RNS Number:5984U
Swan(John) & Sons PLC
23 January 2004
John Swan & Sons PLC
Chairman's Interim Statement
I am pleased to report on a number of developments.
The reconstruction of the company, reported earlier to shareholders, has been
successfully completed, allowing the directors of the auction mart to
concentrate on the operation and development of the business.
Good progress has been made with our programme for the realisation of assets no
longer required. As previously announced, a profit of #747,497 was obtained from
the sale of Powflats.
I believe that the issue of the return of pension scheme contributions should be
resolved imminently and will be the subject of an appropriate announcement when
we are in a position to make one.
Shareholders will be kept informed of further developments.
In our first half, our core auction mart business achieved an operating profit
of #87,482 on a turnover of #855,678 compared to #1,454 on a turnover of
#737,056 last time. The group itself made an operating profit of #49,232 after
the non-recurring costs of reconstruction of #38,250. Disappointingly, the
"Braveheart" joint venture, which experienced rather more difficult trading
conditions, recorded a loss of #38,417 (profit: #10,589). Net interest payable
was #49,105. The final outcome was of course greatly influenced by the Powflats
profit of #747,497. The profit before tax was therefore #709,207.
As has been historically the case, a decision on dividends in respect of the
year will be taken when the Board has reviewed results for the full 12 months.
A.J. Ritchie
Chairman
Managing Director's Statement
Throughout the last year there has been a small restoration in confidence
throughout the whole livestock industry especially in the sheep sector. The
increase in the numbers of stock handled through the marts is welcome but we
require a further improvement in volumes to enable the group to absorb more
efficiently the higher costs of, for example, business rates and regulation.
The "Braveheart" product continues to command a premium price in the retail beef
sector, but returns in the first half were disappointing, reflecting problems
currently being experienced in the red meat sector. Margins were under pressure
throughout the period, which together with the continuing importation of foreign
beef at discount prices has made trading extremely difficult. The directors
continue to monitor the "Braveheart" situation closely.
J.C. Clark
Managing Director
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the half year ended 31 October
2003
Notes 2003 2002
Turnover : Group and share of joint 1,654,318 1,243,734
venture
Less : share of joint venture (798,640) (506,678)
turnover ------- -------
GROUP TURNOVER 855,678 737,056
======= =======
Staff costs 423,733 394,606
Depreciation 48,630 40,759
Other operating charges 295,833 300,237
Exceptional operating charge 2 38,250 286,426
------- -------
806,446 1,022,028
------- -------
GROUP OPERATING PROFIT/(LOSS) 49,232 (284,972)
Share of operating (loss)/profit in (38,417) 10,589
joint venture
------- -------
10,815 (274,383)
Exceptional item
Profit on disposal of fixed assets 3 747,497 96,392
------- -------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE
INVESTMENT INCOME, INTEREST AND TAXATION 758,312
-------
Income from unlisted investments 84 94
Interest receivable
Group 9,304 12,247
Joint venture 111 9,415 - 12,247
------ ------
Interest payable
Group (53,112) (1,697)
Joint venture (5,492) (58,604) (3,211) (4,908)
------ ------
------- -------
(49,105) 7,433
------- -------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES
BEFORE TAXATION 709,207 (170,558)
Tax on profit/(loss) on ordinary (6,234) 40,246
activities
------- -------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES
AFTER TAXATION 702,973 (130,312)
Dividends - -
------- -------
RETAINED PROFIT/(LOSS) FOR GROUP AND ITS
SHARE OF JOINT VENTURE # 702,973 # (130,312)
======= =======
EARNINGS/(LOSS) PER SHARE
Ordinary shares of 25p 104.6p (19.4)p
Deferred shares of 12 1/2p 52.3p (9.7)p
The Group and its joint venture have no recognised gains and losses other than those included
in the profit/(loss) above and therefore no separate statement of total recognised gains and losses
has been presented.
CONSOLIDATED BALANCE SHEET
as at 31 October 2003
2003 2002
FIXED ASSETS
Tangible assets
Land and buildings 1,581,516 470,867
Motor vehicles 73,423 99,419
Plant 196,232 169,745
-------- --------
1,851,171 740,031
Investment
Investment in joint
venture :
Share of gross 273,957 253,698
assets
Share of gross (300,033) (26,076) (242,868) 10,830
liabilities ------- -------
-------- --------
1,825,095 750,861
-------- --------
CURRENT ASSETS
Stocks 22,592 18,516
Debtors - amounts falling due 2,931,056 2,328,767
within one year
Investments 2,594 2,890
Cash at bank and in 6,129 3,468
hand
Deferred tax - 20,666
asset
Corporation tax 3,221 -
-------- --------
2,965,592 2,374,307
-------- --------
CREDITORS - amounts falling due within one year :
Trade creditors 83,768 54,950
Current corporation 8,068 12,005
tax
Other taxes and social 66,046 53,586
security costs
Other creditors 26,956 7,099
Accruals 139,010 343,367
Bank overdraft 1,385,784 425,535
-------- --------
1,709,632 896,542
-------- --------
NET CURRENT ASSETS 1,255,960 1,477,765
-------- --------
TOTAL ASSETS LESS CURRENT 3,081,055 2,228,626
LIABILITIES
PROVISIONS FOR LIABILITIES AND (7,208) -
CHARGES
-------- --------
#3,073,847 #2,228,626
======== ========
CAPITAL AND RESERVES
Called up share 168,000 168,000
capital
Revenue reserve 70,000 70,000
Profit and loss 2,835,847 1,990,626
account -------- --------
EQUITY SHAREHOLDERS' #3,073,847 #2,228,626
FUNDS ======== ========
CONSOLIDATED CASH FLOW STATEMENT
for the half year ended 31 October 2003
Notes 2003 2002
Reconciliation of operating profit to net cash
outflow from operating activities
Operating profit/(loss) 49,232 (284,972)
Depreciation 48,630 40,759
(Profit)/loss on sale of tangible fixed assets (1,294) 5,017
Decrease in stock 78,541 3,984
Increase in debtors (1,071,347) (1,005,497)
Increase in creditors 150,382 281,020
-------- --------
Net cash outflow from operating activities #(745,856) #(959,689)
-------- --------
Cash Flows
Net cash flows from operating activities (745,856) (959,689)
Returns on investments and servicing of 4 (43,724) 10,644
finance
Decrease in investments 149 140
Net capital receipts 4 799,998 19,988
-------- --------
10,567 (928,917)
Equity dividend paid (67,200) -
-------- --------
Decrease in cash #(56,633) #(928,917)
-------- --------
Decrease in cash in the period (56,633) (928,917)
Net (Debt)/Funds at 30 April 2003 (1,323,022) 506,850
-------- --------
Net Debt at 31 October 2003 #(1,379,655) #(422,067)
-------- --------
Notes to the Interim Accounts
1 BASIS OF PREPARATION OF ACCOUNTS
The figures for the six months are unaudited. They comply with
the relevant accounting standards and have been prepared on a
consistent basis using accounting policies set out
in the 2003 Annual Report.
The consolidated accounts include the results of John Swan &
Sons PLC and, from 1 August 2003, the results of its wholly
owned subsidiary John Swan Limited.
2 EXCEPTIONAL OPERATING CHARGE 2003 2002
Fees incurred in respect of the 38,250 -
re-organisation of the Company
Fees incurred in respect of Extraordinary # - 286,426
General Meeting --------- -------
3 EXCEPTIONAL ITEM 2003 2002
Profit on disposal of # 747,497 96,392
property --------- -------
4 GROSS CASH FLOWS 2003 2002
Returns on investments and servicing of
finance
Interest received 9,388 12,341
Interest paid (53,112) (1,697)
--------- -------
# (43,724) 10,644
--------- -------
Net capital receipts/(payments)
Payments to acquire tangible fixed (99,495) (85,633)
assets
Receipts from sales of tangible fixed 899,493 105,621
assets
--------- -------
# 799,998 19,988
--------- -------
5 ANALYSIS OF CHANGES IN NET (DEBT)/ 2003 2002
FUNDS
Cash at bank and in hand at 1 May (1,323,022) 506,850
2003
Cash Outflow (56,633) (928,917)
--------- -------
Cash at bank and in hand at 31 October # (1,379,655) (422,067)
2003 --------- -------
6 The information set out in the attached schedules does not constitute
statutory accounts within the meaning of Section 240 of the Companies
Act 1985.
7 The Interim results were approved by the Board of Directors
on 23 January 2004.
8 The interim results are being posted out to all shareholders today and
copies are available to the public for a period of one month from the
date of this announcement from the Secretaries, Geoghegan & Co, 6 St
Colme Street, Edinburgh EH3 6AD.
Independent Review Report to John Swan & Sons PLC
Introduction
We have been instructed by the company to review the financial information set
out within the profit and loss account, balance sheet, cash flow statement and
notes to the accounts and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Rules of the
Alternative Investment Market require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board. A review consists principally of making
enquiries of management and applying analytical procedures to the financial
information and underlying financial data and based thereon, assessing whether
the accounting policies and presentation have been consistently applied unless
otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with Auditing
Standards and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 October 2003.
Scott-Moncrieff
Chartered Accountants
Edinburgh
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