Last checked at 28 Jul 2016 07:00
Leeds Group plc
("Leeds Group" or the "Group")
Financial Highlights
q Leeds Group profit before tax was £1,507,000 (2015: £1,571,000).
q Aggregate sales volumes of our two business sectors increased to 16.0 million metres (2015: 15.8 million metres).
q Leeds Group sales revenue increased by 4.1% to £36,272,000 (2015: £34,859,000).
q Hemmers sales were £32,775,000 (2015: £31,151,000) and pre-tax profit was £1,309,000 (2015: £1,443,000).
q Hemmers results in Euros were: sales up 8.7% to €44,295,000 (2015: €40,735,000). PBT was affected by the bankruptcy of a major customer late in the year and was down 8.9% to €1,705,000 (2015: €1,871,000).
q ChinohTex external sales were £3,497,000 (2015: £3,708,000) and pre-tax profit was £267,000 (2015: £305,000).
q In the first full year since the acquisition of a 50% interest in textile retailer Stoff-Ideen-KMR GmbH, the Leeds Group share of post-tax profit was £51,000.
q Capital expenditure in the year was £4,156,000 (2015: £298,000) principally on the acquisition and extension of the German warehouse and office facility.
q Leeds Group finished the year with bank debt, net of cash, of £2,646,000 (2015: net cash £596,000).
q Leeds Group net asset value per share (excluding treasury shares) was 56.5 pence (2015: 50.2 pence).
q Earnings per Leeds Group share were 3.8 pence (2015: 3.8 p).
q In view of the capital expenditure in the year and the continuing need to finance growth plans, as last year the Directors do not propose a dividend.
Enquiries: |
|
Leeds Group plc | Cairn Financial Advisers LLP |
Jan Holmstrom, Chairman Tel: 0046 708 111 360 | Tony Rawlinson Tel: 020 7148 7900 |
Malcolm Wilson, Company Secretary Tel: 07801224618 | Liam Murray Tel: 020 7148 7900 |
Chairman's Statement
I am pleased to present the results for the year ended 31 May 2016.
Results
In the year ended 31 May 2016 Leeds Group made a profit after tax of £1,039,000 (2015: £1,053,000). Pre-tax profit fell by 4.1% to £1,507,000 (2015: £1,571,000), and was affected close to the year-end by the bankruptcy of a major German customer which was partially offset by credit insurance. Despite this setback, pre-tax profit finished slightly ahead of our budget for the year and close to last year's level.
Net assets at 31 May 2016 increased to £15,512,000 (2015: £13,822,000) and the value per share was 56.5p (2015: 50.2p). Earnings per share for the year were 3.8p (2015: 3.8p). Following capital expenditure of £4,156,000 in the year (2015: £298,000), chiefly on the acquisition and extension of the German warehouse and office facility, the Group closed the year with net bank debt of £2,646,000 (2015: net cash £596,000).
Hemmers-Itex Textil Import Export GmbH ("Hemmers")
Total fabric sales in the year by Hemmers, Leeds Group's principal trading company, increased modestly by 1.0% to 13.789 million linear metres (2015: 13.633 million). Revenue in Euro terms increased by 8.8%, reflecting the sales price increases that were necessary to preserve margins in the face of the depreciation of the Euro against the US dollar. Pre-tax profit in Euro terms was €1,705,000 (2015: €1,871,000) and was affected by the bankruptcy of a significant customer referred to above.
In sterling terms, revenue was £32,775,000 (2015: £31,151,000) and pre-tax profit was £1,309,000 (2015: £1,443,000).
During the year Hemmers invested heavily in purchasing and extending the warehouse and office facility in Nordhorn at a cost to date of approximately €5,000,000 (£3,700,000). The entire project comprising warehousing, office space and an enlarged sales area is very close to completion.
In December 2014 Hemmers acquired a 50% interest in Stoff-Ideen-KMR GmbH ("KMR"), a chain of 14 retail fabric and haberdashery stores. KMR has now relocated to the Hemmers facility and now rents a portion of the new warehouse extension, enabling both businesses to improve inventory management. In this, the first full year of our investment in KMR, the business has continued to source a significant proportion of its stock purchases from Hemmers, and has grown with the opening of two new stores in Saarbrücken and Bamberg, with further new stores planned to open in the next few months.
Chinoh-Tex, the Hemmers subsidiary based in Shanghai, achieved external sales revenue of £3,497,000 (2015: £3,708,000) and pre-tax profit of £267,000 (2015: £305,000). Some European customers previously dealing with Chinoh-Tex bought from Hemmers this year, but Chinoh-Tex maintained its sales volume by developing sales in China and other far eastern markets. Though small, ChinohTex continues to provide valuable assistance to its European parent in terms of purchasing, quality inspection and bulk shipping of material bought in China.
Dividend
Leeds Group has made a significant investment in KMR, and in the purchase and expansion of the Nordhorn facility, where a further £1,000,000 is committed to complete the project in the current financial year. Therefore, as last year, the Directors do not propose a dividend. In the opinion of the Board, this maximises the long-term value of the Group to the benefit of all shareholders.
Employees
On behalf of shareholders, I thank the management and staff of Hemmers and ChinohTex for their continued hard work and commitment that has produced such a highly satisfactory result.
Outlook
We continue to believe potential growth opportunities exist for Hemmers in their traditional wholesale business, and that even greater potential exists in the retail business in which we have invested more recently. We continue to monitor possibilities to accelerate this growth potential by way of acquisition.
At this early point in the current financial year, sales have been in line with the expectations of the Board.
Jan G Holmstrom
Chairman
27 July 2016
Strategic Report
Business review
The Companies Act 2006 requires the directors to set out in this report a fair review of the business of the Group during the year ended 31 May 2016, including an analysis of the position of the Group at the end of the year and a description of the principal risks and uncertainties facing the Group. This information includes a discussion of the Key Performance Indicators used by the directors to monitor the business which are:
· Sales volumes and revenue | · profit before tax |
· gross profit margin | · earnings per share |
· operating overheads and central costs | · working capital levels |
Group result
Group revenue in the year was £36,272,000 (2015: £34,859,000), and pre-tax profit was £1,507,000 (2015: £1,571,000). Although sterling at 31 May 2016 was 6.2% weaker against the Euro than had been the case a year earlier, its average rate for the year as a whole was stronger by 3.6%. Group revenue and pre-tax profit would have been greater by £871,000 and £43,000 respectively had the results of overseas subsidiaries been translated at last year's average rates.
Profitability in Hemmers was adversely affected by the bankruptcy late in the year of a major customer, which was covered in part by credit insurance.
The average value of the Euro throughout the year was USD 1.105 (2015: USD 1.351). A weaker Euro increases the Euro cost of stock invoiced in US Dollars but this transaction effect was not significant; margins were close to their 2015 level by the combined effects of the stockholding period, forward exchange contracts and sales price increases.
The parent company has granted a loan denominated in Euros to its subsidiary Hemmers and, as sterling depreciated sharply at the end of the financial year, an unrealised gain arose of £100,000 (2015: unrealised loss £253,000).
The tax charge in the year was £468,000 net of a deferred tax credit of £28,000 relating to temporary differences on financial derivatives. Earnings per share were unchanged from 2015 at 3.8p.
Hemmers Europe
This German-based business is engaged in the import, warehousing and wholesaling of fabrics.
Sales volumes increased in the year by 1% to 13.789 million linear metres (2015: 13.633 million) while sales revenue rose by 8.8% to €44,309,000 (2015: €40,735,000), with the growth achieved predominantly in the German home market.
As mentioned above, despite the weakness of the Euro gross margins were little changed at 21.5% (2015: 22.2%). Overhead expenditure in local currency (excluding the charge for bad and doubtful debts) increased by 6.5% as a result of the modest sales volume increases and cost inflation.
Pre-tax profit for the year was €1,705,000 (2015: €1,871,000) with the profitability from continued sales growth proving insufficient to compensate for the need to provide against receivables due from a large customer entering bankruptcy. Administrators have been appointed and are seeking to achieve asset sales and a financial reconstruction but a conservative 100% provision was considered appropriate.
In December 2014 Hemmers acquired a 50% interest in Stoff-Ideen-KMR GmbH ("KMR"), a chain of retail fabric and haberdashery stores, at a cost of €500,000 (£383,000). KMR is operated as a joint venture and in May 2015 each of the two joint venture partners subscribed for additional capital of €250,000 (£192,000) bringing the total investment by Hemmers to €750,000 (£575,000). The Group's share of the post-tax income of KMR in the year was £51,000 (5 months to 31 May 2015: £13,000).
During the year Hemmers purchased the warehouse and offices it had leased for the previous ten years for €2,700,000. Having already constructed a freehold extension in 2008, construction of a further extension to provide additional warehousing and office space was begun in the year at budgeted cost of €3,000,000 (£2,300,000). We had planned to complete this project by 31 May 2016, but building work was suspended for a while in the autumn owing to excessively wet conditions. At the date of this report, full occupation of warehouse and offices is imminent. Part of the extension will be leased to KMR, and neither KMR nor Hemmers will now need to continue to rent warehousing outside the Nordhorn facility.
The final phase of the warehouse extension will increase the total size of the facility to approximately 17,000 square metres and will be completed early in the current year with the purchase and installation of additional machinery to increase our capacity to meet the customer requirement to double-fold our fabrics before sale. This will eliminate the need to outsource this work and so reduce cost.
Largely as a result of this investment programme, the Hemmers bank debt, net of cash, increased in the year to £3,647,000 (2015: £1,077,000). This bank debt is secured on the assets of Hemmers.
Hemmers China
Chinoh-Tex is a textile trading subsidiary of Hemmers. It is based in Shanghai and has been trading for eight years. It purchases fabric from Chinese suppliers and in 2016 sold to customers in 31 countries. External sales increased marginally in the year to 2.202 million linear metres (2015: 2.191 million). 40% of sales were made to EU countries (2015: 60%) with the reduction caused chiefly by certain European customers being supplied from Hemmers rather than from Chinoh-Tex, who compensated for this by increasing sales in China to £597,000 (2015: £103,000) with significant growth also in Viet Nam.
External sales revenue fell by 5.7% to £3,497,000 (2015: £3,708,000) reflecting the changes to product and market mix, and gross margin fell slightly to 21.5% (2015: 22.0%). Overhead spending was reduced by 5.5% to £484,000 (2015: £512,000) and pre-tax profit amounted to £267,000 (2015: £305,000).
Importantly, ChinohTex continues to give valuable assistance to its European parent with the purchasing, inspection and shipping of material.
Holding Companies' Costs
The holding companies generated net income in the year as follows:
| Year ended 31 May 2016 £000 | Year ended 31 May 2015 £000 |
|
|
|
Holding companies' costs net of interest receivable | (73) | (42) |
Unrealised exchange gain/(loss) on Group loan | 100 | (253) |
|
|
|
Net holding companies' income/(costs) | 27 | (295) |
The voluntary liquidation of the CLG Holding BV, the Dutch holding company, was completed in the year.
Fixed Assets
Capital additions in the year amounted to £4,156,000 (2015: 298,000) and included expenditure of £3,697,000 in respect of the purchase and extension of the warehouse and office facility in Nordhorn. The net book amount of tangible fixed assets in the Consolidated Statement of Financial Position is £5,864,000 (2015: £1,760,000). A further £1,000,000 has been authorised and committed to complete the Nordhorn project in the current year.
Working Capital
Working capital comprises inventories, trade and other receivables, and trade and other payables and increased in the year by just £127,000 (2015: £555,000). The directors anticipate that working capital will now rise to its annual peak over the next few months.
Net Asset Value
Net assets increased in the year by £1,690,000 as follows:
| Net assets £000 | Per share pence |
|
|
|
At 31 May 2015 | 13,822 | 50.2 |
Profit after tax | 1,039 | 3.8 |
Purchase of own shares for treasury (cost) | (42) | (0.2) |
Purchase of own shares for treasury (reduced denominator) | - | 0.2 |
Translation differences | 693 | 2.5 |
|
|
|
At 31 May 2016 | 15,512 | 56.5 |
Debt Profile
The funding policy of the Group continues to be to match its funding requirement in trading subsidiaries in a cost-effective fashion with an appropriate combination of short and longer-term debt. The warehouse constructed in 2008 in Germany is financed by a 20-year loan at a fixed interest rate of 4.07%. Property investments in the year have been financed partly from cash generated in the year, but principally from loans at fixed interest rates between 1.65% and 3.4%. Working capital finance, when required, is via short term loans of three months currently attracting interest at approximately 1.4%.
Bank debt in the subsidiaries is secured by charges on inventories, receivables and property and is without recourse to the Parent Company.
Principal risks and uncertainties
Following the UK referendum result in favour of leaving the European Union ("EU"), the economic environment has become much more uncertain. However, the business of Leeds Group is conducted entirely by subsidiaries incorporated in Germany or China, and their exports to the UK account for approximately 4% of Group revenue. For this reason, the Directors do not believe that a material risk to Leeds Group will arise from the terms on which the UK will, in the future, have access to EU markets, and vice versa.
Of greater risk is the possibility of reduced demand owing to falling consumer confidence, although the business has proved robust in earlier recessions with some evidence that reduced consumer spending on ready-made apparel or furnishings generates increased demand for Hemmers fabrics that customers use to make equivalent goods in the home.
The currency markets in particular dislike the current air of uncertainty, and sterling immediately lost ground on news of the referendum result. This benefits Leeds Group since, as the pound weakens, the value of the revenues, profits and net assets of foreign subsidiaries is increased in sterling terms.
Leeds Group subsidiaries purchase the majority of their fabrics in US dollars, while the Euro is the principal currency in which Hemmers Europe sells its product. Thus the Euro/dollar rate is of greater significance to Leeds Group than the strength of sterling. Since the referendum result the Euro has not depreciated against the US dollar to a material extent, and at the date of this report is actually stronger than in the winter months of the financial year just ended. We shall continue to manage this transactional currency risk by a combination of forward exchange contracts with reputable banks and sales price increases where necessary.
Fire risk is mitigated by insurance, including consequential loss insurance to cover the loss of business opportunity while replacement stocks are obtained. There is an adequate disaster recovery programme in place with regard to essential computer systems. The commercial risks of operating in the highly competitive European fabric market are limited by the fact that Hemmers has a wide range of suppliers, and no customer accounts for more than 5% of revenues. The Directors therefore consider the principal operating risks of operating in this market to be credit risk, market risk in the form of fair value or cash flow interest rate risk, or foreign exchange risk.
Jan G Holmstrom
Chairman
27 July 2016
Consolidated Statement of Comprehensive Income
for the year ended 31 May 2016
| Year ended 31 May 2016 £000 | Year ended 31 May 2015 £000 |
Revenue |
36,272 |
34,859 |
Cost of sales |
(28,563) |
(27,066) |
Gross profit |
7,709 |
7,793 |
Distribution costs |
(2,216) |
(2,316) |
Administrative expenses |
(3,949) |
(3,855) |
Profit from operations |
1,544 |
1,622 |
Finance expense |
(92) |
(71) |
Finance income |
4 |
7 |
Share of post-tax profit of joint venture |
51 |
13 |
Profit before tax |
1,507 |
1,571 |
Tax expense |
(468) |
(518) |
Profit for the year attributable to the equity holders of the Parent Company |
1,039 |
1,053 |
|
|
|
Other comprehensive income |
|
|
Translation differences on foreign operations |
693 |
(1,215) |
|
|
|
Other comprehensive income for the year | 693 | (1,215) |
|
|
|
Total comprehensive income for the year attributable to the equity holders of the Parent Company | 1,732 | (162) |
The results shown in the consolidated statement of comprehensive income derive wholly from continuing operations. There is no tax effect relating to other comprehensive income for the year.
Amounts included in other comprehensive income may be reclassified subsequently as profit or loss.
Earnings per share attributable to
the equity holders of the Company
| Note
| Year ended 31 May 2016
| Year ended 31 May 2015
|
|
|
|
|
Basic and diluted earnings per share (pence) | 3 | 3.8p | 3.8p |
Consolidated Statement of Financial Position
at 31 May 2016
Company number 00067863 | 31 May 2016 £000 | 31 May 2015 £000 |
Assets |
|
|
Non-current assets |
|
|
Property, plant and equipment | 5,864 | 1,760 |
Goodwill | 855 | 802 |
Investment in joint venture | 640 | 553 |
|
|
|
|
|
|
Total non-current assets | 7,359 | 3,115 |
|
|
|
Current assets |
|
|
Inventories | 7,765 | 7,258 |
Trade and other receivables | 5,779 | 6,000 |
Derivative financial asset | - | 59 |
Cash and cash equivalents | 1,612 | 2,027 |
|
|
|
Total current assets | 15,156 | 15,344 |
|
|
|
Total assets | 22,515 | 18,459 |
|
|
|
Liabilities |
|
|
Non-current liabilities |
|
|
Loans and borrowings | (3,843) | (665) |
Deferred tax | (230) | (244) |
|
|
|
Total non-current liabilities | (4,073) | (909) |
|
|
|
Current liabilities |
|
|
Trade and other payables | (2,283) | (2,666) |
Loans and borrowings | (415) | (766) |
Derivative financial liability | (40) | - |
Corporation tax liability | (192) | (296) |
|
|
|
Total current liabilities | (2,930) | (3,728) |
|
|
|
Total liabilities | (7,003) | (4,637) |
|
|
|
TOTAL NET ASSETS | 15,512 | 13,822 |
Capital and reserves attributable to equity holders of the Company |
|
|
Share capital | 3,792 | 3,792 |
Capital redemption reserve | 600 | 600 |
Treasury share reserve | (767) | (725) |
Foreign exchange reserve | 642 | (51) |
Retained earnings | 11,245 | 10,206 |
|
|
|
TOTAL EQUITY | 15,512 | 13,822 |
The financial statements were approved and authorised for issue by the Board of directors on 27 July 2016 and were signed on behalf of the Board by:-
Jan G Holmstrom
Chairman
Consolidated Cash Flow Statement
for the year ended 31 May 2016
| Year ended 31 May 2016 £000 | Year ended 31 May 2015 £000 |
Cash flows from operating activities |
|
|
Profit for the year | 1,039 | 1,053 |
Adjustments for: |
|
|
Depreciation | 300 | 226 |
Finance expense | 92 | 71 |
Finance income | (4) | (7) |
Movement in derivative financial asset | 99 | (63) |
Loss on sale of property, plant and equipment | 1 | 2 |
Share of post-tax profit of joint venture | (51) | (13) |
Income tax expense | 468 | 518 |
|
|
|
Cash flows from operating activities before changes in working capital and provisions |
1,944 |
1,787 |
|
|
|
Increase in inventories | (44) | (1,063) |
Decrease/(increase) in trade and other receivables | 538 | (495) |
(Decrease)/(increase) in trade and other payables | (621) | 1,003 |
|
|
|
Cash generated from operating activities | 1,817 | 1,232 |
Income taxes paid | (613) | (679) |
|
|
|
Net cash flows from operating activities | 1,204 | 553 |
|
|
|
Investing activities |
|
|
Purchase of property, plant and equipment | (4,156) | (298) |
Sale of property, plant and equipment | - | - |
Investment in joint venture | - | (575) |
Bank interest received | 4 | 7 |
|
|
|
Net cash used in investing activities | (4,152) | (866) |
|
|
|
Financing activities |
|
|
Purchase of treasury shares | (42) | (44) |
Bank borrowings drawn down | 2,640 | 717 |
Bank interest paid | (92) | (71) |
|
|
|
Net cash generated in financing activities | 2,506 | 602 |
|
|
|
Net (decrease)/increase in cash and cash equivalents | (442) | 289 |
|
|
|
Translation gain/(loss) on cash and cash equivalents | 27 | (34) |
|
|
|
Cash and cash equivalents at the beginning of the year | 2,027 | 1,772 |
|
|
|
Cash and cash equivalents at the end of the year | 1,612 | 2,027 |
Consolidated Statement of Changes in Equity
for the year ended 31 May 2016
| Share capital
£000 | Capital redemption reserve £000 | Treasury share reserve £000 | Foreign exchange reserve £000 | Retained earnings
£000 | Total equity
£000 |
At 31 May 2014 |
3,792 |
600 |
(681) |
1,164 |
9,153 |
14,028 |
Profit for the year |
- |
- |
- |
- |
1,053 |
1,053 |
Other comprehensive income |
- |
- |
- |
(1,215) |
- |
(1,215) |
|
|
|
|
|
|
|
Total comprehensive income |
- |
- |
- |
(1,215) |
1,053 |
(162) |
Transaction with Shareholders: Purchase of treasury shares |
- |
- |
(44) |
- |
- |
(44) |
At 31 May 2015 |
3,792 |
600 |
(725) |
(51) |
10,206 |
13,822 |
Profit for the year |
- |
- |
- |
- |
1,039 |
1,039 |
Other comprehensive income |
- |
- |
- |
693 |
- |
693 |
|
|
|
|
|
|
|
Total comprehensive income |
- |
- |
- |
693 |
1,039 |
1,732 |
Transaction with Shareholders: Purchase of treasury shares |
- |
- |
(42) |
- |
- |
(42) |
|
|
|
|
|
|
|
At 31 May 2016 |
3,792 |
600 |
(767) |
642 |
11,245 |
15,512 |
The following describes the nature and purpose of each reserve within equity:
Reserve | Description and purpose |
Share capital |
The nominal value of issued ordinary shares in the Company. |
Capital redemption reserve |
Amounts transferred from share capital on redemption of issued shares. |
Treasury share reserve |
Cost of own shares held in treasury. |
Foreign exchange reserve |
Gains/losses arising on retranslation of the net assets of overseas operations into sterling. |
Retained earnings |
Cumulative net gains/losses recognised in the consolidated statement of comprehensive income after deducting the cost of cancelled treasury shares. |
Leeds Group plc
Preliminary Results
Notes
1. This preliminary announcement has been prepared using the recognition and measurement principles of IFRS as adopted by the European Union.
2. The Directors do not recommend the payment of a dividend.
3. Earnings per share
Since there are no outstanding share options, there is no difference between basic and diluted earnings per share. | Year ended 31 May 2016 | Year ended 31 May 2015 |
|
|
|
Numerator |
|
|
Profit for the year from continuing operations, being the earnings used in earnings per share |
£1,039,000 |
£1,053,000 |
|
|
|
Denominator |
|
|
Weighted average number of shares used in earnings per share (excluding treasury shares) |
27,506,459 |
27,583,006 |
|
|
|
Basic and diluted earnings per share | 3.8p | 3.8p |
4. The financial information set out above does not constitute the company's statutory accounts for 2016 or 2015.
Statutory accounts for the years ended 31 May 2016 and 31 May 2015 have been reported on by the Independent Auditors.
The Independent Auditors' Report on the Annual Report and Financial Statements for both 2016 and 2015 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
5. Statutory accounts for the year ended 31 May 2015 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 May 2016 will be delivered to the Registrar in due course. The Annual Report, giving notice of the Annual General Meeting, will be sent to shareholders shortly. Further copies will be available from the Company's Registered Office, Old Mills, Whitehall Grove, Drighlington, Bradford, BD11 1BY or from the Group's website, www.leedsgroup.plc.uk
6. Segmental information
|
|
|
|
| IFRS adjustments |
| ||
Year ended 31 May 2016 | Hemmers Europe £000 | Hemmers China £000 | Inter segmental £000 | Total Hemmers £000 | Holding companies £000 | Financial derivatives £000 | Goodwill
£000 | Group total £000 |
|
|
|
|
|
|
|
|
|
External revenue | 32,775 | 3,497 | - | 36,272 | - | - | - | 36,272 |
Inter-segmental revenue |
10 |
622 |
(632) |
- |
- |
- |
- |
- |
Cost of sales | (25,731) | (3,368) | 635 | (28,464) | - | (99) | - | (28,563) |
|
|
|
|
|
|
|
|
|
Gross profit | 7,054 | 751 | 3 | 7,808 | - | (99) | - | 7,709 |
Distribution costs | (1,964) | (252) | - | (2,216) | - | - | - | (2,216) |
Admin expenses | (3,582) | (232) | - | (3,814) | (135) | - | - | (3,949) |
|
|
|
|
|
|
|
|
|
Profit from operations |
1,508 |
267 |
3 |
1,778 |
(135) |
(99) |
- |
1,544 |
Finance expense | (92) | - | - | (92) | - | - | - | (92) |
Finance income | - | - | - | - | 4 | - | - | 4 |
Internal interest | (158) | - | - | (158) | 158 | - | - | - |
Share of JV profit | 51 | - | - | 51 | - | - | - | 51 |
|
|
|
|
|
|
|
|
|
Profit before tax | 1,309 | 267 | 3 | 1,579 | 27 | (99) | - | 1,507 |
|
|
|
|
| IFRS adjustments |
| ||
At 31 May 2016 | Hemmers Europe £000 | Hemmers China £000 | Inter segmental £000 | Total Hemmers £000 | Holding companies £000 | Financial derivatives £000 | Goodwill
£000 | Group total £000 |
|
|
|
|
|
|
|
|
|
Property, plant & equipment |
5,794 |
70 |
- |
5,864 |
- |
- |
- |
5,864 |
Goodwill | - | - | - | - | - | - | 855 | 855 |
Investment in JV | 640 | - | - | 640 | - | - | - | 640 |
Inventories | 7,526 | 271 | (32) | 7,765 | - | - | - | 7,765 |
Trade receivables | 4,215 | 401 | - | 4,616 | - | - | - | 4,616 |
Other receivables | 702 | 438 | - | 1,140 | 23 | - | - | 1,163 |
Cash & equivalents | 611 | 453 | - | 1,064 | 548 | - | - | 1,612 |
|
|
|
|
|
|
|
|
|
Total assets | 19,488 | 1,633 | (32) | 21,089 | 571 | - | 855 | 22,515 |
|
|
|
|
|
|
|
|
|
Group loans & current accounts |
(2,178) |
(127) |
- |
(2,305) |
2,305 |
- |
- |
- |
Non-current liabilities |
(3,843) |
- |
- |
(3,843) |
- |
- |
(230) |
(4,073) |
Trade payables | (1,066) | (328) | - | (1,394) | - | - | - | (1,394) |
Other payables | (691) | (161) | - | (852) | (37) | - | - | (889) |
Derivative financial liability |
- |
- |
- |
- |
- |
(40) |
- |
(40) |
Corporation tax | (178) | (14) | - | (192) | - | - | - | (192) |
Current loans & borrowings |
(415) |
- |
- |
(415) |
- |
- |
- |
(415) |
|
|
|
|
|
|
|
|
|
Total liabilities | (8,371) | (630) | - | (9,001) | 2,268 | (40) | (230) | (7,003) |
|
|
|
|
|
|
|
|
|
Net assets | 11,117 | 1,003 | (32) | 12,088 | 2,839 | (40) | 625 | 15,512 |
|
|
|
|
| IFRS adjustments |
| ||
Year ended 31 May 2015 | Hemmers Europe £000 | Hemmers China £000 | Inter segmental £000 | Total Hemmers £000 | Holding companies £000 | Financial derivatives £000 | Goodwill
£000 | Group total £000 |
|
|
|
|
|
|
|
|
|
External revenue | 31,151 | 3,708 | - | 34,859 | - | - | - | 34,859 |
Inter-segmental revenue |
68 |
924 |
(992) |
- |
- |
- |
- |
- |
Cost of sales | (24,303) | (3,815) | 989 | (27,129) | - | 63 | - | (27,066) |
|
|
|
|
|
|
|
|
|
Gross profit | 6,916 | 817 | (3) | 7,730 | - | 63 | - | 7,793 |
Distribution costs | (2,082) | (234) | - | (2,316) | - | - | - | (2,316) |
Admin expenses | (3,177) | (278) | - | (3,455) | (458) | - | 58 | (3,855) |
|
|
|
|
|
|
|
|
|
Profit from operations |
1,657 |
305 |
(3) |
1,959 |
(458) |
63 |
58 |
1,622 |
Finance expense | (71) | - | - | (71) | - | - | - | (71) |
Finance income | - | - | - | - | 7 | - | - | 7 |
Internal interest | (156) | - | - | (156) | 156 | - | - | - |
Share of JV profit | 13 | - | - | 13 | - | - | - | 13 |
|
|
|
|
|
|
|
|
|
Profit before tax | 1,443 | 305 | (3) | 1,745 | (295) | 63 | 58 | 1,571 |
|
|
|
|
| IFRS adjustments |
| ||
At 31 May 2015 | Hemmers Europe £000 | Hemmers China £000 | Inter segmental £000 | Total Hemmers £000 | Holding companies £000 | Financial derivatives £000 | Goodwill
£000 | Group total £000 |
|
|
|
|
|
|
|
|
|
Property, plant & equipment |
1,678 |
82 |
- |
1,760 |
- |
- |
- |
1,760 |
Goodwill | - | - | - | - | - | - | 802 | 802 |
Investment in JV | 553 | - | - | 553 | - | - | - | 553 |
Inventories | 7,107 | 184 | (33) | 7,258 | - | - | - | 7,258 |
Trade receivables | 4,522 | 238 | - | 4,760 | - | - | - | 4,760 |
Other receivables | 742 | 480 | - | 1,222 | 18 | - | - | 1,240 |
Derivative financial asset |
- |
- |
- |
- |
- |
59 |
- |
59 |
Cash & equivalents | 354 | 595 | - | 949 | 1,078 | - | - | 2,027 |
|
|
|
|
|
|
|
|
|
Total assets | 14,956 | 1,579 | (33) | 16,502 | 1,096 | 59 | 802 | 18,459 |
|
|
|
|
|
|
|
|
|
Group loans & current accounts |
(1,629) |
(204) |
- |
(1,833) |
1,833 |
- |
- |
- |
Non-current liabilities |
(665) |
- |
- |
(665) |
- |
(17) |
(227) |
(909) |
Trade payables | (1,364) | (418) | - | (1,782) | (3) | - | - | (1,785) |
Other payables | (705) | (132) | - | (837) | (44) | - | - | (881) |
Corporation tax | (269) | (15) | - | (284) | (12) | - | - | (296) |
Current loans & borrowings |
(766) |
- |
- |
(766) |
- |
- |
- |
(766) |
|
|
|
|
|
|
|
|
|
Total liabilities | (5,398) | (769) | - | (6,167) | 1,774 | (17) | (227) | (4,637) |
|
|
|
|
|
|
|
|
|
Net assets | 9,558 | 810 | (33) | 10,335 | 2,870 | 42 | 575 | 13,822 |
Analysis of revenue by destination
| Year ended 31 May 2016 | Year ended 31 May 2015 | ||||
| Hemmers Europe £000 | Hemmers China £000 | Group total £000 | Hemmers Europe £000 | Hemmers China £000 | Group total £000 |
|
|
|
|
|
|
|
UK | 1,205 | 100 | 1,305 | 1,087 | 324 | 1,411 |
Germany | 22,088 | 71 | 22,159 | 20,205 | 822 | 21,027 |
Rest of EU | 7,762 | 1,230 | 8,992 | 8,215 | 1,059 | 9,274 |
|
|
|
|
|
|
|
Total EU | 31,055 | 1,401 | 32,456 | 29,507 | 2,205 | 31,712 |
Rest of Europe | 1,186 | 335 | 1,521 | 1,070 | 157 | 1,227 |
|
|
|
|
|
|
|
Total Europe | 32,241 | 1,736 | 33,977 | 30,577 | 2,362 | 32,939 |
|
|
|
|
|
|
|
North America | 187 | 580 | 767 | 251 | 669 | 920 |
Asia | 140 | 831 | 971 | 102 | 295 | 397 |
Oceania | 80 | 301 | 381 | 106 | 350 | 456 |
South America | 108 | 19 | 127 | 113 | 11 | 124 |
Africa | 19 | 30 | 49 | 2 | 21 | 23 |
|
|
|
|
|
|
|
Total revenue | 32,775 | 3,497 | 36,272 | 31,151 | 3,708 | 34,859 |
Other information
| Year ended 31 May 2016 | Year ended 31 May 2015 | ||||
| Hemmers Europe £000 | Hemmers China £000 | Group total £000 | Hemmers Europe £000 | Hemmers China £000 | Group total £000 |
|
|
|
|
|
|
|
Additions to property, plant & equipment |
4,147 |
9 |
4,156 |
284 |
14 |
298 |
|
|
|
|
|
|
|
Depreciation | 279 | 21 | 300 | 208 | 18 | 226 |