Riverfort Regulatory News (RGO)

23 Jun 2006 07:00

Caldwell Investments PLC23 June 2006 Caldwell Investments P.L.C. announces its audited resultsfor the year ended 28th February 2006 KEY POINTS • Turnover £6,418,670 (2005 14 month period: £6,849,218)• Operating Loss £525,668 (2005: Profit £4,348)• Pre Tax Loss £589,794 (2005: £37,843)• Loss per Share 3.40p (2005: 0.48p)• New Managing Director appointed• NinaSun project making tangible progress• Transfer from the Full List to AIM Commenting on the results, Stanley Wootliff, Chairman of Caldwell said "TheGroup loss of £647,206, which was less than the forecast loss at the time oflast year's share issue, reflects the Group's projected ongoing marketing anddevelopment investment in the NinaSun enterprise and the Group's progressiveamortisation rates. It also includes an exceptional debtor provision of£131,000. NinaSun itself had another year of significant progress, with meaningful initialand repeat orders, in both the UK and overseas. We believe the NinaSun projectis on course to deliver, in the coming years, fair reward for the financialinvestment and the continuing efforts of the Group's employees." CHAIRMAN'S STATEMENT Business Performance The year under review was one of strategic progress for the Group as it pushedahead with the development and marketing of its "Nina" range of patentedproducts. The Group loss on ordinary activities before taxation for the year ended 28thFebruary 2006 was £589,794 (2005 14 month period: £37,843) After provision for tax on overseas profits, a retained loss of £647,206(2005: £81,279) has been transferred to reserves. This loss is after further marketing and development investment in the NinaSunenterprise, the Group's progressive amortisation rates and an exceptional debtorprovision of £131,000. OPERATIONAL REVIEW The year ended 28th February 2006 produced its usual range of challenges. NINASUN OUTDOOR FURNITURE Consumer Market Since the appointment of Neil Gow, with his long experience of the garden centreindustry, as Managing Director of Caldwell, the formal roll-out in January ofthe NinaSun hardwood garden furniture range to selected upmarket independentgarden centres has been successful with orders taken from garden centresthroughout the UK. Initial and repeat orders have also been received from three of the UK's majorcatalogue companies. In addition, sales from the NinaSun website have been very encouraging withrevenues for the year to date showing an eight-fold uplift against the previousyear. Hospitality Market The Company has recently received orders from Radisson Resort & Casino Hotel inAruba, and Moveis e Estofas, a major distributor to the hospitality trade in theAlgarve. These orders are for both NinaSun furniture and NinaSun retrofitcanopies for Grossfillex and Balliu resin loungers. The NinaSun canopy is now featured in hotels in the USA, France, Brazil, Jerseyand Aruba. Although the value of any individual order relative to total Group turnover issmall, this growing interest in NinaSun products from both individual consumersand the hospitality industry is of particular importance to Caldwell as itdemonstrates the desirability of the products and enhances the market'sawareness of the NinaSun range. The Board has always anticipated that full realisation of the NinaSun projectwould take a number of years to come to fruition. To date, the rate of progresshas been fully on track, with encouraging revenues starting to be generated. NINACLIP BABY BUGGY PARASOLS This is a niche-market business where we expect to achieve steady annual growthat acceptable margins. Sales in the 2005 summer season started well but thenfell away as the weather in the mid to late summer was not particularly warm.This resulted in a final outcome largely in line with budget. UNDERWEAR BUSINESS Our underwear business in Germany became more predictable as the exchange ratefluctuations between the Euro and the Dollar settled down. This enabled us torecoup, at acceptable margins, some of the business that had been lost in theprevious year. Overall, the business in Germany had a good year but theperformance was marred by a bad debt. For our underwear business in the UK, sales were down due to a major customermoving to direct import of half of their purchases. However, this has now beendiscontinued and Caldwell regained this business towards the end of the secondhalf. TRANSFER TO AIM On 25th November 2005, Caldwell transferred to AIM. The Board believes that AIMis a more appropriate market for a company of Caldwell's size. The move to AIMwill also enable the Group to react more quickly should developmentopportunities arise. DIRECTORS On 7th February 2006, Neil Gow (47) joined the Board as Managing Director. Neilhas over 30 years' experience in the garden centre industry and considerableexpertise in the sourcing and marketing of outdoor furniture. This expertise,together with his extensive contacts in the sector, including key industryfigures, has already been effective in introducing the Group's NinaSun furniturerange into independent garden centres and enabling it to gain a foothold in theUK's £400million outdoor furniture market. CURRENT TRADING AND OUTLOOK NinaSun Outdoor Furniture New products, by their very nature, need time to make themselves known and toestablish their position in the market. In this context, the continuingprogress of our NinaSun outdoor furniture is very encouraging. The Board always anticipated that full realisation of the NinaSun project wouldtake a number of years to achieve. To date, the rate of progress has been fullyon track, with revenues starting to be generated in the current financial year. Those revenues will, however, be offset in the short term, by ongoinginvestment in additional personnel, marketing and development costs. We will belooking to the financial year commencing 1st March 2007 for a bottom linecontribution from NinaSun products. NinaClip Baby Buggy Parasols The new jumbo clamp, introduced this year in response to a growing trend towardswider tubes being used in the construction of baby buggies, has been wellreceived. Overall, sales to date of all types of parasol have been steady andwe are hopeful of having a satisfactory year, although, as always, the finaloutcome will be affected by the weather. Underwear Business The Group's underwear businesses have been steady cash generators for manyyears. Assuming stable currency markets, we expect this trend to continue.Following a modest increase in turnover in the year to 28th February 2006,current trading is going well and we anticipate a satisfactory outcome in thisfinancial year. SUMMARY Looking further into the future, we see great potential for NinaSun and hope todeliver a material increase in sales from that area, leading to our underwearbusinesses becoming a relatively less important part of the Group's operations. On a personal note, I would like to thank my colleagues and all Caldwellemployees for their contribution, without which, these achievements would nothave been possible. S J WootliffChairman 23 June 2006 CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEARENDED 28 FEBRUARY 2006 Year ended Period ended 28 February 28 February 2006 2005 £ £ Turnover - continuing operations 6,418,670 6,849,218 Cost of sales (5,355,099) (5,597,741) ------------ ------------ Gross Profit 1,063,571 1,251,477 Distribution costs (155,353) (145,885)Administration expenses (1,437,105) (1,145,272)Other operating income 3,219 44,028 ------------ ------------ Operating (loss)/profit - continuing operations (525,668) 4,348Net interest payable (64,126) (42,191) ------------ ------------ Loss on ordinary activities before taxation (589,794) (37,843)Tax on profit on ordinary activities (57,412) (43,436) ------------ ------------ Retained loss for the financial year (647,206) (81,279) ------------ ------------ Loss per shareBasic (3.40p) (0.48p)Diluted (3.40p) (0.48p) ------------ ------------ CONSOLIDATED BALANCE SHEETSAT 28 FEBRUARY 2006 GROUP COMPANY 2006 2005 2006 2005 £ £ £ £Fixed assetsIntangible assets 506,756 566,203 241,179 276,165Tangible assets 799,096 819,466 364,452 377,342Investments 0 0 2,382,906 2,382,906 ------------ ------------ ------------ ------------ 1,305,852 1,385,669 2,988,537 3,036,413 Current assetsStocks 1,554,300 1,603,388 0 0Debtors falling due within 1 year 630,912 651,504 619,916 776,773Cash at bank and in hand 917,673 578,443 607,779 328,759 ------------ ------------ ------------ ------------ 3,102,885 2,833,335 1,227,695 1,105,532 Creditors: amounts falling due within one year (1,802,164) (1,444,685) (114,148) (245,272) ------------ ------------ ------------ ------------ Net current assets 1,300,721 1,388,650 1,113,547 860,260 ------------ ------------ ------------ ------------ Total assets less current liabilities 2,606,573 2,774,319 4,102,084 3,896,673 Creditors: amounts falling due after more than oneyear (314,043) (341,336) (314,043) (341,336) Net assets 2,292,530 2,432,983 3,788,041 3,555,337 ------------- ------------- ------------- ------------- Capital and reservesCalled up share capital 1,991,196 1,761,250 1,991,196 1,761,250Share premium account 1,906,229 1,622,799 1,906,229 1,622,799Capital redemption reserve 27,000 27,000 27,000 27,000Revaluation reserve 27,000 27,000 27,000 27,000Profit and loss account (1,658,895) (1,005,066) (163,384) 117,288 ------------- ------------- ------------- ------------- Equity shareholders' funds 2,292,530 2,432,983 3,788,041 3,555,337 ------------- ------------- ------------- ------------- CONSOLIDATED CASH FLOW STATEMENT FOR THE YEARENDED 28 FEBRUARY 2006 Year ended Period ended 28 February 28 February 2006 2005 £ £ Net cash (outflow)/inflow from operating activities (605,141) 1,450,284 Returns on investments and servicing of financeInterest received 1,920 37,896Interest paid (63,566) (77,607)Finance lease interest paid (2,480) (2,480) ------------ ------------ Net cash outflow from returns on investments and servicing offinance (64,126) (42,191) ------------ ------------ TaxationTax paid (50,542) (141,910) ------------ ------------ Capital expenditure and financial investmentPurchase of intangible fixed assets (57,735) (330,368)Purchase of tangible fixed assets (72,657) (330,659)Receipt from sale of fixed assets 2,151 45,006 ------------ ------------ Net cash outflow from capital expenditure (128,241) (616,021) ------------ ------------ Net cash (outflow)/inflow before financing (848,050) 650,162 FinancingIssue of shares 574,864 423,000Share issuing expenses (61,488) (7,760)New loans 0 135,000Repayment of bank loans (24,437) (12,658)Repayment of other loans 0 (90,000)Capital element of finance lease payments (16,656) (19,455) ------------ ------------ Net cash inflow from financing 472,283 428,127 ------------ ------------ (Decrease)/increase in cash in the year (375,767) 1,078,289 ------------ ------------ BASIS OF PREPARATION This preliminary statement of annual results which covers the twelve months to28 February 2006 has been agreed by the Group's auditors and is consistent withthe full financial statements. The abridged preliminary Group accounts for the year ended 28 February 2006 arenot statutory accounts and have been extracted from the full statutory accountsfor the year ended 28 February 2006. The full statutory accounts for the year onwhich the auditor's report is unqualified will be delivered to the Registrar ofCompanies in due course. The comparative figures for the fourteen months to 28 February 2005 are abridgedfrom the accounts for that year and do not constitute full accounts within themeaning of Section 240 of the Companies Act 1985 (as amended). Statutoryaccounts for that year on which the auditors gave an unqualified opinion havebeen delivered to the Registrar of Companies. EARNINGS/(LOSS) PER SHARE The calculation of basic loss per share is based on losses attributable toordinary shareholders divided by the weighted average number of shares in issueduring the period. The calculation of diluted earnings per share is based on thebasic loss per share adjusted to allow for the assumed conversion of alldilutive options. ANNUAL REPORT The annual report will be mailed to shareholders on or around 12th July 2006.Copies will be available after that date from: The Secretary, CaldwellInvestments P.L.C., 647 Roundhay Road, Leeds, West Yorkshire LS8 4BA. ANNUAL GENERAL MEETING The Annual General Meeting will be held at Nina House, Unit 9, Prospect Place,East Pimbo Industrial Estate, Skelmersdale, Lancashire WN8 9QD at 10.00 a.m. onTuesday 15 August 2006. This information is provided by RNS The company news service from the London Stock Exchange