RNS Number:4961C
Grampian Hldgs PLC
24 April 2001
Date 24 April 2001
Contacts David McGibbon 020 7929 5599
Finance Director & Company Secretary (on 24.04.2001)
Grampian Holdings plc 0141 357 2000
(thereafter)
David Bick
Holborn Public Relations 020 7929 5599
david.bick@holbornpr.co.uk
Tom Cassidy
Media House 0141 226 3700
GRAMPIAN HOLDINGS p.l.c.
Preliminary Results
* Year to 2 February 2001
- PBIT up 30.7% to #17.9m
- Headline earnings per share 9.08 pence (1999/00 : 10.95
pence)
- Dividend per share maintained at 8.00 pence.
* Current trading
- The Malcolm Group: Activity levels strong and margins have
improved against early trading last year
- EWM Group: Sales up 16.4% and like for like sales up 15.4%
against last year. Like for like gross margin up 17.4%. Easter
trading has been encouraging. Looking ahead, too early to
assess full impact of foot and mouth.
* Disposal of EWM Group
- Negotiations on the disposal are now well advanced. A further
announcement will be made shortly.
Commenting on the outlook, Chairman Sir Donald MacKay said:
Current trading is satisfactory.
In the Malcolm Group activity levels are strong across the board and margins
have improved against early trading last year.
In the EWM Group, total sales for the first 9 weeks are up 16.4% and, more
significantly, like for like sales are up 15.4% against the same period last
year. Like for like gross margin in value terms is up 17.4%.
Negotiations on the disposal of EWM are now well advanced. A further
announcement will be made shortly.
Grampian Holdings plc, the Scottish based group whose businesses are The
Malcolm Group and The Edinburgh Woollen Mill Group ("EWM Group"), announces
preliminary results for the year to 2 February 2001.
Commenting on the group's results, Chairman, Sir Donald MacKay said:
Group
Turnover for continuing operations for the year was #243.9m compared with #
225.9m for the previous year. Operating profits for continuing operations,
however, showed a decline from #22.1m in 1999/00 to #17.9m for 2000/01. After
exceptional charges of #Nil (1999/00 #7.5m) profit before interest and
taxation showed an increase of 30.7% from #13.7m in the previous year to #
17.9m in 2000/01.
The Malcolm Group
The year was notable for the opening of our new operation at Crick, our entry
into rail transport, and the growth in contracting activities, all of which
are expected to bring benefits in the immediate future. However, largely as a
result of the cost of fuel, in financial terms, the year was disappointing.
Turnover showed an increase of 20.8% from #71.6m in the previous year to #
86.5m. Operating profits, however, declined from #9.4m in 1999/00 to #7.2m
for the year to 2 February 2001.
For the Logistic Services division, the opening in August of the new facility
at Crick, in Northamptonshire, was significant both in terms of additional
warehousing capacity and in the introduction of rail distribution. In
February 2001, we opened a new rail operation at Grangemouth. Rail business
is now conducted on a regular basis between these two well placed locations.
These new facilities enable us to meet growing customer demand for a
comprehensive road to rail service.
Our warehousing capacity throughout the UK now exceeds 3.5 million square feet
and we are well placed to fulfil customers' needs.
Over the last two years we have been developing European links, with haulage,
into France and the Benelux countries in particular. With our increased
capacity at Crick and the setting up of a rail network, the potential for more
business in Europe has increased significantly.
The Construction Services division showed a significant growth in turnover,
particularly in the contracts business. A combination of our 'one stop shop'
approach and the formation of partnerships with our customers will stand us in
good stead as market conditions and margins improve. The division completed
several major contracts with partners in PFI, house building and major school
projects. Operating margins in this business were impacted during the year by
costs associated with developing the contract side. A key to success in the
coming year will be to deliver higher margin business in this sector.
EWM Group
Total turnover showed an increase of 1.9%, from #154.3m in 1999/00 to #157.3m
for the year just ended. Whilst like for like sales showed a decrease of
2.9%, more significantly, like for like gross margin in # terms was in line
with the previous year.
For the EWM Group, performance showed a significant improvement in the second
half year.
For the first quarter of the year to end April 2000, like for like sales and #
margin was down by 6.9% and 5.9% respectively. The second quarter showed some
improvement with like for like sales down by 3.6% but like for like # gross
margin only 1% down on the previous year.
In the second half year, overall sales rose by 3.1% and, although like for
like sales were down 1.4%, like for like margin in sterling terms was 2.5%
higher. This trend of improved margin continued right through to the end of
the year, an encouraging situation.
In our high street stores, despite difficult trading conditions, the company
embarked on the introduction of a slightly modified store model combined with
a new range of more informal ladies wear designed to attract a marginally
younger age group, the rapidly growing segment of the 55-64 year old. After a
period of testing, this product offer is now being extended into other
suitable stores. The high street stores increased in the year by 3 in number
to 147 stores, reinforcing the strategy of maximising performance from
existing stores.
In the tourist sector, the continuing strength of sterling impacted on the
results. We continued our strategy of theming each individual store according
to its local characteristics giving, wherever possible, the visitor a further
reason to purchase gifts. This strategy helped in a difficult market. The
tourist business now represents only 39.3% of our total sales but our aim is
to ensure that we continue to operate profitably in this sector, selectively
seeking further growth opportunities.
In the edge of town/leisure shopping outlets, a significant anchor leisure
shopping site was opened at Bideford on the north coast of Devon and initial
trading there was ahead of expectations. This is a sector that continues to
grow as the consumer moves towards relaxed shopping away from city centres to
an environment which can also offer other attractions.
For the EWM Group as a whole, although operating profits showed a decline from
#13.4m in 1999/00 to #11.7m for 2000/01, this masked a strong performance in
the second half of the year.
Total Group
Total group turnover for continuing operations rose by 8.0% from #225.9m in
1999/00 to #243.9m in 2000/01. Including the impact of turnover from
discontinued operations in 1999/00, total group turnover at #243.9m increased
by 3.8% from #234.9m in 1999/00.
Group operating profits for continuing operations, at #17.9m, showed a decline
of 19.0% from #22.1m in the previous year. However, including the impact of
restructuring and closure costs in 1999/00, total group profits before
interest at #17.9m showed an increase of 30.7% from #13.7m in 1999/00. After
a higher interest charge, profits before taxation rose by 32.7% from #11.0m in
1999/00 to #14.6m in 2000/01.
Earnings per share were 9.08 pence against 5.78 pence in the previous year.
IIMR headline earnings per share fell from 10.95 pence in 1999/00 to 9.08
pence this year.
Net cash flow from operating activities remained strong at #32.5m in 2000/01
against #32.4m in the previous year. The group balance sheet also remains
strong, and gearing at the year end stood at 36.2% against 38.9% last year.
Interest is covered more than five times.
Dividend
Your board recommends a final dividend of 5.70 pence per share. Taken
together with the interim dividend of 2.30 pence already paid, the total
dividend for the year is therefore 8.00 pence (1999/00 8.00 pence).
Current Trading
Trading in The Malcolm Group is satisfactory.
In the Logistic Services division, activity levels remain strong. Our entry
into rail freight is proving successful and, with the depot infrastructure and
rail network now in place, this division is well placed to make progress this
year.
The Construction Services division remains extremely busy and order books are
healthy. The integration of the Malcolm family companies, acquired in February
of this year, has been successfully implemented. A key target for this
division is to enhance margins and early evidence suggests that this is being
achieved.
Underlying trading for the EWM group is strong.
Total sales for the first 9 weeks are up 16.4% on the same period last year
and more significantly, like for like sales are up by 15.4%. Gross margin in
# terms is up by 17.4% on a like for like basis. Overall, a very good start
to the year.
Easter trading has been encouraging. Looking ahead, the tourist business is
likely to be difficult in the short term due to the outbreak of foot and mouth
disease. This will undoubtedly impact upon the number of overseas visitors
this year. It is too early to assess the full impact.
Overall, the group has had a satisfactory start to the year.
Grampian Holdings p.l.c.
Group Profit and Loss Account
For the year ended 2 February 2001
2000/01 1999/00
Note #000 #000
Turnover 1 243,880 234,941
Cost of sales 205,690 193,595
----- -----
Gross profit 38,190 41,346
Net operating expenses 20,278 20,183
----- -----
Operating profit 17,912 21,163
Exceptional items 2
Fundamental restructuring costs - (1,085)
Branded Leisure Goods loss on
disposals and closure costs - (6,365)
----- -----
Profit before interest
and taxation 17,912 13,713
Interest 3,265 2,743
----- -----
Profit on ordinary activities
before taxation 14,647 10,970
Taxation 3 4,716 4,661
----- -----
Profit attributable
to shareholders 9,931 6,309
Dividends 4 9,148 8,749
----- -----
Transferred to/(from) reserves 783 (2,440)
----- -----
Earnings per ordinary share 5 9.08p 5.78p
----- -----
Diluted earnings per
ordinary share 5 9.07p 5.77p
----- -----
IIMR Headline earnings
per ordinary share 5 9.08p 10.95p
----- -----
Group Statement of Total Recognised Gains and Losses
2000/01 1999/00
#000 #000
Profit attributable to shareholders 9,931 6,309
Unrealised surplus on
revalued freehold warehousing 7,847 -
Exchange differences on net
assets of subsidiaries 110 (78)
----- -----
Total recognised gains and losses 17,888 6,231
----- -----
Grampian Holdings p.l.c.
Group Balance Sheet
As at 2 February 2001
2001 2000
Note #000 #000 #000 #000
Fixed assets
Intangible assets 177 329
Tangible assets
Land and buildings 72,304 58,521
Plant and machinery 5,174 4,356
Motor vehicles 15,692 15,236
Fixtures and fittings 15,717 15,741
----- -----
108,887 93,854
Investments 23 23
----- -----
109,087 94,206
Current assets
Stocks 30,237 32,256
Debtors 23,923 22,114
Cash at bank and in hand 5,526 4,914
----- -----
59,686 59,284
Creditors: amounts falling
due within one year 74,946 48,810
----- -----
Net current (liabilities)/assets (15,260) 10,474
----- -----
Total assets less current
liabilities 93,827 104,680
Creditors: amounts falling
due after one year 1,071 20,689
Accruals and deferred income
Deferred government grants 62 122
Capital contributions 781 533
----- -----
843 655
Provisions for liabilities
and charges 4,086 4,265
Minority interests
(including non-equity interests) 150 150
----- -----
Net assets 87,677 78,921
----- -----
Capital and reserves
Called up share capital 27,357 27,347
Share premium account 16,049 16,043
Capital redemption reserve 2,811 2,811
Revaluation reserve 15,206 7,593
Other reserves (375) (485)
Profit and loss account 26,629 25,612
----- -----
Shareholders' funds 6 87,677 78,921
----- -----
Grampian Holdings p.l.c.
Group Cash Flow Statement
For the year ended 2 February 2001
2000/01 1999/00
Note #000 #000 #000 #000
Cash inflow from
operating activities 7 32,467 32,359
Returns on investments
and servicing of finance (3,250) (2,670)
Taxation (4,520) (2,888)
Capital expenditure
and financial investment (17,171) (21,954)
Acquisitions and disposals 47 (1,063)
Equity dividends paid (8,754) (8,410)
----- -----
Cash outflow before use
of liquid resources
and financing (1,181) (4,626)
Financing
Net issue of shares 16 170
Increase in debt and
lease financing 2,600 7,463
----- -----
2,616 7,633
----- -----
Increase in cash 1,435 3,007
----- -----
Reconciliation of net cash flow to movement in net debt
2000/01 1999/00
Note #000 #000
Increase in cash 1,435 3,007
Cash inflow from increase
in debt and lease financing (2,600) (7,463)
----- -----
Change in net debt
resulting from cash flows (1,165) (4,456)
Loans and finance leases
acquired with subsidiaries - (327)
Loans and finance leases
disposed of with subsidiaries - 116
New finance leases - (117)
Translation differences 69 (27)
----- -----
Increase in net debt (1,096) (4,811)
Opening net debt (30,664) (25,853)
----- -----
Closing net debt 8 (31,760) (30,664)
----- -----
Grampian Holdings p.l.c.
Notes
1. Segmental analysis
Turnover Operating profit/(loss) Net assets
2000/01 1999/00 2000/01 1999/00 2001 2000
Continuing
operations: #000 #000 #000 #000 #000 #000
The Malcolm Group 86,543 71,613 7,181 9,423 75,489 64,133
EWM Group 157,337 154,292 11,693 13,447 44,526 45,335
Central costs - - (962) (769) - -
----- ----- ----- ----- ----- -----
Total continuing
operations 243,880 225,905 17,912 22,101 120,015 109,468
Discontinued
operations:
Branded Leisure
Goods - 9,036 - (938) 1,003 2,641
----- ----- ----- ----- ----- -----
243,880 234,941 17,912 21,163 121,018 112,109
----- ----- ----- -----
Unallocated net
liabilities (33,341) (33,188)
----- -----
87,677 78,921
----- -----
Unallocated net liabilities consist primarily of core group borrowings,
dividends, centrally held liabilities less centrally held assets. The
comparative net asset figures for Branded Leisure Goods and EWM Group have
been restated to reflect the reallocation of a property.
Geographical analysis by origin:
Turnover Operating profit Net assets
2000/01 1999/00 2000/01 1999/00 2001 2000
#000 #000 #000 #000 #000 #000
United Kingdom and
Republic of Ireland 243,880 234,941 17,912 21,163 120,897 112,003
Europe - EU - - - - 121 106
Unallocated net
liabilities (33,341) (33,188)
----- ----- ----- ----- ----- -----
243,880 234,941 17,912 21,163 87,677 78,921
----- ----- ----- ----- ----- -----
Segmental analysis:
Turnover by destination
2000/01 1999/00
#000 #000
United Kingdom and
Republic of Ireland 242,057 228,739
Europe - EU 1,297 4,189
Europe - Non EU - 343
America 493 1,492
Rest of the world 33 178
----- -----
243,880 234,941
----- -----
Grampian Holdings p.l.c.
Notes (continued)
2. Exceptional items
2000/01 1999/00
#000 #000 #000 #000
Continuing operations
- fundamental
restructuring costs - (1,085)
Discontinued operations:
Branded Leisure Goods
Closure costs -* (368)***
----- -----
Loss on sale of businesses -** (2,970)
Goodwill reinstated on disposal - (3,027)
----- -----
- (5,997)
----- -----
Total Branded Leisure Goods - (6,365)
---- -----
Total exceptional items - (7,450)
---- -----
* Net of the utilisation of provisions and accruals totalling #634,000 made
in 1999/00 and #19,000 made in 1996/97.
** Net of the utilisation of provisions of #220,000 made in 1999/00.
*** Net of the utilisation of provisions of #884,000 made in 1998/99 and #
32,000 made in 1996/97.
3. Taxation
2000/01 1999/00
#000 #000
The charge for the year comprises:
Corporation tax - on profit for the year 4,519 4,347
- prior year adjustments (423) (121)
Overseas taxation 9 19
Deferred taxation - current year 430 337
- prior year adjustments 181 149
- arising from change of rate - (70)
----- -----
4,716 4,661
----- -----
The overall tax charge for the year is higher than the standard rate due to
depreciation on non qualifying assets and other disallowable items (1999/00
higher due to the loss on disposal and goodwill reinstated on the sale of the
Branded Leisure Goods businesses included in exceptional items).
The tax effect in the profit and loss account relating to exceptional
items in 1990/00 was a credit of #1,015,000 of which #297,000 related to
restructuring costs.
4. Dividends
2000/01 1999/00
#000 #000
Equity - Ordinary: interim paid 2.3p per
share (1999/00 2.3p) and
final proposed 5.7p per share (1999/00 5.7p) 9,148 8,749
----- -----
The final proposed dividend reflects the increased number of shares in issue
following the acquisition of the Malcolm family companies in February 2001.
Grampian Holdings p.l.c.
Notes (continued)
5. Earnings per ordinary share
2000/01 1999/00
#000 #000
The calculations of earnings per 25p
ordinary share are based on earnings as
follows:
Earned for ordinary
shareholders - basic and diluted 9,931 6,309
Add back IIMR (Nil per share (1999/00 5.17p)) - 5,647
----- -----
Earned for ordinary shareholders - IIMR basis 9,931 11,956
----- -----
The IIMR Headline earnings per share has also been presented as this figure is
used by the investment community. The IIMR earnings adjustment represents the
exceptional loss on disposal and closure costs of discontinued businesses, net
of tax.
2000/01 1999/00
Number Number
of shares of shares
Basic weighted average number of
ordinary shares in issue during the year
(excluding shares owned by the
Grampian Employee Share Trust) 109,413,673 109,197,222
Dilutive potential ordinary shares
- employee share options 79,019 230,152
------------- -------------
Diluted weighted average number
of ordinary shares in issue 109,492,692 109,427,374
------------- -------------
6. Reconciliation of movements in shareholders' funds
Group
2000/01 1999/00
#000 #000
Total recognised gains and losses 17,888 6,231
Dividends (9,148) (8,749)
Other movements:
New shares issued 16 170
Goodwill reinstated on disposals - 3,027
----- -----
Total movements during the year 8,756 679
Shareholders' funds at beginning of year 78,921 78,242
----- -----
Shareholders' funds at end of year 87,677 78,921
----- -----
7. Reconciliation of operating profit to net cash inflow from operating
activities
2000/01 1999/00
#000 #000
Operating profit 17,912 21,163
Depreciation and amortisation of fixed assets 11,753 10,526
Gain on disposal of tangible fixed assets (1,374) (1,163)
Grants released (59) (70)
Increase/(decrease) in capital contributions 248 (200)
Decrease in stocks 2,019 5,819
(Increase)/decrease in debtors (1,609) 314
Increase/(decrease) in creditors 4,666 (2,292)
Decrease in provisions for
liabilities and charges (93) (588)
----- -----
33,463 33,509
Net cash outflow in respect of exceptional costs (996)* (1,150)**
----- -----
Net cash inflow from operating activities 32,467 32,359
----- -----
* #854,000 relates to exceptional costs provided and accrued in 1999/00 and #
142,000 provided and accrued in earlier years.
** #1,039,000 relates to exceptional costs provided and accrued in 1998/99.
Grampian Holdings p.l.c.
Notes (continued)
8. Analysis of net debt
Other
non-cash Exchange
At 29/1/00 Cash flow changes movements At 2/2/01
#000 #000 #000 #000 #000
Cash at bank and in hand
(excluding cash deposits) 4,753 603 - 9 5,365
Cash deposits 161 - - - 161
Overdraft (2,809) 832 - - (1,977)
----- ----- ----- ----- -----
2,105 1,435 - 9 3,549
----- ----- ----- ----- -----
Debt due after one year (19,750) - 19,750 - -
Debt due within one year (12,301) (3,092) (19,750) 60 (35,083)
Finance leases and hire
purchase contracts (718) 492 - - (226)
----- ----- ----- ----- -----
(32,769) (2,600) - 60 (35,309)
----- ----- ----- ----- -----
(30,664) (1,165) - 69 (31,760)
----- ----- ----- ----- ----
9. Annual accounts
Full accounts, which incorporate an unqualified auditors' report, will be
posted to shareholders shortly and delivered to the Registrar of Companies for
filing following the annual general meeting. The figures for 1999/00 are
abridged from unqualified audited accounts which have been delivered to the
Registrar of Companies. The financial information contained in this
Preliminary Announcement does not constitute statutory accounts as defined in
Section 240 of the Companies Act 1985.
10. Annual general meeting
The annual general meeting will be held at 12 noon on Friday, 29 June 2001 at
the Thistle Hotel, Cambridge St, Glasgow.
- ENDS -
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