RNS Number:6472N
AIM Group PLC
17 July 2003
17th July 2003
AIM GROUP PLC
Preliminary Results
For the year ended 30th April 2003
CHAIRMAN'S STATEMENT
RESULTS AND DIVIDEND
Despite an extremely difficult year the Group maintained turnover and returned
to profitability. Operating profits, before exceptional items, fell to
#1,054,000 (2002 - #2,302,000). After an exceptional charge of #344,000
(2002 - #3,308,000) and a reduced interest charge of #113,000 (2002 - #208,000)
the Group achieved a pre-tax profit of #597,000 (2002 - #1,214,000 loss). During
the year the company purchased for cancellation a total of 2,530,602 ordinary
shares for a cost of #2,259,000.
In view of the continuing difficulties for the aviation industry, the Board is
not recommending the payment of a final dividend which leaves the total dividend
for the year at 1.8p per share (2002 - 5.3p per share).
ANNUAL GENERAL MEETING
At the forthcoming Annual General Meeting to be held on 3rd September 2003, the
Company will again, inter alia, propose a special resolution to renew its
authority to purchase up to 10% of its issued, ordinary share capital, together
with the appropriate whitewash resolution. Again, this general authority would
only be exercised when in the best interests of shareholders as a whole.
REVIEW
Industry conditions for the period under review were the worst the Group has
experienced. Following the events of September 11th, the civil airline industry
has had to cope with plunging revenues, compounded by the war in Iraq and the
outbreak of the SARS virus. In addition, the cost of fuel, which is an airline's
greatest cost after labour, has substantially increased. The airlines' response
has been to reduce capacity and expenditure, which in turn reduced demand for
our products.
We were able to maintain turnover due to the need for increased security on
board aircraft. This resulted in sales in excess of #11m for our range of
bullet-proof cockpit doors. We were proud to be a co-recipient of the
prestigious Charles B Ryan award chosen by aerospace industry leaders for our
development, certification and manufacture of these cockpit doors.
The strength of our design and engineering capability, coupled with our
installed base of product added to our resilience during this turbulent period.
We also continued to win our share of new business in a plummeting market with
important contracts from Virgin, Airbus and the defence and rail industries.
OUTLOOK
It will be extremely difficult in such a depressed market to replace the
turnover generated this year by the cockpit security doors. An added adverse
complication is the suspension by BAE Systems of our largest contract: the
supply of interiors for Nimrod aircraft. This suspension due to design issues
totally unrelated to our supply, is particularly ill timed, as our defence work
would normally have helped balance the downturn in civil aviation. As a
consequence, we continue to adjust our cost base wherever possible in
anticipation of lower volumes whilst retaining our ability to take advantage of
any market recovery.
As we see no immediate abatement in these unprecedented conditions in the
aviation industry, we will defer consideration of dividends until the end of the
current financial year.
J. C. Smith
Executive Chairman
For further information:
Lulu Bridges
Tavistock Communications
Tel: 020 7600 2288
GROUP PROFIT AND LOSS ACCOUNT
for the year ended 30th April 2003
Before Before
excep- Excep- Un- excep- Excep-
tional tional audited tional tional
items items Total items items Total
note 3 note 3
2003 2003 2003 2002 2002 2002
Notes #'000 #'000 #'000 #'000 #'000 #'000
Turnover 56,221 - 56,221 56,014 - 56,014
Cost
of
sales (45,244) - (45,244) (43,051) (2,770) (45,821)
-------- -------- -------- -------- -------- -------
Gross
profit 10,977 - 10,977 12,963 (2,770) 10,193
Net
operating
expenses (9,923) (344) (10,267) (10,661) (538) (11,199)
-------- -------- -------- -------- -------- -------
Operating
profit/
(loss) 1,054 (344) 710 2,302 (3,308) (1,006)
-------- -------- -------- --------
Net
interest
payable (113) (208)
-------- -------
Profit/
(loss)
on
ordinary
activities
before
taxation 597 (1,214)
Tax on
profit/
(loss)
on
ordinary
activities (289) 335
-------- -------
Profit/
(loss)
for
the
financial
year 308 (879)
Dividends 6 (224) (783)
-------- -------
Retained
profit/
(deficit)
for the
year 84 (1,662)
======== =======
Basic
earnings/
(loss)
per
share 2 2.2p (6.0p)
======== =======
Diluted
earnings/
(loss)
per
share 2 2.2p (6.0p)
======== =======
Dividend 6
per
share 1.8p 5.3p
======== =======
GROUP BALANCE SHEET
at 30th April 2003
Unaudited
2003 2002
#'000 #'000 #'000 #'000
Fixed assets
Intangible assets 599 1,007
Tangible assets 6,949 6,926
-------- --------
7,548 7,933
Current assets
Stocks and work in progress 11,714 12,747
Debtors - due within
one year 11,180 10,401
- due after more
than one year 604 532
Cash at bank and in hand 1,642 2,807
-------- --------
25,140 26,487
Creditors
Amounts falling due
within one year (11,322) (10,786)
-------- --------
Net current assets 13,818 15,701
-------- --------
Total assets less current
liabilities 21,366 23,634
Creditors
Amounts falling due after
more than one year - (21)
-------- --------
Net assets 21,366 23,613
======== ========
Capital and reserves
Called up share capital 1,225 1,478
Share premium account 11,624 11,624
Revaluation reserve 1,986 1,382
Capital redemption reserve 253 -
Other reserves (1,086) (410)
Profit and loss account 7,364 9,539
-------- --------
Equity shareholders' funds 21,366 23,613
======== ========
GROUP CASH FLOW STATEMENT
for the year ended 30th April 2003
Unaudited
2003 2002
#'000 #'000 #'000 #'000
Net cash inflow from operating
activities 1,527 5,494
Returns on investment and
servicing of finance
Interest paid (105) (248)
Interest element of finance (8) (10)
lease payments
Taxation 58 (784)
Capital expenditure
Purchase of tangible (576) (896)
fixed assets
Disposal of tangible fixed assets 78 122
Proceeds from disposal of
asset held for resale - 1,300
-------- --------
(498) 526
Equity dividends paid (741) (1,004)
Financing
Issue of ordinary shares - 22
Purchase of own shares (2,259) -
Debt due within one year:
Repayment of bank loans - (697)
Repayment of other loan - (51)
Capital element of finance (40) (42)
lease payments
Debt due beyond one year:
Repayment of other loan - (721)
------- -------
(2,299) (1,489)
------- -------
(Decrease)/increase in net
cash in the year (2,066) 2,485
======= =======
Reconciliation of net cash
flow to movement in net debt
(Decrease)/increase in net
cash in the year (2,066) 2,485
Debt repayments 40 1,511
Exchange movements (346) 18
------- -------
Movement in net debt in the year (2,372) 4,014
Opening net cash/(debt) 2,749 (1,265)
------- -------
Closing net cash 377 2,749
======= =======
Statement of Total Recognised Gains and Losses
for the year ended 30th April 2003
Unaudited
2003 2002
#'000 #'000
Profit/(loss) for the
financial year 308 (879)
Net exchange adjustments
on foreign currency net
investments (676) (166)
Unrealised surplus on
revaluation of properties 604 -
------- -------
Total recognised gains and
losses for the financial year 236 (1,045)
Prior year adjustment - 877
------- -------
Total recognised gains
and losses since last
annual report 236 (168)
======= =======
The prior year adjustment in 2002 follows the adoption of FRS 19.
Note of historical cost profits and losses
for the year ended 30th April 2003
Unaudited
2003 2002
#'000 #'000
Reported profit/(loss) on
ordinary activities before
taxation 597 (1,214)
Difference between historical
cost depreciation charge
and actual depreciation
charge on the revalued amount 47 47
------- -------
Historical cost profit/(loss)
on ordinary activities
before taxation 644 (1,167)
======= =======
------- -------
Historical cost retained
profit/(loss)
For the year after
taxation and dividends 131 (1,615)
======= =======
Reconciliation of movements in shareholders' funds
for the year ended 30th April 2003
Unaudited
2003 2002
#'000 #'000
Profit/(loss) for the financial year 308 (879)
Dividends (224) (783)
------- -------
84 (1,662)
Other recognised gains and (72) (166)
losses relating to the year
Nominal value of shares issued - 2
Premium on shares issued - 20
Purchase of own shares for cancellation (2,259) -
------- -------
(2,247) (1,806)
Opening shareholders' funds 23,613 25,419
------- -------
Closing shareholders' funds 21,366 23,613
======= =======
Reconciliation of operating profit/(loss) to
net cash inflow from operating activities
for the year ended 30th April 2003
Unaudited
2003 2002
#'000 #'000
Operating profit/(loss) on
continuing activities 710 (1,006)
Depreciation and amortisation 1,324 1,240
Loss on sale of tangible fixed assets 45 31
Decrease in stocks 1,033 2,172
(Increase)/decrease in debtors (1,298) 1,295
(Decrease)/increase in creditors (174) 1,909
Exchange rate adjustments (113) (147)
------- -------
Net cash inflow from operating activities 1,527 5,494
======= =======
Notes to Preliminary Announcement 2003
1 Basis of accounting:
The accounts are prepared under the historical cost convention, as modified by
the revaluation of certain freehold properties and, in accordance with
applicable accounting standards. These policies have been applied consistently
throughout the year and the preceeding year.
2 Earnings/(loss) per share:
The calculation of basic earnings/(loss) per share is based on profit on
ordinary activities after taxation of #308,000 (2002 loss - #879,000) and the
weighted average number of shares in issue of 13,974,266 (2002 - 14,777,900).
Diluted earnings per share are the same as basic earnings per share in the
current year, because there is no dilution caused by share options outstanding
at the year end. This is due to the exercise price of these options exceeding
the average share price this year.
The calculation of diluted earnings per share in the prior year is based on
the loss after taxation of #879,000 and on 14,783,767 ordinary shares,
14,777,900 being the weighted average number of shares in issue, plus 5,867
being the weighted average number of shares that would be issued on the
conversion of all the dilutive potential ordinary shares into ordinary shares.
3 Exceptional items Unaudited
2003 2002
#000 #000
Cost of sales:
Stock provisions - 2,770
Administrative expenses:
Rationalisation costs - 538
Impairment charge 344 -
------- -------
344 3,308
======= =======
The stock provisions of #2,770,000 in 2002 represent management's assessment of
the additional write down in valuation of stock following the events of 11th
September 2001, whereby certain aircraft types have been retired by airlines.
The rationalisation costs in 2002 of #538,000 relate to redundancy and other
costs necessitated by the slowdown in the aviation market following the events
of 11th September 2001.
The impairment charge in 2003 relates to a re-assessment of the useful economic
life of purchased goodwill acquired in 1998.
4 The Annual General Meeting will be held at 16 Carlton Crescent,
Southampton, SO15 2ES on 3rd September 2003 at 12 Noon.
5 The results for the year ended 30th April 2003 are unaudited. The results
for the year ended 30th April 2002 do not constitute statutory accounts within
the meaning of section 240 of the Companies Act 1985, but have been derived from
the full audited financial statements for the year ended 30th April 2002 which
have been filed with the Registrar of Companies. The report of the auditors on
the financial statements for the year ended 30th April 2002 was unqualified.
6 Dividends
Unaudited
2003 2002
#'000 #'000
Paid:
Interim of 1.8p (2002 - 1.8p) per share 224 266
Proposed:
Final of nil (2002 - 3.5p) per share - 517
------- -------
224 783
======= =======
7 The annual report and accounts will be posted on 24th July 2003 to
shareholders registered at the close of business on 22nd July 2003.
This information is provided by RNS
The company news service from the London Stock Exchange
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