Gibbon Group PLC - Final Results
July 01 1997 - 2:38AM
UK Regulatory
RNS No 7349h
GIBBON GROUP PLC
1st July 1997
UNAUDITED PRELIMINARY RESULTS ANNOUNCEMENT
YEAR ENDED 31ST MARCH 1997
CHAIRMAN'S REVIEW
I am pleased to report that we have had a considerably
improved second half, with full year pre-tax profits of
#1.93m of which #1.1m was earned in the second six months.
Whilst earnings per share are lower at 11.4p, this
reflects the performance in the first half of the year.
Sales at #32m are most encouraging, representing an
increase of 11.5%.
We propose paying a final dividend of 4.5p making a total
for the year of 7.0p (1996 7.0p).
My interim statement anticipated that the savings arising
from our restructuring would materialise in the second
half of the year, and indeed, with a reduction in running
costs of #500k per annum, and lower raw material costs,
our profit margins have been restored even though price
cutting continued throughout the industry. We reacted
rapidly to changing market conditions, minimising the
damage to our profits, protecting sales and at the same
time reducing stocks by 12%.
No significant customers have been lost during the year,
and we have recently gained a number of substantial
accounts. We have earned a reputation for supplying very
high quality products, and continue to give an excellent
delivery and technical service back up. Our expansion
into liquid inks by acquisition, and the introduction of a
graphic supplies division, have both proved very
successful, and we intend building strongly on their
earlier successes for them to become significant
contributors to future profits.
In our last annual report I said the year ahead would be
one of consolidation, which indeed it proved to be.
Whilst I cannot be sure how buoyant the printing industry
will be in the coming months, it is certainly busier than
this time last year. Recent investment has given us ample
capacity, and our products have never been better. We are
therefore in a strong position to increase our market
share, and that is our aim in the months ahead.
One of our non-executive directors, Peter Brown, retired
at the end of March, and we have no plans to replace him
at present. My thanks to all our staff for their loyalty
and understanding during probably our most difficult year
ever. Without their co-operation and continued
enthusiasm, the restructuring would have taken a lot
longer.
Michael Gibbon
Chairman
GIBBON GROUP PLC
UNAUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31ST
MARCH 1997
1997 1996 change
#'000 #'000 %
Turnover 32,336 28,993 +11.5
-------- --------
Operating profit 2,470 2,785 -11.3
Income from associated 39 29
undertakings
Other income 14 85
Interest payable (575) (471)
Employees' share scheme (20) (18)
-------- --------
1,928 2,410 -20.0
Taxation (775) (909)
-------- --------
Profit attributable to 1,153 1,501 -23.2
shareholders
Dividends
- ordinary (698) (690)
- preference (16) (35)
-------- --------
Retained profit 439 776
======== ========
Earnings per share 11.4p 15.6p -26.9
Dividends per share 7.0p 7.0p
======== ========
NOTES
1. The financial information given above does not
constitute statutory accounts within the meaning of
Section 240 of The Companies Act 1985 as amended (the
"Act"). The statutory accounts for the year ended 31
March 1996, on which the auditors have given an
unqualified opinion, have been filed with the Registrar of
Companies and contained no statement under sections 237(2)
or (3) of the Act.
2. Earnings per ordinary share have been calculated on a
weighted average of 9,964,763 shares in issue (1996:
9,390,255) on profit after tax and preference dividend,
i.e. #1,136,788 (1996: #1,466,455).
3. A final dividend of 4.5p (1996: 4.5p) per ordinary
share will be paid on 1st October 1997 to shareholders on
the register at 18th July 1997, making 7.0p for the full
year (1996: 7.0p).
END