RNS Number:8306K
Richmond Foods PLC
08 May 2003
PRESS RELEASE
IMMEDIATE - Thursday, 8 May 2003
Richmond Foods - interim results for the 6 months ended 30 March 2003
Financial Highlights (figures in #000s) 6 months ended Year to
30 Mar 31 Mar +/- % 29 Sep 2002
2003 2002
Turnover 42,229 42,483 -0.6 116,699
Gross profit 9,504 9,285 + 2.4 30,510
Operating profit before exceptional costs * 723 209 + 245.9 10,239
Pre-tax (loss)/profit before exceptional costs * (199) (720) + 72.4 8,207
(Loss)/earnings per share before exceptional costs * (pence) (0.6) (2.2) +72.7 27.1
Dividend per share (pence) 0.5 0.5 4.5
*6 months ended 30 March 2003 - # nil (2002: #980,000)
* Moving towards winter profitability with increase in operating profit
of over #0.5 million.
* Sales picked up strongly in the second quarter when Richmond increased
its share of the take home ice cream sector to 25.6% from 23.3%.
* Sales from the soft ice cream business, now trading under the Nestle
Ice Creamery brand, exceeded initial expectations and will provide
further opportunities to grow impulse market share, currently 26.4%.
* As part of a #25 million three-year capital expenditure programme,
Richmond continues to invest heavily to improve operating efficiencies
and provide market leading innovation capability.
* Second half performance will benefit from sales and market share gains
from new branded and own-label product listings, a strong promotional
strategy and higher services levels.
Ross Warburton, Chairman of Richmond Foods, said: "The board believes that the
results for the full year should show a further improvement over those of 2002,
in line with expectations."
For further information contact:
James Lambert
Chief Executive, Richmond Foods plc
Mobile: 07850 702042
Simon Bloomfield or Ian Seaton
Bankside Consultants
Tel: 020 7444 4177 Tel: 020 7444 4157
Mobile: 07771 758517 Mobile: 07719 147471
Chairman's Statement
I am pleased to report that your company has made further progress over the last
six months, consolidating the considerable advances made in both the scale and
quality of our operations last year. In the six months to the end of March, the
seasonally weaker half of our reporting year, operating profits trebled to
#723,000 on sales of #42.2 million, much in line with expectations.
Year-on-year sales were marginally down on the same period last year but pre-tax
losses reduced by over #1/2 million to #199,000 from #720,000 after interest
charges of #922,000.
The interim dividend remains unchanged at 0.5p, and will be paid to shareholders
on the register at 16th May 2003 on 1st July 2003. This continues our
established policy of matching dividend payments with the incidence of earnings.
After a slow start to the year, against an unusually flat market background,
sales picked up strongly in the second quarter, particularly in the take home
sector of the market. Richmond increased its market share in take home to 25.6%,
compared to 23.3% for the same quarter last year, in a market which fell by
3.6%. The impulse market was down over the same period, in part due to the
later Easter holidays which last year fell in the first half. However, in the
second quarter, Richmond increased its share of the impulse market to 26.4%, the
only leading manufacturer to do so and reflecting the continued success of our
five major brands. In addition, sales from our soft ice cream business, now
trading under the Nestle Ice Creamery brand, have exceeded our initial
expectations and we believe that this will provide Richmond with further
opportunities to continue to grow share in the impulse market.
We have continued to invest heavily for the future at both our Leeming Bar and
Crossgates sites. This investment has expanded our warehousing facilities,
increased our capacity, and will improve our operating efficiencies going
forward as well as giving us market leading innovation capability. This is part
of a #25 million three year programme, referred to in my 2002 Annual Report
statement, which will support our ambition to become the largest ice cream
company in the UK.
Gearing at the half year was 164% as expected, close to the seasonal high of the
year and reflecting the cyclical stock peak. This is a very significant
reduction from last year's level of 220%, achieved despite deliberately
increased stock levels to improve customer service. This stock position will
unwind during the course of the rest of the financial year and we anticipate
that gearing will fall substantially by the year-end.
Our drive for growth in the second half of the year is to maintain market
leadership in bulk ice cream and ice lollies whilst increasing sales in the
luxury ice cream and individual portion ice cream sectors of the take home
market where we have a growing share. Overall, sales in the second half of the
year should benefit from a large number of new product listings achieved during
the course of the last 3 months, and a strong promotional strategy. We are also
confident that the achievement of higher service levels than last year will
materially improve our comparative performance. April's sales were similar to
last year's record levels and your board believes that the results for the full
year should show a further improvement over those of 2002, in line with
expectations.
Following the successful integration of the Nestle business during the course of
last year, the challenge now facing your company is to continue to drive
profitable organic growth. We will underpin this with a continued commitment to
investing in the future, in both our capital base and our people, who make
Richmond the successful business it is today. I thank them wholeheartedly for
their continued efforts.
W.R.Warburton
8 May 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
6 months ended 30 March 2003
Unaudited Unaudited Unaudited Unaudited Audited
26 weeks 26 weeks 26 weeks 26 weeks 52 weeks
30 March 31 March 31 March 31 March 29 September
2003 2002 2002 2002 2002
Note Total Exceptionals Pre-
Exceptionals
#'000 #'000 #'000 #'000 #'000
Turnover 42,229 42,483 42,483 116,699
Cost of
sales (32,725) (33,198) (33,198) (86,189)
-------- -------- ---------- ----------
Gross
profit 9,504 9,285 9,285 30,510
-------- -------- ---------- ----------
Operating
expenses (8,781) (9,076) (9,076) (20,271)
LTIP
charge 2 - - (376)
Exceptional
item - (980) (980) (980)
-------- -------- --------- ---------- ----------
Operating
profit /
(loss) 723 209 (980) (771) 8,883
Interest
payable and
similar
charges (922) (929) (929) (2,032)
-------- -------- --------- ---------- ----------
(Loss)/
profit on
ordinary
activities
before
taxation (199) (720) (980) (1,700) 6,851
Tax on
(loss)/
profit on
ordinary
activities 60 216 294 510 (1,620)
-------- -------- --------- ---------- ----------
(Loss) /
profit for
the
financial
period (139) (504) (686) (1,190) 5,231
Dividend 3 116 115 115 1,041
-------- -------- --------- ---------- ----------
(Loss)/
profit
transferred
(to)/from
reserves (255) (619) (686) (1,305) 4,190
-------- -------- --------- ---------- ----------
(Loss) /
earnings per
share 4 (0.6p) (2.2p) (3.0p) (5.2p) 22.9p
Fully
diluted
(loss) /
earnings per
share 4 (0.6p) (2.2p) (3.0p) (5.2p) 22.1p
CONSOLIDATED BALANCE SHEET
30 March 2003
Unaudited Unaudited Audited
30 March 31 March 29 Sept
2003 2002 2002
#'000 #'000 #'000
Fixed Assets
Intangible assets 5,386 5,324 5,551
Tangible assets 35,693 33,503 32,958
---------- ---------- ---------
41,079 38,827 38,509
---------- ---------- ---------
Current Assets
Stock 20,588 17,728 16,133
Debtors 20,842 20,174 22,167
Cash in hand 3 1 2,136
---------- ---------- ---------
41,433 37,903 40,436
---------- ---------- ---------
Creditors: amounts falling due in
less than one year (41,706) (37,541) (34,096)
---------- ---------- ---------
Net current (liabilities)/assets (273) 362 6,340
---------- ---------- ---------
Total assets less current
liabilities 40,806 39,189 44,849
Creditors: amounts falling due after (14,940) (18,836) (18,651)
more than one year
Provisions for liabilities and
charges (3,214) (3,171) (3,214)
---------- ---------- ---------
Net Assets 22,652 17,182 22,984
---------- ---------- ---------
Capital and reserves
Called up share capital 1,156 1,150 1,156
Share premium account 4,899 3,173 4,899
Capital redemption reserve 759 759 759
Merger reserve 2,982 2,982 2,982
Profit and loss account 12,625 8,810 12,880
---------- ---------- ---------
Shareholders' funds - equity 22,421 16,874 22,676
Minority interest - non-equity 231 308 308
---------- ---------- ---------
Capital employed 22,652 17,182 22,984
---------- ---------- ---------
CONSOLIDATED CASHFLOW STATEMENT
6 months ended 30 March 2003
Unaudited Unaudited Audited
30 March 31 March 29 Sept
2003 2002 2002
#'000 #'000 #'000
Net cash (outflow)/inflow from operating
activities (6,863) (5,554) 13,959
Net cash outflow from returns on
investments and servicing of finance (922) (929) (2,032)
Taxation (703) (158) (956)
Net cash outflow from capital expenditure (4,823) (3,041) (2,079)
Acquisition 0 (9,850) (9,850)
Equity dividends paid (926) (730) (845)
--------- --------- ---------
Net cash outflow before financing (14,237) (20,262) (1,803)
Net cash (outflow)/inflow from financing (3,016) 5,382 3,213
--------- --------- ---------
(Decrease)/increase in cash (17,253) (14,880) 1,410
--------- --------- ---------
Notes
1. The interim results have been prepared under the historical
cost convention and in accordance with applicable Accounting Standards using
accounting policies, which have been applied consistently.
2. No charge is currently made in respect of the Long Term
Incentive Plan in the first half of the financial year, as in previous years,
due to all profits currently arising in the second half of the financial year
and the difficulty in anticipating the relative total shareholder return, on
which the charge is based. This remains consistent with the approach currently
taken with the dividend policy, which also recognises the incidence of earnings.
3. The interim dividend of 0.5p (net) per Ordinary Share (2002:
0.5p) will be paid on 1 July 2003 to shareholders on the register at the close
of business of 16 May 2003.
4. The earnings per share and fully diluted earnings per share,
where appropriate, have been calculated on the basis of profit on ordinary
activities after tax and the following number of shares:
30 March 31 March 30 September
2003 2002 2002
Basic 23,129,659 22,579,876 22,771,897
Effect of options 903,167 769,214 949,194
24,032,826 23,349,090 23,721,091
5. The interim results for the two half years have not been
audited. The financial information contained in the interim accounts does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985. The information relating to the full year figures has been extracted from
the 2002 Annual Report and Accounts, which received an unqualified auditors'
report and have been delivered to the Registrar of Companies.
6. The interim report will be mailed to shareholders and copies
will be available at the registered office: Richmond House, Leeming Bar,
Northallerton, North Yorkshire, DL7 9UL.
This information is provided by RNS
The company news service from the London Stock Exchange
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