RNS Number:2380L
Get Group PLC
19 May 2003
Embargoed Release: 07:00hrs 19th May 2003
GET GROUP PLC
Interim results for the six months to 28th February 2003
Highlights
* Turnover #38.1m (2002: #32.6m) +16.8%
* EBITDA #3.0m (2002: #2.6m) +13.6%
* Pre-tax profit #2.3m (2002: #2.0m) +15.2%
* Earnings per share (basic) 9.72p (2002: 8.60p) +13.0%
* Net dividend per share 2.6p (2002: 2.3p) +13.0%
* Gearing 61.4% (2002: 50.1%) +11.3%
John Joseph, Chairman of GET Group PLC commented:
"Our operations have performed strongly in the first half of the financial year
with growth in turnover, profit and earnings. While economic conditions have
been difficult, this performance underlies our strengths throughout the Group
with experienced in-depth teams and some very good long term trading
relationships with our customers and suppliers. With the further introduction of
new product ranges during the current financial year and the potential to expand
our presence in new markets, the Board is confident that the Company can
continue to generate further growth and enhance shareholder value"
For more information please contact:
GET Group PLC Today: 07770 388 388
John Joseph, Chairman Thereafter: 020 8368 8833
Hansard Communications 020 7245-1100
Adam Reynolds 07785 908158
Shore Capital 020 7408 4090
Alex Borelli
Chairman's Statement
I am delighted to report a very encouraging and robust performance for the first
six months of the current financial year. Turnover has increased 17% to #38.1m
(2002: #32.6m) and pre-tax profits increased by 15% to #2.3m (2002: #2m). This
has resulted in a 13% increase in basic earnings per share to 9.72 pence (2002:
8.6 pence).
The Board's confidence in the Group's performance is reflected in its decision
to increase the interim dividend by 13 per cent to 2.6 pence per share net
(2002: 2.3 pence per share net). The interim dividend will be paid on 1st July
2003 to all shareholders on the register as at 6th June 2003.
The Group's net borrowings as at 28th February were #12.3m (2002:#9.1m). Gearing
stood at 61.4% (2002:50.1%) and interest cover at a healthy 7.1 times (2002: 7.2
times). The additional working capital supports our increased activity levels.
Stocks now stand at #20.1m (2002:#14.1m) due, in part, to additional stocking
planned in anticipation of the potential repercussions of an extended Iraqi War
and stock held for new product introductions.
Review
The performance of the Group under review has been strong, despite the
restraints of the overall economy. I believe that we have the flexibility,
sourcing ability and commitment to grow sales and profitability.
Our strategy continues to expand our existing ranges and the raft of new
products has only served to confirm the Group's status as one of the electrical
accessory industry's market leaders. Over the past years our London based design
team has developed and will continue to develop new and innovative ranges of
products.
The Ultimate range of ultra slim flatplate switches and sockets was launched in
May 2002 at the NEC offering the professional electrician, architect and
specifier a host of unique ease-of-installation benefits and providing the
choice of style, colour and finish options that contemporary interior design
demands. Since launch, Ultimate has performed to expectations and we have
recently introduced two further metal finishes.
In January 2003, we launched our garden lighting range transforming GET's Luneta
range into a portfolio of indoor and outdoor lighting solutions. To date, demand
has been strong and we are planning further exhibitions to expand our growing
customer base. We expect that the contribution from this product range will be
evident in the second half of this financial year.
We are very excited about the Grid range of metal finished switches and sockets
to match the Ultimate metal range which is now developed and due for launch.
This range will enable GET to make real headway into the specification market,
supplying new build domestic and larger industrial projects with many of our
ranges. There are a number of other new products that are currently at the
design and evaluation stage and we expect to launch a number of these during
2004.
During the period under review we have increased our pallet positions from
30,000 to 33,000 at our National Distribution Centre in West Bromwich in order
to satisfy our projected future growth.
Overseas markets
We have devoted resources into expanding our export activities and we see this
as a very exciting opportunity over the coming years. Although it will take time
for us to build up our overseas market presence, I do believe that over time
this presents significant long term growth opportunities for the Group.
Outlook
Our operations have performed strongly in the first half of the financial year
with growth in turnover, profit and earnings. While economic conditions have
been difficult, this performance underlies our strengths throughout the Group
with experienced in-depth teams and some very good long term trading
relationships with our customers and suppliers. With the further introduction of
new product ranges during the current financial year and the potential to expand
our presence in new markets, the Board is confident that the Company can
continue to generate further growth and enhance shareholder value.
On behalf of the Board, I particularly wish to thank all employees for their
commitment and flexibility over the first half of the year. I would also like to
convey my very special thanks to the Board members for their continued
commitment and hard work. It is their persistence and achievement in delivering
quality and service to customers that reinforces the Group's foundations for
success in the future.
John Joseph
Chairman
Unaudited Consolidated Profit and Loss Account
Six months to Six months to Year to
28th February 29th February 31st August
2003 2002 2002
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Turnover 38,075 32,599 65,292
Cost of sales (29,025) (25,179) (49,942)
--------- --------- --------
Gross profit 9,050 7,420 15,350
Other operating expenses (6,386) (5,233) (10,914)
Other operating income - - 268
--------- --------- ---------
Operating profit 2,664 2,187 4,704
Profit on disposal of - - 586
operations
Provision for reorganisation - - (574)
costs
--------- --------- ---------
Profit on ordinary activities 2,664 2,187 4,716
before interest
Interest receivable and other 22 138 34
income
Interest payable (381) (325) (685)
---------- ---------- --------
Profit on ordinary activities 2,305 2,000 4,065
before taxation
Tax on profit on ordinary (737) (605) (1,222)
activities
---------- ---------- --------
Profit on ordinary activities 1,568 1,395 2,843
after taxation
Dividend (429) (379) (1,138)
---------- ---------- ---------
Retained profit 1,139 1,016 1,705
========== ========== =========
Earnings per share - Basic 9.72p 8.60p 17.52p
Earnings per share - Diluted 9.39p 8.25p 17.03p
Net dividend per share 2.6p 2.3p 6.90p
Unaudited Consolidated Balance Sheet
As at As at As at
28th February 29th February 31st August
2003 2002 2002
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Fixed assets
Tangible assets 7,158 8,309 7,126
Intangible assets 169 198 184
Investments 431 295 308
--------- --------- ---------
7,758 8,802 7,618
--------- --------- ---------
Current assets
Stock 20,085 14,087 15,841
Debtors 14,031 12,889 9,980
Cash at bank and in hand 8 3 132
--------- --------- ---------
34,124 26,979 25,953
Creditors:
Amounts falling due within one (19,291) (14,326) (11,476)
year
--------- --------- ---------
Net current assets 14,833 12,653 14,477
--------- --------- ---------
Total assets less current 22,591 21,455 22,095
liabilities
Creditors:
Amounts falling due after more (2,434) (3,101) (2,775)
than one year
Provisions for liabilities and (175) (200) (477)
charges
--------- --------- --------
Net assets 19,982 18,154 18,843
========= ========= ========
Capital and reserves
Called-up share capital 825 825 825
Share premium account 5,267 5,267 5,267
Other reserves 1,142 1,142 1,142
Profit and loss account 12,748 10,920 11,609
--------- --------- --------
Shareholders' funds 19,982 18,154 18,843
========= ========= ========
Unaudited Cashflow Statement
Six months to Six months to Year to
28th February 29th February
2003 2002 31st August
2002
(Unaudited) (Unaudited)
(Audited)
#'000 #'000 #'000
Net cash (outflow)/inflow
from operating activities (2,881) (667) 1,222
-------- -------- ---------
Returns on investments and
servicing of finance
Interest and other income 22 138 34
received
Interest paid (377) (303) (667)
Interest element of finance (4) (6) (11)
lease rental payments
Net cash outflow from returns --------- --------- ---------
on investments
and servicing of finance (359) (171) (644)
--------- --------- ---------
Taxation
Corporation tax paid (512) (252) (1,049)
--------- --------- ---------
Capital expenditure and
financial investment
Payments to acquire (123) (3) (67)
investments
Payments to acquire tangible (361) (667) (982)
fixed assets
Receipts from sales of tangible 7 18 71
fixed assets
Proceeds from sale if - - 51
investments
Net cash outflow from capital --------- --------- ---------
expenditure
and financial investments (477) (652) (927)
--------- --------- ---------
Proceeds from sale of - - 1,857
division
--------- --------- ---------
Equity dividends paid (759) (660) (1,039)
--------- --------- ---------
Net cash outflow before (4,988) (2,402) (580)
financing
--------- --------- ---------
Financing
Increase in amounts borrowed 105 1,009 -
Repayment of loans (320) (320) (658)
Capital element of finance (21) (33) (30)
lease rental payments
--------- --------- --------
Net cash(outflow)/inflow from (236) 656 (688)
financing
--------- --------- --------
Decrease in cash and cash (5,224) (1,746) (1,268)
equivalents
========= ========= ========
Unaudited reconciliation of operating profit
to net cash flow from operating activities
Six months to Six months to Year to
28th February 29th February 31st August
2003 2002 2002
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Operating profit 2,664 2,187 4,704
Depreciation 323 430 880
Amortisation 15 18 32
(Profit)/loss on sales of fixed (1) 4 (2)
assets
Cashflow relating to prior years
restructuring
(250) - -
(Increase)/decrease in stock (4,244) (934) (3,154)
Increase in debtors (4,051) (3,188) (283)
Increase/(decrease) in 2,663 816 (955)
creditors
-------- -------- --------
Net cash (outflow)/inflow
from operating activities (2,881) (667) 1,222
-------- -------- --------
Unaudited reconciliation of net
cash flow to movement in net
debt
Decrease in cash in the period (5,224) (1,746) (1,268)
Cash used to decrease/(increase)
debt and lease financing
236 (656) 688
-------- -------- --------
Changes in net debt from cash (4,988) (2,402) (580)
flows
Net debt at 1st September 2002 (7,275) (6,695) (6,695)
-------- -------- --------
Net debt at 28th February 2003 (12,263) (9,097) (7,275)
-------- -------- --------
Notes to the accounts
1. The interim financial report, which does not constitute statutory
financial statements within the meaning of Section 240 of Companies Act 1985,
have been prepared on the basis of the accounting policies set out in the
statutory accounts of the Group for the year ended 31st August 2002. The interim
financial report, which has been approved by the directors, is unaudited but has
been reviewed by the Company's auditors in accordance with the Auditing
Practices Board bulletin "Review of Interim Financial Information".
2. The Board is declaring an interim dividend of 2.6p per share payable on
1st July 2003 to shareholders on the register on 6th June 2003.
3. Earnings per share-basic is based on the weighted average of 16.13 million
shares in issue (2002: 16.23 million). Earnings per share-diluted is based on
the weighted average of 16.70 million shares in issue (2002: 16.92 million).
4. Copies of the interim statement are being sent to shareholders and will be
available from the Company's registered office at Unit 4, Brunswick Industrial
Park, Brunswick Park Road, New Southgate, London N11 1JL.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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