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Yorklyde PLC (YKLD)

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Wednesday 08 September, 1999

Yorklyde PLC

Interim Results

YORKLYDE PLC
8 September 1999

 
 
Interim results for the six months ended 31st July 1999
 
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 interim results.
 
Key features:
 
* Results  hit by impact of continued worldwide weakness  in
  retail demand for luxury cashmere products
 
* Turnover  decreased  by  27% to £8.0m (1998: £11.0m); pre-
  tax loss of £491.000 (1998: pre-tax profit of £308,000)
 
* Earnings  per  share  declined from 2.1p to a loss of 3.6p
  leading  to a reduced interim dividend of 1.0p  per  share
  (1998: 1.5p)
 
* Extensive  further  cost  cutting and stock reductions, to
  bring output in line with sales activity
 
Commenting on the results, Chairman Charles Brook said:
 
'The second half is not expected to improve when compared to
the first half of this year or the performance in the second
half of last year, despite some modest signs that there is a
very slow return to confidence in the High Street.
 
The  Group  is continuing to manage the business to  reflect
current  trading  conditions, thus  placing  Yorklyde  in  a
stronger position for the future.
 
At  the  same  time  the Directors are  considering  various
options for the Group's reorganisation and development which
we  believe  should add value to the business  and  for  its
shareholders in the future.'
 
For further information, please contact:
 
Yorklyde plc                                   01484 683 611
 
Charles Brook, Chairman
 
Ludgate Communications                         0171 253 2252
 
Reg Hoare
 
                      Chairman's Statement
                                
Introduction
 
The  continuing  downturn in world retail markets  has  severely
impacted on the Group's first half figures with turnover falling
by  27% to £8.0m (1998: £11.0m), resulting in a pre tax loss  of
£491,000  (1998: profit of £308,000).  Losses per share totalled
3.6p  (1998:  earnings per share of 2.1p).  The  Directors  have
approved  the  payment  of an interim dividend  of  1.0p  (1998:
1.5p),   which  is  payable  on  1st  December  1999  to   those
shareholders  on  the Register at the close of business  on  5th
November  1999.   The further reduction in the interim  dividend
reflects  the  Group's  trading  performance  as  well  as   the
reduction in the final dividend announced in April 1999,  as  it
seeks  to maintain an appropriate relationship between the final
and interim dividend.
 
Results
 
As  reported  in  the  1999  Annual  Report  and  Accounts,  the
indications at the time pointed to another difficult year in the
textile industry and so far this has proven to be the case.  All
divisions  are suffering from the downturn in turnover  referred
to  above,  and  as a result we are continuing  to  lower  stock
levels.  Cost  reductions were made earlier  in  the  year,  and
continued   tight  control  is  being  maintained   on   capital
expenditure  which is being kept at about the  annual  level  of
depreciation.   Indeed  the major part  of  the  current  year's
capital expenditure programme, which was heavily skewed  to  the
first half, has now been completed.
 
The reduction in operating profits of some £854,000 compared  to
the  same  period last year has inevitably resulted  in  a  cash
outflow  being  incurred  during the first  half.   Stocks  have
fallen  by  almost £2.5m when compared to the same  period  last
year,  however, helping to conserve the Group's cash  resources.
Net  debt  has fallen by £700,000 to £2.6m compared to the  same
period last year, giving gearing of 14% at the half year end.
 
Outlook
 
The  second half is not expected to improve when compared to the
first half of this year or the performance in the second half of
last  year, despite some modest signs that there is a very  slow
return to confidence in the High Street.  Although some parts of
the  business have also recently experienced a better  level  of
demand  for  their  products, it will not  benefit  this  year's
results.
 
Notwithstanding  these current trading difficulties,  there  has
been  no  loss  of customer base and the balance  sheet  remains
strong  with  a continuing reduction in stocks resulting  in  an
improving  cash position relative to last year. This  is  strong
evidence that the Group is continuing to manage the business  to
reflect current trading conditions, thus placing Yorklyde  in  a
stronger position for the future.
 
At  the  same time the Directors are considering various options
for  the Group's reorganisation and development which we believe
should add value to the business and for its shareholders in the
future.
 
Charles Brook
Chairman
 
 
              Consolidated Profit and Loss Account
             for the six months ended 31st July 1999
                           (unaudited)
                                
                             Six months    Six months           Year 
                                  ended         ended          ended
                              31st July     31st July   31st January 
                                   1999          1998           1999
                                  £'000         £'000          £'000
______________________________________________________________________
 
Turnover                          8,001        11,003         18,979
 
Operating costs                   8,433        10,581         20,088
______________________________________________________________________
 
Group operating profit             (432)          422         (1,109)
 
Interest receivable                   3             -              -
 
Interest payable                    (62)         (114)          (183)
______________________________________________________________________
 
Profit before taxation             (491)          308         (1,292)
 
Taxation                            (86)           77           (619)
______________________________________________________________________
 
Profit attributable to members     (405)          231           (673)
 
Dividends                           112           169            281
______________________________________________________________________
 
Retained profit                    (517)           62           (954)
______________________________________________________________________
 
Earnings per ordinary share        (3.6)p         2.1p          (6.0)p
______________________________________________________________________
 
Dividend per share (net)            1.0p          1.5p            2.5p
______________________________________________________________________
 
                                
         Consolidated Balance Sheet as at 31st July 1999
                           (unaudited)
                                                                
                              31st July     31st July   31st January 
                                   1999          1998           1999
                                  £'000         £'000          £'000
______________________________________________________________________
 
Fixed assets
 
Intangible assets                   128             -            131
Tangible assets                  10,647        10,589         10,711
 
                                 10,775        10,589         10,842
______________________________________________________________________
 
Current assets
 
Stocks                            8,451        10,938          8,901
Debtors                           3,980         4,737          2,886
Cash at bank and in hand             27            25             20
 
                                 12,458        15,700         11,807
______________________________________________________________________
 
Creditors - amounts falling
 due within one year
 
Trade and other creditors         4,589         5,570          3,417
Dividend                            112           169            112
 
                                  4,701         5,739          3,529
______________________________________________________________________
 
Net current assets                7,757         9,961          8,278
______________________________________________________________________
 
Total assets less current
 liabilities                     18,532        20,550         19,120
 
Creditors - amounts falling
 due after more than one year
 
Deferred income -
 government grants                  177           165            162
 
Provision for liabilities
 and charges
 
Deferred taxation                   311           808            397
______________________________________________________________________
 
Total assets less liabilities    18,044        19,577         18,561
______________________________________________________________________
 
Capital and reserves
 
Called-up share capital           1,124         1,124          1,124
Share premium account             2,721         2,721          2,721
Profit and loss account          14,199        15,732         14,716
______________________________________________________________________
 
Equity shareholders' funds       18,044        19,577         18,561
 
 
                     Consolidated Cash Flow
             for the six months ended 31st July 1999
                           (unaudited)
                                
                             Six months    Six months           Year 
                                  ended         ended          ended
                              31st July     31st July   31st January 
                                   1999          1998           1999
                                  £'000         £'000          £'000
______________________________________________________________________
 
Operating activities
 
Net cash (outflow)/inflow
 from operating activities         (835)         (115)         2,846
______________________________________________________________________
 
Returns on investments and
 servicing of finance
 
Interest paid                       (69)         (114)          (192)
______________________________________________________________________
 
Taxation
 
Corporation tax received/(paid)     191             2           (153)
______________________________________________________________________
 
Net cash inflow before capital
 and acquisitions                  (713)         (227)         2,501
______________________________________________________________________
 
Capital expenditure
 
Purchase of tangible fixed
 assets                             (45)         (352)          (988)
Grants received                      17             -              -
Sale of tangible fixed assets        36            35            120
 
Net cash outflow from
 capital expenditure               (392)         (317)          (868)
______________________________________________________________________
 
Acquisitions
 
Purchase of subsidiary
 undertaking                          -             -           (131)
______________________________________________________________________
 
Equity dividends paid              (112)         (264)          (433)
______________________________________________________________________
 
Decrease in cash                 (1,217)         (808)         1,069
______________________________________________________________________
 
 
Notes:
 
1.  The  interim  financial  information has been prepared on the
    basis  of the accounting policies set out in the Group's 1999
    statutory accounts.
 
2.  The  taxation  charge  is   calculated   by   applying    the
    directors'  best estimate of the annual effective tax rate to
    the loss for the period.
 
3.  Other  than the results for the year to 31st January  1999
    the  financial information included in the interim  report is
    unaudited.
 
4.  The  figures  for  the year ended 31st January 1999 are taken
    from accounts filed with the Registrar of Companies.
 
5.  The Auditors' Report on the 1999 accounts was unqualified.
 
6.  Total   dividend  for  the financial year ended 31st  January
    1999 was 2.5p per share.
 
7.  The calculation of Earnings per Ordinary Share  is  based  on
    11,240,000 ordinary shares, being the weighted average number
    of ordinary  shares in issue during the period, and the  loss
    of £405,000.
 
8.  The group continues to invest in  information  technology  to
    meet the needs of its  businesses  and  to  ensure  that  the
    Group's systems can cope with the changeover to the year 2000.
    Projects are substantially complete  to achieve the necessary
    transition both internally and with suppliers.
 
9.  Much of the cost of implementing the action  plans  is  being
    subsumed into recurring activities of the department involved,
    and it is not  possible  to  identify  separately  the  costs
    involved in implementing the year 2000 project.
 
10. A copy of  these results will be sent to  shareholders on 8th
    October 1999.
 
11. Copies  of  the  Interim  Report will be available  from  the
    Company  Secretary,  Moorbrook Mills, New Mill, Huddersfield,
    HD7 7JZ after 8th October 1999.
 

                                                                                                                                

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