TIDMSTT
RNS Number : 4991P
Straight PLC
26 March 2009
26 March 2009
Straight plc
Preliminary Results
for the year ended 31 December 2008
Straight plc (AIM: STT), the recycling products and services group, is pleased
to announce its Preliminary Results for the year ended 31 December 2008.
Key Points
* Revenue increased by 8% to GBP25.4m (2007: GBP23.6m)
*
* Core Trade Business revenue up 20% to GBP23.1m (2007: GBP19.3m)
* Headline Operating profit reduced from GBP1.0m to GBP0.4m
*
* Headline Core Trade Business Operating Profit increased by 27% to GBP2.2m (2007:
GBP1.7m)
* Loss making Retail Business rationalised and restructured
* Strong cash position at year end of GBP1.6m (2007: GBP1.6m)
* Record order book supported by sustained capital investment in the year
* Final dividend maintained at 2.0p, resulting in full year dividend of 3.0p
(2007: 3.25p)
Commenting on the results, James Newman, Chairman of Straight plc, said: "The
Board is encouraged by its record order book. This, combined with the cost
reductions achieved as a result of the strategic review, has put the business in
excellent shape to capitalise on its unique market position".
Jonathan Straight, Chief Executive of Straight plc, added: "As a result of the
actions we have taken the business which has emerged from 2008 is reinvigorated
and is both profitable and cash generative. The Board is confident that 2009
will prove to be a successful year".
The preliminary announcement was approved by the Board on 26 March 2009.
For further information: please contact:
+-----------------------------------------------+---------------------------+
| Straight plc | |
+-----------------------------------------------+---------------------------+
| James Newman, Chairman | 07850 672 727 |
| Jonathan Straight, Chief Executive | 0113 245 2244 |
+-----------------------------------------------+---------------------------+
| | |
+-----------------------------------------------+---------------------------+
| Panmure Gordon | |
+-----------------------------------------------+---------------------------+
| Andrew Godber / Katherine Roe | 0207 459 3600 |
+-----------------------------------------------+---------------------------+
| | |
+-----------------------------------------------+---------------------------+
| Redleaf Communications | |
+-----------------------------------------------+---------------------------+
| Paul Dulieu / Sam Robbins / Kathryn Hurford | 0207 566 6700 |
+-----------------------------------------------+---------------------------+
Notes to Editors
* Straight plc was established in 1993, by Jonathan Straight, to supply container
solutions for source separated waste. Initially one man and a desk, the company
grew to become the UK's leading supplier of kerbside recycling boxes as well as
a key supplier of other types of waste and recycling container solutions.
* Following sustained growth, Straight joined AIM in 2003 with a view to fuelling
further growth.
* In 2005, Straight acquired Blackwall Limited, the UK's largest supplier of home
composters and water butts. Since integrating the two businesses, Straight now
provides a wide range of waste and recycling solutions to local authorities, the
waste industry and general businesses. Straight also delivers environmental home
and garden products directly to end users in partnership with local authorities
and utilities.
* Further information about the company and its products can be found at:
www.straight.co.uk
Chairman's Statement
I am pleased to report that the Group has strengthened its position during 2008
and has performed particularly well over the past six months. Following a
strategic review and subsequent restructuring of the business in the fourth
quarter, the Group is now in excellent shape and is rising to the opportunities
and challenges presented by the current economic climate.
Trading performance
Overall, the Group's turnover for the year increased by 8% to GBP25.4m (2007:
GBP23.6m). The balance sheet remains strong with cash balances at the year end
of GBP1.6m (2007: GBP1.6m) following record investment in product design and new
tooling.
Trade Business - Environmental Container Solutions
The Group's core Trade Business performed strongly during the year. Whilst the
Group's sales overall were up 8% at GBP25.4m (2007: GBP23.6m), revenues from the
core Trade Business increased by 20% to GBP23.1m (2007: GBP19.3m), demonstrating
the importance of the Trade Business to the Group's growth potential. This was
as a result of continuing demand for the Group's newly introduced products, such
as food waste collection containers, as well as the benefits of the high level
of investment in new tooling to further increase production capacity.
During the year, the Group has continued to develop its overseas sales channels
and is now producing and selling water butts in Australia. It has also
experienced strong initial sales in North America through its distributor. The
latter activity has been buoyed by the weakness of Sterling against the US
Dollar.
Gross margins in the Trade Business fell slightly as a result of a high level of
lower margin wheeled bins in the sales mix. However, the Group's own proprietary
products performed exceptionally well with improved margins.
Retail Business - Direct to Consumer Environmental Products
The Retail Business continued to perform poorly with revenues down 53% to just
GBP2.3m (2007: GBP4.3m). This was due to poor sales as well as a significant
drop in activity on the WRAP fulfillment contract due to the reduction in
government funding for this programme.
Overall Result
As a result of the under-performing Retail Business and a slight increase in
overheads due to the Group moving into new premises during the year, operating
profits (before goodwill impairment and the costs associated with the strategic
review) were GBP0.4m (2007: GBP1m) and the loss before taxation was GBP1.0m
(2007: profit GBP0.6m)
Strategic Review
In July 2008, the Board announced that it was conducting a strategic review of
the Retail Business in an attempt to reduce the substantial losses it was
incurring. This review was completed during the third quarter of the year and
resulted in a significant rationalisation of the retail division. As a result,
product lines, distribution costs and associated overheads have been
substantially reduced and only those activities which the Board considers to be
of strategic importance have continued into 2009. These actions resulted in the
Retail Business reporting significantly reduced losses for the fourth quarter of
the year.
The Board also examined the Trade Business with a particular emphasis on
reducing overhead costs. As a result of this extensive exercise, the Group's
fixed overheads have been considerably reduced. Consequently, operational
gearing, employee costs and inventory holding costs will be much lower going
forward.
As a result of these actions, the Group has incurred one-off redundancy and
stock write-down costs during the year of GBP0.4m. This will not affect the
Group's ability or capacity to meet the requirements of its customers.
Earnings per share
Headline earnings per share, which excludes the impact of the strategic review
costs and goodwill impairment, were 4.6p (2007: 9.4p). The basic loss per share
was 8.9p (2007: earnings 4.8p).
Dividend
An interim dividend of 1.0p (2007: 1.25p) was paid in December 2008. Despite the
reduced level of operating profitability for the year, the Board is still
proposing to pay a final dividend of 2.0p (2007: 2.0p). This dividend will be
paid on 5 June 2009 to shareholders on the register on 8 May 2009 and is subject
to shareholder approval at the Annual General Meeting. This gives a total
dividend for the year of 3.0p (2007: 3.25p).
Business Developments
In January 2009, the Group announced the acquisition of the business and assets
of Harcostar Garden Products for a total consideration of GBP0.4m. Harcostar is
a long established premium brand providing water butts, compost bins, watering
cans and accessories to the garden trade both in the UK and in Europe. This
acquisition is in line with the Group's ambitions of developing its product
range, market penetration and brand portfolio.
Board and Employees
At the Annual General Meeting in June 2008, Roger Green retired as a
non-executive director and as Chairman of the Audit Committee. At that time, I
stated that it was our intention to seek a replacement. However, in light of the
current economic climate, the Board feels that it is well served by its two
existing non-executive directors. Colin Glass has become Chairman of the Audit
Committee.
I would like to thank my Board colleagues for their continued efforts and
support.
Outlook
Following a strong performance in the fourth quarter of 2008, the Group's Trade
Business began 2009 with an order book of GBP8.4m. Trading performance in the
first two months of the year has been ahead of forecast.
The Retail Business has started the year in line with the Board's expectations.
The Board is encouraged by its record order book. This, combined with the cost
reductions achieved as a result of the strategic review, has put the business in
excellent shape to capitalise on its unique market position.
James H Newman
Chairman
26 March 2009
Chief Executive's Review
Whilst the overall result for 2008 is disappointing, our core Trade Business
continues to grow and the positive actions resulting from the strategic review
leave us with a business which is in a fit and lean condition. This is
demonstrated by a much improved performance since October 2008.
Trade Business
Municipal Sales
Established core proprietary products, such as kerbside boxes, have delivered
another record performance. Our strong order book continues to be supported by
new business which has exceeded our expectations.
As a business, we recognised the emerging market for containers for the
collection of food waste from domestic properties. Our strategy to gain first
mover advantage with a considerable investment in tooling has resulted in a
market-leading share as well as strong margins. The weakness of Sterling has
also helped provide an additional barrier to competition as currently most
competing products are made in mainland Europe.
The Steelybin four-wheeled waste and recycling bin has continued to gain market
share. Extensive work on the supply chain has further improved margins and has
insulated us against the risk of currency fluctuation.
Corporate Sales
With more than 80% of sales coming from the UK municipal sector, the Board
believes it is desirable to broaden the Group's customer base. Due to the
considerable potential for increased sales of waste and recycling containers in
the UK corporate market, a separate team has been formed to focus on this
sector. This team will also be responsible for developing further export sales
and overseas markets.
During the year, the Group continued to develop its overseas sales channels and
is now producing and selling water butts in Australia. It has also experienced
strong initial sales in the United States and Canada through its distributor.
This activity has been buoyed by the weakness of Sterling against the US Dollar.
Having successfully demonstrated the flexibility of its unique business model in
overseas markets, the Group is embarking on a broader programme of international
sales development.
New Product Development
Of the capital invested during 2008, GBP1.3m was spent on tooling. The primary
focus was the food waste collection system with new container ranges for kitchen
use and several moulds for the market-leading Kerbside Caddy.
The EcosortTM range of office recycling containers was also introduced. This
allows a move from the purchase of factored items to a proprietary product range
with the associated margin improvement.
Acquisition of Harcostar
Our association with Harcostar goes back many years and we have been interested
in the business and the brand for some time. This brand is at the top end of the
garden products spectrum and allows enhanced margin opportunities. The products
are distributed to the independent garden centre sector in the UK and to key
accounts in Europe. Neither market area has been a focus of the Group before and
this acquisition provides distribution possibilities for the Group's core range
as well as providing a brand which can be used for a broader range of products
in the future.
Despite this acquisition being made very recently, it is already making a
positive contribution to profits for 2009.
Retail Business
A poor gardening season for the second year running led to a further fall in
retail sales. As well as low sales levels, the parcel delivery method used
proved far more expensive than budgeted and we were unable to replace this with
a lower cost solution until the latter part of the year. The previously
profitable fulfillment work also reduced as a cut in funding to WRAP by Defra
resulted in consumer prices being increased and a subsequent drop in activity
levels.
As a result, a very detailed review of the Retail Business was conducted during
the second half of the year with all options considered including the complete
closure of the division. The Board concluded that there was value in the retail
business where proprietary products were being sold or where the partner was a
utility or a local authority. Consequently, the Retail Business was dramatically
rationalised with the cessation of all activities outside of these areas.
A new delivery model was also successfully piloted and has now been rolled out
nationwide. This uses specially developed software to give a tight degree of
control over the distribution process. It is now possible to deliver large
products, such as compost bins and water butts, using a low cost service but
with the required degree of control to maintain customer satisfaction.
Since the fourth quarter of 2008, the losses attributable to the Retail Business
have been significantly reduced. The smaller, leaner Retail Business has made a
good start to 2009.
Home composting market
Another key reason for the decision to maintain a retail capacity was the
possibility for growth in local authority business when the WRAP home composting
project ended in March 2011. However, WRAP recently announced that it will now
exit the English market at the end of September 2009, eighteen months earlier
than originally expected. The Group is the leading private sector provider of
home composting programmes and it is anticipated that a significant proportion
of local authorities will transfer their campaigns to the Group when the WRAP
project ends.
Management and staff
During the strategic review, the Board recognised the need to reduce fixed costs
and streamline the structure of the whole business. As a result, there were a
number of redundancies during the year. The Group now has a smaller, close-knit,
team which is very focused and committed to the business. There has been no
impairment to the level of service offered to customers.
Environmental performance
A programme has been introduced to identify the carbon emissions of the business
with the aim of achieving a significant reduction. The move to the new offices
has resulted in a saving of nine tonnes of CO2 per year based on the daily
commute of the workforce. Additional work is ongoing and it is intended in due
course to offset those emissions that cannot be eliminated.
Staff
Finally I would like to thank my Board colleagues and staff for their support
and dedication during the year.
Outlook
The business is in very good shape and is far leaner and fitter than it has been
for a number of years. Fixed costs are lower and the previous risks to
profitability posed by the Retail Business have been removed whilst maintaining
a retail capability with its associated potential. Despite continued investment,
the Group's cash position is extremely healthy. The core Trade Business remains
strong and there is considerable potential to expand activities outside of the
UK.
As a result of the actions we have taken, the business which has emerged from
2008 is reinvigorated and is both profitable and cash generative. The Board is
confident that 2009 will prove to be a successful year.
Jonathan Straight
Chief Executive
26 March 2009
Finance Director's Review
Revenue and Operating Margins
Trade Business
Revenues grew 20% during 2008 from GBP19.3m to GBP23.1m driven by sales of
food-waste containers and greater than expected sales of lower margin wheeled
bins.
Gross margins were fractionally lower at 18.4% (2007: 18.7%) which is a result
of a higher weighting towards low margin wheeled bins during the first half of
the year. However, the Group's proprietary products performed exceptionally well
throughout the year with margins increasing to 22.4% (2007: 21.7%).
During the final quarter of the year, and further to a strategic review of our
Trade Business, a number of redundancies were made and unprofitable product
lines were eliminated. There were non-recurring costs of GBP0.2m, which included
redundancy costs and also the costs of writing down the tooling and inventories
associated with discontinued product lines. The ability of the business to
satisfy demand for strategically important products is not affected by these
cost savings.
The operating profit of the Trade Business, excluding non-recurring costs,
increased by 27% to GBP2.2m (2007: GBP1.7m). The ongoing savings arising as a
consequence of the strategic review will help to sustain this progress in 2009.
Retail Business
Revenues fell 53% from GBP4.3m to GBP2.3m during 2008. This fall was
attributable to a second successive poor season which impacted sales of water
butts and a fall of 60% in revenues generated from our WRAP fulfillment work. In
addition to the low sales volumes, the business struggled to make retail
deliveries at an acceptable cost for most of the year. As a consequence gross
margins were a disappointing 4.4%.
Following the strategic review of the Retail Business announced in July and
completed in September, distribution costs have been slashed and gross margins
are now at an acceptable level. In addition, the number of product lines offered
by the Retail Business has been greatly reduced. Finally, the WRAP Customer
Service Contract, which did not contribute to profits during the year, was
terminated on 31 December 2008.
A number of redundancies were made and slow moving product lines were
discontinued. Costs associated with these changes amounted to GBP0.2m. As the
new emergent Retail Business was much smaller than that acquired from Blackwall
in 2005, it was decided to reduce the carrying value of the goodwill associated
with it. Consequently, a provision of GBP1.0m was made during the year.
Including the costs associated with the strategic review and the write-down of
goodwill, the Retail Business made operating losses of GBP1.7m during the year.
The Retail Business overheads are now controlled and it is in a position to
profitably benefit from sales to strategically important clients, not least
those councils which the Board is confident will return to the Group as a
consequence of WRAP's withdrawal from the home composting market. The potential
for large losses has now been curtailed.
Central Overheads
Central overheads increased from GBP1.1m to GBP1.3m in the year following the
Group's relocation to new premises in January 2008. These overheads will fall in
2009 as the business will no longer be paying for unoccupied properties.
Operating Cashflow
In spite of the disappointing performance in the Retail Business, the Group was
able to increase cash generated from operations from GBP1.3m to GBP2.0m in the
year. This was through careful control of working capital and a zero-tolerance
policy to overdue debt. As a consequence the Group was able to invest GBP1.6m in
capital expenditure, much of which was on tooling for new products. This record
investment supported the increases noted above in gross margins and was
underwritten by the high demand for food-waste containers which has continued
into 2009. Cash balances at the end of 2008 were barely changed from the
previous year at GBP1.6m.
Earnings
Adjusted earnings per share, which exclude the non-recurring costs borne during
the year were 4.6p (2007: 9.4p). Including the costs associated with the
strategic reviews of both the Trade and Retail Businesses and the goodwill
provision against the Retail Business, the basic loss per share was 8.9p (2007:
4.8p profit).
Management of Financial Risk
The Group has maintained its policy of managing foreign exchange risk by
purchasing currency forward when it is notified that a relevant contract bid has
been successful.
A rigorously enforced credit control policy once again ensured that no
significant bad debts occurred.
The strategic review carried out by the Group has removed large amounts of fixed
cost from the business without affecting future sales. As consequence, the
Group's breakeven point and operating gearing are now much lower than throughout
most of 2008. The Retail Business has been reduced to less than 5% of budgeted
Group turnover and its potential to incur large losses has now been arrested.
James Mellor
Finance Director
26 March 2009
Consolidated Summarised Income Statement
For the year ended 31 December 2008
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| | | | Non- | | | Non- | |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| | | | recurring | | | recurring | |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| | | Headline | costs | Total | Headline | costs | Total |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| | | 2008 | 2008 | 2008 | 2007 | 2007 | 2007 |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| | Note | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| | | | | | | | |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| Revenue | 2 | 25,437 | - | 25,437 | 23,592 | - | 23,592 |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| Cost of sales | | (21,075) | - | (21,075) | (18,694) | - | (18,694) |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| | | _____ | _____ | _____ | _____ | _____ | _____ |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| Gross profit | | 4,362 | - | 4,362 | 4,898 | - | 4,898 |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| Operating costs | 4 | (3,949) | (1,422) | (5,371) | (3,900) | (476) | (4,376) |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| | | _____ | _____ | _____ | _____ | _____ | _____ |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| Operating | 2 | 413 | (1,422) | (1,009) | 998 | (476) | 522 |
| (loss)/profit | | | | | | | |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| Investment income | 5 | | | 37 | | | 67 |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| | | | | _____ | | | _____ |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| (Loss)/profit | | | | | | | |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| before taxation | 3 | | | (972) | | | 589 |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| | | | | | | | |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| Income tax | 6 | | | (52) | | | (33) |
| expense | | | | | | | |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
| | | | | _____ | | | _____ |
+-------------------+--------+----------+-----------+----------+----------+-----------+----------+
+-------------------+--------+---------+---------+---------+--------+--------+--------+
| (Loss)/profit for the year | | (1,024) | | | 556 |
| attributable to the equity holders | | | | | |
| of the Company | | | | | |
+--------------------------------------+---------+---------+--------+--------+--------+
| | | | | _____ | | | _____ |
+-------------------+--------+---------+---------+---------+--------+--------+--------+
Earnings per share (continuing and total)
for profit attributable to the equity holders
of the Company during the year
+-------------------+--------+-------------------------+-------------------------+
| Adjusted | 7 | 4.6p | 9.4p |
+-------------------+--------+-------------------------+-------------------------+
| Diluted adjusted | 7 | 4.6p | 9.3p |
+-------------------+--------+-------------------------+-------------------------+
| Basic | 7 | (8.9p) | 4.8p |
+-------------------+--------+-------------------------+-------------------------+
| Diluted basic | 7 | (8.9p) | 4.8p |
+-------------------+--------+-------------------------+-------------------------+
All operations are continuing.
Consolidated Summarised Balance Sheet
At 31 December 2008
+--------------------------------------+-----------+-------------+------------+
| | | 2008 | 2007 |
+--------------------------------------+-----------+-------------+------------+
| | | GBP'000 | GBP'000 |
+--------------------------------------+-----------+-------------+------------+
| Assets | | | |
+--------------------------------------+-----------+-------------+------------+
| Non current assets | | | |
+--------------------------------------+-----------+-------------+------------+
| Property, plant and equipment | | 2,776 | 1,513 |
+--------------------------------------+-----------+-------------+------------+
| Intangible assets | | 4,741 | 5,932 |
+--------------------------------------+-----------+-------------+------------+
| Investments | | 35 | 35 |
+--------------------------------------+-----------+-------------+------------+
| | | _____ | _____ |
+--------------------------------------+-----------+-------------+------------+
| | | 7,552 | 7,480 |
+--------------------------------------+-----------+-------------+------------+
| Current assets | | | |
+--------------------------------------+-----------+-------------+------------+
| Inventories | | 1,533 | 1,686 |
+--------------------------------------+-----------+-------------+------------+
| Trade and other receivables | | 3,675 | 3,553 |
+--------------------------------------+-----------+-------------+------------+
| Cash and cash equivalents | | 1,580 | 1,604 |
+--------------------------------------+-----------+-------------+------------+
| | | _____ | _____ |
+--------------------------------------+-----------+-------------+------------+
| | | 6,788 | 6,843 |
+--------------------------------------+-----------+-------------+------------+
| | | _____ | _____ |
+--------------------------------------+-----------+-------------+------------+
| Total assets | | 14,340 | 14,323 |
+--------------------------------------+-----------+-------------+------------+
| | | _____ | _____ |
+--------------------------------------+-----------+-------------+------------+
| Liabilities | | | |
+--------------------------------------+-----------+-------------+------------+
| Non current liabilities | | | |
+--------------------------------------+-----------+-------------+------------+
| Deferred taxation | | (120) | (45) |
+--------------------------------------+-----------+-------------+------------+
| | | _____ | _____ |
+--------------------------------------+-----------+-------------+------------+
| Current liabilities | | | |
+--------------------------------------+-----------+-------------+------------+
| Trade and other payables | | (5,302) | (3,941) |
+--------------------------------------+-----------+-------------+------------+
| Income tax payable | | - | (125) |
+--------------------------------------+-----------+-------------+------------+
| | | _____ | _____ |
+--------------------------------------+-----------+-------------+------------+
| | | (5,302) | (4,066) |
+--------------------------------------+-----------+-------------+------------+
| | | _____ | _____ |
+--------------------------------------+-----------+-------------+------------+
| | | | |
+--------------------------------------+-----------+-------------+------------+
| Total liabilities | | (5,422) | (4,111) |
+--------------------------------------+-----------+-------------+------------+
| | | _____ | _____ |
+--------------------------------------+-----------+-------------+------------+
| | | _____ | _____ |
+--------------------------------------+-----------+-------------+------------+
| Net assets | | 8,918 | 10,212 |
+--------------------------------------+-----------+-------------+------------+
| | | _____ | _____ |
+--------------------------------------+-----------+-------------+------------+
| | | | |
+--------------------------------------+-----------+-------------+------------+
| Equity attributable to equity | | | |
| holders of parent | | | |
+--------------------------------------+-----------+-------------+------------+
| Issued share capital | | 115 | 115 |
+--------------------------------------+-----------+-------------+------------+
| Share premium | | 5,970 | 5,970 |
+--------------------------------------+-----------+-------------+------------+
| Merger reserve | | 744 | 744 |
+--------------------------------------+-----------+-------------+------------+
| Profit and loss account | | 2,089 | 3,383 |
+--------------------------------------+-----------+-------------+------------+
| | | _____ | _____ |
+--------------------------------------+-----------+-------------+------------+
| Total equity | | 8,918 | 10,212 |
+--------------------------------------+-----------+-------------+------------+
| | | _____ | _____ |
+--------------------------------------+-----------+-------------+------------+
Consolidated Summarised Statement of Changes in Equity
For the year ended 31 December 2008
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | Share | Share | Merger | Profit | Total |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | Capital | Premium | Reserve | and | Equity |
| | | | | | Loss | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | | Account | | Account | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | | | | | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| At 1 January 2007 | | 115 | 5,953 | 744 | 3,208 | 10,020 |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | | | | | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | | | | | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| Profit and total income and | | - | - | - | 556 | 556 |
| expenses for the period | | | | | | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | | | | | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| Issue of shares | | - | 17 | - | - | 17 |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| Arising on grant of share | | - | - | - | 72 | 72 |
| options | | | | | | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | | | | | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| Dividends | | - | - | - | (453) | (453) |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | _____ | _____ | _____ | _____ | _____ |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| At 1 January 2008 | | 115 | 5,970 | 744 | 3,383 | 10,212 |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | | | | | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | | | | | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| Profit and total income and | | - | - | - | (1,024) | (1,024) |
| expenses for the period | | | | | | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | | | | | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| Arising on grant of share | | - | - | - | 75 | 75 |
| options | | | | | | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | | | | | |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| Dividends | | - | - | - | (345) | (345) |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | _____ | _____ | _____ | _____ | _____ |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| At 31 December 2008 | | 115 | 5,970 | 744 | 2,089 | 8,918 |
+---------------------------------+---------+---------+---------+---------+---------+---------+
| | | _____ | _____ | _____ | _____ | _____ |
+---------------------------------+---------+---------+---------+---------+---------+---------+
Consolidated Summarised Cash Flow Statement
For the year ended 31 December 2008
+--------------------------------------------------+-----+-----------+-----------+
| | | 2008 | 2007 |
+--------------------------------------------------+-----+-----------+-----------+
| | | GBP'000 | GBP'000 |
+--------------------------------------------------+-----+-----------+-----------+
| Cash flows from operating activities | | | |
+--------------------------------------------------+-----+-----------+-----------+
| Profit after taxation: | | (1,024) | 556 |
+--------------------------------------------------+-----+-----------+-----------+
| Adjustment for: | | | |
+--------------------------------------------------+-----+-----------+-----------+
| Depreciation | | 350 | 306 |
+--------------------------------------------------+-----+-----------+-----------+
| Profit on sale of property plant and equipment | | (7) | (3) |
+--------------------------------------------------+-----+-----------+-----------+
| Goodwill impairment | | 1,040 | 17 |
+--------------------------------------------------+-----+-----------+-----------+
| Other intangibles amortisation | | 167 | 72 |
+--------------------------------------------------+-----+-----------+-----------+
| Investment income | | (37) | (67) |
+--------------------------------------------------+-----+-----------+-----------+
| Taxation expense recognised in income statement | | 52 | 33 |
+--------------------------------------------------+-----+-----------+-----------+
| Share option costs recognised in income | | 75 | 72 |
| statement | | | |
+--------------------------------------------------+-----+-----------+-----------+
| Decrease/(increase) in inventories | | 153 | (505) |
+--------------------------------------------------+-----+-----------+-----------+
| (Increase)/decrease in trade and other | | (99) | 1,504 |
| receivables | | | |
+--------------------------------------------------+-----+-----------+-----------+
| Increase/(decrease) in trade payables | | 1,361 | (665) |
+--------------------------------------------------+-----+-----------+-----------+
| | | _____ | _____ |
+--------------------------------------------------+-----+-----------+-----------+
| Cash generated from operations | | 2,031 | 1,320 |
+--------------------------------------------------+-----+-----------+-----------+
| | | | |
+--------------------------------------------------+-----+-----------+-----------+
| Income tax paid | | (125) | (507) |
+--------------------------------------------------+-----+-----------+-----------+
| | | _____ | _____ |
+--------------------------------------------------+-----+-----------+-----------+
| Net cash from operating activities | | 1,906 | 813 |
+--------------------------------------------------+-----+-----------+-----------+
| | | | |
+--------------------------------------------------+-----+-----------+-----------+
| Cash flows from investing activities | | | |
+--------------------------------------------------+-----+-----------+-----------+
| Purchase of investments | | - | (35) |
+--------------------------------------------------+-----+-----------+-----------+
| Purchase of intangibles | | (16) | (302) |
+--------------------------------------------------+-----+-----------+-----------+
| Purchase of property, plant and equipment | | (1,613) | (639) |
+--------------------------------------------------+-----+-----------+-----------+
| Proceeds from sale of equipment | | 7 | 10 |
+--------------------------------------------------+-----+-----------+-----------+
| Interest received | | 37 | 67 |
+--------------------------------------------------+-----+-----------+-----------+
| | | _____ | _____ |
+--------------------------------------------------+-----+-----------+-----------+
| Net cash used in investing activities | | (1,585) | (899) |
+--------------------------------------------------+-----+-----------+-----------+
| | | | |
+--------------------------------------------------+-----+-----------+-----------+
| Cash flows from financing activities | | | |
+--------------------------------------------------+-----+-----------+-----------+
| Proceeds from issue of share capital | | - | 17 |
+--------------------------------------------------+-----+-----------+-----------+
| Dividends paid | | (345) | (453) |
+--------------------------------------------------+-----+-----------+-----------+
| | | _____ | _____ |
+--------------------------------------------------+-----+-----------+-----------+
| Net cash used in financing activities | | (345) | (436) |
+--------------------------------------------------+-----+-----------+-----------+
| | | | |
+--------------------------------------------------+-----+-----------+-----------+
| Net (decrease)/increase in cash and cash | | (24) | (522) |
| equivalents | | | |
+--------------------------------------------------+-----+-----------+-----------+
| | | _____ | _____ |
+--------------------------------------------------+-----+-----------+-----------+
| Cash and cash equivalents at beginning of period | | 1,604 | 2,126 |
+--------------------------------------------------+-----+-----------+-----------+
| | | _____ | _____ |
+--------------------------------------------------+-----+-----------+-----------+
| Cash and cash equivalents at end of period | | 1,580 | 1,604 |
+--------------------------------------------------+-----+-----------+-----------+
| | | _____ | _____ |
+--------------------------------------------------+-----+-----------+-----------+
Notes to the Preliminary Announcement
For the year ended 31 December 2008
1.Basis of preparation
The preliminary announcement has been prepared in accordance with applicable
International Financial Reporting Standards as adopted by the EU.
2. Segmental reporting
The operating results are attributable to the principal activities of the Group.
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | | | Central | | | | Central | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | Trade | Retail | overhead | Total | Trade | Retail | overhead | Total |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | 2008 | 2008 | 2008 | 2008 | 2007 | 2007 | 2007 | 2007 |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| Revenue | 23,158 | 2,279 | - | 25,437 | 19,304 | 4,288 | - | 23,592 |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| Cost of sales | (18,897) | (2,178) | - | (21,075) | (15,702) | (2,992) | - | (18,694) |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | _____ | _____ | _____ | _____ | _____ | _____ | _____ | _____ |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| Gross profit | 4,261 | 101 | - | 4,362 | 3,602 | 1,296 | - | 4,898 |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| Operating costs | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| excluding non- | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| recurring costs | (2,072) | (609) | (1,268) | (3,949) | (1,874) | (963) | (1,063) | (3,900) |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | _____ | _____ | _____ | _____ | _____ | _____ | _____ | _____ |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| Operating profit | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| excluding non- | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| recurring costs | 2,189 | (508) | (1,268) | 413 | 1,728 | 333 | (1,063) | 998 |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | _____ | _____ | _____ | _____ | _____ | _____ | _____ | _____ |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| Strategic review | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| of the business | (246) | (150) | - | (396) | - | - | - | - |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| Goodwill | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| write-down | - | (1,026) | - | (1,026) | - | - | - | - |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| Costs associated | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| with changes to | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| Retail distribution | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| model | - | - | - | - | - | (476) | - | - |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | _____ | _____ | _____ | _____ | _____ | _____ | _____ | _____ |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| Non-recurring | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| operating costs | (246) | (1,176) | - | (1,422) | - | (476) | - | (476) |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | _____ | _____ | _____ | _____ | _____ | _____ | _____ | _____ |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| Total operating | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| costs | (2,318) | (1,785) | (1,268) | (5,371) | (1,874) | (1,439) | (1,063) | (4,376) |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | _____ | _____ | _____ | _____ | _____ | _____ | _____ | _____ |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | _____ | _____ | _____ | _____ | _____ | _____ | _____ | _____ |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| Operating | | | | | | | | |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| (loss)/profit | 1,943 | (1,684) | (1,268) | (1,009) | 1,728 | (143) | (1,063) | 522 |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
| | _____ | _____ | _____ | _____ | _____ | _____ | _____ | _____ |
+---------------------+----------+---------+----------+----------+----------+---------+----------+----------+
It is not possible to split the central overhead (which includes the
amortisation of purchased goodwill and trademarks) between the operating
segments of the business as the resources to which it relates are common to both
segments.
All assets other than trade receivables are used in both segments of the
business. The amount carried in trade receivables which relates to the
Retail Business is GBP8,000 (2007: GBP134,000).
Depreciation of GBP280,000 (2007: GBP245,000) and amortisation of computer
software of GBP133,000 (2007: GBP58,000) have been included within the operating
costs of the Trade Business. Depreciation of GBP70,000 (2007: GBP61,000) and
amortisation of computer software of GBP33,000 (2007: GBP14,000) have been
included within the operating costs of the Retail Business.
3.Profit before tax
The profit before taxation is stated after the costs below.
+-------------------------------------------------+--+-----------+-----------+
| | | 2008 | 2007 |
+-------------------------------------------------+--+-----------+-----------+
| | | GBP'000 | GBP'000 |
+-------------------------------------------------+--+-----------+-----------+
| | | | |
+-------------------------------------------------+--+-----------+-----------+
| Depreciation | | 350 | 306 |
+-------------------------------------------------+--+-----------+-----------+
| Goodwill impairment | | 1,040 | 17 |
+-------------------------------------------------+--+-----------+-----------+
| Other intangibles non-current assets | | 167 | 72 |
| amortisation | | | |
+-------------------------------------------------+--+-----------+-----------+
| Operating lease rentals - land and buildings | | 172 | 97 |
+-------------------------------------------------+--+-----------+-----------+
| Auditors' remuneration - audit services | | 26 | 24 |
+-------------------------------------------------+--+-----------+-----------+
| Auditors' remuneration - review of interim | | 3 | 6 |
| financial statements | | | |
+-------------------------------------------------+--+-----------+-----------+
| Share based payments | | 75 | 72 |
+-------------------------------------------------+--+-----------+-----------+
4.Operating costs
+----------------------------------------------------+-----------+-----------+
| | 2008 | 2007 |
+----------------------------------------------------+-----------+-----------+
| | GBP'000 | GBP'000 |
+----------------------------------------------------+-----------+-----------+
| | | |
+----------------------------------------------------+-----------+-----------+
| Distribution costs | 1,842 | 2,143 |
+----------------------------------------------------+-----------+-----------+
| Administrative expenses | 2,107 | 1,757 |
+----------------------------------------------------+-----------+-----------+
| | _____ | _____ |
+----------------------------------------------------+-----------+-----------+
| Operating costs excluding non-recurring costs | 3,949 | 3,900 |
+----------------------------------------------------+-----------+-----------+
| | | |
+----------------------------------------------------+-----------+-----------+
| Non-recurring costs (see note 2) | 1,422 | 476 |
+----------------------------------------------------+-----------+-----------+
| | _____ | _____ |
+----------------------------------------------------+-----------+-----------+
| Operating expenses | 5,371 | 4,376 |
+----------------------------------------------------+-----------+-----------+
| | _____ | _____ |
+----------------------------------------------------+-----------+-----------+
5. Investment income
+--------------------------------------------------+--+-----------+-----------+
| | | 2008 | 2007 |
+--------------------------------------------------+--+-----------+-----------+
| | | GBP'000 | GBP'000 |
+--------------------------------------------------+--+-----------+-----------+
| | | | |
+--------------------------------------------------+--+-----------+-----------+
| Bank deposits | | 37 | 67 |
+--------------------------------------------------+--+-----------+-----------+
| | | ____ | ____ |
+--------------------------------------------------+--+-----------+-----------+
6.Taxation
+------------------------------------------------+----+-----------+-----------+
| | | 2008 | 2007 |
+------------------------------------------------+----+-----------+-----------+
| | | GBP'000 | GBP'000 |
+------------------------------------------------+----+-----------+-----------+
| | | | |
+------------------------------------------------+----+-----------+-----------+
| Corporation tax at an average rate of 23.7% | | (21) | 125 |
| (2006: 25%) | | | |
+------------------------------------------------+----+-----------+-----------+
| Over provision in prior years | | (2) | (102) |
+------------------------------------------------+----+-----------+-----------+
| | | ____ | ____ |
+------------------------------------------------+----+-----------+-----------+
| Current tax | | (23) | 23 |
+------------------------------------------------+----+-----------+-----------+
| | | | |
+------------------------------------------------+----+-----------+-----------+
| Deferred tax | | 75 | 10 |
+------------------------------------------------+----+-----------+-----------+
| | | ____ | ____ |
+------------------------------------------------+----+-----------+-----------+
| Income tax expense | | 52 | 33 |
+------------------------------------------------+----+-----------+-----------+
| | | ____ | ____ |
+------------------------------------------------+----+-----------+-----------+
| Analysis of total tax charge | | | |
+------------------------------------------------+----+-----------+-----------+
| | | | |
+------------------------------------------------+----+-----------+-----------+
| (Loss)/profit on ordinary activities before | | (972) | 589 |
| tax | | | |
+------------------------------------------------+----+-----------+-----------+
| | | | |
+------------------------------------------------+----+-----------+-----------+
| Profit on ordinary activities multiplied by | | | |
| standard rate of | | | |
+------------------------------------------------+----+-----------+-----------+
| Corporation tax in the UK (28.5%) (2007: 30%) | | (277) | 177 |
+------------------------------------------------+----+-----------+-----------+
| Expenses not deductible for tax purposes | | 295 | 2 |
+------------------------------------------------+----+-----------+-----------+
| Losses carried back to earlier periods | | (18) | - |
+------------------------------------------------+----+-----------+-----------+
| Marginal relief | | - | (27) |
+------------------------------------------------+----+-----------+-----------+
| Deferred tax impact of reduction in Company's | | 60 | - |
| share price | | | |
+------------------------------------------------+----+-----------+-----------+
| Other | | (6) | (17) |
+------------------------------------------------+----+-----------+-----------+
| (Over)/under provision in respect of prior | | (2) | (102) |
| periods | | | |
+------------------------------------------------+----+-----------+-----------+
| | | ____ | ____ |
+------------------------------------------------+----+-----------+-----------+
| | | 52 | 33 |
+------------------------------------------------+----+-----------+-----------+
| | | ____ | ____ |
+------------------------------------------------+----+-----------+-----------+
7. Earnings per share
Basic earnings per share
Basic earnings per share are calculated on the basis of profit for the financial
year after tax divided by the weighted average number of shares in issue for the
year.
Diluted earnings per share are calculated on the basis of profit for the year
after tax divided by the weighted average number of shares in issue in the year
plus the weighted average number of shares which would be issued if all the
options granted were exercised.
All options were anti-dilutive at 31 December 2008.
+---------------------------+----------+------------+--------+----------+------------+--------+
| | | 2008 | | | 2007 | |
+---------------------------+----------+------------+--------+----------+------------+--------+
| | | Weighted | | | Weighted | |
+---------------------------+----------+------------+--------+----------+------------+--------+
| | | average | | | average | |
+---------------------------+----------+------------+--------+----------+------------+--------+
| | Earnings | number | Per | Earnings | number | Per |
| | | | share | | | share |
+---------------------------+----------+------------+--------+----------+------------+--------+
| | GBP'000 | of | pence | GBP'000 | of | pence |
| | | shares | | | shares | |
+---------------------------+----------+------------+--------+----------+------------+--------+
| | | | | | | |
+---------------------------+----------+------------+--------+----------+------------+--------+
| | | | | | | |
+---------------------------+----------+------------+--------+----------+------------+--------+
| Basic earnings | (1,024) | 11,499,294 | (8.9) | 556 | 11,493,382 | 4.8 |
| attributable to | | | | | | |
| ordinary shareholders | | | | | | |
+---------------------------+----------+------------+--------+----------+------------+--------+
| | | | | | | |
+---------------------------+----------+------------+--------+----------+------------+--------+
| Dilutive effect of share | - | - | - | - | 130,655 | - |
| options | | | | | | |
+---------------------------+----------+------------+--------+----------+------------+--------+
| | | | | | | |
+---------------------------+----------+------------+--------+----------+------------+--------+
| | ____ | _________ | ____ | ____ | _________ | ____ |
+---------------------------+----------+------------+--------+----------+------------+--------+
| Diluted earnings per | (1,024) | 11,499,294 | (8.9) | 556 | 11,624,037 | 4.8 |
| share | | | | | | |
+---------------------------+----------+------------+--------+----------+------------+--------+
| | ____ | _________ | ____ | ____ | _________ | ____ |
+---------------------------+----------+------------+--------+----------+------------+--------+
Adjusted earnings per share
Adjusted earnings per share is calculated on the basis of adjusted profit for
the year after tax (see below), defined as profits attributable to the equity
holders of the Company excluding non-recurring costs and share scheme charges
and the deferred tax movements associated with these charges, divided by the
weighted average number of shares in issue in the year. The comparative is
calculated by reference to the weighted average number of shares in issue in
2007.
+------------------------+----------+------------+--------+----------+------------+--------+
| | | 2008 | | | 2007 | |
+------------------------+----------+------------+--------+----------+------------+--------+
| | | Weighted | | | Weighted | |
+------------------------+----------+------------+--------+----------+------------+--------+
| | | average | | | average | |
+------------------------+----------+------------+--------+----------+------------+--------+
| | Earnings | number | Per | Earnings | number | Per |
| | | | share | | | share |
+------------------------+----------+------------+--------+----------+------------+--------+
| | GBP'000 | of | pence | GBP'000 | of | pence |
| | | shares | | | shares | |
+------------------------+----------+------------+--------+----------+------------+--------+
| | | | | | | |
+------------------------+----------+------------+--------+----------+------------+--------+
| | | | | | | |
+------------------------+----------+------------+--------+----------+------------+--------+
| Adjusted earnings | 533 | 11,499,294 | 4.6 | 1,082 | 11,493,382 | 9.4 |
| attributable | | | | | | |
| to ordinary | | | | | | |
| shareholders | | | | | | |
+------------------------+----------+------------+--------+----------+------------+--------+
| | | | | | | |
+------------------------+----------+------------+--------+----------+------------+--------+
| Dilutive effect of | - | - | - | - | 130,655 | (0.1) |
| share | | | | | | |
| options | | | | | | |
+------------------------+----------+------------+--------+----------+------------+--------+
| | ____ | _________ | ____ | ____ | _________ | ____ |
+------------------------+----------+------------+--------+----------+------------+--------+
| | | | | | | |
+------------------------+----------+------------+--------+----------+------------+--------+
| Diluted earnings per | 533 | 11,499,294 | 4.6 | 1,082 | 11,624,037 | 9.3 |
| share | | | | | | |
+------------------------+----------+------------+--------+----------+------------+--------+
| | ____ | _________ | ____ | ____ | _________ | ____ |
+------------------------+----------+------------+--------+----------+------------+--------+
+------------------------------------------+---------+----------+
| | 2008 | 2007 |
+------------------------------------------+---------+----------+
| | GBP'000 | GBP'000 |
+------------------------------------------+---------+----------+
| | | |
+------------------------------------------+---------+----------+
| (Loss)/profit for the year attributable | (1,024) | 556 |
| to the equity | | |
+------------------------------------------+---------+----------+
| holders of the Company | | |
+------------------------------------------+---------+----------+
| | | |
+------------------------------------------+---------+----------+
| Non-recurring costs | 1,422 | 476 |
+------------------------------------------+---------+----------+
| Share scheme charges | 75 | 75 |
+------------------------------------------+---------+----------+
| Deferred tax movement | 60 | (25) |
+------------------------------------------+---------+----------+
| | _____ | _____ |
+------------------------------------------+---------+----------+
| Adjusted earnings attributable to | | |
+------------------------------------------+---------+----------+
| ordinary shareholders | 533 | 1,082 |
+------------------------------------------+---------+----------+
| | _____ | _____ |
+------------------------------------------+---------+----------+
8. Post balance sheet event
On 26 March 2009, the Board proposed a dividend of 2.0p per share. Subject to
shareholder consent at the Annual General Meeting, this dividend will be paid on
5 June 2009 to shareholders on the register on 8 May 2009. This gives a total
dividend for the year of 3.0p (2007: 3.25p).
9. Publication of non statutory accounts
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985.
The summarised consolidated balance sheet at 31 December 2008, summarised
consolidated income statement, summarised consolidated cash flow statement,
summarised consolidated statement of changes in equity and associated notes for
the year then ended, have been extracted from the Group's financial statements
upon which the auditors opinion is unqualified and does not include any
statement under section 237 of the Companies Act 1985. Those financial
statements have not yet been delivered to the Registrar.
10. Annual General Meeting
The Annual General Meeting of the Company will be held in Leeds on Monday 1 June
2009. Full details will be included in the published Annual Report and
Financial Statements, which will be sent to shareholders in due course.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UVVBRKOROUAR
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