RNS Number:3936M
Victoria PLC
17 June 2003
Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Tuesday, 17 June 2003
Embargoed: 7.00am
Victoria P.L.C.
Manufacturers of carpet and carpet yarns through operations
in the UK, Australia, Ireland and Canada
Preliminary Results for the year ended 29 March 2003
Strong performance across the Group produces record profits at Victoria
*Significant sales growth, with Group turnover up 27% to #44.4 million
*All companies within the Group increased profitability with profit before
tax up 92% to #3.01 million
*EPS up by 86% to 30.10 pence
*Dividend up 29% from 7.0 pence to 9.0 pence
*Significant investment across the Group including #2.2 million
state-of-the art carpet backing line at Kidderminster - enabling production
of up to 5 metre wide carpeting to commence later this month
*Acquisitions of Munster Carpets, Ireland and Pacific Textiles, Australia
successfully integrated
*Elte alliance gives further development opportunities for the Canadian
business
"A consistent programme of investment in the latest technology, strategic market
focus, precisely targeted product ranges and enhanced service have all combined
to produce an outstanding result again this year despite continuingly difficult
market conditions.
"Much of the growth last year, which was both organic and partly derived from
the acquisitions... was achieved in the second half. We look forward to the full
year benefit this year.
"We believe that the gains the Group has made in the last year are solidly based
and we look forward to building further on these in the new financial year and
beyond."
Alan Bullock, Group Managing Director
FULL STATEMENT ATTACHED
Enquiries:
Alan Bullock, Group Managing Director
Mark Lee, Group Finance Director Fiona Tooley/Katie Dale
Victoria P.L.C. Citigate Dewe Rogerson
Today: 020 7282 8000 up to 1pm Today: 020 7282 8000
Onwards: Mobile: 07785 325701 (Alan Bullock) Thereafter: 0121 455 8370
Thereafter: 01562 749640 Mobile: 07785 703523
www.victoria.plc.uk
-2-
Victoria P.L.C.
Preliminary Results for the year ended 29 March 2003
STATEMENT BY THE CHAIRMAN, R M GILBERT
Overview
The past twelve months have been a particularly busy and interesting time for
the Group with the acquisitions of Munster Carpets in Ireland, Pacific Textiles
in Australia and the changes made to our distribution business at Colin Campbell
& Sons in Canada. At the same time, our focussed approach has enabled us to
exploit and take full advantage of opportunities which have underpinned our
performance and increased our sales.
Over the last five years, we have constantly developed excellent products,
introduced exciting new ranges, and enhanced our levels of service. These
activities have been supported by our substantial investments in technology and
state of the art manufacturing plant, which will ensure we maintain our leading
market position in our sector. This careful positioning, coupled with our
financial strength has also allowed us to continue to grow our core business
organically and to deliver an exceptional result in what has been a turbulent
and testing market.
Results
I am therefore pleased to report that we have increased turnover by 27% to #44.4
million, pre-tax profit by 92% to #3.01 million, and earnings per share by 86%
to 30.10 pence.
Dividend
We continue with our progressive dividend policy, aiming to keep improving the
dividend broadly in line with growth in the earnings whilst maintaining a
dividend cover of approximately three times.
The significant increase in earnings this year enables the Board to recommend an
increase of 2.0p in the dividend to 9.0 pence per share, reflecting a 29%
increase. Subject to approval at the AGM, this will be paid on 28 July 2003, to
shareholders on the register as at 4 July 2003.
Acquisitions
In October 2002, we completed the acquisition of Munster Carpets, an Irish based
business manufacturing and selling top quality Wilton carpeting to the contract
sector, with a specialisation in office and commercial applications. This
business has been successfully integrated into the Group and we are now starting
to see the benefits that we envisaged at the time of its acquisition including
the cross marketing opportunities of Victoria and Munster products and clients.
In the same month, we completed the acquisition of Pacific Textiles, an
independent yarn spinner in Australia. Management of this business has been
integrated with our existing spinning mill in Castlemaine and the business is
delivering the results we anticipated. Having control of this extra source of
yarn supply has considerably strengthened the Australian business and will
support its future growth.
In December 2002, we acquired the remaining 50% shareholding in Colin Campbell &
Sons that we did not already own, so taking full control of the company for a
short period. On 1 February 2003, we formed a new and exciting strategic
alliance with Elte Carpets based in Ontario, Canada, selling them 50% of the
shareholding in the Canadian business. Elte is a long established, well
respected retailer in Toronto specialising in high-end carpets, rugs, furniture
and home hardware. This new partnership should allow the business to be more
aggressively grown and expanded across Canada.
continued...
-3-
People
On behalf of the Board, I welcome the new employees who joined the Group with
the acquisitions of Munster Carpets and Pacific Textiles.
This year's excellent result would not have been possible without the goodwill
of all our people and credit is due to everyone working for the Group for the
contribution they have made.
I would also like to acknowledge the contribution made by John Campbell to Colin
Campbell & Sons over the years of our business relationship with him and wish
him well in his retirement.
Brian Priest, who is Managing Director of Westwood Yarns and has been a Main
Board Director since 1993, will also be retiring at the time of this year's AGM
on 24 July 2003. I would especially like to thank Brian for his considerable
contribution over the last 14 years to the Group's spinning operations and for
his work on the Group's Board. From all at Victoria, we wish him and his wife a
long and happy retirement.
Corporate Governance
We have continued to aim for compliance with 'Best Practice' in the burgeoning
field of corporate governance, wherever this has not conflicted with the
effective management of the Group and the delivery of the best possible returns
for shareholders.
Over the last few years, we have adopted all of the recommendations of the
Cadbury, Greenbury, Hampel and Turnbull reports and are fully compliant with the
Combined Code on Corporate Governance.
This year, we have been presented with two new reports by Higgs and Smith which
are intended to raise corporate governance to a new level. We await the outcome
of the on-going debate and consultation over these reports and the resultant
changes to the Listing Rules.
There are many points in these reports with which we already comply, or could
adopt quite readily. However, there are several points in the Higgs report
which we believe would have a significant adverse effect on the composition of
our Board, and our current view is that to adopt these changes would detract
from the effectiveness of the Board and have little consequential benefit for
the shareholders in a Company of our size.
Prospects
Much of the growth last year, which was both organic and partly derived from the
acquisitions that I referred to earlier, was achieved in the second half. We
look forward to the full year benefit this year.
In addition, the new #2.2 million backing line at our Kidderminster operation
which is now being brought into commission, allows us to introduce 5 metre wide
carpets and we see this as an important element in continuing the development of
the UK business. Investments made in Australia, particularly in the extra yarn
supply available through the newly acquired Pacific Textiles, should allow us to
continue building our sales in this region.
The progress of the business will of course be influenced by the economic
environments in which we operate and our assessment of these prospects is based
on a cautious to neutral view of economic conditions over the next 12 months.
We believe that the gains the Group has made in the last year are solidly based
and we look forward to building further on these in the new financial year and
beyond.
-4-
Victoria P.L.C.
Preliminary Results for the year ended 29 March 2003
OPERATING REVIEW BY THE GROUP MANAGING DIRECTOR, ALAN BULLOCK
A consistent programme of investment in the latest technology, strategic market
focus, precisely targeted product ranges and enhanced service have all combined
to produce an outstanding result again this year despite continuingly difficult
market conditions.
At the same time, the two acquisitions we made in October 2002, have been
successfully integrated into the Group and are already fully meeting our
expectations.
Group sales increased by 27% from #35.0 million to #44.4 million, whilst
Operating Profits improved by 80% from #1.86 million to #3.34 million.
All companies within the Group were profitable with net profit before tax up by
92% from #1.56 million to #3.01 million.
UNITED KINGDOM
CARPET MANUFACTURING
Yet again this year, market conditions prevailing in the UK carpet market have
been difficult and perhaps this is likely to be the norm for the future?
The plight of some of our competitors has been well documented, but the
investments Victoria has continually made in modern production methods, exciting
new product offerings and consistently high levels of service have enabled us to
fully exploit these weaknesses and to gain market share, whilst growing
profitability and continuing to invest for the future.
Despite these difficult market conditions sales at Victoria Carpets grew overall
by 13.0% from #22.3 million to #25.2 million.
This excellent sales achievement was only tempered by the continued poor
performance in our Export sales, which declined by 14.9% from #4.17 to #3.55
million as our business to the hotel and leisure industry failed to recover from
the global economic downturn and on-going terrorist threat. This lack of
business from the major international hotels has badly impacted on our woven
Axminster department which has endured short-time working.
Turnover growth within the UK however more than off-set the export market
decline, with UK sales growing significantly from #18.13 million to #21.66
million, a 19.5% increase over last year. It is also pleasing to report that
sales to the targeted Independent retail sector increased again this year by
19.30% with sales to this sector now accounting for 61% of total UK sales.
Sales to selected major groups such as the John Lewis Partnership, Allders and
Allied Carpets also enjoyed a healthy 24.47% growth. The success of the
Kidderminster Distribution Centre, which we operate on behalf of the John Lewis
Partnership (JLP) continued during the year enabling John Lewis to obtain
outstanding growth in their own "Jonelle" branded carpets. This growth has also
stimulated a considerable improvement in Victoria's sales to JLP, to whom we
remain a significant supplier.
During the year, Victoria has continued to invest strongly in new ranges and
point of sale display materials placed primarily in Independent retail stores,
with almost 700 metres of new wall display units being placed in the year.
Whilst we have benefited to some degree already from this investment, we believe
that the full benefits of the spend incurred this year will be harvested over
the coming years.
continued...
-5-
Operationally, within the carpet manufacturing plant we have been extremely
active too with two new tufters being installed, one of which is our most
sophisticated yet and which allows us to make loop and cut & loop pile products
which are growing in popularity worldwide.
The single biggest investment we have made at Victoria Carpets in many a year
was undertaken during the year with approximately #2.2 million invested in a new
and revolutionary tufted backing line, together with the building to accommodate
this. The factory building was started in June 2002 and completed on time and
within budget by September 2002, with the backing line build finished in March
of this year. Extensive commissioning and development work has been on going
since the end of March and we are shortly to commence the supply of the first
new ranges of carpet off this new plant.
Our customers are excited about the prospects of a new generation of products
finished with this new style of carpet backing. The availability of carpets in
widths of up to 5 metres is seen by us as being a catalyst to driving our sales
forward over many years to come.
YARN MANUFACTURE
Westwood Yarns has always contributed well to the Group performance and this
year is no exception.
Our yarn spinning division based in Holmfirth, in West Yorkshire has remained
very busy throughout the year producing high quality dry woollen spun carpet
yarns, primarily, but not exclusively for Victoria Carpets. With the growth in
carpet sales from Victoria, around 90% of the yarn produced this year remained
within the Group.
Capacity was increased by around 8% early in 2003 as an additional 2.5-metre
card was brought on-stream. At the same time, to accommodate future growth, a
decision was made to further invest in more yarn spinning, winding and
heat-setting capacity and facilities. This total investment of around
#1 million coupled with the earlier installed card will, with effect from July
this year, increase Westwood's capacity by close to 0.5 million kgs. per annum.
Comment has already been made relating to the forthcoming retirement from the
PLC Board of Brian Priest in July. At the same time, both Brian and his wife
Ann who are the original founders of Westwood Yarns will retire from the
Westwood Board. Brian's talents however, will not be lost to the Group, as he
has agreed to remain available to us on a Consultancy basis.
Brian's role at the helm of Westwood's will be passed into the capable hands of
Mark Reah who will be appointed as Managing Director of Westwood's on Brian's
retirement. Mark has been with Westwood's for seven years and we believe he
will do an excellent job in taking the company forward.
MUNSTER CARPETS
Victoria acquired Munster Carpets in October 2002 and the strong Munster
identity and brand has been retained in both the Irish and UK contract carpet
markets, although production has been relocated to Victoria Carpets
manufacturing facilities in Kidderminster, England.
All of the necessary plant and equipment was moved over a three month period
from Cork to Kidderminster whilst sales were maintained by running looms in both
Cork and Kidderminster on extended shifts. Thanks to the splendid co-operation
of the Munster employees and the adaptability of our Kidderminster workforce,
the transfer went very well, being on-time, within budget, and without the loss
of any business.
I would particularly like to express my sincere thanks to all involved in the
transition, for without their unstinting effort the move could not have been
possible. The Munster Irish sales and marketing team headed by Managing
Director, Sean Kelly, deserve special thanks for the way they have adapted to
life within the Group and have continuously worked tirelessly to expand sales in
the Republic. Sales since acquisition have more than exceeded our expectations
and have benefited the Group performance already.
continued...
-6-
AUSTRALIA
The Australian operation has continued to build throughout the year on the
strong finish it made to the previous year and achieved a really excellent
result for the year ended 29 March 2003.
In a market where carpet volumes were reported to be relatively static, the
company continued to gain market share from the competition by releasing highly
competitive new products and by further improving its already very good levels
of service.
Sales for the twelve months showed an outstanding growth of 43%, rising from
A$32.1 million to A$45.8 million, as the operation continued to strengthen its
strong associations with leading retailers of wool and wool blend carpets
throughout the country.
The Castlemaine Spinning Mill achieved a further 8% growth in the tonnage of
carpet yarn produced during the year whilst maintaining its excellent quality
standards.
In late 2002, the Company acquired the assets of Pacific Textiles Bendigo, the
last remaining independent trade spinner of carpet yarns in Australia. This
strategic move gives us additional access to a further 140 tonnes per month of
woollen spun and semi-worsted spun carpet yarns and, when combined with the
capacity of yarn available from Castlemaine, will allow us to continue to grow
sales from our carpet manufacturing division.
The acquisition of Pacific Textiles was strongly supported by the Australian
Government under their Strategic Investment Programme (SIP) as part of a
regional rationalisation programme in the textile industry. The Bendigo Mill
will continue to supply certain existing export and Australian customers with
speciality yarns. There will be the need for some capital expenditure at the
Bendigo spinning mill in order to bring the plant fully up to the quality
standards we demand.
Again, special thanks should be given to our Australian team who have integrated
the Bendigo Mill into our operation quickly and efficiently. This Mill is
already improving the quality of the yarn it supplies and contributing
positively to our Australian division's performance.
Net profit before tax from the Australian operation was significantly higher for
the year, being up by 152% on the previous year and increasing to A$4.67 million
from A$1.85 million in 2002.
CANADA
On the 19th December 2002, John Campbell, the President of our Canadian
Associate Company, Colin Campbell & Sons retired from the business and Victoria
purchased the 50% shareholding from Mr Campbell that it did not already own.
I would personally like to add my best wishes to John Campbell and his wife
Mary-Lou on their retirement and to thank them not only for their contribution
to the business, but also for their personal friendship.
Subsequently, in February 2003, we sold 50% of our 100% shareholding to create a
new partnership with Elte Carpets, Toronto. We are delighted to have set-up
this joint venture with one of Canada's leading high-end carpeting and home
furniture suppliers and we believe that Elte's expertise in the retailing
quality home furnishing products in Ontario will be of significant benefit to
the Campbell organisation's expansion plans.
Despite poor market conditions in North America during the year, the Campbell
business performed reasonably well with sales growing 12% on an annualised
basis. After taking account of certain reorganisational costs incurred in the
year, Campbells contributed #15,000 to Group profit before tax.
OUTLOOK
In the United Kingdom, whilst in the media there is a fair degree of doom and
gloom surrounding the economy and the housing market, frankly, we have had to
live with tough market conditions in the carpet industry for some years.
Positively, there is evidence that the "stay at home and improve" attitude of
some consumers may benefit us.
continued...
-7-
Although the outlook in the global economy and the effects of the terrorism
threat and the SARS out-break will inevitably continue to affect our Export
business out of the UK, we are very well positioned within the UK to weather any
further down-turns in the economy.
Our very well equipped, cost-effective manufacturing operation with its new
operationally efficient backing plant now coming on stream delivering wider
width carpet, together with our current successful product ranges and new
products planned during the early part of the year, will further strengthen our
market position and underpin another solid performance by the Group this
financial year.
The Munster Carpet contract sales teams in both the UK and Ireland will also be
capable of delivering a full year's contribution to Group profits this year.
The Australian Government is currently reviewing the protection applying to
imports of carpet from 1 January 2005, and it appears likely that the tariff
rate will fall from the present 15% to 10%. We do not feel that this will impact
on the success of our Australian operation, and welcome the Government's early
indications that the SIP programme will be extended past 2005.
In Australia, the property market is anticipated to ease from the extremely
buoyant levels seen in 2002/3, but, with new product introductions planned this
year, we do envisage maintaining our strong position in the Australian market
and look forward to another successful year.
-8-
Victoria P.L.C.
Preliminary Results for the year ended 29 March 2003
FINANCIAL REVIEW BY THE GROUP FINANCE DIRECTOR, MARK LEE
Summary of results
Group turnover increased by 26.8% to #44.4 million (2002: #35.0 million).
Operating profits increased by 80% from #1.86 million to #3.34 million. After
an interest charge of #0.35 million and a contribution of #15,000 from the
associated undertaking, Group pre-tax profits increased 92.4% to #3.01 million
(2002: #1.56 million).
In the UK, including the new Irish business of Munster, turnover grew 16.8% to
#26.85 million (2002: #22.98 million), with pre-tax profits increasing 42.2% to
#1.18 million (2002: #0.83 million).
In Australia, including the contribution from the newly acquired spinning mill
in Bendigo, turnover increased 45.7% to #17.51 million (2002: #12.02 million),
with pre-tax profits increasing 158% to #1.79 million (2002: #0.69 million).
Taxation and earnings
The effective tax charge was 30.5% (2002: 28.2%). Profit after tax of
#2.09 million represents earnings per share of 30.10 pence (2002: 16.16 pence).
Dividend
A dividend of 9.0 pence per share is proposed for payment on 28 July 2003. This
represents an increase of 29% on last year's dividend of 7.0 pence, and, at this
level, the dividend is covered 3.3 times by earnings.
Cash flow, balance sheet and borrowings
Cash inflow of #5.24 million arose from operating profit before depreciation,
amortisation and exchange rate differences on consolidation. Of this, #1.95
million was absorbed into working capital, leaving net cash inflow from
operations of #3.29 million.
Extra working capital was required to support the increase in turnover, and
using a crude measure of working capital as stock plus trade debtors less trade
creditors, the working capital increase of 33% was marginally less than the 38%
increase in second half year turnover.
Interest, tax and dividend payments totalled #1.45 million. Expenditure on
fixed assets of #7.23 million included #2.47 million on the assets of Pacific
Textiles, Bendigo, #0.47 million on the assets of Munster Carpets, and
#2.16 million on the new tufted backing line in Kidderminster.
Net cash outflow of #5.33 million was financed by #1.91 million of long-term
loans and a net #1.73 million of lease finance, with the balance coming from the
Group's overdraft facilities.
Net borrowings at the year end were #8.16 million (2002: #2.79 million),
representing gearing of 36.3% (2002: 13.4%). The interest charge was covered
9.5 times by operating profit.
Net assets were #22.45 million at the year end (2002: #20.79 million),
equivalent to 323 pence per share.
Surplus properties
On 20 December 2002, an option was granted to Whitbread Group PLC relating to
the sale of the Victoria Carpets Sports Ground in Kidderminster. Under the
agreement Whitbread has the right to acquire 2.5 acres of the 6 acre site for a
sum of #700,000. When the option is exercised, Victoria has the right to
include the remainder of the site in the sale, increasing the proceeds to
#1,000,000. The arrangements are set out in more detail in note 11 to the
accounts.
continued...
-9-
The Group continues to look for opportunities to realise 19 acres of land which
it owns near Hartlebury and which is surplus to current requirements.
Treasury
The Group's policy on treasury and financial instruments is set out in note 24
to the accounts. At the year end, 53% of the Group's borrowings were at fixed
rates and 70% were over 1 year in term.
-10-
Victoria P.L.C.
Preliminary Results for the year ended 29 March 2003
GROUP PROFIT & LOSS ACCOUNT
52 weeks 52 weeks
ended ended
29 March 30 March
2003 2002
Note #000 #000
Turnover 1 44,367 35,000
Cost of sales 31,479 24,517
Gross profit 12,888 10,483
Distribution costs 7,193 6,824
Administrative expenses 3,014 2,467
Other operating income 663 665
Operating profit 3,344 1,857
Interest payable and similar charges 352 337
Share of profits of associated undertaking 15 43
Profit on ordinary activities before taxation 1 3,007 1,563
Taxation 917 441
Profit after taxation 2,090 1,122
Dividends paid and proposed 625 486
-------- --------
Retained profit 1,465 636
-------- --------
Earnings per share - basic 30.10p 16.16p
-------- --------
Earnings per share - diluted 30.10p 16.16p
-------- --------
-11-
Victoria P.L.C.
Preliminary Results for the year ended 29 March 2003
CONSOLIDATED BALANCE SHEET
29 March 30 March
2003 2002
#000 #000
Fixed assets
Intangible assets 377 -
Tangible assets 21,551 16,430
Investments 289 287
-------- --------
22,217 16,717
-------- --------
Current assets
Stock 10,723 8,008
Debtors 9,352 6,294
Cash at bank and in hand 257 307
-------- --------
20,332 14,609
-------- --------
Less: Current liabilities
Creditors - amounts falling due within one year 12,732 7,004
-------- --------
Net current assets 7,600 7,605
Total assets less current liabilities 29,817 24,322
Less: Creditors - amounts falling due after more than one 6,331 2,490
year
Provisions for liabilities and charges - deferred 1,034 1,038
taxation ======== ========
Net assets 22,452 20,794
======== ========
Capital and reserves (equity)
Share capital 1,736 1,736
Share premium 829 829
Revaluation reserve 2,077 2,061
Profit and loss account 17,810 16,168
======== ========
Total shareholders' funds 22,452 20,794
======== ========
-12-
Victoria P.L.C.
Preliminary Results for the year ended 29 March 2003
GROUP CASH FLOW STATEMENT
52 weeks ended 52 weeks ended
29 March 2003 30 March 2002
Note #000 #000 #000 #000
Net cash inflow from operating 2 3,246 4,783
activities
Dividends received from
associated
undertaking 8 -
Returns on investment and
servicing of
finance
Interest paid (202) (147)
--------- ---------
Interest element of finance lease
and hire
purchase payments (150) (190)
--------- ---------
(352) (337)
Taxation
UK Corporation Tax paid (280) (397)
Overseas tax paid (334) (209)
--------- ---------
(614) (606)
Capital expenditure and
financial
investment
Payments to acquire tangible fixed (4,433) (1,633)
assets
Receipts from sales of tangible 49 35
fixed assets --------- ---------
(4,384) (1,598)
Acquisitions
------- -------
Payments to acquire the assets of (2,752) -
a trade or
business
------- -------
(4,848) 2,242
Equity dividends paid (486) (451)
------- -------
(5,334) 1,791
Financing
(Decrease) in secured loans - (225)
Increase/(decrease) in long term 1,912 (280)
loans
Capital element of finance lease
and hire
purchase payments (597) (705)
Receipts from financing of 2,323 54
assets --------- ---------
3,638 (1,156)
------- -------
(Decrease)/increase in cash (1,696) 635
======= =======
-13-
Victoria P.L.C.
Preliminary Results for the year ended 29 March 2003
NOTES
1. Analysis of Group turnover and profit
The turnover, contribution to profit and net assets are geographically spread as
follows:
52 weeks ended 52 weeks ended
29 March 2003 30 March 2002
Profit on Profit on
ordinary Net ordinary Net
Turnover activities assets Turnover activities assets
#000 #000 #000 #000 #000 #000
United 25,809 1,060 13,246 22,982 827 13,101
Kingdom
Australia 17,513 1,785 8,582 12,018 693 7,406
Ireland 1,045 118 312 - - -
Canada - 44 312 - 43 287
-------- ------- ------- ------- ------- ------
44,367 3,007 22,452 35,000 1,563 20,794
-------- ------- ------- ------- ------- ------
The Group's turnover and profits were derived from continuing operations during
the current and previous years. During the year, the Group acquired the assets
and business of Munster Carpets, based in Ireland, and the assets of Pacific
Textiles in Australia. Each of these operations was immediately integrated into
the existing operations of the Group, such that it is not practicable to
determine the post-acquisition results.
An indication of the contribution made by Munster Carpets, since the acquisition
of the business and assets on 3 October 2002, is given by the turnover (#1.05
million) and the operating profits (#0.12 million) made by the part of the
business that was taken into the newly formed subsidiary, Munster Carpets
Limited in Ireland. These figures omit Munster products sold by Victoria
Carpets Limited in the UK, and also omit any profit or loss made by Victoria
Carpets Limited in the manufacture of products sold by Munster Carpets Limited
in Ireland.
The assets of Pacific Textiles, Bendigo, Australia which were acquired on 24
October 2002, have been employed principally to provide carpet yarn for the
Group's Australian carpet manufacturing operation. External turnover in the
period was #0.79 million and operating profits were #0.16 million, before
consolidation adjustments to eliminate unrealised profits within the Group.
2. Reconciliation of operating profit to net cash inflow from operating
activities
2003 2002
#000 #000
Operating profit 3,344 1,857
Depreciation and amortisation 1,799 1,519
Loss on sale of fixed assets 11 11
(Increase)/decrease in stocks (2,357) 783
(Increase) in debtors (3,058) (1)
Increase in creditors 3,421 328
Exchange rate difference on consolidation 86 286
Net cash inflow from operating activities 3,246 4,783
======= =======
continued...
-14-
3. Rates of exchange
The following year-end exchange rates have been used:
Australia: A$2.6145 to one pound sterling (2002: A$2.6682)
Canada: C$2.3002 to one pound sterling (2002: C$2.2719)
Euro: Euro1.4581 to one pound sterling
4. The Report & Accounts will be posted to shareholders on 20 June 2003
and further copies will be available from the Company's Registered Office:
Worcester Road, Kidderminster, Worcestershire DY10 1HL.
5. The Annual General Meeting is being held at the Registered Office of
the Company, Worcester Road, Kidderminster on Thursday, 24 July 2003 at 2.30pm.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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