Worthington Grp Regulatory News (WRN)

16 Dec 2005 09:17

Worthington Group PLC16 December 2005 WORTHINGTON GROUP PLC Interim Reportfor the half year ended30 September 2005 16 December 2005 CHAIRMAN'S STATEMENT These half year results follow on from the comments and changes which Iannounced in the statement that accompanied the Annual Report. These interim results are our first set of results prepared under InternationalFinancial Reporting Standards (IFRS). While the application of IFRS has nosignificant impact on the reported results for the Group, the results for 2004have been restated in accordance with IFRS. Reconciliation of prior periodresults to those restated under IFRS are shown in Note 3. The main area ofimpact on the Group is the inclusion in the balance sheet of the estimatedpension deficit, which is currently being funded at the rate of £250,000 perannum. This has been included within 'Non-current Liabilities' and themovements in the deficit in the current and prior periods have been included in'Reserves'. On 1st August 2005 the joint venture with Jessop and Baird (Hong Kong) Ltd, inHong Kong and China was effected, and our former subsidiary became an associatedcompany for accounting purposes. The trading results of our former subsidiaryup to 1st August are shown under the heading 'Discontinued Operations' togetherwith a write off of some £30,000 of fixed assets. We have received an offer for the Fence Avenue site in Macclesfield for£2,750,000 which we are pursuing (book value £3,066,000). The anticipated saleof the site at Eccleshill, Bradford did not materialize but we have receivedanother offer at £1,200,000 subject to planning permission. Furthermore, we have now received an offer for the site at Keighley of some£2,500,000 (book value £732,000) which we are expecting to complete at the endof January 2006. Heads of Agreement for this sale have been signed. If these sales are completed then the Group will have some £4,000,000 of cash,after the repayment of all outstanding borrowings together with two investments,namely Trimmings by Design Ltd and Worthington Manufacturing Ltd, and of coursethe continuing liabilities related to the pension scheme. It is envisaged thatall dormant subsidiaries will be wound up before the year end and their assetsand liabilities hived up into Worthington Group plc. The contributions to the pension scheme continue to be a demand on our cash,particularly as our income will be reduced following the sale of the Keighleysite, but some £4,000,000 of funds on final completion of property sales wouldgive us a number of good options. J C Dwek CBE Chairman 16th December 2005 Consolidated Income Statement for the six months ended 30 September 2005 As restated As restated Unaudited Unaudited Audited 6 months ended 6 months ended Year ended 30 September 30 September 31 March 2005 2004 2005 £'000 £'000 £'000Revenue:Continuing operations 67 2,516 4,812Discontinued operations 1,335 - - 1,402 2,516 4,812 Operating LossContinuing operations (before exceptionals) (110) (174) (306)Exceptional items - (672) (872)Discontinued operations (before exceptionals) 59 - -Exceptional items - - - Operating Loss (51) (846) (1,178) Share of profits of associated undertakings 35 125 149Profit/(loss) on disposal of fixed assets (31) - 37Loss before interest (47) (721) (992) Net interest payable and similar items (76) (53) (118) Loss before taxation (123) (774) (1,110) Taxation (10) (37) (44) Loss on ordinary activities after taxation (133) (811) (1,154) Dividends paid and proposed - - - Retained loss (133) (811) (1,154) Loss per share- before exceptional items (1.1p) (1.1p) (2.4p)- after exceptional items (1.1p) (6.9p) (9.8p) Recognised gains and losses There are no recognised gains or losses in the half year ended 30 September2005, other than those shown in the above income statement. Consolidated Balance Sheet at 30 September 2005 As restated As restated Unaudited Unaudited Audited 30 September 30 September 31 March 2005 2004 2005 £'000 £'000 £'000Non-current assets Property, plant and equipment 570 4,717 1,013Interests in associated undertakings 1,119 809 811 1,689 5,526 1,824Current assets Current asset investments 3,447 - 3,480Trade and other receivables 1,516 2,873 2,324Cash at bank and in hand 1 1 1 4,964 2,874 5,805 Total assets 6,653 8,400 7,629 Current liabilitiesTrade and other payables 333 1,215 1,009Bank overdrafts and loans 1,000 862 971 1,333 2,077 1,980 Non-current liabilitiesBank loans 1,250 1,447 1,321 Retirement benefit obligation 2,188 2,518 2,313 3,438 3,965 3,634 Total liabilities 4,771 6,042 5,614 Net assets 1,882 2,358 2,015 Equity Called up share capital 11,807 11,807 11,807Share premium account 9,836 9,836 9,836Capital reserve 128 128 128Revaluation reserve - 285 -Profit and loss account (19,889) (19,698) (19,756) Total Equity 1,882 2,358 2,015 Consolidated Cash Flow Statement for the six months ended 30 September 2005 As restated As restated Unaudited Unaudited Audited 6 months ended 6 months ended Year ended 30 September 30 September 31 March 2005 2004 2005 £'000 £'000 £'000Reconciliation of loss for the period to net cash flowfrom operating activitiesOperating loss for the period (51) (846) (1,178)Depreciation/impairment and goodwill amortisation 51 631 819Movement in trade and other receivables 808 538 1,087Movements in trade and other payables (909) (569) (958)Net cash outflow from operating activities (101) (246) (230) Cash Flow from financing activitiesInterest paid (86) (63) (138)Proceeds from short term loans 100 - -Repayments of borrowings (145) (278) (71)Net cash used in financing activities (57) (208) (416) Cash Flow from investing activitiesInterest received 26 26 52Proceeds on disposal of plant and equipment 403 19 121Purchases of plant and equipment - - (38)Investments in associated undertakings (300)Dividends received from associated undertakings - 66 66Net cash used in investing activities 129 111 201 . . .Decrease in cash and cash equivalents (29) (343) (445) Reconciliation of movement in shareholders' funds Loss for the period (133) (811) (1,154)Net reduction in shareholders' funds (133) (811) (1,154)Opening shareholders' funds 2,015 3,169 3,169Closing shareholders' funds 1,882 2,358 2,015 Worthington Group plc Notes to the Interim Statements for the six months ending 30th September 2005 1. Basis of Accounting The attached interim financial statements are the first interim financialstatements following adoption of International Financial Reporting Standards(IFRS). As the Group has not previously published a full set of financialstatements under IFRS, the content of these statements has been expanded toinclude summarised reconciliation of loss before taxation, net assets andshareholders' funds from previously reported amounts under UK GAAP for yearended 31 March 2005, together with detailed explanations of the main UK GAAP -IFRS differences. EU law (IAS regulation EC 1606/2002) requires that the next annual consolidatedfinancial statements of the company, for the year ending 31 March 2006 beprepared in accordance with International Financial Reporting Standards (IFRSs)adopted for use in the EU ("adopted IFRSs"). The financial information contained in this report has been prepared inaccordance with IFRS standards as adopted by the EU at 30 September 2005 or asexpected to be adopted by the EU at 31 March 2006. The adopted IFRSs that willbe effective (or available for early adoption) in the annual financialstatements for the year ending 31 March 2006 are still subject to change and toadditional interpretation and therefore cannot be determined with certainty.Accordingly, the accounting policies for that annual period will be determinedfinally only when the annual financial statements are prepared for the yearending 31 March 2006. The information for the year ended 31 March 2005 does not constitute statutoryaccounts as defined in section 240 of the Companies Act 1985. A copy of thestatutory accounts for that year has been delivered to the Registrar ofCompanies. The auditors' report on those accounts was unqualified. The preparation of financial statements in conformity with IFRS requiresmanagement to make judgements, estimates and assumptions that affect theapplication of policies and reported amounts of assets, liabilities, income andexpenses. The estimates and assumptions are based on historical experience andother factors considered reasonable at the time, but actual results may differfrom these estimates. Revisions to these estimates are made in the period in which they are recognised. 2. Loss per share Loss per share is calculated by reference to the average number of shares inissue in the period amounting to 11,807,016 shares (six months to 30 September2004: 11,807,016 shares) and on a loss after taxation of £133,000 (six months to30 September 2004: loss of £811,000). The taxation credit is calculated by applying the directors' best estimate ofthe annual tax rate to the loss for the period. Worthington Group plc Notes to the Interim Statements for the six months ending 30th September 2005 3. Reconciliation between IFRS and UK GAAP The tables below set out the reconciliation between the IFRS accountingstandards adopted on 1st April 2005 and the UK GAAP accounting standardspreviously used in the preparation of the Group's accounts. 30 September 2005 30 September 31 March 2005 2004 £'000 £'000 £'000 Loss before Taxation under IFRS (133) (811) (1,154) Retirement benefit contribution adjustment (125) (150) (355) Loss before taxation under UK GAAP (258) (961) (1,509) Net Assets Net assets under IFRS 1,882 2,358 2,015 Retirement benefit obligation 2,188 2,518 2,313 Net assets under UK GAAP 4,070 4,876 4,328 Capital and Reserves Shareholders funds under IFRS 1,882 2,358 2,015 Retained earnings adjustment 2,188 2,518 2,313 Shareholders funds under UK GAAP 4,070 4,876 4,328 4. Availability of Interim Report A copy of this report is being sent to shareholders and copies are availablefrom The Secretary, Worthington Group plc, Suite 1, Courthill House, 66 WaterLane, Wilmslow, Cheshire SK9 5AP. This information is provided by RNS The company news service from the London Stock Exchange