RNS Number:2280L
Treatt PLC
19 May 2003
Treatt PLC ("Treatt" or the "Group")
INTERIM STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2003
CHAIRMAN'S STATEMENT
Trading for the six months to 31st March 2003 was challenging, with Group
turnover increasing 5.3 per cent to #15,216,000 (2002: #14,454,000) and profit
before tax falling by 24 per cent to #955,000 (2002: #1,255,000). Earnings per
share have consequently decreased to 6.5 pence per share (2002: 8.6 pence per
share). The Board has declared an unchanged interim dividend of 2.7 pence per
share (2002: 2.7 pence per share) which is payable on 3rd October 2003 to all
shareholders on the register at close of business on 5th September 2003.
R C Treatt, the Group's principal operating subsidiary based in the UK, has
increased sales but net profits were lower due to the absence of last year's
significant one-off orange stock profits together with the impact of the
weakening US Dollar during the last 12 months.
Despite moving to a new facility and poor weather in the northern United States,
Treatt USA sales have been stable. However, there has also been a slight
reduction in margins due to the product mix and increased overheads in the new
facility. The last six months have not been easy for staff at Treatt USA, having
relocated within budget and on time, and having installed a new Enterprise
Resource Planning computer system. R C Treatt intends to implement fully this
system later this year.
Orange oil prices remain firm and are expected to remain so until the new
Brazilian orange crop in 2004 when it is believed that prices may well return to
near historical levels.
The Group's balance sheet remained stable with net assets per share of #1.68
(September 2002: #1.65 per share). Net Debt was #5.5m and gearing was 31 per
cent. Based upon our current projections the cash flow in the second half should
be positive.
Prospects
The Group order book is much stronger than at this time last year, particularly
in the USA. Treatt USA will have a stronger second half and although it is too
early to predict results for R C Treatt, we believe that they will have at least
as good a second half as the first half.
People
We are pleased to welcome Richard Hope (aged 36) as Finance Director, who joined
the company on 12th May. Having qualified as a Chartered Accountant in 1990 with
PriceWaterhouseCoopers, Richard has been Head of Finance at Hampshire Cosmetics
Limited for seven years and was Finance Director of the Marketing Services
Division of The Richbell Group.
Edward Dawnay
Chairman
19th May 2003
GROUP PROFIT AND LOSS ACCOUNT
Six months Year ended
ended
31 March 31 March 30 September
2003 2002 2002
(Unaudited) (Unaudited) (Audited)
Notes #'000 #'000 #'000
Turnover 3 15,216 14,454 30,740
Cost of (11,101) (10,233) (21,662)
Sales
______ ______ ______
Gross 4,115 4,221 9,078
profit
Net operating costs
----------- -------- ---------
Exceptional items - - (739)
Other Operating costs (3,033) (2,889) (6,140)
----------- -------- ---------
(3,033) (2,889) (6,879)
______ ______ ______
Operating profit 1,082 1,332 2,199
Net interest payable and (127) (77) (167)
similar charges
______ ______ ______
Profit on ordinary 955 1,255 2,032
activities before
taxation
Tax on profit on ordinary 5 (287) (384) (554)
activities
______ ______ ______
Profit on ordinary 668 871 1,478
activities after
taxation
Dividends (278) (273) (864)
______ ______ ______
Transfer to reserves 390 598 614
______ ______ ______
Dividends per share 2.7p 2.7p 8.4p
Earnings per share
-Basic
-after 6 6.5p 8.6p 14.6p
exceptional
items
-before 6 6.5p 8.6p 19.7p
exceptional
items
-Diluted 6 6.5p 8.5p 14.6p
GROUP BALANCE SHEET
As at As at As at
31 March 31 March 30 September
2003 2002 2002
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Tangible fixed assets 10,098 7,989 9,523
Current
assets
Stocks 11,144 10,013 10,080
Debtors 6,432 6,379 6,006
----------- -------- ---------
Cash at - restricted 227 1,827 561
bank
- unrestricted 219 233 156
----------- -------- ---------
446 2,060 717
______ ______ ______
18,022 18,452 16,803
Creditors: amounts falling
due within one year
Bank overdrafts (2,838) (1,086) (1,776)
Other creditors (4,697) (4,574) (4,484)
______ ______ ______
(7,535) (5,660) (6,260)
______ ______ ______
Net current 10,487 12,792 10,543
assets
Total assets less current 20,585 20,781 20,066
liabilities
Creditors: amounts falling (3,084) (3,482) (2,941)
due after more than one
year
Deferred taxation (193) (225) (194)
______ ______ ______
Net assets 17,308 17,074 16,931
______ ______ ______
Share 1,029 1,010 1,029
capital
Share premium account 2,142 1,963 2,139
Profit and loss account 14,137 14,101 13,763
______ ______ ______
Shareholders' funds 17,308 17,074 16,931
______ ______ ______
The financial information set out in this document does not constitute
statutory accounts within the meaning of the Companies Act 1985. The
figures for the year ended 30 September 2002 are an abridged version of
the Group's audited financial statements which have been delivered to the
Registrar of Companies. These statements received an unqualified audit
opinion. The figures for the six months ended 31 March 2003 and 2002 are
unaudited. This interim report was approved by the Board on 19 May
2003.
GROUP CASH FLOW STATEMENT
Six months Six months Year ended
ended ended
31 March 31 March 30 September
2003 2002 2002
(Unaudited) (Unaudited) (Audited)
Notes #'000 #'000 #'000
Cash inflow/(outflow) 1 74 (817) 968
from operating
activities
Returns on investments (127) (77) (167)
and servicing of
finance
Taxation (82) (307) (943)
Capital expenditure (592) (626) (1,507)
and financial
investment
Equity dividends (277) (264) (820)
paid
______ ______ ______
Cash outflow before (1,004) (2,091) (2,469)
financing
Financing - Decrease - - (85)
in debt
- Issue of 3 - 195
ordinary
share
capital
______ ______ ______
Decrease in cash in 2 (1,001) (2,091) (2,359)
the period
______ ______ ______
Notes
(1) Reconciliation of operating profit to cash inflow/
(outflow) from operating activities
Operating 1,082 1,332 2,199
profit
Depreciation 327 372 480
charges
Net increase in (1,335) (2,521) (1,711)
working capital
and other items
______ ______ ______
Cash inflow/ 74 (817) 968
(outflow) from
operating
activities
______ ______ ______
(2) Reconciliation of net
cash flow to increase in
net debt
Decrease in cash (1,001) (2,091) (2,359)
in the period
Cash outflow from (331) - (1,545)
change in net
debt
Exchange and 14 6 168
other non-cash
movements
______ ______ ______
Decrease in net (1,318) (2,085) (3,736)
funds in the
period
Net debt at 1 (4,159) (423) (423)
October 2002
______ ______ ______
Net debt at 31 (5,477) (2,508) (4,159)
March 2003
______ ______ ______
(3) Turnover by
destination
United 3,313 3,819 7,597
Kingdom
Rest of 4,626 3,864 8,044
Europe
The 3,477 4,015 8,375
Americas
Rest of 3,800 2,756 6,724
the
World
______ ______ ______
15,216 14,454 30,740
______ ______ ______
(4) Statement of
recognised gains --- --- --- ---
and losses
Profit for the 668 871 1,478
period before
dividends
Currency (16) 119 (235)
translation
differences on
foreign currency
net investments
______ ______ ______
Total recognised 652 990 1,243
gains and
losses
______ ______ ______
(5) Taxation has been provided at 30.1 per cent (2002: 30.5 per cent)
which is the effective group rate currently anticipated for the
financial year ending 30 September 2003.
(6) (a) Basic earnings per share for the six months ended 31 March 2003
are based on the weighted average number of shares in issue in the
period of 10,289,970 (2002: 10,102,749) and earnings of #668,000
(2002: #871,000) being the profit on ordinary activities after
taxation.
(b) Diluted earnings per share for the six months ended 31 March
2003 are based on the weighted average number of shares in issue in
the period, adjusted for the effects of all dilutive potential
ordinary shares of 10,289,970 (2002: 10,197,701) and the same
earnings as above.
(7) The interim financial statements have been prepared on the basis of
the accounting policies set out in the Group's 30 September 2002
annual report
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