RNS Number:2148S
Walker (Thomas) PLC
05 October 2005
Thomas Walker PLC (the "Company" or the "Group")
Preliminary statement of results for the year ended 30 June 2005
Chairman's Review
The profits for the year, before interest and tax, were #103,032 compared with
the corresponding 2004 results of #1,682,845. A more indicative comparison is at
the operating level where the #103,032 should be seen against the underlying
2004 profit of #128,021.
The 2004 earnings figures were inflated by the exceptional profit on the
disposal of land and buildings at St Paul's Square, Birmingham.
The 2005 figures, on the other hand, have been detrimentally influenced by flat
demand in textiles and more specifically by an absence of the traditional build
up of orders between January and April for the Autumn and Winter seasons. The
final trading result was further reduced by the absorption of a number of
non-recurring costs during the second half of the year.
Post tax profits have been further reduced to #5,530 by a non-recurring tax
charge of #44,589 relating to the gain arising from the sale of the St Paul's
Square site in 2002. The Company was not able to utilise, within the available
timeframe, sufficient sale proceeds to ensure a full deferral of the tax arising
on the gain.
Within the overall figures, an excellent contribution from Guests has gone a
long way to offsetting a continuing decline in the volume and profitability of
the textile component trades.
Guests' sales rose by 15% in the first year of operation under Thomas Walker and
profits also increased. In the second half of the year, computerised business
systems were introduced and preparation was made for advanced CNC design and
machining. This will be continued in the coming year. The start has been
encouraging.
The textile accessory business again reflects the much publicised problems of
European garment retail, which has remained in recession throughout the year.
This has been compounded by the uncontrolled supply of Chinese goods, which has
severely disrupted established supply chains.
In addition, with the migration to Asia, traditional European emphasis on
central specification and purchasing has been superseded by local buying at
indigenous prices. This has meant that quality standards have commanded lesser
importance when buying locally.
To balance this there are, perhaps, the first signs of realisation that low
prices from remote locations do not yield the desired flexibility and
reliability in supply or the quality standards expected by a discerning European
public. This might offer some relief in the future.
The personal identity and security trades have maintained volumes in the face of
increased competition, but margins have become tighter as bulk products become
commodity items. Greater precision in the design of identity products to ensure
uniqueness for access and security is leading to greater range variety and
smaller batch sizes. This is demanding creative and expensive marketing.
Taking an overall view of the Company's operations, the nature of some one off
expenses and likely trends this coming year, the Board is pleased to recommend a
final dividend of 0.65p per share thus yielding an overall dividend of 0.80p per
share for the year. (2004 - 0.80p)
Looking to the future, the Group is seeking to expand its brass stamping
operations in order to reduce dependence on the traditional textile trades. This
expansion is regarded as a medium term strategy and as a further step in a
continuous diversification towards higher added-value technology in the longer
term.
Bryan C Knight
Chairman
5 October 2005
GROUP PROFIT AND LOSS ACCOUNT
for the year ended 30 June 2005
Year ended Year ended
30/06/05 30/06/04
# #
Turnover 5,265,563 3,785,767
Net operating expenses (5,162,531) (3,657,746)
--------- ---------
Operating profit 103,032 128,021
Gain on the disposal of freehold property - 1,554,824
--------- ---------
Profit before interest and tax 103,032 1,682,845
Bank interest receivable 2,498 36,221
Bank interest payable (24,125) (21,206)
--------- ---------
Profit on ordinary activities before tax 81,405 1,697,860
Taxation (75,875) (65,881)
--------- ---------
Profit on ordinary activities after tax 5,530 1,631,979
Dividends (49,280) (49,280)
--------- ---------
Retained (loss)/profit for the year (43,750) 1,582,699
========= =========
Earnings per share - basic and diluted 0.09p 26.49p
========= =========
All results in the year were from continuing operations.
NOTE OF HISTORICAL COST PROFITS AND LOSSES
for the year ended 30 June 2005
Year ended Year ended
30/06/05 30/06/04
# #
Reported profit on ordinary activities before taxation 81,405 1,697,860
Realisation of property revaluation gains of
previous years - 489,770
--------- ---------
81,405 2,187,630
--------- ---------
Historical cost (loss)/profit for the year retained
after taxation, dividends and other appropriations (43,750) 2,072,469
--------- ---------
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 30 June 2005
Year ended Year ended
30/06/05 30/06/04
# #
Profit for the financial year attributable to
members of the parent company 5,530 1,631,979
Exchange difference on retranslation of net assets
of subsidiary undertakings (2,882) 2,992
--------- ---------
Total recognised gains and losses relating to the year 2,648 1,634,971
========= =========
GROUP BALANCE SHEET
at 30 June 2005
Year ended Year ended
30/06/05 30/06/04
# #
Fixed assets
Intangible assets 276,333 402,529
Tangible assets 2,907,641 2,602,698
Investments 104 104
--------- ---------
3,184,078 3,005,331
Current assets
Stocks 912,695 763,755
Debtors 1,663,204 2,259,992
Cash at bank and in hand 239,098 580,891
--------- ---------
2,814,997 3,604,638
Creditors: amounts falling due within one year (1,517,160) (2,229,904)
--------- ---------
Net current assets 1,297,837 1,374,734
--------- ---------
Total assets less current liabilities 4,481,915 4,380,065
Creditors: amounts falling after more than one year (134,625) -
Deferred income - (5,700)
Provisions for liabilities and charges (82,839) (63,282)
--------- ---------
4,264,451 4,311,083
========= =========
Capital and reserves
Called up share capital 308,000 308,000
Share premium account 15,200 15,200
Profit and loss account 3,941,251 3,987,883
--------- ---------
Equity Shareholders' Funds 4,264,451 4,311,083
========= =========
GROUP STATEMENT OF CASHFLOW
for the year ended 30 June 2005
Year ended Year ended
30/06/05 30/06/04
# # # #
Net cash inflow from 285,774 347,629
operating activities -------- ---------
Returns on investments
and servicing of finance
Interest received 2,498 36,221
Interest paid (25,358) (21,206)
-------- ---------
(22,860) 15,015
Taxation
Corporation tax paid (7,687) (60,102)
Repayment of prior 3,022 10,565
year corporation tax -------- --------
(4,665) (49,537)
Capital expenditure and financial
investment
Payments to acquire (309,254) (896,261)
tangible fixed assets
Payments to acquire - (536)
intangible fixed assets
Receipts from sales of 3,125 2,111,203
tangible fixed assets
Deferred receipt (see note below 505,250 -
-------- ---------
Net cash inflow from
capital expenditure 199,121 1,214,406
and financial investment
Acquisitions and disposals
Purchase of subsidiary undertaking - (1,325,410)
Net cash acquired with - 414,896
subsidiary undertaking -------- ---------
- (910,514)
Equity dividends paid (49,280) (44,968)
------- --------
Net cash inflow before management
of liquid resources and financing 408,090 572,031
Financing
Repayment of bank loan (849,215) (1,300,000)
Proceeds from new bank loan - 1,000,000
-------- ---------
Net cash outflow from financing (849,215) (300,000)
financing -------- ---------
(Decrease)/increase in (441,125) 272,031
cash in the year ======== ========
Note: Deferred receipt for sale of land and buildings by Guests to Thomas Walker
PLC prior to the acquisition of the Company.
Dividends will be paid on 11 November 2005 to those shareholders on the Register
at the close of business on 14 October 2005.
The abridged financial information set out above does not constitute the Group's
statutory accounts as defined under Section 240 of the Companies Act 1985. The
auditors have not yet made a report under Section 235 of the Companies Act 1985
on the financial statements for the year ended 30 June 2005 from which the
financial information is extracted, and consequently full accounts for the
period have not been filed at Companies House.
The report of the auditors on the accounts for the year ended 30 June 2004 was
unqualified and there was no statement under either Section 237(2) or Section
237(3). Full accounts for the year ended 30 June 2004 have been filed at
Companies House.
This announcement was approved by the Board of Directors on 4 October 2005.
The Annual General Meeting will be held on Friday 4 November 2005 at 12 noon at
The Birmingham Hippodrome Theatre, Hurst Street, Birmingham.
End
October 5th, 2005
This information is provided by RNS
The company news service from the London Stock Exchange
END
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