OneView Group Regulatory News (ONEV)

23 Nov 2009 07:00

ARMOUR GROUP PLC

 ("Armour" or the "Group")

Preliminary Results for the year ended 31 August 2009 

FINANCIAL HEADLINES

* EBITDA is defined as profit before interest, taxation, depreciation, amortisation and share-based payments.

BUSINESS HIGHLIGHTS

George Dexter, Chief Executive of Armour Group plc commented:

"The Group's target markets of electrical retailing, house building and automotive have been some of the hardest hit over last year's severe economic downturn. We have adapted our business but continued to pursue our strategy, producing a very sound set of results given the overall economic climate.

Despite the state of the economy, the Group has not stood still. We have continued to invest in our business. We believe that the Group is well positioned to take advantage of any opportunities that arise as the recovery gathers momentum. 

The new financial year has started well for both our operating divisions, with Group sales and profit comfortably ahead of last year." 

For further information please contact: 

Armour Group plc Tel: 01892 502700

George Dexter, Chief Executive

John Harris, Finance Director

FinnCap, Nominated Adviser and Broker Tel: 0207 600 1658

Geoff Nash

Stephen Norcross (Sales)

Threadneedle Communications, Financial PR Tel: 020 7653 9850

Trevor Bass, Alex White

ARMOUR GROUP PLC

 ("Armour" or the "Group")

Preliminary Results for the year ended 31 August 2009 

CHAIRMAN'S STATEMENT

We are pleased to report that despite an extremely challenging year to 31 August 2009, Group sales were £51.6 million (2008: £54.0 million) and profit from operations was £1.5 million (2008: £4.0 million). Basic earnings per ordinary share were 1.4p (2008: 3.7p) and the proposed full year dividend is 0.30p (2008: 0.65p). The Group generated £7.2 million of cash from operations (2008: £3.1 million) with net debt falling by £4.0 million to £4.9 million at 31 August 2009.

The Group's profitable and cash generative performance, whilst reflecting the difficulties in the economic environment, has also clearly demonstrated the resilience and strength of our business model. This model is based upon strong brands, quality products backed by innovation, unrivalled distribution and excellent customer service. Taken together, these fundamental strengths are a key part of our strategy and the foundation of our leading positions in our niches within the home and automotive consumer product markets.

During the year we successfully managed our way through a variety of unfavourable events which have included a tightening of credit facilities, significant exchange rate volatility, a collapse in consumer confidence and demand and fierce price competition in particular sectors of our target markets.

We responded to the deteriorating market conditions in a measured and responsible manner with the objective of protecting profitability without damaging the longer term prospects of the Group. We reduced our cost base, selectively increased product pricing and maintained our investment in the key new product development programmes, which we believe will drive future growth. 

Whilst the headlines for the year have been dominated by the impact of the economic downturn, there has been a considerable amount of good news for the Group. This includes a significant amount of new business won across all the operations with both new and existing customers; the successful launch of our "small office home office" furniture range; over £1 million of additional future annual revenue secured through new distribution agreements signed in the year; the expansion of our operations in Scandinavia; and the launch of a series of new products, the most exciting of which is QTV2 (www.qacoustics.co.uk/q-tv.htm).

The Group employs over 300 loyal and dedicated colleagues throughout our operations in the UK, Ireland, Scandinavia and the Far East, all of whom have responded positively to a challenging time. The results for year just ended are a credit to their hard work, enthusiasm and professionalism and on behalf of the Board I thank them all.

The economic outlook is becoming brighter, with most economic indicators, both at home and abroad, showing positive signs of recovery. The Group has positioned itself well to take advantage of the recovery with new products, new contracts, new customers and new channels to market. The 2010 financial year has started well and whilst there will undoubtedly be further turbulence in the wider economic environment, the Board remains confident with regard to the future prospects for the Group.

BOB MORTON

Chairman

23 November 2009

ARMOUR GROUP PLC

CONSOLIDATED INCOME STATEMENT

For the year ended 31 August 2009

ARMOUR GROUP PLC

CONSOLIDATED BALANCE SHEET

At 31 August 2009

ARMOUR GROUP PLC

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

For the years ended 31 August 2009

ARMOUR GROUP PLC

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 August 2009

ARMOUR GROUP PLC

Preliminary Announcement of the audited financial statements for the year ended 31 August 2009

1. Accounting Policies

Basis of preparation

The Group's Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively "IFRS") issued by the International Accounting Standards Board as adopted by the European Union ("Adopted IFRS") and with those parts of the Companies Act 2006 applicable to companies preparing their financial statements under IFRS.

While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of IFRS, this announcement does not itself contain sufficient information to comply with IFRS. The Group expects to publish full financial statements that comply with IFRS in December 2009.

2. Segment Information

The Group operates in the following main business segments:

Armour Auto:  The design, manufacture and supply of products for the in-car communications and entertainment market.

Armour Home: The design, manufacture and supply of products into the Hi-Fi, home theatre, home entertainment and office furniture markets.

Central operations: The provision of finance and support services, including future product concepts and Hong Kong based quality control, to the other business segments within the Group.

The Group's primary reporting format for reporting segment information is business segments.

ARMOUR GROUP PLC

Preliminary Announcement of the audited financial statements for the year ended 31 August 2009

2. Segment Information (continued)

The Group's secondary reporting format for reporting segment information is geographic segments.

3. Taxation Expense

ARMOUR GROUP PLC

Preliminary Announcement of the audited financial statements for the year ended 31 August 2009

3. Taxation Expense (continued)

The taxation assessed for the year is lower (31 August 2008: Lower) than the standard rate of UK Corporation Tax. The differences are explained below: 

The 2008 rate of UK Corporation Tax of 29.17% reflected the rate change from 30% to 28% effective from April 2008. Deferred taxation has been provided at the future taxation rate of 28% in both years.

4. Earnings per Ordinary Share

Basic earnings per ordinary share are calculated using the weighted average number of ordinary shares in issue during the financial year of 65,056,067 (31 August 2008: 67,191,706). Diluted earnings per ordinary share are calculated with reference to 65,056,067 (31 August 2008: 68,044,400) ordinary shares. The effect of the exercise of options on the weighted average number of ordinary shares in issue is Nil (31 August 2008: 852,694).

At 31 August 2009, the Armour Employees' Share Trust held 3,424,000 (31 August 2008: 3,424,000) ordinary shares. The weighted average number of ordinary shares held by the Armour Employees' Share Trust during the year of 3,424,000 (31 August 2008: 1,288,361) are not included in either the weighted average, or diluted weighted average, ordinary shares in issue during the financial year.

Underlying earnings per ordinary share are also shown calculated by reference to earnings before share-based payments. The Directors consider that this gives a useful additional indication of underlying performance. It should be noted that the term "underlying" is not defined under IFRS and may not therefore be comparable with similarly titled profit measures reported by other entities. 

ARMOUR GROUP PLC

Preliminary Announcement of the audited financial statements for the year ended 31 August 2009

5. Dividend

The Board is recommending a dividend for the year of 0.30 pence per ordinary share. Subject to approval at the Annual General Meeting, the dividend will be paid on 12 March 2010 to those shareholders on the register at the close of business on 12 February 2010.

The proposed dividend for the year has not been accrued in the Consolidated Balance Sheet as at 31 August 2009. The dividend proposed in the financial statements as at 31 August 2008, and approved by shareholders at the Annual General Meeting held on 29 January 2009, was charged to reserves and paid during the year. 

6. Net Cash Inflow from Operations

7. Reconciliation of Net Cash Flow to Movement in Net Debt

Net debt incorporates the Group's borrowings, bank overdrafts and obligations under finance leases, less cash and cash equivalents. A reconciliation of the movement in the net debt from the beginning to the end of the year is shown below:

ARMOUR GROUP PLC

Preliminary Announcement of the audited financial statements for the year ended 31 August 2009

8. Publication of non-statutory accounts

The financial information set out in this preliminary announcement does not constitute the Group's financial statements for the year ended 31 August 2009 and the year ended 31 August 2008. 

The financial statements for the year ended 31 August 2008 were prepared in accordance with Adopted IFRS and have been delivered to the Registrar of Companies. The financial statements for the year ended 31 August 2009 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The auditors' report on both accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain statements under sections 237(2) or (3) of the Companies Act 1985 (in respect of the 31 August 2008 financial statements) or sections 498(2) or (3) of the Companies Act 2006 (in respect of the 31 August 2009 financial statements).

The full audited financial statements of Armour Group plc for the period ended 31 August 2009 are expected to be posted to shareholders no later than 14 December 2009 and will be available to the public at the Company's registered office, Lonsdale House, 7-9 Lonsdale Gardens, Tunbridge Wells Kent, TN1 1NU and available to view on the Company's website at www.armourgroup.uk.com from that date. 

9. Annual General Meeting

The Annual General Meeting will be held at the offices of Arnold & Porter (UK) LLP, Tower 42, 25 Old Broad Street, London, EC2N 1HQ on 28 January 2010.

ABOUT ARMOUR

Armour Group is the United Kingdom's leading consumer electronics group within the home and in-car communications and entertainment markets, committed to designing, manufacturing and distributing leading-edge audio and visual products and solutions. 

Armour Group has two principal operating divisions, Armour Home and Armour Auto, and employs over 300 people across eight operating sites in the UK, Sweden and Hong Kong.

The Group possesses a strong brand portfolio, including more than 6,000 products and accessories, which is underpinned by innovative product development and investment in proprietary technology. 

An unrivalled distribution capability ensures that products are supplied direct to more than 6,000 retail outlets within the UK and to customers in 68 countries worldwide. Armour Group is also a leading supplier of audio and visual technology to a host of non-retail customers including vehicle manufacturers, hotel chains, house builders and custom installers. 

The Group's strength is based on 5 fundamentals:

Strong recognised brands

Quality product portfolio

Structured programme of product innovation

Unrivalled distribution into the UK's retail electronics market

First class customer service