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| Date/Time | Headline | Source |
|---|---|---|
| 18-12-09 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 4069E
Coburg Group PLC
18 December 2009
18 December 2009
COBURG GROUP PLC
(the 'Company')
Unaudited Interim Results for the Six Months Ended 31 October 2009
Chairman's Statement
Sales recorded an increase from £1,719,000 to £1,964,000 during the first six months in what continued to be a challenging period. Much of the sales growth came from advances in own label coffee supply and there was a small delay in some price rises feeding through so that margins were down 2.8% on last year. Caffe Nero traded at its full volume level during the six months although, as previously communicated, this will reduce to zero by the end of the second half of the year. Our reorganisation of overheads has fed through to our results and we are delighted to report profit for the half year of £60,000, being £109,000 ahead of the first six months the previous year.
We continue to be cautious about future prospects generally due to the economy but are pleased with the level of new business opportunities we are pursuing as we are able to offer increased flexibility to our customers with the managed departure of Caffe Nero from the business. Overhead reductions have been necessary and these have all been successfully implemented. As part of these changes, we have had to say goodbye to some long-standing members of staff and we would like to thank them for all their hard work over many years.
Although the loss of Caffe Nero is likely to have an adverse effect on profitability in the short term, the Board remains confident of the medium and long term prospects for the business. We are encouraged by the rate of development of sales from existing customers and the level of interest from a number of potential new customers with whom we are in discussions. We have begun a programme to strengthen and accelerate our new business development activities which we believe will start to produce results in the new year.
The directors are also continuing to consider additional measures to improve profitability.
Konrad Legg
CHAIRMAN
consolidated Statement of comprehensive income
Period ended 31 OCTOber 2009
Six months to Six months to
31 October 31 October
2009 2008
(Unaudited) (Unaudited)
£'000 £'000
Revenue 1,964 1,719
Cost of sales (1,347) (1,130)
Gross profit 617 589
Distribution costs 137 170
Administration expenses 412 445
Group Operating Profit 68 (26)
Interest payable and similar charges (8) (23)
Profit/(Loss) before tax 60 (49)
Income tax expense - -
Profit/(Loss) for the financial period 60 (49)
Other comprehensive income: - -
Total comprehensive income for the period 60 (49)
Basic profit / (loss) per share 0.25p (0.21)p
Diluted profit / (loss) per share 0.25p (0.21)p
consolidated balance sheet
Period ended 31 OCTOber 2009
31 October 31 October 30 April
2009 2008 2009
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
ASSETS
Non-current assets
Goodwill 198 198 198
Intangible Assets - 6 -
Property, plant and equipment 330 412 358
528 616 556
Current assets
Inventories 190 247 211
Trade and other receivables 498 470 446
Cash and cash equivalents 4 - 2
692 717 659
TOTAL ASSETS 1,220 1,333 1,215
LIABILITIES
Current liabilities
Trade and other payables 742 681 741
Financial liabilities - borrowings
Short term borrowings 45 70 70
Interest bearing loans and 44 - 96
borrowings
831 751 907
Non-current liabilities
Trade and other payables - 71 6
Financial liabilities - borrowings
Interest bearing loans and 49 148 22
borrowings
49 219 28
Total liabilities 880 970 935
Net assets 340 363 280
EQUITY
Called up equity share capital 1,190 1,190 1,190
Share premium account 418 418 418
Other reserves 428 435 426
Retained earnings (1,696) (1,680) (1,754)
Total Equity 340 363 280
consolidated statement of cashflows
Period ended 31 OCTOber 2009
Six months to Six months to
31 October 31 October
2009 2008
(Unaudited) (Unaudited)
£'000 £'000
Cash flows from operating activities
Operating profit/ (loss) 68 (26)
Adjustments for:
Depreciation 38 49
Amortisation - 6
Profit on disposal of property, plant and (3) -
equipment
Increase in trade and other receivables (52) (58)
Increase/(Decrease) in trade and other (6) 35
payables
Decrease in inventories 21 8
Cash generated from operations 66 14
Interest paid (8) (23)
Net cash from operating activities 58 (9)
Cash flows from investing activities
Purchase of property, plant and equipment (10) (5)
Sale of property, plant and equipment 3 -
Net cash used in investing activities (7) (5)
Cash flows from financing activities
New borrowings - 16
Repayment of loans (14) -
(Payments)/Proceeds of finance lease (10) (32)
liabilities
Net cash used in financing activities (24) (16)
Net increase in cash and cash equivalents 27 (30)
Cash and cash equivalents at beginning of (68) (38)
period
Cash and cash equivalents at end of period (41) (68)
consolidated statement of changes in equity
Period ended 31 OCTOber 2009
Share Share Other Retained Total
capital premium reserves earnings equity
£'000 £'000 £'000 £'000 £'000
Balance at 1 May 2008
brought forward 1,190 418 435 (1,631) 412
Loss for the period - - - (49) (49)
Balance at
31 October 2008 1,190 418 435 (1,680) 363
Share Share Other Retained Total
capital premium reserves earnings equity
£ £ £ £ £
Balance at 31 October
2008 brought forward 1,190 418 435 (1,680) 363
Loss for the period - - - (74) (74)
Share options expense - - (9) - (9)
Balance at 30 April
2009 1,190 418 426 (1,754) 280
Balance at 1 May 2009
brought forward 1,190 418 426 (1,754) 280
Profit for the period - - - 60 60
Other reserves transfer - - 2 (2) -
Balance at
31 October 2009 1,190 418 428 (1,696) 340
NOTES TO THE interim FINANCIAL STATEMENTS
Period ended 31 OCTOber 2009
1 Basis of accounting
These interim financial statements for the period ended 31 October 2009 have been prepared in accordance with International Financial Reporting Standards (IFRS). The Group financial statements of Coburg Group plc consolidate the financial statements of Coburg Coffee Company Limited and C.K. Coffee Limited.
The information presented within these interim financial statements is in compliance with IAS 34 'Interim Financial Reporting'. This requires the use of certain accounting estimates and requires that management exercise judgement in the process of applying the Company's accounting policies. The areas involving a high degree of judgement or complexity, or areas where the assumptions and estimates are significant to the interim financial statements are disclosed below.
The financial information contained in this report, which has not been audited, does not constitute statutory accounts as defined by Section 434 of the Companies Act 2006 and on the same basis and using same accounting policies as used in the financial statements for the year ended 30 April 2009. The interim financial statements have not been audited.
The Company's statutory financial statements for the year ended 30 April 2009, prepared under IFRS have been filed with the Registrar of Companies. The auditors' report for the 2009 financial statements was unqualified and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.
The following International Financial Reporting Standards, amendments and interpretations have been released but are not effective for the current period. The adoption of these standards, amendments and interpretations is not expected to have a material impact on the Group's profit or equity: IFRS Standards and Interpretations issued but not yet effective:
IFRS Standards and Interpretations issued but not yet effective
Title Issued Effective Date
IFRS Improvements re IFRS 5 May-08 Accounting periods beginning on or after
(see detail below) 01/07/2009
IAS 27 Consolidated and Jan-08 Accounting periods beginning on or after
Separate Financial Statements 01/07/2009
IFRS 3 Business Combinations Jan-08 Acquisitions in Accounting periods
beginning on or after 01/07/2009
IAS 39 Financial Instruments: Jul-08 Accounting periods beginning on or after
Recognition and Measurement 01/07/2009
(Amendment) - Eligible Hedged
Items
IFRIC 17 Distributions of Nov-08 Accounting periods beginning on or after
Non-cash Assets to Owners 01/07/2009
IFRS 1 First- time Adoption of Nov-08 Accounting periods beginning on or after
International Financial 01/07/2009
Reporting Standards (revised)
IFRS Standards and Interpretations issued by IASB but not yet EU approved
Title Issued Effective Date
IFRIC 18 Transfers of Assets from Customers Jan-09 Accounting periods
beginning on or
after 01/07/2009
Group Cash-settled Share-based Payment Transactions June 2009 Accounting periods
beginning on or
after 01/01/2010
Amendments to IFRS 2 Group Cash-settled Share-based Jun-09 Accounting periods
Payment Transactions beginning on or
after 01/01/2010
Amendments to IFRS 1 Additional Exemptions for Jul-09 Accounting periods
First-time Adopters beginning on or
after 01/01/2010
Amendment to IAS 32 Classification of Rights Issues Oct-09 Accounting periods
beginning on or
after 01/02/2010
IFRIC 19 Extinguishing Financial Liabilities with Nov-09 Accounting periods
Equity Instruments beginning on or
after 01/07/2010
IFRIC 14 (Amendment) Prepayments of a minimum funding Nov-09 Accounting periods
requirement beginning on or
after 01/01/2011
Revised IAS 24 Related Party Disclosures (Issued 4 Nov-09 Accounting periods
November 2009) beginning on or
after 01/01/2011
IFRS 7 Improving Disclosures about Financial Mar-09 Accounting periods
Instruments beginning on or
after 01/01/2009
IFRS 9 Financial Instruments Nov-09 Accounting periods
beginning on or
after 01/01/2013
2. Critical accounting estimates
In order to prepare these consolidated financial statements in accordance with the accounting policies set out in note 1, management has used estimates and judgements to establish the amounts at which certain items are recorded. Critical accounting estimates and judgements are those that have the greatest impact on the financial statements and require the most difficult, subjective and complex judgements about matters that are inherently uncertain. Estimates are based on factors including historical experience and expectations of future events that management believe to be reasonable. However, given the judgemental nature of such estimates, actual results could be different from the assumptions used. The critical accounting policies are set out below.
Impairment of goodwill
An impairment of goodwill has the potential to significantly impact upon the group's income for the year. In order to determine whether impairments are required the Group estimates the recoverable amount of the goodwill. This calculation is usually based on projecting future cash flows over a rolling nineteen-year period. A discount factor, based upon the Group's weighted average cost of capital is applied to obtain a current value ('value in use'). The 'fair value less costs to sell' of an asset is used if this results in an amount in excess of 'value in use'.
Estimated future cash flows for impairment calculations are based on management's expectations of future volumes and margins based on plans and best estimates of the productivity of the assets in their current condition. Future cash flows therefore exclude benefits from major expansion projects requiring future capital expenditure where that expenditure has not been approved at the balance sheet date.
Future cash flows are discounted using a discount rate based on the Group's weighted average cost of capital, adjusted if appropriate for circumstances specific to the asset being tested. The weighted average cost of capital is impacted by estimates of interest rates, equity returns and market related risks. The Group's weighted average cost of capital is reviewed on an annual basis.
Derivative financial instruments
The Group has applied the requirements of IFRS 2 'Share-based payment', as amended by IFRIC Interpretation 2 - IFRS 2 Group and Treasury share transactions.
The Group issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair value (excluding the effect of non market-based vesting conditions) at the date of grant. Where services are from employees fair value is determined indirectly by reference to the fair value of the instrument granted. The fair value determined at the grant date of the equity settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated on vesting.
Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital
Fair value is based upon a Trinomial Valuation model.
3. EARNINGS per share
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share is calculated using the weighted average number of shares adjusted to assume the conversion of all dilutive potential ordinary shares.
Six months to 31 October 2009 Six months to 31 October 2008
Earnings (£000) Weighted average no. Amount per share Earnings (£000) Weighted average no. Amount per share
of shares (pence) of shares (pence)
Losses attributable
to ordinary
shareholders 60 23,790,914 0.25 (49) 23,790,914 (0.21)
Dilutive effect
of options - - - - - -
Diluted losses
per share 60 23,790,914 0.25 (49) 23,790,914 (0.21)
All share options were cancelled in the year to 31 March 2009 and therefore there were no dilutive securities.
For further enquiries please contact:
Chris Birkle Coburg Group PLC +44 (0)20 8317 6410
Colin Aaronson Grant Thornton Corporate Finance +44 (0)20 7383 5100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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| 30-10-09 | RNS |
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RNS Number : 6884B Coburg Group PLC 30 October 2009 Coburg Group plc ("the Company") Result of AGM The Company announces that at its Annual General Meeting held earlier today, all resolutions were duly passed. For further enquiries please contact:
Colin Aaronson Grant Thornton Corporate Finance +44 (0)20 7383 5100 This information is provided by RNS The company news service from the London Stock Exchange END
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| 07-10-09 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 3338A
Coburg Group PLC
07 October 2009
Coburg Group plc
Results for the year ended 30 April 2009
Chairman's Statement
Overview
Whilst it was gratifying that sales for the year were only slightly down at £3,544,000 in a difficult economic environment and that the Loss before tax was slightly reduced at £123,000, we were nonetheless very disappointed to have to report another year of trading losses, given the hopes we had for a positive result.
During the year we continued with our programme of cost reductions and we were on target to produce a breakeven position for the year ending April 2009. However, during the second half of the year there was a dramatic change in the sterling dollar exchange rate which had the effect of substantially increasing the cost of green coffee purchases.
The inevitable delay in being able to pass some of these cost increases on to our customers contributed to the loss reported above. While this was a disappointing loss, it was an improvement of £10,000 over the previous year and hides some real fundamental improvements in the underlying profitability of the Group. Since the end of the financial year, the margins have recovered after price increases were successfully passed through to customers and we look forward to reporting first half profits in this new financial year.
Recently, in a trading update we reported that Caffe Nero our largest customer had taken the decision to do its roasting 'in house' and that this would have a material adverse effect on profitability of the Company particularly in the next financial year. The financial effect on the current year will be mitigated by the transitional arrangements that we have entered into with Caffe Nero to ensure a smooth transfer of their business. Gerry Ford, CEO and Chairman of Caffe Nero, said recently: "Coburg has successfully maintained the high quality of coffee that we demand with an unblemished record of on-time delivery and we would like to thank them for all their work since the inception of Caffe Nero. We wish Coburg every success for the future".
While we are disappointed by the loss of an important customer your board remains confident about the long term prospects of the business as it concentrates on supplying outstanding coffee to a wide spread of catering and retail industry outlets. In view of the fact that Caffe Nero's departure takes place relatively late in the financial year, and with the Company being ever more conscious of the need to control costs, we expect to be able to report an improved performance in the current financial year.
Chris Birkle the Managing Director of the Company since 2005 is relinquishing his executive responsibilities. Chris has done a great deal to improve our factory processes, internal systems and, generally, to raise the profile of the business in the industry. He has also been responsible for the restructuring of the group into two operating companies. Coburg Coffee Company Ltd specialises as a contract coffee roaster. The other, Caf?'Or Coffee Services, acts as a coffee distributor supplying our well established coffee brands. I am delighted to report that Chris has agreed to remain on the board as a non-executive director of the Company. He has also agreed to provide consultancy services to the group as appropriate.
I will become part-time Executive Chairman of the Company and am pleased to report that Bryan Stockley, currently our Production Manager, has accepted a new role as General Manager of the Company and will be responsible for all day to day operations. With previous experience in general management at Ashbys, I am confident that Bryan will bring all the necessary skills to the role.
In order to mitigate the financial effects of the changes in our business profile it has been necessary to make a number of long serving factory employees redundant. This is very much regretted and I would like to thank them for all their hard work and support over the years.
There is no doubt that we shall have a very difficult time during the next year. However I believe that there will be increasing opportunities for consolidation in our sector. The board continues to look at a number of acquisition and co-operation opportunities.
Konrad P Legg
Chairman
Consolidated Income Statement
FOR THE YEAR ENDED 30 APRIL 2009
2009 2008
£000 £000
Revenue 3,544 3,586
Cost of sales (2,514) (2,289)
Gross profit 1,030 1,297
Distribution costs (308) (494)
Administrative expenses (806) (910)
Group operating loss (84) (107)
Loss on sale of property, plant and equipment - (5)
(84) (112)
Finance costs (39) (21)
Loss before tax (123) (133)
Tax - -
Loss for the year (123) (133)
Loss per share expressed in pence per share:
Basic (0.52) (0.56)
Diluted (0.52) (0.56)
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 30 APRIL 2009
Issued Share
share premium Other Retained
capital account reserves earnings Total
£000 £000 £000 £000 £000
Balance as at 1 May 2007 1,190 418 437 (1,498) 547
Loss for the year - - - (133) (133)
Decrease in share option reserve - - (2) - (2)
Balance as at 30 April 2008 1,190 418 435 (1,631) 412
Balance as at 1 May 2008 1,190 418 435 (1,631) 412
Loss for the year - - - (123) (123)
Decrease in share option reserve - - (9) - (9)
Balance as at 30 April 2009 1,190 418 426 (1,754) 280
Consolidated Balance Sheet
AS AT 30 APRIL 2009
2009 2008
£000 £000
Assets
Non-current assets
Goodwill 198 198
Intangible assets - 12
Property, plant and equipment 358 465
556 675
Current assets
Inventories 211 255
Trade and other receivables 446 413
Cash and cash equivalents 2 2
659 670
Liabilities
Current liabilities
Trade and other payables 741 640
Financial liabilities - borrowings
Bank overdrafts 70 40
Interest bearing loans and borrowings 96 125
907 805
Net current liabilities (248) (135)
Non-current liabilities
Trade and other payables 6 84
Financial liabilities - borrowings
Interest bearing loans and borrowings 22 44
28 128
Net assets 280 412
Shareholders' equity
Called up share capital 1,190 1,190
Share premium 418 418
Other reserves 426 435
Retained earnings (1,754) (1,631)
Total equity 280 412
Consolidated Cash Flow Statement
FOR THE YEAR ENDED 30 APRIL 2009
2009 2008
£000 £000
Cash flows from operating activities
Cash generated from operations 66 165
Interest paid (27) (9)
Interest element of hire purchase payments paid (12) (12)
Net cash from operating activities 27 144
Cash flows from investing activities
Purchase of shares in subsidiary undertaking - (9)
Purchase of tangible fixed assets (6) (48)
Net cash from investing activities (6) (57)
Cash flows from financing activities
Loans advanced in the year 29 -
Capital repayments in year (80) (33)
Net cash from financing activities (51) (33)
Increase/(decrease) in cash and cash equivalents (30) 54
Cash and cash equivalents at beginning of year (38) (92)
Cash and cash equivalents at end of year (68) (38)
Notes
1. Basis of preparation
These consolidated financial statements have been presented in
accordance with International Financial Reporting Standards (IFRS) as
adopted by the European Union and interpretations issued by the
International Financial Reporting Interpretations Committee (IFRIC) and
have been prepared in accordance with AIM rules and the Companies Act
2006, as applicable to companies reporting under IFRS.
These consolidated financial statements have been prepared in
accordance with the accounting policies set out in the annual report
and accounts for the year ended 30 April 2009, and under the historical
cost convention, except where modified by the revaluation of certain
financial instruments and commodities.
The Group incurred a net loss of £123,000 during the year ended 30
April 2009 and at that date the Group's balance sheet showed a retained
loss of £1,754,000.
The Group's financial projections indicate that the Group requires
additional cash resources to continue to meet its liabilities as they
fall due over the next 12 following the loss of a key customer as
disclosed in the Report of Directors and note 25 in the annual report
and accounts for the year ended 30 April 2009.
In order to ensure the company can continue as a going concern the
directors are:
* Discussing its banking facilities with its bankers; and
* Have negotiated a supply agreement with Caffe Nero to supply green
coffee which would provide additional working capital.
The Group's major shareholder has also indicated his willingness to
provide additional funding via a loan from his company, Tudeley
Holdings Limited, to bridge the forecast shortfall in funding should it
be required.
2. The consolidated financial statements incorporate the financial
statements of the company and all principal subsidiaries for the year
ended 30 April 2009. The results of any subsidiaries acquired during
the year are included in the statements from the effective date of
acquisition.
3. Loss per share for the year ended 30 April 2009 is calculated on the
consolidated loss on ordinary activities after tax of £123,000, divided
by 23,790,914, being the weighted average number of ordinary shares in
issue during the year.
4. The financial information set out in this announcement does not
constitute the Company's statutory accounts for the year ended 30th
April 2009 or 30th April 2008, but is derived from those accounts.
Statutory accounts for the year ended 30th April 2008 have been
delivered to the Registrar of Companies and those for the year ended
30th April 2009 will be delivered following the Company's annual
general meeting. The auditors have reported on those accounts; their
reports were unqualified and did not contain statements under S237 (2)
or (3) Companies Act 1985.
5. Copies of the annual report and accounts will be posted to shareholders
today and will be made available to the public on the Company's
website, www.coburg-group.com and at Unit 3, Harrington Way, Warspite
Road, Woolwich, London SE18 5NU. The Annual General Meeting of the
Company is due to take place at 11.00 a.m. on 30th October 2009 at the
same address, at which resolutions will be proposed as set out in the
copy of the notice of AGM appended below.
Notice of AGM
Annual General Meeting
The directors advise that this document contains the formal Notice of the Annual General Meeting of Coburg Group Plc which you will find on page 48. The Notice convenes the Annual General Meeting of the company to be held at Unit 3 Harrington Way, Warspite Road, Woolwich, London. SE18 5NU for 11.00 a.m. on 30 October 2009 at which the following resolutions will be proposed:
Ordinary Business
* To receive the company's financial statements for the year ended 30 April 2009 together with the directors' report, the directors' remuneration report and the auditors' report on those accounts.
* To re-appoint Konrad Legg as a director who retires by rotation.
* To re-appoint Horwath Clark Whitehill LLP as auditors of the company to hold office from the conclusion of the meeting to the conclusion of the next meeting at which accounts are laid before the company at a remuneration to be determined by the directors.
Special Business
To consider and if thought fit pass the following resolutions as Ordinary Resolutions:
4. To approve the directors* remuneration report for the financial year ended 30 April 2009.
5. THAT in substitution for all existing authorities to the extent unused the directors be and they are generally and unconditionally authorised in accordance with Section 551 of the Companies Act 2006 (*the Act*) to exercise all the powers of the Company to allot relevant securities (within the meaning of that section):
* up to an aggregate nominal amount of £250,000 for cash; and
* up to an aggregate nominal amount of £600,000 where such securities form the whole or part of the consideration for the acquisition of any other company;
provided this authority shall expire at the conclusion of the next Annual General Meeting of the Company after the passing of this resolution save that the directors may allot relevant securities pursuant to an offer or agreement made by the Company on or before that date as if such authority had not expired.
To consider and if thought fit pass the following resolutions as a Special Resolution:
6. THAT in substitution for all existing authorities to the extent unused, and subject to the passing of the resolution 5 the directors be generally empowered pursuant to Section 551 of the Act to allot equity securities (within the meaning of Section 560 of the Act) pursuant to the authority conferred by resolution 5 as if Section 561 of the Act did not apply to any such allotment provided that this power shall be limited to the allotment of equity securities:
(i)in connection with a rights issue or other pre-emptive share issue in favour of ordinary shareholders where the securities respectively attributable to the interest of all ordinary shareholders are proportionate (as nearly may be) to the respective number of ordinary shares held by them but subject to such exclusions or arrangements as the directors may deem necessary or expedient to deal with fractional entitlements arising or any legal or practical problems under the laws of any overseas territory or the requirements of any regulatory body or exchange or otherwise; and
(ii) otherwise than pursuant to sub-paragraph (a) above for cash up to an aggregate nominal value of £250,000;
provided this authority shall expire at the conclusion of the next Annual General Meeting of the Company after the passing of this resolution save that the directors may allot relevant securities pursuant to an offer or agreement made by the Company on or before that date as if such authority had not expired.
For further enquiries please contact:
Chris Birkle Coburg Group PLC +44 (0)20 8317 6410
Colin Aaronson Grant Thornton Corporate Finance +44 (0)20 7383 5100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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| 07-10-09 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 3338A
Coburg Group PLC
07 October 2009
Coburg Group plc
Results for the year ended 30 April 2009
Chairman's Statement
Overview
Whilst it was gratifying that sales for the year were only slightly down at £3,544,000 in a difficult economic environment and that the Loss before tax was slightly reduced at £123,000, we were nonetheless very disappointed to have to report another year of trading losses, given the hopes we had for a positive result.
During the year we continued with our programme of cost reductions and we were on target to produce a breakeven position for the year ending April 2009. However, during the second half of the year there was a dramatic change in the sterling dollar exchange rate which had the effect of substantially increasing the cost of green coffee purchases.
The inevitable delay in being able to pass some of these cost increases on to our customers contributed to the loss reported above. While this was a disappointing loss, it was an improvement of £10,000 over the previous year and hides some real fundamental improvements in the underlying profitability of the Group. Since the end of the financial year, the margins have recovered after price increases were successfully passed through to customers and we look forward to reporting first half profits in this new financial year.
Recently, in a trading update we reported that Caffe Nero our largest customer had taken the decision to do its roasting 'in house' and that this would have a material adverse effect on profitability of the Company particularly in the next financial year. The financial effect on the current year will be mitigated by the transitional arrangements that we have entered into with Caffe Nero to ensure a smooth transfer of their business. Gerry Ford, CEO and Chairman of Caffe Nero, said recently: "Coburg has successfully maintained the high quality of coffee that we demand with an unblemished record of on-time delivery and we would like to thank them for all their work since the inception of Caffe Nero. We wish Coburg every success for the future".
While we are disappointed by the loss of an important customer your board remains confident about the long term prospects of the business as it concentrates on supplying outstanding coffee to a wide spread of catering and retail industry outlets. In view of the fact that Caffe Nero's departure takes place relatively late in the financial year, and with the Company being ever more conscious of the need to control costs, we expect to be able to report an improved performance in the current financial year.
Chris Birkle the Managing Director of the Company since 2005 is relinquishing his executive responsibilities. Chris has done a great deal to improve our factory processes, internal systems and, generally, to raise the profile of the business in the industry. He has also been responsible for the restructuring of the group into two operating companies. Coburg Coffee Company Ltd specialises as a contract coffee roaster. The other, Caf?'Or Coffee Services, acts as a coffee distributor supplying our well established coffee brands. I am delighted to report that Chris has agreed to remain on the board as a non-executive director of the Company. He has also agreed to provide consultancy services to the group as appropriate.
I will become part-time Executive Chairman of the Company and am pleased to report that Bryan Stockley, currently our Production Manager, has accepted a new role as General Manager of the Company and will be responsible for all day to day operations. With previous experience in general management at Ashbys, I am confident that Bryan will bring all the necessary skills to the role.
In order to mitigate the financial effects of the changes in our business profile it has been necessary to make a number of long serving factory employees redundant. This is very much regretted and I would like to thank them for all their hard work and support over the years.
There is no doubt that we shall have a very difficult time during the next year. However I believe that there will be increasing opportunities for consolidation in our sector. The board continues to look at a number of acquisition and co-operation opportunities.
Konrad P Legg
Chairman
Consolidated Income Statement
FOR THE YEAR ENDED 30 APRIL 2009
2009 2008
£000 £000
Revenue 3,544 3,586
Cost of sales (2,514) (2,289)
Gross profit 1,030 1,297
Distribution costs (308) (494)
Administrative expenses (806) (910)
Group operating loss (84) (107)
Loss on sale of property, plant and equipment - (5)
(84) (112)
Finance costs (39) (21)
Loss before tax (123) (133)
Tax - -
Loss for the year (123) (133)
Loss per share expressed in pence per share:
Basic (0.52) (0.56)
Diluted (0.52) (0.56)
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 30 APRIL 2009
Issued Share
share premium Other Retained
capital account reserves earnings Total
£000 £000 £000 £000 £000
Balance as at 1 May 2007 1,190 418 437 (1,498) 547
Loss for the year - - - (133) (133)
Decrease in share option reserve - - (2) - (2)
Balance as at 30 April 2008 1,190 418 435 (1,631) 412
Balance as at 1 May 2008 1,190 418 435 (1,631) 412
Loss for the year - - - (123) (123)
Decrease in share option reserve - - (9) - (9)
Balance as at 30 April 2009 1,190 418 426 (1,754) 280
Consolidated Balance Sheet
AS AT 30 APRIL 2009
2009 2008
£000 £000
Assets
Non-current assets
Goodwill 198 198
Intangible assets - 12
Property, plant and equipment 358 465
556 675
Current assets
Inventories 211 255
Trade and other receivables 446 413
Cash and cash equivalents 2 2
659 670
Liabilities
Current liabilities
Trade and other payables 741 640
Financial liabilities - borrowings
Bank overdrafts 70 40
Interest bearing loans and borrowings 96 125
907 805
Net current liabilities (248) (135)
Non-current liabilities
Trade and other payables 6 84
Financial liabilities - borrowings
Interest bearing loans and borrowings 22 44
28 128
Net assets 280 412
Shareholders' equity
Called up share capital 1,190 1,190
Share premium 418 418
Other reserves 426 435
Retained earnings (1,754) (1,631)
Total equity 280 412
Consolidated Cash Flow Statement
FOR THE YEAR ENDED 30 APRIL 2009
2009 2008
£000 £000
Cash flows from operating activities
Cash generated from operations 66 165
Interest paid (27) (9)
Interest element of hire purchase payments paid (12) (12)
Net cash from operating activities 27 144
Cash flows from investing activities
Purchase of shares in subsidiary undertaking - (9)
Purchase of tangible fixed assets (6) (48)
Net cash from investing activities (6) (57)
Cash flows from financing activities
Loans advanced in the year 29 -
Capital repayments in year (80) (33)
Net cash from financing activities (51) (33)
Increase/(decrease) in cash and cash equivalents (30) 54
Cash and cash equivalents at beginning of year (38) (92)
Cash and cash equivalents at end of year (68) (38)
Notes
1. Basis of preparation
These consolidated financial statements have been presented in
accordance with International Financial Reporting Standards (IFRS) as
adopted by the European Union and interpretations issued by the
International Financial Reporting Interpretations Committee (IFRIC) and
have been prepared in accordance with AIM rules and the Companies Act
2006, as applicable to companies reporting under IFRS.
These consolidated financial statements have been prepared in
accordance with the accounting policies set out in the annual report
and accounts for the year ended 30 April 2009, and under the historical
cost convention, except where modified by the revaluation of certain
financial instruments and commodities.
The Group incurred a net loss of £123,000 during the year ended 30
April 2009 and at that date the Group's balance sheet showed a retained
loss of £1,754,000.
The Group's financial projections indicate that the Group requires
additional cash resources to continue to meet its liabilities a
2. The consolidated financial statements incorporate the financial
statements of the company and all principal subsidiaries for the year
ended 30 April 2009. The results of any subsidiaries acquired during
the year are included in the statements from the effective date of
acquisition.
3. Loss per share for the year ended 30 April 2009 is calculated on the
consolidated loss on ordinary activities after tax of £123,000, divided
by 23,790,914, being the weighted average number of ordinary shares in
issue during the year.
4. The financial information set out in this announcement does not
constitute the Company's statutory accounts for the year ended 30th
April 2009 or 30th April 2008, but is derived from those accounts.
Statutory accounts for the year ended 30th April 2008 have been
delivered to the Registrar of Companies and those for the year ended
30th April 2009 will be delivered following the Company's annual
general meeting. The auditors have reported on those accounts; their
reports were unqualified and did not contain statements under S237 (2)
or (3) Companies Act 1985.
5. Copies of the annual report and accounts will be posted to shareholders
today and will be made available to the public on the Company's
website, www.coburg-group.com and at Unit 3, Harrington Way, Warspite
Road, Woolwich, London SE18 5NU. The Annual General Meeting of the
Company is due to take place at 11.00 a.m. on 30th October 2009 at the
same address, at which resolutions will be proposed as set out in the
copy of the notice of AGM appended below.
Notice of AGM
Annual General Meeting
The directors advise that this document contains the formal Notice of the Annual General Meeting of Coburg Group Plc which you will find on page 48. The Notice convenes the Annual General Meeting of the company to be held at Unit 3 Harrington Way, Warspite Road, Woolwich, London. SE18 5NU for 11.00 a.m. on 30 October 2009 at which the following resolutions will be proposed:
Ordinary Business
* To receive the company's financial statements for the year ended 30 April 2009 together with the directors' report, the directors' remuneration report and the auditors' report on those accounts.
* To re-appoint Konrad Legg as a director who retires by rotation.
* To re-appoint Horwath Clark Whitehill LLP as auditors of the company to hold office from the conclusion of the meeting to the conclusion of the next meeting at which accounts are laid before the company at a remuneration to be determined by the directors.
Special Business
To consider and if thought fit pass the following resolutions as Ordinary Resolutions:
4. To approve the directors* remuneration report for the financial year ended 30 April 2009.
5. THAT in substitution for all existing authorities to the extent unused the directors be and they are generally and unconditionally authorised in accordance with Section 551 of the Companies Act 2006 (*the Act*) to exercise all the powers of the Company to allot relevant securities (within the meaning of that section):
* up to an aggregate nominal amount of £250,000 for cash; and
* up to an aggregate nominal amount of £600,000 where such securities form the whole or part of the consideration for the acquisition of any other company;
provided this authority shall expire at the conclusion of the next Annual General Meeting of the Company after the passing of this resolution save that the directors may allot relevant securities pursuant to an offer or agreement made by the Company on or before that date as if such authority had not expired.
To consider and if thought fit pass the following resolutions as a Special Resolution:
6. THAT in substitution for all existing authorities to the extent unused, and subject to the passing of the resolution 5 the directors be generally empowered pursuant to Section 551 of the Act to allot equity securities (within the meaning of Section 560 of the Act) pursuant to the authority conferred by resolution 5 as if Section 561 of the Act did not apply to any such allotment provided that this power shall be limited to the allotment of equity securities:
(i)in connection with a rights issue or other pre-emptive share issue in favour of ordinary shareholders where the securities respectively attributable to the interest of all ordinary shareholders are proportionate (as nearly may be) to the respective number of ordinary shares held by them but subject to such exclusions or arrangements as the directors may deem necessary or expedient to deal with fractional entitlements arising or any legal or practical problems under the laws of any overseas territory or the requirements of any regulatory body or exchange or otherwise; and
(ii) otherwise than pursuant to sub-paragraph (a) above for cash up to an aggregate nominal value of £250,000;
provided this authority shall expire at the conclusion of the next Annual General Meeting of the Company after the passing of this resolution save that the directors may allot relevant securities pursuant to an offer or agreement made by the Company on or before that date as if such authority had not expired.
For further enquiries please contact:
Chris Birkle Coburg Group PLC +44 (0)20 8317 6410
Colin Aaronson Grant Thornton Corporate Finance +44 (0)20 7383 5100
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FSUFLMSUSEDS
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| 20-11-09 | ||||
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Lol that's weird up 11% at the close!
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| 19-11-09 | ||||
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Well, with the loss of Costa, there isn't a business left anyway, so the death throws are long since past. Forget it - this is all done and dusted.
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| 19-11-09 | ||||
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Now there's a surprise...a 17.84% fall in the share price!
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| 07-10-09 |
SELL
Re: Results
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Of course, there is little point in selling as the shares are worthless!!
So I also guess I owe this bb an apology. I got it wrong. It has now been 2 years and the company is hanging on. I will make this prediction though - with the loss of the single most important client, a continued poor set of results for a number of years now, there can only be 1 outcome. So I will make prediction number 2 - it can't be too much longer before this comapny goes bust. Once again, my contempt and disgust goes out to the board. They've screwed this business over, time and time again. I see no great gain that they've made over the years, personally. Ok, they've taken pay, etc, but there can't be any real benefit to them in holding shares that are worthless. Indeed, I see no explanation as to why the board haven't withdrawn the company from AIM, as this just sucks money out of the business. This must be the single most incompetant board of directors I've had the mis-fortune to invest in. What does that make me!?! I've finished moaning now! |
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The contents of the postings summarised here represents the opinions of the authors and not of Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
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