Final Results
March 12 2010 - 2:00AM
UK Regulatory
TIDMAGA
12th March 2010
FOR IMMEDIATE RELEASE
AGA RANGEMASTER GROUP PLC
2009 PRELIMINARY RESULTS
Year to 31st December 2009 2008
GBPm GBPm
Revenue 245.0 279.4
EBITDA (before non-recurring costs) 12.6 24.6
Operating profit before amortisation 0.1 12.4
Operating (loss) / profit (1.5) 11.1
Profit before tax 0.5 14.4
Basic earnings per share 2.5p 14.4p
Shareholders' equity 133.8 214.7
Net cash 28.0 5.8
Strategic and operational highlights
* Cash balances increased to GBP28.0 million from GBP5.8 million in the year
reflecting the emphasis placed on strong business processes, good working
capital management and on cash generation.
* The Group made a profit before tax in an extremely tough year for its core
product lines internationally.
* Markets improved as the year progressed. Rangemaster orders were up in the
year whilst AGA cooker orders were ahead in the last quarter.
* New products backed by strong commercial offers are designed to maintain
the momentum established at the end of 2009.
* The Group expects to contribute an additional GBP2 million this year and next
to the Group's pension scheme.
William McGrath, Chief Executive commented: "The generation of cash was the big
achievement of 2009 and that remains the focus given the caution needed in the
current market. Our lead indicators, however, are positive and after a slow
order intake at the start of the year, the prospects are encouraging heading
into the Spring."
Enquiries:
William McGrath, Chief Executive 0207 404 5959 (today)
Shaun Smith, Finance Director 01926 455 731 (thereafter)
Simon Sporborg / Charlotte Kenyon, Brunswick 0207 404 5959
AGA RANGEMASTER GROUP PLC
2009 PRELIMINARY RESULTS
CHAIRMAN'S AND CHIEF EXECUTIVE'S STATEMENT
Overview
The Group responded quickly and well to the downturn in the consumer markets
caused by the recession which made 2009 a tough year. The Group was well placed
to do so having maintained a net cash position after returning GBP140 million in
cash to shareholders in May 2008 following the well timed Foodservice disposal
at the end of 2007. The board prioritised remaining profitable and having more
cash at the end of the year than at the start thereby ensuring that the Group's
long-term financing arrangements organised in early 2008 remained unaltered.
The stable financial base meant that the Group was free to direct its energies
to work to integrate operations and to have a set of disciplined business
processes that apply across the Group. These steps helped to reduce costs in a
way that would be in the long-term interests of the Group and to sustain
product investment, positioning the business for an upturn.
Trading performance in 2009
2009 saw sharp falls in demand in the first half before levelling out and, in
some areas, strengthening later in the year. These trends were reflected in
first half sales down 18.8% and sales down 12.3% for the full year. This put
2009 revenues at GBP245.0 million down from GBP279.4 million in 2008. EBITDA (pre
non-recurring costs) fell from GBP24.6 million to GBP12.6 million. There was an
operating loss in the first half of GBP1.7 million and a small operating profit
in the second half. Non-recurring rationalisation costs were incurred in the
year of GBP3.6 million primarily from business integration costs and provisions
against the carrying value of properties no longer required after the
integration. With net finance income in the year and with pension credits
arising, there was an overall profit before tax in the year. Given the sharp
profit fall and the continuing market uncertainties the board concluded it
would not be appropriate to pay a dividend in respect of 2009.
Strategy for 2010
The 300 years of innovation we highlighted last year put us in good stead to
deal with the current economic cycle. The warmth felt towards our key brands
led by AGA came through strongly in the year - notably through the 300th
anniversary of the first smelting of iron ore with coke at the AGA foundry
which is where the Industrial Revolution began. Our confidence that the power
of our brands will drive strong performance remains. The market conditions of
2009, however, required us to modify our ambitions for the business in the
short-term and focus on cutting costs and cash generation to ensure we emerged
stronger from the recession. We now have new opportunities to improve further
our market positions.
Our key objectives are:
* To continue to grow and create new markets for our range cookers and cooker
/ boilers. The board sees energy management in the home - seen in new
Government initiatives to boost renewable energy - as a major theme for the
years ahead and believes that the product offering it has been developing
over the last decade is particularly well attuned to future consumer
requirements.
* To widen the position of range cookers in the UK and Ireland and on the
continent as being at the heart of family life and show that the look and
functionality of the range cooker brings benefits over built-in equivalents
which make up the larger part of the market.
* To become a significant force in the North American appliance market under
the AGA Marvel brand - highlighting the best of European style range
cooking and USA made undercounter refrigeration.
* To use the high level of consumer response we receive, to look to all our
brands to increase the overall sales opportunities in the home by effective
customer relationship management.
With our well managed financial position, we have the financial flexibility to
back our brands and to ensure that we use the capacity we have available to
best effect. The board's strategy remains to focus on being the major force in
the range cooker market internationally and to use that to attract consumers to
the wider product offering. We will enhance our marketing effort to support our
product introductions and will take market opportunities that saw the
acquisition of Mercury in 2009 and saw that of La Cornue, Heartland and Stanley
in earlier years.
We have to take into account our pension scheme to which we have already
provided GBP50 million in guarantees of contingent liabilities. We are finalising
funding arrangements with the trustees taking account of the 2008 actuarial
valuation. We expect to make additional payments of GBP2 million into the scheme
in 2010 and 2011. Total pension contributions could equate to GBP10 million per
annum from 2012 depending on the outturn of the 2011 actuarial valuation.
In achieving these objectives the Group is dependent on the skills and
commitment of its employees. It was an exceptionally difficult year in which
short-time working was needed in some factories and staff reductions were made.
The continuing enthusiasm and energy in the Group ensured that confidence grew
over the year. The board is, of course, grateful to all the employees for their
contributions. Helen Mahy left the board after six years. I should like to
thank her in particular for her important contribution, notably in the
development of our corporate governance practices.
Current trading
Economic uncertainties remain as markets seek to recover from the long and
difficult recession and against that background we remain cautious and
conservative in our trading and financial expectations. We have focused on
having strong business processes and disciplines. We will continue to drive
down costs and to generate cash as we did in 2009. In 2010 the Group will
continue to keep capital expenditure below depreciation and to reduce inventory
levels. The important benefits of integrating AGA and Rangemaster in the UK
will show through. Overall the key factor is the extent of the revenue
recovery.
The board has thus taken the right steps to ensure the Group is best placed to
take advantage of improved conditions while remaining cautious and able to
continue with the defensive approach of 2009 that saw costs cut and cash
generation set as a key driver. At present the board would hope that the
current year will show a real improvement. A decision on dividend payments will
be made when the earnings outlook becomes clearer.
The cold weather may have slowed short-term activity but it has also
highlighted the virtues of our heat storage and stove products and home survey
numbers are ahead of 2009 and confidence in the AGA shops is high. For
Rangemaster the start of the year has been slower after the VAT rate assisted
end of 2009 but the trend lines continue to be positive. For Fired Earth and
Grange improvement plans covering both broadening of markets and cost
reductions are well underway. Headed into the Spring the Group expects revenues
to run ahead of the prior year.
BUSINESS AND FINANCE REVIEW
Today's AGA Rangemaster Group has its strength in its much loved brands and
well-developed sales channels and structures. In 2008 we concentrated the
resources of the Group on our consumer operations as they have long-term
significant growth potential arising from investments made over many years. We
focus on producing products for the kitchen - the heart of family life - led by
our outstanding range cookers. Looking back, key decisions in the creation of
the Group had been to make AGA the centre stage brand in 2001 and the decision
to concentrate resources on Rangemaster and the premium range cooker market and
to sell off the lower added value brands in 2002. The AGA and Rangemaster
operations have since then worked increasingly closely together. In 2009 we
decided to integrate the operational management of the two businesses. This has
worked well for all the core processes from product identification and now for
manufacturing and distribution. It means that the Group has a single strong
core cooker operation in the British Isles - encompassing the Group's Irish
brand, Stanley.
We knew early in 2009 that it would be a difficult year but we remained
determined not to lose sight of the key objectives we had set in 2007 for the
development of the Group. We discuss below the progress made towards those
objectives and related 'Key Performance Indicators' ('KPI'). With strong links
across our international operations, the appliance-led activities are now well
assimilated and able to benefit from the economies of scale and the
customer-led opportunities of being part of a Group.
* KPI I : Grow sales of cast iron cookers
2007 2008 2009
19,600 15,400 12,150
Sales in 2007 have proved to be a peak - when a good level of Irish state
supported orders assisted Stanley sales. From mid 2008 it became clear that
customers were deferring expenditure because of weakening markets while at the
same time there was enthusiasm for our modernisation programmes. Our response
was to continue with the development themes of making the AGA programmable
across the range and adding upgrade options for products in the field. This
focus on customers who may have acquired their AGA many years ago was a major
new development making all existing owners potential new customers. The Group
does expect a significant number of owners to upgrade their existing model or
return their existing model for recycling and purchasing a new product over the
next few years. As consumers focused on what they found essential in their
home, we also emphasised how the warmth and reliability of cast iron cookers
was relevant to modern needs.
2009 also saw the Group increase its focus on Rayburn - and not only the
successful upgraded wood burning model but now a restyled oil series. Rayburn -
the all-in-one cooker/boiler - is not only a great cooker but its boiler - soon
to have condensing oil as well as gas models - makes it tremendously flexible
and an attractive alternative to standard boiler systems. With Rayburn
launching a second generation of control systems linking to renewable energy
sources, it is a highly relevant modern product. The objective is to ensure
Rayburn is seen as a clear option to consumers and their installers assessing
'heating and eating' options.
In Ireland cast iron cooker sales fell again and for the first time the stove
business was a similar revenue generator to cookers. Growth in stove sales in
Ireland and the UK is set to continue as consumers ensure that given energy
cost and availability concerns, that they have more than one energy source in
their homes.
The Group continues to make the foundry and factory complex in Shropshire more
efficient. It has ample capacity to produce above the targeted level.
* KPI II : Grow sales of Rangemaster made cookers
2007 2008 2009
76,000 67,900 60,600
Rangemaster and our wider range cooker brands all proved resilient - with
volumes lower but average selling prices up - and towards the end of 2009
orders were running well ahead of 2008 levels. Rangemaster was 14% down in
order values at the half year but full year order values were just ahead of the
prior year. The performance reflects the breadth of product and the
international reach of Rangemaster - with sales on the continent where there is
sustained expansion in France and now growth in Belgium and Holland and more
recently Germany, being up. Ireland, in contrast, was again well down. The
purchase of Mercury in August added a further modern style to our range and
with new products to come to market this year under the Mercury brand aimed
particularly at the independent kitchen specialist market - it is proving an
important addition.
The range cooker market in the UK is estimated to be around 113,000 units per
annum. The total UK equivalent premium built-in cooker market is larger. In
2010 Rangemaster and the related brands will emphasise the case for having the
highly functional, attractive range at the heart of modern family life. Our
efficient Leamington Spa factory has the capability of producing well above the
targeted volumes. With higher volume expectations, notably with anticipated
sales in North America of the new AGA Pro+ range, progress can be made in 2010
towards our performance objective.
Our cookware operations comprise AGA Cookware and Divertimenti and 2009 was a
good year. Divertimenti has a new catalogue and has the potential to grow
appreciably. The newly upgraded web shopping sites of both brands have been
successful.
* KPI III : Return Fired Earth and Grange to profit
Fired Earth specialises in tiles and paint. It had another tough year as
consumers deferred major projects. Sales on a like-for-like basis were down 17%
and did not show a marked improvement in the last quarter. Fired Earth has
become tightly run and is admired for its quality and style. To balance the
business, Fired Earth has set out to ensure it attracts consumers looking for
quality products for everyday purposes at appropriate prices. This development
of diffusion lines, combined with the new catalogue and the provision of
consumer credit, is expected to boost Fired Earth with a wider audience.
Additionally, a move into fitted kitchens, with Charles Smallbone designed
product with an affordable luxury message made by Grange, is an exciting
development. The first kitchen in the range attracted the Editor's prize at the
House Beautiful 2009 Awards and features in our Marylebone High Street store
and soon to be seen in our Adderbury and Cobham stores.
Grange similarly had a difficult year as revenues fell sharply - hitting the US
design centre business particularly hard. Short time working was in place in
the factories for much of the year. There was also a major production
rationalisation programme in Lyon, France with three factories being merged
into one. The confidence of the dealer base in the product range and prospects
of Grange continues to improve. Orders at the start of 2010 are more
encouraging. Particular effort will be made this year to raise Grange's UK
profile using the database resources of the Group.
One of the key strategic objectives and a key performance indicator for the
Group remains to see Grange and Fired Earth return to profit and for the
inter-relationships with the wider customer base to prove effective.
* KPI IV : International expansion with half the business to be outside the UK
The largest market for the Group is in the UK. The objective is to make
overseas markets account for over half the business - up from the current 36%.
On the continent we continue to progress where the Grange, La Cornue and Falcon
brands are all well established.
In North America the Group set about revisiting its approach - accelerated by
the three year decline in the appliance market which is now just bottoming out.
We have integrated our activities under AGA Marvel to provide our overall
market positioning as having available from Europe the best range cookers as
with refrigeration "at its best" - made in North America at our new Greenville,
Michigan factory. We are delighted with our new Greenville production facility
which became fully operational in Spring 2009 and has already received ISO 9001
and ISO 14001 quality and environmental accreditation. It is producing at a
substantially lower unit cost than was practical at our two previous
facilities. We would like to acknowledge the excellent support of the State of
Michigan in the successful delivery of the project. We have just launched the
AGA Pro+ in Canada at C$4,000 - a Rangemaster made product with a single oven
and self cleaning features aimed at a competitive price in the North American
market. This is backed by a suite of appliances including refrigerators and
dishwashers similar to that found in design centres in the UK. We feel that
dealers can look to our hot and cold offering to anchor their sales efforts.
We look to markets less mature than the UK for our products to provide
sustained sales impetus taking us towards our KPI.
* KPI V : Leveraging the Group's customer database
The Group's contact with its customers is generated by advertising, direct
marketing and through our retail operations. This continues through our service
support for the products in the field - many of which last for decades. This
all provides the Group with a large customer database in addition to that of
dealers selling the Group's products.
The Group has 670,000 customers on its UK database and nearly another 600,000
prospective customers who have contacted the Group. In 2009 the Group received
nearly 60,000 sales enquiries into the contact centre. It has nearly 200,000
customers contactable by email. It has 120,000 specifically AGA owners on the
database - of which nearly 18,000 were added in 2009.
Web traffic increased across the brands in 2009 with AGA receiving over 700,000
visitors and Fired Earth nearly 600,000 visitors. At the start of 2010, web
enquiries and brochure requests have increased markedly and for Fired Earth and
Rangemaster web traffic is up over 20%. The Group sees the development of
customer contact and the development of closer links in the eyes of customers
across the brands as an important source of growth in the years ahead.
* KPI VI : Return on sales
The Group believes that by raising efficiencies while also investing in product
that there is appreciable operational gearing available in the business. An
initial target of a return on sales of 10% was set in 2007. Some of the Group's
operations achieved returns above that - but the average was below 10% when the
recession impacted the Group. This has not deflected us from the belief that
the brands and their strength with identifiable customer bases is such that
returns at or above it - a peak cycle return on sales target is 12% - remain a
reasonable expectation.
* Raising efficiencies across the Group to improve operational gearing
During the recession the Group has accelerated plans to cut costs, raise
efficiencies and improve operational gearing. In particular, structures have
been streamlined further - as with AGA and Rangemaster and in the North
American operations - production facilities integrated - as for AGA Marvel and
Grange. Company-wide procurement strategies have helped control costs. Over the
last two years the Group has reduced the cost base by over GBP9 million through
such measures. In addition to major structural programmes it continues to
identify and implement a comprehensive programme of process improvement
initiatives which senior managers have identified.
* Home energy management and new product investments
An underlying theme for the Group is investing in new product. A key area is
looking into home energy management. The Group has the background and the
technologies to play an important part in the changing approach to energy
management in the home. The Government's new initiative to boost the renewable
energy market will further stimulate interest. The electric AGA uses a small
amount of energy over a long period and can store energy. This works well with
the intermittent nature of wind and solar micro generation. The Rayburn is
primarily an all-in-one cooker and boiler. Its burners can use biofuels : we
have field trials with methane produced from biomass. We are now linking
Rayburns with wood burning stoves and solar collectors in a comprehensive home
heating package. Our investment programmes align our products to the renewables
markets as they develop. We aim to make our products more flexible -
future-proofing purchasers so that they can, if not immediately then in due
course, take advantage of the rapidly increasing output of micro generation and
of reliability of non-fossil fuels.
Consumers are concerned to ensure that their homes remain warm and comfortable
and that they have reliable energy sources throughout the year. This means that
having more than one energy source in the home is particularly attractive. We
expect the rapid growth in stove sales to continue. We sold over 20,000 stoves
in 2009 and they are now the core activity of Stanley in Ireland and they are a
growing part of sales in the UK.
Pension scheme funding
The Group continues to consider carefully its obligations to its defined
benefit pension scheme which is large, reflecting the Group's long industrial
history in the Midlands. The scheme has around 14,000 members of which circa
650 are current employees.
The triennial valuation as at 31st December 2008 is close to finalisation. It
is likely to show a deficit of well over GBP100 million at a date when there was
a GBP57.5 million surplus on an accounting basis. Rolled forward a year to 31st
December 2009, the actuarial deficit is considered to be potentially around GBP50
million above the accounting deficit of GBP40.5 million. The Group has previously
provided GBP50 million of guarantees in support of the Group's potential
obligation to the scheme in 2020. The Group currently expects to be asked to
contribute an additional GBP2 million per annum in 2010 and 2011. From 2012 the
Group expects to be asked to contribute around GBP10 million annually to meet the
current service cost and deficit contributions or to add to the guarantees
already provided. The 2011 triennial valuation is expected to be concluded
before these cash contributions or additional guarantees are required.
The Group continues to work hard and closely with the trustee of the scheme to
ensure that the obligations to members are met and the costs to the Group are
carefully monitored and managed as the scheme moves towards the targeted
self-sufficiency position in 2020.
As part of the management of pension costs, following consultations, the
current member pensionable salaries were frozen. This gave rise to a
curtailment gain in 2009 against the previous IAS 19 valuation assumptions for
future salary inflation when applied to higher paid employees of GBP3.8 million
and will give rise to a curtailment gain in 2010 of around GBP15 million when
applied to all other current members.
The Group would like to reduce the contingent risks the scheme creates - should
markets make that sensible economically for all relevant parties.
Finance strategy
The Group maintains its conservative approach to finances in light of the
difficult markets and the scale of the Group's pension scheme. The Group looked
to maintain profits during the recession while investing carefully in product
for the future.
The Group had moved to a net cash position at the end of 2007 and we took
further action to manage the business through a severe economic downturn. We
set the objective of having more cash at the end of the year than at the start.
It is, therefore, pleasing against this background to report cash of GBP28.0
million compared to GBP5.8 million. This gives us a strong position upon which we
can build.
Revenue
Group revenues decreased by 12.3% to GBP245.0 million from GBP279.4 million in
2008. In constant currency the revenue decrease was 15.7%. Second half revenues
of GBP127.2 million were down 5.3% from GBP134.3 million which was much improved on
the first half when revenues of GBP117.8 million were down 18.8% from the GBP145.1
million reported in the first half of 2008. Of total revenues 36% were outside
the UK.
Operating profit
The operating loss for the year was GBP1.5 million (2008: profit GBP11.1 million).
The first half loss of GBP1.7 million was partly offset by a small second half
profit. The results for the year reflect the significant fall in revenues. We
took action early to address the revenue decrease by reducing headcount by a
further 200 to below 2,600 following on from a reduction of around 400 in 2008.
Non-recurring costs in the year totalled GBP3.6 million (2008: GBP5.3 million). The
further reorganisations undertaken in the year were at a cost of GBP2.8 million.
Taken together, cost cutting measures implemented in the last two years have
led to cost savings of over GBP9 million.
Finance income
Net finance income for the year was GBP0.2 million (2008: GBP3.2 million). The
movement was principally due to lower interest income resulting from the
substantial reduction in cash balances following the GBP140 million cash return
to shareholders in 2008, lower interest rates on cash deposits offset by GBP0.8
million of interest on a tax repayment received.
Taxation
The Group's tax charge was nil on profits before tax of GBP0.5 million. The Group
considered the level of tax paid for years yet to be finalised with the revenue
and sought a tax repayment which was received in the second half. There was
altogether a net tax repayment of GBP4.0 million relating to prior tax years.
Moving forward the Group expects to pay tax at around the UK standard rate of
28% once the benefit of tax losses arising during the recession have been
utilised.
Earnings per share
Basic earnings per share were 2.5 pence (2008: 14.4 pence) based on an average
number of shares in issue of 69.2 million (2008: 85.9 million).
Dividends
While no interim dividend has been paid or a final dividend proposed for 2009,
the board will continue to keep this under review and intends to return to
paying a dividend as soon as it is appropriate to do so.
Cashflow
One of the most encouraging features of the year was the cashflow from
operational activities which at GBP25.3 million (2008: GBP4.5 million) was GBP20.8
million higher. The increase was mainly due to action taken in the first part
of the year to destock in response to the downturn - the value of inventory
held by the Group fell in the year by GBP15.3 million. Particular focus was also
placed on debtor and creditor management across the Group. The net inflow from
working capital was GBP22.9 million in the year (2008: outflow of GBP8.9 million).
New capital expenditure projects in the year totalled GBP3.4 million which makes
the net cash flow on capital items, including intangibles, GBP8.1 million in the
year. This figure includes the GBP2.8 million final payment on the AGA Marvel
factory in the US. The depreciation and amortisation of intangibles charge in
2009 was GBP8.7 million (2008: GBP8.1 million).
The resulting net cash position at 31st December 2009 was GBP28.0 million (2008:
GBP5.8 million).
CONSOLIDATED INCOME STATEMENT
Year to 31st December
2009 2008
GBPm GBPm
Revenue 245.0 279.4
Net operating costs (246.5) (268.3)
___________________________________________________________________________________
Group operating (loss) / profit (1.5) 11.1
Net pension credit 5.4 5.4
Non-recurring cost (3.6) (5.3)
___________________________________________________________________________________
Profit before net finance income and income tax 0.3 11.2
Finance income 1.1 4.8
Finance costs (0.9) (1.6)
___________________________________________________________________________________
Profit before income tax 0.5 14.4
Income tax expense - (2.7)
___________________________________________________________________________________
Profit for year 0.5 11.7
___________________________________________________________________________________
Profit attributable to:
Equity holders of the parent 1.7 12.4
Minority shareholders (1.2) (0.7)
___________________________________________________________________________________
Profit for year 0.5 11.7
___________________________________________________________________________________
Earnings per share p p
Basic 2.5 14.4
Diluted 2.5 14.4
___________________________________________________________________________________
p p
Dividend per share - 4.0
Cash return - 121.0
___________________________________________________________________________________
All operations are continuing.
CONSOLIDATED STATEMENT OF COMPREHENSIVE (LOSSES)/lNCOME
Year to 31st December 2009 2008
GBPm GBPm
Profit for year 0.5 11.7
_________________________________________________________________________________________
Exchange adjustments on hedge of net investments 1.6 (3.2)
Exchange differences on translation of foreign operations (9.3) 23.0
Actuarial losses on defined benefit pension schemes (104.5) (28.7)
Deferred tax on actuarial losses 29.3 7.9
_________________________________________________________________________________________
Other comprehensive losses for the year (82.9) (1.0)
_________________________________________________________________________________________
Total comprehensive (losses) / income for the year (82.4) 10.7
_________________________________________________________________________________________
Attributable to:
Equity holders of parent (81.1) 11.0
Minority interests (1.3) (0.3)
_________________________________________________________________________________________
Total comprehensive (losses) / income for the year (82.4) 10.7
_________________________________________________________________________________________
CONSOLIDATED BALANCE SHEET
As at 31st December 2009 2008
GBPm GBPm
Non-current assets
Goodwill 66.9 70.9
Intangible assets 23.2 24.0
Property, plant and equipment 50.8 58.7
Retirement benefit surplus - 58.7
Deferred tax assets 21.7 5.5
__________________________________________________________________________________
162.6 217.8
__________________________________________________________________________________
Current assets
Inventories 46.0 63.5
Trade and other receivables 31.7 39.9
Current tax assets 1.8 2.1
Cash and cash equivalents 45.0 42.9
__________________________________________________________________________________
124.5 148.4
Assets held for sale 3.1 1.9
__________________________________________________________________________________
Total assets 290.2 368.1
__________________________________________________________________________________
Current liabilities
Borrowings (1.3) (9.7)
Trade and other payables (63.2) (66.8)
Current tax liabilities (18.4) (11.6)
Current provisions (2.4) (4.3)
__________________________________________________________________________________
(85.3) (92.4)
__________________________________________________________________________________
Net current assets 39.2 56.0
__________________________________________________________________________________
Non-current liabilities
Borrowings (15.7) (27.4)
Retirement benefit obligation (40.5) (1.2)
Deferred tax liabilities (6.1) (21.9)
Provisions (8.3) (8.7)
__________________________________________________________________________________
(70.6) (59.2)
__________________________________________________________________________________
Total liabilities (155.9) (151.6)
__________________________________________________________________________________
Net assets 134.3 216.5
__________________________________________________________________________________
Shareholders' equity
Share capital 32.5 32.5
Share premium account 29.6 29.6
Other reserves 85.8 95.5
Retained (losses) / earnings (14.1) 57.1
__________________________________________________________________________________
Equity attributable to equity holders of the parent 133.8 214.7
Minority interest 0.5 1.8
__________________________________________________________________________________
Total equity 134.3 216.5
__________________________________________________________________________________
CONSOLIDATED CASH FLOW STATEMENT
Year to 31st December 2009 2008
GBPm GBPm
Cashflows from operating activities
Profit before income tax 0.5 14.4
Reconciliation of profit before income tax to net cashflows:
Net finance income (0.2) (3.2)
Depreciation of property, plant and equipment 7.1 6.8
Impairment of assets held for sale 0.8 -
Amortisation of intangible assets 1.6 1.3
Loss on disposal of property, plant and equipment 0.1 0.3
Share based payments expense 0.2 -
Decrease / (increase) in inventories 15.3 (3.6)
Decrease in receivables 5.6 5.4
Increase / (decrease) in payables 2.0 (10.7)
(Decrease) / increase in provisions (1.3) 0.5
Increase in pensions (6.4) (6.7)
___________________________________________________________________________________
Cash generated from operating activities 25.3 4.5
Finance income 1.1 5.0
Finance costs (0.9) (1.6)
Tax receipt/(payment) 4.0 (2.7)
___________________________________________________________________________________
Net cash generated from operating activities 29.5 5.2
___________________________________________________________________________________
Cash flows from investing activities
Disposal proceeds from sale of subsidiaries less costs (0.4) (2.4)
Purchase of Mercury (0.5) -
Purchase of property, plant and equipment (6.2) (10.2)
Expenditure on intangibles (1.9) (3.3)
Proceeds from disposal of property, plant and equipment - 0.5
___________________________________________________________________________________
Net cash used in investing activities (9.0) (15.4)
___________________________________________________________________________________
Cash flows from financing activities
Dividends paid and cash returned to shareholders - (151.2)
Net proceeds from issue of ordinary share capital and costs of
share consolidation - (0.1)
Repayment of borrowings (20.5) (1.5)
New bank loans raised 2.6 22.7
___________________________________________________________________________________
Net cash used in financing activities (17.9) (130.1)
___________________________________________________________________________________
Effects of exchange rate changes (0.5) 1.7
___________________________________________________________________________________
Net increase / (decrease) in cash and cash equivalents 2.1 (138.6)
Cash and cash equivalents at beginning of year 42.9 181.5
___________________________________________________________________________________
Cash and cash equivalents at end of year 45.0 42.9
___________________________________________________________________________________
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year to 31st December 2009
Equity attributable to equity holders of the parent
Share Share Other Retained Total Minority Total
capital premium reserves earnings interests equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
At 1st January 2009 32.5 29.6 95.5 57.1 214.7 1.8 216.5
_________________________________________________________________________________________
Comprehensive income
Profit / (loss) for the year - - - 1.7 1.7 (1.2) 0.5
Other comprehensive (losses)/
income:
Exchange adjustments on
hedge of net investments - - 1.6 - 1.6 - 1.6
Exchange differences on
translation of foreign operations - - (9.2) - (9.2) (0.1) (9.3)
Actuarial losses on defined
benefit pension schemes - - - (104.5) (104.5) - (104.5)
Deferred tax on actuarial losses - - - 29.3 29.3 - 29.3
_________________________________________________________________________________________
Total comprehensive losses for
the year to 31st December 2009 - - (7.6) (73.5) (81.1) (1.3) (82.4)
Transfer between reserves - - (2.1) 2.1 - - -
Share based payments - - - 0.2 0.2 - 0.2
__________________________________________________________________________________________
At 31st December 2009 32.5 29.6 85.8 (14.1) 133.8 0.5 134.3
__________________________________________________________________________________________
Year to 31st December 2008
Equity attributable to equity holders of the parent
Share Share Other Retained Total Minority Total
capital premium reserves earnings interests equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
At 1st January 2008 32.4 68.8 37.1 216.7 355.0 2.1 357.1
___________________________________________________________________________________________
Comprehensive income
Profit / (loss) for the year - - - 12.4 12.4 (0.7) 11.7
Other comprehensive (losses)
/income:
Exchange adjustments on hedge
of net investments - - (3.2) - (3.2) - (3.2)
Exchange differences on
translation of foreign operations - - 22.6 - 22.6 0.4 23.0
Actuarial losses on defined
benefit pension schemes - - - (28.7) (28.7) - (28.7)
Deferred tax on actuarial losses - - - 7.9 7.9 - 7.9
___________________________________________________________________________________________
Total comprehensive gains/
(losses) for the year to 31st
December 2008 - - 19.4 (8.4) 11.0 (0.3) 10.7
Dividends and cash return - - - (151.2) (151.2) - (151.2)
Shares issued 0.1 0.2 - - 0.3 - 0.3
Costs associated with share
consolidation - (0.4) - - (0.4) - (0.4)
Transfer between reserves - (39.0) 39.0 - - - -
___________________________________________________________________________________________
At 31st December 2008 32.5 29.6 95.5 57.1 214.7 1.8 216.5
___________________________________________________________________________________________
SEGMENTAL ANALYSIS
An operating segment is a component of an entity that engages in business
activities from which it may earn revenues and incur expenses, whose operating
results are regularly reviewed by the chief executive and his senior management
team to make decisions about the resources to be allocated to the segment and
assess its performance and for which discrete financial information is
available.
There are two operating segments, namely AGA (which comprises the brands and
operations of AGA, Fired Earth, Waterford Stanley and Grange) and Rangemaster
(which comprises the brands and operations of Rangemaster, AGA Marvel,
Heartland, La Cornue and Divertimenti).
The two operating segments are considered to meet the aggregation criteria of
IFRS 8 in full and so the directors consider that there is only one aggregated
reportable segment, this is consistent with the core principle that the result
is to provide information that enable users to evaluate the nature and
financial effects of the business activities in which the Group engages and the
economic environments in which it operates.
Aggregation is based on an assessment that the operating segments have similar
economic characteristics, products and services, production processes and types
and classes of customer and methods used to distribute products. The directors
consider the activities of the aggregated reportable segment to be the
manufacture and sale of range cookers and related home fashions product.
Therefore the majority of the disclosures as required under IFRS 8 have already
been given in these financial statements.
Segment assets include property, plant and equipment, intangibles, inventories,
retirement benefit surpluses and receivables. Cash borrowings and taxation are
not included. Non-current assets exclude retirement benefit surplus and
deferred tax assets.
Entity wide disclosures in respect of revenues from external customers and
non-current assets are provided below.
2009 2008
Total Non- Total Non-
segment current segment current
Revenue assets assets Revenue assets assets
GBPm GBPm GBPm GBPm GBPm GBPm
United Kingdom 156.5 116.3 69.0 175.3 191.0 73.6
North America 30.6 43.2 30.5 40.0 55.0 34.4
Europe 53.8 62.2 41.4 60.0 71.6 45.6
Rest of World 4.1 - - 4.1 - -
______________________________________________________________________________________________
Total operations 245.0 221.7 140.9 279.4 317.6 153.6
Tax - 23.5 - - 7.6 -
Cash - 45.0 - - 42.9 -
______________________________________________________________________________________________
Total 245.0 290.2 140.9 279.4 368.1 153.6
______________________________________________________________________________________________
NOTES
1. Dividends
The directors are not recommending a final dividend in respect of the financial
year ended 31st December 2009 (2008: nil). No interim dividend was paid (2008:
4.0p). In 2008 a return of cash of GBP1.21 per share was paid during the year.
2. Exchange rates
The income statements of overseas subsidiaries are translated into sterling
using average exchange rates and balance sheets are translated at year end
rates.
3. Net pension credit
2009 2008
GBPm GBPm
Current service cost of final salary scheme (2.3) (3.5)
Curtailment gain on freezing of certain final salaries 3.8 -
Pensions returns on assets less interest costs on liabilities 3.9 8.9
___________________________________________________________________________________
Net pension credit 5.4 5.4
___________________________________________________________________________________
4. Income tax
2009 2008
GBPm GBPm
United Kingdom corporation tax based on a rate of 28.0%
(2008: 28.5%):
Current tax on income for year (1.6) 1.5
Adjustments in respect of prior years 3.5 2.6
___________________________________________________________________________________
United Kingdom corporation tax 1.9 4.1
Overseas current tax on income for year 1.1 1.4
___________________________________________________________________________________
Total current tax charge 3.0 5.5
___________________________________________________________________________________
United Kingdom deferred tax credit (0.8) (1.6)
Overseas deferred tax credit in year (2.2) (1.2)
___________________________________________________________________________________
Total deferred tax credit (3.0) (2.8)
___________________________________________________________________________________
Total United Kingdom tax 1.1 2.5
Total overseas tax (1.1) 0.2
___________________________________________________________________________________
Total income tax - 2.7
___________________________________________________________________________________
5. Earnings per share
2009 2008
GBPm GBPm
Earnings
Profit after tax 0.5 11.7
Minority interests 1.2 0.7
__________________________________________________________________________________
Profit attributable to equity shareholders - for basic
and diluted EPS 1.7 12.4
__________________________________________________________________________________
Weighted average number of shares in issue million million
For basic EPS calculation 69.2 85.9
Dilutive effect of share options and Long-Term Incentive Plan - 0.2
__________________________________________________________________________________
For diluted EPS calculation 69.2 86.1
__________________________________________________________________________________
Earnings per share p p
Basic 2.5 14.4
Diluted 2.5 14.4
__________________________________________________________________________________
6. Non-recurring cost
The GBP3.6m non-recurring cost relates to GBP2.8m of predominantly redundancy and
reorganisation programmes across the Group, primarily integration costs at AGA
Rangemaster and factory rationalisation programmes at AGA Marvel and Grange and
GBP0.8m of impairment of assets now held for sale in respect of certain property
assets no longer occupied by the Group.
7. Post balance sheet event
A Deed of Amendment was signed on 12th January 2010 in respect of freezing
pensionable salaries for those members whose salaries were not frozen in 2009.
A curtailment gain to be calculated by Towers Watson, the actuary, in respect
of liabilities accrued to date of around GBP15m is expected to arise in 2010.
2010 Financial calendar
Annual General Meeting 7th May 2010
2010 half year end 30th June 2010
The financial information set out in this announcement does not constitute the
Company's statutory accounts for the years ended 31st December 2009 and 2008.
The financial information within this announcement is prepared in line with the
accounting policies presented within the Company's statutory accounts.
Statutory accounts for 2008 have been delivered to the Registrar of Companies
and those for 2009 will be delivered following the Company's Annual General
Meeting. The Company's auditor has reported on these accounts; its reports were
unqualified and did not contain statements under section 498 of the Companies
Act 2006.
END
AGA Rangemaster (LSE:AGA)
Historical Stock Chart
From Jun 2024 to Jul 2024
AGA Rangemaster (LSE:AGA)
Historical Stock Chart
From Jul 2023 to Jul 2024
