Jourdan plc
(Jourdan or the "Company")
Interim Results for the six months ended 31 December 2008
Chairman's Statement
It is pleasing to report that Jourdan has made further progress in the first half of the year despite the prevailing economic uncertainties.
Financial Results
Revenue in the six months to 31 December 2008 from continuing activities reduced by 3% to £10.7 million (2007: £11.0 million). However, operating profit from continuing activities before amortisation increased by 23% to £1,015,000 (2007: £823,000). Last year's figures exclude a non recurring £623,000 profit on the sale of the Andover factory. I believe these are excellent results in the current environment, particularly as they encompass bad debt provisions of more than £100,000.
Profit before tax from continuing activities for the half year was £906,000 (2007: £604,000, before profit on Andover factory), with earnings per share at 18.6p (2007: 10.1p).
Dividend
The Board is committed to a progressive dividend policy. The Company has paid a final dividend, of 8.0p per share for each of the last two years, but has not paid an interim dividend. In view of these excellent results, and as a mark of its confidence in the Company's prospects, your Board has decided that it is appropriate to declare an interim dividend of 4.0p per share (2007 -nil). The interim dividend will be paid on 30 April 2009 to those shareholders on the Company's register as at 14 April 2009.
Operating Companies
Westfield Medical/Clinipak, the leading UK manufacturer and supplier of single-use sterilisation packaging material to the medical and healthcare industry, achieved substantially improved sales and profits. Sales to most sectors rose during the six months to December, and exports in particular, which accounted for approximately 42% of Westfield Medical/Clinipak sales, benefited from the further devaluation of Sterling.
Corby, the internationally renowned designer and distributor of trouser presses, again achieved lower profits on substantially reduced sales. However, sales to export markets in currencies other than Sterling helped profitability as Sterling devalued throughout the period.
Nelsons Labels, which manufactures and sells a variety of fabric-based labels for mattresses, carpets and upholstery, had another disappointing half year. Sales were substantially lower and small losses were incurred primarily because of the insolvency of Nelson's largest customer which resulted in a loss of £83,000.
Group Pension
The reported pension obligation (net of tax) has reduced from £2,070,000 at 30 June 2008 to £1,710,000 at 31 December 2008, following substantial contributions to the scheme in the period. However, in the light of the recent collapse in stock market prices and the significant reduction in interest rates the position remains fluid and will continue to be under review. The Pension Fund currently has seven active members, reduced from 17 last year.
Outlook
Following the disposal of the Suncrest business in May last year, the group is well positioned to yield further positive returns to shareholders. Whilst trading conditions remain difficult for the group's consumer businesses, the medical packaging business is a clear leader in a strong market place with excellent prospects. In addition, the group continues to hold valuable property assets and has also taken major steps to reduce further its Pension Fund obligations.
Trading for the year to date is highly satisfactory and, while the outcome for the current year cannot be forecast accurately given the prevailing economic climate, it is pleasing to report that profits of the reduced group are well ahead of budget and the same period last year. Moreover, the bank debt of £2,004,000 at 30 June 2008 has only increased to £2,187,000 despite paying £697,000 to the Pension Fund. The debt is well within our facilities.
The increasingly onerous regulatory and financial requirements for small companies are a particularly unwelcome burden at this time but your Board continues to find means of improving Shareholder value.
J David Abell
20 February 2009
Enquiries:
Jourdan plc 01476 403 456
David Abell, Chairman
Charles Stanley Securities 020 7149 6000
Nominated Adviser
Russell Cook / Carl Holmes
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
Unaudited | 6 months to 31 December 2008 | 6 months to 31 December 2007 | Year to 30 June 2008 | |
Notes | £000s | £000s | £000s | |
Continuing operations | ||||
3 | Revenue | 10,673 | 11,013 | 20,970 |
Cost of sales | (6,854) | (7,437) | (13,899) | |
Gross profit | 3,819 | 3,576 | 7,071 | |
Net operating costs: | ||||
Operating costs | (2,846) | (2,887) | (5,433) | |
Profit on disposal of non-current assets classified as held for sale | - | 623 | 653 | |
Net operating costs | (2,846) | (2,264) | (4,780) | |
3 | Operating profit | 973 | 1,312 | 2,291 |
Finance income | - | 11 | 109 | |
Finance costs | (67) | (96) | (149) | |
Profit before tax | 906 | 1,227 | 2,251 | |
Taxation | (273) | (262) | (595) | |
Profit for the period from continuing operations | 633 | 965 | 1,656 | |
Discontinued operation | ||||
Profit/(loss) for the period after taxation | - | 190 | (367) | |
Profit/(loss) on disposal after taxation | 18 | - | (982) | |
Profit/(loss) for the period from discontinued operation | 18 | 190 | (1,349) | |
Profit for the period attributable to equity holders of the Parent Company | 651 | 1,155 | 307 | |
Earnings per share from continuing operations | Pence | Pence | Pence | |
6 | Basic | 18.6 | 28.4 | 48.7 |
6 | Diluted | 18.6 | 28.2 | 48.7 |
Earnings per share from discontinued operation | ||||
6 | Basic | 0.6 | 5.6 | (39.7) |
6 | Diluted | 0.6 | 5.6 | (39.7) |
Earnings per share from continuing and discontinued operations | ||||
6 | Basic | 19.2 | 34.0 | 9.0 |
6 | Diluted | 19.2 | 33.8 | 9.0 |
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
Unaudited | 31 December 2008 | 31 December 2007 | 30 June 2008 | |
Notes | £000s | £000s | £000s | |
ASSETS | ||||
Non-current assets | ||||
Property, plant and equipment | 1,657 | 1,962 | 1,629 | |
Goodwill | 4,736 | 5,160 | 4,736 | |
4 | Other intangible assets | 480 | 855 | 522 |
Deferred tax assets | 582 | 424 | 714 | |
7,455 | 8,401 | 7,601 | ||
Current assets | ||||
Inventories | 2,149 | 3,188 | 2,029 | |
Trade and other receivables | 3,803 | 6,162 | 4,092 | |
Current tax receivable | 23 | - | 90 | |
5,975 | 9,350 | 6,211 | ||
Assets classified as held for sale | 1,502 | 1,502 | 1,502 | |
Total assets | 14,932 | 19,253 | 15,314 | |
LIABILITIES | ||||
Current liabilities | ||||
Trade and other payables | (5,572) | (7,955) | (5,853) | |
Current portion of deferred consideration | - | (395) | - | |
Current tax payable | - | (362) | - | |
(5,572) | (8,712) | (5,853) | ||
Non-current liabilities | ||||
Deferred consideration | - | (75) | - | |
Long-term provisions | (44) | (44) | (44) | |
Deferred tax liabilities | - | (144) | - | |
Pension liability | (2,375) | (1,516) | (2,875) | |
(2,419) | (1,779) | (2,919) | ||
Total liabilities | (7,991) | (10,491) | (8,772) | |
Net assets | 6,941 | 8,762 | 6,542 | |
EQUITY | ||||
5 | Share capital | 3,400 | 3,400 | 3,400 |
5 | Share premium account | 260 | 260 | 260 |
5 | Other reserves | 3,145 | 3,145 | 3,145 |
5 | Profit and loss reserve | 136 | 1,957 | (263) |
Equity attributable to equity holders | 6,941 | 8,762 |
|
CONDENSED CONSOLIDATED INTERIM STATEMENT OF RECOGNISED INCOME AND EXPENSE
Unaudited | 31 December 2008 | 31 December 2007 | 30 June 2008 | |
£000s | £000s | £000s | ||
Actuarial loss recognised in the pension scheme | - | - | (1,931) | |
Movement on deferred tax relating to pension liability | - | - | 522 | |
Net expense recognised directly in equity | - | - | (1,409) | |
Profit for the period | 651 | 1,155 | 307 | |
Total recognised income and expense in the period attributable to equity holders | 651 | 1,155 | (1,102) | |
CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT
Unaudited | 6 months to 31 December 2008 | 6 months to 31 December 2007 | Year to | ||
Notes | £000s | £000s | £000s | ||
Cash flows from operating activities | |||||
Profit after tax | 651 | 1,155 | 307 | ||
Adjustments for: | |||||
Depreciation | 124 | 238 | 445 | ||
Amortisation of intangible assets | 42 | 134 | 260 | ||
Impairment of intangible assets | - | - | 207 | ||
Profit on disposal of property, plant and equipment | - | (623) | (653) | ||
Loss on sale of discontinued activity | - | - | 1,364 | ||
Net pension adjustment | (500) | - | (572) | ||
Share based payments | 20 | 36 | 73 | ||
Finance income | - | (11) | (13) | ||
Finance cost | 88 | 150 | 238 | ||
Tax expense recognised in income statement | 280 | 262 | 37 | ||
(Increase)/decrease in inventories | (120) | 334 | 526 | ||
Increase in trade and other receivables | (46) | (1,016) | (181) | ||
(Decrease)/increase in trade and otherPayables | (464) | 42 | (432) | ||
Cash generated from operations | 75 | 701 | 1,606 | ||
Interest paid | (88) | (150) | (238) | ||
Tax paid | (81) | (225) | (327) | ||
Net cash from operating activities | (94) | 326 | 1,041 | ||
Cash flows from investing activities | |||||
Acquisition of subsidiaries, net of cash acquired | - | (141) | (187) | ||
Purchase of property, plant and equipment | (156) | (63) | (206) | ||
Proceeds from sale of non-current assets | - | 902 | 932 | ||
Proceeds from disposal of equipment | 4 | - | 6 | ||
Proceeds from disposal of discontinued activity | 335 | - | 70 | ||
Interest received | - | 11 | 13 | ||
Net cash generated from investing activities | 183 | 709 | 628 | ||
Cash flows from financing activities | |||||
7 | Dividends paid | (272) | (272) | (272) | |
Net cash used in financing activities | (272) | (272) | (272) | ||
Net (decrease)/increase in cash and cash equivalents | (183) | 763 | 1,397 | ||
Cash and cash equivalents at beginning of period | (2,004) | (3,401) | (3,401) | ||
Cash and cash equivalents at end of period | (2,187) | (2,638) | (2,004) | ||
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. General information
Jourdan plc is the ultimate Parent Company of the Group with interests in both the consumer and industrial markets. The address and principal place of business of Jourdan plc is Elm House, Elmer Street North, Grantham, Lincolnshire NG31 6RE. These Condensed Consolidated Financial Statements are for the six months ended 31 December 2008. These Condensed Consolidated Financial Statements are presented in Pounds Sterling, which is also the functional currency of the Parent Company. They were approved for issue by the Board of Directors on 20 February 2009.
2. Basis of preparation
These Condensed Consolidated Interim Financial Statements have been prepared under the historical cost convention.
These Condensed Consolidated Interim Financial Statements (the Interim Financial Statements) have been prepared in accordance with the accounting policies set out in the notes to the full year end statutory accounts as approved by the Board of Directors.
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these Condensed Consolidated Interim Financial Statements.
3. Segmental Reporting
6 months to 31 December 2008 | 6 months to 31 December 2007 | Year to 30 June 2008 | |
£000s | £000s | £000s | |
Revenue | |||
Consumer products | 1,497 | 2,165 | 3,419 |
Industrial products | 9,160 | 8,838 | 17,531 |
Central costs and consolidation | 16 | 10 | 20 |
Consolidated total | 10,673 | 11,013 | 20,970 |
Operating profit | |||
Consumer products | 158 | 199 | 239 |
Industrial products | 1299 | 806 | 1,140 |
Central costs and consolidation | (484) | 307 | 912 |
Consolidated total | 973 | 1,312 | 2,291 |
4. Intangible assets
The following table shows the significant movements in respect of intangible assets:
Contracted sales | Patents | Other customer relationships | Total | ||
£000s | £000s | £000s | £000s | ||
Carrying amount at 1 July 2007 | 46 | 496 | 447 | 989 | |
Amortisation | (14) | (25) | (95) | (134) | |
Carrying amount at 31 December 2007 | 32 | 471 | 352 | 855 | |
Impairment | - | - | (207) | (207) | |
Amortisation | (13) | (25) | (88) | (126) | |
Carrying amount at 30 June 2008 | 19 | 446 | 57 | 522 | |
Amortisation | (10) | (23) | (9) | (42) | |
Carrying amount at 31 December 2008 | 9 | 423 | 48 | 480 | |
5. Movement on reserves
Share capital | Share premium | Other reserve | Profit & loss reserve | Total | ||
|
|
|
|
| ||
Balance at 1 July 2007 | 3,400 | 260 | 3,145 | 1,038 | 7,843 | |
Changes in equity for the period | ||||||
Net actuarial gain in respect of the defined benefit | - | - | - | - | - | |
Net income recognised directly in equity | - | - | - | - | - | |
Profit for the six months to 31 December 2007 | - | - | - | 1,155 | 1,155 | |
Total recognised income and expense for the period | - | - | - | 1,155 | 1,155 | |
Dividends | - | - | - | (272) | (272) | |
Credit relating to issue of share options | - | - | - | 36 | 36 | |
Balance at 31 December 2007 | 3,400 | 260 | 3,145 | 1,957 | 8,762 | |
Changes in equity for the period | ||||||
Net actuarial loss in respect of the defined benefit | - | - | - | (1,409) | (1,409) | |
Net income recognised directly in equity | - | - | - | (1,409) | (1,409) | |
Loss for the six months to 30 June 2008 | - | - | - | (848) | (848) | |
Total recognised income and expense for the period | - | - | - | (848) | (848) | |
Dividends | - | - | - | - | - | |
Credit relating to issue of share options | - | - | - | 37 | 37 | |
Balance at 30 June 2008 | 3,400 | 260 | 3,145 | (263) | 6,542 | |
Changes in equity for the period | ||||||
Net actuarial gain in respect of the defined benefit | - | - | - | - | - | |
Net income recognised directly in equity | - | - | - | - | - | |
Profit for the six months to 31 December 2008 | - | - | - | 651 | 651 | |
Total recognised income and expense for the period | - | - | - | 651 | 651 | |
Dividends | - | - | - | (272) | (272) | |
Credit relating to issue of share options | - | - | - | 20 | 20 | |
Balance at 31 December 2008 | 3,400 | 260 | 3,145 | 136 | 6,941 | |
6. Earnings per share
The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.
The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares and the post-tax effect of interest on the assumed conversion of all dilutive options and other dilutive potential ordinary shares.
Reconciliations of the earnings and the weighted average number of shares used in the calculations are set out below:
6 months to 31 December 2008 | Earnings attributable to equity holders of the Parent Company | Weighted | Earnings |
£000s | Number | Pence | |
Profit after tax for calculation of basic earnings per share | 651 | ||
Notional taxed interest income accruing on dilution | - | ||
Profit after tax for calculation of diluted earnings per share | 651 | ||
Add-back amortisation of intangible assets, net of tax | 42 | ||
Adjusted diluted profit before amortisation of intangible assets | 693 | ||
Number of shares for calculation of basic earnings per share | 3,400,010 | ||
Dilutive effect of potential shares | - | ||
Number of shares for calculation of diluted earnings per share | 3,400,010 | ||
Basic earnings per share | 19.2 | ||
Diluted earnings per share | 19.2 | ||
Adjusted basic earnings per share | 20.4 | ||
Adjusted diluted earnings per share | 20.4 | ||
Continuing | |||
Basic earnings per share | 633 | 18.6 | |
Diluted earnings per share | 18.6 | ||
Adjusted basic earnings per share | 675 | 19.8 | |
Adjusted diluted earnings per share | 19.8 | ||
Discontinued | |||
Basic earnings per share | 18 | 0.6 | |
Diluted earnings per share | 0.6 | ||
Adjusted basic earnings per share | 18 | 0.6 | |
Adjusted diluted earnings per share | 0.6 |
6 months to 31 December 2007 | Earnings attributable to equity holders of the Parent Company | Weighted | Earnings |
£000s | Number | Pence | |
Profit after tax for calculation of basic earnings per share | 1,155 | ||
Notional taxed interest income accruing on dilution | - | ||
Profit after tax for calculation of diluted earnings per share | 1,155 | ||
Add-back amortisation of intangible assets, net of tax | 98 | ||
Adjusted diluted profit before amortisation of intangible assets | 1,253 | ||
Number of shares for calculation of basic earnings per share | 3,400,010 | ||
Dilutive effect of potential shares | 20,952 | ||
Number of shares for calculation of diluted earnings per share | 3,420,962 | ||
Basic earnings per share | 34.0 | ||
Diluted earnings per share | 33.8 | ||
Adjusted basic earnings per share | 36.9 | ||
Adjusted diluted earnings per share | 36.6 | ||
Continuing | |||
Basic earnings per share | 965 | 28.4 | |
Diluted earnings per share | 28.2 | ||
Adjusted basic earnings per share | 1,063 | 31.3 | |
Adjusted diluted earnings per share | 31.0 | ||
Discontinued | |||
Basic earnings per share | 190 | 5.6 | |
Diluted earnings per share | 5.6 | ||
Adjusted basic earnings per share | 190 | 5.6 | |
Adjusted diluted earnings per share | 5.6 |
Year to 30 June 2008 | Earnings attributable to equity holders of the Parent Company | Weighted average number of shares | Earnings per share |
£000s | Number | Pence | |
Profit after tax for calculation of basic earnings per share | 307 | ||
Notional taxed interest income accruing on dilution | 19 | ||
Profit after tax for calculation of diluted earnings per share | 326 | ||
Add-back amortisation and impairment of intangible assets, net of tax | 336 | ||
Adjusted diluted profit before amortisation of intangible assets | 662 | ||
Number of shares for calculation of basic earnings per share | 3,400,010 | ||
Dilutive effect of potential shares | 9,137 | ||
Number of shares for calculation of diluted earnings per share | 3,409,147 | ||
Basic earnings per share | 9.0 | ||
Diluted earnings per share | 9.0 | ||
Adjusted basic earnings per share | 18.9 | ||
Adjusted diluted earnings per share | 18.9 | ||
Continuing | |||
Basic earnings per share | 1,656 | 48.7 | |
Diluted earnings per share | 48.7 | ||
Adjusted basic earnings per share | 1,992 | 58.6 | |
Adjusted diluted earnings per share | 58.6 | ||
Discontinued | |||
Basic earnings per share | (1,349) | (39.7) | |
Diluted earnings per share | (39.7) | ||
Adjusted basic earnings per share | (1,349) | (39.7) | |
Adjusted diluted earnings per share | (39.7) |
7. Dividends
The Company paid a dividend of 8p per share (£272,000) on 21 November 2008 relating to the financial year ended 30 June 2008. A dividend of 8p per share (£272,000) was paid on 9 November 2007 relating to the financial year ended 30 June 2007.
8. Status of interim report
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 Group's statutory financial statements for the year ended 30 June 2008, prepared under IFRS, have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 237(2) and Section 237(3) of the Companies Act 1985.
9. Distribution of document
Copies of these Condensed Consolidated Interim Financial Statements will be sent to shareholders shortly. Copies will also be available on the Company website: www.jourdanplc.co.uk.
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