RNS Number:1888J
Widney PLC
05 December 2007
Widney plc
Preliminary results for the year ended 30 September 2007
Widney plc is the holding company for Widney UK and Widney Pressings.
Widney UK designs and manufactures window systems for specialist vehicles and
telescopic slides. Widney Pressings produces pressed metal assemblies for the
automotive original equipment and after-market sectors.
* Operating profit* #940,000 (2006: #818,000)
* Operating margin 2.9% (2006: 1.6%)
* Overall debt reduced to #2,332,000 (2006: #10,244,000)
* Gearing reduced to 68.3% (2006: 187.3%)
* Dividends for the year of 1.0p (2006: 0.5p)
* Widney Cabs administration resulted in rapid sale of assets and
receipt of sale proceeds
* Exit from automotive press tool business enabled re-investment of
assets in more productive areas
*on continuing operations before non-recurring operating items
Joe Grimmond, Chairman, said:
"With the group substantially de-geared and focused once more on operations and
growth, I am confident that we will begin to rebuild over the coming months"
5 December 2007
Enquiries:
Widney plc
Joe Grimmond, Chairman 020 7457 2020 (today)
Graham Errington, Chief Executive 0121 327 5500 (thereafter)
College Hill
Richard Pearson 020 7457 2020
Chairman's statement
Results
Group turnover on continuing operations was #32,838,000 (2006: #64,165,000).
Operating profit on continuing operations before non-recurring operating items
was #940,000 (2006: #818,000).
The loss before taxation was #1,831,000 (2006: #149,000), after the losses
related to Widney Cabs, redundancy and re-organisation costs and profit on sale
of fixed assets including the release of negative goodwill.
Basic loss per share was 7.56p (2006: 0.35p).
Gearing
As a consequence of the decision to place the loss making Widney Cabs into
administration and the re-allocation of assets employed in Belcot Tool & Die we
were able to sell assets, thus reducing overall debt to #2,332,000 (2006:
#10,244,000) and reduce gearing to 68.3% (2006: 187.3%).
This much improved liquidity means that we should avoid the credit pressures
being generally experienced.
Dividend
The improved liquidity and current performance allows the Board to recommend the
payment of a final dividend of 0.5p per share to be paid on 15 February 2008 to
all shareholders on the register on 18 January 2008. Total dividends per share
for the year amount to 1.0p (2006: 0.5p).
Operations
The past few months have been some of the most difficult I have experienced
dominated by the decision to place Widney Cabs Ltd into administration and the
subsequent drive to liquidate assets to enable us to reduce the debt incurred in
developing this operation. The unexpected decision by a major customer to
resource all of its cab business to competitors in France had a devastating
effect on the Cabs business.
In spite of tremendous efforts by the management team customers followed the
market leader. Business stalled and the high fixed cost base seriously impacted
on the viability of the business. A review of the business in early January
2007 clearly showed that it was in the best interests of all the stakeholders in
the remaining profitable businesses that Widney Cabs should be placed into
administration.
We believed that speed was of the essence and the rapid action and pragmatic
approach resulted in a quick sale of assets and receipt of sale proceeds that
could not have been achieved today, given the current credit climate.
As disclosed earlier this year, we received an unsolicited offer for Widney
Pressings. The offer was accepted but the sale was subsequently called off.
Widney Pressings had another successful year and has proved to be a very good
acquisition.
We accepted the decision, reluctantly, that after 40 years of success in
automotive press tools, the time was right to exit this area of business and
invest the assets in more productive areas. This has now been completed.
Widney UK had another very good year despite the strength of sterling and is
confident in respect of the coming year. Whilst a good deal of effort went into
the restructuring and the sale of assets, operational aspects of ongoing
businesses received continuing attention. Major efforts were made in both
Widney UK and Pressings to cut costs and improve margins. Significant effort is
being put into product development. We shall benefit from these actions in the
current year.
With the group substantially de-geared and focused once more on operations and
growth I am confident that we will begin to rebuild over the coming months.
J Grimmond
Chairman
5 December 2007
Consolidated Profit and Loss Account
for the year ended 30 September 2007
Continuing Discontinued
Operations Operations Total Total
2007 2007 2007 2006
#'000 #'000 #'000 #'000
Turnover 32,838 6,756 39,594 64,165
Cost of sales (24,270) (5,506) (29,776) (49,944)
Gross profit 8,568 1,250 9,818 14,221
Distribution costs (1,018) - (1,018) (2,509)
Administration expenses (9,776) (2,375) (12,151) (11,202)
Operating profit/(loss) before non-recurring operating items 940 (1,006) (66) 1,120
Non-recurring operating items (Note 3) (3,166) (119) (3,285) (610)
Operating (loss)/profit (2,226) (1,125) (3,351) 510
Profit on administration of discontinued operations 2,021 -
Interest payable and similar charges (453) (599)
Other finance costs (48) (60)
Loss on ordinary activities before taxation (1,831) (149)
Taxation (122) 59
Loss for the financial period (1,953) (90)
Basic loss per share (Note 5) (7.56p) (0.35p)
Diluted loss per share (Note 5) (7.56p) (0.35p)
Average number of ordinary shares in issue (000's) (Note 6) 25,827 25,827
Consolidated Statement of Total Recognised Gains and Losses
for the year ended 30 September 2007
2007 2006
#'000 #'000
Loss for the financial period (1,953) (90)
Actuarial gain recognised in the pension scheme 219 108
Deferred tax arising on gains in the pension scheme (62) (32)
Total recognised losses relating to the financial period (1,796) (14)
Consolidated Balance Sheet
as at 30 September 2007
Group Group Company Company
2007 2006 2007 2006
#'000 #'000 #'000 #'000
Fixed assets
Intangible assets
Positive goodwill - 973 - -
Negative goodwill - (2,500) - (2,500)
- (1,527) - (2,500)
Tangible assets 2,195 12,270 263 6,762
Investments - - 7,277 8,596
2,195 10,743 7,540 12,858
Current assets
Land held for resale - 735 - 735
Stock 2,490 5,192 - -
Debtors
Amounts falling due within one year 7,261 12,207 5,536 4,556
9,751 18,134 5,536 5,291
Creditors
Amounts falling due within one year (7,505) (18,252) (1,513) (1,290)
Net current assets/(liabilities) 2,246 (118) 4,023 4,001
Total assets less current liabilities 4,441 10,625 11,563 16,859
Creditors
Amounts falling due after more than one year (671) (4,501) (3,201) (6,460)
Provisions for liabilities and charges - (65) - (53)
Net assets excluding pension liabilities 3,770 6,059 8,362 10,346
Pension liabilities
Total of defined benefit schemes with net liabilities (355) (591) (355) (591)
Net assets including pension liabilities 3,415 5,468 8,007 9,755
Capital and reserves
Called up share capital 258 258 258 258
Share premium account 2,092 2,092 2,092 2,092
Revaluation reserve - 3,889 3,889
Merger reserve 501 501 445 445
Capital reserve - 333 333
Profit and loss account 564 2,617 990 2,738
Shareholders funds 3,415 5,468 8,007 9,755
Consolidated Cash Flow Statement
for the year ended 30 September 2007
2007 2007 2006 2006
#'000 #'000 #'000 #'000
Net cash (outflow)/inflow from operating activities
(Note 6) (1,695) 630
Returns on investment and servicing of finance
Interest paid (390) (551)
Interest element of finance lease rentals paid (49) (48)
Preference dividends paid (14)
Net cash outflow from returns on investment and
servicing of finance (453) (599)
Taxation
UK Corporation Tax (paid) - (517)
Capital expenditure
Purchase of tangible fixed assets (501) (508)
Sale of tangible fixed assets 8,937 1
Net cash inflow/(outflow) from capital expenditure 8,436 (507)
Acquisitions
Purchase of assets - (1,445)
Equity dividends paid (258) (646)
Net cash inflow/(outflow) before financing 6,030 (3,084)
Financing
New loans - 300
Loan repayments (4,282) (675)
Capital element of finance lease rentals (306) (500)
Net cash outflow from financing (4,588) (875)
Increase/(Decrease) in cash in the period (Note 7) 1,442 (3,959)
Notes to the Financial Statements
1. The financial information set out above does not constitute the company's
statutory accounts for the years ended 30 September 2006 or 2007. The financial
information for the year ended 30 September 2006 is derived from the statutory
accounts for 2006 which have been delivered to the registrar of companies. The
auditors have reported on the 2006 accounts; their report was unqualified and
did not contain a statement under section 237 (2) or (3) of the Companies Act
1985. The statutory accounts for 2007 will be finalised n the basis of the
financial information presented by the directors in this preliminary
announcement and will e delivered to the registrar of companies following the
company's annual general meeting.
On 22 January 2007 Widney Cabs Limited was placed into Administration. This
preliminary announcement resents the consolidated results for Widney plc
including Widney Cabs Limited up to the point the Administrators were appointed.
As the directors of the company have had limited access to the accounting
records of Widney Cabs Limited since the date it was placed into Administration,
in preparing this preliminary announcement they have included amounts extracted
from the Widney Cabs Limited management accounts for the period to 31 December
2006, the period, and closest to the point at which Widney Cabs Limited was put
into Administration (namely 22 January 2007). Its net book liabilities have
been eliminated from the consolidation. With this exception, the consolidated
financial information is based on financial statements which are coterminous
with those of the parent company.
Because of the possible effect of the limitation in evidence available to the
auditors, they will be unable to form an opinion as to whether the loss of the
discontinued operations and the profit on administration of discontinued
operations are fairly stated in the consolidated profit and loss account for the
year ended 30 September 2007, or that the consolidated statement of cash flows
presents fairly the cash flows relating to the discontinued operations.
2. The Group's activities solely comprise Engineering and therefore no analysis
of activity by business segment is provided.
3. The non-recurring operating items are made up of the following:
Continuing Discontinued
Operations Operation Total Total
2007 2007 2007 2006
#'000 #'000 #'000 #'000
Redundancy and reorganisation (932) (119) (1,051) (816)
Bad debts and other costs relating to Widney Cabs (3,515) - (3,515) -
Profit on sale of fixed assets and release of negative 2,324 - 2,324 259
goodwill
Write off positive goodwill (973) - (973) (53)
Legal fees re sale of Widney Pressings (70) - (70) -
(3,166) (119) (3,285) (610)
4. The effect of the implementation of FRS 25 has been to decrease share
capital by #200,000 to #258,000 in 2006 and 2007. The preference share capital
is now included within 'Creditors due after one year'. In addition to this
#14,000 of preference dividends paid in the year have been reclassified as
interest payable.
5. The earnings per share calculation follows:
2007 2006
#'000 #'000
Loss for the period (1,953) (90)
Average number of shares in issue ('000) 25,827 25,827
Basic loss per share (7.56p) (0.35p)
Diluted loss per share (7.56p) (0.35p)
6. Reconciliation of operating profit to net cash flow from operating
activities.
2007 2006
#'000 #'000
Operating (loss)/profit (3,351) 510
Depreciation 899 1,469
Amortisation/impairment of goodwill 973 53
Release of negative goodwill (2,500) (259)
Gain on disposal of fixed assets (513) (1)
Decrease/(Increase)in stocks 209 (64)
Decrease/(Increase) in debtors 2,230 (4,768)
Increase in creditors 358 3,690
Net cash (outflow)/inflow from operating activities (1,695) 630
7. Reconciliation of net cash flow to movement in net debt.
2007 2006
#'000 #'000
Increase/(Decrease) in cash in the period 1,442 (3,959)
Cash outflow from decrease in debt finance 4,282 375
Cash outflow from finance leases 306 500
Change in net debt resulting from cash flow 6,030 (3,084)
Non cash items 1,882 (705)
Movement in net debt for the period 7,912 (3,789)
Opening net debt (10,244) (6,455)
Closing net debt (2,332) (10,244)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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