RNS Number:2748S
Walker (Thomas) PLC
05 March 2007
Chairman's Statement on the Interim Results
for the half year ending 31 December 2006
During the half year to 31 December 2006, Thomas Walker PLC has continued to
build on the substantially improved performance achieved in the second half of
the year to 30 June 2006. Results are significantly higher than the
corresponding figures one year ago and reflect the progress achieved by the
developing stamping subsidiary, TW Stamping Ltd.
Group turnover rose by 88% to #5,016,922 (2005 - #2,674,962) and Operating
Profit improved to #377,250 (2005 - loss of #9,597). Pre-tax profits
correspondingly rose to #304,303, (2005 - loss of #19,335). The estimated tax
rate of 30% yields a post-tax profit of #212,712.
The Board is pleased to declare an Interim Dividend of 0.5p per share. This
compares with the corresponding 0.15p per share in 2005. The increase in interim
dividend reflects the improved trading performance of the Group and the desire
to rebalance the dividends paid in this and future years so that a greater
proportion is paid at the interim stage.
The interim dividend will be paid on 10 April 2007 to shareholders on the
register at 16 March 2007.
Stamping
The merger of the two stamping operations into the Digbeth and Catesby factories
has continued apace during the period. The project has caused major disruption
to working conditions, but has remained on schedule and within budget.
Despite the programme of transferring plant and offices, sales at #3,017,078,
including intercompany transactions of #68,349 with the Thomas Walker
Accessories business, have exceeded budget.
The project will continue during the next few months and should be completed by
June 2007, with the termination of the lease on the factory at Yardley. Once the
relocation is complete, the stamping operations will be subject to a detailed
review of efficiency and working practices.
The second challenge during the period under review has been the escalation of
brass prices, which peaked at a further 7% above the July 2006 level - and 123%
above that of July 2005. These escalating costs have been successfully managed
and now appear to be receding somewhat in the first weeks of 2007.
Accessories
Turnover in the six months was #2,068,193 - (2005 - #1,697,835)
Garment fasteners have reported a welcome resilience during the second half of
2006, building further on the upswing in the first six months of the year.
A more tailored style (requiring hooks and bars) during the past season and more
buoyant trading within the European retail groups have led a significant
increase in sales.
At the same time, the repatriation of some garment manufacture from China to the
Eastern fringes of Europe, has placed potential business back within reach, so
vindicating the longer term policy of establishing and maintaining
distributorships in countries like Bulgaria and Turkey.
A second long term policy of developing distribution in further Asian countries
like India and Sri Lanka, has finally yielded encouraging contributions to
turnover and margin.
Garment manufacture is likely to remain transient in location. Thomas Walker is
now better placed to follow migration of production and so retard some of the
effects of long term decline.
The only negative influence has been the progressive demise of the American and
European demand for belt and brace fittings as manufacture of these products has
been transferred to China. Of late, these fittings have been a reducing element
in Thomas Walker's range of garment accessories.
Identity products have maintained volume and margin in an increasingly
competitive market. The Company's strength lies in its range of ID related
products and in the planned widening of its portfolio to cater for changing
demand.
These businesses will, however, remain susceptible to disruptive exchange rate
variations with respect to the American dollar and the Euro.
Outlook
The Group is now increasingly establishing itself in high technology metal
finishing activities and this strategy will be continued, where appropriate by
acquisition.
The Board looks forward to the second half of the year with optimism and remains
confident in the prospects for the stamping operations. Providing that there is
no unforeseen development in garment manufacture, the immediate period ahead
should continue to consolidate the achievements of the past six months.
GROUP PROFIT AND LOSS ACCOUNT
For the six months ended 31st December 2006
Unaudited Unaudited Audited Year
31/12/06 31/12/05 Year ended
Restated 30/06/06
# # #
--------------------------------------------------------------------------------
Turnover 5,016,922 2,674,962 7,328,379
Net Operating Expenses (4,639,672) (2,684,559) (6,999,844)
--------------------------------------------------------------------------------
Operating Profit/(Loss) 377,250 (9,597) 328,535
--------------------------------------------------------------------------------
Net Interest Payable (73,947) (16,738) (89,932)
Other Finance Income 1,000 7,000 14,000
--------------------------------------------------------------------------------
Profit/(Loss)on ordinary activities
before taxation 304,303 (19,335) 252,603
Taxation (91,591) 0 (89,129)
--------------------------------------------------------------------------------
Profit/(Loss)on ordinary activities
after taxation 212,712 (19,335) 163,474
--------------------------------------------------------------------------------
Earnings/(Loss) per share basic
and diluted 3.45 -0.31 2.65
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the six months ended 31st December 2006
Unaudited Unaudited Audited Year
31/12/06 31/12/05 Year ended
Restated 30/06/06
# # #
--------------------------------------------------------------------------------
Profit/(Loss)for the period
attributable to the members of the
holding company 212,712 (19,335) 163,474
Actuarial Gain/(Loss)related to the
pension scheme 154,000 5,000 (20,000)
Deferred Tax on Actuarial Gain/(Loss) (46,200) (1,500) 6,000
Exchange Differences on retranslation
of net assets of subsidiary 0 1,803 0
--------------------------------------------------------------------------------
Total Recognised Gains and Losses
relating to the period 320,512 (14,032) 149,474
Prior Year Adjustment 0 0 (249,159)
--------------------------------------------------------------------------------
Total Recognised Gains and Losses
relating to the period 320,512 (14,032) (99,685)
GROUP BALANCE SHEET
As at 31st December 2006
Unaudited Unaudited Audited Year
31/12/06 31/12/05 Year ended
Restated 30/06/06
# # #
--------------------------------------------------------------------------------
Fixed Assets
Intangible Assets 652,654 433,298 571,865
Tangible Assets 3,572,394 3,795,885 3,669,026
Investments 104 104 104
--------------------------------------------------------------------------------
4,225,152 4,229,287 4,240,995
Current Assets
Stocks 1,927,526 1,170,555 1,482,610
Debtors 2,787,916 1,703,531 2,577,551
Cash at bank and in hand 344,518 201,947 262,671
--------------------------------------------------------------------------------
5,059,960 3,076,033 4,322,832
Creditors: amounts falling due
within one year (3,313,508) (1,587,220) (2,681,674)
--------------------------------------------------------------------------------
Net Current Assets 1,746,452 1,488,813 1,641,158
--------------------------------------------------------------------------------
Total Assets less Current Liabilities 5,971,604 5,718,100 5,882,153
Creditors: amounts falling due after
more than one year (1,437,897) (1,545,401) (1,496,798)
Provision for liabilities and charges (97,539) (34,744) (109,539)
--------------------------------------------------------------------------------
Net Assets excluding Pension Scheme
Liability 4,436,168 4,137,955 4,275,816
--------------------------------------------------------------------------------
Pension Scheme Liability (25,900) (123,200) (133,700)
Net Assets including Pension Scheme
Liability 4,410,268 4,014,755 4,142,116
--------------------------------------------------------------------------------
Capital and Reserves
Called up Share Capital 308,000 308,000 308,000
Share Premium Account 15,200 15,200 15,200
Profit and Loss Account 4,087,068 3,691,555 3,818,916
--------------------------------------------------------------------------------
Equity Shareholders' Funds 4,410,268 4,014,755 4,142,116
--------------------------------------------------------------------------------
GROUP STATEMENT OF CASH FLOWS
For the six months ended 31st December 2006
Unaudited Unaudited Audited Year
31/12/06 31/12/05 Year ended
Restated 30/06/06
# # #
--------------------------------------------------------------------------------
Net Cash Flow from operating
activities 38,735 61,822 (198,569)
Returns on investments and servicing
of finance
Net Interest paid (68,174) (11,638) (75,480)
Interest paid on finance leases (4,773) 0 (12,280)
--------------------------------------------------------------------------------
(72,947) (11,638) (87,760)
Taxation
Corporation Tax paid 0 (61,154) (89,857)
Repayment of prior year Corporation Tax 0 0 4,254
--------------------------------------------------------------------------------
0 (61,154) (85,603)
Capital Expenditure and Financial
Investment
Payments to acquire Tangible
fixed assets (245,523) (82,609) (263,838)
--------------------------------------------------------------------------------
(245,523) (82,609) (263,838)
Acquisition
Payments to acquire tangible
fixed assets 0 (1,396,466) (848,650)
Payments to acquire intangible
fixed assets 0 0 (320,298)
--------------------------------------------------------------------------------
0 (1,396,466) (1,168,948)
Equity Dividend paid (52,360) (40,040) (49,280)
--------------------------------------------------------------------------------
Net cash (outflow)/inflow before
management Of liquid resources and
financing (332,095) (1,530,085) (1,853,998)
Financing
Repayment of bank loan (36,533) (150,785) (150,785)
Proceeds from new bank facilities 472,843 1,500,000 2,169,661
Repayment of capital element of
finance leases (22,368) (26,438) (41,973)
--------------------------------------------------------------------------------
Net cash inflow/(outflow) from
financing 413,942 1,322,777 1,976,903
--------------------------------------------------------------------------------
Increase/(decrease) in cash in the
period 81,847 (207,308) 122,905
--------------------------------------------------------------------------------
NOTES TO THE STATEMENTS
At 31 December 2006
Prior year adjustment
The Group has adopted FRS 17 "Retirement Benefits" in full with effect from 1
July 2005. In prior years the Group has complied with the transitional
disclosure requirements of this standard.
This has had the effect of reducing the net assets of the Group by #235,160 at
31 December 2005.
Dividend payment
Equity Dividends on ordinary shares of 0.5p per share, (Company total of
#30,800) will be paid to shareholders on the register at the close of business
on 16 March 2007, payable on 10 April 2007.
The Interim Statement will be sent to shareholders and is available to the
public at the registered office: Catesby Park, Eckersall Road, Kings Norton,
Birmingham B38 8SE and on the Company website at www.thomaswalker.co.uk.
Enquiries:
Edward Cook, Managing Director
Tel: 0121 486 4101
John Lomer, Finance Director
Tel: 0777 888 99 77
This information is provided by RNS
The company news service from the London Stock Exchange
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