RNS Number:2798T
Slimma PLC
16 December 2003
Issued by Citigate Dewe Rogerson Limited, Birmingham
Date: Tuesday, 16 December 2003
Embargoed: 7.00am
Slimma plc
Preliminary Results
for the year ended 3 October 2003
Financial Year Financial Year Financial Year
2002/3 2002/3 2001/2
(Before exceptional
costs)
Turnover #28.52m #28.52m #31.30m
Operating Profit #1.06m #0.50m #1.62m
Pre-tax Profit #0.95m #0.39m #1.50m
EPOS 6.37p 2.59p 9.84p
Interim Dividend (per share) 1.00p 1.50p
Final Dividend 2.00p 2.50p
Total Dividend for Year (per share) 3.00p 4.00p
Re-organisation of UK manufacturing operation now complete
Branded businesses now comprise 67% of total sales
"Reorganisation is almost complete in the Frank Usher and Slimma Fashion
divisions and our latest acquisition, Peter Martin, has made an excellent start,
including a successful launch in Italy for the Spring/Summer 2004 season. Our
Slimma branded Mail Order Division has also received a positive reaction to its
Spring/Summer 2004 range from its key customers."
Alan D Webb, Chairman
FULL STATEMENT ATTACHED
Enquiries:
Alan Webb, Chairman
Stephen Thwaite, Chief Executive Katie Dale, Account Manager
Slimma plc Citigate Dewe Rogerson
Today: 0207 629 9696 Today: 0207 629 9696
Thereafter: 01538 399141 Mobile: 07980 274 790
www.slimma.com Thereafter: 0121 455 8370
----------------
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Slimma plc
Preliminary Results
for the year ended 3 October 2003
STATEMENT BY THE CHAIRMAN, ALAN D WEBB
As reported in my half-year statement, the ongoing pressure on prices and
margins from our high street customers, combined with rising UK employment
costs, has resulted in the closure of the majority of our remaining UK
manufacturing unit. This action, which will help to support margins, has
increased our offshore manufactured sales to 98%. In addition to this, we have
moved a number of our technical support areas from the UK to our offshore
suppliers, particularly in our Slimma owned brands businesses. Unfortunately,
this has resulted in further redundancies but it will generate fairly
substantial reductions in future operating costs. As a consequence of these
necessary actions, exceptional costs of #563k were incurred in the year.
Our branded businesses now comprise 67% of total sales. Reorganisation is almost
complete in the Frank Usher and Slimma Fashion divisions and our latest
acquisition, Peter Martin, has made an excellent start, including a successful
launch in Italy for the Spring/Summer 2004 season. Our Slimma branded Mail Order
Division has also received a positive reaction to its Spring/Summer 2004 range
from its key customers.
As previously stated, our high street business suffered a setback with a
significant reduction in sales to one of our key customers, owing to strong
competition from the customer's peer group, and sizeable one-off additional
discounts we had to pay to a number of customers. I am pleased to say, however,
that during the year we have secured two important new customers to Slimma
though we do not expect to fully recover the lost sales until 2005.
Strong financial controls contributed to year-end net-debt being significantly
down on last year at #1.30m (2002: #2.62m).
The Board is recommending a final dividend payment of 2.00 pence per share
(2002: 2.50 pence). This, together with an Interim dividend of 1.00 pence (2002:
1.50 pence) per share, makes a total of 3.00 pence per share for the year.
It is too early to say whether the current interest rate rise and those expected
in the new financial year will dampen consumer spend and adversely affect sales,
though you can be assured that confidence in our strategy continues unabated by
the recent and forecast economic conditions.
-3-
Slimma plc
PROFIT AND LOSS ACCOUNT
53 week period ended 3 October 2003
Note Before Exceptional 53 weeks 52 weeks
Exceptional Items ended ended
Items (Note 3) 3 October 27 September
2003 2002
#'000 #'000 #'000 #'000
TURNOVER - continuing
operations 27,480 - 27,480 31,309
- acquisitions 2 1,044 - 1,044 -
--------- --------- -------- ----------
28,524 - 28,524 31,309
Cost of sales (16,766) (228) (16,994) (18,786)
--------- --------- -------- ----------
Gross profit 11,758 (228) 11,530 12,523
--------- --------- -------- ----------
Selling and
distribution (8,679) (251) (8,930) (8,657)
costs
Administrative expenses (2,053) (84) (2,137) (2,247)
Other operating income 38 - 38 1
--------- --------- -------- ----------
OPERATING PROFIT -
continuing operations 1,064 (563) 501 1,620
Other interest
receivable - - 1
and similar income
Interest payable and
similar charges (112) - (112) (118)
--------- --------- -------- ----------
PROFIT ON ORDINARY
ACTIVITIES 952 (563) 389 1,503
BEFORE TAXATION
---------
Tax on profit on
ordinary activities (119) (482)
-------- ----------
PROFIT ON ORDINARY
ACTIVITIES AFTER 270 1,021
TAXATION FOR THE
FINANCIAL PERIOD
Dividends - equity 4 (313) (419)
shares ======== ==========
RETAINED (LOSS)/PROFIT
TRANSFERRED (43) 602
(FROM)/TO RESERVES
======== ==========
Earnings per ordinary
share of 5p each 5 2.59p 9.84p
======== ==========
Diluted earnings per
ordinary shares of 5p 5 2.59p 9.82p
each
======== ==========
Adjusted basic earnings
per ordinary share 5 6.37p 9.84p
of 5p each
======== ==========
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
There are no recognised gains and losses for the current period or preceding
period other than as reported above.
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Slimma plc
RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
53 week period ended 3 October 2003
53 weeks 52 weeks
ended ended
3 October 2003 27 September 2002
#'000 #'000
Profit for the financial period 270 1,021
Dividends (313) (419)
Issue of shares - share options - 49
---------- ------------
Net (reduction in) /addition to
shareholders' funds (43) 651
Opening shareholders' funds 5,148 4,497
---------- ------------
Closing shareholders' funds 5,105 5,148
========== ============
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Slimma plc
BALANCE SHEET
3 October 2003
3 October 2003 27 September 2002
#'000 #'000
FIXED ASSETS
Intangible assets 172 -
Tangible assets 966 1,109
---------- ------------
1,138 1,109
---------- ------------
CURRENT ASSETS
Stocks 2,822 3,652
Debtors 5,479 7,647
Cash at bank and in hand 283 8
---------- ------------
8,584 11,307
CREDITORS: amounts falling due within one
year (4,610) (7,251)
---------- ------------
NET CURRENT ASSETS 3,974 4,056
---------- ------------
TOTAL ASSETS LESS CURRENT LIABILITIES 5,112 5,165
PROVISIONS FOR LIABILITIES AND CHARGES (7) (17)
---------- ------------
NET ASSETS 5,105 5,148
========== ============
CAPITAL AND RESERVES
Called up share capital 521 521
Share premium 3,024 3,024
Capital reserve 62 62
Capital redemption reserve 285 285
Profit and loss account 1,213 1,256
---------- ------------
TOTAL EQUITY SHAREHOLDERS' FUNDS 5,105 5,148
========== ============
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Slimma plc
CASH FLOW STATEMENT
53 week period ended 3 October 2003
Note to 53 weeks 52 weeks
cash ended ended
flow 3 October 27 September
statement 2003 2002
#'000 #'000
Net cash inflow/(outflow) from operating
activities 1 2,750 (289)
-------- ----------
Returns on investments and servicing of
finance
Interest received - 1
Interest paid (112) (118)
-------- ----------
Net cash outflow from returns on investments
and servicing of finance (112) (117)
-------- ----------
Taxation
Corporation tax paid (490) (492)
-------- ----------
Capital expenditure and financial
investment
Payments to acquire tangible fixed assets (245) (230)
Receipts from the sale of tangible fixed
assets 118 2
-------- ----------
(127) (228)
-------- ----------
Acquisitions
Payments in respect of business acquired (338) -
-------- ----------
Equity dividends paid (365) (416)
-------- ----------
Net cash inflow/(outflow) before use of
liquid resources and financing 1,318 (1,542)
-------- ----------
Financing
Share options - 49
-------- ----------
Net cash outflow from financing - 49
-------- ----------
Increase/(decrease) in cash in the period 3 1,318 (1,493)
======== ==========
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Slimma plc
NOTES TO CASH FLOW STATEMENT
53 week period ended 3 October 2003
1. RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW/(OUTFLOW) FROM
OPERATING ACTIVITIES
53 weeks 52 weeks
ended ended
3 October 2003 27 September 2002
#'000 #'000
Operating profit 501 1,620
Depreciation 308 286
Amortisation of goodwill 30 -
Profit on sale of fixed assets (38) (1)
Decrease/(increase) in stocks 966 (748)
Decrease/(increase) in debtors 2,168 (1,219)
Decrease in creditors (1,185) (227)
---------- ------------
2,750 (289)
========== ============
2. ANALYSIS OF NET DEBT
At At
27 September 2002 Cash flow 3 October 2003
#'000 #'000 #'000
Cash in hand 8 275 283
Cash at bank/(overdraft) (2,630) 1,043 (1,587)
------------ ---------- ------------
(2,622) 1,318 (1,304)
============ ========== ============
3. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
53 weeks ended 52 weeks ended
3 October 2003 27 September 2002
#'000 #'000
Increase/(decrease) in cash in the period 1,318 (1,493)
Opening net debt (2,622) (1,129)
----------- ------------
Closing net debt (1,304) (2,622)
=========== ============
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Slimma plc
Notes:
1 Preparation of the Financial Statements
The results for the period ended 27 September 2002 and period ended 3 October
2003 are an abridged version of the Company's full accounts for those periods
which carry unqualified auditor's reports and do not contain any statements
under Section 237 (2) or (3) of the Companies Act 1985. The full accounts for
the period ended 27 September 2002 have been filed with the Registrar of
Companies. The full accounts for the period ended 3 October 2003 will be
delivered to the Registrar of Companies following the Company's Annual General
Meeting.
2 Acquisition of Business
On 16 December 2002 the Company acquired the business and certain assets of
'Peter Martin brand' from Le Roi Limited for a cash consideration of #338,000,
including costs of #18,000.
The acquisition has been integrated into an existing Slimma business and,
although customers and turnover can be identified separately, some costs are
shared and therefore, a split of operating expenses and operating profit is not
practicable.
The assessment of the fair value of the net assets acquired are as follows:
Book Fair value Fair
Value Adjustment Value
#'000 #'000 #'000
Net assets acquired
Stocks 209 (73) 136
Goodwill 202
------
Total consideration (satisfied by cash) 338
======
The fair value adjustment to stocks reflects the estimated net realisable value
of the stocks acquired.
3. Exceptional Re-organisation Costs
The exceptional item within cost of sales of #228,000, within selling and
distribution costs of #251,000 and within administrative expenses of #84,000
relates to redundancy and other reorganisation costs resulting from the closure
of the significant part of our remaining UK manufacturing unit, and redundancies
following the restructuring of divisional businesses to meet the challenges
presented by the competitive market place.
4. Dividends
If approved, the final dividend of 2.00 pence per share will be paid on 18
February 2004 to shareholders registered on 16 January 2004.
continued...
-9-
5. Earnings per share
The calculation of earnings per Ordinary share is based on a profit of #270,000
(2002: profit #1,021,000) and on an average of 10,424,935 (2002: 10,380,481)
Ordinary shares in issue during the year. There was no dilutive impact on
earnings per share.
Adjusted earnings per share have been disclosed, excluding the exceptional
items, in order to provide a more meaningful comparison with prior years.
Profit for the financial year
2003 2002
#'000 #'000
Adjustment has been made as follows:
Earnings 270 1,021
Add back: exceptional items 563 -
Tax effect (169) -
---------- ---------
Adjusted earnings 664 1,021
6. Approval of the Financial Statements
These Financial Statements were approved by the Board of Directors on 15
December 2003.
7. Annual General Meeting
The Annual General Meeting will be held at the The Swan Hotel, 2 St Edward
Street, Leek, Staffordshire, ST13 5DS, at 10.00am on Friday 30 January 2004.
8. Availability of the Financial Statements
These Financial Statements will be circulated to all shareholders and will be
available from the Company's Registered Office at:
Slimma plc, PO Box 30, Barngate Street, Leek, Staffordshire, ST13 8AR.
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END
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