RNS Number:6715U
Worthington Group PLC
24 November 2000
WORTHINGTON GROUP PLC ("the Group" or "the Company")
Chairman's half year statement
The unaudited half year figures reflect the progress of restructuring the
Group which is producing acceptable profits at the operating level. The cost
of the realisation of underperforming assets, including the sale of GFC, are
accounted for in the figures of discontinued operations. This cost will
continue until the overall programme is completed and there are some inherited
administration expenses which will take time to phase out.
All the subsidiaries are making a useful contribution to Group profits but the
overall result is still held back by the interest charges which will now
continue to reduce slowly as the borrowings are repaid. The repayment
schedule has been slightly deferred because of the fire at Macclesfield and
the delay in completing the sale of the Shipley site, but zero borrowings
remain the target.
Planning permission has just been received for the redevelopment of the
Shipley site but the transaction will be completed only when the final details
are confirmed by the Local Authority which requires a normal three month
public consultation period which will expire at the end of March 2001. In the
meantime the closure costs of the site amounting to some #300k are included in
the losses but should be recouped, resulting in an overall profit of some
#2.4m.
Following the fire, the rebuilding of the entire Macclesfield site has now
started and will be completed by June 2001, releasing the Davenport Street
site for sale. Simultaneously we will also be vacating Park Lane Mills which
has been sold for #800k but the consideration is payable in July 2001. The
new purpose built factory and office block will house the total operation of
Worthington Manufacturing and will be a prestigious asset for the Group.
The factory at Daventry, and the warehouse in London, are also being marketed
currently and these disposals together with the others mentioned in this
Statement will eliminate much of the borrowings.
In the meantime we are continuing to evaluate propositions for the future
direction of the Group, but none so far have been compatible with our strict
criteria for investment. The restoration of shareholder value on a
sustainable basis is the main guideline for acquisition.
Joe Dwek, CBE
Executive Chairman
24 November 2000
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 30 September 2000
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2000 1999 2000
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Turnover: continuing operations 9,959 13,751 26,108
discontinued operations 1,155 15,513 26,190
-------- -------- --------
11,114 29,264 52,298
-------- -------- --------
Trading profit
Existing operations (before exceptionals) 430 352 731
Exceptional items - (273) (390)
Discontinued operations (75) 817 (2,071)
-------- -------- --------
Operating profit/(loss) 355 896 (1,730)
Share of profits of associated undertaking 91 - 98
(Loss) on disposal of fixed assets - - (299)
Losses on disposal of discontinued
operations (697) - (9,930)
-------- -------- --------
(Loss)/profit before interest (251) 896 (11,861)
Net interest payable and similar items (240) (866) (1,667)
-------- -------- --------
(Loss)/profit before taxation (491) 30 (13,528)
Taxation - - (433)
-------- -------- --------
(Loss)/profit on ordinary activities
after taxation (491) 30 (13,961)
Dividends paid and proposed - - (118)
-------- -------- --------
Retained (loss)/profit (491) 30 (14,079)
-------- -------- --------
Earnings/(loss) per share
- before exceptional items and disposals 0.2p 0.6p (2.4p)
-------- -------- --------
- after exceptional items (0.4p) 0.1p (15.6p)
-------- -------- --------
Recognised gains and losses
There are no recognised gains or losses in the half year ended 30 September
2000, other than those shown in the above profit and loss account.
CONSOLIDATED BALANCE SHEET
30 September 30 September 31 March
2000 1999 2000
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Fixed assets
Tangible assets 9,738 18,777 10,401
Negative goodwill (72) (80) (72)
Investments 27 27 27
Interest in associated undertaking 589 - 498
-------- -------- --------
10,282 18,724 10,854
Current assets
Stock 2,902 9,802 4,868
Debtors: amounts falling due within one year 7,445 13,129 10,222
Debtors: amounts falling due after more than
one year 1,061 - 1,190
Cash 6 4 16
-------- -------- --------
11,414 22,935 16,296
Creditors: amounts falling due within one
year (14,906) (29,220) (19,587)
-------- -------- --------
Net current liabilities (3,492) (6,285) (3,291)
-------- -------- --------
Total assets less current liabilities 6,790 12,439 7,563
Creditors: amounts falling due after more
than one year (452) (5,712) (734)
-------- -------- --------
Net assets 6,338 6,727 6,829
-------- -------- --------
Capital and reserves
Called up share capital 11,807 5,238 11,807
Share premium account 9,836 16,219 9,836
Capital reserves 128 128 128
Merger reserve (713) (713) (713)
Revaluation reserve 737 737 737
Profit and loss account (15,457) (14,882) (14,966)
-------- -------- --------
Shareholders' funds 6,338 6,727 6,829
-------- -------- --------
CONSOLIDATED CASH FLOW STATEMENT
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2000 1999 2000
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Net cash inflow/(outflow)from operating
activities 2,449 (90) (2,639)
Returns on investments and servicing of
finance (240) (721) (1,667)
Taxation - (40) (333)
Capital expenditure and financial investment 207 (40) 3,825
Acquisitions and disposals - - 6,074
Equity dividends paid - (556) (556)
-------- -------- --------
Net cash inflow/(outflow) before financing 2,416 (1,447) 4,704
Financing (3,609) (1,369) (190)
-------- -------- --------
(Decrease)/increase in cash in the period (1,193) (2,816) 4,514
-------- -------- --------
Reconciliation of net cash flow to movement in net debt
(Decrease)/increase in cash in the period (1,193) (2,816) 4,514
Cash inflow from debt and finance leases 3,609 1,369 6,415
-------- -------- --------
Change in net debt resulting from cash flows 2,416 (1,447) 10,929
-------- -------- --------
Movement in net debt 2,416 (1,447) 10,929
Net debt 1 April (10,549) (21,478) (21,478)
-------- -------- --------
Net debt 30 Sept/31 March (8,133) (22,925) (10,549)
-------- -------- --------
Reconciliation of operating profit to net cash flow from operating activities
Operating profit/(loss) 355 896 (1,730)
Closure costs on termination of trading
activities (697) 0 (3,459)
Depreciation and amortisation 456 791 2,132
Decrease in stocks 1,966 214 2,600
Decrease/(increase) in debtors 2,906 (655) 230
Decrease in creditors (2,537) (1,336) (2,412)
-------- -------- --------
Net cash inflow/(outflow) from operating
activities 2,449 (90) (2,639)
-------- -------- --------
NOTES TO THE INTERIM STATEMENT
1. The interim accounts have been prepared on the basis of accounting
policies set out in the Group's financial statements for the year ended 31
March 2000. The interim accounts were approved by the Board on 24 November
2000 and are unaudited.
Comparative figures for the half year ended 30 September 1999 are extracts
from the interim accounts for that period and are also unaudited.
Comparative figures for the year ended 31 March 2000 have been extracted from
the financial statements, which have been filed with the Registrar of
Companies. These were audited and reported upon without qualification by KPMG
Audit Plc and did not contain any statement under section 237 of the Companies
Act 1985.
2. The taxation charge is calculated by applying the directors best estimate
of the annual tax rate to the profit for the period.
3. Earnings/(loss) per share is calculated by reference to the average number
of shares in issue in the period, amounting to 118,070,163 shares (six months
to 30 September 1999: 82,390,131 shares) and on a loss after taxation of
#491,000 (six months to 30 September 1999: profit of #30,000).
4. Copies of this report and the last annual report and accounts are
available from The Secretary, Worthington Group plc, Chatsworth Works, Dalton
Lane, Keighley, BD21 4HR.
Enquiries:
John Taylor, Chief Executive, Worthington Group plc 01535 297700
Stephen Fletcher, Finance Director, Worthington Group plc 01535 297700
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