Interim Results
07 January 2004 - 6:00PM
UK Regulatory
RNS Number:9285T
AIM Group PLC
07 January 2004
AIM Group PLC
Interim Results
7th January 2004
AIM Group PLC, the aircraft interiors manufacturer, announces interim results
for the six months ended 31st October 2003.
Chairman's Statement
Results In the six months to 31st October 2003 the Group incurred an
and operating loss of #169,000 (2002 #237,000 profit) on sales of #25.4m
dividend (2002 #21.9m). After exceptional items of #145,000 (2002 nil) and
interest charges of #134,000 (2002 #22,000) the loss before tax for
the period amounted to #448,000 (2002 #215,000 profit). As already
announced at the time of the preliminary results last year, there
will not be any interim dividend.
Review The operating loss arose as a result of unexpected losses on certain
aircraft galley contracts and an erosion of margin in a declining
market, compounded by the weakness of the US dollar on which much of
our revenue is based. The exceptional loss related to redundancy
costs as the Group continued to reduce production capacity to match
demand.
Whilst the Group has had some success at diversification away from
civil aircraft, particularly within the railway industry, our core
business is suffering from the massive decline in capital expenditure
by the airlines. Recent announcements of further airline losses, the
deferral of orders for new aircraft and the discontinuance of
production of the Boeing 757 aircraft are all indicative of current
market conditions.
Outlook Deliveries are scheduled to be lower in the second half of the
financial year and although capacity has been reduced, further
redundancies are possible. The continued weakness of the US dollar
has adversely impacted our competitiveness in a market which has
deteriorated further since my last report. Against this background
it is difficult to see any immediate improvement in the Group's
financial performance.
J.C. Smith
Chairman
7th January 2004
16 Carlton Crescent
Southampton
S015 2ES
Group Profit and Loss Account
6 months ended 6 months ended Year ended
31st October 31st October 30th April
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Turnover 25,364 21,905 56,221
=====================================================
Operating
(loss)/profit (169) 237 1,054
Exceptional items
(note2) (145) - (344)
------------------------------------------------------
(Loss)/profit on
ordinary activities
before interest (314) 237 710
Net interest payable (134) (22) (113)
------------------------------------------------------
(Loss)/profit on
ordinary activities
before taxation (448) 215 597
Tax on (loss)/profit
on ordinary
activities 127 (73) (289)
------------------------------------------------------
(Loss)/profit for
the period (321) 142 308
Dividend - (246) (224)
------------------------------------------------------
Retained
(loss)/profit for
the period (321) (104) 84
------------------------------------------------------
Dividend per share - 1.8p 1.8p
------------------------------------------------------
Basic
(loss)/earnings per
share (Note 3) (2.6)p 1.0p 2.2p
------------------------------------------------------
Diluted
(loss)/earnings per
share (Note 3) (2.6)p 1.0p 2.2p
------------------------------------------------------
Group Balance Sheet
31st October 31st October 30th April
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Fixed assets
Intangible assets 539 975 599
Tangible assets 6,648 6,628 6,949
----------------------------------------
7,187 7,603 7,548
Current assets
Stocks and work in
progress 10,906 16,152 11,714
Debtors
- due within one year 9,493 10,536 11,180
- due after more than one year 604 - 604
Cash at bank and in hand 2,071 1,549 1,642
----------------------------------------
23,074 28,237 25,140
----------------------------------------
Creditors
Amounts falling due within one year:
Bank overdrafts (2,290) - (1,242)
Other creditors (7,573) (12,747) (10,080)
----------------------------------------
(9,863) (12,747) (11,322)
----------------------------------------
Net current assets 13,211 15,490 13,818
----------------------------------------
Total assets less
current liabilities 20,398 23,093 21,366
Creditors
Amounts falling due after
more than one year - (16) -
----------------------------------------
Net assets 20,398 23,077 21,366
========================================
Capital and reserves
Called up share capital 1,206 1,478 1,225
Reserves 19,192 21,599 20,141
----------------------------------------
Equity shareholders' funds 20,398 23,077 21,366
========================================
Reconciliation of operating profit to net cash
Inflow/(outflow) from operating activities
6 months ended 6 months ended Year ended
31st October 31st October 30th April
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Operating
(loss)/profit on
continuing
activities (314) 237 710
Depreciation and
amortisation of
goodwill 486 517 1,324
Loss on sale of
tangible fixed
assets 3 13 45
Decrease/(increase)
in stocks 808 (3,405) 1,033
Decrease/(increase)
in debtors 1,692 430 (1,298)
(Decrease)/increase
in creditors (2,507) 1,685 (174)
Exchange rate
movements (29) (401) (113)
---------------------------------------------------
Net cash
inflow/(outflow)
from operating
activities 139 (924) 1,527
===================================================
Group Cash Flow Statement
6 months ended 6 months ended Year ended
31st October 31st October 30th April
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Cash inflow/(outflow) from
operating activities 139 (924) 1,527
Taxation 97 (57) 58
Purchase of tangible fixed assets (187) (330) (576)
Disposal of tangible fixed assets 9 34 78
Equity dividends paid - - (741)
Capital element of finance lease payments (23) (19) (40)
Purchase of own shares for cancellation (161) - (2,259)
Net interest paid (111) (39) (113)
---------------------------------------
Decrease in cash (237) (1,335) (2,066)
=======================================
Reconciliation of net cash flow to movement in net debt
6 months ended 6 months ended Year ended
31st October 31st October 30th April
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Decrease in cash in period (237) (1,335) (2,066)
Debt repayments 23 23 40
Exchange rate movements (382) 73 (346)
-----------------------------------------
Decrease in net funds in period (596) (1,239) (2,372)
Net cash at beginning of period 377 2,749 2,749
-----------------------------------------
Net (debt)/cash at end of period (219) 1,510 377
=========================================
Statement of total recognised gains and losses
6 months ended 6 months ended Year ended
31st October 31st October 30th April
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
(Loss)/profit for
the period (321) 142 308
Revaluation reserve
surplus - - 604
Net exchange
movements on foreign
currency net investments (486) (432) (676)
-------------------------------------------------
Total losses and
gains for the period (807) (290) 236
=================================================
Reconciliation of movements in shareholders' funds
6 months ended 6 months ended Year ended
31st October 31st October 30th April
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
(Loss)/profit for the period (321) 142 308
Dividends - (246) (224)
---------------------------------------
(321) (104) 84
Other recognised gains and
losses relating to
the period (486) (432) (72)
Purchase of shares
for cancellation (161) - (2,259)
---------------------------------------
Net reduction in
shareholders' funds (968) (536) (2,247)
Opening shareholders' funds 21,366 23,613 23,613
---------------------------------------
Closing shareholders' funds 20,398 23,077 21,366
=======================================
Notes:
(1) The unaudited results for the six months ended 31st October 2003 have been
prepared in accordance with UK Generally Accepted Accounting Principles.
The accounting policies applied are those set out in the Group's 2003
Annual Report and Accounts.
(2) Exceptional items in the six months to 31st October 2003 relate to
redundancy costs.
Exceptional items in the year to 30th April 2003 related to an impairment
charge following a re-assessment of the remaining value of purchased
goodwill acquired in 1998.
(3) Earnings per share are calculated under the provisions of FRS14 and are
based on a weighted average of 12,173,548 (2002 - 14,779,150) shares in
issue during the period.
Diluted earnings per share are the same as basic earnings per share in the
current and the comparative periods because there is no dilution caused by
share options outstanding at the end of the period. This is due to the
exercise price of these options exceeding the average share price in the
period.
(4) The figures for the year ended 30th April 2003 do not constitute the
Company's full statutory accounts which received an unqualified auditors'
report and which have been filed with the Registrar of Companies.
(5) Copies of this statement are being sent to shareholders and will be
available from the Company's registered office at 16 Carlton Crescent,
Southampton S015 2ES.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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