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Yorklyde PLC (YKLD)

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Monday 23 April, 2001

Yorklyde PLC

Preliminary Results

Yorklyde PLC
23 April 2001




                                  YORKLYDE PLC

Monday 23rd April 2001



                                 Yorklyde plc

           Preliminary results for the year ended 31st January 2001



                         'A return to profitability'



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 and exceptional items of £103,000 (2000: loss of £
         1,500,000)

*        Profits before tax and exceptional items of the continuing businesses
         of £555,000

*        Earnings per share of the continuing businesses before exceptional
         items 5.1p

*        Turnover increased 35% to £21.9 million (2000: £16.2 million)

*        Total dividend increased by 20% to 3.0p (2000: 2.5p)

*        Net assets per ordinary share unchanged at 147p (2000: 147p) despite
         exceptional items totalling £729,000

*        Improvements have resulted from a return to colour and the British
         Look, together with the successful development of new products and new 
         markets

*        The proposed sale of the loss-making clothing manufacturing division,
         Westcountry Clothing, will enable the Group to concentrate solely on   
         its core activities

*        Strategic review concluded it would not be appropriate to change the
         Group's status as a stock market quoted company at the present time



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



'The restructuring of the Group has almost been completed. It has enabled us
to take full advantage of the recent improvement in business, with all of our
continuing businesses experiencing improved order books resulting in high
levels of activity, which we anticipate will benefit the Group's performance
in the current year.



'With the current upturn in activity and fashion reverting to the products for
which the Group has a high reputation in quality, design and delivery, we are
more optimistic about Yorklyde's future prospects than for many years.'



For further information, please contact:



Yorklyde plc                                                 01484 683 611
Charles Brook, Chairman



Golin/Harris Ludgate                                         020 7324 8888
Reg Hoare/Katie Jackson






                             CHAIRMAN'S STATEMENT


Introduction



It is very gratifying to report a marked improvement in sentiment and activity
levels in our markets and that the Group has returned to profitability during
the past year. The principal features contributing to the greatly improved
performance are as follows:



Highlights



*        Profits before tax and exceptional items of £103,000 (2000: loss of £
         1,500,000)

*        Profits before tax and exceptional items of the continuing businesses
         of £555,000

*        Earnings per share of the continuing businesses before exceptional
         items 5.1p

*        Group turnover increased 35% to £21.9 million from £16.2 million,
         resulting from a return to colour and the British Look, together with  
         the successful development of new products and new markets throughout  
         the continuing divisions based in Yorkshire and Scotland.

*        The proposed sale of the loss-making clothing manufacturing division,
         Westcountry Clothing, to a third party will enable the Group to        
         concentrate solely on its core activities of cloth and accessories     
         manufacturing.  The sale has resulted in an exceptional write down of  
         £600,000 on certain of Westcountry's assets.  A further exceptional    
         item of £129,000 arose as a result of redundancies following the       
         acquisition of Whiteley & Green during the year.

*        A marked improvement of £600,000 in the cash position reduced the
         Group's overdraft to £1.1 million from £1.7 million during the year.

*        The Group enjoys a strong asset base with net assets per ordinary
         share almost unchanged at 146.7p (2000: 147.2p).

*        To reflect the Group's improved results and the confidence in its
         future prospects the Directors are pleased to propose an increased     
         final dividend of 1.75p per share (2000: 1.50p) giving a total of 3.0p 
         (2000: 2.5p) payable on 2 July 2001 to those shareholders on the       
         register on 1 June 2001.


Divisional review



Despite the various problems facing the international retail industry there
have been changes which have materially benefited the fortunes of the Group
enabling us to take a much more positive view of the future. The major change
has been a return to colour and design together with renewed fashion demand
for the 'British Look'. This trend, which became evident in the latter part of
last year, has had an immediate impact on all of our divisions, enabling them
to take full advantage of this improvement in the trading environment.
Indeed, there is now evidence of capacity constraints and overtime working is
taking place throughout the Group.



The Robert Noble business in Peebles has had a successful year and this
improvement is continuing into the new season. As reported in our interim
statement, we have completed the transfer of Whiteley & Green to Scotland and
this business has now settled down and is performing well. Following the
appointment of a new sales executive and designer for this range, we are
optimistic about its future.  New ranges are already being prepared for next
season. Replin Fabrics, also based in Peebles, has maintained a high level of
activity with its specialised ranges for various transport industries and we
are continuing with new developments and products in order to maintain our
position in the market place and to increase our market share.



Alex Begg, based in Ayr, has continued to increase its profitability and to
develop its customer base. New fabrics and shades have been included in the
ranges, many of which are now being purchased for use as 'homeware' textiles
as well as for apparel.  This is a growing market and there appears to be
great potential for the future. In particular the high quality Escorial
product range has proved increasingly popular and has introduced the company
to a new range of high fashion customers.



The William Edleston business has been successfully integrated into the
Moorhouse & Brook site in Huddersfield.  New ranges for both businesses have
been prepared and offered in the market place and there are early indications
that these have been well received.  In addition there will be further range
developments for the new season later in the year.  Moorhouse & Brook, which
was loss making last year has also seen a major improvement in business and is
trading profitably.



The finishing processes and the financial administration of Arthur Bell,
Langholm, have been transferred to Peebles.  This means that the Langholm site
has become primarily a manufacturing unit producing fabric, not only for the
Arthur Bell range of products, but also for other Group members.



The biggest disappointment during the year was the performance of Westcountry
Clothing, where, despite management changes in February 2000, turnover and
profitability failed to recover to an acceptable level. After a strategic
review of the options for this business, a decision to sell Westcountry was
announced in February. Heads of agreement for the sale to a third party have
been signed and completion is expected within the next few weeks.



The last few years have been very challenging as indicated earlier and without
the support and loyalty of our dedicated workforce our trading position would
have been even more difficult.  It is therefore very pleasing that they are
some of the major beneficiaries of the greatly improved trading position with
overtime working supported by a strong order book and I would like to thank
them for all their support.



Financial review



A marked improvement of £600,000 in the cash position reduced the Group's
overdraft to £1.1 million from £1.7 million during the year, reflecting the
improved trading conditions.  This improvement is after allowing for the sale
of two Group properties at Langholm and Sowerby Bridge raising £750,000, set
against the purchase of Whiteley & Green for £300,000 and the repurchase of
7.1% of the Group's ordinary share capital at a total cost of £378,000.  As a
result gearing at the year end stood at 7.2%.



Future strategy



Following the difficult trading conditions we have faced over the last 3 years
the Board has continually reviewed the strategy of the Group in order to
ensure its long term success and has examined ways in which to deliver
shareholder value.



In May we successfully completed a share buy back of 800,000 shares at 47p,
representing 7.1% of the Company's issued share capital, which enhanced both
earnings and net assets per share. At the AGM in June permission was granted
to buy in up to a further 10% should the opportunity arise and it is intended
to again seek renewal of this authority at this year's AGM.



At the same time, in conjunction with our professional advisers, we have
reviewed the Company's status as a Stock Market quoted company.  The Board
concluded that it would not be appropriate to change its status at a time when
its business is recovering strongly and it is striving to deliver shareholder
value through vigorous management actions.  However, the Board will continue
to monitor its status in the best interests of all shareholders.



In the light of this review, we are continuing to look at suitable investment
opportunities in 'top of the range' niche market products and believe that our
balance sheet would currently support any suitable investments.



Prospects



The restructuring of the Group referred to in last year's Chairman's Statement
has almost been completed. It has enabled us to take full advantage of the
recent improvement in business, with all of our continuing businesses
experiencing strong order books resulting in high levels of activity, which we
anticipate will benefit the Group's performance in the current year.



It is always difficult to accurately predict the future of the textile
industry, but with the current upturn in activity and fashion reverting to the
products for which the Group has a high reputation in quality, design and
delivery, we are more optimistic about Yorklyde's future prospects than for
many years.





Charles Brook

Chairman

23 April 2001





Consolidated Profit & Loss Account

for the year ended 31st January, 2001

                                         Continuing Operations
                                   On-going Acquisitions Westcountry  2001  2000
                                                           Clothing  Total
                                     £'000        £'000       £'000 £'000 £'000

Turnover                            19,729        1,044      1,144 21,917 16,236


Operating costs before exceptional  19,094          965      1,596 21,655 17,636
items


Group operating profit/(loss)
before exceptional items               635           79      (452)   262 (1,400)
                                       

Exceptional items                        -          129        600   729     555


Group operating profit/(loss)          635         (50)    (1,052) (467) (1,955)

Interest                                                             159     100


Loss before taxation                                               (626) (2,055)


Taxation                                                            (74)   (324)


Loss for the financial year                                        (552) (1,731)


Dividends                                                            301     281


Loss for the financial year                                        (853) (2,012)



Loss per ordinary share

-  basic and diluted                                              (5.2)p (15.4)p









There were no recognised gains or losses other than the loss of the group of £
552, 000 in the year ended 31 January 2001 (2000 - £1,731,000).





Consolidated Balance Sheet
at 31st January, 2001


                                                                 2001      2000
                                                                £'000     £'000

Fixed assets
Intangible assets                                                 284       125
Tangible assets                                                 8,924     9,966
                                                                9,208    10,091


Current assets
Stocks                                                          6,890     7,627
Debtors                                                         3,700     3,215
Cash at bank and in hand                                           19        21
                                                               10,609    10,863


Creditors - amounts falling due within one year
Trade and other creditors                                       4,123     3,948
Dividend                                                          183       169
                                                                4,306     4,117


Net current assets                                              6,303     6,746


Total assets less current liabilities                          15,511    16,837


Creditors - amounts falling due after more than one year

Deferred income - government grants                               170       191


Provisions for liabilities and charges

Deferred taxation                                                  23        97


Total assets less liabilities                                  15,318    16,549


Capital and reserves
Called-up share capital                                         1,044     1,124
Share premium account                                           2,721     2,721
Capital redemption reserve                                         80         -
Profit and loss account                                        11,473    12,704
Equity shareholder's funds                                     15,318    16,549











Consolidated Cash Flow Statement

for the year ended 31st January


                                                                   2001    2000

                                                                  £'000   £'000


Operating activities

Net cash inflow from operating activities                         2,215     349


Returns on investments and servicing of finance
Interest received                                                     -       3
Interest paid                                                     (159)   (105)
Interest                                                          (159)   (102)


Taxation
Corporation tax received (paid)                                       -     379


Net cash inflow before capital expenditure and acquisitions       2,056     626


Capital expenditure
Purchase of tangible fixed assets                               (1,042)   (822)
Sale of tangible fixed assets                                       801      48
Government grants received                                                   35
Net cash outflow from capital expenditure                         (241)   (739)


Acquisitions
Purchase of subsidiary undertaking                                (331)       -
Net overdraft acquired with subsidiary undertaking                (199)       -
                                                                  (530)       -


Equity dividends paid                                             (287)   (224)


Financing
Repurchase of ordinary share capital                              (378)       -


Increase/(Decrease) in cash                                         620   (337)







Notes:



1.      The calculation of loss per ordinary share is based on 10,588,486
        ordinary shares, being the weighted average number of ordinary shares in
        issue during the period, and a loss of £552,000.



2.      A copy of these results will be sent to shareholders on 25 May 2001.



3.      Copies of the Report & Accounts will be available from the Company
        Secretary, Moorbrook Mills, New Mill, Holmfirth, HD9 1JZ after 25 May   
        2001.



4.     The Company's Annual General Meeting will be held at 11.30am on 27 June
       2001 at the Three Acres Hotel, Roydhouse, Shelley, Huddersfield, HD8 8LR.



                                                                                
                                                               

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