financial news
AIRSPRUNG FURNITURE GROUP PLC
9 December 2008
Interim Report and Accounts September 2008
Chairman’s statement
Revenue for the six months ended 30 September 2008 was £21.2 million,
a 15% fall on the previous year’s comparable period, and approximately
level with the half-year sales for 2006. There was a loss on ordinary activities
before taxation of £721,000 (2007: profit £419,000). Group
cash balances ended at £1.1 million (2007: £2.7 million) having
fallen from a year end position of £1.7 million and reflecting the
trading performance.
The fall in profits arose as a result of the sharp downturn in trading
activity caused by the current economic crisis and exacerbated by unforeseen
increases in the price of raw materials and fuel.
Since the half-year end, the board is pleased to announce that it has taken
steps to redeem the 10% Preference shares with their full entitlement to
accrued interest. This was financed with a bank loan at 1.75% above base
rate.
The Group has signed a new licensing agreement in the USA with a major
bed manufacturer. Airsprung products will now be distributed through over
350 retail outlets mainly in the South and East, and will deliver valuable
royalty income from January 2009. The board intends to pursue other similar
initiatives.
The outlook for the rest of the year is unpredictable. The steps taken
by management to reduce costs and increase gross margins have begun to
produce benefits, and commodity prices have begun to show signs of greater
stability. Current trading is at about break even, which is broadly cash
generative. Progress in the first calendar quarter of 2009 will be influenced
by the strategies agreed by the major economic powers and the impact on
consumer spending of the measures announced in the November pre-Budget
Statement. Airsprung is in a position of some competitive advantage as
our major retail customers are among the strongest in the sector.
Stuart Lyons CBE
Chairman
9 December 2008
Unaudited
|
|
Notes
|
6
months to 30.09.08 £000
|
6
months to 30.09.07 £000
|
12
months to 31.03.08 £000
|
|
|
|
|
|
|
| Revenue
|
2
|
21,175
|
24,911
|
49,920
|
| Operating
costs
|
|
(21,935)
|
(24,454)
|
(48,400)
|
| Operating
(loss)/profit before financing
|
|
(760)
|
457
|
1,520
|
| Finance
income
|
3
|
87
|
4
|
18
|
| Finance
costs
|
3
|
(48)
|
(42)
|
(74)
|
| (Loss)/profit
before tax
|
|
(721)
|
419
|
1,464
|
| Income
tax
|
|
(78)
|
(20)
|
(42)
|
| (Loss)/profit
for the period attributable to equity holders of the parent |
|
(799)
|
399
|
1422
|
|
|
|
|
|
|
| Basic
(loss)/earnings per share
|
4
|
(3.3p)
|
1.7p
|
6.0p
|
| Diluted
(loss)/earnings per share
|
4
|
(3.1p)
|
1.6p
|
5.6p
|
Unaudited
|
30.09.08
£000
|
30.09.07
£000
|
31.03.08
£000
|
|
|
|
|
Property, plant and equipment
|
8,515
|
8,614
|
8,754
|
Deferred tax
|
500
|
600
|
578
|
Total non-current assets
|
9,015
|
9,214
|
9,332
|
Inventories
|
3,699
|
3,909
|
4,349
|
Trade and other receivables
|
6,272
|
7,879
|
7,723
|
Cash and cash equivalents
|
1,093
|
2,662
|
1,672
|
Total current assets
|
11,064
|
14,450
|
13,744
|
Total assets
|
20,079
|
23,664
|
23,076
|
Called up share capital
|
2,389
|
2,389
|
2,389
|
Share premium account
|
2,348
|
2,348
|
2,348
|
Reserves
|
2,409
|
2,390
|
2,399
|
Retained earnings
|
4,435
|
2,292
|
4,301
|
Total equity
|
11,581
|
9,419
|
11,437
|
Obligations under finance leases
|
123
|
15
|
145
|
Pension scheme deficit
|
1,732
|
4,379
|
2,927
|
Total non-current liabilities
|
1,855
|
4,394
|
3,072
|
Trade and other payables
|
5,988
|
9,196
|
7,912
|
Shares classed as financial liabilities
|
655
|
655
|
655
|
Total current liabilities
|
6,643
|
9,851
|
8,567
|
Total liabilities
|
8,498
|
14,245
|
11,639
|
Total equity and liabilities
|
20,079
|
23,664
|
23,076
|
Consolidated cash flow statement
Unaudited
|
6
months
to
30.09.08
£000
|
6
months
to
30.09.07
£000
|
12
months
to
31.03.08
£000
|
|
|
|
|
(Loss)/profit before tax
|
(721)
|
419
|
1,464
|
Adjustments for:
|
|
|
|
Depreciation
|
324
|
304
|
542
|
Interest (income)/expense
|
(39)
|
38
|
56
|
Contributions to defined benefit
pension scheme
|
(175)
|
-
|
(450)
|
Charge for share based payments
|
10
|
10
|
19
|
Operating cash flows before movements
in working capital
|
(601)
|
771
|
1,631
|
Decrease/(increase) in inventories
|
650
|
(402)
|
(842)
|
Decrease in receivables
|
1,451
|
37
|
193
|
(Decrease)/increase in payables
|
(1,923)
|
540
|
(599)
|
Cash generated from operations
|
(423)
|
946
|
383
|
Non equity dividends
|
(33)
|
-
|
(198)
|
Interest paid
|
(15)
|
(9)
|
(8)
|
Net cash from operating activities
|
(471)
|
937
|
177
|
Investing activities
|
|
|
|
Interest received
|
-
|
4
|
2
|
Purchase of property, plant and
equipment
|
(85)
|
(229)
|
(607)
|
Net cash outflow from investing
activities
|
(85)
|
(225)
|
(605)
|
Financing activities
|
|
|
|
Increase in borrowing
|
-
|
-
|
197
|
Payment of finance lease liabilities
|
(23)
|
(36)
|
(83)
|
Net cash (outflow)/inflow from
financing activities
|
(23)
|
(36)
|
114
|
Net (decrease)/increase in cash
and cash equivalents
|
(579)
|
676
|
(314)
|
Cash and cash equivalents at beginning
of period
|
1,672
|
1,986
|
1,986
|
Cash and cash equivalents at end
of period
|
1,093
|
2,662
|
1,672
|
Consolidated statement of recognised income and expense
Unaudited
|
6
months
to
30.09.08
£000
|
6
months
to
30.09.07
£000
|
12
months
to
31.03.08
£000
|
|
|
|
|
(Loss)/profit for the period
|
(799)
|
399
|
1,422
|
Actuarial gain on defined benefit
pension scheme
|
933
|
1,828
|
2,814
|
Total recognised income and expense
for the period
|
134
|
2,227
|
4,236
|
Notes to the financial statements
1. Basis of preparation
The financial information has been prepared using the accounting policies set out in the Annual Report and Accounts 2008.
The interim financial information has not
been audited and does not constitute statutory accounts within the meaning
of Section 240 of the Companies Act 1985. The Group’s statutory accounts for the year ended 31
March 2008, prepared in accordance with International Financial Reporting
Standards (IFRSs) as adopted by the European Union and also in accordance
with the IFRSs as issued by the International Accounts Standards Board,
have been delivered to the Registrar of Companies. The
report of the Auditors on these accounts was unqualified and did not
contain a statement under Section 237 (2) or (3) of the Companies Act
1985.
2. Geographical segments
The following table provides an analysis of the Group’s revenue
by geographical market, irrespective of the origin of the products:
|
|
6
months
to
30.09.08
£000
|
6
months
to
30.09.07
£000
|
12
months
to
31.03.08
£000
|
|
|
|
|
|
United Kingdom
|
|
21,034
|
24,723
|
49,335
|
Rest of the world
|
|
141
|
188
|
585
|
|
|
21,175
|
24,911
|
49,920
|
3. Finance costs
|
|
6
months
to
30.09.08
£000
|
6
months
to
30.09.07
£000
|
12
months
to
31.03.08
£000
|
|
|
|
|
|
Interest receivable
|
|
-
|
4
|
2
|
Interest paid
|
|
(15)
|
(9)
|
(8)
|
Finance charge on shares classed
as financial liabilities
|
|
(33)
|
(33)
|
(66)
|
Interest credit on pension scheme
liability
|
|
87
|
–
|
16
|
|
|
39
|
(38)
|
(56)
|
4. Earnings per share
The earnings per share are calculated on
loss after tax of £799,000 (2007 profit: £399,000) and the
weighted average number of ordinary shares of 23,888,698 (2007: 23,888,698)
in issue during the period. The
share options in existence during the six months ended 30 September 2008
have a dilutive effect. The
diluted earnings per share are calculated on loss after tax of £799,000
(2007 profit:
£399,000) and the weighted average number of ordinary shares in
issue adjusted to assume conversion of all dilutive potential ordinary
shares which is 25,482,031 (2007: 25,448,698).
For further information, please contact:
Tony Lisanti, Chief Executive of Airsprung Furniture Group PLC |
01225 754411 |
Nick Lovering, Director, Corporate Finance, Blue Oar Securities Plc |
0207 448 4478 |