RNS Number:0820W
Walker (Thomas) PLC
03 March 2004
THOMAS WALKER PLC
Interim Results for the half year ending 31 December 2003
Chairman's Statement
Thomas Walker entered on the new trading year, commencing in July 2003, with a
sense of confidence which appeared fully justified by trading during the first
few months of the period.
The encouraging start was overtaken in November by an exceptionally weak
performance of the major garment retailers during the weeks leading up to
Christmas. This was widely reported in the media at the time and has been
confirmed subsequently in the published results and commentaries for virtually
all the primeclothing brands.
In more mundane terms, the traditional mid-season follow-on orders and orders
for special sales lines did not materialise as expected at the end of 2003. For
this reason, the dullness of garment retail spread down to Thomas Walker as a
component supplier, closing December 2003 on a generally depressed note.
The Hong Kong operations similarly reflected the weaknesses of the European and
the North American markets in lower turnover and lower pre-tax profits.
Identity products continued to record commendable growth throughout the period,
closing with a 4% advance in sales on the previous year.
During the period, the Company's new factory at Catesby Park was fitted out and
operations transferred successfully.
Trading results have been heavily influenced by the duplication of costs
incurred by maintaining the St Paul's Square and the Catesby Park premises in
tandem during the period of transfer and the unbudgeted costs associated with
preparation for an Extraordinary General Meeting in December 2003.
The overall balance of the various trends is a 2.2% reduction in Thomas Walker
PLC's turnover to #1,879,113, (2002 - #1,920,302) and a 6.7% decline in pre-tax
profit to #57,415 (2002 - #61,525).
The interim dividend will be maintained at 0.15p per share as in previous years
and will be paid on 14 April 2004.
The proceeds from the sale of the St Paul's Square factory did not materialise
until January 2004, and so the accounting of the entire relocation project (the
purchase of Catesby Park, the fitting out, the physical relocation and the sale
of St Paul's Square) will be incorporated in the accounts for the full year
ending June 2004.
The indications in January 2004 are that the weaknesses in the clothing market
are extending into the new year and it is still too early to assess whether the
late spring or early summer seasons will herald a recovery. Nevertheless, in
preparation for any upturn, ThomasWalker has continued to make good progress in
establishing distribution centres in newer markets in Eastern Europe and Asia.
In the present textile garment climate, the Board is unable to see any
significant upturn in activity in this sector during the second half of the
business year.
The immediate outlook for identity products is favourable both in the United
Kingdom and Europe following a successful Trade Fair in Paris in November 2003.
With the relocation now completed, the Board will be seeking to evaluate
suitable acquisition opportunities, with a view to diluting the Company's
historical reliance on the textile garment industry.
The Board recorded with regret the early retirement of Mr Gregg Millar on
grounds of ongoing ill health - Mr Millar was the Engineering Director who had
successfully led the relocation project. The Board wishes him well in the
future.
B C Knight
Chairman
3 March 2004
Consolidated Profit and Loss Account
Unaudited Unaudited Year ended
Six months Six months 30/06/03
ended ended #
31/12/03 31/12/02
# #
Turnover 1,879,113 1,920,302 3,749,017
Operating profit 44,363 55,217 190,250
Net interest receivable 13,052 6,308 7,416
Profit before taxation 57,415 61,525 197,666
Taxation (17,225) (19,688) (68,683)
Profit attributable to shareholders 40,190 41,837 128,983
Dividends (9,240) (9,240) (44,968)
Retained profit 30,950 32,597 84,016
Dividends (pence per share)
Interim 0.15p 0.15p 0.15p
Final - - 0.58p
Earnings per share 0.65p 0.68p 2.09p
Consolidated statement of totalrecognised gains and losses
Unaudited Unaudited
Six months Six months Year
ended ended ended
31/12/03 31/12/02 30/06/03
# # #
Profits for the period 40,190 41,837 128,983
Exchange differences 2,513 (1,373) 3,030
Total Recognised Gains and Losses 42,703 40,464 132,013
Consolidated balance sheet
Unaudited Unaudited
Six months Six months Year ended
ended ended 30/06/03
31/12/03 31/12/02 #
# #
Fixed assets 1,807,362 872,913 2,381,666
Fixed assets held for re-sale 795,080 - -
Fixed Assets 2,602,442 872,913 2,381,666
Other current assets 2,139,390 1,987,112 2,242,093
Cash at bank and in hand - 538,039 308,860
Current assets 2,139,390 2,525,151 2,550,953
Creditors - amounts falling due within one
year
Deposit on exchange of contract (250,000) - (250,000)
Short term loan (1,100,000) - (1,300,000)
Bank overdraft (53,499) - -
Other creditors (578,499) (702,949) (653,645)
(1,981,908) (702,949) (2,203,645)
Net current assets 157,482 1,822,202 347,308
Total assets less current liabilities 2,759,924 2,695,115 2,728,974
Creditors - amounts falling due after more
than one year
Provisions for liabilities and charges (3,582) (20,302) (3,582)
Net assets 2,756,342 2,674,813 2,725,392
Capital and reserves 2,756,342 2,674,813 2,725,392
Consolidated cash flow statement
Unaudited Unaudited
Six months Six months Year ended
ended ended 30/06/03
31/12/03 31/12/02 #
# #
Net cash inflow from operating activities 150,081 (44,824) 712,757
Returns on investment and servicing on 13,052 6,308 7,416
finance
Taxation paid - - (61,230)
Capital expenditure (289,764) (49,458) (1,626,853)
Acquisitions and disposals - - -
Equity dividends paid (35,728) (31,416) (40,656)
Short term deposit - (40,000) 460,000
Financing - 1,300,000
(Decrease)/increase in cash (362,359) (159,390) 111,431
Dividends will be paid to those shareholders on the register at close of
business on 19 March 2004: paid on 14 April 2004.
Taxation is calculated at 30%
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
The figures for the financial year ended 30 June 2003 are based on an abridged
version of the audited accounts of the group which carried an unqualified audit
report filed with the registrar of companies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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