TIDMCPL
RNS Number : 9868C
Chapelthorpe PLC
24 November 2009
Chapelthorpe plc
Interim results for the six months ended 30 September 2009
Chapelthorpe plc, a leading manufacturer of polypropylene fibre which is
supplied to markets worldwide, today announces its interim results for the six
months ended 30 September 2009.
HIGHLIGHTS
* Pre-exceptional operating profits increased to GBP0.4m (2008: GBP0.1m).
* 12% volume decline mainly in automotive and needlepunch staple fibre.
* Sound performances in technical fibre and filament yarn.
* Revenues fell by 18% to GBP39.9m (2008: GBP48.8m) reflecting lower volumes and
lower raw material costs.
* Net debt reduced to GBP3.2m (31 March 2009: GBP6.7m) assisted by working capital
reductions and translation gains.
* IAS 19 UK pension deficit increased to GBP8.8m from GBP2.2m with a commensurate
reduction in Group net assets. This is mainly as a result of falling corporate
bond rates.
Leslie Goodman, Chairman, commented:
"I am pleased to report that our businesses have performed satisfactorily in the
first six months of the year, despite a challenging trading environment.
The Group has made progress in the first half in improving operating returns and
continuing to reduce debt. This has allowed us to invest to support organic
growth and we continue to focus on improving efficiency and margins."
For further information, please contact:
Leslie Goodman
Chapelthorpe plc 0113 285 9020
Ian Powell
Chapelthorpe plc 0113 285 9020
Andrew Emmott
Brewin Dolphin Limited 0845 213 4730
Chairman's Statement
Introduction
I am pleased to report that our businesses have performed satisfactorily in the
first six months of the year, despite a challenging trading environment.
The steps taken in the period leading up to the general economic slowdown have
contributed significantly to the resilience the businesses are now showing. We
continue to keep a strong focus on operational costs and on ensuring the
businesses can react swiftly to changing conditions.
Sales from continuing operations were GBP39.9m (2008: GBP48.8m) generating a
pre-exceptional profit of GBP0.4m, compared to GBP0.1m for the corresponding
period last year. After exceptional items an operating profit of GBP0.55m
resulted (2008: loss of GBP0.04m).
Pre-exceptional earnings before interest, tax, depreciation and amortisation
("EBITDA") for the period were GBP2.0m, an increase of GBP0.55m compared to
GBP1.45m for the same period last year.
US Fibres
Sales for the period were GBP15.2m (2008: GBP18.4m) generating a pre-exceptional
operating loss of GBP0.05m compared to a loss of GBP0.1m in the previous year.
EBITDA for the period was GBP1.1m compared to GBP0.8m in the previous period.
The US operation has continued to suffer from reduced demand from two of its
primary market sectors, automotive and needlepunch and, as a consequence, staple
volumes have fallen by 25% compared to the same period last year. The US
operation received some short-term benefit from the US car scrappage programme
which boosted car sales over the summer. We have downsized the staple operation
to reflect current conditions.
The filament yarn sector, which has better margins than staple, continues to
perform well with filament volumes well ahead of the same period last year.
Further opportunities exist in this sector and we are investing in additional
capacity to support our customers' requirements.
European Fibres
Sales for the period were GBP24.7m (2008: GBP30.4m) generating a pre-exceptional
operating profit of GBP0.7m compared to a profit of GBP0.5m in the previous
year.
EBITDA for the period was GBP1.2m compared to GBP0.9m in the previous period.
Sales volumes have fallen by 9% reflecting a general fall in demand across most
high volume end markets. However we have been able to increase margins as a
result of improved mix and lower raw material prices. In the UK the weakness of
Sterling continues to hamper our Continental competitors. However our Austrian
business has had to cope with strong competition in Europe and has not been
sheltered by the impact of Sterling's weakness.
Raw material prices
All operations in the first quarter benefited from a period of relatively low
and stable raw material prices. However prices in both the US and Europe rose
over the summer and into the autumn, driven in part by reduced output from the
polymer suppliers so that prices in October 2009 were approximately 40% higher
than the low in February 2009.
We have been doing all we can to maintain our margins but the impact of this
price volatility on our margins and volumes in the second half remains to be
seen.
Joint Venture
Specialist Coatings, of which we own 40%, has performed satisfactorily in the
first six months and, after a slow first quarter when market demand for
wallcoverings was subdued, sales picked up well. Overall, Specialist Coatings
contributed GBP43,000 profits in the first six months of the year.
A new plastisol mixing plant has been installed in Kaliningrad, Russia and this
is expected to be fully operational shortly, serving the Eastern European
markets. Work has also commenced in the construction of a larger vinyl base
coating operation.
Onerous Leases
We were able to renegotiate the terms of a leasehold property taken on a number
of years ago, resulting in a release of GBP0.3m of provisions previously
established and leaving a reduced cost of exit of GBP0.9m. However, given the
current difficulties in the commercial property market, we have increased
provisions against another vacant property by GBP0.15m.
Borrowings
At 30 September 2009 our net borrowings were GBP3.2m compared to GBP6.7m at the
31 March 2009.
Our average borrowings for the first six months were GBP5.5m which compares to
GBP14.6m for the same period last year.
The reduction in net debt is largely due to the sale of Specialist Coatings and
also to falls in working capital which reflect the impact of lower raw material
prices and lower activity levels. In addition, translation adjustments on US
borrowings have had a positive overall impact.
Financing costs for the period were GBP1.0m (2008: GBP0.7m). The increase is
due to an GBP0.3m increase in interest on pension scheme liabilities reflecting
the fall in corporate bond yields which dictate the discount rate used to
determine the value of the Scheme's liabilities. On the other hand, we are
receiving poor rates of interest on our Sterling cash due to the low prevailing
UK interest rates.
Dividends
The Directors do not recommend the payment of an interim dividend (2008:
GBPNil).
Pensions
The IAS 19 valuation of our UK defined benefit scheme has resulted in a deficit
of GBP8.8m, a GBP6.6m increase from the deficit of GBP2.2m at 31 March 2009,
causing a commensurate reduction in the Group's net assets. This deterioration
is principally due to the reduction in the discount rate used to determine the
value of the Scheme's liabilities. The discount rate is derived from 'AA'
corporate bond yields which have fallen reflecting the recovery in bond prices
since the financial turmoil of 2008.
The size of the deficit and the amount of increase are of concern to us. We
continue to discuss with the Trustees ways in which it may be possible to
ameliorate the otherwise wholly negative impact of the pension legacy on our
business in terms of costs, the ongoing and increasing liabilities and the
substantial drain on management time.
Strategy and Outlook
The Group has made progress in the first half in improving operating returns and
continuing to reduce debt. This has allowed us to invest to support organic
growth and we continue to focus on improving efficiency and margins. With
current volatilities impacting the trading environment it is still too early to
forecast how the second half will turn out but with our improved financial
position we are well placed to examine new opportunities to develop the
businesses further.
Leslie Goodman
Chairman
24 November 2009
Consolidated income statement (unaudited)
Half year ended 30 September 2009
+------------------------------------------+--------+-----------+-----------+----------+
| | | Half | Half | Year |
| | | year | year | |
+------------------------------------------+--------+-----------+-----------+----------+
| | | 30 | 30 | 31 |
| | | September | September | March |
+------------------------------------------+--------+-----------+-----------+----------+
| | | 2009 | 2008 | 2009 |
+------------------------------------------+--------+-----------+-----------+----------+
| | Notes | GBP000 | GBP000 | GBP000 |
+------------------------------------------+--------+-----------+-----------+----------+
| Continuing operations | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| Revenue | 2 | 39,929 | 48,792 | 86,214 |
+------------------------------------------+--------+-----------+-----------+----------+
| Cost of sales | | (34,649) | (44,148) | (77,464) |
+------------------------------------------+--------+-----------+-----------+----------+
| Gross profit | | 5,280 | 4,644 | 8,750 |
+------------------------------------------+--------+-----------+-----------+----------+
| Operating expenses | | (4,729) | (4,679) | (10,477) |
+------------------------------------------+--------+-----------+-----------+----------+
| Operating profit (loss) | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| Operating profit (loss) before | | 387 | 95 | (124) |
| exceptional items | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| Exceptional items | 3 | 164 | (130) | (1,603) |
+------------------------------------------+--------+-----------+-----------+----------+
| Operating profit (loss) | 2 | 551 | (35) | (1,727) |
+------------------------------------------+--------+-----------+-----------+----------+
| Financial expenses | | (1,015) | (765) | (1,772) |
+------------------------------------------+--------+-----------+-----------+----------+
| Financial income | | 30 | 32 | 241 |
+------------------------------------------+--------+-----------+-----------+----------+
| Net financing costs | 4 | (985) | (733) | (1,531) |
+------------------------------------------+--------+-----------+-----------+----------+
| Share of profit (losses) of joint | | 43 | ? | (70) |
| venture | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| Loss before taxation | | (391) | (768) | (3,328) |
+------------------------------------------+--------+-----------+-----------+----------+
| Taxation | | (135) | 183 | 582 |
+------------------------------------------+--------+-----------+-----------+----------+
| Loss for the period from continuing | | (526) | (585) | (2,746) |
| operations | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| Profit from discontinued operations | 5 | ? | 180 | 731 |
+------------------------------------------+--------+-----------+-----------+----------+
| Loss for the period attributable to | | (526) | (405) | (2,015) |
| equity shareholders | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| Loss per share | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| Basic and diluted | 7 | (2.63)p | (2.01)p | (9.99)p |
+------------------------------------------+--------+-----------+-----------+----------+
Statement of comprehensive income (unaudited)
half year ended 30 September 2009
+--------------------------------------------------+-----------+-----------+---------+
| | Half | Half | Year |
| | year | year | |
+--------------------------------------------------+-----------+-----------+---------+
| | 30 | 30 | 31 |
| | September | September | March |
+--------------------------------------------------+-----------+-----------+---------+
| | 2009 | 2008 | 2009 |
+--------------------------------------------------+-----------+-----------+---------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------------+-----------+-----------+---------+
| Actuarial (losses) gains on defined benefit | (6,060) | 230 | (1,819) |
| pension schemes | | | |
+--------------------------------------------------+-----------+-----------+---------+
| Movement in share of joint venture defined | (699) | ? | ? |
| benefit pension deficit | | | |
+--------------------------------------------------+-----------+-----------+---------+
| Movement in restriction of retirement benefit | ? | 8 | ? |
| asset | | | |
+--------------------------------------------------+-----------+-----------+---------+
| Exchange differences on translation of foreign | (882) | 713 | 2,842 |
| operations | | | |
+--------------------------------------------------+-----------+-----------+---------+
| Gains (losses) in fair value of hedging | 95 | 86 | (78) |
| derivatives | | | |
+--------------------------------------------------+-----------+-----------+---------+
| Other comprehensive income (expense) for the | (7,546) | 1,037 | 945 |
| period | | | |
+--------------------------------------------------+-----------+-----------+---------+
| Loss for the period | (526) | (405) | (2,015) |
+--------------------------------------------------+-----------+-----------+---------+
| Total comprehensive income (expense) for the | (8,072) | 632 | (1,070) |
| period | | | |
| (attributable to equity shareholders) | | | |
+--------------------------------------------------+-----------+-----------+---------+
Consolidated statement of financial position (unaudited)
Half year ended 30 September 2009
+------------------------------------------+--------+-----------+-----------+----------+
| | | 30 | 30 | 31 |
| | | September | September | March |
+------------------------------------------+--------+-----------+-----------+----------+
| | | 2009 | 2008 | 2009 |
+------------------------------------------+--------+-----------+-----------+----------+
| | Notes | GBP000 | GBP000 | GBP000 |
| | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| Non-current assets | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| Property, plant and equipment | | 21,373 | 21,521 | 24,358 |
+------------------------------------------+--------+-----------+-----------+----------+
| Investments ? joint ventures | 6 | ? | ? | 656 |
+------------------------------------------+--------+-----------+-----------+----------+
| Other non-current assets | | 661 | 568 | 668 |
+------------------------------------------+--------+-----------+-----------+----------+
| | | 22,034 | 22,089 | 25,682 |
+------------------------------------------+--------+-----------+-----------+----------+
| Current assets | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| Inventories | | 6,061 | 7,845 | 6,949 |
+------------------------------------------+--------+-----------+-----------+----------+
| Trade and other receivables | | 12,731 | 19,028 | 11,975 |
+------------------------------------------+--------+-----------+-----------+----------+
| Current tax assets | | ? | ? | 357 |
+------------------------------------------+--------+-----------+-----------+----------+
| Other financial assets | | ? | 12 | 1 |
+------------------------------------------+--------+-----------+-----------+----------+
| Cash and cash equivalents | | 12,151 | 4,197 | 10,611 |
+------------------------------------------+--------+-----------+-----------+----------+
| | | 30,943 | 31,082 | 29,893 |
+------------------------------------------+--------+-----------+-----------+----------+
| Assets classified as held for sale | | ? | 10,311 | ? |
+------------------------------------------+--------+-----------+-----------+----------+
| | | 30,943 | 41,393 | 29,893 |
+------------------------------------------+--------+-----------+-----------+----------+
| Current liabilities | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| Trade and other payables | | (11,400) | (12,118) | (9,674) |
+------------------------------------------+--------+-----------+-----------+----------+
| Current tax liabilities | | (248) | (268) | (294) |
+------------------------------------------+--------+-----------+-----------+----------+
| Other financial liabilities | | (256) | (101) | (295) |
+------------------------------------------+--------+-----------+-----------+----------+
| Borrowings and bank overdrafts | | (7,140) | (7,812) | (7,056) |
+------------------------------------------+--------+-----------+-----------+----------+
| Liabilities directly associated with | | ? | (8,999) | ? |
| assets | | | | |
| classified as held for sale | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| | | (19,044) | (29,298) | (17,319) |
+------------------------------------------+--------+-----------+-----------+----------+
| Net current assets | | 11,899 | 12,095 | 12,574 |
+------------------------------------------+--------+-----------+-----------+----------+
| Non-current liabilities | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| Retirement benefit obligations | 9 | (10,722) | (1,625) | (4,045) |
+------------------------------------------+--------+-----------+-----------+----------+
| Other financial liabilities | | (800) | (866) | (859) |
+------------------------------------------+--------+-----------+-----------+----------+
| Borrowings | | (8,260) | (8,706) | (10,249) |
+------------------------------------------+--------+-----------+-----------+----------+
| Provisions and other liabilities | | (2,179) | (1,278) | (2,254) |
+------------------------------------------+--------+-----------+-----------+----------+
| Deferred tax liabilities | | (4,256) | (4,182) | (5,024) |
+------------------------------------------+--------+-----------+-----------+----------+
| | | (26,217) | (16,657) | (22,431) |
+------------------------------------------+--------+-----------+-----------+----------+
| Net assets | | 7,716 | 17,527 | 15,825 |
+------------------------------------------+--------+-----------+-----------+----------+
| | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| Shareholders' equity | | | | |
+------------------------------------------+--------+-----------+-----------+----------+
| Called up share capital | | 10,202 | 10,202 | 10,202 |
+------------------------------------------+--------+-----------+-----------+----------+
| Share premium reserve | | 1,251 | 1,251 | 1,251 |
+------------------------------------------+--------+-----------+-----------+----------+
| Other reserves | | 1,118 | (91) | 1,874 |
+------------------------------------------+--------+-----------+-----------+----------+
| Retained earnings | | (4,855) | 6,165 | 2,498 |
+------------------------------------------+--------+-----------+-----------+----------+
| Total shareholders' funds | | 7,716 | 17,527 | 15,825 |
+------------------------------------------+--------+-----------+-----------+----------+
Consolidated statement of changes in shareholders' equity (unaudited)
Half year ended 30 September 2009
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| | | | Cash | Foreign | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| | | Share | flow | currency | Capital | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| | Share | premium | hedging | translation | redemption | Retained | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| | capital | reserve | reserve | reserve | reserve | earnings | Total |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Balance at 1 April | 10,202 | 1,251 | (240) | (1,137) | 487 | 6,322 | 16,885 |
| 2008 | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Loss for the period | - | - | - | - | - | (405) | (405) |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Other comprehensive | | | | | | | |
| income: | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Currency translation | - | - | - | 713 | - | - | 713 |
| adjustments | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Actuarial gains on | - | - | - | - | - | 230 | 230 |
| pension scheme | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Movement in | - | - | - | - | - | 8 | 8 |
| restriction of | | | | | | | |
| retirement benefit | | | | | | | |
| assets | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Increase in fair value | - | - | 86 | - | - | - | 86 |
| of hedging derivatives | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Total comprehensive | 10,202 | 1,251 | (154) | (424) | 487 | 6,155 | 17,517 |
| income for the period | | | | | | | |
| ended 30 September | | | | | | | |
| 2008 | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Transactions with | | | | | | | |
| owners: | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Share options - | - | - | - | - | - | 10 | 10 |
| value of employee | | | | | | | |
| services | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Balance at 30 | 10,202 | 1,251 | (154) | (424) | 487 | 6,165 | 17,527 |
| September 2008 | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Balance at 1 April | 10,202 | 1,251 | (240) | (1,137) | 487 | 6,322 | 16,885 |
| 2008 | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Loss for the period | - | - | - | - | - | (2,015) | (2,015) |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Other comprehensive | | | | | | | |
| income: | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Currency translation | - | - | - | 2,842 | - | - | 2,842 |
| adjustments | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Actuarial losses on | - | - | - | - | - | (1,819) | (1,819) |
| pension scheme | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Decrease in fair value | - | - | (78) | - | - | - | (78) |
| of hedging derivatives | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Total comprehensive | 10,202 | 1,251 | (318) | 1,705 | 487 | 2,488 | 15,815 |
| income for the period | | | | | | | |
| ended 31 March 2009 | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Transactions with | | | | | | | |
| owners: | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Share options - value | - | - | - | - | - | 10 | 10 |
| of employee services | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Balance at 31 March | 10,202 | 1,251 | (318) | 1,705 | 487 | 2,498 | 15,825 |
| 2009 | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Balance at 1 April | 10,202 | 1,251 | (318) | 1,705 | 487 | 2,498 | 15,825 |
| 2009 | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Loss for the period | - | - | - | - | - | (526) | (526) |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Other comprehensive | | | | | | | |
| income: | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Currency translation | - | - | 31 | (882) | - | - | (851) |
| adjustments | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Actuarial losses on | - | - | - | - | - | (6,060) | (6,060) |
| pension scheme | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Movement in share of | ? | ? | ? | ? | ? | (699) | (699) |
| joint venture defined | | | | | | | |
| benefit pension | | | | | | | |
| deficit | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Increase in fair value | - | - | 95 | - | - | - | 95 |
| of hedging derivatives | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Total comprehensive | 10,202 | 1,251 | (192) | 823 | 487 | (4,787) | 7,784 |
| income for the period | | | | | | | |
| ended 30 September | | | | | | | |
| 2009 | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Transactions with | | | | | | | |
| owners: | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Share options - value | - | - | - | - | - | 10 | 10 |
| of employee services | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| - purchase of shares | - | - | - | - | - | (78) | (78) |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
| Balance at 30 | 10,202 | 1,251 | (192) | 823 | 487 | (4,855) | 7,716 |
| September 2009 | | | | | | | |
+------------------------+---------+---------+---------+-------------+------------+----------+---------+
Consolidated statement of cash flows (unaudited)
half year ended 30 September 2009
+------------------------------------------+--------+-----------+-----------+---------+
| | | Half | Half | Year |
| | | year | year | |
+------------------------------------------+--------+-----------+-----------+---------+
| | | 30 | 30 | 31 |
| | | September | September | March |
+------------------------------------------+--------+-----------+-----------+---------+
| | | 2009 | 2008 | 2009 |
+------------------------------------------+--------+-----------+-----------+---------+
| | Notes | GBP000 | GBP000 | GBP000 |
+------------------------------------------+--------+-----------+-----------+---------+
| Cash flows from operating activities | | | | |
+------------------------------------------+--------+-----------+-----------+---------+
| Cash generated from (used in) operations | 8 | 3,497 | (892) | 1,313 |
+------------------------------------------+--------+-----------+-----------+---------+
| Tax paid | | (94) | (162) | (205) |
+------------------------------------------+--------+-----------+-----------+---------+
| Interest received | | 30 | 32 | 91 |
+------------------------------------------+--------+-----------+-----------+---------+
| Interest paid | | (347) | (558) | (1,037) |
+------------------------------------------+--------+-----------+-----------+---------+
| Net cash generated from (used in) | | 3,086 | (1,580) | 162 |
| operating activities | | | | |
+------------------------------------------+--------+-----------+-----------+---------+
| Cash flows from investing activities | | | | |
+------------------------------------------+--------+-----------+-----------+---------+
| Purchases of property, plant and | | (501) | (101) | (241) |
| equipment | | | | |
+------------------------------------------+--------+-----------+-----------+---------+
| Proceeds from sale of property, plant | | 7 | 5 | 5 |
| and equipment | | | | |
+------------------------------------------+--------+-----------+-----------+---------+
| Proceeds from sale of business | | - | - | 5,199 |
+------------------------------------------+--------+-----------+-----------+---------+
| Net cash (used in) generated | | (494) | (96) | 4,963 |
| from investing activities | | | | |
+------------------------------------------+--------+-----------+-----------+---------+
| Cash flows from financing activities | | | | |
+------------------------------------------+--------+-----------+-----------+---------+
| Net proceeds from issue of new bank | | - | - | 439 |
| loans | | | | |
+------------------------------------------+--------+-----------+-----------+---------+
| Repayment of borrowings | | (1,100) | (633) | (1,422) |
+------------------------------------------+--------+-----------+-----------+---------+
| Purchase of own shares by employee | | (78) | - | - |
| benefit trust | | | | |
+------------------------------------------+--------+-----------+-----------+---------+
| Net cash (used in) financing activities | | (1,178) | (633) | (983) |
+------------------------------------------+--------+-----------+-----------+---------+
| Net increase (decrease) in cash and cash | | 1,414 | (2,309) | 4,142 |
| equivalents | | | | |
+------------------------------------------+--------+-----------+-----------+---------+
| Cash and bank overdrafts at beginning of | | 4,957 | 1,659 | 1,657 |
| the period | | | | |
+------------------------------------------+--------+-----------+-----------+---------+
| Exchange gains (losses) on cash and bank | | 36 | 79 | (842) |
| overdrafts | | | | |
+------------------------------------------+--------+-----------+-----------+---------+
| Cash and cash equivalents at end of the | | 6,407 | (571) | 4,957 |
| period | | | | |
+------------------------------------------+--------+-----------+-----------+---------+
Consolidated reconciliation of net cash flow to movement in net debt (unaudited)
half year ended 30 September 2009
+--------------------------------------------------+-----------+-----------+---------+
| | Half | Half | Year |
| | year | year | |
+--------------------------------------------------+-----------+-----------+---------+
| | 30 | 30 | 31 |
| | September | September | March |
+--------------------------------------------------+-----------+-----------+---------+
| | 2009 | 2008 | 2009 |
+--------------------------------------------------+-----------+-----------+---------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------------+-----------+-----------+---------+
| Net increase (decrease) in cash and cash | 1,414 | (2,309) | 4,142 |
| equivalents | | | |
+--------------------------------------------------+-----------+-----------+---------+
| Decrease in debt and lease financing | 1,100 | 633 | 1,111 |
+--------------------------------------------------+-----------+-----------+---------+
| Change in net debt from cash flows | 2,514 | (1,676) | 5,253 |
+--------------------------------------------------+-----------+-----------+---------+
| Exchange adjustments | 931 | (601) | (3,527) |
+--------------------------------------------------+-----------+-----------+---------+
| Movement in net debt in the period | 3,445 | (2,277) | 1,726 |
+--------------------------------------------------+-----------+-----------+---------+
| Net debt at start of period | (6,694) | (8,420) | (8,420) |
+--------------------------------------------------+-----------+-----------+---------+
| Net debt at end of period | (3,249) | (10,697) | (6,694) |
+--------------------------------------------------+-----------+-----------+---------+
Notes to the interim accounts
half year ended 30 September 2009
1. Basis of preparation
The interim financial statements of Chapelthorpe plc for the half year ended 30
September 2009 are unaudited and do not comprise statutory accounts within the
meaning of Section 240 of the Companies Act 1985.
The financial information has been prepared on the basis of the accounting
policies set out in the Group's Annual Report and Accounts for the year ended 31
March 2009 which is available on the Company's website at www.chapelthorpe.com.
The comparative results for the year ended 31 March 2009 are abridged and as
such do not represent statutory accounts. Those accounts have been reported on
by the Company's auditors and delivered to the Registrar of Companies. The
Independent Auditors' Report was unqualified and did not contain statements
under Section 237(2) or (3) of the Companies Act 1985.
The following new standards, and amendments to standards, are mandatory for the
first time for the financial year beginning 1 April 2009 and have been adopted
during the period:
IAS 1 (revised) "Presentation of Financial Statements". The revised standard
prohibits the presentation of items of income and expenses (that is 'non-owner
changes in equity') in the statement of changes in equity, requiring 'non-owner
changes in equity' to be presented separately from owner changes in equity. All
'non-owner changes in equity are required to be shown in a performance
statement. Entities can decide whether to present one performance statement (the
statement of comprehensive income) or two statements (the income statement and
the statement of comprehensive income). The Group has elected to present two
statements and these interim financial statements have been prepared under the
revised disclosure requirements.
IFRS 8 "Operating Segments". IFRS 8 replaces IAS 14 "Segment Reporting" and
requires a 'management approach' under which segmental information is presented
on the same basis as that used for internal reporting purposes. As a result,
EBITDA has now been included in the segmental disclosure.
2. Segmental reporting
Until 13 June 2007, the Group was organised on a worldwide basis into three
business segments: Fibres, Specialist Coatings and Umbrella Frames. On 13 June
2007 the Umbrella Frames operation was sold and on
30 October 2008, the Group sold a 60% holding in the Specialist Coatings
operation, leaving Fibres as the sole remaining business segment. The Fibres
operation is organised into a European and a US segment.
+-----------------+----------+--------+--------+--------------+--------+-+----------------+
| | Continuing operations | | Discontinued |
| | | | operations |
+-----------------+----------------------------------------------------+-+----------------+
| | European | US | Total | | | | Specialist |
+-----------------+----------+--------+--------+--------------+--------+-+----------------+
| Half year ended | Fibres | Fibres | Fibres | Un-allocated | Total | | Coatings |
| | | | | | | | |
+-----------------+----------+--------+--------+--------------+--------+-+----------------+
| 30 September | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | | GBP000 |
| 2009 | | | | | | | |
+-----------------+----------+--------+--------+--------------+--------+-+----------------+
| Revenue | 24,730 | 15,199 | 39,929 | ? | 39,929 | | ? |
+-----------------+----------+--------+--------+--------------+--------+-+----------------+
| EBITDA* | 1,176 | 1,099 | 2,275 | (275) | 2,000 | | ? |
+-----------------+----------+--------+--------+--------------+--------+-+----------------+
| Operating | 711 | (49) | 662 | (275) | 387 | | ? |
| profit (loss) | | | | | | | |
| before | | | | | | | |
| exceptional | | | | | | | |
| items | | | | | | | |
+-----------------+----------+--------+--------+--------------+--------+-+----------------+
| Exceptional | ? | ? | ? | 164 | 164 | | ? |
| items | | | | | | | |
+-----------------+----------+--------+--------+--------------+--------+-+----------------+
| Operating | 711 | (49) | 662 | (111) | 551 | | ? |
| profit (loss) | | | | | | | |
+-----------------+----------+--------+--------+--------------+--------+-+----------------+
| Net financial | 32 | (131) | (99) | (886) | (985) | | ? |
| expense | | | | | | | |
+-----------------+----------+--------+--------+--------------+--------+-+----------------+
| Share of joint | ? | ? | ? | 43 | 43 | | ? |
| venture profits | | | | | | | |
+-----------------+----------+--------+--------+--------------+--------+-+----------------+
| Profit (loss) | 743 | (180) | 563 | (954) | (391) | | ? |
| before taxation | | | | | | | |
+-----------------+----------+--------+--------+--------------+--------+-+----------------+
| Taxation | | | | | (135) | | ? |
+-----------------+----------+--------+--------+--------------+--------+-+----------------+
| (Loss) for the | | | | | (526) | | ? |
| period | | | | | | | |
+-----------------+----------+--------+--------+--------------+--------+-+----------------+
* EBITDA is pre-exceptional earnings before interest, tax, depreciation and
amortisation.
+----------------+----------+----------+----------+--------------+----------+-+----+--------------+
| | Continuing operations | |Discontinued |
| | | | operations |
+----------------+----------------------------------------------------------+------+--------------+
| | European | US | Total | | | | Specialist |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Half year | Fibres | Fibres | Fibres | Un-allocated | Total | | Coatings |
| ended | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| 30 September | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | | GBP000 |
| 2008 | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Revenue | 30,404 | 18,388 | 48,792 | - | 48,792 | | 11,892 |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| EBITDA* | 926 | 816 | 1,742 | (295) | 1,447 | | 839 |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Operating | 489 | (99) | 390 | (295) | 95 | | 643 |
| profit (loss) | | | | | | | |
| before | | | | | | | |
| exceptional | | | | | | | |
| items | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Exceptional | - | - | - | (130) | (130) | | (179) |
| items | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Operating | 489 | (99) | 390 | (425) | (35) | | 464 |
| profit (loss) | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Net financial | (206) | (247) | (453) | (280) | (733) | | (159) |
| expense | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Profit (loss) | 283 | (346) | (63) | (705) | (768) | | 305 |
| before | | | | | | | |
| taxation | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Taxation | | | | | 183 | | (125) |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| (Loss) profit | | | | | (585) | | 180 |
| for the period | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+----+--------------+
+----------------+----------+----------+----------+--------------+----------+-+----+--------------+
| | Continuing operations | |Discontinued |
| | | | operations |
+----------------+----------------------------------------------------------+------+--------------+
| | European | US | Total | | | | Specialist |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Year ended | Fibres | Fibres | Fibres | Un-allocated | Total | | Coatings |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| 31 March 2009 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | | GBP000 |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Revenue | 53,720 | 32,494 | 86,214 | - | 86,214 | | 13,919 |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| EBITDA* | 2,061 | 1,412 | 3,473 | (632) | 2,841 | | 1,069 |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Operating | 1,160 | (652) | 508 | (632) | (124) | | 837 |
| profit (loss) | | | | | | | |
| before | | | | | | | |
| exceptional | | | | | | | |
| items | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Exceptional | (217) | - | (217) | (1,386) | (1,603) | | - |
| items | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Operating | 943 | (652) | 291 | (2,018) | (1,727) | | 837 |
| profit (loss) | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Net financial | (310) | (490) | (800) | (731) | (1,531) | | (160) |
| expense | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Share of joint | ? | ? | ? | (70) | (70) | | ? |
| venture losses | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Profit (loss) | 633 | (1,142) | (509) | (2,819) | (3,328) | | 677 |
| before | | | | | | | |
| taxation | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Taxation | | | | | 582 | | (160) |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| Group profit | | | | | ? | | 214 |
| on sale of | | | | | | | |
| discontinued | | | | | | | |
| operations | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+-------------------+
| (Loss) profit | | | | | (2,746) | | 731 |
| for the period | | | | | | | |
+----------------+----------+----------+----------+--------------+----------+-+----+--------------+
The Group operations are based in two main geographical regions being Europe and
North America. The UK is the home of the Parent Company.
The revenue analysis in the table below is based on the location of the
customer:
+--------------------------------------------------+-----------+-----------+--------+
| | Half | Half | Year |
| | year | year | |
+--------------------------------------------------+-----------+-----------+--------+
| | 30 | 30 | 31 |
| | September | September | March |
+--------------------------------------------------+-----------+-----------+--------+
| | 2009 | 2008 | 2009 |
+--------------------------------------------------+-----------+-----------+--------+
| Continuing operations | GBP000 | GBP000 | GBP000 |
+--------------------------------------------------+-----------+-----------+--------+
| Europe | 22,506 | 26,605 | 47,200 |
+--------------------------------------------------+-----------+-----------+--------+
| North America | 15,428 | 18,764 | 33,263 |
+--------------------------------------------------+-----------+-----------+--------+
| Australasia and Far East | 1,787 | 3,169 | 4,768 |
+--------------------------------------------------+-----------+-----------+--------+
| Rest of the World | 208 | 254 | 983 |
+--------------------------------------------------+-----------+-----------+--------+
| | 39,929 | 48,792 | 86,214 |
+--------------------------------------------------+-----------+-----------+--------+
+--------------------------------------------------+-----------+-----------+--------+
| | Half | Half | Year |
| | year | year | |
+--------------------------------------------------+-----------+-----------+--------+
| | 30 | 30 | 31 |
| | September | September | March |
+--------------------------------------------------+-----------+-----------+--------+
| | 2009 | 2008 | 2009 |
+--------------------------------------------------+-----------+-----------+--------+
| Discontinued operations | GBP000 | GBP000 | GBP000 |
+--------------------------------------------------+-----------+-----------+--------+
| Europe | ? | 11,735 | 13,713 |
+--------------------------------------------------+-----------+-----------+--------+
| North America | ? | - | - |
+--------------------------------------------------+-----------+-----------+--------+
| Australasia and Far East | ? | - | 206 |
+--------------------------------------------------+-----------+-----------+--------+
| Rest of the World | ? | 157 | - |
+--------------------------------------------------+-----------+-----------+--------+
| | ? | 11,892 | 13,919 |
+--------------------------------------------------+-----------+-----------+--------+
3. Exceptional items
During the period, the Group has incurred a number of exceptional Items,
analysed as follows:
+--------------------------------------------------+-----------+-----------+--------+
| | Half | Half | Year |
| | year | year | |
+--------------------------------------------------+-----------+-----------+--------+
| | 30 | 30 | 31 |
| | September | September | March |
+--------------------------------------------------+-----------+-----------+--------+
| | 2009 | 2008 | 2009 |
+--------------------------------------------------+-----------+-----------+--------+
| Continuing operations | GBP000 | GBP000 | GBP000 |
+--------------------------------------------------+-----------+-----------+--------+
| Fibres restructuring | - | - | 217 |
+--------------------------------------------------+-----------+-----------+--------+
| Head office restructuring | - | - | 124 |
+--------------------------------------------------+-----------+-----------+--------+
| Provision for onerous leases | (164) | - | 1,150 |
+--------------------------------------------------+-----------+-----------+--------+
| Strategic corporate and pension advice | - | 130 | 112 |
+--------------------------------------------------+-----------+-----------+--------+
| Net (credit) charge relating to exceptional | (164) | 130 | 1,603 |
| items | | | |
+--------------------------------------------------+-----------+-----------+--------+
Exceptional items in relation to the discontinued operations are shown in Note
5.
4. Net financing costs
+--------------------------------------------------+-----------+-----------+--------+
| | Half | Half | Year |
| | year | year | |
+--------------------------------------------------+-----------+-----------+--------+
| | 30 | 30 | 31 |
| | September | September | March |
+--------------------------------------------------+-----------+-----------+--------+
| | 2009 | 2008 | 2009 |
+--------------------------------------------------+-----------+-----------+--------+
| Continuing operations | GBP000 | GBP000 | GBP000 |
+--------------------------------------------------+-----------+-----------+--------+
| Interest payable | | | |
+--------------------------------------------------+-----------+-----------+--------+
| Bank loans, overdrafts and short-term facilities | 313 | 370 | 1,014 |
+--------------------------------------------------+-----------+-----------+--------+
| Preference share dividends | 23 | 23 | 46 |
+--------------------------------------------------+-----------+-----------+--------+
| Finance leases | ? | - | - |
+--------------------------------------------------+-----------+-----------+--------+
| Other interest | 59 | 42 | 95 |
+--------------------------------------------------+-----------+-----------+--------+
| | 395 | 435 | 1,155 |
+--------------------------------------------------+-----------+-----------+--------+
| Interest receivable | | | |
+--------------------------------------------------+-----------+-----------+--------+
| Bank and other deposits | (30) | (31) | (80) |
+--------------------------------------------------+-----------+-----------+--------+
| Interest receivable from discontinued operations | ? | - | (158) |
+--------------------------------------------------+-----------+-----------+--------+
| Other interest | ? | (1) | (3) |
+--------------------------------------------------+-----------+-----------+--------+
| | (30) | (32) | (241) |
+--------------------------------------------------+-----------+-----------+--------+
| Net borrowing costs | 365 | 403 | 914 |
+--------------------------------------------------+-----------+-----------+--------+
| Interest on pension scheme liabilities | 620 | 330 | 617 |
+--------------------------------------------------+-----------+-----------+--------+
| Net financing costs | 985 | 733 | 1,531 |
+--------------------------------------------------+-----------+-----------+--------+
| Interest payable | 395 | 435 | 1,155 |
+--------------------------------------------------+-----------+-----------+--------+
| Interest payable on pension scheme liabilities | 620 | 330 | 617 |
+--------------------------------------------------+-----------+-----------+--------+
| Total financial expense | 1,015 | 765 | 1,772 |
+--------------------------------------------------+-----------+-----------+--------+
| Interest receivable | (30) | (32) | (241) |
+--------------------------------------------------+-----------+-----------+--------+
| Net financing costs | 985 | 733 | 1,531 |
+--------------------------------------------------+-----------+-----------+--------+
5. Discontinued operations
On 30 October 2008, 60% of the share capital of Speciality Coatings (Darwen)
Limited was sold for GBP1,600,000. In addition, Speciality Coatings (Darwen)
Limited repaid GBP4,000,000 of inter-company borrowings at completion. The Group
has provided a guarantee of up to GBP1.5m in respect of Speciality Coatings
(Darwen) Limited borrowings. This guarantee can only be called upon in certain
limited circumstances and will reduce on a quarterly basis in amounts of
GBP250,000 over the period ending 1 January 2010.
As a result, the Specialist Coatings and the Umbrella Frames operations, in
accordance with IFRS 5, have been accounted for as discontinued operations.
Financial information relating to these discontinued operations is set out
below.
(i) Result
The results of the discontinued operations which have been included in the
Consolidated Income Statement are as follows:
+--------------------------------------------------+-----------+-----------+----------+
| | Half | Half | Year |
| | year | year | |
+--------------------------------------------------+-----------+-----------+----------+
| | 30 | 30 | 31 |
| | September | September | March |
+--------------------------------------------------+-----------+-----------+----------+
| | 2009 | 2008 | 2009 |
+--------------------------------------------------+-----------+-----------+----------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------------+-----------+-----------+----------+
| Revenue | ? | 11,892 | 13,919 |
+--------------------------------------------------+-----------+-----------+----------+
| Cost of sales | ? | (10,395) | (12,087) |
+--------------------------------------------------+-----------+-----------+----------+
| Gross profit | ? | 1,497 | 1,832 |
+--------------------------------------------------+-----------+-----------+----------+
| Operating expense | ? | (1,033) | (995) |
+--------------------------------------------------+-----------+-----------+----------+
| Operating profit | ? | | |
+--------------------------------------------------+-----------+-----------+----------+
| Operating profit before exceptional items | ? | 643 | 837 |
+--------------------------------------------------+-----------+-----------+----------+
| Exceptional items (see Note 5(ii)) | ? | (179) | - |
+--------------------------------------------------+-----------+-----------+----------+
| Operating profit | ? | 464 | 837 |
+--------------------------------------------------+-----------+-----------+----------+
| Net financing costs | ? | (159) | (160) |
+--------------------------------------------------+-----------+-----------+----------+
| Profit before taxation | ? | 305 | 677 |
+--------------------------------------------------+-----------+-----------+----------+
| Taxation | ? | (125) | (160) |
+--------------------------------------------------+-----------+-----------+----------+
| Profit for the period | ? | 180 | 517 |
+--------------------------------------------------+-----------+-----------+----------+
| Group profit on sale of discontinued operations | ? | ? | 214 |
+--------------------------------------------------+-----------+-----------+----------+
| Profit for the period from discontinued | ? | 180 | 731 |
| operations | | | |
+--------------------------------------------------+-----------+-----------+----------+
The discontinued results relate only to the Specialist Coatings operation.
(ii) Exceptional items
+--------------------------------------------------+-----------+-----------+--------+
| | Half | Half | Year |
| | year | year | |
+--------------------------------------------------+-----------+-----------+--------+
| | 30 | 30 | 31 |
| | September | September | March |
+--------------------------------------------------+-----------+-----------+--------+
| | 2009 | 2008 | 2009 |
+--------------------------------------------------+-----------+-----------+--------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------------+-----------+-----------+--------+
| Costs incurred in connection with ongoing sale | ? | 179 | ? |
| of Specialist Coatings business and assets | | | |
+--------------------------------------------------+-----------+-----------+--------+
| | ? | 179 | ? |
+--------------------------------------------------+-----------+-----------+--------+
+--------------------------------------------------+-----------+-----------+---------+
| | Half | Half | Year |
| | year | year | |
+--------------------------------------------------+-----------+-----------+---------+
| | 30 | 30 | 31 |
| | September | September | March |
+--------------------------------------------------+-----------+-----------+---------+
| | 2009 | 2008 | 2009 |
+--------------------------------------------------+-----------+-----------+---------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------------+-----------+-----------+---------+
| | | | |
+--------------------------------------------------+-----------+-----------+---------+
| (iii) Cash flows from discontinued operations | | | |
+--------------------------------------------------+-----------+-----------+---------+
| Net cash flows from operating activities | ? | (896) | (2,280) |
+--------------------------------------------------+-----------+-----------+---------+
| Net cash flows from investing activities | ? | (26) | (4,026) |
+--------------------------------------------------+-----------+-----------+---------+
| Net cash flows from financing activities | ? | (25) | (38) |
+--------------------------------------------------+-----------+-----------+---------+
| Net (decrease) in cash and cash equivalents | ? | (947) | (6,344) |
+--------------------------------------------------+-----------+-----------+---------+
6. Investments - joint ventures
+--------------------------------------------------+-----------+-----------+--------+
| | Half | Half | Year |
| | year | year | |
+--------------------------------------------------+-----------+-----------+--------+
| | 30 | 30 | 31 |
| | September | September | March |
+--------------------------------------------------+-----------+-----------+--------+
| | 2009 | 2008 | 2009 |
+--------------------------------------------------+-----------+-----------+--------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------------+-----------+-----------+--------+
| Opening balance | 656 | ? | ? |
+--------------------------------------------------+-----------+-----------+--------+
| Additions | ? | ? | 726 |
+--------------------------------------------------+-----------+-----------+--------+
| Share of retained profit (loss) | 43 | ? | (70) |
+--------------------------------------------------+-----------+-----------+--------+
| Movement in share of defined benefit pension | (699) | | |
| deficit | | | |
+--------------------------------------------------+-----------+-----------+--------+
| Closing balance | ? | ? | 656 |
+--------------------------------------------------+-----------+-----------+--------+
The joint venture represents the Group's 40% remaining investment in Speciality
Coatings (Darwen) Limited following the sale of a 60% stake on 30 October 2008.
7. Earnings per share
Continuing and discontinued operations
+-------------------------+-----------+-----------+---------+--+-------------+-----------+---------+
| | | | Basic and diluted |
+-------------------------+---------------------------------+--+-----------------------------------+
| | Basic and diluted | | loss before |
+-------------------------+---------------------------------+--+-----------------------------------+
| | loss per share | | exceptionals per share |
+-------------------------+---------------------------------+--+-----------------------------------+
| | Half | Half | Year | Half year | Half | Year |
| | year | year | | | year | |
+-------------------------+-----------+-----------+---------+----------------+-----------+---------+
| | 30 | 30 | 31 | 30 September | 30 | 31 |
| | September | September | March | | September | March |
+-------------------------+-----------+-----------+---------+----------------+-----------+---------+
| | 2009 | 2008 | 2009 | 2009 | 2008 | 2009 |
+-------------------------+-----------+-----------+---------+----------------+-----------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+-------------------------+-----------+-----------+---------+----------------+-----------+---------+
| Loss for the period | (526) | (405) | (2,015) | (526) | (405) | (2,015) |
+-------------------------+-----------+-----------+---------+----------------+-----------+---------+
| Exceptional items | ? | - | - | (164) | 309 | 1,389 |
+-------------------------+-----------+-----------+---------+----------------+-----------+---------+
| Tax effect of | ? | - | - | ? | (36) | (27) |
| exceptional items | | | | | | |
+-------------------------+-----------+-----------+---------+----------------+-----------+---------+
| Loss attributable to | (526) | (405) | (2,015) | (690) | (132) | (653) |
| ordinary shareholders | | | | | | |
+-------------------------+-----------+-----------+---------+----------------+-----------+---------+
| Weighted average number | 19,985 | 20,157 | 20,172 | 19,985 | 20,157 | 20,172 |
| of ordinary shares in | | | | | | |
| issue during the period | | | | | | |
| * | | | | | | |
+-------------------------+-----------+-----------+---------+----------------+-----------+---------+
| Basic and diluted loss | (2.63)p | (2.01)p | (9.99)p | (3.45)p | (0.65)p | (3.24)p |
| per ordinary share | | | | | | |
+-------------------------+-----------+-----------+---------+--+-------------+-----------+---------+
* excluding shares held by the Chapelthorpe plc 1996 Employee Benefit Trust.
The effect of the exceptional items on the earnings per share for the current
period is a profit of 0.82p (loss of 1.36p: half year ended 30 September 2008;
loss of 6.75p: year ended 31 March 2009).
Continuing operations
+-------------------------+-----------+-----------+----------+--+-------------+-----------+---------+
| | | | Basic and |
+-------------------------+----------------------------------+--+-----------------------------------+
| | Basic and diluted | | diluted loss before |
+-------------------------+----------------------------------+--+-----------------------------------+
| | loss per share | | exceptionals per share |
+-------------------------+----------------------------------+--+-----------------------------------+
| | Half | Half | Year | Half year | Half | Year |
| | year | year | | | year | |
+-------------------------+-----------+-----------+----------+----------------+-----------+---------+
| | 30 | 30 | 31 | 30 September | 30 | 31 |
| | September | September | March | | September | March |
+-------------------------+-----------+-----------+----------+----------------+-----------+---------+
| | 2009 | 2008 | 2009 | 2009 | 2008 | 2009 |
+-------------------------+-----------+-----------+----------+----------------+-----------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+-------------------------+-----------+-----------+----------+----------------+-----------+---------+
| Loss for the period | (526) | (585) | (2,746) | (526) | (585) | (2,746) |
+-------------------------+-----------+-----------+----------+----------------+-----------+---------+
| Exceptional items | ? | - | - | (164) | 130 | 1,603 |
+-------------------------+-----------+-----------+----------+----------------+-----------+---------+
| Tax effect of | ? | - | - | ? | (36) | (27) |
| exceptional items | | | | | | |
+-------------------------+-----------+-----------+----------+----------------+-----------+---------+
| Loss attributable to | (526) | (585) | (2,746) | (690) | (491) | (1,170) |
| ordinary shareholders | | | | | | |
+-------------------------+-----------+-----------+----------+----------------+-----------+---------+
| Weighted average number | 19,985 | 20,157 | 20,172 | 19,985 | 20,157 | 20,172 |
| of ordinary shares in | | | | | | |
| issue during the period | | | | | | |
| * | | | | | | |
+-------------------------+-----------+-----------+----------+----------------+-----------+---------+
| Basic and diluted loss | (2.63)p | (2.90)p | (13.61)p | (3.45)p | (2.44)p | (5.80)p |
| per ordinary share | | | | | | |
+-------------------------+-----------+-----------+----------+--+-------------+-----------+---------+
* excluding shares held by the Chapelthorpe plc 1996 Employee Benefit Trust.
The effect of the exceptional items on the earnings per share for the current
period is a profit of 0.82p (loss of 0.46p: half year ended 30 September 2008;
loss of 7.81p: year ended 31 March 2009).
8. Cash generated from (used in) operations
+--+------------------------------+--------------------+-----------+-----------+---------+
| | | Half | Half | Year |
| | | year | year | |
+---------------------------------+--------------------+-----------+-----------+---------+
| | | 30 | 30 | 31 |
| | | September | September | March |
+---------------------------------+--------------------+-----------+-----------+---------+
| | | 2009 | 2008 | 2009 |
+---------------------------------+--------------------+-----------+-----------+---------+
| | | GBP000 | GBP000 | GBP000 |
+---------------------------------+--------------------+-----------+-----------+---------+
| Continuing operations: | | | | |
+---------------------------------+--------------------+-----------+-----------+---------+
| Operating profit (loss) | | 551 | (35) | (1,727) |
+---------------------------------+--------------------+-----------+-----------+---------+
| Depreciation | | 1,613 | 1,352 | 2,965 |
+---------------------------------+--------------------+-----------+-----------+---------+
| Charge in respect of employee | | 10 | 10 | 10 |
| share scheme | | | | |
+---------------------------------+--------------------+-----------+-----------+---------+
| Profit on disposal of fixed | | (1) | (5) | (5) |
| assets | | | | |
+---------------------------------+--------------------+-----------+-----------+---------+
| Working capital: | | | | |
+---------------------------------+--------------------+-----------+-----------+---------+
| -| decrease (increase) in | | 660 | (463) | 1,582 |
| | inventories | | | | |
+--+------------------------------+--------------------+-----------+-----------+---------+
| -| (Increase) decrease in | | (1,202) | 252 | 4,820 |
| | debtors | | | | |
+--+------------------------------+--------------------+-----------+-----------+---------+
| -| increase (decrease) in | | 2,589 | (963) | (5,270) |
| | creditors | | | | |
+--+------------------------------+--------------------+-----------+-----------+---------+
| Increase (decrease) in | | 14 | (148) | (368) |
| retirement benefit obligations | | | | |
+---------------------------------+--------------------+-----------+-----------+---------+
| | | 4,234 | - | 2,007 |
+---------------------------------+--------------------+-----------+-----------+---------+
| Exceptional items: | | | | |
+---------------------------------+--------------------+-----------+-----------+---------+
| -| Fibres restructuring | - amount | - | - | 217 |
| | | recognised in | | | |
| | | period | | | |
+--+------------------------------+--------------------+-----------+-----------+---------+
| | - amount paid in | (94) | (127) | (132) |
| | period | | | |
+---------------------------------+--------------------+-----------+-----------+---------+
| -| head office restructuring | - amount | - | - | 124 |
| | | recognised in | | | |
| | | period | | | |
+--+------------------------------+--------------------+-----------+-----------+---------+
| | - amount paid in | (128) | (36) | - |
| | period | | | |
+---------------------------------+--------------------+-----------+-----------+---------+
| -| provision for onerous lease | - amount | (164) | - | 1,150 |
| | costs | (released) | | | |
| | | recognised in | | | |
| | | period | | | |
+--+------------------------------+--------------------+-----------+-----------+---------+
| | | - amount paid in | (341) | (8) | (210) |
| | | period | | | |
+--+------------------------------+--------------------+-----------+-----------+---------+
| -| strategic advice | - amount | - | 130 | 112 |
| | | recognised in | | | |
| | | period | | | |
+--+------------------------------+--------------------+-----------+-----------+---------+
| | - amount paid in | (10) | (114) | (112) |
| | period | | | |
+---------------------------------+--------------------+-----------+-----------+---------+
| Cash generated from (used in) continuing operations | 3,497 | (155) | 3,156 |
+------------------------------------------------------+-----------+-----------+---------+
| | | | | |
+---------------------------------+--------------------+-----------+-----------+---------+
| Discontinued operations: | | | | |
+---------------------------------+--------------------+-----------+-----------+---------+
| Operating profit | | - | 464 | 837 |
+---------------------------------+--------------------+-----------+-----------+---------+
| Depreciation | | - | 196 | 232 |
+---------------------------------+--------------------+-----------+-----------+---------+
| Working capital: | | | | |
+---------------------------------+--------------------+-----------+-----------+---------+
| -| decrease in inventories | | - | 448 | 413 |
+--+------------------------------+--------------------+-----------+-----------+---------+
| -| (increase) in debtors | | - | (775) | (1,546) |
+--+------------------------------+--------------------+-----------+-----------+---------+
| -| (decrease) in creditors | | - | (1,088) | (1,779) |
+--+------------------------------+--------------------+-----------+-----------+---------+
| | | - | (755) | (1,843) |
+---------------------------------+--------------------+-----------+-----------+---------+
| Exceptional items: | | | | |
+---------------------------------+--------------------+-----------+-----------+---------+
| -| Specialist Coatings | - amount paid in | - | (29) | - |
| | restructuring | period | | | |
+--+------------------------------+--------------------+-----------+-----------+---------+
| -| costs incurred in connection | - amount | - | 179 | - |
| | with ongoing sale of | recognised in | | | |
| | Specialist Coatings business | period | | | |
| | and assets | | | | |
+--+------------------------------+--------------------+-----------+-----------+---------+
| | - amount paid in | - | (48) | - |
| | period | | | |
+---------------------------------+--------------------+-----------+-----------+---------+
| -| provision for onerous lease | - amount paid in | - | (84) | - |
| | costs | period | | | |
+--+------------------------------+--------------------+-----------+-----------+---------+
| Cash (used in) discontinued operations | - | (737) | (1,843) |
+------------------------------------------------------+-----------+-----------+---------+
| Cash generated from (used in) | | 3,497 | (892) | 1,313 |
| operations | | | | |
+--+------------------------------+--------------------+-----------+-----------+---------+
9. Retirement benefits
The Group operates a number of pension schemes. The major scheme is in the UK
and is of the defined benefit type. With effect from 5 September 2008 this
scheme was closed to future accrual.
In addition, in Austria there are leaving indemnities which represent a defined
benefit on retirement.
All other pension schemes which are operated by the Group are of a defined
contribution type.
The last full actuarial valuation of the UK defined benefit scheme was carried
out by a qualified independent actuary at 5 April 2007 and this has been updated
to 30 September 2009.
The amounts recognised in the Consolidated Income Statement for the UK defined
benefit scheme are analysed as follows:
+--------------------------------------------------+-----------+-----------+---------+
| | Half | Half | Year |
| | year | year | |
+--------------------------------------------------+-----------+-----------+---------+
| | 30 | 30 | 31 |
| | September | September | March |
+--------------------------------------------------+-----------+-----------+---------+
| | 2009 | 2008 | 2009 |
+--------------------------------------------------+-----------+-----------+---------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------------+-----------+-----------+---------+
| Current service cost | ? | (60) | (81) |
+--------------------------------------------------+-----------+-----------+---------+
| Interest on pension scheme liabilities | (1,410) | (1,470) | (2,929) |
+--------------------------------------------------+-----------+-----------+---------+
| Expected return on pension scheme assets | 790 | 1,140 | 2,412 |
+--------------------------------------------------+-----------+-----------+---------+
| Curtailment gains | ? | - | - |
+--------------------------------------------------+-----------+-----------+---------+
| | (620) | (390) | (598) |
+--------------------------------------------------+-----------+-----------+---------+
The net of "interest on pension scheme liabilities" and "expected return on
pension scheme assets" above has been included within "interest on pension
scheme liabilities" in net financing costs. All other amounts are included in
operating expenses.
The amount of actuarial losses recognised in the Statement of Comprehensive
Income in respect of the UK scheme is GBP6,060,000 (gain of GBP230,000: half
year ended 30 September 2008; loss of GBP1,819,000: year ended 31 March 2009).
The net liability recognised in the Consolidated Statement of Financial Position
in respect of the UK scheme is as follows:
+----------+------------------------------------------+-----------+-----------+---------+
| | | Half | Half | Year |
| | | year | year | |
+----------+------------------------------------------+-----------+-----------+---------+
| | | 30 | 30 | 31 |
| | | September | September | March |
+----------+------------------------------------------+-----------+-----------+---------+
| | | 2009 | 2008 | 2009 |
+----------+------------------------------------------+-----------+-----------+---------+
| | | GBP000 | GBP000 | GBP000 |
+----------+------------------------------------------+-----------+-----------+---------+
| UK | - (deficit)/surplus | (8,834) | 1,573 | (2,214) |
| scheme | | | | |
+----------+------------------------------------------+-----------+-----------+---------+
| | - restriction of surplus | ? | (1,573) | - |
+----------+------------------------------------------+-----------+-----------+---------+
| Austrian | - leaving indemnity | (1,888) | (1,625) | (1,831) |
| scheme | | | | |
+----------+------------------------------------------+-----------+-----------+---------+
| Net liability on Consolidated Statement of | (10,722) | (1,625) | (4,045) |
| Financial Position | | | |
+----------+------------------------------------------+-----------+-----------+---------+
Under the terms of the sale of the 60% stake in Speciality Coatings (Darwen)
Limited (SCD), SCD was to remain a participating employer of the UK scheme and
be obligated to contribute to the scheme's funding and running expenses.
Consequently, the UK scheme's deficit recognises a discounted value of deficit
contributions receivable from SCD of GBP1.8m, on the assumption that SCD
continues to make contributions over a future 10 year period.
Principal actuarial assumptions
UK scheme
The principal actuarial assumptions used at the balance sheet date were as
follows:
+---------------------------------+-------------+--+-------------+--+-------------+
| | Half year | | Half year | | Year |
| | | | | | |
+---------------------------------+-------------+--+-------------+--+-------------+
| | 30 | | 30 | | 31 March |
| | September | | September | | |
+---------------------------------+-------------+--+-------------+--+-------------+
| | 2009 | | 2008 | | 2009 |
+---------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+---------------------------------+-------------+--+-------------+--+-------------+
| Discount rate | 5.60% | | 7.50% | | 7.15% |
+---------------------------------+-------------+--+-------------+--+-------------+
| Expected return on assets | 4.80% | | 5.55% | | 4.70% |
+---------------------------------+-------------+--+-------------+--+-------------+
| Inflation rate | 3.20% | | 3.75% | | 2.90% |
+---------------------------------+-------------+--+-------------+--+-------------+
| Increases to deferred benefits | 3.20% | | 3.75% | | 2.90% |
| during deferment | | | | | |
+---------------------------------+-------------+--+-------------+--+-------------+
| Future pension increases | 3.20% | | 2.50% | | 2.20% |
+---------------------------------+-------------+--+-------------+--+-------------+
| Salary increases | ? | | 3.75% | | ? |
+---------------------------------+-------------+--+-------------+--+-------------+
| Mortality assumptions: | | | | | |
+---------------------------------+-------------+--+-------------+--+-------------+
| Current pensioners ? | PAY92YOB+MC | | PAY92YOB+MC | | PAY92YOB+MC |
| actuarial tables used | | | | | |
+---------------------------------+-------------+--+-------------+--+-------------+
| Current pensioners ? life | 20.5 | | 20.5 | | 20.5 |
| expectancy at age 65 | | | | | |
+---------------------------------+-------------+--+-------------+--+-------------+
| Future pensioners ? actuarial | PAY92YOB+MC | | PAY92YOB+MC | | PAY92YOB+MC |
| tables used | | | | | |
+---------------------------------+-------------+--+-------------+--+-------------+
| Future pensioners ? life | 21.9 | | 21.9 | | 21.9 |
| expectancy at age 65 | | | | | |
+---------------------------------+-------------+--+-------------+--+-------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFILLRLSFIA
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