(BLKA.L) Black Arrow Group PLC Buy/Sell

RNS Number : 4455X Black Arrow Group PLC 14 August 2009

14th AUGUST2009

UNAUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31st MARCH 2009

At a meeting held today the board voted to recommend a final dividend of 1.00p per share (2008 - 4.00p) for the year ended 3st March 2009. No interim dividend was declared or paid (2008 - Nil p) and the total distribution for the year will be 1.00p per share (2008 - 4.00p).

The results are as follows:- Group Income Statement
For the year ended 31 March 2009 Year ended
Unaudited March

£000 £000

Revenue 8,963 13,678
Cost of sales (4,847) (7,921)
Gross profit 4,116 5,757
Distribution costs (363) (1,036)
Administrative expenses (5,131) (7,203)
(5,494) (8,239)
Group trading loss (1,378) (2,482)
Other operating income 96 455
Net (loss)/gain on disposal of property, plant and equipment (37) 7,786
Actuarial (loss)/gain on defined benefit pension scheme (378) 169
Negative fair value movement on revaluation of investment properties (1,360) -
Group operating (loss)/profit from continuing operations (3,057) 5,928
Finance revenue 433 283
Other finance revenue - 9 32

pensions
(Loss)/profit from continuing operations before taxation (2,615) 6,243
Tax credit/(expense) (note 1) 668 (1,509)
(Loss)/profit for the year from continuing operations (1,947) 4,734

Attributable to:
Equity shareholders of the (2,053) 4,649

parent
Minority interest 106 85
(1,947) 4,734

Earnings per share
Basic, and diluted for (loss)/profit from continuing operations (10.89p) 24.04p

attributable to ordinary equity holders of the parent (note 3)

Group Statement of Recognised Income and Expenses
For the year ended 31 March 2009 Year ended
Unaudited March

£000 £000

(Loss)/profit attributable to shareholders of the parent undertaking (2,053) 4,649
Profit attributable to minority interest 106 85
(1,947) 4,734

Group Balance Sheet
At 31 March 2009 Year ended
Unaudited March

£000 £000

Non current assets
Property, plant and equipment 3,524 3,941
Investment property 4,839 5,640
Trade and other receivables 1,522 1,741
9,885 11,322

Current assets
Inventories 180 451
Work in progress 278 200
Trade and other receivables 1,921 12,962
Income tax receivable 233 -
Cash and cash equivalents 9,451 3,143
12,063 16,756
Total assets 21,948 28,078

Current liabilities
Trade and other payables 829 2,814
Provisions 167 232
Income tax payable - 1,509
Accruals 132 19
1,128 4,574

Non current liabilities
Provisions 639 202
Deferred tax liability 160 580
Defined benefit pension plan deficit 528 167
1,327 949
Total liabilities 2,455 5,523
Net assets 19,493 22,555

Capital & reserves
Equity share capital 3,744 3,819
Share premium account 312 312
Merger reserve 26 26
Capital redemption reserve 1,287 1,212
Retained earnings 13,892 17,045
Black Arrow Group shareholder's equity 19,261 22,414
Minority Interests - equity 232 141
Total equity 19,493 22,555

Group Cash Flow Statement
For the year ended 31 March 2009 Year ended
Unaudited March

£000 £000

Operating activities
(Loss)/profit for the year on continuing operations (1,947) 4,734

Adjustments to reconcile(loss)/ profit for the year to net cash outflow from operating activities
Tax on continuing operations (668) 1,509
Net finance revenue (433) (283)
Other finance revenue - pensions (9) (32)
(Loss)/gain on disposal of property, plant and equipment 37 (7,786)
Negative fair value movement on revaluation of investment properties 1,360 -
Depreciation of property plant and equipment 205 401
Difference between pension contributions paid and amounts recognised in the income statement (8) 2
Actuarial loss/(gain) on defined benefit pension plan 378 (169)
Decrease in inventories 193 656
Decrease/(increase) in trade and other receivables 2,260 (976)
(Decrease)/increase in trade and other payables (1,871) 418
Movement in provisions 372 (347)
Cash generated from operations (131) (1,873)
Income taxes paid (1,495) (73)
Net cash outflow from operating activities (1,626) (1,946)

Investing activities
Interest received 433 283
Amounts received from disposal 9,059 356

of property, plant and equipment
Payments to acquire property, plant and equipment (443) (2,108)
Net cash inflow/(outflow) from investing activities 9,049 (1,469)

Financing activities
Dividends paid to equity shareholders of the parent (750) (389)
Dividends paid to minority (15) (15)

interests
Repayment of capital element of finance lease - (18)
Purchase of own shares (350) (332)
Net cash outflow from financing activities (1,115) (754)

Increase/(decrease) in cash and cash equivalents 6,308 (4,169)
Cash and cash equivalents at the beginning of the year 3,143 7,312
Cash and cash equivalents at the end of the year 9,451 3,143

Note 1

Year ended
Taxation Unaudited March

£000 £000

Corporation tax at 28% (2008 - 30%) (233) 1,509
Adjustment in respect of previous years (15) -
Deferred tax adjustment on negative fair value adjustment on investment properties (420) -
Tax (credit)/expense (668) 1,509

Note 2

Statement of changes in equity Year ended
Unaudited March

£000 £000
Opening shareholders' equity 22,414 18,486

Movement during the year:
(Loss)/profit attributable to shareholders' of the (2,053) 4,649

parent undertaking
Dividends paid (750) (389)
Purchase of own shares (350) (332)
Net (reduction)/increase to shareholders' equity (3,153) 3,928
Closing shareholders' equity 19,261 22,414

Note 3

The calculation of basic and diluted loss per share is based upon losses of £2,053,000 (2008 - profit £4,649,000) and 18,845,835 (2008-19,342,234) ordinary shares of 20p each being the weighted average number in issue during the year and the previous year.

Note 4

The figures for the year ended 31st March 2008 are based on the Black Arrow Group plc Annual Report and Accounts 2008 filed with the Registrar of Companies. The auditors issued an unqualified audit report on the 2008 statutory accounts.

Note 5

The figures for the year ended 31st March 2009 are unaudited and do not constitute statutory accounts within the meaning of S240 of the Companies Act 1985.

CHAIRMAN'S COMMENTARY

The substantial drop in revenue in the year reflects a further considerable fall in office furniture activity, occasioned by the poor state of the economy.

This has resulted in increased losses, exacerbated by a drop in the value of our investment properties and increased provisions in respect of unoccupied leasehold premises. There was also an actuarial loss on our final salary pension scheme.

Subsequent to the year end, I announced the disposal of our furniture division to our management and an outside investor. This transaction was completed in July and the group is no longer involved in this area of activity, although we have invested in the new company and retain a 9% shareholding; we have also provided working capital to the new company on arms length commercial terms.

The group's cash position remains strong which has influenced your directors to recommend a final dividend of 1.00p per share which, subject to approval at the forthcoming AGM will be paid on 19th October 2009 to shareholders registered on the 18th September 2009.

Enquiries:

ARNOLD EDWARD - Chairman

Telephone 020-8572-7474

Nominated Advisor

W H Ireland

David Porter

Telephone 020-7220-1666

This information is provided by RNS The company news service from the London Stock Exchange

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