Interim Results
28 Novembre 2003 - 5:30PM
UK Regulatory
RNS Number:6352S
Worthington Group PLC
28 November 2003
WORTHINGTON GROUP PLC
INTERIM RESULTS - 6 MONTHS ENDED 30 SEPTEMBER 2003
Chairman's Statement
Little has changed since we reported to you last with the Annual Report, the
Group is now in a transitional period pending a merger or acquisition. The
unaudited results now reported are below our expectations.
Worthington Manufacturing in Macclesfield, our only remaining trading
subsidiary, achieved a break-even although this was less than budget. However we
expect a modest improvement in their fortunes in the second half of the year.
This activity is under review because the capital employed in the business
requires a better return than we are currently experiencing, and discussions are
underway as to how to improve their future profitability. In common with most
remaining textile operations in the UK, there is a need to become more
competitive so as to preserve the home market. We therefore have to identify
overseas partners to provide a strategic link-up to maintain market share at
competitive prices.
Overall, the Group made a trading loss of #165,000, in addition to which there
is #155,000 of losses arising from the closure and merger of Armitage Finishing
plus further pension costs of #150,000. Conversely, there is a net credit of
#100,000 being our share of the results of associated undertakings, according to
the application of FRS9. These results also make provision for certain arguable
items of expenditure incurred in previous years.
Our cash position has significantly improved with the only real borrowings
associated with the newly built property at Macclesfield.
Contracts are being exchanged for the sale of the property at Selkirk for
#350,000. The majority of the Keighley site still remains vacant but we are
currently receiving enquiries from prospective tenants and when fully let the
site will provide a valuable source of income for the Group.
We are still actively pursuing ideas and propositions to change the direction of
the Group but so far, very little has been appealing and we can afford to take
our time so as to be certain to add shareholder value.
J C DWEK, CBE
Chairman
27 November, 2003
Enquiries:
Worthington Group plc
J.C. Dwek Tel: 01625 549082
T.R. Roberts Tel: 01625 660056
Consolidated Profit and Loss Account
for the six months ended 30 September 2003
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2003 2002 2003
#'000 #'000 #'000
Turnover: continuing operations 4,750 5,782 10,943
discontinued operations 543 1,887 2,580
5,293 7,669 13,523
Trading Loss
Continuing operations (before exceptionals) (315) (64) (506)
Exceptional items - - 1,688
Discontinued operations (before exceptionals) (79) (212) (405)
Exceptional items (76) - (334)
Operating (loss)/profit (470) (276) 443
Share of profits of associated undertakings 100 66 238
Profit/(loss) on disposal of fixed assets - - (7)
Losses on disposal of discontinued operations - (79) -
(Loss)/profit before interest (370) (289) 674
Net interest (payable)/receivable and similar
items (59) 57 (68)
(Loss)/profit before taxation (429) (232) 606
Taxation 4 - (63)
(Loss)/profit on ordinary activities after
taxation (425) (232) 543
Dividends paid and proposed - - -
Retained (loss)/profit (425) (232) 543
(Loss)/earnings per share
- before exceptional items and disposals (0.3p) (0.1p) (0.7p)
- after exceptional items and disposals (0.4p) (0.2p) 0.5p
Recognised gains and losses
There are no recognised gains or losses in the half year ended 30 September
2003, other than those shown in the above profit and loss account.
Consolidated Balance Sheet
at 30 September 2003
Unaudited Unaudited Audited
30 September 30 September 31 March
2003 2002 2003
#'000 #'000 #'000
Fixed assets
Negative goodwill (24) (52) (48)
Tangible assets 6,562 7,322 6,754
Unlisted investments - 27 -
Interest in associated undertaking 798 720 785
7,336 8,017 7,491
Current assets
Stock 886 1,423 883
Debtors: amounts falling due within one year 2,384 2,959 6,810
Debtors: amounts falling due after more than one
year 894 893 935
Cash at bank and in hand 2 1 2
4,166 5,276 8,630
Creditors: amounts falling due within one year (2,265) (6,102) (6,297)
Net current assets/(liabilities) 1,901 (826) 2,333
Total assets less current liabilities 9,237 7,191 9,824
Creditors: amounts falling due after more than
one year (1,696) - (1,858)
Net assets 7,541 7,191 7,966
Capital and reserves
Called up share capital 11,807 11,807 11,807
Share premium account 9,836 9,836 9,836
Capital reserves 128 128 128
Revaluation reserve 285 285 285
Profit and loss account (14,515) (14,865) (14,090)
Shareholders' funds 7,541 7,191 7,966
Consolidated Cash Flow Statement
for the six months ended 30 September 2003
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2003 2002 2003
#'000 #'000 #'000
Net cash inflow/(outflow) from operating
activities 1,010 (902) (341)
Dividends from associates 66 44 44
Returns on investments and servicing of finance (39) 57 (24)
Taxation 40 199 199
Capital expenditure and financial investment (75) (286) 327
Acquisitions and disposals (35) *560 -
Net cash inflow/(outflow) before financing 967 (328) 205
Financing (163) (151) 1,197
Increase/(decrease) in cash in the period 804 (479) 1,402
Reconciliation of net cash flow to movement in net debt
Increase/(decrease) in cash in the period 804 (479) 1,402
Cash outflow/(inflow) from debt and finance
leases 163 151 (1,197)
Movement in net debt 967 (328) 205
Net debt 1 April (3,105) (3,310) (3,310)
Net debt 30 September/3l March (2,138) (3,638) (3,105)
Reconciliation of operating profit/(loss) to net cash flow from operating
activities
Operating (loss)/profit (470) (276) 443
Closure costs on termination of trading
activities - (79) -
Depreciation and amortisation 243 312 843
(Increase)/decrease in stocks (3) 389 929
Decrease/(increase) in debtors 4,467 914 (2,979)
(Decrease)/increase in creditors (3,227) (2,162) 423
Net cash inflow/(outflow) from operating
activities 1,010 (902) (341)
* This amount in respect of fixed asset disposals was included within capital
expenditure at the year end.
Notes to the Interim Statement
1. The interim accounts have been prepared on the basis of accounting policies
set out in the Group's financial statements for the year ended 31 March 2003.
The interim accounts were approved by the Board on 27 November 2003 and are
unaudited.
Comparative figures for the half year ended 30 September 2002 are extracts
from the interim accounts for that period, are also unaudited and have been
restated to reflect discontinued activities in the current period.
Comparative figures for the year ended 31 March 2003 have been extracted from
the financial statements, which have been filed with the Registrar of
Companies. These were audited and reported upon without qualification by KPMG
Audit Plc and did not contain any statement under section 237 of the
Companies Act 1985. They have been restated to reflect discontinued
activities in the current period.
2. Continuing operations for the half-year include additional contributions of
#150,000 to the Jerome Retirement Benefit Scheme.
3. The taxation charge is calculated by applying the directors' best estimate of
the annual tax rate to the profit for the period.
4. (Loss)/earnings per share is calculated by reference to the average number of
shares in issue in the period, amounting to 118,070,163 shares (six months to
30 September 2002: 118,070,163 shares) and on a loss after taxation of
#425,000 (six months to 30 September 2002: loss of #232,000).
5. Copies of this report and the last annual report and accounts are available
from The Secretary, Worthington Group plc, Fence Avenue, Macclesfield,
Cheshire, SK10 1LW.
This information is provided by RNS
The company news service from the London Stock Exchange
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