RNS Number:6633M
Dobbies Garden Centres PLC
24 June 2003
DOBBIES GARDEN CENTRES plc
Interim Results for the Six Months ended 30 April 2003
Highlights
*Sales #21.8 million Up 21.3%
*Like-for-like sales Up 8.1%
*Operating profit #2.5 million Up 15.4%
*Profit before tax #1.8 million Up 11.3% *
*Earnings per share 13.19p Up 9.8%*
*Interim dividend 2.65p per share Up 10%
*85,000 sq.ft. centre redeveloped at Atherstone
*Planning permission received for construction of 42,000 sq.ft.
garden centre at Ayr
* Excluding gain on sale of properties last year
Chairman, Alex Hammond-Chambers said: "I am pleased to be able to report that
our established centres continue to make progress and that they recorded
like-for-like sales growth of 8.1% with our plant and restaurant sales being
particularly strong. Last summer we relocated our Perth centre, enlarging it in
the process and its performance in this period has been most encouraging. Our
newest centre at Atherstone was being redeveloped during the period and,
although it contributed to the sales growth, it will only make a full
contribution in its expanded format in a year's time."
- ENDS -
Enquiries:
James Barnes, Chief Executive
Sharon Brown, Finance Director
Dobbies Garden Centres plc Tel: 0131 663 6778
Jonathon Brill, Managing Director
Caroline Sturdy, Associate Director
Bell Pottinger Financial Tel: 020 7861 3232
CHAIRMAN'S STATEMENT
First Half Sales:
Our sales during the half-year to 30th April 2003 rose by 21.3% to #21.8m. There
were three main reasons for this improvement, being an unexpectedly warm spring
(again), a good like-for-like sales performance from our existing centres and a
full half-year's sales from our new stores in Perth and Preston.
I am pleased to be able to report that our established centres continue to make
progress and that they recorded like-for-like sales growth of 8.1%, with our
plant and restaurant sales being particularly strong. Last summer we relocated
our Perth centre, enlarging it in the process, and its performance in this
period has been most encouraging. Our newest centre at Atherstone was being
redeveloped during the period and, although it contributed to the sales growth,
it will only make a full contribution in its expanded format in a year's time.
Profits & Dividends:
We earned profits before tax of #1.85 million which compares with an equivalent
figure of #1.66 million for the same period a year ago - an increase of 11.3%.
It should be remembered that last year's reported figure included an additional
profit of #2.13 million, made on the sale of our leasehold property at Perth.
Accounting convention requires us to include that figure in the consolidated
profit and loss account despite the fact that it is non-operational and
non-recurring - you can see it in the second column of the profit and loss
statement opposite. Our administrative and selling costs rose 25.1%, an increase
which is actually slightly below budget and is largely accounted for by the cost
of installing our new EPOS system and of redeveloping Atherstone.
Our earnings per share rose 9.8% to 13.2p. Your Board of Directors has declared
an interim dividend of 2.65p per ordinary share payable to shareholders on 31st
October 2003. This represents an increase of 10%.
Company Developments & Prospects:
While the background to consumer spending generally in the UK has softened
during the course of the last 12 months, retail spending continues to increase -
albeit at a slower rate. Our own stores continue to do well, benefiting not only
from strong demographics and a buoyant housing market but also from improved
merchandising and product ranges. The implementation of our EPOS system, to
which I referred above, is already beginning to give us a better feel for
individual product sales and margins and we anticipate that in the longer term
this information will help us to improve our stock control and thereby enhance
our sales and profits growth.
We will be breaking ground later in the summer on a brand new store just outside
Ayr. It will be similar to the very successful one that we completed last summer
in Perth and we are optimistic that it can do every bit as well. The development
of the garden centre at Atherstone was, as I mentioned above, completed during
this first half period and is now one of the largest garden centres in Britain.
The second stage of the development is the building of a contemporary
horticultural visitor attraction which should be completed by next spring and
should increase the number of visitors to the centre quite considerably.
We are currently working on a number of opportunities for developing Dobbies
Garden Centres around the country - either through greenfield site development
or acquisitions. Of course, not all of them will come off, but enough of them
should materialise to ensure that we can maintain the growth of our sales and
profits in the years to come.
Alex Hammond-Chambers
Chairman
Consolidated Profit & Loss Account
Unaudited six months Year ended
ended 30 April 31 October
2003 2002 2002
#'000 #'000 #'000
Turnover 21,798 17,970 38,361
Cost of sales (11,573) (9,582) (20,256)
-------- --------- -----------
Gross profit 10,225 8,388 18,105
Administrative and selling
expenses (8,217) (6,567) (14,239)
Other operating income 496 349 780
-------- --------- -----------
Operating profit 2,504 2,170 4,646
Profit on sale of tangible fixed
assets - 2,130 2,357
-------- --------- -----------
Profit on ordinary activities
before interest 2,504 4,300 7,003
Interest payable and similar
charges (657) (511) (991)
-------- --------- -----------
Profit on ordinary activities
before taxation 1,847 3,789 6,012
Tax on ordinary activities (554) (503) (1,097)
-------- --------- -----------
Profit on ordinary activities
after taxation 1,293 3,286 4,915
Dividends (261) (245) (725)
-------- --------- -----------
Profit for the period 1,032 3,041 4,190
-------- --------- -----------
Basic Earnings per share 13.19p 34.15p 50.60p
Adjustment for profit on sale of
properties - (22.14)p (24.26)p
Adjusted Basic Earnings per
share 13.19p 12.01p 26.34p
-------- --------- -----------
Diluted Earnings per share 12.97p 33.85p 50.20p
Adjustment for profit on sales
of properties - (21.94)p (24.26)p
Adjusted Diluted Earnings per
share 12.97p 11.91p 25.94p
-------- --------- -----------
Dividend per share 2.65p 2.40p 7.30p
Shares in issue (weighted
average) 9,805,310 9,621,923 9,714,196
Consolidated Balance Sheet
Unaudited At
at 30 April 31 October
2003 2002 2002
#'000 #'000 #'000
Fixed assets 706 747 725
Intangible assets 56,752 48,243 52,255
--------- --------- ------------
Tangible assets 57,458 48,990 52,980
--------- --------- ------------
Current assets
Stocks 7,362 7,565 7,136
Debtors 621 1,544 925
Cash at bank and in hand 242 283 411
--------- --------- ------------
8,225 9,392 8,472
Creditors: amounts
falling due within one year (19,766) (14,812) (16,667)
--------- --------- ------------
Net current liabilities (11,541) (5,420) (8,195)
--------- --------- ------------
Total assets less current
liabilities 45,917 43,570 44,785
Creditors: amounts
falling due after more than one year (11,949) (11,964) (11,941)
Provisions for liabilities and
charges (985) (811) (893)
--------- --------- ------------
Net assets 32,983 30,795 31,951
--------- --------- ------------
Capital and reserves
Equity shareholders' funds 32,983 30,795 31,951
--------- --------- ------------
Reconciliation of Movements in Shareholders' Funds
Unaudited six months Year ended
ended 30 April 31 October
2003 2002 2002
#'000 #'000 #'000
Profit for the financial period 1,293 3,286 4,915
Dividends (261) (245) (725)
New share capital subscribed - 25 26
Share premium arising (net) - 280 286
-------- ---------- ----------
1,032 3,346 4,502
Opening shareholders' funds 31,951 27,449 27,449
-------- ---------- ----------
Closing shareholders' funds 32,983 30,795 31,951
-------- ---------- ----------
Consolidated Cash Flow Statement
Unaudited six Year ended
months
ended 30 April 31 October
2003 2002 2002
#'000 #'000 #'000
Cashflow from operating activities
(note 4) 6,139 4,074 6,059
Returns on investment and servicing of
finance (611) (479) (1,040)
Taxation (463) (257) (776)
Capital expenditure and financial
investment (5,473) (4,545) (6,762)
Aquisitions and disposals 8 2,250 -
Equity dividends paid - (436) (671)
--------- -------- ----------
Cash (outflow)/inflow before use of
liquid resources and financing (400) 607 (3,190)
Financing (40) 139 7,111
--------- -------- ----------
(Decrease)/increase in cash in
period (440) 746 3,921
--------- -------- ----------
Notes
1. The financial information for the six months ended 30 April 2003 and the
comparative figures for the six months ended 30 April 2002 are neither
audited nor reviewed and have been prepared on the basis of the accounting
policies set out in the statutory accounts for the year ended 31 October
2002. The financial information does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985. The financial information
for the year ended 31 October 2002 has been extracted from the statutory
accounts which, together with an unqualified audit report, have been
delivered to the Registrar of Companies.
2. The calculation of earnings per share is based on the profit after tax for
the financial period divided by 9,805,310 ordinary shares, being the
weighted average number of shares in issue. The diluted earnings per share
for the period is based on the profit after tax for the financial period
divided by 9,966,655 being the number of potential ordinary shares
calculated in accordance with Financial Reporting Standard 14.
3. The Directors have declared an interim dividend of 2.65p per ordinary share.
The dividend will be payable on 31 October 2003 to shareholders on the
register at 3rd October 2003.
4. Reconciliation of operating profit to operating cashflow
Unaudited six months Year ended
ended 30 April 31 October
2003 2002 2002
#'000 #'000 #'000
Operating profit 2,504 2,170 4,646
Depreciation charge 970 695 1,425
Goodwill amortisation 19 20 42
Profit on sale of tangible
fixed assets (2) - -
Increase in stock (226) (626) (197)
Decrease/(increase) in
debtors 304 (829) (210)
Increase in creditors 2,570 2,644 353
---------- ---------- -----------
Cashflow from operating
activities 6,139 4,074 6,059
---------- ---------- -----------
5. Reconciliation of net cashflow to movement in net debt
Unaudited six
months Year ended
ended 30 April 31 October
2003 2002 2002
#'000 #'000 #'000
(Decrease)/increase in cash in
period (440) 746 3,921
Cash (inflow)/outflow from debt
and hire purchase (8) 112 (6,799)
Loan notes redeemed 48 54 -
--------- --------- ----------
Movement in net debt in the
period (400) 912 (2,878)
Opening net debt (21,668) (18,790) (18,790)
--------- --------- ----------
Closing net debt (22,068) (17,878) (21,668)
--------- --------- ----------
6. Copies of this statement will be sent to all shareholders and will be
available from the registered office, Melville Nursery, Lasswade, Midlothian
EH18 1AZ.
This information is provided by RNS
The company news service from the London Stock Exchange
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