Caffyns Regulatory News (CFYN)

24 Nov 2006 08:00

Caffyns PLC24 November 2006 INTERIM RESULTS for the half year ended 30 September 2006 Caffyns plc, the leading motor distributor covering fifteen car franchises inthe south-east of England, announces its interim results for the half year ended30 September 2006. 2006 2005 £'000 £'000 Turnover 85,484 81,503 Operating profit before exceptional items 1,213 1,188 Underlying profit before tax 643 637 Exceptional items 186 285 Profit before tax 829 922 Earnings per share 19.6p 22.3p Underlying earnings per share 15.0p 15.4p Interim dividend per share 8.0p 8.0p Commenting on the results the Chairman, Brian Carte, said: "The physical restructuring of the properties affected by MG Rover is nowcomplete and we can enjoy our first six month period free from the disruption ofrefranchising programmes. We are still some way from delivering the fullpotential of our new franchises but can now concentrate on doing so withoutdistraction, which should lead to an improved trading performance for the year". Enquiries: Simon Caffyn Chief ExecutiveMark Harrison Finance DirectorTel: 01323 730201 CHAIRMAN'S STATEMENT RESULTS In the six months to September 2006 turnover has increased from £81.5 million to£85.5 million. Profit before tax and exceptional items are in line with lastyear at £643,000 against £637,000 but after exceptional items the profit beforetax is £829,000 against £922,000 last year after exceptionals of £285,000. REFRANCHISING In September we opened our new Audi Centre in Worthing which marked the end ofthe physical restructuring of the Company following the collapse of MG Rover.Our retained former MG Rover dealerships are now refranchised and we areconcentrating on rebuilding business at these sites. Although many are alreadycontributing positively, to fully develop the potential of these dealerships cantake up to three years. ACQUISITIONS In August 2006 we acquired the Volvo business for Brighton which borders ontoour Volvo business in Eastbourne, giving us significant benefits derived fromadjoining markets. PROPERTY Planning issues have continued to delay the sale of our properties in Hythe andHove. As announced in October we have remarketed our site in Hove followingplanning refusal on a conditional sale and have received substantial newinterest. The property in Hythe is sold, subject to planning, which is likely to begranted before the end of the year. DEVELOPMENTS SINCE THE PERIOD END Since the end of the half year we decided to close our bodyshop in Worthing, ourwholesale parts business in Hove and our Vauxhall dealership in East Grinstead.The sites in Worthing and East Grinstead will be sold. The parts business has been transferred to our wholesale operation in Hailshamand the Vauxhall business to our dealerships in Tunbridge Wells and Brighton.This additional business will have a beneficial effect at these sites. The proceeds from the sale of the freeholds in East Grinstead and Worthing willbe used to reduce borrowings. THE FUTURE The physical restructuring of the properties affected by the MG Rover collapseis now complete and we can enjoy our first six month period free from thedisruption of refranchising programmes. We are still some way from deliveringthe full potential of our new franchises but can now concentrate on doing sowithout distraction, which should lead to an improved trading performance forthe year. Your Directors have agreed to an unchanged interim dividend of 8.0p per ordinaryshare. This will be paid on 10 January 2007 to shareholders on the register at5.00pm on 8 December 2006. Brian A CarteChairman 24 November 2006 CONSOLIDATED INCOME STATEMENTfor the half year ended 30 September 2006 Note Half year to Half year to Year to 30 September 30 September 31 March 2006 2006 2005 £'000 £'000 £'000 £'000 £'000 £'000 ------ ------ ------ ------ ------ ------ Revenue 85,484 81,503 160,076 ------ ------ ------ ------ ------ ------ Operating profit Before exceptionalitems 1,213 1,188 1,172 Exceptional items 2 186 285 972 ------ ------ ------ ------ ------ ------ Total operatingprofit 1,399 1,473 2,144 Finance costs (570) (551) (1,114) ------ ------ ------ ------ ------ ------ Profit before tax From normaltrading operations 643 637 58 Arising fromexceptional items 2 186 285 972 ------ ------ ------ ------ ------ ------ 829 922 1,030 ------ ------ ------ ------ ------ ------ Tax On normal tradingoperations (211) (194) 20 On exceptionalitems (54) (85) (294) ------ ------ ------ ------ ------ ------ 3 (265) (279) (274) ------ ------ ------ ------ ------ ------ Profit for theperiod 564 643 756 ------ ------ ------ ------ ------ ------ Earnings per share 4 19.6p 22.3p 26.3p ------ ------ ------ ------ ------ ------ Dividend perordinary share 5 8.0p 8.0p 24.0p ------ ------ ------ ------ ------ ------ CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSEfor the half year ended 30 September 2006 Half year to Half year to Year to 30 September 30 September 31 March 2006 2006 2005 £'000 £'000 £'000 ----------- ----------- ----------- Profit for the period 564 643 756 Actuarial(losses)/gainsrecognised in definedbenefit pensionscheme (2,690) (1,058) 108 Deferred tax onactuarial(losses)/gains 807 317 (31) ----------- ----------- ----------- Total recognisedincome and expensefor the period (1,319) (98) 833 ----------- ----------- ----------- CONSOLIDATED BALANCE SHEETat 30 September 2006 Note 30 September 30 September 31 March 2006 2005 2006 £'000 £'000 £'000 --------- --------- --------- Non-current assets Goodwill 481 481 481Intangible assets 43 65 54Property, plant and equipment 31,549 32,243 31,203Deferred tax asset 2,668 2,222 1,939 --------- --------- --------- 34,741 35,011 33,677 --------- --------- --------- Current assets Inventories 23,965 22,880 22,694Trade and other receivables 8,999 8,311 8,897Current tax assets - - 186Cash and cash equivalents 62 45 39 --------- --------- --------- 33,026 31,236 31,816 --------- --------- --------- Non-current assets held forsale 1,645 - - --------- --------- --------- Total assets 69,412 66,247 65,493 --------- --------- --------- Current liabilities Bank overdrafts and loans 11,309 10,582 7,981Trade and other payables 20,814 18,814 21,057Tax liabilities 159 85 -Obligations under financeleases 29 34 28Short-term provisions 276 423 341 --------- --------- --------- 32,587 29,938 29,407 --------- --------- --------- Net current assets 2,084 1,298 2,409 --------- --------- --------- Non-current liabilities Bank loans 3,000 3,000 3,000Preference shares 1,237 1,237 1,237Retirement benefit obligation 5,725 4,381 3,190Deferred tax liabilities 2,139 1,858 2,140Obligations under financeleases 63 93 78 --------- --------- --------- 12,164 10,569 9,645 --------- --------- --------- Total liabilities 44,751 40,507 39,052 --------- --------- --------- Net assets 24,661 25,740 26,441 --------- --------- --------- EQUITY Share capital 1,439 1,439 1,439Share premium account 272 272 272Capital redemption reserve 282 282 282Revaluation reserve 3,961 4,698 3,971Retained earnings 6 18,707 19,049 20,477 --------- --------- --------- Total equity attributable toshareholders of Caffyns plc 24,661 25,740 26,441 --------- --------- --------- CONSOLIDATED CASH FLOW STATEMENTfor the half year ended 30 September 2006 Half year ended Half year ended Year ended 30 September 30 September 31 March 2006 2006 2005 £'000 £'000 £'000 ----------- ----------- ----------- Cash flows from operatingactivies Profit from operations 1,399 1,473 2,144 Non-cash adjustments 514 280 164 ----------- ----------- ----------- Operating cash flowsbefore movements inworking capital 1,913 1,753 2,308 Movements in workingcapital (3,047) (2,252) 1,019 ----------- ----------- ----------- Cash(absorbed)/generatedby operations (1,134) (499) 3,327 Net interest (570) (551) (1,114) Income taxesreceived/(paid) 158 - (50) ----------- ----------- ----------- Net cash (usedin)/from operatingactivities (1,546) (1,050) 2,163 ----------- ----------- ----------- Investing activities Proceeds on disposalof property, plant andequipment 1,476 783 1,959 Purchases of property,plant and equipment (2,584) (1,967) (3,510) Acquisition of business (176) - - ----------- ----------- ----------- Net cash used ininvesting activities (1,284) (1,184) (1,551) ----------- ----------- ----------- Financing activities Dividends paid (461) (461) (691) Repayments ofobligations underfinance leases (14) (20) (41) ----------- ----------- ----------- Net cash used infinancing activities (475) (481) (732) ----------- ----------- ----------- Net decrease in cashand cash equivalents (3,305) (2,715) (120) Cash and cashequivalents atbeginning of period (7,942) (7,822) (7,822) ----------- ----------- ----------- Cash and cashequivalents at end ofperiod (11,247) (10,537) (7,942) ----------- ----------- ----------- NOTES TO THE INTERIM RESULTSfor the half-year ended 30 September 2006 1. BASIS OF PREPARATION The interim financial statements for the half year to 30 June 2006 are unauditedand have been prepared under International Financial Reporting Standards (IFRS)in accordance with the accounting policies set out in the Annual Report for2006. The figures for the year ended 31 March 2006 have been extracted from thestatutory accounts, filed with the Registrar of Companies on which the auditorsgave an unqualified opinion. These interim financial statements have beenreviewed by the Company's auditors. A copy of their review report is set out atthe end of these statements. These interim statements comply with IAS 34 'Interim Financial Reporting' andwere approved by the Directors on 24 November 2006. The directors approved thisinterim statement on 24 November 2006. 2. EXCEPTIONAL ITEMS Half year to Half year to Year to 30 September 30 September 31 March 2006 2005 2006 £'000 £'000 £'000 Net profit on disposal of property,plant and equipment - 155 858 Reverse goodwill received onacquisition (net of costs) 186 - - Credit associated with failure of MGRover Group - 319 317 Other restructuring costs - (189) (203) ---------- ---------- ---------- Total before tax 186 285 972 Less: tax thereon (54) (85) (294) ---------- ---------- ---------- 132 200 678 ---------- ---------- ---------- 3. TAXATION Half year to Half year to Year to 30 September 30 September 31 March 2006 2005 2006 £'000 £'000 £'000 Current UK corporation tax at 30% Charge for the period 219 245 22 Advance corporation tax recovered (31) (31) - Over-provision in respect of prioryears - (5) (26) ---------- ---------- ---------- Total corporation tax 188 209 (4) Deferred tax at 30% Origination and reversal of timingdifferences 77 70 278 ---------- ---------- ---------- 265 279 274 ---------- ---------- ---------- Taxation for the half year has been provided at the effective rate of taxationexpected to apply to the whole year on ordinary trading. Tax on exceptionalitems is provided at the actual rate applicable. 4. EARNINGS PER SHARE Half year to Half year to Year to 30 September 30 September 31 MarchBasic 2006 2005 2006 £'000 £'000 £'000 Profit before tax 829 922 1,030 Taxation (265) (279) (274) ---------- ---------- ---------- Earnings 564 643 756 ---------- ---------- ---------- Earnings per share 19.6p 22.3p 26.3p ---------- ---------- ---------- Half year to Half year to Year to 30 September 30 September 31 MarchUnderlying 2006 2005 2006 £'000 £'000 £'000 Profit before tax 829 922 1,030 Adjustments: Exceptional items (Note2) (186) (285) (972) ---------- ---------- ---------- Underlying profit before tax 643 637 58 Taxation (211) (194) 20 ---------- ---------- ---------- Underlying earnings 432 443 78 ---------- ---------- ---------- Earnings per share 15.0p 15.4p 2.7p ---------- ---------- ---------- The number of ordinary shares in issue during each period was 2,879,298. 5. DIVIDENDS Ordinary shares of 50p each The interim dividend proposed at the rate of 8.0p per share (2005: 8.0p) ispayable on 10 January 2007 to shareholders on the register at the close ofbusiness on 8 December 2006. The shares will be marked ex-dividend on 6 December2006. Preference shares Preference dividends have been paid in October 2006. The next preferencedividends are payable in April 2007. The cost of the preference dividends hasbeen included within finance costs. 6. RETAINED EARNINGS Half year to Half year to Year to 30 September 30 September 31 March 2006 2005 2006 £'000 £'000 £'000 At the beginning of period 20,477 19,469 19,469 Total recognised income and expensefor the period (1,319) (98) 833 Transfer from revaluation reserve 10 139 866 Dividends paid (461) (461) (691) ---------- ---------- ---------- At end of period 18,707 19,049 20,477 ---------- ---------- ---------- INDEPENDENT REVIEW REPORTto Caffyns plc INTRODUCTION We have been instructed by the company to review the financial information forthe six months ended 30 September 2006 which comprises the consolidated interimbalance sheet at 30 September 2006, the consolidated profit and loss account,the consolidated cashflow statement, the statement of recognised income andexpense for the six months then ended and the related notes 1 to 6. We have readthe other information contained in the interim report which comprises only thechairman's statement and considered whether it contains any apparentmisstatements or material inconsistencies with the financial information. Ourresponsibilities do not extend to any other information. This report is made solely to the company in accordance with guidance containedin APB Bulletin 1999/4 "Review of Interim Financial Information". Our reviewwork has been undertaken so that we might state to the company those matters weare required to state to them in a review report and for no other purpose. Tothe fullest extent permitted by law, we do not accept or assume responsibilityto anyone other than the company for our review work, for this report, or forthe conclusion we have formed. DIRECTORS' RESPONSIBILITIES The interim report including the financial information contained therein is theresponsibility of, and has been approved by, the directors. The Listing Rules ofthe Financial Services Authority require. They are responsible for preparing theinterim report and ensuring that the accounting policies and presentationapplied to the interim figures should be consistent with those applied inpreparing the preceding annual accounts except where any changes, and thereasons for them, are disclosed. REVIEW WORK PERFORMED We conducted our review in accordance with guidance contained in Bulletin 1999/4"Review of Interim Financial Information" issued by the Auditing Practices Boardfor use in the United Kingdom. A review consists principally of making enquiriesof management and applying analytical procedures to the financial informationand underlying financial data and, based thereon, assessing whether theaccounting policies and presentation have been consistently applied unlessotherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance withInternational Standards of Auditing (UK & Ireland) and therefore provides alower level of assurance than an audit. Accordingly, we do not express an auditopinion on the financial information. REVIEW CONCLUSION On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 September 2006. Grant Thornton UK LLPChartered AccountantsLondon24 November 2006 This information is provided by RNS The company news service from the London Stock Exchange