RNS Number:4403S
Abacus Group PLC
25 November 2003
25 November, 2003
Abacus Group plc
Preliminary Results
Abacus Group plc, a leading franchised distributor of electronic components in
the UK, Italy and Nordic regions, announces its Preliminary Results for the
twelve months ended 30 September, 2003.
Financial Highlights:
* #8m PBT & goodwill of #0.4m : strong performance in tough market (2002:
#9.5m PBT & goodwill of #2.8m)
* Sales #147m (2002: #155.0m) : maintained through expanded market share
* Net debt #18.7m (2002 : #18.5m) : supported by strong cashflow
* EPS before goodwill 13.5p (2002: 16.6p) : marginal fall in difficult year
* EPS after goodwill 12.5p (2002: 9.8p)
* Final dividend 6.8p, taking total to 10.2p (+5%) : growth reflects
business confidence
Business Highlights:
* Robust financial model continuing to deliver profits and generating cash
* Increasing market share - UK grown from 12.9% to 14.0%
* Focus on high quality customer service and supplier support
* Trident sales up 10.9% - benefits of diversified product offering
Since year end:
* Stake increased to 60% in ECC, Italian distributor of electronic
components
Commenting on the results, Harry Westropp, Chairman, said:
"Abacus has shown great resilience during an exceedingly difficult trading
period. Considerable investment has been made in the infrastructure of the
business and balance sheet strength has been maintained. Although the industry
is not yet showing signs of a sustained recovery there are some indications that
the deterioration has been arrested. Since the year end, the level of order
intake has improved and exceeds sales."
For further information, please contact:
Abacus Group
Martin Kent, Brian Murdoch or Peter Griffith-Jones
Tel today: 020 7466 5000 and thereafter: 01635 36222
Buchanan Communications
Tim Anderson/Isabel Petre
Tel: 020 7466 5000
Chairman's Statement
I am pleased to report that Abacus has shown great resilience during an
exceedingly difficult trading period. There has now been a period of two and a
half years over which prices have fallen in our industry and margins have been
under constant pressure. Despite these conditions the Abacus Group has achieved
the market's expectations of a profit of #8 million, before goodwill of #0.4
million and tax of #2.4 million, on sales of #147 million. Whilst this
represents a reduction in pre-goodwill profitability of 15%, compared with the
previous year, considerable investment has been made in the infrastructure of
the business, balance sheet strength has been maintained and the dividend is
being increased by 5%.
I have said before that the Abacus response to the tough trading conditions in
its industry has been consistent. The primary task has been to maintain a robust
financial model which would continue to deliver profits and generate cash and
dividends for shareholders over a weak trading period. In our operations it has
been essential to provide excellent customer service, supplier support,
inventory management and logistics. We have seen success in all these areas and
as a result our largest subsidiary, Abacus Polar, has continued to increase its
market share. Furthermore, the Group has benefited from its diversified product
offering, particularly so at Trident, the display and related products
specialist, which has continued to grow.
Since the year end we have added to our holding of 9% in ECC Distribution
Limited and we now hold 60% of the share capital, with an option to buy the
balance in the future. This is the UK holding company of ECC Elettronica SpA, a
Milan based electronic components distributor with a network of regional offices
in Italy. Sales in the year to 30 September 2003 were Euro40.4 million (#27.4
million).
Outlook
The industry is not yet showing signs of a sustained recovery. There are however
some positive indications that the deterioration has been arrested. Since the
year end, the level of order intake has improved and exceeds sales. AFDEC, the
industry association, is predicting a modest upturn of 3% in the UK in the
calendar year 2004, against an expected downturn in excess of 5% for the
calendar year 2003. At present we do not anticipate that such a recovery will
take place early in the year, and accordingly we would not expect a sharp upturn
to be seen in our financial year to 30 September 2004. Our current view is that
the outlook for the coming twelve months will be broadly similar to that of the
period under review.
Everyone in Abacus has given great support over the past twelve months and I
thank them for their hard work.
Harry Westropp
Chairman
25 November 2003
Chief Executive's Review
General Review
The year under review was challenging for the Group in all its markets. The
industry problems in our territories were characterised by reduced volume demand
from customers, continued price pressure on commodity products, and transfer of
business by global customers to lower cost manufacturing regions.
It is impossible to avoid the consequences of lower volumes and prices, but our
strategy of focusing on regional, rather than global customers has minimised the
impact on the Group. In the UK our sales fell by 5.4%, and in Nordic markets by
11% in local currency. Our staffing levels recognise that overall workloads do
not reduce to the same degree as volumes and price, and this, combined with our
reputation for high quality customer service and supplier support, has enabled
the Group to grow its market share despite fierce competition. AFDEC statistics
show that our market share has grown in the UK to 14.0% from 12.9%, and has been
maintained at 5.4% in the Nordic region. This increase in share reflects our
focus on customers more likely to remain committed to local manufacturing, the
width and strength of our product offering and the commitment to keeping the
number of skilled staff required to provide a consistent level of service.
Component volumes, average selling prices, and workloads as measured by the
number of line items shipped, are a good reflection of market activity and are
measures we closely monitor. Comparing this year to last in our UK distribution
businesses, volumes fell by 1%, and average selling prices by 8%, but workloads
rose by 2.3%. In the Nordic region, the tougher market showed a different
picture, with volumes falling by 6.5%, average selling prices by 6% and
workloads by 8.5%.
We reduced operating costs by 8.6% in 2003. Through a carefully managed
programme of natural wastage and selective redundancy, we have reduced our
distribution headcount from 548 to 516 whilst achieving the service standards
required by the Group's customers. The initial phase of our programme to upgrade
our UK facilities was the opening in November 2001 of the new warehouse, which
has contributed to this improved efficiency. Its initial period of operation
required that new staff, unaccustomed to this industry, be trained and their
skills and job knowledge raised to our expected standard. In its second year of
operation, the total transaction workload increased by 9.6%, the error rate
reduced by 35% and the headcount by 11%. The final phase was to enlarge our
office facilities and this was completed during the summer of 2003. This project
transformed our Newbury freehold headquarters from the original Abacus warehouse
into an efficient office block. These modern facilities have been completed at a
capital cost of #1.5 million, a far more cost effective option than a move to
different premises.
Individual Company Review
All our distribution businesses pursue a similar philosophy, which is to offer
as wide a product range as possible in order to be in tune with the widespread
market trend towards supply chain management and supplier reduction; to work at
design level with both existing and new customers in order to be involved in the
proliferation of new products that typifies the electronics industry; and to
combine these features with an unusually high level of personal service and
commitment.
Abacus Polar, our largest subsidiary, has strengthened its UK market position.
This has been achieved primarily by giving customer service the highest priority
through our established structure of local offices and dedicated sales staff. We
provide highly qualified technical support for the majority of products and have
continued to invest in new product and market opportunities such as GSM, GPS
modules and Microsoft Windows Embedded Software.
The migration of global customers has had a minimal direct impact on sales
revenue, but has led to our major competitors seeking to refocus on our
traditional customer base. Whilst this is putting some pressure on our gross
margins we believe that our long standing relationships combined with an ability
to demonstrate high service levels have enabled us to maintain sales. However,
we will not stand still and we follow a path of continuous improvement to ensure
our service and product offering meets our customers' expectations.
Micromark C&CD has also performed well, justifying our strategy of having more
than one business in the major markets. We introduced the Maxim Dallas franchise
during the previous financial year, and this franchise has brought new customers
and sales revenue to the Group. During the year, Silicon Concepts was integrated
into Micromark resulting in significantly lower operating costs.
Promax, our Nordic distribution business, has faced tough markets and
experienced the sharpest sales decline of our Group companies due to the
historic significance of the telecoms sector in Sweden and Finland. However, we
have continued to seek opportunities to expand its product offering and believe
it is in an improved position to take advantage of any market growth. The
business has maintained its gross margin of 21%, whilst operating costs have
been reduced. During the year, Promax returned a small loss, but as a result of
recent cost reductions we are confident that it will return to profit once
market conditions improve.
Trident, the display and related products specialist, performed well and despite
its distribution business being affected by the market as much as our other
divisions, achieved growth of 10.9% by comparison to the previous year. This
came from the billing of its system build projects, particularly in the military
area. Whilst opportunities in the medical industry have not billed as quickly as
anticipated, we remain confident that this focus on system build opportunities
is becoming a significant contributor to growth. The Benelux operation has
established itself well and our expansion into the Nordic region is under way.
With the support of major franchises such as Toshiba and Microsoft we see this
as a good growth opportunity.
It is our intention during the coming year to similarly expand our displays
business into the Italian market, using the existing presence of ECC. Microsoft
have already confirmed their support in this respect.
Our electro-mechanical assembly businesses, CTL and CCS, have both suffered from
the difficulties of the UK market but have continued to contribute significantly
to the overall profitability of the Group. They remain strategically important,
offering customers differentiation from our competition, and in addition will
provide a valuable service to the system build division of Trident as it
develops in the future.
Dubilier, our "own brand" component business, largely sells commodity products
and has continued to experience price reductions, particularly in the passive
component area. However, we have successfully expanded these products into the
Nordic region since our acquisition of Promax, and intend to repeat this in
other European countries, such as in Italy through ECC.
During the year the Group purchased 9% of ECC, and subsequent to the year end
purchased a further 51%. ECC is a distributor of a broad range of electronic
components and computer products based in Milan and has a network of regional
sales offices throughout Italy, with a similar market approach to Abacus Polar
and Promax.
ECC brings to the Group a presence in the Italian distribution market, estimated
by Europartner Consultants to be Euro1.2 billion in 2002, and a number of exclusive
franchises in passive and electromechanical products which give it a strong
presence in the major Italian customers. Sales in the year to 30 September 2003
were Euro40.4 million (#27.4 million).
Outlook
Last year we stated "market conditions remain tough" and that "management will
continue to direct its attention to the fundamentals of the business - sales and
gross profit, inventory and cash generation". That focus and commitment has
enabled the Group to achieve a return to shareholders well above the average for
our industry, to maintain its excellent service and to grow its market share.
Our attention to these aspects of the business is key to our success and we
intend that it should always be so, irrespective of the market conditions.
Currently conditions remain extremely competitive, although many of the
semiconductor industry manufacturers and forecasters are encouraged by the
strength of the market since the summer holiday season and are talking of double
digit growth globally, with customer demand for calendar year 2004 being
particularly strong in the Asia-Pacific region.
The post-summer period has traditionally been strong due to the increased demand
for PC, mobile phone and consumer products for the Christmas season. We still
remain cautious and will wait to see a sustained increase in our own order
booking rate before endorsing this optimism. However, the lack of investment in
new semiconductor manufacturing capacity during the last three difficult years
should mean that a reasonable increase in demand anywhere in the world will
quickly use up available capacity. The global nature of the industry means that
this will drive increasing unit prices for everyone, from which we should see a
direct benefit in both sales and returns.
Martin Kent
Chief Executive
25 November 2003
Financial Review
Turnover
In the year to 30 September 2003, sales declined by 5% to #147.0 million.
Compared with the previous year, the decline was sharper in the first half, down
8%, with a 2% reduction in the second half. The greater first half decline
reflects the weaker than expected sales in Spring 2003, traditionally the
strongest quarter. During a year in which sales declined, all operations
continued to deliver profit, with the exception of Promax, the Group's
distributor in the Nordic region, which suffered a drop in sales of 11% in local
currency terms (3% in Sterling).
Looking at the geographical markets, 79% (2002: 80%) and 15% (2002: 14%) of the
Group's turnover arises in the UK and Nordic regions respectively. The Group
increased its UK market share in 2003 to 14.0% from 12.9% in 2002, and
maintained its Nordic share at 5.4%.
Gross Margins
Margins came under pressure during the year, particularly so in the second half,
as evidenced by a drop in gross profit from 24.0% in the first half to 22.4% in
the second half - making a gross profit percentage of 23.2% for the year as a
whole (2002: 24.7%).
Operating Expenses and Goodwill
The Group has continued to be successful in controlling overheads. Other
operating expenses (excluding goodwill of 0.4 million) for the year ended 30
September 2003 were #25.5million as compared to #27.9million in 2002 and
#30.4million in the previous year (including goodwill, operating expenses were
#25.9million, #30.8million and #31.1million respectively). This demonstrates the
Group's ability to control its cost base despite insurance premiums increasing
by #0.4milllion (#1.2million in 2003 from #0.8million in 2002) and the 1%
increase in national insurance contributions resulting in #0.2million additional
annualised costs.
Year end distribution headcount reduced from 548 in 2002 to 516 in 2003. This
has been achieved by focusing on operational efficiencies whilst ensuring that
our customer service levels and franchise support have not diminished
All acquired goodwill is written off over a 20 year period on a straight-line
basis, subject to investment impairment reviews. In the year ending 30 September
2002, such a review led to a #2.1million write down of goodwill arising on the
acquisition of Silicon Concepts. In 2003, the remaining balance of #0.7million
of Silicon Concepts goodwill was reduced to nil following a #0.6milllion
reduction in the acquisition purchase price and a further #0.1million write
down. The Group's goodwill amortisation charge decreased to #0.3million in 2003
compared to #0.7million in the previous year. This decrease reflects the
reduction in deferred consideration, which is based on Trident's 2002 and 2003
results, by #1.8million in the year following the delay in the new medical
contracts business.
Finance Charges
Finance charges decreased by #0.3million to #0.6million in 2003. This reduction
reflects the global fall in interest rates and our strategy to utilise lower
rates on Yen, Euro and US$ borrowings. This enabled the Group to maintain a
robust interest cover of fifteen times, based on profit before interest and
goodwill (fourteen times after goodwill amortisation).
Taxation
The Group's effective tax rate for the year, based on profits before taxation
and goodwill, was 29.4% against 26.6% in the previous year (31.0% and 38.0%
respectively after goodwill). This increase primarily resulted from a
#0.2million prior year adjustment charge in 2003 compared to a #0.2million
credit in 2002. This was partially offset by a #0.2million increase in capital
allowances over depreciation resulting mainly from #2.3million of software
costs, which have not yet been depreciated.
Working Capital and Cash Flow
The Group retains its key focus throughout each business on maintaining tight
management of working capital.
The Group's cash flow varies, both during the course of each month and
seasonally across the year. Debt tends to be highest at the month end, dipping
sharply during the first ten days of each month as some debtors pay a few days
late: it is the Group's policy to pay its creditors on time, and the bulk of
these payments are due at the end of each month. During the course of the year,
cash flow tends to improve during the latter part of the summer, which coincides
with the Group's year end. In addition, both at the half year mark and at the
end of the year, the Group's Credit Control departments make extra efforts to
resolve outstanding issues and this tends to lead to the debtors' figure being
lower than in the preceding few months.
Net cash outflow for the year was #0.2million, compared to an inflow of
#7.1million in 2002. This change was primarily due to lower cash inflow from
operating activities, of #10.7million in 2003 compared to #16.9million in 2002,
and higher capital expenditure of #4.8million (2002: #0.9million). These adverse
movements were partly offset by the repayment of a #1.0million loan by ECC
Distribution Limited and a reduction of #0.6million against the purchase price
of Silicon Concepts Limited. Looking at each of these in turn:
i Operating activities
In 2003 cash outflow on debtors was #0.3million against an inflow of
#4.9million in 2002. The 2002 inflow was mainly due to a decrease in
trade debtors following a 23% decrease in year on year sales, whilst the
slight increase in 2003 reflected the tightening in market conditions
and consequent pressures on debt collection. The Group's year end
debtors' days were 62 in 2003 against an unusually low 58 in 2002. In
addition, operating profit before depreciation and goodwill fell by
#1.6million to #9.8million in 2003, from #11.4million in 2002.
However, the above was partly offset by a #3.4million (2002:
#1.6million) cash inflow from a reduction in stock. The Group's creditor
days at year end (based on the last 2 months' cost of sales) were 37
(2002: 36 days).
ii Capital expenditure
During the year the Group's capital expenditure amounted to #4.8million
(2002: #0.9million), whilst depreciation was #1.2million (2002:
#1.1million). During the year we invested #2.3million in upgrading our
business system, whilst refurbishment of the Group's main building in
Newbury was completed at a cost of #1.5million, and involved
transforming what was originally the Group's main warehouse into
offices. A further #0.3million was spent on completing the fire
sprinkler system and other works at ADC (the Abacus Distribution
Centre). This brings to a conclusion the total capital investment of
#5.6million we have made in consolidating five of our UK warehouses into
the ADC, with 90,000 square feet currently in use, and a further 160,000
square feet available for further expansion.
It is the Group's policy that its larger properties be acquired on a
freehold basis in order to optimise our use of each property, although
if circumstances would indicate leasing to be more appropriate in
certain specific situations, then such a route would be considered.
iii Financial investment
In line with the terms of the agreement, ECC Distribution Limited, which
owns 100% of the share capital of ECC Elettronica SpA, repaid its
#1million loan from Abacus Electronics Holdings Limited (AEHL) during
the year.
iv Acquisitions
As part of the acquisition price for the Trident Microsystems Limited
group, which was acquired in October 2000, an element of consideration
was deferred until after April 2004, based upon the profit performance
of Trident during the two years ending 30 September 2003. This deferred
consideration is now expected to be #1.9million.
In January 1999 the Group sponsored a management buy-out of ECC
Elettronica SpA. In August 2003 the Group purchased 9% of ECC
Distribution Limited (the parent company of ECC Elettronica SpA) for
#159,000, and subsequent to the year end, the Group purchased a further
51% on 3 October 2003 at a cost of #0.9million.
During the year an agreement was reached with the vendors of Silicon
Concepts Limited, acquired in November 2000, to repay #0.6million of the
purchase consideration.
Debt
Net debt at the end of the year was #18.7million, as against #18.5 million at
the end of the previous year. After including deferred consideration of
#1.9million, which is scheduled to be paid after April 2004, gearing at the end
of the year was 48% (2002: 54%).
Treasury
The Group's treasury function is managed centrally from Newbury, providing a
service to the operating businesses, with regular reporting to the Board. The
Group's treasury policy is to ensure that adequate capital is available to the
Group for its business operations and that this is provided in a cost-effective
fashion. No speculative transactions as such are undertaken, in that all foreign
currency purchases are related to current or projected transactions. However,
the nature of treasury management is such that the timing and extent of currency
hedging will of necessity always involve a degree of speculation as to the
future movement of rates. The Group's practice is to review its hedging
programme continually, with a policy of increasing the use of hedging at a time
of substantial currency movements.
Currency Translation and Exposure
The results of the Group's overseas subsidiaries are translated into Sterling at
the month end exchange rates for the relevant year. The balance sheets of these
subsidiaries are translated into Sterling at the spot exchange rates at the end
of each year. Any gain or loss arising from such translations from one year to
the next is recorded in reserves. The principal currencies to which the Group is
exposed are the US Dollar, the Danish Kroner, the Euro and the Japanese Yen.
Pensions
The Group operates a number of staff pension schemes, all of which are of a
defined contribution nature. The Group has never operated a defined benefits
scheme.
Balance sheet
The Group's balance sheet continues to be strong. Shareholders' funds at 30
September 2003 were #42.4million (2002: #40.8million), the increase mainly
comprising the 2003 retained earnings of #1.0million and foreign exchange
reserve movements of #0.5million. The return on capital employed before goodwill
(profit before interest, taxation and goodwill divided by shareholders' funds
and net debt) was 14.1% (2002: 17.5%) and after goodwill was 13.4% (2002:
12.7%).
Dividend
The Directors are recommending a final dividend of 6.8p, giving a total dividend
for the year of 10.2p. This 5% increase on 2002 reflects the Group's confidence
in effectively managing its working capital and in its ability to generate cash,
even during a downturn in the market. The final dividend will be paid on 30
January 2004 to those shareholders on the Register at the close of business on
12 December 2003, subject to shareholder approval at the Annual General Meeting
on 27 January 2004.
Dividend cover, before and after goodwill, for the year ending 30 September 2003
is 1.3 times (2002: 1.7) and 1.2 times (2002: 1.0) respectively.
Earnings per share
Basic earnings per share, before goodwill, were 13.5p (2002: 16.6p), and after
goodwill were 12.5p (2002: 9.8p).
Peter Griffith-Jones
Finance Director
25 November 2003
Consolidated Profit and Loss Account
for the year ended 30 September 2003
#'000 #'000 2003 2002
#'000 #'000
Before Goodwill After Total
Goodwill Goodwill
Turnover (continuing operations) 146,980 - 146,980 154,963
Cost of sales (112,854) - (112,854) (116,681)
Gross profit 34,126 - 34,126 38,282
Other operating expenses (25,530) (405) (25,935) (30,770)
Operating profit 8,596 (405) 8,191 7,512
Finance charges (net) (571) - (571) (878)
Profit on ordinary activities before taxation 8,025 (405) 7,620 6,634
Tax on profit on ordinary activities (2,359) - (2,359) (2,522)
Profit on ordinary activities after taxation 5,666 (405) 5,261 4,112
Dividends paid and proposed on equity shares (4,296) - (4,296) (4,072)
Retained profit for the year 1,370 (405) 965 40
Earnings per share (note 1)
Basic (before goodwill) 13.5p 16.6p
Basic (after goodwill) 12.5p 9.8p
Diluted (before goodwill) 13.4p 16.2p
Diluted (after goodwill) 12.4p 9.6p
Consolidated Balance Sheet
30 September 2003
2003 2002
#'000 #'000
Fixed Assets
Intangible assets 9,105 11,939
Tangible assets 15,826 12,246
Investments 159 1,000
25,090 25,185
Current Assets
Stocks 31,754 34,645
Debtors 28,788 27,994
Cash at bank and in hand 1,228 83
61,770 62,722
Creditors: amounts falling due within one year (34,103) (36,937)
Net current assets 27,667 25,785
Total assets less current liabilities 52,757 50,970
Creditors: amounts falling due after more than one year (8,258) (6,281)
44,499 44,689
Provisions for liabilities and charges (2,050) (3,865)
Net assets 42,449 40,824
Capital and Reserves
Called-up share capital 2,108 2,100
Share premium account 8,783 8,608
Merger reserve 3,323 3,323
Capital redemption reserve 428 428
Profit and loss account 27,807 26,349
Equity Shareholders' Funds 42,449 40,808
Minority Interests - 16
Total Capital employed 42,449 40,824
Consolidated Cash Flow Statement
for the year ended 30 September 2003
2003 2002
#'000 #'000
Net cash inflow from operating activities (note 2) 10,670 16,890
Returns on investments and servicing of finance (571) (878)
Taxation (2,893) (4,248)
Capital expenditure and financial investment (3,683) (833)
3,523 10,931
Acquisitions 441 -
Equity dividends paid (4,160) (3,802)
Net cash (outflow) inflow before financing (196) 7,129
Financing 1,803 (10,305)
Increase (decrease) in cash in the year (note 3) 1,607 (3,176)
Consolidated Statement of Total Recognised Gains and Losses
and Reconciliation of Group Equity Shareholders' Funds
2003 2002
#'000 #'000
Profit for the year 5,261 4,112
Dividends paid and proposed (4,296) (4,072)
965 40
New share capital subscribed 183 410
Profit on foreign currency translation 493 64
New addition to equity shareholders' funds 1,641 514
Opening equity shareholders' funds 40,808 40,294
Closing equity shareholders' funds 42,449 40,808
Notes
30 September 2003
1 Earnings per share
Earnings per share in both years is calculated, in accordance with FRS 14, by
dividing the earnings by the weighted average number of shares outstanding in
the year.
Basic Diluted
2003 2002 2003 2002
#'000 #'000 #'000 #'000
Earnings after goodwill 5,261 4,112 5,261 4,112
Goodwill 405 2,850 405 2,850
Earnings before goodwill 5,666 6,962 5,666 6,962
Weighted average number of shares outstanding 42,035,246 41,816,267 42,372,634 42,907,987
(number)
Earnings per share after goodwill (pence) 12.5 9.8 12.4 9.6
Effect on earnings per share resulting from 1.0 6.8 1.0 6.6
goodwill (pence)
Earnings per share before goodwill (pence) 13.5 16.6 13.4 16.2
Weighted average number of shares 2003 2002
Number Number
of shares of shares
For basic earnings per share 42,035,246 41,816,267
Exercise of options 337,388 1,091,720
For diluted earnings per share 42,372,634 42,907,987
2. Cash flow from operating activities
2003 2002
#'000 #'000
Operating profit 8,191 7,512
Loss (profit) on disposal of fixed assets 37 (10)
Depreciation 1,200 1,086
Goodwill amortisation 316 731
Goodwill impairment loss 89 2,119
Operating profit before depreciation and goodwill 9,833 11,438
Decrease in stocks 3,415 1,551
(Increase) decrease in debtors (309) 4,923
Decrease in creditors (2,269) (1,022)
Net cash inflow from operating activities 10,670 16,890
3 Movement in net debt
2003 2002
#'000 #'000
Increase (decrease) in cash for the year 1,607 (3,176)
Cash (inflow) outflow from increase (decrease) in (1,620) 10,715
debt and lease financing
Change in net debt resulting from cash flows (13) 7,539
Finance leases disposed of with subsidiary undertaking 33 -
Foreign exchange difference (195) (33)
Movement in net debt in the year (175) 7,506
Net debt at beginning of year (18,486) (25,992)
Net debt at end of year (18,661) (18,486)
* Financial information
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 30 September 2003 and 30 September 2002,
but is derived from them. The accounting policies set out in the 2002 accounts
have been applied in preparing the information for 2003. Wherever new accounting
standards have come into force, prior year figures have been revised and new
policies adopted. Statutory accounts for 2002 have been delivered to the
Registrar of Companies. The Auditors have reported on the accounts to 30
September 2002: their report was unqualified and did not contain statements
under section 237 (2) or (3) of the Companies Act 1985.
The Company will hold its Annual General Meeting on 27th January 2004, following
which the statutory accounts for 2003 will be posted and delivered to the
Registrar of Companies. The auditors have reported on these accounts and their
report was unqualified.
The Annual Report and Accounts will be posted to shareholders in December 2003.
Copies of the Annual Report and Accounts and of this announcement will be
available at the Company's registered office: Abacus House, Bone Lane, Newbury,
RG14 5SF or from the web site: www.abacus-group.co.uk.
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