Worthington Group - Interim Results - Amendment
01 December 1999 - 10:44PM
UK Regulatory
RNS Number:7634B
Worthington Group PLC
1 December 1999
The issuer has advised that the following alteration should be made to the
WORTHINGTON GROUP PLC, DISPOSALS/RIGHTS/INTERIM RESULTS, announcement released
yesterday 30 November 1999 at 7:05am under RNS No 6580B.
The unaudited results for the half year ended 30 September 1999 released
yesterday contained a typographical error in respect of that period's
turnover. The consolidated profit and loss account showed turnover for the
period of #39,364,000; this should have read #29,264,000, which corresponds
with the correct figure referred to in the Chairman's statement preceeding the
results.
A corrected version of the interim results for the six months ended 30
September 1999 is shown below:
INTERIM RESULTS OF WORTHINGTON FOR THE SIX MONTHS ENDED 30 SEPTEMBER 1999
The task of restructuing the Group has continued with much vigour in the first
half of the year and the benefits will not start to be apparent. The market
has been far from easy, with much turbulence in the retail sector. In the
circumstances, sales of #29.2 million producing trading profits of #1,169,000
and margins of some 4 per cent. averaged over the Group are considered
satisfactory.
From these trading profits must be deducted non-recurring items of #273,000,
which are to be expected given the ongoing rationalisation which is set to
continue until we have completed the streamlining of our operations.
Competitiveness is currently being maintained by cost reduction programmes
with the result that this half year performance was better than the last six
months of the previous year.
The interest charge has the most significant impact on these unaudited interim
results, borrowings are simply too high and must be quickly reduced in order
that the Group can progress plans for its development. The proposed Rights
Issue and disposals announced today will remedy the problem to a large extent.
The full details are contained in the circular which accompanies this
Statement.Further disposals are under consideration with a view to eliminating
all bank borrowings.
Turning now to the individual divisions, Clothing Components had a good period
with sales and profits well above budget. Industrial and Home Furnishings
traded in line with expectations. The results for Yarns and Fabrics were a
disappointment with sales and profits well below budget. Yours Board is
giving particular attention to improving the Group's profitability, and is
undertaking a serious review of the scale and future of some of the Group's
operations.
The Board is generally pleased with the progress to-date and feels that the
time is now right to actively consider a measured diversification into new
areas. Notwithstanding this proposed change of emphasis, some of the
underlying businesses which are retained have a niche in the marketplace and
their profit contributions should sustain a stream of earnings sufficient for
dividends to be resumed once the balance sheet has been repaired.
JC Dwek, C.B.E.
30 November 1999
Consolidated profit and loss account
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
1999 1998 1999
unaudited unaudited audited
(restated
- note 1)
#'000 #'000 #'000
Turnover 29,264 18,649 45,001
------ ------ ------
Trading profit/(loss) 1,169 1,096 (282)
Exceptional and non-recurring items (note 3) (273) - (5,405)
Operating profit/(loss) 896 1,096 (5,687)
Profit on disposal of fixed assets - 4 134
Net interest payable (866) (479) (1,355)
------ ----- ------
Profit/(loss) before tax 30 631 (6,908)
Taxation - (181) (301)
------ ------ ------
Profit/(loss) attributable to shareholders 30 440 (7,209)
Dividends payable - (556) (556)
------ ------ ------
Retained profit/(loss) 30 (116) (7,765)
------ ------ -------
Earnings/(loss) per share 0.1p 1.1p (15.8p)
Consolidated balance sheet
30 September 31 March
1999 1999
unaudited audited
#'000 #'000
Fixed assets 18,777 19,528
Negative goodwill (80) (80)
Investments 27 27
------ ------
18,724 19,475
------ ------
Current assets
Stock 9,802 10,016
Debtors 13,129 12,474
Cash 4 28
------ ------
22,935 22,518
Creditors due in less than one year (29,220) (29,256)
------ ------
Net current liabilities (6,285) (6,738)
------ ------
Total assets less current liabilities 12,439 12,737
Creditors due in more than one year (5,712) (6,040)
------ ------
Net assets 6,727 6,697
------ ------
Capital and reserves
Share capital 5,238 5,238
Share premium 16,219 16,219
Other reserves 152 152
Profit and loss account (14,882) (14,912)
------ ------
6,727 6,697
------ ------
Consolidated cash flow statement
6 months Year
ended ended
30 September 31 March
1999 1999
unaudited audited
#'000 #'000
Net cash (outflow)/inflow from operating activities (90) 1,305
Returns on investments and servicing of finance:
Interest paid (603) (1,185)
Interest element of finance lease rental payments (118) (170)
------ ------
(721) (1,355)
------ ------
Taxation:
UK Corporation tax including advance corporation tax (40) (842)
Capital expenditure and financial investments
Purchase of tangible fixed assets (300) (811)
Sale of tangible fixed assets 260 393
------ ------
(40) (418)
------ ------
Acquisitions and disposals
Purchase of subsidiary undertakings - (554)
Overdrafts acquired with subsidiary - (2,412)
------ -------
- (2,966)
------ -------
Equity dividends (paid) (556) (1,275)
Special dividend paid on acquisitions - (207)
------ ------
Net cash (outflow) before financing (1,447) (5,758)
Financing:
Issue of ordinary share capital - 7
Capital element of finance lease rental payments (615) (662)
Debt due within one year
Increase in short term borrowings - 500
Repayments of short term borrowings (496) (1,200)
Debt due after more than one year
New loan repayable 2006 - 4,620
Repayment of long term borrowings (258) (3,803)
------ -----
(1,369) (538)
------ ------
Decrease in cash (2,816) (6,296)
------ ------
Notes:
1. The unaudited results for the six months ended 30 September 1998 have been
re-stated to take into account the change in accounting treatment of
development costs and the error in the basis of stock valuation as
detailed in the 1998/99 Annual Report & Accounts dated 30 July 1999, as
follows:
Pro-forma Change in Error As
only re- account- in basis restated
stated ing trea- of stock
tment of valua-
developm- tion
ent costs
#'000 #'000 #'000 #'000
Turnover 18,649 - - 18,649
------ ------ ------ ------
Operating profit/(losses) 2,409 (450) (863) 1,096
Profit on disposal of fixed assets 4 - - 4
Net interest payable (479) - - (479)
------ ------ ------ ------
Profit before tax 1,934 (450) (863) 621
Taxation (561) 130 250 (181)
------ ------ ------ ------
Profit attributable to shareholders 1,373 (320) (613) 440
------ ------ ------ ------
(i) The "as previously reported" results for the half year ended 30 September
1998 are the Interim Results published on 7 December 1998.
(ii) In March 1999 the Group reviewed its treatment of development costs which
were previously classified as prepayments and written off against future
revenue streams. All development costs are now written off as incurred.
(iii)A review of the basis of stock valuation attributable to manufactured and
bought-in stock was carried out in 1999 and revealed that in prior
periods inappropriate costs had been absorbed into the carrying value of
stocks. Absorption of direct and indirect costs is now included in the
value of stock only when appropriate
(iv) A tax credit equivalent to 29% has been allocated to the tax charge in
respect of points (ii) and (iii) above
(v) The exceptional items written off as at 31 March 1999 have not been
allocated into the six month period ended 30 September 1998 since they
principally related to items included in the balance sheet as at 31
March 1998 (see note 3 below).
2. The Interim Results and the comparative figures are unaudited and do not
constitute Group accounts as defined in Section 240 of the Companies Act
1985.
The information relating to the year ended 31 March 1999 does not
constitute Group accounts as defined in Section 240 of the Companies Act
1985 and has been extracted from the audited accounts, reported without
qualification, which have been delivered to the Registrar of Companies.
3. The exceptional and non-recurring items consist of the following:
6 months 6 months Year ended
ended ended 31 March
30 Sept 99 30 Sept 98 1999
#'000 #'000 #'000
Non-recurring items
Closure costs of London Head Office (170) - -
Trading loss and loss on disposal of
"Davenport Street" operations (53) - -
Redundancy costs (50) - -
Exceptional items
As per note 6 to the 1998/9 Annual Report
and Accounts - - (5,405)
------- ------ ------
(273) - (5,405)
------- ------ ------
4. Earnings/(loss) per share have been calculated by reference to the average
number of of ordinary shares in issue in the period, amounting to
52,387,697 shares(six months ended 30 September 1998: 41,148,376 shares)
and on profit after taxation of #30,000 (six months ended 30 September
1998: related profits after taxation of #440,000). The diluted earnings
per share for the six months ended 30 September 1999 was 0.1p (six months
ended 30 September 1998: 1.1p).
5. Reconciliation of operating profit to net cash flow from operating
activities:
6 months Year
ended ended
30 Sept 99 31 March 99
Operating profit/(loss) 896 (282)
Depreciation 791 1,512
Decrease/(increase) in stock 214 877
Decrease/(increase) in debtors (655) 267
(Decrease)/increase in creditors (1,336) (1,069)
------ ------
Net cash flow from operating activities (90) 1,305
------ ------
6. Further copies of this statement are available from:
Worthington Group plc, Victoria Works, Shipley, West Yorkshire BD17 7EF.
END
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