RNS Number:4632N
Swan(John) & Sons PLC
11 July 2003
JOHN SWAN & SONS PLC
PRELIMINARY RESULTS FOR YEAR TO 30 APRIL 2003
STATEMENT BY THE CHAIRMAN
I am pleased to report to members that over the past year there has been a
definite resurgence in the popularity of the Auction System and this has been
clearly demonstrated in the increase in throughput at both our St Boswells and
Wooler sales. Our St Boswells weekly Prime Cattle sale is one of the largest in
Scotland and indeed one of the largest in the UK. In addition, the covered
accommodation we are building at St Boswells this autumn will provide a modern
environmentally friendly facility where not only stock will be suitably
accommodated but our customers and staff may conduct their business in relative
comfort, thus complimenting the up to date facilities we have at Wooler.
The past twelve months have demonstrated, without doubt, that the live auction
system has reinforced its position as the principal marketing method which
provides the competitive element for establishing the true value of the many
varied classes of livestock which are reared on an Island such as ours, with all
of it's geographical and climatical variances. I would urge members and
customers to continue or increase their support of your markets which strive to
provide a service which is both economic and efficient to buyers and sellers
alike.
Our diversification programme continues to make progress. The Estate and
Property Division has been especially active throughout the current year,
resulting in several agricultural and residential properties being sold from
Ayrshire to south Northumberland. Our company continues to be asked to conduct
sales of a variety of non-agricultural subjects and we are actively pursuing a
larger share of that type of business.
Our joint venture company, Braveheart Beef (Scotland) Ltd, has now completed
it's first full year's trading, which has been profitable and it is without
doubt, that the continuing success of our weekly prime cattle sale is partly due
to the participation of "Braveheart" as a customer, which has enabled the sale
to expand to the ultimate benefit of all our customers.
Shareholders will be well aware of the difficulties and costs encountered during
the year in resolving differences of opinion between shareholders regarding
on-going strategy. I do not propose to re-visit the debate, the outcome of which
was an overwhelming expression of support for continuing development of our
livestock auction business. Shareholders will, however, note the exceptional
operating cost of #289,000 incurred in respect of the requisitioned EGM of
November 2002. Without this expenditure, our trading loss for the year (another
year of transition from the effects of foot and mouth disease) would have been
#39,000, not the #328,000 reported, and close to the #34,000 reported for 2001/
02.
However, taking account of all the views expressed, the Board has decided to
implement a re-construction, which is intended to take effect on 1 August 2003.
The detail of the changes will be announced at that time but, in principle, the
trading business which you recognise as John Swan & Sons is to be hived down in
order to allow it the financial and strategic independence to develop. I shall
remain Chairman and there will be no change as far as customers and management
are concerned.
John Swan & Sons plc will retain ownership of the properties and responsibility
for realising assets not in use. The company will require only a small board on
which I will sit as a director. Whilst this realisation activity continues and
in view of the particular issues arising from our public company status, the plc
will be chaired by Alastair Ritchie, who is currently my deputy.
Shareholders will continue to receive consolidated accounts and, therefore, I
must emphasise that this change is designed to strengthen our auction mart
business, whilst ensuring that we do not have a repetition of the regrettable
events of this past year.
I am pleased to report that the sale of surplus assets is proceeding and,
despite our substantial extraordinary costs, this income allows us the decision
to pay a dividend of 10p per ordinary share. In addition, I hope to announce
further good news on the realisation front, when contracts have been exchanged.
I will, however, have nothing to report soon specifically about the land at
Gorgie, although shareholders should be aware that plans are advanced for
maximising our outcome. With this in mind, a property specialist will be
recruited for the plc board to oversee this process.
With regard to the pension fund surplus, it is frustrating to report that this
is not yet to hand, despite our applying pressure where appropriate. In the
existing climate of concern about pension schemes in general, we are of
necessity adopting a cautious approach, but shall continue to monitor the
situation and progress matters as quickly as possible.
May I take this opportunity to thank our staff, our customers and our
shareholders for their loyal support during what was a significantly difficult
year for your board.
DATE OF ANNUAL GENERAL MEETING
The Annual General Meeting will be held on 19 August 2003 in The Lodge Hotel,
Carfraemill, Lauder at 12.15 p.m.
TRANSFER BOOKS
Transfer books will be closed from 16 to 18 July 2003, both dates inclusive, for
the preparation of dividend warrants. Warrants for the proposed dividend, if
approved at the Annual General Meeting, will be posted on 19 August 2003 to
shareholders on the register at the close of business on 18 July 2003.
Geoghegan & Co
Secretaries
11 July 2003
JOHN SWAN & SONS PLC
PROFIT AND LOSS ACCOUNT
for the year ended 30 April 2003
2003 2002
Turnover : company and share 2,408,658 1,576,468
of joint venture
Less : share of joint 1,050,204 327,696
venture turnover
COMPANY TURNOVER #1,358,454 #1,248,772
Staff costs 761,829 727,114
Depreciation 89,604 63,708
Other operating charges 545,595 491,472
Exceptional operating 289,031 -
charge
1,686,059 1,282,294
COMPANY OPERATING LOSS (327,605) (33,522)
Share of operating profit 19,990 1,269
in joint venture
(307,615) (32,253)
Exceptional items 384,410 -
PROFIT/(LOSS) ON ORDINARY
ACTIVITIES BEFORE
INVESTMENT INCOME, INTEREST AND 76,795 (32,253)
TAXATION
Income from unlisted 182 922
investments
Interest receivable 22,716 41,777
Interest payable
Company (37,310) (315)
Joint venture (6,949) (1,658)
(44,259) (1,973)
(21,361) 40,726
PROFIT ON ORDINARY ACTIVITIES
BEFORE
TAXATION 55,434 8,473
Tax on profit on ordinary 23,702 (1,467)
activities
PROFIT FOR THE FINANCIAL 79,136 7,006
YEAR
Dividends 67,200 -
RETAINED PROFIT FOR
COMPANY AND
ITS SHARE OF JOINT # 11,936 # 7,006
VENTURE
EARNINGS PER SHARE
Ordinary shares of 25p 11.8p 1.0p
Deferred shares of 121/2p 5.9p 0.5p
The company and its joint venture have no recognised gains and losses other than
those included in the profit above and therefore no separate statement of total
recognised gains and losses has been presented.
All items dealt with in arriving at profit on ordinary activities before
taxation relate to continuing operations.
JOHN SWAN & SONS PLC
BALANCE SHEET
as at 30 April 2003
2003 2002
FIXED ASSETS
Tangible assets
Land and buildings 1,659,677 413,184
Motor vehicles 73,553 121,159
Plant 204,158 175,060
1,937,388 709,403
Investment
Investment in joint
venture :
Share of gross assets 193,695
Share of gross 177,807
liabilities
Share of net assets 15,888 4,611
1,953,276 714,014
CURRENT ASSETS
Stocks 101,133 22,500
Debtors - amounts falling 1,862,930 1,323,270
due within one year
Investments 2,743 3,030
Cash at bank and in hand 730,503 623,195
2,697,309 1,971,995
CREDITORS - amounts falling
due within one year:
Bank overdraft 2,053,525 116,345
Trade creditors 21,996 58,467
Current corporation tax - 12,005
Other taxes and social 25,480 33,358
security costs
Proposed dividend 67,200 -
Other creditors 3,726 7,509
Accruals 100,576 78,648
2,272,503 306,332
NET CURRENT ASSETS 424,806 1,665,663
TOTAL ASSETS LESS CURRENT 2,378,082 2,379,677
LIABILITIES
PROVISIONS FOR LIABILITIES
AND CHARGES (7,208) (20,739)
NET ASSETS #2,370,874 #2,358,938
CAPITAL AND RESERVES
Called up share capital 168,000 168,000
Revenue reserve 70,000 70,000
Profit and loss account 2,132,874 2,120,938
EQUITY SHAREHOLDERS' #2,370,874 #2,358,938
FUNDS
JOHN SWAN & SONS PLC
CASH FLOW STATEMENT
for the year ended 30 April 2003
Notes 2003 2002
Reconciliation of
operating loss to net cash
outflow from operating
activities
Company operating loss (327,605) (33,522)
Depreciation 89,604 63,708
Loss on sale of tangible 7,888 8,138
fixed assets
Increase in stocks (78,633) (3,381)
Increase in debtors (536,439) (163,628)
(Decrease)/Increase in (26,204) 38,031
creditors
Net cash outflow from # (871,389) # (90,654)
operating activities
Cash flows
Net cash outflow from (871,389) (90,654)
operating activities
Returns on investments and 1 (14,482) 42,384
servicing of finance
Decrease in investments 287 11,952
Taxation (3,221) (45,321)
Net capital payments 1 (941,067) (55,017)
Acquisitions 1 - (5,000)
(1,829,872) (141,656)
Equity dividend paid - (67,200)
Decrease in cash #(1,829,872) #(208,856)
Reconciliation of net cash
flow to movement in net
(debt)/Funds 2
Decrease in cash in the (1,829,872) (208,856)
year
Net funds at 30 April 506,850 715,706
2002
Net (debt)/ funds at 30 # (1,323,022) #506,850
JOHN SWAN & SONS PLC
NOTES TO THE ACCOUNTS
1 GROSS CASH FLOWS
Returns on investments and servicing of
finance
Interest received 22,828 42,699
Interest paid (37,310) (315)
# (14,482) # 42,384
Net capital (payments)/receipts
Payments to acquire tangible fixed (1,397,461) (81,522)
assets
Receipts from sales of tangible fixed 456,394 26,505
assets
# (941,067) # (55,017)
Acquisitions
Investment in joint venture # - # (5,000)
2 ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS
At At
30 April 2002 Cashflow 30 April 2003
Cash at bank and in hand 623,195 107,308 730,503
Bank overdraft (116,345) (1,937,180) (2,053,525)
# 506,850 #(1,829,872) #(1,323,022)
3. NOTE TO THE PRELIMINARY ANNOUNCEMENT
The abridged financial information set out above has been extracted without
material adjustment from financial statements approved by the Directors of
John Swan & Sons PLC on 11 July 2003, which received an unqualified audit
report by the independent auditors, which will be delivered to the Registrar
of Companies .
The financial information has been prepared on the basis of the accounting
policies set out in the most recently published set of financial statements.
The financial statements for the year ended 30 April 2002 have been filed
with the Registrar of Companies.
This information is provided by RNS
The company news service from the London Stock Exchange
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