Riverfort Regulatory News (RGO)

28 Nov 2005 07:00

Caldwell Investments PLC28 November 2005 28 NOVEMBER 2005 CALDWELL INVESTMENTS PLC ("Caldwell" or "the Group") INTERIM RESULTSFOR THE SIX MONTHS TO 31 AUGUST 2005 Following the Company's transfer to Aim last Friday, the Board of Caldwell, theAIM listed creators of the "Nina" patented range of solar protection products,is pleased to announce its interim results for the six months to 31 August 2005. Following the change to the Group's accounting reference date, the half yearbeing reported on represents the 6 months to 31 August 2005 and the comparativehalf year for 2004 represents the 6 months to 30 June 2004. The period to 28February 2005 was a 14 month period. KEY POINTS • Transfer from the Full List to AIM on 25 November; • Turnover £2,986,178 (1H 2004: £2,656,989); • Operating loss £333,633 (1H 2004 profit: £149,461); • Pre-tax loss £358,017 (1H 2004 profit: £157,341); • Loss per share 2.03p (1H 2004 profit per share 0.83p); • NinaSun project on schedule with market and brand evaluation completed Commenting on the results, Stanley Wootliff, Chairman of Caldwell said: "It isthe Group's strategy to further develop its "Nina" range of patented products sothat it's low margin underwear businesses become an ever less significant partof the overall business. "The Board continues to remain confident that the NinaSun canopy presents anoutstanding opportunity for the Group. Progress is on schedule but continuesto require all involved to be diligent and patient, prior to it starting to makea meaningful contribution to Group results." Enquiries: Caldwell Investments plc 0113 235 0632Stanley Wootliff, Chairman www.caldwellinvestmentsplc.com Bishopsgate Communications Ltd. 020 7430 1600Dominic Barretto 07930 450 156Maxine Barnes 07860 489 571 www.bishopsgatecommunications.com Williams de Broe 0113 243 1619Joanne Lake www.wdebroe.com CHAIRMAN'S STATEMENT The period under review was one of strategic progress for the Group as it pushedahead with the development of its "Nina" range of patented products. Tradingin the first half showed a pre-tax loss of £358,000 (H12004: Profit £157,000).These losses include amortisation and depreciation of £117,000, written-off overa ten year period, and £171,000 of expenses relating to the ongoing development,sourcing, promotion and marketing of the NinaSun canopy. Following the change in the Group's accounting reference date, this 2005 halfyear represents the 6 months ended 31 August. The comparative half year for2004 represents the 6 months to 30 June. The period to 28 February 2005 was a14 month period OPERATIONAL REVIEW Nina Products The range of Nina products currently available from the Group includes: NinaClip- a range of baby buggy parasols, encompassing the "MiniSol" and "FlexiSol" andNinaSun - a range of garden furniture, incorporating the NinaSun canopy. NinaSun is a range of outdoor furniture with a unique patented detachable canopyproviding cool comfort and 90% UV protection. During the period, the Groupcontinued in its strategy to develop and evaluate this product further, sellinga limited number of deckchairs over the internet and through reader offers inpublications such as Saga Magazine. This enabled NinaSun to test the pricesensitivity of the product, whilst at the same time having over 800 deckchairstested under real life conditions. The results of the trial proved the productto be robust and of high quality. Although this project generated relativelysmall revenues, it was extremely useful in providing essential market andproduct performance information. In Spring 2005, Caldwell commissioned marketing consultants to carry out amarket and brand evaluation and to provide an appropriate programme to take theNinaSun products to market. The market research showed that, as a consequence ofthe canopy being completely new and unique, potential customers would need tosee, touch and feel the product prior to making a purchase. It was felt thatthis would be best achieved by direct selling to the public through gardencentres. The Group intends to pursue this sales strategy on a trial basis in Spring 2006and, if successful, roll out a major programme in 2007. The Group is confidentthat the potential for NinaSun is substantial, although it recognises thatprofitability is not likely to be achieved until the medium-term, followingnational rollout. Since 2004, Caldwell's NinaSun product has beensuccessfully trialled at: • The Majestic Hotel, Cannes, • The Marriott Hotel in Sao Paulo and • The Laguna Bay Hotel in San Francisco; and • To consumers in both the UK and Germany amongst 800 domestic users. Although the NinaSun project has moved forward and progress is on schedule, itcontinues to require all involved to be diligent and patient prior to itstarting to make a meaningful contribution to Group results. NinaClip Forward orders for NinaClip, a range of solar parasols for baby buggies,encompassing the MiniSol, FlexiSol and NinaClip baby buggy canopy, are lookingpromising. Sales of the new patented Jumbo clamp have started to take-off and weare hopeful of having a satisfactory year although the final outcome, as always,will be influenced by the weather. Notwithstanding this however, sales, weredown compared with the same period last year. Nissel Textilien Trading at Nissel Textilien, Caldwell's German importer and distributor ofnon-fashion men's cotton underwear was satisfactory in the first half of theyear and the second half of the year has started well. It is expected that in2006, trading will revert to the more normal situation of previous years.Margins have been under pressure due to the Euro strengthening against the USDollar. Challioner & Walker Ltd Sales of underwear at Challioner & Walker Ltd, our U.K. importer and distributorof ladies non-fashion underwear, were down due to a major customer starting toimport direct half of their purchases. However, this exercise has now beendiscontinued and we are pleased that the Group has recovered this lost business. AIM LISTING ("AIM") On Friday 25 November 2005, Caldwell transferred to AIM, following approval byshareholders at the EGM. The Board believes that AIM is a more appropriatemarket for a company of Caldwell's size and resources. Being on AIM will alsoenable the Group to react more quickly should acquisition or other developmentopportunities arise. On 9 September 2005, the Board appointed Williams de Broeto act as Nominated Advisor and Broker on it's transfer to Aim.Pursuant to this, the Board appointed Bishopsgate Communications Ltd as itsFinancial & Corporate PR and Investor Relations adviser with the brief ofclearly communicating to the financial markets Caldwell's overall strategy andthe strength of its NinaSun and NinaClip patented brands. OUTLOOK I would like to take this opportunity to thank all of our employees, withoutwhose dedication and hard work our hopes and aspirations would come to nothing. It is the Group's strategy to further develop its NinaSun and NinaClipbusinesses and I look forward to updating you with progress in due course. S.J. Wootliff Chairman Monday 28th November 2005 CALDWELL INVESTMENTS P.L.C. RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2005 Consolidated Profit and Loss Account Unaudited Unaudited Audited 6 months 6 months Period ended ended ended 28 February 31 August 2005 30 June 2004 2005 £ £ £Turnover Continuing Operations 2,986,178 2,656,989 6,849,218 Operating (loss)/profit Continuing Operations (333,633) 149,461 4,348 Net interest (payable)/receivable (24,384) (42,191) 7,880(Loss)/profit on ordinary activitiesbefore taxation (358,017) 157,341 (37,843) Tax on profit on ordinary activities (10,000) (19,436) (43,436) (Loss)/profit on ordinary activitiesafter taxation (368,017) 137,905 (81,279) Equity dividends paid and proposed 0 0 0 Retained (loss)/profit for the period (368,017) 137,905 (81,279) (Loss)/earnings per share Basic (2.03p) 0.83p (0.48p)Diluted (2.03p) 0.83p (0.48p) Dividend per share 0 0 0 CALDWELL INVESTMENTS P.L.C. RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2005 Consolidated Balance Sheet Unaudited Unaudited Audited 6 months 6 months Period ended ended ended 28 February 31 August 2005 30 June 2004 2005 £ £ £Fixed assets Intangible fixed assets 547,043 264,176 566,203 Tangible fixed assets 800,073 643,299 819,466 1,347,116 907,475 1,385,669 Current assets Stocks 2,046,399 1,666,435 1,603,388 Debtors 1,285,821 1,581,239 651,504 Cash at bank and in hand 1,188,891 425,866 578,443 4,521,111 3,673,540 2,833,335 Creditors: due within one Year (2,970,538) (2,006,740) (1,444,685) Net current assets 1,550,573 1,666,800 1,388,650 Total assets less current liabilities 2,897,689 2,574,275 2,774,319 Creditors: due after one year (326,012) (364,515) (341,336) Provisions for liabilities and charges 0 0 0 Net assets 2,571,677 2,209,760 2,432,983 Capital and reserves Called up share capital 1,991,196 1,666,250 1,761,250 Share premium account 1,906,229 1,302,559 1,622,799 Capital redemption reserve 27,000 27,000 27,000 Revaluation reserve 27,000 27,000 27,000 Profit and loss account (1,379,748) (813,049) (1,005,066) Equity shareholders' funds 2,571,677 2,209,760 2,432,983 CALDWELL INVESTMENTS P.L.C. RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2005 Consolidated Cash Flow Statement Unaudited Unaudited Audited 6 months 6 months Period ended ended ended 28 February 31 August 2005 30 June 2004 2005 £ £ £ Net cash (outflow)/inflow from operatingactivities (1,242,068) 498,278 1,450,284 Returns on investments and servicing offinanceInterest received 0 30,689 37,896Interest paid (24,384) (22,809) (80,087) (24,384) 7,880 (42,191) Taxation Tax paid (10,000) (64,400) (141,910) Capital expenditure and financialinvestment Purchase of intangible fixed assets (36,608) (4,145) (330,368) Purchase of tangible fixed assets (35,667) (124,984) (330,659) Sale of tangible fixed assets 0 44,944 45,006 (72,275) (84,185) (616,021) Net cash (outflow)/inflow beforefinancing (1,348,727) 357,573 650,162 Financing Issue of shares 513,376 0 415,240 Repayment of loans (21,258) (108,650) (122,113) New loan finance 0 135,000 135,000 492,118 26,350 428,127 (Decrease)/increase in cash in the period (856,609) 383,923 1,078,289 CALDWELL INVESTMENTS P.L.C. RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2005 Notes to the Interim Report 1. The interim financial information for the six months ended 31 August2005 and 30 June 2004 is unaudited but has been prepared on the basis ofaccounting policies consistent with those set out in the audited accounts forthe period ended 28 February 2005. Those accounts were audited, carried anunqualified Auditors Report and have been filed with the Registrar of Companies. The information set out in this interim report does not constitute statutoryaccounts within the meaning of the Companies Act. 2. The calculation of basic and diluted earnings per shared is based onthe loss for the period of £368,017 (2004: profit £137,905) and a weightedaverage number of ordinary shares of 18,124,880 (2004: 16,662,500) 3. Reconciliation of operating (loss)/profit to operating cash flows. Unaudited Unaudited Audited 6 months 6 months Period ended ended ended 28 February 31 August 2005 30 June 2004 2005 £ £ £ Operating (loss)/profit (333,633) 149,461 4,348Depreciation 55,060 21,238 50,231 Amortisation of goodwill and Intangiblefixed assets 55,768 17,975 42,171 (Increase)/decrease in stocks (443,011) (240,206) (177,159)(Increase)/decrease in debtors (634,317) 589,768 1,519,503Increase/(decrease) in creditors 64,730 15,916 39,444Foreign exchange movement (6,665) (55,874) (28,254) Net cash (outflow)/inflow from operatingactivities (1,242,068) 498,278 1,450,284 4. No interim dividend will be paid. 5. Copies of these interim results are being despatched to shareholders. Further copies can be obtained from: The Company Secretary, CaldwellInvestments P.L.C., 647, Roundhay Road, Leeds. LS8 4BA. This information is provided by RNS The company news service from the London Stock Exchange