7th Apr 2009 07:00
Tuesday 7 April 2009
HAVELOCK EUROPA PLC - PRELIMINARY ANNOUNCEMENT
"A seventh successive year of improved profit"
Havelock, the retail and educational interiors and point of sale printing group, announces a seventh successive year of improved underlying pre-tax profit. In market conditions which were generally better than might have been expected, particularly in the retail sector, the Group performed strongly, reporting growth in all three of its Divisions.
FINANCIAL HIGHLIGHTS
Revenue from continuing operations increased by 15% to £137.6m.
Underlying+ pre-tax profit from continuing operations increased by 12% to £8.0m and underlying+ fully diluted earnings per share from continuing operations were 14.9p, up 15%.
Reported pre-tax profit from continuing operations was £7.7m, up 15%, and reported fully diluted earnings per share from continuing operations amounted to 14.1p, up 18%.
Despite a significant increase in revenue, net debt remained substantially unchanged at £11.7m and gearing fell from 48% to 46%, a fourth successive annual decrease.
The Group continues to operate comfortably within its committed banking facilities of £37.0m, of which £19.0m is fully committed until July 2012.
With an unchanged final dividend per share of 3.4p, total dividends per share are increased by 2% to 4.6p, covered 2.9 times.
+ Underlying excludes amortisation of intangibles (other than software) of £0.3m (2007: £0.4m)
COMMERCIAL HIGHLIGHTS
The Educational Interiors Division increased its revenue by 20% to £52.1m. ESA McIntosh recorded a significant increase in its revenue as the first Building Schools for the Future (BSF) programmes came on stream in England, whilst maintaining a leading position in the Scottish PPP market.
The Retail Interiors Division traded strongly throughout the year and increased its revenue by 12% to £60.4m. Four new stores were completed for House of Fraser.
Continuing operations in the Point of Sale Division, at Showcard Print, recorded a 10% uplift in revenue to £25.1m. The Division procured its largest ever order in December 2008 by winning the contract to supply the closing down sale notices for Woolworths.
With regard to current trading and prospects, Malcolm Gourlay, Chairman, said "In the current economic climate, visibility remains limited, particularly in the retail sector. With the Group's normal peak of activity falling in the second half of the year, forecasting and programming the likely outturn of events is a particularly difficult judgement call.
Demand in Educational Interiors has remained in line with expectations, with strong activity in the PFI and BSF sectors.
Point of Sale Print has had a slower start to 2009 and, whilst demonstrating its defensive qualities, is unlikely to match the record levels of activity seen in 2008.
The pattern of activity in Retail Interiors will not be clear until after retailers' budgets are confirmed later in the second quarter. At this stage, in the absence of fully confirmed programmes from a number of substantial retail customers, it is possible that activity levels in 2009 will be weaker than seemed likely at the start of the year.
Nevertheless, in what are highly uncertain economic conditions, the Group intends to take advantage of its spread of activities, which provide considerable resilience in the face of the current downturn."
|
Enquiries: |
|
|
Havelock Europa PLC |
01383-820 044 |
|
Hew Balfour (Chief Executive) |
07801-683 851 |
|
Grant Findlay (Finance Director) |
07768-745 960 |
|
Bankside Consultants Limited |
|
|
Charles Ponsonby |
020-7367 8851 |
PRELIMINARY STATEMENT
2008 was the seventh successive year in which Havelock has substantially improved its underlying pre-tax profit. In market conditions which were generally better than might have been expected, particularly in the retail sector, the Group performed strongly, reporting growth in all three of its Divisions.
FINANCIAL OVERVIEW
Revenue from continuing operations increased by 15% to £137.6 million (2007: £120.0 million).
Underlying pre-tax profit from continuing operations increased by 12% to £8.0 million (2007: £7.1 million) after adding back £0.3 million (2007: £0.4 million) in respect of the amortisation of intangibles (other than software). Fully diluted earnings per share from continuing operations on this basis were 14.9p (2007: 13.0p), up 15%. Reported pre-tax profit from continuing operations was £7.7 million (2007: £6.7 million), up 15%, and reported fully diluted earnings per share from continuing operations amounted to 14.1p (2007: 11.9p), up 18%.
Despite a significant increase in revenue, tight working capital controls enabled the Group to maintain net debt at £11.7 million (2007: £11.4 million). Net interest expense was reduced to £1.1 million (2007: £1.3 million) and was covered 7.8 times (2007: 5.6 times) by operating profit. With shareholders' funds increasing from £24.0 million to £25.6 million, gearing fell from 48% to 46%, a fourth successive annual decrease.
The Group continues to operate comfortably within its committed banking facilities of £37.0 million, of which £19.0 million is fully committed until July 2012.
In May, the Group disposed of Showcard Display, which formed part of the Point of Sale Display Division. This business, which generated revenue of £4.9 million in 2007, manufactures acrylic display stands and has suffered from declining sales and margins in recent years. Cash proceeds amounted to £0.3 million and the disposal resulted in a loss from discontinued operations of £0.4 million. In accordance with accounting standards, comparative amounts for 2007 in the Group's accounts have been restated.
TRADING OVERVIEW
Educational Interiors
Revenue for the Division increased by 20% to £52.1 million (2007: £43.3 million). Improvements in the performance of the Educational Interiors Division continued throughout the year, particularly at TeacherBoards and Clean Air in the classroom accessory segment. Stage Systems, the manufacturer of demountable staging products for schools, acquired in February 2007, also improved its revenue and contribution. The business improvement programme at ESA McIntosh is beginning to bear fruit and the company recorded a significant increase in its revenue as the first Building Schools for the Future (BSF) programmes came on stream in England, whilst maintaining a leading position in the Scottish PPP market.
Retail Interiors
The Retail Interiors Division traded strongly throughout the year, benefiting from the decision, two years ago, to widen its customer base and concentrate on three main categories - large High Street retailers, banks and other retail financial institutions, and budget accommodation providers. With four new stores completed for House of Fraser, the maintenance of its traditional links with Primark and Boots, and an increased volume of business with Center Parcs and Travelodge, the Division increased its revenue by 12% to £60.4 million (2007: £54.0 million). Low cost country procurement continued to contribute significantly to the Division's competitiveness.
Point of Sale
Continuing operations in the Point of Sale Division, at Showcard Print, recorded a 10% uplift in revenue to £25.1 million (2007: £22.7 million). Showcard Print also procured its largest ever order in December 2008 by winning the contract to supply the closing down sale notices for Woolworths.
Both the Retail Interiors and Point of Sale Divisions managed to offset margin pressure through significant increases in business volumes, on an expanded customer base.
STRATEGY
The Group intends to focus on its clearly established competitive advantages. Acquiring new customers is a priority in each Division, through a focus on the Group's core skills: "live trading" refurbishment in Retail and Educational Interiors, exceptional customer service in all Divisions, an investment in technology in Point of Sale Print, and flexible low cost supply chain management throughout the Group.
The nature of many of the Group's larger educational interiors projects has underlined the benefits of working together as an integrated Interiors Division, embracing the Retail and Educational Interiors businesses, with a common business process, a common IT platform, and common project management skills. This will allow the Group to be more flexible in its allocation of resources in the event of a decline in activity in either business sector and will ensure that the educational interiors sector benefits from the standards of performance that have the enabled the Retail Interiors Division to improve its revenues and margins in each of the last four years. The two businesses have cooperated well over the last two years and the process of integration will now be accelerated.
DIVIDENDS
The Board is proposing an unchanged final dividend per share of 3.4p. If approved at the Annual General Meeting on 17 June 2009, the dividend will be paid on 3 July 2009 to shareholders on the register at close of business on 5 June 2009.
Including the interim dividend per share of 1.2p (2007: 1.1p), paid on 29 December 2008, proposed dividends per share for the year will total 4.6p (2007: 4.5p), up 2%, and be covered 2.9 times.
CURRENT TRADING AND PROSPECTS
In the current economic climate, visibility remains limited, particularly in the retail sector. With the Group's normal peak of activity falling in the second half of the year, forecasting and programming the likely outturn of events is a particularly difficult judgement call.
Demand in Educational Interiors has remained in line with expectations, with strong activity in the PFI and BSF sectors.
Point of Sale Print has had a slower start to 2009 and, whilst demonstrating its defensive qualities, is unlikely to match the record levels of activity seen in 2008.
The pattern of activity in Retail Interiors will not be clear until after retailers' budgets are confirmed later in the second quarter. At this stage, in the absence of fully confirmed programmes from a number of substantial retail customers, it is possible that activity levels in 2009 will be weaker than seemed likely at the start of the year.
Nevertheless, in what are highly uncertain economic conditions, the Group intends to take advantage of its spread of activities, which provide considerable resilience in the face of the current downturn.
Malcolm Gourlay 7 April 2009 Chairman
CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2008
|
2008 |
2007 |
||
|
Note |
£000 |
£000 |
|
|
(restated - note 11) |
|||
|
Continuing operations |
|||
|
Revenue |
4 |
137,577 |
120,038 |
|
Cost of sales |
(109,733) |
(94,169) |
|
|
Gross profit |
27,844 |
25,869 |
|
|
Administrative expenses |
(19,066) |
(17,927) |
|
|
Operating profit |
4 |
8,778 |
7,942 |
|
Expected return on defined benefit pension plan assets |
1,871 |
1,779 |
|
|
Net financial expenses - on bank borrowings and finance leases |
(1,132) |
(1,420) |
|
|
Interest on defined benefit pension scheme liabilities |
(1,842) |
(1,638) |
|
|
Net financing costs |
(1,103) |
(1,279) |
|
|
Profit before income tax |
7,675 |
6,663 |
|
|
Income tax expense |
5 |
(2,230) |
(2,136) |
|
Profit from continuing operations |
5,445 |
4,527 |
|
|
Discontinued operation |
|||
|
(Loss)/profit from discontinued operation, net of income tax |
12 |
(375) |
28 |
|
Profit for the year (attributable to equity holders of the parent) |
4 |
5,070 |
4,555 |
|
Basic earnings per share |
6 |
13.5p |
12.2p |
|
Diluted earnings per share |
6 |
13.1p |
12.0p |
|
Continuing operations |
|||
|
Basic earnings per share |
6 |
14.5p |
12.1p |
|
Diluted earnings per share |
6 |
14.1p |
11.9p |
STATEMENT OF RECOGNISED INCOME AND EXPENSE
for the year ended 31 December 2008
|
2008 |
2007 |
||
|
£000 |
£000 |
||
|
Note |
|||
|
Actuarial (loss)/gain on defined benefit pension plan |
(2,169) |
232 |
|
|
Tax on items taken directly to equity |
607 |
(225) |
|
|
Cash flow hedges: |
|||
|
Effective portion of changes in fair value |
11 |
( 348) |
(36) |
|
Net expense recognised directly in equity |
(1,910) |
(29) |
|
|
Profit for the year |
5,070 |
4,555 |
|
|
Total recognised income and expense (attributable to equity holders of the parent) |
11 |
3,160 |
4,526 |
CONSOLIDATED BALANCE SHEET
as at 31 December 2008
|
2008 |
2007 |
||
|
£000 |
£000 |
||
|
Note |
|||
|
Assets |
|||
|
Non-current assets |
|||
|
Property, plant and equipment |
13,025 |
14,117 |
|
|
Intangible assets |
14,714 |
14,653 |
|
|
Deferred tax assets |
1,803 |
1,417 |
|
|
Total non-current assets |
29,542 |
30,187 |
|
|
Current assets |
|||
|
Inventories |
7 |
12,593 |
11,385 |
|
Non-current assets classified as held for sale |
- |
1,765 |
|
|
Trade and other receivables |
8 |
32,233 |
25,276 |
|
Cash and cash equivalents |
4,736 |
4,447 |
|
|
Total current assets |
49,562 |
42,873 |
|
|
Total assets |
4 |
79,104 |
73,060 |
|
Liabilities |
|||
|
Current liabilities |
|||
|
Interest-bearing loans and borrowings |
9 |
(1,531) |
(1,577) |
|
Derivative financial instruments |
(399) |
(51) |
|
|
Income tax payable |
(1,148) |
(1,090) |
|
|
Non-current liabilities classified as held for sale |
- |
(409) |
|
|
Trade and other payables |
10 |
(28,240) |
(25,512) |
|
Total current liabilities |
(31,318) |
(28,639) |
|
|
Non-current liabilities |
|||
|
Interest-bearing loans and borrowings |
9 |
(14,880) |
(14,286) |
|
Retirement benefit obligations |
(6,441) |
(5,168) |
|
|
Deferred tax liabilities |
(907) |
(1,007) |
|
|
Total non-current liabilities |
(22,228) |
(20,461) |
|
|
Total liabilities |
4 |
(53,546) |
(49,100) |
|
Net assets |
25,558 |
23,960 |
|
|
Equity |
|||
|
Issued share capital |
11 |
3,853 |
3,853 |
|
Share premium |
11 |
7,013 |
7,013 |
|
Other reserves |
11 |
2,779 |
3,127 |
|
Revenue reserves |
11 |
11,913 |
9,967 |
|
Total equity attributable to equity holders of the parent |
25,558 |
23,960 |
|
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2008
|
2008 |
2007 |
||
|
£000 |
£000 |
||
|
Cash flows from operating activities |
Note |
||
|
Profit for the year |
5,070 |
4,555 |
|
|
Adjustments for: |
|||
|
Depreciation of property, plant and equipment |
1,811 |
2,095 |
|
|
Amortisation of intangible assets |
441 |
546 |
|
|
Impairment losses on assets classified as held for sale |
244 |
- |
|
|
Loss/(gain) on sale of property, plant and equipment |
1 |
(282) |
|
|
Net financing costs |
1,103 |
1,279 |
|
|
IFRS 2 charge and net movements relating to equity settled plans |
210 |
326 |
|
|
Loss on sale of asset held for resale |
379 |
- |
|
|
Income tax expense |
2,084 |
2,148 |
|
|
Operating cash flows before changes in working capital and provisions |
11,343 |
10,667 |
|
|
Increase in trade and other receivables |
(5,861) |
(635) |
|
|
(Increase)/decrease in inventories |
(1,260) |
468 |
|
|
Increase/(decrease) in trade and other payables |
2,214 |
(1,266) |
|
|
Movement relative to defined benefit pension scheme |
(867) |
(883) |
|
|
Cash generated from operations |
5,569 |
8,351 |
|
|
Interest paid |
(1,121) |
(1,473) |
|
|
Income taxes paid |
(1,905) |
(2,145) |
|
|
Net cash from operating activities |
2,543 |
4,733 |
|
|
Cash flows from investing activities |
|||
|
Proceeds from sale of property, plant and equipment |
- |
699 |
|
|
Disposal of discontinued operation net of cash disposed of |
12 |
192 |
- |
|
Acquisition of property, plant and equipment |
(720) |
(4,113) |
|
|
Acquisition of intangible assets |
(502) |
(256) |
|
|
Acquisition of subsidiaries, net of cash balances acquired |
- |
(2,535) |
|
|
Net cash used in investing activities |
(1,030) |
(6,205) |
|
|
Cash flows from financing activities |
|||
|
Proceeds from the issue of share capital |
- |
5,110 |
|
|
Increase in bank loans |
- |
1,031 |
|
|
Repayment of loan notes |
(476) |
- |
|
|
Repayment of bank borrowings |
(997) |
(625) |
|
|
Repayment of finance lease liabilities |
(329) |
(98) |
|
|
New finance leases |
2,350 |
- |
|
|
Dividends paid |
11 |
(1,772) |
(1,579) |
|
Net cash (used in)/from financing activities |
(1,224) |
3,839 |
|
|
Net increase in cash and cash equivalents |
289 |
2,367 |
|
|
Cash and cash equivalents at 1 January |
4,447 |
2,080 |
|
|
Cash and cash equivalents at 31 December |
4,736 |
4,447 |
NOTES TO THE STATEMENTS
1. The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2008 or 2007 but is derived from the 2008 accounts. Statutory accounts for 2007 have been delivered to the Registrar of Companies and those for 2008 will be delivered in due course. The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their reports and (iii) did not contain statements under section 237(2) or (3) of the Companies Act 1985.
2. Basis of consolidation
The consolidated financial statements comprise Havelock Europa PLC and its subsidiaries. The financial statements of subsidiaries are prepared to the same reporting date using accounting policies consistent with those of the parent company. Intra-group transactions and balances, including any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in full.
3. Profit before tax
|
Cost of sales |
Administrative |
Total |
|||||
|
costs |
|||||||
|
2008 |
2007 |
2008 |
2007 |
2008 |
2007 |
||
|
Note |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
Profit before tax is stated after charging/(crediting): |
|||||||
|
Depreciation of property, plant and equipment |
8 |
901 |
1,369 |
910 |
726 |
1,811 |
2,095 |
|
Amortisation of intangible assets |
9 |
- |
14 |
441 |
532 |
441 |
546 |
|
Gain/(loss) on sale of property, plant and equipment |
- |
(306) |
- |
24 |
- |
(282) |
|
|
Non-recurring property costs |
- |
- |
300 |
- |
300 |
- |
|
4. Segment reporting
Segment information is presented in respect of the Group's business segments and is based on the Group's management and internal financial reporting structure.
Inter-segment pricing is determined on an arm's length basis.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise interest-bearing loans and borrowings, deferred consideration payable for business combinations, income taxes and corporate assets, liabilities and expenses.
Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one period.
Business segments
The Group comprises the following business segments, all of which are continuing operations:
| Retail Interiors - design, manufacture and installation of interiors for retailers, financial services, hotels and healthcare premises; |
| Educational Interiors - design, manufacture and installation of classrooms, fitted and loose furniture, teaching aids, display boards and fume cupboards for the education sector; |
| Point of Sale - printing of promotional graphics for use in retail, financial services and branded goods businesses. |
|
Business segments |
Retail Interiors |
Educational Interiors |
Point of Sale |
Elimination |
Consolidated |
|||||
|
2008 |
2007 |
2008 |
2007 |
2008 |
2007 |
2008 |
2008 |
2008 |
2007 |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
Revenue from external customers |
60,449 |
54,042 |
52,055 |
43,289 |
25,073 |
22,707 |
- |
- |
137,577 |
120,038 |
|
Inter-segment revenue |
1,380 |
839 |
551 |
90 |
39 |
13 |
(1,970) |
(942) |
- |
- |
|
Total revenue |
61,829 |
54,881 |
52,606 |
43,379 |
25,112 |
22,720 |
(1,970) |
(942) |
137,577 |
120,038 |
|
Discontinued operations |
- |
- |
- |
- |
1,001 |
4,917 |
- |
- |
1,001 |
4,917 |
|
Consolidated revenue |
61,829 |
54,881 |
52,606 |
43,379 |
26,113 |
27,637 |
(1,970) |
(942) |
138,578 |
124,955 |
|
Segment result before amortisation of |
||||||||||
|
intangibles excluding software |
3,728 |
3,644 |
2,939 |
1,970 |
4,665 |
4,673 |
- |
- |
11,332 |
10,287 |
|
Amortisation of intangibles excluding software |
- |
- |
(296) |
(435) |
- |
- |
- |
- |
(296) |
(435) |
|
Segment result after amortisation of |
||||||||||
|
intangibles |
3,728 |
3,644 |
2,643 |
1,535 |
4,665 |
4,673 |
- |
- |
11,036 |
9,852 |
|
Unallocated expenses |
(2,258) |
(1,910) |
||||||||
|
Operating profit from continuing operations |
8,778 |
7,942 |
||||||||
|
Net financing costs |
(1,103) |
(1,279) |
||||||||
|
Profit before income tax |
7,675 |
6,663 |
||||||||
|
Income tax expense |
(2,230) |
(2,136) |
||||||||
|
Discontinued operations net of tax |
(375) |
28 |
||||||||
|
Profit for the year |
5,070 |
4,555 |
||||||||
|
Retail Interiors |
Educational Interiors |
Point of Sale |
Discontinued operations |
Consolidated |
||||||
|
2008 |
2007 |
2008 |
2007 |
2008 |
2007 |
2008 |
2007 |
2008 |
2007 |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
Segment assets |
21,816 |
17,534 |
37,788 |
34,549 |
12,024 |
12,709 |
- |
1,604 |
71,628 |
66,396 |
|
Assets classified as held for sale |
- |
- |
- |
- |
- |
161 |
- |
- |
- |
161 |
|
Unallocated assets |
7,476 |
6,503 |
||||||||
|
Total assets |
79,104 |
73,060 |
||||||||
|
Segment liabilities |
(17,477) |
(15,229) |
(5,268) |
(4,918) |
(6,049) |
(3,062) |
- |
(409) |
(28,794) |
(23,618) |
|
Unallocated liabilities |
(24,752) |
(25,482) |
||||||||
|
Total liabilities |
(53,546) |
(49,100) |
||||||||
|
Capital expenditure |
(325) |
(571) |
(681) |
(944) |
(63) |
(2,837) |
- |
(17) |
(1,069) |
(4,369) |
|
Unallocated capital expenditure |
(153) |
- |
||||||||
|
Depreciation |
(422) |
(422) |
(536) |
(540) |
(815) |
(1,079) |
- |
(34) |
(1,773) |
(2,075) |
|
Unallocated depreciation |
(38) |
(20) |
||||||||
|
Amortisation of intangible assets |
(17) |
(18) |
(410) |
(508) |
- |
(15) |
- |
(2) |
(427) |
(543) |
|
Unallocated amortisation of intangible assets |
(14) |
(3) |
||||||||
5. Income tax expense
Recognised in the income statement
|
Continuing operations |
|||
|
2008 |
2007 |
||
|
£000 |
£000 |
||
|
Current tax expense |
Note |
||
|
Current year |
(2,326) |
(1,944) |
|
|
Adjustments for prior years |
217 |
21 |
|
|
(2,109) |
(1,923) |
||
|
Deferred tax expense |
|||
|
Origination and reversal of temporary differences |
(165) |
(202) |
|
|
Adjustments for prior years |
44 |
(11) |
|
|
(121) |
(213) |
||
|
Total tax expense in respect of continuing operations |
(2,230) |
(2,136) |
|
|
Discontinued operations |
12 |
146 |
(12) |
|
Total income tax expense recognised in the consolidated income statement |
(2,084) |
(2,148) |
6. Earnings per share
The calculation of basic earnings per share and underlying earnings per share at 31 December 2008 is based on the profit attributable to ordinary shareholders as follows:
|
2008 |
2007 |
2008 |
2007 |
|
|
Earnings |
Earnings |
EPS |
EPS |
|
|
£000 |
£000 |
pence |
pence |
|
|
Basic |
5,070 |
4,555 |
13.5 |
12.2 |
|
Adjusted for: |
||||
|
Amortisation of intangibles that attract no corporate tax deduction |
296 |
435 |
0.7 |
1.2 |
|
Adjusted |
5,366 |
4,990 |
14.2 |
13.4 |
|
Diluted earnings per share |
13.1 |
12.0 |
||
|
Diluted adjusted earnings per share |
13.9 |
13.1 |
Continuing operations
|
2008 |
2007 |
2008 |
2007 |
|
|
Earnings |
Earnings |
EPS |
EPS |
|
|
£000 |
£000 |
pence |
pence |
|
|
Basic |
5,445 |
4,527 |
14.5 |
12.1 |
|
Adjusted for: |
||||
|
Amortisation of intangibles that attract no corporate tax deduction |
296 |
435 |
0.7 |
1.2 |
|
Adjusted |
5,741 |
4,962 |
15.2 |
13.3 |
|
Diluted earnings per share |
14.1 |
11.9 |
||
|
Diluted adjusted earnings per share |
14.9 |
13.0 |
Amortisation of intangible assets
|
2008 |
2007 |
|
|
£000 |
£000 |
|
|
Total amortisation of intangible assets |
441 |
546 |
|
Less amortisation of computer software |
(145) |
(111) |
|
Amortisation of intangibles that attract no tax deduction |
296 |
435 |
The weighted average number of shares used in each calculation is as follows:
Undiluted earnings per share
|
In thousands of shares |
2008 |
2007 |
|
Issued ordinary shares at 1 January |
38,532 |
34,859 |
|
Effect of own shares held |
(852) |
(656) |
|
Effect of shares issued in 2007 |
- |
3,166 |
|
Weighted average number of ordinary shares for the year ended 31 December |
37,680 |
37,369 |
Diluted earnings per share
|
In thousands of shares |
2008 |
2007 |
|
Weighted average number of ordinary shares for the year ended 31 December |
37,680 |
37,369 |
|
Effect of share options on issue |
985 |
671 |
|
Weighted average number of ordinary shares (diluted) for the year ended 31 December |
38,665 |
38,040 |
7. Inventories
|
2008 |
2007 |
|
|
£000 |
£000 |
|
|
Raw materials and consumables |
3,446 |
3,477 |
|
Work in progress |
1,987 |
2,025 |
|
Finished goods |
7,160 |
5,883 |
|
12,593 |
11,385 |
8. Trade and other receivables
|
2008 |
2007 |
|
|
£000 |
£000 |
|
|
Trade receivables |
30,886 |
23,527 |
|
Other receivables |
154 |
512 |
|
Prepayments |
1,193 |
1,237 |
|
32,233 |
25,276 |
9. Interest-bearing loans and borrowings
|
Current liabilities |
2008 |
2007 |
|
£000 |
£000 |
|
|
Secured bank loans |
1,000 |
1,000 |
|
Loan notes |
- |
476 |
|
Obligations under hire purchase contracts and finance leases |
531 |
101 |
|
1,531 |
1,577 |
|
Non-current liabilities |
2008 |
2007 |
|
£000 |
£000 |
|
|
Secured bank loans |
12,977 |
13,974 |
|
Obligations under hire purchase contracts and finance leases |
1,903 |
312 |
|
14,880 |
14,286 |
10. Trade and other payables
Amounts disclosed in current liabilities
|
2008 |
2007 |
|
|
£000 |
£000 |
|
|
Trade payables |
20,373 |
17,064 |
|
Other taxes and social security |
3,204 |
4,301 |
|
Accruals |
4,663 |
4,147 |
|
28,240 |
25,512 |
11. Capital and reserves
Reconciliation of movement in capital and reserves
|
Share capital |
Share prem-ium |
Merger reserve |
Hedg-ing reserve |
Other reserve |
Revenue reserve |
Total |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
Balance at 1 January 2007 |
3,486 |
2,020 |
2,184 |
(15) |
994 |
6,658 |
15,327 |
|
Total recognised income and expense for the period |
- |
- |
- |
(36) |
- |
4,562 |
4,526 |
|
Movements relating to share-based payments and ESOP trust |
- |
- |
- |
- |
- |
326 |
326 |
|
Shares issued |
367 |
4,993 |
- |
- |
- |
- |
5,360 |
|
Dividends to shareholders |
- |
- |
- |
- |
(1,579) |
(1,579) |
|
|
Balance at 31 December 2007 |
|||||||
|
and at 1 January 2008 |
3,853 |
7,013 |
2,184 |
(51) |
994 |
9,967 |
23,960 |
|
Total recognised income and expense for the period |
- |
- |
- |
(348) |
- |
3,508 |
3,160 |
|
Movements relating to share-based payments and ESOP trust |
- |
- |
- |
- |
- |
210 |
210 |
|
Dividends to shareholders |
- |
- |
- |
- |
(1,772) |
(1,772) |
|
|
Balance at 31 December 2008 |
3,853 |
7,013 |
2,184 |
(399) |
994 |
11,913 |
25,558 |
12. Discontinued operations
In May 2008, the Group sold Showcard Display, part of the Point of Sale division; Showcard Display was classified as held for sale at 31 December 2007. Comparatives have been restated accordingly.
Results of discontinued operation
|
2008 £000 |
2007 £000 |
|
|
Revenue |
1,001 |
4,917 |
|
Cost of sales |
(839) |
(3,862) |
|
Gross profit |
162 |
1,055 |
|
Administrative expenses |
(304) |
(1,015) |
|
(Loss)/profit before tax |
(142) |
40 |
|
Income tax credit/(expense) |
40 |
(12) |
|
(Loss)/profit after income tax |
(102) |
28 |
|
Loss on sale of discontinued operation |
(379) |
- |
|
Income tax credit on loss on sale of discontinued operation |
106 |
- |
|
(Loss)/profit from discontinued operation |
(375) |
28 |
|
Discontinued operation basic earnings per share (pence) |
(1.0) |
0.1 |
|
Discontinued operation diluted earnings per share (pence) |
(1.0) |
0.1 |
Cash flows from discontinued operation
|
2008 £000 |
2007 £000 |
|
|
Net cash from operating activities |
631 |
580 |
|
Net cash from investing activities |
(8) |
(19) |
|
Net cash from discontinued operation |
623 |
561 |
Effect of disposal on the financial position of the Group
|
2008 £000 |
|
|
Property, plant and equipment |
(32) |
|
Inventories |
(433) |
|
Receivables |
(15) |
|
Net identifiable assets and liabilities |
(480) |
|
Consideration received, satisfied in cash |
335 |
|
Expenses of sale |
(234) |
|
Net proceeds |
101 |
|
Expenses of sales accrued |
91 |
|
Net cash inflow in respect of disposals |
192 |
13. The accounts for the year ended 31 December 2008 were approved by the Directors on 7 April 2009.
Related Shares:
Havelock Europa