Jourdan PLC - Interim Results
RNS Number:5625Y
Jourdan PLC
17 February 2006
Jourdan plc
Interim Results for the 6 months ended 31 December 2005
CHAIRMAN'S STATEMENT
Turnover in the six months to 31 December 2005 reduced to £11.7m, a fall of 5%
over the comparable period last year. However, profit before tax, amortisation
of goodwill and provisions against investments increased by 40% to £489,000
(2004: £350,000). The profit before tax rose by 37% to £338,000 (2004:
£247,000) resulting in earnings per share of 5.4p compared with 2.7p per share
reported for the six months to 31 December 2004 (both adjusted for effect of
capital reorganisation).
Your Board has decided not to declare an interim dividend (2004: nil).
Operating Companies
Suncrest Surrounds, the fireplace, suites, mantels and electric fires business,
made a small profit despite lower sales, primarily as a result of increased
volumes following the integration of manufacturing Corby trouser presses.
John Corby, the internationally renowned trouser press manufacturer, achieved
higher profits on lower sales, owing mainly to the successful transfer of
manufacturing to the Suncrest facility which was announced last September.
Westfield Medical, a leading manufacturer and supplier of single-use
sterilisation packaging materials to the medical and healthcare sector, suffered
a small reduction in profitability on higher sales.
Nelsons Labels, a leading supplier of fabric-based labels for the bedding,
carpet and upholstery industries, has been affected by the reduction in activity
in the UK High Street. Sales, including the small acquisition Chaplins, fell by
a small percentage but profits were sharply lower. Action was taken to bring
costs more into line with projected sales levels.
Capital Reorganisation
The Capital Reorganisation, which resulted in a 1 for 10 share consolidation,
was completed successfully on 19 December and has resulted in a reduction of
more than 300 shareholders, which the Directors anticipate will produce a
significant saving in administration costs.
Group Pensions
Like many final salary pension schemes, our Fund's investments diminished in
value over the two years ended April 2004, the date of the last actuarial
valuation. However, I am pleased to say that the subsequent rise in world stock
markets is increasing the value of the investments and reducing the deficit.
Your Board is aware of the overall position and continues to make appropriate
contributions. The Group balance sheet reflects compliance with FRS 17 for the
first time, requiring the inclusion of the Fund's deficit. The adoption of FRS
17 has had no significant impact on Group profit for the current period.
Outlook
Trading conditions in those businesses linked to the High Street have continued
to deteriorate, but the integration of the Suncrest and Corby manufacturing
operations and a disciplined approach to cost reductions have resulted in a
satisfactory improvement in profitability. The assets employed in the
businesses, particularly stocks and debtors, were reduced sharply, resulting in
debt falling by £947,000 compared with 31 December 2004.
Second half sales have started slowly, but the balance of the year looks likely
to be more in line with last year. The cost base has been reduced and any
increase in sales should accordingly improve the profits of the Group.
J David Abell
17 February 2006
Group Profit Statement
Unaudited Audited
Notes 6 months to 6 months to Year ended
31 December 31 December 30 June
2005 2004 2005
(restated) (restated)
£000s £000s £000s
Turnover 11,689 12,362 23,321
Cost of sales (7,821) (8,475) (16,029)
Gross Profit 3,868 3,887 7,292
Net operating expenses (3,223) (3,325) (6,764)
Amortisation of goodwill (151) (151) (301)
(3,374) (3,476) (7,065)
Operating profit 494 411 227
Provisions against - 48 (160)
investments
Profit on ordinary 494 459 67
activities before interest
Net interest (156) (212) (408)
Profit/(loss) on ordinary 338 247 (341)
activities before tax
2 Tax on profit/(loss) on (163) (159) (15)
ordinary activities
Profit/(loss) on ordinary 175 88 (356)
activities after tax
retained
4 Earnings per share
- Basic 5.4 p 2.7 p (10.9) p
- Diluted 5.4 p 2.7 p (10.8) p
Group Balance Sheet
Unaudited Audited
At At At
31 December 31 December 30 June
2005 2004 2005
(restated) (restated)
£000s £000s £000s
Fixed assets
Intangible assets 4,340 4,641 4,491
Tangible assets 3,950 4,601 4,193
Investments 176 384 176
8,466 9,626 8,860
Current assets
Stocks 2,531 2,852 2,763
Debtors 4,244 4,578 4,071
Property held for resale 279 - 279
7,054 7,430 7,113
Creditors : amounts falling due (7,799) (8,798) (8,430)
within one year
Net current liabilities (745) (1,368) (1,317)
Total assets less current 7,721 8,258 7,543
liabilities
Creditors : amounts falling due - (183) -
after more than one year
Provisions for liabilities and (157) (253) (169)
charges
Net assets excluding pension 7,564 7,822 7,374
liability
Pension liability (3,286) (2,591) (3,271)
Net assets including pension 4,278 5,231 4,103
liability
Capital and reserves
Called up share capital 3,240 3,269 3,240
Other reserves 3,145 4,059 3,145
Profit and loss account (2,107) (2,097) (2,282)
Equity shareholders' funds 4,278 5,231 4,103
Group Cash Flow Statement
Unaudited Audited
6 months to 6 months to Year ended
31 December 31 December 30 June
2005 2004 2005
£000s £000s £000s
Net cash inflow/(outflow) from 397 (152) 986
operating activities
Return on investments and servicing
of finance
Net Interest paid (120) (155) (294)
Taxation received/(paid) 14 (122) (209)
Capital expenditure and financial
investment
Purchase of tangible assets (20) (216) (362)
Sale of tangible assets - 6 4
(20) (210) (358)
Acquisitions and disposals
Closure costs on termination of - - (35)
discontinued operations
Net cash inflow/(outflow) before 271 (639) 90
financing
Financing
Purchase of own shares - (70) (123)
Repayment of Bank Loan - (183) (366)
Net cash inflow from financing - (253) (489)
Reduction/(increase) in net 271 (892) (399)
overdraft
Increase/(decrease) in net cash in 271 (892) (399)
the period
Repayment of Bank Loan - 183 366
Movement in net debt in the period 271 (709) (33)
Opening net debt (3,840) (3,807) (3,807)
Closing net debt (3,569) (4,516) (3,840)
Statement of Total Recognised Gains and Losses
Unaudited Audited
6 months to 6 months to Year ended
31 December 31 December 30 June
2005 2004 2005
(restated) (restated)
£000s £000s £000s
Profit/(loss) for the period 175 88 (356)
Actuarial loss - - (631)
Total recognised gains/(losses) 175 88 (987)
relating to the period
Reconciliation of Movement in Shareholders' Funds
Unaudited Audited
6 months to 6 months to Year ended
31 December 31 December 30 June
2005 2004 2005
(restated) (restated)
£000s £000s £000s
Profit/(loss) for the period 175 88 (356)
Purchase of own shares - (70) (123)
Actuarial loss - - (631)
Increase/(decrease) in shareholders' 175 18 (1,110)
funds
Opening shareholders' funds (as restated) 4,103 5,213 5,213
Closing shareholders' funds 4,278 5,231 4,103
Note to Warrantholders
A total of 3,293,173 warrants to subscribe for ordinary shares were issued on 15
November 1999 through a bonus issue of warrants to the holders of ordinary
shares on the register as at 12 November 1999. The warrants entitle the holder
to subscribe for new ordinary shares and are exercisable at a price of (after
capital reorganisation) £7 per new ordinary share. The warrants may be
exercised during any period of 28 days following publication of the final
accounts of the Company for each financial year of the Company between 30 June
2000 and 30 June 2006 and any period of 28 days following publication of the
interim accounts of the Company for each six months' period ending between 31
December 1999 and 31 December 2005.
Unless previously exercised, the warrants will expire on the date which is 28
days following the day of publication of the final accounts of the Company for
the year ending 30 June 2006.
Holders of warrants should note that the warrants are exercisable for a period
of 28 days following the date of this document and the procedure for exercise is
endorsed on each warrant certificate. However, the attention of warrantholders
is drawn to the fact that the exercise price of each warrant is (after capital
reorganisation) £7 which compares with the mid-market price of the Company's
shares as at 16 February 2006 (the latest practicable date prior to publication
of this document) of £1.39 per share.
Notes
1. The interim financial statements were approved by the Board
of Directors on 16 February 2006. The statements, which are unaudited, have
been prepared on the basis of the accounting policies published in the statutory
accounts for the year ended 30 June 2005 with the exception of the adoption of
FRS17 and FRS 22. The financial information set out in this interim report does
not constitute statutory accounts as defined in Section 240 of the Companies Act
1985. The figures for the year ended 30 June 2005 have been extracted from the
statutory financial statements which have been filed with the Registrar of
Companies. The Auditors' Report on those financial statements was unqualified
and did not contain a statement under Section 237(2) of the Companies Act 1985.
2. The estimated tax charge is based on a corporation tax rate
of 30.0%
3. The Directors do not recommend the payment of an interim
dividend.
4. At an extraordinary general meeting held on 19 December
2005, a resolution was passed whereby every 1,000 shares of 10 pence would be
consolidated into 1 new share of £100 each. Each consolidated share would then
be subdivided into 100 new ordinary shares of 100 pence each. Basic earnings per
share has been calculated on the weighted average number of shares in issue
during the period of 3,240,000 shares of £1 (six months to December 2004:
32,841,725 shares of 10p) and diluted earnings per share using 3,240,000 shares
of £1 (six months to 31 December 2004: 33,011,800 shares of 10p).
5. The comparatives for the year ended 30 June 2005 and half
year to 31 December 2004 have been restated to reflect the adoption of FRS 17
and FRS 22. The impact on the profit for the current period is not material.
6. Copies of this report have been sent to shareholders and
warrantholders. Copies are also available to members of the public from the
Company's registered office: Elm House, Elmer Street North, Grantham,
Lincolnshire NG31 6RE.
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END
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