RNS Number:4739K
Wensum Company PLC
29 April 2003
THE WENSUM COMPANY PLC
PRELIMINARY ANNOUNCMENT OF AUDITED RESULTS FOR YEAR ENDED
25 JANUARY, 2003
CHAIRMAN'S STATEMENT
Results
I am pleased to report that, despite difficult market conditions, profits before
tax increased marginally to #774,355 compared with the previous year's profit,
before tax and exceptional costs, of #770,791.
Last year we reported a loss, before tax, of #(679,209) after charging
exceptional costs of #1,450,000 relating to the Wensum Pension Scheme.
Turnover for the period under review increased to #13,651,293 (2002 -
#13,179,695).
Basic earnings per share increased to 7.05p, compared with a pre-exceptional
level of 6.70p the previous year.
We continue to have nil net gearing.
Cash balances at the year end stood at #1,257,402. This was lower than the
previous year end level of #2,045,443, although over #900,000 higher than at the
end of the first half.
Both our subsidiaries increased operating profits compared with the previous
year, although the full benefit of this was partially offset by a reduction in
net interest earned of #32,432.
Dividend
The board recommends a final dividend of 4.20p which, together with the interim
dividend of 2.00p, maintains the total for the year at 6.20p (2002 - 6.20p).
The final dividend will be paid on 27 June, 2003 to all shareholders on the
register on 16 May, 2003.
Share Buy Back
During January 2003 the company purchased 30,000 shares in the market for
cancellation. In February 2003 a further 20,000 shares were purchased in the
market for cancellation, giving a total of 50,000 shares cancelled to date.
Renewal will be sought at the next Annual General Meeting of authority to
purchase up to a further 10% of the company's issued share capital for
cancellation.
Operating Review
Wensum Corporate, our Gatwick based corporatewear operation, designs and manages
corporate clothing projects for many leading companies, principally in the
travel, retail and leisure sectors.
Wensum Corporate increased both sales and operating profits. This was a
creditable performance, particularly following the events of 11 September, 2001,
which had badly affected our airline based business.
Our management has worked hard to develop other promising markets. During the
year we delivered a substantial order for a major railway company and we have
also had success in winning new and additional contracts in the retail and
financial services sectors.
In addition we have completed the first phase of a project to provide a full
internet ordering process which will benefit existing customers and create new
opportunities.
Wensum Clothing, our Norwich based manufacturing operation, designs and
manufactures high quality tailored clothing for a growing number of prestigious
retailers.
Wensum Clothing faced tough trading conditions as some of our major retail
customers had to contend with a slowdown in suit purchases in their particular
markets. However, although sales fell slightly, careful management of expenses
and the higher gross margins on our successful personal tailoring business,
enabled the division to show an increase in operating profit.
During the year we acquired the upmarket Bladen country clothing brand,
originally part of Chester Barrie. This purchase brings potentially significant
benefits to Wensum, with exciting opportunities for growth from a wider customer
base, through the ownership of a nationally known brand associated with high
quality and informal lifestyles.
Whilst Wensum Corporate sources the majority of its products from overseas,
Wensum Clothing continues to manufacture in the United Kingdom. Having
carefully reviewed this strategy during the year, we remain committed to
manufacturing our men's tailored clothing in this country, where we can combine
our outstanding specification and quality standards with speed and flexibility
of delivery to our customers.
Chairman
As part of our strategic development I have decided to split my position of
chairman and chief executive in order to focus solely on the latter role.
I am pleased to announce that Stuart Lyons CBE, who has been a non-executive
director since November 2001, will become non-executive chairman with effect
from 1 May, 2003.
Stuart has had a distinguished career in industry, including the clothing
sector. I wish him well in his new role.
Management & Staff
I would like to pay tribute to, and thank, staff throughout the group who have
worked with determination in a difficult trading environment.
I would also like to thank previous members of the Wensum Pension Scheme, who
account for about one quarter of our workforce, for their understanding of the
decision to wind up the Scheme. This was a difficult and painful decision,
which the board took in the best interests of the group and of our employees as
a whole. We deeply appreciate the commitment and loyalty of all.
Outlook
The markets for both our manufacturing and corporate clothing operations are
likely to remain difficult, with continued pressure on volumes and margins.
Wensum Corporate is continuing to win specialist airlines and financial services
projects. The development of our systems will create opportunities to enhance
further our project management capabilities, vital for larger international
projects.
The Bladen brand has considerable long-term potential for the Wensum Clothing
operation, extending our customer base further to high quality specialist
retailers both in the United Kingdom and abroad.
We cannot be immune from the current economic uncertainties, and performance for
the coming year could fall below the level of the year under review. However, I
am pleased to report that group sales and profits for the first two months are
ahead of last year.
ANDREW HUGHES
Chairman
29 April, 2003
AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 25 JANUARY, 2003
2003 2002
#000 #000
Turnover 13,651 13,180
Cost of sales (8,416) (8,279)
Gross profit 5,235 4,901
Distribution costs (1,318) (1,234)
Administrative expenses (3,190) (2,976)
Exceptional operating charges - (1,450)
Operating profit/(loss) 727 (759)
Net interest received 47 80
Profit/(loss) on ordinary activities before tax 774 (679)
Tax on profit/(loss) on ordinary activities (221) 190
Profit/(loss) on ordinary activities after tax attributable to members of the
holding company 553 (489)
Dividends (485) (487)
Retained profit/(loss) for the year 68 (976)
Earnings/(loss) per share - basic 7.05p (6.23)p
- diluted 7.05p (6.23)p
- adjusted 7.05p 6.70p
Dividends per ordinary share
- interim 2.00p 2.00p
- proposed final 4.20p 4.20p
6.20p 6.20p
AUDITED GROUP BALANCE SHEET AT 25 JANUARY, 2003
2003 2002
#000 #000
Fixed assets
Intangible assets 103 -
Tangible assets 1,989 2,123
2,092 2,123
Current assets
Stock 2,853 2,278
Debtors 2,434 1,882
Cash at bank and in hand 1,257 2,046
6,544 6,206
Creditors: amounts falling due within one year 3,080 2,947
_____ _____
Net current assets 3,464 3,259
Total assets less current liabilities 5,556 5,382
Creditors: amounts falling due after more than one year 130 -
Provisions for liabilities and charges
Deferred tax - -
5,426 5,382
Capital and reserves
Called up share capital 391 393
Share premium account 180 200
Capital redemption reserve 2 -
Profit and loss account 4,853 4,789
5,426 5,382
AUDITED GROUP CASH FLOW STATEMENT FOR THE YEAR ENDED
25 JANUARY, 2003
2003 2002
#000 #000
Net cash inflow from operating activities 101 1,522
Returns on investment and servicing of finance:
Interest paid - -
Interest received 63 122
63 122
Taxation:
UK corporation tax paid (206) (414)
Capital expenditure and financial investment:
Payments to acquire intangible fixed assets (103) -
Payments to acquire tangible fixed assets (134) (311)
Receipts on disposal of fixed assets 2 10
(235) (301)
Equity dividends paid (487) (436)
Financing:
Proceeds from issue of shares - 11
Purchase of shares for cancellation (24) -
(24) 11
------ ------
(Decrease)/increase in cash (788) 504
2003 2002
#000 #000
Reconciliation of operating profit/(loss) to net cash inflow from
operating activities
Operating profit/(loss) 727 (759)
Depreciation 340 353
(Increase) in stocks (575) (38)
(Increase)/decrease in operating debtors and prepayments (421) 1,515
Increase in operating creditors and accruals 32 461
Profit on disposal of fixed assets (2) (10)
101 1,522
Analysis of changes in net funds
27 January, 2002 Cash Flow Other Changes 25 January, 2003
#000 #000 #000 #000
Cash 2,045 (788) - 1,257
Debt due within one year - - (35) (35)
Debt due after one year - - (82) (82)
Finance leases - - (72) (72)
2,045 (788) (189) 1,068
1. The earnings per share is calculated on profit for the year of #553,128
(2002 loss - #489,185) and on 7,849,478 (2002 - 7,852,231) ordinary shares,
being the weighted average number of shares in issue during the year. The
diluted earnings per share is based on profits for the year of #553,128 (2002
loss - #489,185) and on 7,850,191 (2002 - 7,853,583) ordinary shares. Adjusted
earnings per share is based on profit, before exceptional items, of #553,128
(2002 - #526,191) and on 7,849,478 (2002 - 7,852,231) ordinary shares, being the
weighted average number of shares in issue during the year.
2. A final dividend per ordinary share of 4.20p (2002 - 4.20p) has been
proposed totalling #327,764 (2002 - #329,864). The interim dividend of 2.00p
was paid to shareholders on 17 October, 2002, totalling #157,078 (2002 -
#157,078).
3. The Annual General Meeting will be held at The Wensum Corporate Company plc,
South Corner, Lowfield Heath, Gatwick on 19 June, 2003 commencing at 12 noon.
4. The above audited financial information does not amount to Statutory
Accounts within the meaning of Section 240 of the Companies Act 1985. The
Statutory Accounts for the period ended 26 January 2002, which include an
unqualified audit report, have been filed with the Registrar of Companies.
5. The Financial Statements have been prepared on a basis consistent with the
full year Financial Statements to 26 January, 2002. There have been no
changes in accounting policy.
6. The Annual Report and Financial Statements will be despatched to shareholders
on 7 May, 2003 and will be available from that date from the Company
Secretary at the company's registered office, 179 Northumberland Street,
Norwich, NR2 4EE.
END
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