
Board in view of the exceptional loyalty shown by our staff in Langholm and it
is always sad to have to reach what can only be described as a painful outcome
resulting from a very difficult trading situation.

Alex Begg, based in Ayr, has also suffered a small downturn in turnover but
continues to be profitable, albeit at a lower level than last year due largely
to fluctuations in the price of raw materials, particularly cashmere.  However
the continued effort to develop new ranges, with our designers working closely
with the designers of many of the leading fashion houses in the world, gives
cause for cautious optimism.

The Moorhouse & Brook division, based in Huddersfield, has moved back into
profitability.  Although current order levels are considerably lower than this
time last year, the order pattern is very different to a normal year due to the
factors that disrupted trade, already mentioned, and it is therefore difficult
to forecast for the remainder of the year.

Last year we completed the sale of the Westcountry garment business to a
management buy-out team and we have now, this month, exchanged contracts for the
sale of the premises in Newton Abbot for £380,000, to be completed in May 2002,
which effectively completes the disposal of that division.


PROSPECTS

The past year has been one of the most unpredictable I can ever remember and I
believe that the tragic events of 11 September are still having a profound
effect on the economies of the world and the various businesses on whom we all
depend.  However I do believe that whilst we are still experiencing many of
these difficulties, towards the end of the year we expect to see an improvement
in trade which will ultimately benefit our Group.

In the meantime the Board is continuing to take positive steps to improve the
level of the Group's profitability.  Earlier in my report I have highlighted the
sale of Manor Works in Newton Abbot for a price in excess of book value and also
the transfer of the manufacturing facility in Langholm to concentrate the
manufacturing of apparel jacketing fabrics on one site.  In addition a number of
other material overhead cost reductions are being implemented which will have a
limited effect in the current year due to the costs of reorganisation but will
have a positive effect on profitability in the following year.

We are ready to take advantage of any upturn, but at this point in time, it is
very difficult to predict the future.  However the Board believes that, if the
effects of the reduction in overhead levels are accompanied by a further
recovery both in volume and gross margin, there is a reasonable prospect of
improved profitability and an enhancement of shareholder value.

We have a very hard working and loyal workforce and, particularly in the present
trading conditions, I should like to thank them all on behalf of both the
Directors and Shareholders for their continued support and help in ensuring that
we have a future that we can all look forward to with some confidence.


Charles A Brook
Chairman
23rd April 2002


Consolidated Profit & Loss Account
For the year ended 31 January 2002

                                                                                       As restated
                                                                           2002               2001
                                                                          £'000              £'000

Turnover

Ongoing businesses                                                       19,460             20,773
Westcountry Clothing                                                         76              1,144
Total                                                                    19,536             21,917


Operating costs before exceptional items                                 19,386             21,655
Exceptional items                                                             -                729
                                                                         19,386             22,384


Group operating profit/(loss)
Ongoing businesses                                                         450                 585                     
                                                                          
Westcountry Clothing                                                      (300)             (1,052)
                                                                                             
                                                                           150                (467)

Interest                                                                   143                 159

Profit/(loss) before taxation                                               7                 (626)                  
                                                                           

Taxation                                                                   (45)              (160)

Profit/(loss) for the financial year                                        52               (466)                   
                                                                          

Dividends                                                                  313                301
                                                                  

Loss for the financial year                                               (261)              (767)

Profit/(loss) per ordinary share - basic and diluted                       0.5p             (4.4)p



Consolidated Statement of Total Recognised Gains and Losses
For the year ended 31 January 2002

                                                                                       As restated
                                                                           2002               2001
                                                                          £'000              £'000

Profit/(loss) for the year
      being the recognised gains and losses relating to the year             52              (466)                      
                                                                 

Prior year adjustment                                                     (157)

Total recognised losses since last annual report                          (105)              (466)



Consolidated Balance Sheet at 31 January 2002


                                                                                       As restated
                                                                           2002               2001
                                                                          £'000              £'000

Fixed Assets

Intangible assets                                                           270                284
Tangible assets                                                           8,746              8,924
                                                                          9,016              9,208


Current Assets

Stocks                                                                    7,034              6,890
Debtors                                                                   2,682              3,700
Cash at bank and in hand                                                     16                 19
                                                                          9,732             10,609


Creditors - amounts falling due within one year
Trade and other creditors                                                 3,359              4,123
Dividend                                                                    183                183
                                                                          3,542              4,306

Net current assets                                                        6,190              6,303

Total assets less current liabilities                                    15,206             15,511


Creditors - amounts falling due after more than
                     one year
Deferred income - government grants                                         167                170

Provisions for liabilities and charges

Deferred taxation                                                           139                180



Total assets less liabilities                                            14,900             15,161





Capital and reserves

Called-up share capital                                                   1,044              1,044

Share premium account                                                     2,721              2,721

Capital redemption reserve                                                   80                 80

Profit and loss account                                                  11,055             11,316

Equity shareholders' funds                                               14,900             15,161




Approved by the Board of Directors
on 23 April 2002


Charles A Brook, Chairman


Consolidated Cash Flow Statement
For the year ended 31 January 2002

                                                                           2002               2001
                                                                          £'000              £'000

Operating activities

Net cash inflow from operating activities                                   235              2,215



Returns on investments and servicing of finance

Interest paid                                                             (142)              (159)


Taxation

Corporation tax received                                                      5                  -

Net cash inflow before capital expenditure and acquisitions                  98              2,056

                                                                            

Capital expenditure

Purchase of tangible fixed assets                                         (814)            (1,042)
Sale of tangible fixed assets                                                90                801
Net cash outflow from capital expenditure                                 (724)              (241)



Acquisitions and disposals

Disposal of Westcountry Clothing                                            269                  -
Purchase of subsidiary undertaking                                            -              (331)
Net overdraft acquired with subsidiary undertaking                            -              (199)
                                                                            269              (530)

Equity dividends paid                                                     (313)              (287)


Financing

Repurchase of ordinary share capital                                          -              (378)



(Decrease)/increase in cash                                               (670)                620





NOTES:


1.   The calculation of profit per ordinary share is based on 10,439,788 
     ordinary shares, being the weighted average number of ordinary shares in 
     issue during the period, and a profit of £52,000.

2.   The Group has changed its accounting policy on deferred tax to comply
     with the requirements of FRS 19 - Deferred Tax.  The change in accounting 
     policy is reflected by way of a prior year adjustment and the prior year 
     comparative figures have been adjusted accordingly.  The effect of the 
     prior year adjustment is to decrease the tax charge for the year ended 31 
     January 2001 by £86,000 and to increase the deferred tax provision at 31 
     January 2001 by £157,000 and at 31 January 2000 by £243,000.

3.   A copy of these results will be sent to shareholders on 24 May 2002.

4.   Copies of the Report & Accounts will be available from the Company
     Secretary, Moorbrook Mills, New Mill, Holmfirth, HD9 1JZ after 24 May 2002.

5.   The Company's Annual General Meeting will be held at 11.30am on 28 June
     2002 at the Three Acres Hotel, Roydhouse, Shelley, Huddersfield, HD8 8LR.



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