Final Results
June 12 2003 - 3:30AM
UK Regulatory
RNS Number:2219M
Alba PLC
12 June 2003
12 June 2003
Alba plc
Preliminary Results for the year to 31 March 2003
Alba plc, the consumer electronics group, announces preliminary results for the
year ended 31 March 2003.
Highlights
* The Group achieved record sales and profits
* Turnover from continuing operations increased by 21% to #526m (2002:
#434m). Total turnover increased by 20% to #528m (2002: #440m)
* Normalised PBT, before profit on sale of discontinued operations and
goodwill amortisation, increased by 19% to #27.4m (2002: #23.1m)
After interest and goodwill amortisation, profit on continuing operations
increased by 18% to #26.5m (2002: #22.4m)
* EPS from continuing operations increased by 26% to 43.2p (2002: 34.3p)
* The total dividend for the year increased by 9% to 9.80p per share
(2002: 9.0p)
* All the Group's consumer electronics brands achieved record sales
- traditional products continue to sell very well
- new ranges of flat screen and LCD TVs have been highly successful
- DVD players are showing record growth
- the Group is pioneering digital radio and had good success with Freeview
set top boxes
- Ministry of Sound is now an established high performance brand
* Domestic Appliances, Personal Care and Power Products performed very well
- the Antony Worrall-Thompson food preparation range achieved wide
recognition and acceptance
- Hinari achieved record sales and was market leader by volume in sales on
microwave ovens
- Power Devil and JCB Power Products are now an important category for the
Group
- Carl Lewis Fitness products, including treadmills, exercise bicycles and
rowing machines, will appear shortly in shops
* International sales are growing in Italy, Germany, Spain and Eastern Europe
* Trading has continued at high levels in the early weeks of the current year
Commenting on prospects John Harris, Chairman, said:
"Our Group contains some extremely successful and innovative companies, managed
by a highly motivated team who should be congratulated on their past and current
achievements. We are able to introduce a constant flow of new products which
have broad-based consumer appeal and our markets are constantly increasing, both
in the UK and Europe. Sales in the early weeks of the current financial year
have been above the same period last year and we look to the future with
confidence."
- ends -
For further information, please contact:
Alba plc (today): 020 7067 0700
John E Harris, Chairman (thereafter): 020 8594 5533
Daniel Harris, Chief Executive
Andrew Rose, Finance Director
Weber Shandwick Square Mile 020 7067 0700
Nick Oborne/Louise Robson/Susanne Walker
12 June 2003
Alba plc
Preliminary Results for the year to 31 March 2003
CHAIRMAN'S REPORT
It gives me great pleasure to report on trading for the Group for the year ended
31 March 2003. During the year our business has advanced in all major product
areas, achieving sales well in excess of #500 million and record profits.
FINANCIAL RESULTS
Alba plc (Continuing operations)
Turnover for the year was #525.9m (2002: #434.0m). Profit before tax was #26.5m
(2002: #22.4m). Earnings per share were 43.2p (2002: 34.3p). These profits are
stated after charging amortisation of goodwill of #0.9 million (2002: #0.7
million).
Discontinued operations
In addition to the sale of the Dreamland electric blankets division reported at
the half year, we have sold the remainder of the Bush Internet activities during
the year. These divisions had a combined turnover in the year of #2.1m (2002:
#6.1m) and profit before tax of #0.3m (2002: #17.3m loss). The profit on sale of
these operations was #2.6m.
Alba plc (whole Group)
Turnover for the year was #528.0m (2002: #440.1m). Profit before tax was #29.4m
(2002: #5.1m). Earnings per share were 47.0p (2002: 4.1p).
Shareholders' funds
Shareholders' funds increased by 32% during the year to #75.9m (2002: #57.6m).
Year-end borrowings were #42.7m as compared to #43.1m last year, with cash flow
from operating activities funding the substantial increases in business and the
construction to 31 March 2003 of a major new UK distribution facility at
Cortonwood, near Sheffield.
Dividend
The Board has recommended an increased final dividend of 7.75p (2002: 7.1p)
making a total dividend for the year of 9.80p per share (2002: 9.0p per share)
which will be paid on 20 October 2003 to shareholders on the register at 26
September 2003.
REVIEW OF ACTIVITIES
Consumer Electronics - UK
All of our companies in the Consumer Electronics field achieved record sales.
Alba, Bush and Goodmans brands are well represented in every high street and
shopping centre in the country.
Bush Radio plc
I was proud to announce last year that Bush had become the leading UK brand in
volume terms for colour TV. This achievement has not only been sustained, but
improved upon with annual sales across all products approaching #150m. Aside
from the traditional types of CTV, which continue to sell well, the business has
expanded into a highly successful range of flat screen and LCD televisions and a
number of TV/DVD and DVD/VCR combinations. High volume sales of DVD players were
achieved throughout the winter season and the product has shown record beating
growth both for us and the Industry.
Goodmans
Goodmans also traded very well. Last year we reported its sales were approaching
#70m. In the year to 31 March 2003 sales exceeded #90m. In addition to
traditional and new innovative products launched last year, Goodmans has emerged
during the past six months as the pioneer and market leader of digital radio
(DAB). Sales of this product, which represents the future of broadcasting, have
proceeded well. Another product which has been developed and marketed with great
success has been "Free-to-Air" Digital Set Top Boxes, which allow viewers to
obtain reception of a number of BBC, ITV and other channels, which are not
available on an analogue TV, without charge.
Alba Radio
Alba Radio has also achieved record sales across a wide range of home audio and
portable stereo, karaoke, TV, VCR and DVD products. Alba's reputation for
affordable highly specified electronic products continues to grow.
Roadstar UK and Ministry of Sound
I am pleased to report that both Roadstar and Ministry of Sound have shown good
results. Sales in Roadstar UK are now approximately three times what they were
at the time of acquisition of its continental parent and Ministry of Sound, in
its first year, is already established as a high performance brand, especially
in digital and personal audio products.
TELECOMS
Sales in telecoms did not produce the major increases accomplished in consumer
electronics. Nevertheless a sound performance was achieved across our Betacom,
Answercall, Cable and Wireless and NTL brands. Given patient building and
strengthening we believe that this business will become a major player.
APPLIANCES
This is our second biggest product area and total sales within this category
were in excess of #135m. One cannot make direct comparisons with the previous
year as the acquisition of Pulse Home Products only took place with effect from
1 October 2001 . All brands performed well.
Pulse Home Products
We have successfully absorbed Pulse into the Group . The Breville, Bush
Domestic, Nicky Clarke and Viva brands achieved sales of approximately #45m and,
with a number of new products now being introduced, we can look forward to
further increases during the current year. The Antony Worrall-Thompson range of
food preparation appliances has achieved wide recognition and acceptance with
its premium collection of kitchen appliances. The large Pulse premises in
Middleton, Manchester, have gradually taken on Group responsibilities,
especially the servicing of many Group products under factory conditions in what
had previously been the Dreamland electric blanket factory.
Hinari and Dirt Devil
Hinari was one of the big success stories of the year. Its sales at #28m were a
record for this division. It is a market leader by volume in sales of microwave
ovens, but also sells large quantities of kettles, toasters and other
appliances. Dirt Devil floor care also did extremely well, increasing sales to
over #10m in the year.
Power Products
Power products, incorporating Power Devil and JCB Power Products, is now an
important category for the Group, with sales approaching #30m. We have built on
our close relationship with JCB and continue to look to maximise the
opportunities that exist.
Carl Lewis Fitness
Our latest operation is Carl Lewis Fitness. Products, which include treadmills,
exercise bicycles, rowing machines and other fitness equipment suitable for home
use, are endorsed by the famous Olympic athlete, Carl Lewis. Locally our
consultant is the well-known British athlete and TV presenter, Roger Black. This
category of products should enjoy growing demand as the public becomes more
health and fitness aware. Products will shortly appear in the shops.
INTERNATIONAL
Roadstar Europe
I was very pleased to report on Roadstar's progress last year and am happy to
state that during the past year it has continued to develop well. Sales in Italy
and Germany have progressed and Spain is growing into a major market. Most
significant of all, sales in Eastern Europe have developed strongly. We believe
that there will be significant capacity for further sales growth in the next few
years.
Harvard Maritime, Hong Kong
A number of political and health factors (the SARS virus) have not made trading
conditions easy for Harvard Maritime in recent months. Despite this adversity it
has still produced a satisfactory performance under difficult conditions.
DISTRIBUTION FACILITY AT CORTONWOOD
We are currently building a warehouse at Cortonwood, which is an Enterprise Zone
some twelve miles north of Sheffield and close to the motorway network.
Geographically this fits very well into our national network, being
approximately half way between our other distribution facilities at Rugby and
Tyneside. This will be our largest distribution centre to date, is high rise and
will be capable of storage of approximately 27,000 pallets. Construction will be
complete and the site become operational by the beginning of August. The cost of
the development will be approximately #8m.
DISPOSALS
As the sale of the Dreamland electric blankets division was announced in June I
was able to report on this to shareholders in last year's Statement. In January
2003 we also disposed of the last elements of Bush Internet for approximately
#1.5 million.
CONCLUSIONS AND LOOKING FORWARD
In my Interim Statement I said that we were confident that the good business
already experienced would continue through the Christmas period and beyond. I am
now pleased to report that this projection was fulfilled and we traded well
through most of the final quarter, with the exception of the short period of the
Iraq War. Since the end of the conflict trading has resumed at its previous high
levels and sales in the early weeks of the current financial year have been
above the same period last year.
Our Group contains some extremely successful and innovative companies, managed
by a highly motivated team who should be congratulated on their past and current
achievements. We are able to introduce a constant flow of new products which
have broad-based consumer appeal and our markets are constantly increasing, both
in the UK and Europe. We look to the future with confidence.
- ends -
For further information, please contact:
Alba plc (today): 020 7067 0700
John E Harris, Chairman (thereafter): 020 8594 5533
Daniel Harris, Chief Executive
Andrew Rose, Finance Director
Weber Shandwick Square Mile 020 7067 0700
Nick Oborne/Louise Robson/Susanne Walker
ALBA PLC
Consolidated Profit and Loss Account
Unaudited results for the year ended 31 March 2003
Year ended Year ended
31 March 31 March
2003 2002
Notes Total Total
(unaudited)
#'millions #'millions
Turnover - continuing operations 525.9 434.0
- discontinued operations 2.1 6.1
------------ ------------
- total 2,3 528.0 440.1
Cost of Sales 3 (455.3) (395.4)
------------ ------------
Gross profit 72.7 44.7
Net operating expenses 3 (44.3) (37.8)
------------ ------------
Operating profit - continuing operations 28.0 24.1
- discontinued operations 0.4 (17.2)
------------ ------------
- total 28.4 6.9
Profit on sale of discontinued operations 2.6 -
------------ ------------
31.0 6.9
Interest payable(net) (1.6) (1.8)
------------ ------------
Profit on ordinary activities before taxation 29.4 5.1
Tax on profit on ordinary activities 4 (6.0) (0.4)
------------ ------------
Profit on ordinary activities after taxation 23.4 4.7
Minority Interest 5 - (2.7)
------------ ------------
Profit attributable to shareholders 23.4 2.0
Dividends 6 (5.0) (4.6)
------------ ------------
Retained profit 18.4 (2.6)
============ ============
Earnings per Ordinary Share - Group 7 47.0p 4.1p
============ ============
- continuing operations 8 43.2p 34.3p
============ ============
Diluted earnings per Ordinary Share 9 46.3p 4.0p
============ ============
Statement Of Total Recognised Gains And Losses
Profit attributable to shareholders 23.4 2.0
Currency translation differences on foreign currency
net investments (0.6) (0.3)
------------ ------------
Total recognised gains relating to the year 22.8 1.7
============ ============
ALBA PLC
Consolidated Balance Sheet
As at 31 March 2003
31 March 31 March
Notes 2003 2002
(unaudited)
#'millions #'millions #'millions #'millions
Fixed Assets
Intangible fixed assets 2.1 3.5
Tangible fixed assets 15.0 10.5
Investments: Own shares 0.3 0.4
--------- --------
17.4 14.4
Current assets
Stocks 82.9 60.4
Debtors 72.2 69.4
Cash at bank and in hand 6.1 9.5
-------- --------
161.2 139.3
Creditors
Amounts falling
due within one year (101.1) (94.6)
-------- --------
Net current assets 60.1 44.7
--------- --------
Total assets less
current liabilities 77.5 59.1
Creditors
Amounts falling due
after one year - (0.1)
Provisions for liabilities
and charges (1.6) (1.4)
--------- --------
75.9 57.6
--------- --------
Capital and reserves
Called up share capital 5.0 5.0
Share premium account 16.2 15.7
Profit and loss account 54.7 36.9
--------- --------
Shareholders'
funds - equity 10 75.9 57.6
========= ========
ALBA PLC
Consolidated Cash Flow Statement
Unaudited results for the year ended 31 March 2003
Year ended Year ended
31 March 31 March
2003 2002
Notes (unaudited)
#'millions #'millions
Cash flow from operating activities 11 10.6 13.7
Returns on investments and servicing of
finance (1.6) (1.8)
Taxation (2.2) (0.5)
Capital expenditure and financial
investment (5.6) (0.2)
Acquisitions and disposals 3.6 (12.1)
Equity dividends paid (4.5) (4.2)
------------ ------------
Cash inflow/(outflow) before use of liquid
resources and financing 0.3 (5.1)
Financing 0.3 0.1
------------ ------------
Increase/(Decrease) in cash in year 0.6 (5.0)
============ ============
Reconciliation Of Net Cash Flow To Movement In Net Debt
Increase/(Decrease) in cash in year 0.6 (5.0)
Cash outflow from decrease in debt and lease
financing 0.2 0.1
------------ ------------
Change in net debt resulting from
cashflows 0.8 (4.9)
Translation difference (0.4) 0.2
------------ ------------
Movement in net debt in year 0.4 (4.7)
Net debt at start of year (43.1) (38.4)
------------ ------------
Net debt at end of year 12 (42.7) (43.1)
============ ============
ALBA PLC
Notes
1. The financial information set out in the announcement does not constitute
the company's statutory accounts for the years ended 31 March 2003 or 2002. The
financial information for the year ended 31 March 2002 is derived from the
statutory accounts for that year which have been delivered to the Registrar of
Companies. The auditors reported on those accounts; their report was unqualified
and did not contain a statement under s237(2) or (3) Companies Act 1985. The
statutory accounts for the year ended 31 March 2003 will be finalised on the
basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the company's annual general meeting. The auditors' report on the full
financial statements for the year to 31 March 2003 has therefore yet to be
signed.
2i.The turnover attributable to the different classes of the Group's
business were as follows:
Year ended Year ended
31 March 31 March
2003 2002
#'millions #'millions
Electronic and audio equipment and domestic appliances 520.2 432.2
Giftware 6.7 6.2
Bush Internet portal business 1.1 1.7
------------ ------------
528.0 440.1
============ ============
2ii. The geographical analysis of turnover by destination is as follows:
United Kingdom 456.7 387.9
Italy 22.3 21.8
Germany 9.3 7.7
France 4.2 3.7
Switzerland 1.9 3.8
Rest of Europe 33.3 13.9
Rest of World 0.3 1.3
------------ ------------
528.0 440.1
============ ============
3. Turnover, cost of sales and net operating expenses may be analysed as
follows:
Continuing Discontinued 2003 Continuing Discontinued 2002
Operations Operations Total Operations Operations Total
#'millions #'millions #'millions #'millions #'millions #'millions
Turnover:
- traditional
business 525.9 1.0 526.9 434.0 4.4 438.4
- Bush Internet - 1.1 1.1 - 1.7 1.7
-------- --------- ------- -------- -------- -------
525.9 2.1 528.0 434.0 6.1 440.1
-------- --------- ------- -------- -------- -------
Cost of Sales:
- traditional
business 454.3 0.5 454.8 376.4 2.6 379.0
- Bush Internet - 0.5 0.5 - 16.4 16.4
-------- --------- ------- -------- -------- -------
454.3 1.0 455.3 376.4 19.0 395.4
-------- --------- ------- -------- -------- -------
Net Operating expenses:
Selling and distribution
- traditional
business 13.4 - 13.4 9.9 - 9.9
Administration
- traditional
business 30.4 0.4 30.8 23.8 1.3 25.1
- Bush Internet - 0.3 0.3 - 3.0 3.0
Other operating income (0.2) - (0.2) (0.2) - (0.2)
-------- --------- ------- -------- -------- -------
43.6 0.7 44.3 33.5 4.3 37.8
-------- --------- ------- -------- -------- -------
The traditional business discontinued activities relates to the Dreamland
electric blankets division sold during the year.
4. The tax charge comprises
Continuing Discontinued 2003 Continuing Discontinued 2002
Operations Operations Total Operations Operations Total
#'millions #'millions #'millions #'millions #'millions #'millions
UK corporation
tax on profits
for the year 3.4 1.0 4.4 5.1 (5.1) -
Adjustments for
previous periods - - - (0.9) - (0.9)
------- --------- ------- -------- ------- -------
3.4 1.0 4.4 4.2 (5.1) (0.9)
Overseas tax 1.4 - 1.4 1.3 - 1.3
-------- --------- ------- -------- -------- -------
Total
current tax 4.8 1.0 5.8 5.5 (5.1) 0.4
Deferred tax 0.2 - 0.2 - - -
-------- --------- ------- -------- -------- -------
5.0 1.0 6.0 5.5 (5.1) 0.4
======== ========= ======= ======== ======== =======
5. The minority interest may be analysed as follows:
Year ended Year ended
31 March 31 March
2003 2002
#'millions #'millions
Balance at 1 April 2002 - 2.7
Provision for impairment of minority interest - (2.7)
------------- --------------
Balance at 31 March 2003 - -
============= ==============
6. The directors have declared a final dividend of 7.75p (2002: 7.1p) net
per Ordinary Share payable on 20 October 2003 to shareholders on the register at
26 September 2003.
7. Earnings per share are based upon earnings of #23.4 million (2002: #2.0
million) and 49,781,557 (2002: 49,336,201) Ordinary Shares being the weighted
average number of shares in issue excluding the shares held by The Alba plc ESOP
Trust.
8. Earnings per share for the continuing operations, which excludes the
results of the Bush Internet and Dreamland businesses, are based upon earnings
of #21.5 million (2002: #16.9 million) and the number of ordinary shares as in
note 7 above.
These earnings may be reconciled as follows:
31 March 31 March
2003 2002
(unaudited)
#'millions #'millions #'millions #'millions
Profit attributable to
shareholders 23.4 2.0
Items not relating to
continuing operations:
Discontinued operations:
Operating profit/(loss) 0.4 (17.2)
Interest payable (net) (0.1) (0.1)
--------- ---------
Profit/(loss) before tax 0.3 (17.3)
Tax credit - 5.1
--------- ---------
Profit/(loss) after tax 0.3 (12.2)
Minority interest - (2.7)
--------- ---------
(0.3) 14.9
Profit on sale of
discontinued operation
Profit before tax 2.6 -
Tax charge (1.0) -
--------- ---------
Profit after tax (1.6) -
--------- ----------
Profit relating to
continuing operations
attributable to shareholders 21.5 16.9
========= ==========
9. Diluted earnings per share are based upon earnings of #23.4 million
(2002: #2.0 million) and 50,523,267 (2002: 50,411,799 ) Ordinary Shares allowing
for the exercise of outstanding share options exercisable at a price below the
average fair value during the period and the shares held by The Alba plc ESOP
Trust.
10.The movement in shareholders' funds may be reconciled as follows:
#'millions
Balance at 1 April 2002 57.6
Shares issued 0.5
Retained profit for year 18.4
Foreign exchange translation difference (0.6)
---------
Balance at 31 March 2003 75.9
=========
11. Reconciliation of operating profit to operating cash flow
Year ended Year ended
31 March 31 March
2003 2002
#'millions #'millions
Operating profit 28.4 6.9
Depreciation 1.1 1.5
(Increase)/Decrease in stocks (22.5) 22.9
Increase in debtors (3.2) (12.8)
Increase/(Decrease) in creditors 5.7 (5.7)
Amortisation of investment in own shares 0.2 0.2
Amortisation of goodwill 0.9 0.7
--------- ----------
Net cash inflow from operating activities 10.6 13.7
========= ==========
12. Analysis of net debt
At At
1 April Cash Exchange 31 March
2002 flow movement 2003
#'millions #'millions #'millions #'millions
Cash at bank and in hand 9.5 (3.1) (0.3) 6.1
Bank loans and overdrafts (29.5) 3.1 (0.1) (26.5)
Bank import advances (22.8) 0.6 - (22.2)
Other loans (0.3) 0.2 - (0.1)
--------- --------- ---------- ----------
(43.1) 0.8 (0.4) (42.7)
========= ========= ========== ==========
13.These results were approved by the board on Wednesday 11 June, 2003.
14.Copies of the 2003 Report and Accounts are being sent to Shareholders in
due course. Further copies will be available from the registered office of Alba
plc, Harvard House, 14-16 Thames Road, Barking, Essex, IG11 0HX.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UAABROORNAAR