Riverfort Regulatory News (RGO)

27 May 2005 11:39

Caldwell Investments PLC27 May 2005 Caldwell Investments PLC Preliminary results for the fourteen months to 28 February 2005 Financial highlights: • Turnover for 14 month period of £6,849,218 (2003: £8,086,785) • Pre-tax loss £37,843 (2003: profit £6,219) • Continued investment in the NinaSun project • Steady order flow for NinaSun canopies • NinaSun project fully on track • NinaSun project to generate significant revenues in financial year commencing March 2006 • Proposed Rights Issue to fund NinaSun marketing investment Chairman, Stanley Wootliff, commenting on the results said: "The fourteen month period ended 28 February 2005 was challenging for ourtraditional business but also one of further progress for our NinaSun project. International patents, including the US were granted. World-wide distribution was established for NinaSun canopies for resinfurniture. UK and German e-commerce sites were established and starting to produced steadyorder flow". For further information, please contact: Stanley Wootliff, Executive ChairmanGraham Haselden, Finance Director Tel: 0113 235 0632 27th May 2005 2005 CHAIRMAN'S STATEMENT The fourteen month period ended 28 February 2005 was challenging for ourtraditional business but also one of further progress for our NinaSun project. International patents, including US, were granted. World wide distributionestablished for NinaSun canopies for resin loungers and UK and German e-commercesites established. Business Performance Group loss on ordinary activities before taxation for the fourteen month periodended 28 February 2005 was £37,843 (12 months ended 31 December 2003 profit£6,219). After provision for tax on overseas profits a retained loss of £81,279 (2003:£115,321) has been transferred from reserves Change of year end In order to relieve the pressure on our various offices for stock taking andaccounting purposes in the Christmas period, we have moved our year end fromDecember to February. This resulted in a 14 month accounting period whichincluded the two month period January to February twice. This is a loss makingperiod and if the year had been a 12 month period ended 31st December 2004, theGroup would have traded at a small profit, despite continued costs incurred onthe NinaSun project. Traditional underwear business The Group's underwear businesses have been steady cash earners for many yearsand the period ended 28 February 2005 was no different, but currency movementsbetween the euro and the US dollar led to a general erosion of price points andthere were many orders where we were not able to obtain a workable margin andfrom which we decided to walk away. This led to loss of turnover, which isreflected in these Accounts. Since the year end more stable conditions have returned and turnover in thefirst two months of the new financial year has shown material recovery. NinaClip nursery products Our baby buggy parasols and canopies had a satisfactory period. The start ofthe period was exceptional, but after Easter the sun decided not to shine. During the period we designed and patented a new parasol clamp to accommodatethe increased diameters and new lozenge shapes being used for more fashionablebuggies. This unique design has been well received and we hope it will lead to a furtherincrease in our sales of buggy accessories this year. NinaSun canopies for outdoor furniture The fourteen month period ended 28th February 2005 has seen substantial progressin the ongoing development of the NinaSun canopy project. During that time US patents were granted, canopy manufacture in the UKcommenced, and worldwide distribution for canopies for resin furnitureestablished. Design of the hardwood range of furniture with integrated canopies started withmanufacturing partners in South East Asia. E-commerce sites were established in UK and Germany. Since the beginning ofspring they have achieved a steady order flow for hardwood furniture withintegrated canopies, this prior to any serious marketing activity, indicating aready demand for our hardwood furniture with NinaSun canopies. The Board has always anticipated that full realisation of the NinaSun projectwould take a number of years to materialise. To date, the rate of progress hasbeen fully on track and it is expected that NinaSun canopies will generatesignificant revenues in the financial year commencing March 2006. Directors In January 2005, we announced that John Hanford, who has been a non-executivedirector for over 10 years, would be retiring at the AGM. We would like tothank John for all his effort and dedication over those years and to publiclyrecord our appreciation for his strategic and practical thinking on all mattersrelating to the Group's well being and progress. In that same announcement, we announced that Keith Robinson, an experienced citysolicitor, joined the board on 4th January 2005. We are pleased to welcome himand feel sure he will make a very positive contribution to the future progressand development of the Group. Future prospects Traditional business: As already stated, our traditional underwear business has started the year well and we will be looking for an improved performance in year ended February 2006. Baby products: This is a steady niche market business where we expect to achieve steady annual growth at acceptable margins. It is inevitably weather related so accordingly we hope for a hot summer. Sun canopies: This is a truly exciting patent protected product in all the right markets at the right time. Outdoor furniture, Sun shade, E-commerce, Ageing population: As already mentioned, full realisation of the NinaSun canopy's potential will take a little more time to materialise. Our progress is on track and in the financial year commencing 1st March 2006, we expect the NinaSun canopies to generate significant revenues. Rights Issue The Board of Caldwell announced on 27th May 2005 that it had resolved to raisemoney by way of a Rights Issue to fund future NinaSun marketing investment. Further information regarding the proposed Rights Issue will be contained in acircular to Shareholders to be despatched with the Report and Accounts. It is intended that the Report and Accounts with the Rights Issue circular willbe posted to Shareholders in the first week in July. Outlook Trading in our underwear business is currently going well and we are hopeful ofan improved performance in the current year. Sales of the baby buggy parasolshave to date been slow due to lack of sunshine. It is too early to predict theoutcome of this part of our business. The Board views the potential for the NinaSun canopies very positively.Although we do not expect to generate significant revenues from this activityuntil the financial year commencing March 2006, the Board is confident theNinaSun canopy represents an outstanding opportunity for the Group. On a personal note, I would like to thank my colleagues and all Caldwellemployees for their contributions, without which these achievements would nothave been possible. CALDWELL INVESTMENTS P.L.C. CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE FOURTEEN MONTH PERIOD ENDED 28 FEBRUARY 2005 Period ended Year ended 28 February 31 December 2003 2005 £ £ Turnover - continuing operations 6,849,218 8,086,785 Cost of sales (5,597,741) (6,631,288) Gross Profit 1,251,477 1,455,497 Distribution costs (145,885) (162,715)Administration expenses (1,145,272) (1,275,670)Other operating income 44,028 57,580 Operating profit - continuing operations 4,348 74,692 Net interest payable (42,191) (68,473) (Loss)/profit on ordinary activities before taxation (37,843) 6,219Tax on (loss)/profit on ordinary activities (43,436) (121,540) Retained loss for the financial year (81,279) (115,321) Loss per shareBasic (0.48p) (0.75p)Diluted (0.48p) (0.75p) CALDWELL INVESTMENTS P.L.C. CONSOLIDATED BALANCE SHEETS AT 28 FEBRUARY 2005 GROUP COMPANY 2005 2003 2005 2003 £ £ £ £Fixed assetsIntangible assets 566,203 278,006 276,165 0Tangible assets 819,466 584,497 377,342 270,415Investments 0 0 2,382,906 2,382,906 1,385,669 862,503 3,036,413 2,653,321 Current assetsStocks 1,603,388 1,426,229 0 0Debtors falling due within 1 year 651,504 2,171,007 776,773 997,993Cash at bank and in hand 578,443 247,174 328,759 0 2,833,335 3,844,410 1,105,532 997,993 Creditors: amounts falling due within oneyear (1,444,685) (2,315,019) (245,272) (186,053) Net current assets 1,388,650 1,529,391 860,260 811,940 Total assets less current liabilities 2,774,319 2,391,894 3,896,673 3,465,261 Creditors: amounts falling due after morethan one year (341,336) (264,165) (341,336) (264,165) Provisions for liabilities and charges 0 0 0 0 Net assets 2,432,983 2,127,729 3,555,337 3,201,096 Capital and reservesCalled up share capital 1,761,250 1,666,250 1,761,250 1,666,250Share premium account 1,622,799 1,302,559 1,622,799 1,302,559Capital redemption reserve 27,000 27,000 27,000 27,000Revaluation reserve 27,000 27,000 27,000 27,000Profit and loss account (1,005,066) (895,080) 117,288 178,287 Equity Shareholders' funds 2,432,983 2,127,729 3,555,337 3,201,096 CALDWELL INVESTMENTS P.L.C. CONSOLIDATED CASH FLOW STATEMENT FOR THE FOURTEEN MONTH PERIOD ENDED 28 FEBRUARY 2005 Period ended 28 Year ended February 2005 31 December 2003 £ £ Net cash inflow/(outflow) from operating activities 1,450,284 (243,769) Returns on investments and servicing of financeInterest received 37,896 11,918Interest paid (77,607) (79,151)Finance lease interest paid (2,480) _(1,240)Net cash outflow from returns on investments and servicing offinance (42,191) (68,473) TaxationTax paid (141,910) (80,086) Capital expenditure and financial investmentPurchase of intangible fixed assets (330,368) (23,872)Purchase of tangible fixed assets (330,659) (331,410)Receipt from sale of fixed assets 45,006 23,258 Net cash outflow from capital expenditure (616,021) (332,024) Net cash inflow /(outflow) before financing 650,162 (724,352) FinancingIssue of Shares 423,000 232,500Share issuing expenses (7,760) (11,696)New loans 135,000 252,000Repayment of bank loans (12,658) (5,448)Repayment of other loans (90,000) (30,000)Capital element of finance lease payments (19,455) (8,333) Net cash inflow from financing 428,127 429,023 Increase/(decrease) in cash in the year 1,078,289 (295,329) BASIS OF PREPARATION This preliminary statement of annual results which covers the fourteen months to28 February 2005 has been agreed by the Group's auditors and is consistent withthe full financial statements. The abridged preliminary Group accounts for the fourteen months ended 28February 2005 are not statutory accounts and have been extracted from the fullstatutory accounts for the fourteen months ended 28 February 2005. The fullstatutory accounts for the period on which the auditor's report is unqualifiedwill be delivered to the Registrar of Companies in due course. The comparative figures for the year to 31 December 2003 are abridged from theaccounts for that year and do not constitute full accounts within the meaning ofSection 240 of the Companies Act 1985 (as amended). Statutory accounts forthat year on which the auditors gave an unqualified opinion have been deliveredto the Registrar of Companies. 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 onthe basic loss per share adjusted to allow for the assumed conversion of alldilutive options. As the impact of issuing potential ordinary shares isanti-dilutive, the diluted loss per share in 2005 is equivalent to the basicloss per share. ANNUAL REPORT The annual report will be mailed to shareholders in the first week of July 2005. 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 on Wednesday27th July 2005 at 4.00 p.m. This information is provided by RNS The company news service from the London Stock Exchange