Last checked at 28 May 2010 07:00
PRELIMINARY RESULTS
for the year ended 31 March 2010
Summary
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| 2010 | 2009 |
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| £'000 | £'000 |
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| Revenue | 189,426 | 158,653 |
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| Adjusted EBITDA * | 3,382 | 3 |
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| Adjusted operating profit/(loss) * | 2,152 | (1,425) |
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| Non-underlying items | 118 | (2,132) |
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| Adjusted profit/(loss) before tax * | 852 | (2,288) |
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| Profit/(loss) before tax | 970 | (4,420) |
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| Earnings/(loss) per share | 38.6p | (137.8p) |
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| Adjusted earnings/(loss) per share | 35.7p | (59.8p) |
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| Final proposed dividend per share | 5.0p | 2.0p |
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| * Adjusted for non-underlying items | ||
Highlights
| § Revenue up 19.3% to £189.4 million |
| § Return to profitability - £1m profit before tax, compared with £4.4m loss the previous year |
| § New car unit sales up 42% on a like for like basis |
| § New car market share increased |
| § Used car unit sales up by 4.3% on a like for like basis |
| § Aftersales resilient with turnover increasing by 5.5% on a like for like basis |
| § Proposed final dividend of 5.0p per ordinary share (2009: 2.0p) making 10.0p for the year (2009: 4.0p) |
| § Ratio of net bank borrowings to equity of 47% (2009: 42%) |
| § Strong order book for new cars taken into 2010-11 |
The Chief Executive, Simon Caffyn, commented:
"Revenues increased 19% last year and we achieved a notable return to profitability. In what remain uncertain times, both in the car industry and the wider economic environment, we recorded a significant turn-around in business performance to achieve a profit before tax of £1m. We have a strong balance sheet and are well placed to continue developing existing businesses and consider other selective opportunities."
Enquiries:
| Caffyns plc | Simon Caffyn, Chief Executive | Tel: | 01323 730201 |
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| Mark Harrison, Finance Director |
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| The HeadLand Consultancy | Howard Lee Tom Gough | Tel: | 0207 367 5225 or 5228 |
Operational Business Review
Results
In the year to 31 March 2010 revenue has increased by 19.3% to £189.4m from £158.7m last year, despite the closure of three dealerships in the second half of last year. Like for like revenue is up 25.2%.
We have returned to profitable trading and report a profit before tax of £970,000 compared to a loss before tax of £4.4m last year; a turnaround of £5.4m. Earnings per share were 38.6p (2009 - loss of 137.8p).
Operating Review
| § | Vehicle Sales |
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| The UK car Scrappage Scheme, which began in May 2009, had a positive impact on the national new car market which rose 10.2% in the twelve months to March 2010. We operate mainly in the retail and small business sector which saw registrations increase by 30.5% in this period. For the year to March 2010 our new car unit sales rose by 42% on a like for like basis, indicating an increase in our market share.
In the first half of the year we concentrated on the sale of used cars to counter a weak new car market. This resulted in an improvement in unit sales of 15.1% on a like for like basis. Increased demand and the shortage of supply drove a recovery in used vehicle values that had fallen dramatically in the previous year. The second half of the year saw demand shifting to new car sales, however, our used car unit sales for the year were up 4.3% on a like for like basis. Industry statistics for the twelve months to December 2009 show national used car unit sales down 5.9% whereas our used unit sales in this period were up 14.5%.
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| § | Aftersales |
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| With annual registrations of new cars falling from 2.4m in 2007 to 1.9m in 2009 the potential customer base for the servicing of cars up to two years old is smaller with strong competition from independent repairers. Despite this it is encouraging to report an increase in our aftersales turnover of 5.5% like for like notwithstanding the severe winter conditions experienced in January.
This improved performance against a declining market is a result of:
·; continued investment in training, ·; continued improvement in our processes to deliver ever better service, and ·; enhancement of our customer relations management processes with a strengthened customer marketing centre.
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| § | Auto-Owl |
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| In January we established Auto-Owl, a new web based sales channel, marketing new cars predominantly to business users via the internet. This has enabled us to reach a new market thereby further enhancing our new car market share and aftersales opportunity. The website can be viewed at www.auto-owl.co.uk.
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| § | Cost Reduction |
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| Operating costs have reduced by 2.6% to 13.4% of revenues in spite of an increase in the pension charge of £560,000 over the previous year, calculated under IAS 19.
The closure last year of three underperforming dealerships, together with an ongoing programme to minimise costs, has ensured that we are seeing the benefits of ongoing cost reduction of the order of £2.5m per annum. This has been achieved whilst still giving customers excellent levels of service reflected in improved customer satisfaction statistics.
In March this year we closed a small used car and servicing operation in Worthing and successfully transferred the business to our Volkswagen dealership in the same town.
Further savings have been made in management and we will continue to cut our costs and further improve efficiencies. The result for the year includes redundancy costs of £272,000. The average number of people employed by the Group fell from 698 to 648. |
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| § | Stock Levels |
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| Our stocks of new cars on consignment have been kept low giving us a greatly improved stock turn and lower consignment interest costs from our manufacturer vehicle funding schemes.
Having dramatically reduced used vehicle stocks and strengthened our used car write-down policies last year in response to the poor market conditions that prevailed at that time, car stocks have increased in the year reflecting improved demand. However, our used car stock turn remains high at over 10 times per annum producing a good return on this investment.
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| § | Reduced Capital Expenditure |
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| The only significant capital project in the year was the completion of our Audi Centre in Brighton. This dealership is now fully operational again and has been able to make a much improved contribution to profits in the year to 31 March 2010. Total capital expenditure in the year was £392,000, considerably lower than in recent years. |
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| § | Working Capital and Finance |
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| We concluded the refinancing of our bank facilities during the year with £8m of revolving credit facilities in place until February 2012 and £10m of overdraft facilities. These facilities are on a secured basis. We have traded throughout the year at levels well below these facility limits and net borrowings at the year end were £9.5m compared to total facilities of £18m. In addition, we have substantial stocking facilities available to us through the financing arms of our manufacturer partners. |
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| § | Franchise Developments |
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| By adding additional franchise facilities we have improved turnover at various sites. In Brighton we added Ford to our Volvo dealership and, in Sevenoaks, Citroen aftersales was added to our Peugeot dealership. In addition, we amalgamated the management of our Land Rover and Jaguar dealerships in Sussex and our two Ford dealerships in Hampshire and Surrey. |
Pension Scheme
The pension scheme deficit increased to £6.4m at 31 March 2010 from £3.7m at 31 March 2009. While the scheme assets increased during the year, the estimated liabilities increased at a greater rate largely as a result of a reduction in the discount rate from 6.8% to 5.6%. This reduction reflected the sharp movement that has occurred in long-term corporate bond yields. However, the Recovery Plan agreed with the trustees following the actuarial valuation at 31 March 2008 will require cash payments of £120,000 per annum in the two years to 31 March 2011 and a further £1.44m payable over a maximum period of eight years.
We have now closed our defined benefit scheme to future accrual with effect from 1 April 2010. Continued provision of pension benefits will be available to existing employees through the alternative defined contribution scheme which has been available to new members of staff joining the Company since April 2006.
Property
We have an agreement to lease our site in Preston Road, Brighton to Sainsbury's Supermarkets Ltd., now only conditional on the granting of a planning application for change of use which is expected to be considered by the local authority this summer. Our freehold site in East Grinstead has been re-marketed for sale although planning issues continue to delay the sale of this site. We incurred a cost of £25,000 terminating a short lease in Tunbridge Wells following the transfer of our Skoda dealership to our premises in Tonbridge.
The Company valued its portfolio of freehold premises as at 31 March 2010 but excluding three sites which were either for sale or available for letting as at that date. The valuation was carried out by CB Richard Ellis Limited, chartered surveyors, on the basis of existing use value. The excess of the valuation over net book value as at 31 March 2010 was £7.4m. In accordance with the Company's accounting policies, this surplus has not been incorporated into the accounts.
VAT
The claim that had been lodged with HM Revenue and Customs in connection with the repayments of VAT received in September 2004 and March 2007 was joined in a Group Litigation Order ("GLO") along with other claimants. Interest on these repayments was on a simple interest basis whereas the GLO claimed that it should have been on a compound interest basis. As previously reported, while the High Court found in the claimant's favour, it also held that the limitation period for bringing these particular claims ran out in around 2002/03. Claims were not made because, at that time, dealerships were unaware of their entitlement to claim. The view of the court on appeal was to uphold the original decision. Alternative litigation is being pursued by claimants where the time limits point is not an issue. A preliminary hearing in court is expected in June 2010.
Tax
A tax credit has arisen in the year of £137,000. This has largely arisen following successful claims for losses to be set against profits in earlier years.
People
Following the appointment of Guy Ainsley to the Board last November, the senior management team has been restructured giving rise to an increased focus on operational improvement.
Again, I thank all our employees for their outstanding commitment and positive attitudes that have enabled us to produce a swift turn-around of the Company's results.
Our management team is working well and our newly established central marketing department is improving customer retention through good service and professionalism.
Dividend
The Board has decided to recommend a final dividend of 5.0p per Ordinary Share. If approved at the Annual General Meeting, this will be paid on 29 July 2010 to shareholders on the register at close of business on 25 June 2010. Together with the interim dividend of 5.0p per share paid during the year, the total dividend for the year will be 10.0p per ordinary share.
Strategy
The past few years have demonstrated that, despite market and general economic difficulties, premium and premium-volume franchises continue to be more resilient and deliver stronger sales, profits and overall returns.
Our strategy is to focus on representing premium and premium-volume franchises by building capacity within our existing businesses and to expand into new and larger markets with our franchise partners or new partners where possible.
Strenuous efforts will continue to ensure that we remain on track to return to historic levels of profitability of between £3m and £4m of pre-tax income.
Current Trading and Outlook
We enter the current year with strong new car order books. Order intake remains good on both new and used cars but industry expectations are for a more challenging new car market in the second half of 2010.
Our aftersales operations continue to benefit from innovative marketing and active customer retention programmes and we are improving our share of this market as a result.
Our business is largely driven by the level of consumer confidence. Our short term prospects will depend upon the impact of the measures taken by the Government and their effect on consumer behaviour.
The actions that we took last year, and continue to take this year, have strengthened our operations and structure leaving us more flexible and cost-effective. We face an uncertain economic environment but expect to show further growth this year.
S G M Caffyn
Chief Executive
28 May 2010
Consolidated Income Statement
for the year ended 31 March 2010
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Note | Before non-underlying | Non-underlying (note 5) | 2010 | Before non-underlying | Non-underlying (note 5) | 2009 |
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| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
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| Revenue |
| 189,426 | - | 189,426 | 158,109 | 544 | 158,653 |
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| Cost of sales |
| (161,831) | - | (161,831) | (134,173) | (1,194) | (135,367) |
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| Gross profit/(loss) |
| 27,595 | - | 27,595 | 23,936 | (650) | 23,286 |
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| Operating expenses |
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| Distribution costs |
| (15,382) | (71) | (15,453) | (16,563) | (653) | (17,216) |
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| Administration expenses |
| (10,061) | 189 | (9,872) | (8,798) | (1,257) | (10,055) |
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| Operating profit/(loss) before other income |
| 2,152 | 118 | 2,270 | (1,425) | (2,560) | (3,985) |
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| Other income - gains on the sale of property |
| - | - | - | - | 428 | 428 |
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| Operating profit/(loss) |
| 2,152 | 118 | 2,270 | (1,425) | (2,132) | (3,557) |
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| Finance expense | 6 | (1,300) | - | (1,300) | (1,177) | - | (1,177) |
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| Finance income | 7 | - | - | - | 314 | - | 314 |
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| Net finance costs |
| (1,300) | - | (1,300) | (863) | - | (863) |
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| Profit/(loss) before taxation |
| 852 | 118 | 970 | (2,288) | (2,132) | (4,420) |
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| Income tax credit/(expense) | 8 | 171 | (34) | 137 | 566 | (115) | 451 |
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| Profit/(loss) for the year from continuing operations |
| 1,023 | 84 | 1,107 | (1,722) | (2,247) | (3,969) |
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| Earnings/(loss) per share continuing operations |
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| Basic and diluted | 9 |
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| 38.6p |
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| (137.8p) |
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Consolidated Statement of Comprehensive Income
for the year ended 31 March 2010
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| 2010 |
| 2009 |
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| £'000 |
| £'000 |
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| Profit/(loss) for the year | 1,107 |
| (3,969) |
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| Other comprehensive income: |
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| Defined benefit plan actuarial loss recognised | (2,599) |
| (6,002) |
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| Deferred tax on actuarial loss | 728 |
| 1,679 |
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| Total other comprehensive income, net of taxation | (1,871) |
| (4,323) |
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| Total comprehensive income for the year | (764) |
| (8,292) |
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Consolidated Balance Sheet
at 31 March 2010
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| 2010 £'000 |
| 2009 £'000 |
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| Non-current assets |
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| Property, plant and equipment | 31,683 |
| 32,176 |
| Goodwill | 286 |
| 286 |
| Deferred tax asset | 96 |
| - |
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| 32,065 |
| 32,462 |
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| Current assets |
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| Inventories | 22,032 |
| 19,095 |
| Trade and other receivables | 8,105 |
| 5,926 |
| Cash and cash equivalents | 407 |
| 32 |
| Non current assets classified as held for sale | 564 |
| 564 |
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| 31,108 |
| 25,617 |
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| Total assets | 63,173 |
| 58,079 |
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| Current liabilities |
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| Interest bearing loans and borrowings | 1,888 |
| 8,922 |
| Trade and other payables | 25,195 |
| 21,899 |
| Current tax payable | 220 |
| 212 |
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| 27,303 |
| 31,033 |
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| Net current assets/(liabilities) | 3,805 |
| (5,416) |
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| Non-current liabilities |
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| Interest bearing loans and borrowings | 8,000 |
| 6 |
| Preference shares | 1,237 |
| 1,237 |
| Deferred tax liabilities | - |
| 784 |
| Retirement benefit obligations | 6,358 |
| 3,715 |
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| 15,595 |
| 5,742 |
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| Total liabilities | 42,898 |
| 36,775 |
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| Net assets | 20,275 |
| 21,304 |
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| Capital and reserves |
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| Share capital | 1,439 |
| 1,439 |
| Share premium account | 272 |
| 272 |
| Capital redemption reserve | 282 |
| 282 |
| Non-distributable reserve | 2,901 |
| 2,901 |
| Other reserve | 72 |
| - |
| Retained earnings | 15,309 |
| 16,410 |
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| Total equity attributable to shareholders of Caffyns plc | 20,275 |
| 21,304 |
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Consolidated Statement of Changes in Equity
for the year ended 31 March 2010
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Share capital £'000 |
Share premium £'000 | Capital redemption reserve £'000 | Non-distributable reserve £'000 | Other reserve £'000 |
Retained earnings £'000 |
Total £'000 |
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| At 1 April 2009 | 1,439 | 272 | 282 | 2,901 | - | 16,410 | 21,304 |
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| Total comprehensive income |
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| Profit for the year | - | - | - | - | - | 1,107 | 1,107 |
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| Other comprehensive income | - | - | - | - | - | (1,871) | (1,871) |
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| Total comprehensive income for the year | - | - | - | - | - | (764) | (764) |
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| Transactions with owners: |
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| Dividends | - | - | - | - | - | (200) | (200) |
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| Purchase of own shares | - | - | - | - | - | (137) | (137) |
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| Share based payment | - | - | - | - | 72 | - | 72 |
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| At 31 March 2010 | 1,439 | 272 | 282 | 2,901 | 72 | 15,309 | 20,275 |
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for the year ended 31 March 2009
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Share capital £'000 |
Share premium £'000 | Capital redemption reserve £'000 | Non-distributable reserve £'000 |
Retained earnings £'000 |
Total £'000 |
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| At 1 April 2008 | 1,439 | 272 | 282 | 3,892 | 24,258 | 30,143 |
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| Total comprehensive income |
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| Loss for the year | - | - | - | - | (3,969) | (3,969) |
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| Other comprehensive income | - | - | - | - | (4,323) | (4,323) |
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| Total comprehensive income for the year | - | - | - | - | (8,292) | (8,292) |
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| Transactions with owners - Dividends | - | - | - | - | (547) | (547) |
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| Transfer | - | - | - | (991) | 991 | - |
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| At 31 March 2009 | 1,439 | 272 | 282 | 2,901 | 16,410 | 21,304 |
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Consolidated Cash Flow Statement
for the year ended 31 March 2010
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| Note |
| 2010 |
| 2009 |
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| £'000 |
| £'000 |
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| Net cash from operating activities | 11 |
| 144 |
| 6,499 |
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| Investing activities |
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| Proceeds on disposal of property, plant and equipment |
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| - |
| 2,589 |
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| Purchases of property, plant and equipment |
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| (392) |
| (3,253) |
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| Net cash used in investing activities |
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| (392) |
| (664) |
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| Financing activities |
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| Secured loans drawn down |
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| 8,000 |
| - |
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| Repayment of unsecured bank loans |
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| - |
| (3,000) |
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| Purchase of own shares |
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| (137) |
| - |
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| Dividends paid |
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| (200) |
| (547) |
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| Repayments of obligations under finance leases |
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| (15) |
| (29) |
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|
|
|
|
|
| Net cash inflow/(outflow) from financing activities |
|
| 7,648 |
| (3,576) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase in cash and cash equivalents |
|
| 7,400 |
| 2,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents at beginning of year |
|
| (8,876) |
| (11,135) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents at end of year |
|
| (1,476) |
| (8,876) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 31 March |
| 31 March |
| 31 March |
|
| 2010 |
| 2009 |
| 2008 |
|
| £'000 |
| £'000 |
| £'000 |
|
|
|
|
|
|
|
| Cash and cash equivalents | 407 |
| 32 |
| 29 |
|
|
|
|
|
|
|
| Overdrafts | (1,883) |
| (8,908) |
| (11,164) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash and cash equivalents | (1,476) |
| (8,876) |
| (11,135) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
for the year ended 31 March 2010
1. GENERAL INFORMATION
Caffyns plc is a company domiciled in the United Kingdom. The address of the registered office is Saffrons Rooms, Meads Road, Eastbourne BN20 7DR. The registered number of the Company is 105664.
These consolidated financial statements were approved by the Directors on 28 May 2010.
2. ACCOUNTING POLICIES
The financial information has been prepared under International Financial Reporting Standards (IFRSs) issued by the IASB and as adopted by the European Commission (EC). This financial information has been prepared on the same basis as in 2009 with the exception of the adoption of IFRS 8 "Operating Segments" and IAS 1 (2007) Revised. The adoption of these standards has not led to any changes to the financial performance or position of the Group.
Whilst the financial information included in this announcement has been computed in accordance with IFRSs, this announcement does not itself contain sufficient information to comply with IFRSs.
The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 March 2010 or 2009, but is derived from those accounts. Statutory accounts for the year ended 31 March 2009 have been delivered to the Registrar of Companies and those for the year to 31 March 2010 will be delivered following the Company's annual general meeting. The auditors have reported on those accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain statements under section 498(2) or (3) Companies Act 2006 or equivalent preceding legislation.
A copy of the annual report for the year ended 31 March 2010 will be available at www.caffynsplc.co.uk and will be posted to shareholders by 2 July 2010.
3. GOING CONCERN
The financial statements have been prepared on a going concern basis which the directors consider appropriate for the reasons set out below.
The Group meets its day to day working capital requirements through short-term stocking loans and bank overdraft and medium-term revolving credit facilities. The overdraft and revolving credit facilities were renegotiated in the financial year ended 31 March 2010 and include certain covenant tests. The failure of a covenant test would render these facilities repayable on demand at the option of the lenders.
The directors have undertaken a detailed review of trading and cash flow forecasts for a period in excess of one year from the date of this annual report which projects that the facility limits are not exceeded over the duration of the forecasts. These forecasts have made assumptions in respect of future trading conditions, particularly volumes and margins of new and used car sales, aftersales and operational improvements. The forecasts take into account these factors to an extent which the directors consider to be reasonable, based on the information that is available to them at the time of approval of this financial information. These forecasts indicate that the Group will be able to operate within the financing facilities that are available to it and meet the covenant tests with sufficient margin for reasonable adverse movements in expected trading conditions.
The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For those reasons, they continue to adopt the going concern basis in preparing the annual financial statements.
4. CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
Except as described below, in preparing the condensed consolidated financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 March 2009.
5. NON-UNDERLYING ITEMS
|
| 2010 |
| 2009 | |
|
| £'000 |
| £'000 | |
| Within operating expenses: |
|
|
| |
|
|
|
|
| |
| Impairment of property, plant and equipment: reversal/(charge) | 359 |
| (660) | |
|
|
|
|
| |
| Net (loss)/profit on disposal of property, plant and equipment | (41) |
| 428 | |
|
|
|
|
| |
| Goodwill impairment | - |
| (195) | |
|
|
|
|
| |
| Losses incurred on closed businesses | (51) |
| (754) | |
|
|
|
|
| |
| Inventory write down | - |
| (496) | |
|
|
|
|
| |
| Redundancy costs | (149) |
| (455) | |
|
|
|
|
| |
|
|
|
|
| |
| Total non-underlying items before taxation | 118 |
| (2,132) | |
|
|
|
|
| |
| Income tax expense | - Deferred tax in respect of withdrawal of Industrial Buildings Allowances | - |
| (527) |
|
|
|
|
| |
|
| - Tax credit/(charge) on non-underlying items | (34) |
| 412 |
|
|
|
|
| |
|
|
|
|
| |
|
| (34) |
| (115) | |
|
|
|
|
| |
|
|
|
|
| |
| Total after tax | 84 |
| (2,247) | |
|
|
|
|
| |
The following amounts have been presented as non-underlying items in these financial statements:
Property, plant and equipment have been reviewed for possible impairment in the light of economic conditions, in particular the changes in commercial property prices. As a result of this review, the impairment charge of £660,000 recognised in 2009 against property, plant and equipment has been reduced and, consequently, a reversal amounting to £359,000 has been made in freehold property.
Losses incurred in the closure of businesses amounted to £51,000 (2009 - £754,000). These costs include wind down expenses and branch specific redundancy costs. Losses of branches up to the date of closure included in operating results before non-underlying items were £6,000 (2009 - £437,000).
The Group undertook a programme of redundancies in its core business consequent to the current economic situation, resulting in non-underlying payments of £149,000 (2009 - £455,000).
6. FINANCE EXPENSE
|
| 2010 |
| 2009 |
|
| £'000 |
| £'000 |
|
|
|
|
|
|
|
|
|
|
| Interest payable on bank borrowings | 402 |
| 746 |
|
|
|
|
|
| Vehicle stocking plan interest | 223 |
| 322 |
|
|
|
|
|
| Interest payable on finance leases | 2 |
| 7 |
|
|
|
|
|
| Finance costs amortised | 144 |
| - |
|
|
|
|
|
| Defined benefit pension scheme net finance expense | 427 |
| - |
|
|
|
|
|
| Preference dividends | 102 |
| 102 |
|
|
|
|
|
|
|
|
|
|
| Finance expense | 1,300 |
| 1,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7. FINANCE INCOME
|
| 2010 |
| 2009 |
|
| £'000 |
| £'000 |
|
|
|
|
|
| Defined benefit pension scheme net finance income | - |
| 301 |
|
|
|
|
|
| Interest receivable | - |
| 13 |
|
|
|
|
|
|
|
|
|
|
|
| - |
| 314 |
|
|
|
|
|
8. TAXATION
|
| 2010 |
| 2009 | |
|
| £'000 |
| £'000 | |
| Current tax |
|
|
| |
|
|
|
|
| |
|
| UK corporation tax | 8 |
| (650) |
|
|
|
|
| |
|
| Advance corporation tax recovered | - |
| 253 |
|
|
|
|
| |
|
|
|
|
| |
|
| Total | 8 |
| (397) |
|
|
|
|
| |
|
|
|
|
| |
| Deferred tax |
|
|
| |
|
|
|
|
| |
|
| Origination and reversal of temporary differences | 165 |
| (581) |
|
|
|
|
| |
|
| Adjustments recognised in the period for deferred tax of prior periods | (310) |
| - |
|
|
|
|
| |
|
|
|
|
| |
|
| Total | (145) |
| (581) |
|
|
|
|
| |
|
| Non- underlying - adjustment due to abolition of Industrial Buildings Allowances | - |
| 527 |
|
|
|
|
| |
|
|
|
|
| |
|
| Total | (145) |
| (54) |
|
|
|
|
| |
|
|
|
|
| |
|
| Total tax credited in the Income Statement | (137) |
| (451) |
|
|
|
|
| |
|
|
|
|
| |
|
| The tax credit arises as follows: |
|
|
|
|
|
|
|
| |
|
| On normal trading | (171) |
| (566) |
|
|
|
|
| |
|
| Non-underlying (see note 5) | 34 |
| 115 |
|
|
|
|
| |
|
|
|
|
| |
|
| (137) |
| (451) | |
|
|
|
|
| |
|
| The credit for the year can be reconciled to the profit/(loss) per the income statement as follows: | 2010 £'000 |
| 2009 £'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit/(loss) before tax | 970 |
| (4,420) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax at the UK corporation tax rate of 28% (2009 - 30%) | 272 |
| (1,238) |
|
|
|
|
|
|
|
| Tax effect of expenses that are not deductible in determining taxable profit | 45 |
| 31 |
|
|
|
|
|
|
|
| Marginal rate relief | (10) |
| - |
|
|
|
|
|
|
|
| Accounting depreciation for which no tax relief is due | 57 |
| 44 |
|
|
|
|
|
|
|
| Long term incentive plan | (18) |
| - |
|
|
|
|
|
|
|
| Movement in rolled over and held over gains | (72) |
| - |
|
|
|
|
|
|
|
| Asset impairment (credit)/charge | (101) |
| 185 |
|
|
|
|
|
|
|
| Adjustment due to abolition of Industrial Buildings Allowances | - |
| 527 |
|
|
|
|
|
|
|
| Adjustments to tax charge in respect of prior years | (310) |
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax credit for the year | (137) |
| (451) |
|
|
|
|
|
|
9. 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 year. Treasury shares and shares held in employee share trusts are treated as cancelled for the purposes of this calculation.
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 dividends and/or interest, on the assumed conversion of all dilutive options and other dilutive potential ordinary shares. At both year ends there were no unissued shares, so the diluted earnings per share are the same as the basic earnings per share.
Reconciliations of earnings and weighted average number of shares used in the calculations are set out below: | |||||||
|
| |||||||
|
| Adjusted |
| Basic | ||||
|
| 2010 £'000 |
| 2009 £'000 | 2010 £'000 |
| 2009 £'000 | |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| ||
| Profit/(loss) before tax | 970 |
| (4,420) | 970 | (4,420) | ||
|
|
|
|
|
|
| ||
| Adjustments: |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
| Non-underlying items (note 5) | (118) |
| 2,132 | - | - | ||
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
| Adjusted (loss)/profit before tax | 852 |
| (2,288) | 970 | (4,420) | ||
|
|
|
|
|
|
| ||
| Taxation | 171 |
| 566 | 137 | 451 | ||
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
| Earnings | 1,023 |
| (1,722) | 1,107 | (3,969) | ||
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
| Adjusted earnings per share | 35.7p |
| (59.8p) |
|
| ||
|
|
|
|
|
|
| ||
| Basic earnings per share |
|
|
| 38.6p |
| (137.8p) | |
|
|
|
|
|
|
|
| |
|
| |||||||
| The number of fully paid ordinary shares in issue at the year end was 2,849,716 (2009 - 2,879,298). The weighted average shares in issue for the purposes of the earnings per share calculation was 2,866,751 (2009 - 2,879,298). The shares awarded under the long term incentive plan are not dilutive under the terms of IAS 33, therefore basic and diluted earnings per share are the same. | |||||||
10. DIVIDENDS
The directors propose a final dividend of 5.0p (2009 - 2.0p) per ordinary share, to be paid on 29 July 2010 to shareholders on the register at 25 June 2010. An interim dividend of 5.0p (2009 - 2.0p) per share was paid during the year, making a total for the year of 10.0p (2009 - 4.0p). The ex-dividend date is 23 June 2010.
11. NOTES TO THE CASH FLOW STATEMENT
|
| 2010 £'000 |
| 2009 £'000 |
|
|
|
|
|
| Profit/(loss) before taxation | 970 |
| (4,420) |
|
|
|
|
|
| Adjustment for net finance expense | 1,300 |
| 863 |
|
|
|
|
|
|
|
|
|
|
|
| 2,270 |
| (3,557) |
|
|
|
|
|
| Adjustments for: |
|
|
|
|
|
|
|
|
| Depreciation of property, plant and equipment | 1,230 |
| 1,419 |
|
|
|
|
|
| Amortisation of intangible assets | - |
| 9 |
|
|
|
|
|
| Impairment of property, plant and equipment | (359) |
| 660 |
|
|
|
|
|
| Goodwill impairment | - |
| 195 |
|
|
|
|
|
| Change in retirement benefit obligations | (383) |
| (122) |
|
|
|
|
|
| Loss/(gain) on disposal of property, plant and equipment | 14 |
| (428) |
|
|
|
|
|
| Share based payments | 65 |
| - |
|
|
|
|
|
| Decrease in provisions | - |
| (27) |
|
|
|
|
|
|
|
|
|
|
| Operating cash flows before movements in working capital | 2,837 |
| (1,851) |
|
|
|
|
|
| (Increase)/decrease in inventories | (2,937) |
| 8,143 |
|
|
|
|
|
| (Increase)/decrease in receivables | (2,179) |
| 2,315 |
|
|
|
|
|
| Increase/(decrease) in payables | 3,296 |
| (902) |
|
|
|
|
|
|
|
|
|
|
| Cash generated by operations | 1,017 |
| 7,705 |
|
|
|
|
|
| Income taxes | - |
| (42) |
|
|
|
|
|
| Interest received | - |
| 13 |
|
|
|
|
|
| Interest paid | (873) |
| (1,177) |
|
|
|
|
|
|
|
|
|
|
| Net cash from operating activities | 144 |
| 6,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|