RNS Number:4122O
Mallett PLC
07 August 2003
MALLETT PLC
7 AUGUST 2003 - EMBAROGED FOR 7AM
MALLETT PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2003
CHAIRMAN'S STATEMENT
In our trading statement issued on 9th June 2003, we stated that we expected the
Company's profit before taxation for the six months ended 30th June 2003 to be
well below the figure reported for the equivalent period last year. In the
event, turnover for the first six months was down 27% from #11,223,000 to
#8,187,000 and profit before tax was down 60% from #2,766,000 to #1,106,000.
While we were able to maintain our trading margins, profit before tax fell
proportionately more than turnover as a result of the Company's fixed cost base.
Earnings per share were 5.61p compared with 13.80p for the equivalent period in
2002. The board has declared an unchanged interim dividend of 2.4p, which will
be paid on 15th September 2003 to shareholders on the register on 29th August
2003. Our net asset value per share has increased to #2.08, compared with #2.00
at 30th June 2003, but this does not take account of any possible increase in
the value of our property and other assets over their book value. The Company's
principal asset, Bourdon House, and the complicated leases relating thereto are
currently being reviewed by the Board, in conjunction with its advisers, in
order to assess how to maximise the benefit of this asset for the Company and
its shareholders.
Our new flagship store in New York opened at the end of April. The total
refurbishment cost was approximately #2.5 million and was completed without
incurring any debt. This operation has received a great welcome from our
clients and we are pleased with early trading. Business has been done both with
new and existing clients and, in particular, with clients not intending to visit
London. It is clear that the overall level of business transacted would not have
been achieved by the London shops alone. We also produced a catalogue of modern
items which is aimed at the US decorator market and is proving successful.
The first six months trading was disappointing and coincided with the outbreak
of SARS and the war in Iraq. This, together with the global economic unrest, led
to a reduction in the number of overseas visitors travelling to London. There
has, however, been an increase in visitors to our London shops recently and New
York is performing above expectations.
Despite some encouraging signs, we are anticipating a continuation of the
uncertain trading conditions during the second half of the year. However, prices
have been firm in the market in which we operate and the Board is confident in
the continuing global demand for the finest antiques.
GEORGE MAGAN
CHAIRMAN
7 August 2003
Enquiries:
Lanto Synge Chief Executive 020 7499 7411
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the half year ended 30th June 2003
Notes 2003 2002 2002
first half first half full year
#,000 #,000 #,000
TURNOVER 8,187 11,223 25,336
========== ========== =========
OPERATING PROFIT 1,095 2,749 5,143
Interest (net) 11 17 50
---------- ---------- ---------
PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION 1,106 2,766 5,193
Taxation 1 (332) (862) (1,609)
---------- ---------- ---------
PROFIT ATTRIBUTABLE TO SHAREHOLDERS 774 1,904 3,584
DIVIDENDS 3 (331) (331) (1,270)
---------- ---------- ---------
Retained profit for the period 443 1,573 2,314
========== ========== =========
Earnings per share 2 5.61p 13.80p 25.97p
---------- ---------- ---------
Dividends per share 3 2.4p 2.4p 9.2p
========== ========== =========
Statement of Total Gains and Losses
PROFIT FOR THE PERIOD 774 1,904 3,584
Exchange difference on consolidation (56) - (81)
---------- ---------- ---------
GAINS RECOGNISED IN THE PERIOD 718 1,904 3,503
========== ========== =========
In the opinion of the Directors there is no material difference between the
above profits for the half year to 30th June 2003 and the historical cost
profits for that period
CONSOLIDATED BALANCE SHEET
for the half year ended 30 June 2003
2003 2002 2002
first half first half full year
#,000 #,000 #,000
FIXED ASSETS
Tangible assets 6,004 3,837 4,790
Investments 105 - 46
----------- ---------- ---------
6,109 3,837 4,836
----------- ---------- ---------
CURRENT ASSETS
Stocks 22,566 23,728 22,366
Debtors 2,298 2,485 6,888
Bank balances and cash 1,592 3,145 2,496
----------- ---------- ---------
26,456 29,358 31,750
----------- ---------- ---------
CREDITORS - amounts falling
due within one year 3,849 5,539 8,257
----------- ---------- ---------
NET CURRENT ASSETS 22,607 23,819 23,493
----------- ---------- ---------
TOTAL ASSETS less current liabilities 28,716 27,656 28,329
PROVISION FOR LIABILITIES
AND CHARGES 68 55 68
----------- ---------- ---------
TOTAL NET ASSETS 28,648 27,601 28,261
=========== ========== =========
CAPITAL AND RESERVES
Called up share capital 690 690 690
Share premium account 5,168 5,168 5,168
Revaluation reserve 1,728 1,783 1,746
Profit and loss account 21,062 19,960 20,657
----------- ---------- ---------
28,648 27,601 28,261
----------- ---------- ---------
Net assets per share #2.08 #2.00 #2.05
=========== ========== =========
CONSOLIDATED CASH FLOW SUMMARY
for the half year ended 30th June 2003
2003 2002 2002
first half first half full year
#,000 #,000 #,000
Net cash inflow / (outflow) from operating activities 2,450 3,975 5,471
Returns on investment and
Servicing of finance 11 17 50
Taxation paid (987) (504) (1,264)
Capital expenditure and
Financial investment (1,440) (69) (1,122)
Equity dividends paid (938) (828) (1,159)
---------- ---------- ----------
(Decrease)/increase in cash for the period (904) 2,591 1,976
========== ========== ==========
RECONCILIATION OF MOVEMENTS IN
Shareholders' Funds
Profit for the period 774 1,904 3,584
Dividends payable (331) (331) (1,270)
Exchange difference on consolidation (56) - (81)
------- ------- --------
Net addition to shareholders' funds 387 1,573 2,233
Shareholders' funds at the beginning of the period 28,261 26,028 26,028
------- ------- --------
Shareholders' funds at the end of the period. 28,648 27,601 28,261
======= ======= ========
NOTES TO THE INTERIM REPORT
1. TAXATION
Taxation has been provided at an estimated effective rate of 30% (2002 -
30%).
2. EARNINGS PER SHARE
Earnings per share have been calculated on the profit on ordinary
activities after taxation and 13,800,060 shares in issue.
3. DIVIDENDS (NET)
The directors have declared an interim dividend of 2.4p (net) (2002 - 2.4p) per
ordinary share payable on 15th September 2003 to shareholders on the register on
29th August 2003. The dividend will absorb #331,000, leaving #443,000 to be
carried forward.
4. BASIS OF PREPARATION
The accounts for the six months ended 30th June 2003 have not been audited, nor
have the accounts for the equivalent period in 2002. They comply with relevant
accounting standards and have been prepared on a consistent basis using
accounting policies set out in the 2002 Annual Report. The figures for the
twelve months ended 31st December 2002 do not constitute the company's statutory
accounts for that period but have been extracted from the statutory accounts,
which have been filed with the Registrar of Companies. The auditors have
reported on those accounts and that report was not qualified and did not contain
a statement under Section 237(2) of the Companies Act 1985. This report is
being sent to shareholders and will be made available to members of the public
at the Company's Registered Office.
COMPANY INFORMATION
DIRECTORS George M. Magan* FCA Chairman *Non-executive Lanto M. Synge Group Chief Executive
The Hon. Peter H. Dixon FCA Secretary
Paula C. Hunt
Simon M. de Zoete*
Giles H. Hutchinson Smith
The Hon. Mrs Laura Weinstock*
M. Henry G. Neville
Thomas E. Woodham-Smith
REGISTERED OFFICE 141 New Bond Street
London W1S 2BS
COMPANY NUMBER 1838233
This information is provided by RNS
The company news service from the London Stock Exchange
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