RNS Number : 8784D
Airsprung Furniture Group PLC
10 December 2009
Airsprung Furniture Group PLC
Interim Report and Accounts September 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
For further information please contact:
Airsprung Furniture Group PLC
Tony Lisanti, Chief Executive 01225 779114
Smith & Williamson Corporate Finance Limited
Azhic Basirov 0207 131 4000
Barrie Newton 0207 131 4000
Consolidated income statement
Unaudited
6 months to 6 months to 12 months to
30.09.09 30.09.08 31.03.09
£000 £000 £000
Notes
Revenue 23,101 21,175 42,812
Operating costs (22,570) (21,935) (43,340)
Operating profit/(loss) before 531 (760) (528)
financing
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 317 (799) (507)
equity holders of the parent
Basic earnings/(loss) per 4 1.3p (3.3p) (2.1p)
share
Diluted earnings/(loss) per 4 1.2p (3.1p) (2.1p)
share
Consolidated statement of comprehensive income
Unaudited
6 months to 6 months to 12 months to
30.09.09 30.09.08 31.03.09
£000 £000 £000
Profit/(loss) for the period 317 (799) (507)
Actuarial (loss)/gain on defined (1,760) 933 362
benefit pension scheme
Total comprehensive (1,443) 134 (145)
(expense)/income for the period
attributable to equity shareholders
All the above figures relate to continuing operations.
Consolidated balance sheet
Unaudited
30.09.08 31.03.09
30.09.09 £000 £000
£000
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
30.09.09 30.09.08 31.03.09
£000 £000 £000
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 (175) (175) (350)
pension scheme
Charge for share based payments 1 10 11
Operating cash flows before 709 (601) (233)
movements in working capital
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 (26) (85) (112)
equipment
Net cash outflow from investing (77) (85) (112)
activities
Financing activities
Increase in borrowing - - 674
Redemption of Preference shares - - (655)
Repayment of loan (132) - (112)
Payment of finance lease (24) (23) (39)
liabilities
Net cash outflow from financing (156) (23) (132)
activities
Net increase/(decrease) in cash and 528 (579) (203)
cash equivalents
Cash and cash equivalents at 1,469 1,672 1,672
beginning of period
Cash and cash equivalents at end of 1,997 1,093 1,469
period
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
30.09.09 30.09.08 31.03.09
£000 £000 £000
Interest paid (18) (15) (36)
Finance charge on shares classed - (33) (41)
as financial liabilities
Interest credit on pension scheme (40) 87 188
liability
(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).
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