RNS Number:0724T
Blick PLC
10 December 2003
10 December 2003
BLICK plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2003
Financial Summary
* Turnover for the period: #69.2m (2002: #67.5m)
* Profit before tax, goodwill amortisation and exceptional item: #8.0m
(2002: #7.8m)
* Profit before tax, after exceptional item: #6.6m (2002: #5.4m)
* Earnings per share before goodwill amortisation and exceptional item:
21.63p (2002 restated: 19.16p)*
* Net debt reduced to #13.5m (2002: #15.7m)
* Final dividend maintained at 9.5p resulting in unchanged full year
dividend of 14.5p (2002:14.5p)
*Certain comparative results for 2002 have been restated in line with the
adoption in full of FRS 17 to account for Blick's pension liabilities.
Operational highlights
* Annual growth in new rental orders up 18% to #12.7m (2002: #10.8m)
* Future Contracted Rental Book stabilised: #92.7m (2002: #92.5m)
* Establishment of Blick Finance as a business unit to drive the growth of
rental sales
* Strong demand for integrated product, service and finance solutions
Commenting on the results, Vanda Murray, Chief Executive said:
"We have made excellent progress over the last twelve months by building on our
strategy of being a leader in each of our selected markets and by providing our
customers with an integrated offer of product technology, service and finance.
"Our concerted drive to grow the rental business has resulted in stabilisation
of our future contracted rental book.
"We end the year in a stronger position and are confident that we can build on
the investment we have made in products and market development. We anticipate
continued progress this year."
Enquiries:
Blick plc
Vanda Murray OBE Chief Executive 10 December 2003
Garry Peagam Finance Director Tel. 020 7404 5959
Thereafter:
Tel. 01793 412 207
Brunswick
Jonathan Glass Tel. 020 7404 5959
Rupert Young
Emily O'Connell
CHAIRMAN'S STATEMENT
Financial Performance
I am pleased to report that we have made excellent progress over the last twelve
months. We have built on our strategy of being a leader in each of our selected
markets. Our integrated solutions have strengthened our competitive position.
Group turnover for the year improved to #69.2m (2002: #67.5m). Profit before
tax, goodwill amortisation and exceptional item rose to #8.0m (2002: #7.8m) and
profit before tax after goodwill amortisation and exceptional item to #6.6m
(2002: #5.4m).
Earnings per share before goodwill and exceptional item increased to 21.63p
(2002 restated: 19.16p). Earnings per share after goodwill amortisation and
exceptional item increased to 17.12p (2002 restated: 11.94p).
Your Board is recommending an unchanged final dividend of 9.5p per share, which
will make an unchanged full year dividend of 14.5p.
Net cash inflow from operating activities remains strong at #10.4m (2002:
#10.0m), and net debt as at 30 September 2003 has reduced to #13.5m (2002:
#15.7m). After restating our shareholders' funds to reflect the change in
accounting treatment for pensions liabilities, gearing has reduced from 59% as
at 30 September 2002 (restated) to 47%.
During the year we established Blick Finance as a separate business unit to
drive the growth of new rental sales. We have already begun to see significant
benefits, with an 18% annual growth in new rental orders. The value of our
future contracted rental book (FCR) now stands at #92.7m (2002: #92.5m).
Total integrated sales, which include both our own and external products, grew
by 17% year-on-year (2002: 10% growth).
As explained later, Blick plc has adopted FRS 17 to account for its pension
liabilities, which means that certain comparative results for 2002 have been
restated.
Business Performance
In 2003 we have continued to focus on building a competitive advantage by
providing our customers with a unique integrated offer of product technology,
service and finance. Our strategy is to design systems which provide our
customers with a total solution, offering products which work together and are
easy to administer from a central point, supported by comprehensive service and
finance support packages.
Security
As anticipated at the half year, our security business had a challenging year
with turnover of #30.6m (2002: #32.1m) and profit before goodwill amortisation
and exceptional item of #2.4m (2002: #2.6m).
Blick Security, our UK installation business performed reasonably well in the
face of the expected difficult market conditions. Our strategy of focusing on
higher margin business has lead to an increase in new contract profitability,
offset by the expected decline in turnover relating to lower margin business.
Overall, the gross margin achieved by the Blick Security installation business
improved by 6% when compared with 2002.
Blick Security is maintaining its focus on achieving integrated product sales,
and we have had some significant contract wins, such as our complete access
security system for Cardiff University.
PAC International, our access control business has had an excellent year with a
strong performance in the UK and growth in international markets through its
network of strategic partners.
The business has also benefited from its largest ever single-site access control
project with Shenzhen City Council in China. Blick's remit is to provide access
control systems to the Council's government offices, allowing selective access
to the public. Whilst still a small segment of our security business, China is
becoming an increasingly important market and we are well positioned to take
advantage of this through our local partners.
In March 2003, we announced a strategic alliance with Bosch Inc. in North, South
and Central America to supply access control systems. This contractual
arrangement will secure over a three year period at least US $9.0m in sales with
minimum annual orders from Bosch of US $3.0m.
In South Africa, we strengthened our position in the security installation
market with the acquisition of Impro Systems (Pty) Limited, which was announced
in May 2003. A key feature of our South African business is the growth in sales
of integrated solutions. As the global markets for integrated security and time
management products develop, we expect to be able to leverage our South African
expertise in the UK and elsewhere.
Blick Alfia, our car parking business, had a challenging year but we have seen
an improvement in its performance. We now offer finance solutions through Blick
Finance across this product range and are also developing sales prospects in
Asia and South Africa.
Communication
We are delighted with the excellent progress made by our communication
businesses this year. Turnover increased 16% to #17.9m (2002: #15.4m) and profit
before goodwill amortisation increased to #1.2m (2002: #0.3m), reflecting in
particular a strong second half contribution from our newly launched Capital
Release Programme.
Our Digital TV Signal distribution business benefited from increased market
demand and profit before goodwill amortisation and exceptional item grew to
#0.3m (2002: #0.2m loss).
Our wireless messaging business had a good year with profit growing to #0.9m
(2002: #0.5m).
Sales of our staff protection and paging systems continue to increase and we
have had particular success in the UK healthcare market, where our products are
often acquired on a Blick Finance agreement.
In the year under review we completed a #1.30m staff protection system to meet
the challenging requirements of Rampton Hospital, one of the three Special
Hospitals in England. Since the year-end our expertise has been further
recognised with our selection to supply and install a similar system for
Broadmoor Special Hospital, with 600 mobile alarm units for hospital staff, plus
the associated communications infrastructure, at an initial contract value of
almost #1.0m.
European sales have also helped our performance this year, with strong growth in
the use of our products in retirement homes, hospitals, prisons and secure
establishments, as well as commercial applications.
Time Management
Our time management business performed as expected this year with turnover of
#20.7m (2002: #20.0m) and profit before goodwill amortisation of #4.4m (2002:
#4.8m). Profit from rental income declined by #0.8m, but this was partially
offset by the profit from increased new rental sales and improved operating
efficiencies. In addition, last year's results benefited from a one off exchange
gain from South Africa of #0.2m.
In the UK we have grown sales in the service and commercial markets as well as
holding our strong position in the manufacturing sector. In South Africa, our
strategy is to focus on the top 100 companies. We are confident in our ability
to grow sales of integrated time and security systems in South Africa and our
prospects are good.
In April 2003 we announced the acquisition of Isgus International Limited. Isgus
added a range of new products to our time and attendance portfolio and brought
with it a new group of customers, with the potential for developing rental sales
opportunities.
Blick Finance
Our customer base of almost 20,000 rental and maintenance contracts is one of
Blick's major assets and we have made the management of this portfolio a key
priority.
As referred to earlier, we have established Blick Finance as a new business
unit. This is a logical extension of our integrated approach, providing our
customers with convenient and cost-effective methods of acquiring our products
and services. Its remit is to drive the growth of new rental sales across our
businesses, through the launch of new rental products, contract management,
training and sales incentivisation.
In February 2003, we launched our Capital Release Programme where we combine our
products, service and finance solutions. Under this programme Blick takes over
the legal and commercial responsibility for the customer's system. A commercial
value is agreed and typically the system is either upgraded and/or extended to
this agreed value, with a new finance agreement being put in place for the
enhanced system.
In the second half of the year, the Capital Release Programme has been an
important factor in driving the growth of new rental sales. We have made this
area a focus of management activity and re-defined Bruce Ginnever's role from
Operations Director to Group Leasing Director. Following these changes, the
leasing business has responded very positively, with a marked improvement in the
second half, resulting in a strong second half rental sales growth of 26% over
the corresponding period in the prior year. Annual growth in new rental sales
was 7% (2002: 11%)
Future contracted rental (FCR) is the value of the rental receipts expected from
our contract base, calculated by reference to the outstanding duration of the
contracts. In the second half we arrested an eight year decline in FCR, which
increased to #92.7m (2002: #92.5m). Part of this improvement was due to the
impact on our results of the strengthening in the South African Rand, but
nevertheless the improvement in the underlying performance is a good
achievement, particularly contrasted with an average rate of decline of 11% over
the previous four years.
Contracted annual rental (CAR) as at the year end was #22.2m (2002: #22.6m). CAR
is the annual receipts that will be generated by our contract base. Supported by
the success of our Capital Release Programme and increased focus and drive on
new rental sales, we have reduced our rate of decline of CAR to 1.8% this year.
This is highly encouraging as in previous years this decline has averaged 6%.
Notably, new rental orders are up by 18% from #10.8m to #12.7m.
New Product Development
The increasing demand from our customers for integrated solutions is reflected
by our continued investment in research and development. This year we have
invested #2.0m (2002: #1.8m) in the development of new products, and we have
over 40 people in dedicated research and development roles.
During the year we made excellent progress in the further development of
products based on our new platforms in access control and wireless
communications systems.
EasiNet, the first phase of our access control development, using the new
Microsoft.Net architecture was launched in November last year. Demand has been
good and the second phase of this development (SecureNet) is due for launch in
January 2004.
Our wireless communications product platform ADEPT, was also well received by
the market. ADEPT allows us to target specific market sectors with new product
applications such as our wireless building evacuation system. Our wireless
communications business has also been swift to develop innovative products in
response to customer needs, as exemplified by bringing to market Blick Saffire,
our portable fire or evacuation alarm system for the hard of hearing.
Exceptional Item
As previously announced, Blick USA, our small US business was closed during the
year under review following the contractual agreement with Bosch Inc. to supply
our access control solutions to them. Restructuring costs of #0.6m were
incurred.
Pension Funding
During the year, Blick plc adopted Financial Reporting Standard (FRS) 17 and as
a consequence recognised net pension liabilities net of deferred taxation of
#1.1m (2002: #1.2m) onto the Group balance sheet. Blick considers that
accounting under FRS17 provides a better quality of information than under the
previous accounting standard. The results for 2002 have been restated
accordingly and a prior year adjustment has been recognised.
Board
During the year Martin Clark has joined your Board as a Non-Executive Director.
At the Company's next AGM, Christopher Eugster intends to retire from the Board.
Christopher is the Senior Non-Executive Director and Chairman of the Audit
Committee. Anthony Simonds-Gooding will assume the former role, and Martin Clark
the latter.
People
We operate in a continually changing business environment, and I would like to
pay tribute to all of the people at Blick who have worked hard during a period
of change for many. Blick puts its customers at the centre of its strategy and,
therefore, we place great importance on our "Customer First" programme.
This year we have introduced an Employee Recognition Award Scheme which allows
us to thank individuals publicly for their outstanding contribution.
Outlook
We end the year in a stronger position and are confident that we can build on
the investments we have made in both products and market development. Although
trading conditions in some of our markets remain challenging, we anticipate
continued progress in the current financial year.
Nick Temple
Chairman
BLICK PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2003
(Notes) Before goodwill Goodwill Total 2003 As restated Goodwill As restated
amortisation amortisation #'000 Before goodwill amortisation Total
and exceptional and amortisation and exceptional 2002
item 2003 exceptional and exceptional items 2002 #'000
#'000 item 2003 items 2002 #'000
#'000 #'000
------------------------------------------------------------------------------------------------------------
Turnover (2) 69,154 - 69,154 67,464 - 67,464
Cost of sales (38,763) - (38,763) (38,719) (445) (39,164)
------------------------------------------------------------------------------------------------------------
Gross profit 30,391 - 30,391 28,745 (445) 28,300
Distribution
costs (10,324) - (10,324) (10,436) (80) (10,516)
Administrative
expenses
before
goodwill
amortisation (11,576) (640) (12,216) (10,106) (894) (11,000)
Amortisation
of goodwill - (727) (727) - (740) (740)
------------------------------------------------------------------------------------------------------------
Operating
profit 8,491 (1,367) 7,124 8,203 (2,159) 6,044
Provision for
loss on
disposal of
fixed assets - - - - (241) (241)
------------------------------------------------------------------------------------------------------------
Profit on
ordinary
activities
before
interest 8,491 (1,367) 7,124 8,203 (2,400) 5,803
Interest
receivable and
similar income
(4) 113 - 113 339 - 339
Interest (593) - (593) (736) - (736)
payable
Net interest
charges on
defined
benefit
pension scheme (42) - (42) (40) - (40)
------------------------------------------------------------------------------------------------------------
Profit on
ordinary
activities
before
taxation (2) 7,969 (1,367) 6,602 7,766 (2,400) 5,366
------------------------------------------------------------------------------------------------------------
Tax on profit
on ordinary (1,410) - (1,410) (1,952) 209 (1,743)
activities (5)
------------------------------------------------------------------------------------------------------------
Profit for the
financial year 6,559 (1,367) 5,192 5,814 (2,191) 3,623
Dividends (6) (4,399) - (4,399) (4,399) - (4,399)
------------------------------------------------------------------------------------------------------------
Retained
profit/(accumu
lated loss)
for the
financial year 2,160 (1,367) 793 1,415 (2,191) (776)
------------------------------------------------------------------------------------------------------------
Basic earnings
per share (7) 21.63p (4.51)p 17.12p 19.16p (7.22)p 11.94p
------------------------------------------------------------------------------------------------------------
Diluted
earnings per
share (7) 21.61p (4.50)p 17.11p 19.16p (7.22)p 11.94p
------------------------------------------------------------------------------------------------------------
The profit and loss account impact of two acquisitions made during the year are
not significant enough to warrant separate disclosure as acquisitions within
continuing operations.
STATEMENT OF GROUP TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 30 SEPTEMBER 2003
2003 As restated
#'000 2002
#'000
------------------------------------------------------------------------------
Profit for the financial year 5,192 3,623
Actuarial gain/(loss) recognised on defined benefit
pension scheme 168 (802)
Movement on deferred tax relating to actuarial gain/loss
on defined benefit pension scheme (50) 167
Currency translation differences on foreign currency net
investments 1,146 (460)
------------------------------------------------------------------------------
Total recognised gains and losses relating to the
financial year 6,456 2,528
Prior year adjustment - recognition of deficit on defined
benefit pension scheme (1,428) -
Prior year adjustment - increase in provision for
deferred tax - (2,971)
------------------------------------------------------------------------------
Total gains and losses recognised since the last annual
report 5,028 (443)
------------------------------------------------------------------------------
RECONCILIATION OF MOVEMENT IN GROUP SHAREHOLDERS' FUNDS - EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2003
2003 As restated
#'000 2002
#'000
------------------------------------------------------------------------------
Opening shareholders' funds - equity (previously
#27,909,000 before prior year adjustment of #1,428,000) 26,481 28,352
Retained profit/(accumulated loss) for the financial year 793 (776)
Actuarial gain/(loss) recognised on defined benefit
pension scheme 168 (802)
Movement on deferred tax relating to actuarial gain/loss
on defined benefit pension scheme (50) 167
Currency translation differences on foreign currency net
investments 1,146 (460)
------------------------------------------------------------------------------
Closing shareholders' funds - equity 28,538 26,481
------------------------------------------------------------------------------
GROUP BALANCE SHEET
AT 30 SEPTEMBER 2003
2003 As restated
#'000 2002
#'000
------------------------------------------------------------------------------
Fixed assets
Intangible assets 11,537 11,425
Tangible assets 5,542 5,655
Investments 2,117 2,126
------------------------------------------------------------------------------
19,196 19,206
Current assets
Stocks 6,618 7,248
Debtors 13,727 13,578
Net investment in finance leases
due within one year 7,341 7,105
due after more than one year 22,139 21,377
Cash at bank 895 838
------------------------------------------------------------------------------
50,720 50,146
Creditors (amounts falling due within one year)
Bank and other loans (14,381) (15,115)
Convertible loan notes - (1,400)
Trade and other creditors (12,120) (11,908)
Deferred income (5,708) (5,524)
Corporation and other taxes (3,201) (2,859)
------------------------------------------------------------------------------
(35,410) (36,806)
------------------------------------------------------------------------------
Net current assets 15,310 13,340
------------------------------------------------------------------------------
Total assets less current liabilities 34,506 32,546
Creditors (amounts falling due after more than one year) (17) (72)
Provisions for liabilities and charges (4,878) (4,802)
------------------------------------------------------------------------------
Net assets excluding net retirement benefits liability 29,611 27,672
Net retirement benefits liability (1,073) (1,191)
------------------------------------------------------------------------------
Net assets including net retirement benefits liability 28,538 26,481
------------------------------------------------------------------------------
Capital and reserves
Called up share capital 1,559 1,559
Share premium 2,487 2,487
Revaluation reserve 667 678
Profit and loss account 23,825 21,757
------------------------------------------------------------------------------
Shareholders' funds - equity 28,538 26,481
------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2003
Reconciliation of operating profit to net cash inflow from
operating activities (Notes) 2003 2002
#'000 #'000
------------------------------------------------------------------------------
Operating profit 7,124 6,044
Impairment of intangible asset - 723
Depreciation and amortisation 2,353 2,178
Profit on disposal of tangible fixed assets (101) (9)
FRS17 retirement benefits charge 140 147
Translation differences (140) 37
Movements in
Net investment in finance leases (545) 246
Working capital 1,558 673
------------------------------------------------------------------------------
Net cash inflow from operating activities 10,389 10,039
------------------------------------------------------------------------------
Cashflow statement
------------------------------------------------------------------------------
Net cash inflow from operating activities 10,389 10,039
------------------------------------------------------------------------------
Returns on investments and servicing of finance
Interest and similar income received 113 339
Interest paid (543) (780)
------------------------------------------------------------------------------
Net cash outflow from returns on investments (430) (441)
and servicing of finance
------------------------------------------------------------------------------
Taxation (1,228) (2,397)
------------------------------------------------------------------------------
Capital expenditure and financial investment
Purchase of fixed assets (1,773) (1,656)
Proceeds of disposal of tangible fixed assets 266 111
------------------------------------------------------------------------------
Net cash outflow from capital expenditure (1,507) (1,545)
and financial investment
------------------------------------------------------------------------------
Acquisitions
Purchase of subsidiary undertakings (10) (478) -
Cash acquired with subsidiary undertaking (10) 30 -
Bank overdraft acquired with subsidiary undertaking (10) (38) -
------------------------------------------------------------------------------
Net cash outflow from acquisitions (486) -
------------------------------------------------------------------------------
Equity dividends paid (4,399) (4,399)
------------------------------------------------------------------------------
Net cash inflow before financing 2,339 1,257
------------------------------------------------------------------------------
Financing
New term loans 2,000 -
Repayment of loans (1,733) (1,046)
Capital element of finance lease rental payments (139) (32)
------------------------------------------------------------------------------
Net cash inflow/(outflow) from financing 128 (1,078)
------------------------------------------------------------------------------
Increase in cash (8) 2,467 179
------------------------------------------------------------------------------
NOTES
1. Accounting policies
Except as set out in the following paragraph this statement has been prepared
using the Group's accounting policies as set out in the Annual Report and
Accounts for the year ended 30 September 2002.
During the year Blick plc adopted Financial Reporting Standard (FRS) 17
Retirement Benefits. Although adoption of the standard is not yet mandatory
Blick considers that accounting under FRS 17 provides a better quality of
information than that which would be provided under Statement of Standard
Accounting Practice (SSAP) 24 Accounting for Pension Costs. As a result Blick
plc voluntarily adopted FRS 17 in 2003. Accordingly the difference between the
market value of the assets of the Blick plc Group Pension and Life Assurance
Scheme and the present value of its accrued pension liabilities is now
incorporated into the balance sheet with the resulting net liability stated net
of a credit for deferred taxation. The results for 2002 have been restated
accordingly and a prior year adjustment has been recognised. Financial Reporting
Standard FRS 19 Deferred Tax was adopted during the year ended 30 September
2002.
2. Turnover and segmental information
The segmental analysis is stated after the allocation of head office costs. For
the purposes of this analysis, allocation of interest is made on the basis of
relative size of investment. Analysis by class of business is based on the
Group's management structure.
Turnover 2003 2002
#'000 #'000
------------------------------------------------------------------------------
Analysed by class of business
Security 30,551 32,063
Communication 17,890 15,437
Time Management 20,713 19,964
------------------------------------------------------------------------------
69,154 67,464
------------------------------------------------------------------------------
Analysed by geographic area of origin
United Kingdom and Republic of Ireland 59,020 58,037
Rest of Europe 3,443 2,367
Africa 5,669 4,306
United States of America 1,022 2,754
------------------------------------------------------------------------------
69,154 67,464
------------------------------------------------------------------------------
Analysed by geographic area of destination
United Kingdom and Republic of Ireland 55,390 55,464
Rest of Europe 5,670 4,489
Africa 5,701 4,354
United States of America 1,965 2,772
Other 428 385
------------------------------------------------------------------------------
69,154 67,464
------------------------------------------------------------------------------
2. Turnover and segmental information continued
Before goodwill Goodwill Total 2003 As restated Goodwill As restated
amortisation amortisation #'000 Before goodwill amortisation Total 2002
and and amortisation and #'000
exceptional exceptional and exceptional
item 2003 item 2003 exceptional items 2002
#'000 #'000 items 2002 #'000
#'000
Profit/(loss)
before tax
---------------------------------------------------------------------------------------------------------
Analysed by
class of
business
Security 2,362 (1,336) 1,026 2,582 (1,211) 1,371
Communication 1,249 (7) 1,242 340 (90) 250
Time
Management 4,358 (24) 4,334 4,844 (1,099) 3,745
---------------------------------------------------------------------------------------------------------
7,969 (1,367) 6,602 7,766 (2,400) 5,366
---------------------------------------------------------------------------------------------------------
Analysed by
geographic area
of origin
United Kingdom and
Republic of Ireland 7,840 (707) 7,133 7,758 (2,123) 5,635
Rest of Europe 39 - 39 39 - 39
Africa (143) (20) (163) 396 (277) 119
United States of
America 233 (640) (407) (427) - (427)
---------------------------------------------------------------------------------------------------------
7,969 (1,367) 6,602 7,766 (2,400) 5,366
---------------------------------------------------------------------------------------------------------
3. Operating costs
Operating costs include a charge of #1.2m (2002: #0.9m) in respect of research
and development. A further #0.8m (2002: #0.9m) of product development
expenditure was capitalised as intangible fixed assets. Amortisation of #0.3m
(2002: #0.1m) was charged against capitalised development expenditure.
During the year, exceptional costs of #640,000 were incurred in connection with
the closure of Blick USA, Inc.
4. Interest
2003 As restated
#'000 2002
#'000
------------------------------------------------------------------------------
Interest receivable 113 82
Profit on foreign currency exchange contract - 257
------------------------------------------------------------------------------
Interest receivable and similar income 113 339
Interest payable (593) (736)
Net interest charges on defined benefit pension scheme (42) (40)
------------------------------------------------------------------------------
Net interest and other finance charges (522) (437)
------------------------------------------------------------------------------
5. Taxation
2003 2002
#'000 #'000
------------------------------------------------------------------------------
United Kingdom corporation tax
Current tax at 30% (2002: 30%) 2,250 2,331
Adjustments in respect of prior periods (747) (534)
------------------------------------------------------------------------------
1,503 1,797
------------------------------------------------------------------------------
Overseas tax
Current tax 70 52
Adjustments in respect of prior periods (16) -
------------------------------------------------------------------------------
54 52
------------------------------------------------------------------------------
Deferred tax
Current year (5) (106)
Adjustments in respect of prior periods (142) -
------------------------------------------------------------------------------
(147) (106)
------------------------------------------------------------------------------
1,410 1,743
------------------------------------------------------------------------------
No tax relief has been recognised on losses incurred by overseas subsidiaries.
6. Dividends
2003 2002
#'000 #'000
------------------------------------------------------------------------------
Interim dividend of 5p (2002: 5p) per share paid
5 September 2003 1,517 1,517
Final dividend proposed of 9.5p (2002: 9.5p) 2,882 2,882
------------------------------------------------------------------------------
4,399 4,399
------------------------------------------------------------------------------
The Directors propose a final dividend of 9.5p per share (2002: 9.5p per share)
payable on 7 April 2004 to shareholders on the register on 12 March 2004. The
Trustee of the Employees' Share Ownership Plan has waived all but 0.001p of
dividends on each of the 831,636 shares it currently owns.
7. Earnings per share
Earnings per share have been calculated using profits after tax divided by the
weighted average number of ordinary shares in issue during the period (excluding
shares held by the Employees' Share Ownership Plan) of 30,334,592 (2002:
30,334,592). At 30 September 2003 the issued share capital of the Company was
31,166,228 shares (2002: 31,166,228). The dilutive effect of share options was
in respect of 12,472 shares (2002:nil).
8. Net debt
Analysis of changes in net
debt 2003 Cash flows Non-cash As restated
#'000 #'000 Movements 2002
#'000 #'000
------------------------------------------------------------------------------
Cash at bank 895 (144) 201 838
Bank overdraft (2,103) 2,611 (29) (4,685)
------------------------------------------------------------------------------
Net overdraft (1,208) 2,467 172 (3,847)
Debt due within one year (12,229) (267) (229) (11,733)
Finance leases (66) 139 (36) (169)
------------------------------------------------------------------------------
Net debt (13,503) 2,339 (93) (15,749)
------------------------------------------------------------------------------
Debt/equity ratio 47% 59%
------------------------------------------------------------------------------
9. Reconciliation of net cash flow to movement in net debt
2003 2002
#'000 #'000
------------------------------------------------------------------------------
Increase in cash in the year 2,467 179
Cash (inflow)/outflow from movement in debt and lease
financing (128) 1,078
------------------------------------------------------------------------------
Decrease in net debt resulting from cash flows 2,339 1,257
Non-cash movements:
New finance leases (4) (43)
Issue of deferred consideration loan notes (229) (333)
Translation differences 140 (37)
------------------------------------------------------------------------------
Decrease in net debt in the year 2,246 844
Net debt at beginning of the year (15,749) (16,593)
------------------------------------------------------------------------------
Net debt at end of the year (13,503) (15,749)
------------------------------------------------------------------------------
10. Acquisitions
On 8 April 2003, Blick UK Limited purchased the entire share capital of Isgus
International Limited ("Isgus") and on 22 May 2003 Blick South Africa, purchased
the entire share capital of Impro System (Pty) Limited ("Impro").
Impro Isgus
#'000 #'000
------------------------------------------------------------------------------
Tangible fixed assets 14 25
Stock 35 48
Debtors 204 140
Cash - 30
Bank overdraft (38) -
Trade creditors (183) (52)
Corporation tax, other taxes and social security 15 (61)
Accruals and deferred income (20) (14)
------------------------------------------------------------------------------
Fair value of net assets acquired 27 116
Goodwill 48 339
------------------------------------------------------------------------------
Consideration including costs 75 455
Deferred consideration (52) -
------------------------------------------------------------------------------
Consideration paid at 30 September 2003 23 455
------------------------------------------------------------------------------
The trading results of these companies since their acquisition have not been
separately disclosed as they account for only 1% of the group results.
11. Statutory accounts
The figures and financial information for the year ended 30 September 2003 given
in this preliminary statement are extracted from the audited financial accounts
but do not constitute the full statutory accounts for that year. Those accounts
have not yet been delivered to the Registrar of Companies. This announcement was
approved by the Board on 9 December 2003.
Except where restated the comparative figures have been extracted from the
statutory accounts of Blick plc for the year ended 30 September 2002. These
accounts have been filed with the Registrar of Companies and contain an
unqualified report of the auditors.
12. The registered office of Blick plc is Blick House, Bramble Road, Swindon,
SN2 8ER. Copies of the Annual Report and Accounts will be available from the
Company Secretary at this address or from the UK Listing Authority, a Division
of the Financial Services Authority, 25 The North Colonnade, Canary Wharf,
London, E14 5HS.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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