financial news
Interim Report and Accounts September 2009
10 December 2009
Chairman’s statement
The Group continued its recovery from the depressed performance of 2008. Revenue for the six months ended 30 September 2009 rose to £23.1 million, a 9% increase on the previous year’s comparable period. Profit before tax was £473,000 compared with a prior year loss of £721,000 and representing a favourable earnings swing of £1.2 million. The cash position at £2.0 million continued to be positive and showed an improvement of £0.5 million on the March 2009 year-end figure.
The Group’s pension scheme liability was re-valued as at the period end and showed an increase in the deficit from £2.0 million as at 31 March 2009 to £3.6 million, reflecting unfavourable movements in AA-rated corporate bond yields. The profit and loss account recognises a pension charge of £40,000 compared with an income of £87,000 for the same period last year.
The attributable profits for the past two half-year periods provide solid cover for the Group’s resumption of dividend payments, which commenced this autumn. The board now intends, subject to the availability of distributable reserves and in the absence of unforeseen circumstances, to recommend a single dividend each year for approval by shareholders at the Annual General Meeting.
The trading environment for the rest of the year is unpredictable, particularly as regards the Christmas and New Year period, and the impact on consumer spending of higher rates of VAT and possible rises in unemployment. Input prices of steel wire and petrochemical foam have hardened over recent months and may continue to do so.
Airsprung is, however, well positioned in the marketplace, supplying a relatively stable and strong component of the retail sector. The directors look forward to the Group continuing its progress in the second half-year.
Stuart Lyons CBE
Chairman
10 December 2009
Consolidated income statement
Unaudited
|
Notes |
6 months to |
6 months to |
12 months to |
Revenue |
|
23,101 |
21,175 |
42,812 |
Operating costs |
|
(22,570) |
(21,935) |
(43,340) |
Operating profit/(loss) before financing |
|
531 |
(760) |
(528) |
Finance income |
3 |
– |
87 |
188 |
Finance costs |
3 |
(58) |
(48) |
(77) |
Profit/(loss) before tax |
|
473 |
(721) |
(417) |
Income tax |
|
(156) |
(78) |
(90) |
Profit/(loss) attributable to equity holders of the parent |
|
317 |
(799) |
(507) |
Basic earnings/(loss) per share |
4 |
1.3p |
(3.3p) |
(2.1p) |
Diluted earnings/(loss) per share |
4 |
1.2p |
(3.1p) |
(2.1p) |
Consolidated statement of comprehensive income
Unaudited
|
6 months to |
6 months to |
12 months to |
Profit/(loss) for the period |
317 |
(799) |
(507) |
Actuarial (loss)/gain on defined benefit pension scheme |
(1,760) |
933 |
362 |
Total comprehensive (expense)/income for the period attributable to equity shareholders |
(1,443) |
134 |
(145) |
All the above figures relate to continuing operations.
Consolidated balance sheet
Unaudited
|
|
30.09.08 |
|
Intangible assets |
253 |
– |
– |
Property, plant and equipment |
7,953 |
8,515 |
8,232 |
Deferred tax |
332 |
500 |
488 |
Total non-current assets |
8,538 |
9,015 |
8,720 |
Inventories |
3,033 |
3,699 |
3,157 |
Trade and other receivables |
7,229 |
6,272 |
6,736 |
Cash and cash equivalents |
1,997 |
1,093 |
1,469 |
Total current assets |
12,259 |
11,064 |
11,362 |
Total assets |
20,797 |
20,079 |
20,082 |
Called up share capital |
2,389 |
2,389 |
2,389 |
Share premium account |
2,348 |
2,348 |
2,348 |
Reserves |
3,066 |
2,409 |
3,065 |
Retained earnings |
2,058 |
4,435 |
3,501 |
Total equity |
9,861 |
11,581 |
11,303 |
Trade and other payables |
146 |
- |
- |
Financial liabilities |
282 |
123 |
435 |
Pension scheme deficit |
3,652 |
1,732 |
2,027 |
Total non-current liabilities |
4,080 |
1,855 |
2,462 |
Trade and other payables |
6,584 |
5,947 |
6,042 |
Financial liabilities |
272 |
41 |
275 |
Shares classed as financial liabilities |
– |
655 |
— |
Total current liabilities |
6,856 |
6,643 |
6,317 |
Total liabilities |
10,936 |
8,498 |
8,779 |
Total equity and liabilities |
20,797 |
20,079 |
20,082 |
Consolidated cash flow statement
Unaudited
|
6 months to |
6 months to |
12 months to |
Profit/(loss) before tax |
473 |
(721) |
(417) |
Adjustments for: |
|
|
|
Depreciation |
335 |
324 |
634 |
Amortisation |
17 |
- |
- |
Interest expense /(income) |
58 |
(39) |
(111) |
Contributions to defined benefit pension scheme |
(175) |
(175) |
(350) |
Charge for share based payments |
1 |
10 |
11 |
Operating cash flows before movements in working capital |
709 |
(601) |
(233) |
Decrease in inventories |
124 |
650 |
1,192 |
(Increase)/decrease in receivables |
(493) |
1,451 |
987 |
Increase/(decrease) in payables |
439 |
(1,923) |
(1,813) |
Cash generated from operations |
779 |
(423) |
133 |
Non equity dividends |
– |
(33) |
(56) |
Interest paid |
(18) |
(15) |
(36) |
Net cash from operating activities |
761 |
(471) |
41 |
Investing activities |
|
|
|
Acquisition |
(51) |
— |
— |
Purchase of property, plant and equipment |
(26) |
(85) |
(112) |
Net cash outflow from investing activities |
(77) |
(85) |
(112) |
Financing activities |
|
|
|
Increase in borrowing |
– |
— |
674 |
Redemption of Preference shares |
– |
— |
(655) |
Repayment of loan |
(132) |
— |
(112) |
Payment of finance lease liabilities |
(24) |
(23) |
(39) |
Net cash outflow from financing activities |
(156) |
(23) |
(132) |
Net increase/(decrease) in cash and cash equivalents |
528 |
(579) |
(203) |
Cash and cash equivalents at beginning of period |
1,469 |
1,672 |
1,672 |
Cash and cash equivalents at end of period |
1,997 |
1,093 |
1,469 |
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 2009.
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
2009, 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 Acquisition
On 17 April 2009 the Group acquired the business and certain assets of
Hush-a-Bye Limited for a consideration of £300,000 comprising an
initial payment of £30,000 and a deferred payment of £270,000.
The Group acquired plant and equipment with a fair value of £30,000
and other intangible assets valued at £170,000. The remaining
consideration is classified as goodwill.
3 Finance costs
|
|
6 months to |
6 months to |
12 months to |
Interest paid |
|
(18) |
(15) |
(36) |
Finance charge on shares classed as financial liabilities |
|
- |
(33) |
(41) |
Interest credit on pension scheme liability |
|
(40) |
87 |
188 |
|
|
(58) |
39 |
111 |
4 Earnings per share
The earnings per share are calculated on profit after tax of £317,000
(2008 loss: £799,000) and the weighted average number of ordinary
shares of 23,888,698 (2008: 23,888,698) in issue during the period. The
share options in existence during the six months ended 30 September 2009
have a dilutive effect. The diluted earnings per share are calculated
on profit after tax of £317,000 (2008 loss: £799,000) and the
weighted average number of ordinary shares in issue adjusted to assume
conversion of all dilutive potential ordinary shares which is 25,648,698
(2008: 25,482,031).