TIDMAGA
RNS Number : 5362Z
Aga Rangemaster Group PLC
08 March 2013
8(th) March 2013
FOR IMMEDIATE RELEASE
AGA RANGEMASTER GROUP PLC
2012 FULL YEAR RESULTS
GROWTH IN PROFITS ACHIEVED AND DEVELOPMENT PLATFORMS
ESTABLISHED
Year to 31(st) December 2012 2011
GBPm GBPm %
Continuing operations
Revenue 244.6 250.9 (2.5)
EBITDA (before non-recurring
costs) 17.5 16.5 6.1
Operating profit 6.5 6.1 6.6
Profit before tax 8.4 7.5
Basic earnings per share 10.0p 18.8p
Underlying earnings per share 7.1p 7.1p
Total equity 141.2 167.7
Total dividend - 1.9p
Net cash 5.5 31.3
Strategic and operational highlights
-- Continued growth in profits.
-- Sales of AGA cookers; Fired Earth tiles and Marvel
refrigerators in North America showing encouraging progress.
-- Cost and efficiency programmes remain pre-requisites to
driving profitability in flat core markets.
-- New pension financing and banking agreements finalised in
November provide clear, stable platform on which to build. Net cash
position maintained after one-off pension contribution made.
-- International investments and collaborations - such as that
in China - provide a framework for more rapid expansion.
-- Current initiatives expected to build sales momentum after a
slow January and with February more encouraging.
William McGrath, Chief Executive commented: "2012 was a year
which required the most determined efforts to achieve profit
growth. While a market upturn in the near future is unlikely our
prospects are good. We have heritage brands with contemporary
relevance which creates tremendous opportunities in both
established and new markets for us. With major marketing
initiatives imminent we expect to see greater impetus in the coming
months."
Enquiries:
William McGrath, Chief Executive 020 7404 5959 (today)
Shaun Smith, Finance Director 01926 455 731 (thereafter)
Simon Sporborg / Charlotte 020 7404 5959
Winsley (Brunswick)
'How the AGA cooker became an icon' - the story of the
extraordinary team behind the rise of the AGA brand in the 1930s is
published today.
AGA RANGEMASTER GROUP PLC
2012 FULL YEAR RESULTS
CHAIRMAN'S AND CHIEF EXECUTIVE'S STATEMENT
Overview
The strength of our product offering and the efficiencies of our
operations increased further in 2012, but there was little respite
to the long running weakness of the consumer markets in which we
operate. We are, therefore, pleased that we were able to increase
profitability once again even though overall revenues fell by GBP6
million. At the same time we achieved significant progress in
reaching an agreement with the trustee of the Group's main pension
scheme on the funding needs of the scheme through to the end of
2021, and on the longer term plans for the scheme. These steps
enabled us to finalise a new financing structure, which should
ensure that the exciting brands within the Group can now capitalise
on development opportunities to show exactly what they can achieve
in international markets.
Key features of the year were:
The rise in operating profit pre-amortisation from GBP8.0
million to GBP8.6 million and from GBP6.1 million to GBP6.5 million
after amortisation. These results were achieved on revenues which
fell from GBP250.9 million to GBP244.6 million.
We retained a good net cash position. During the year we made
contributions and deficit recovery payments into the Group's main
pension scheme totalling nearly GBP20 million, and paid GBP5.2
million after a final German court judgement on the buyout value
placed on minority shares in a German company acquired in 1998. At
the year end the Group still had net cash of GBP5.5 million
compared with GBP31.3 million a year before. There are no deficit
recovery payments due to the pension scheme in 2013 or 2014.
Alongside our market-leading position in the UK, our products
are finding new, fast-growing international markets. Our reciprocal
collaboration with the Chinese group Vatti shows a way forward as
we look to leverage our brands, our excellent product development
programmes and distribution structures more effectively.
We continued to address parts of the business that have
struggled during the recessionary period. The sharp reduction in
losses at Fired Earth and its continuing momentum highlight the
benefits from such business turnarounds.
Sales in our core markets are linked to the level of housing
transactions, and those levels are beginning to edge up, helped by
the onus the Government are placing on the housing and construction
sectors to generate growth. However, current trading conditions
continue to be flat. This means that our additional focus on
strategic positioning in international markets is likely to prove
crucial to delivering renewed momentum.
We commented in November that with the pension scheme funding
agreement, the board will only propose a dividend to be paid where
specific agreement is reached with the trustee of the Group's main
pension scheme. There is no final dividend proposed for 2012.
Strategic progress
Our objective is to be a market leader internationally in the
premium range cooker markets in which we operate, and capitalise on
that position to sell a broader range of home and kitchen
orientated products. As these consumer markets have been quiet in
recent years, we continue to concentrate on efficiency gains and
cost control measures. Thus while revenues have stagnated, we have
seen profits stabilise and then edge forward without a recovery in
activity levels to anywhere close to levels of five years ago.
Of our cast iron cooker brands, AGA had an encouraging year
while the cooker/boiler lines Rayburn and Stanley less so. Total
cast iron sales at 10,300 were down on the 11,000 units last year
and well down on the peak years of 2006/2007 when sales were 19,600
units. Electric models dominated for AGA, accounting for almost two
thirds of sales and with AGA Total Control now available in 5 oven
form as well as 3 ovens we expect the move to electric to continue.
The message is that the modern AGA cooker 'works for you', putting
the owner in control of costs, cooking quality and the warmth of
the home. We are now looking to take the critical step of growing
our export markets, offering a straightforward product proposition
built around flexibility of operation and ease of installation and
maintenance. Rayburn and Stanley have also produced restated
consumer propositions around their use of wood and its link to
multi fuel energy management in the home - themes with great
long-term potential.
There has been some range rationalisation and a concentration on
Coalbrookdale as the production source for cast iron range cookers,
with wood burning cookers and stoves - a rapidly expanding category
- produced at Waterford Stanley in Ireland.
For Rangemaster, 2012 was a satisfactory year even though cooker
volumes overall fell back to just below 60,000 units from 62,000 in
a market in which the lower value segments did best. Our volumes
were significantly below the peak of 2007 of 76,000. We still saw
our average unit selling price edge ahead even though average
market prices fell and we retained a UK market share of over 50% by
value. 27% of Rangemaster revenue was outside the UK (2011:
25%).
In North America, we saw a modest pickup in volumes for our
undercounter refrigerators - a noteworthy achievement as we had
lost a major OEM account in the prior year. Our segmentation
between Marvel and Marvel Professional Series worked well enabling
us to compensate for this loss. We have an improved distribution
base and a widened direct customer list. There is now quite a
significant change in underlying sentiment in the premium appliance
sector and an expectation of volume growth ahead.
Our home fashions businesses have for some years seen weak
returns in slow markets. Fired Earth achieved a far better result
in 2012 cutting operating losses substantially and the trend lines
in the business are the best for some years led by the tremendous
tile offering. For Grange, the advent of 'My Grange' is designed to
be the trigger for a similar bounce back, although at present with
the American operation still declining in revenue terms, the
business position is particularly difficult and further cost
reduction steps are being made.
What we are yet to see coming through in 2012 is the
strategically important shift in the UK/international balance of
business with 37% of the revenues still generated outside the UK -
short of the targeted 50%. The longer term importance of the
strategic links with groups like Vatti of China and with product
supplied to and sourced from the Chinese markets are crucial in
delivering on the plan. More immediately we also expect North
America to be the fastest growing market for us in the year
ahead.
The strength of the Group's heritage as an innovator and how
that record can be relevant today was key in 2012. We have great
stories from Britain to take to the world - a world enthusiastic
for premium quality British made goods.
Current trading
The pressures on consumers have reduced the number of house
moves and larger improvement initiatives. These factors have
impacted our operations for some years, and we have to prepare for
a continuation of the flat markets we have been seeing. That in
turn is reflected in cost reduction measures already underway, most
notably seen in further rationalisation programmes involving
Waterford Stanley in Ireland and Grange in North America. We are at
the same time determined to allocate resources to obtain the best
returns from the product innovations of recent years, through which
we can establish positions in faster growing markets whereby we can
make use of the operational gearing available within the
businesses.
So far this year we have seen a slow January and a positive
February. There is a notable pick up against last year for AGA
Marvel in North America and for Fired Earth. AGA orders are flat
and Rangemaster orders have trended down pending the sales and
marketing initiatives planned for this spring. The cost and revenue
initiatives we have taken suggest that 2013 will see more progress
and we look forward with some confidence.
Revenue
Group revenues decreased by 2.5% to GBP244.6 million from the
GBP250.9 million reported in 2011. On a constant currency basis
revenues were down 1.3% as the Euro weakened during the year.
Second half revenues of GBP125.4 million were 3.2% down (2011:
GBP129.5 million) and compared with first half revenues of GBP119.2
million, down 1.8% on the GBP121.4 million reported in the first
half of 2011. Of total revenues 37% were outside the UK (2011:
37%).
Operating profit
The operating profit for the year was GBP6.5 million, up from
the operating profit of GBP6.1 million reported in 2011. The second
half profit of GBP5.0 million followed on from a first half profit
of GBP1.5 million as the Group benefitted more fully from the
operational efficiencies implemented since 2008. In 2009 revenues
were GBP245.0 million and the Group made an operating loss of
GBP1.5 million - the 2012 results demonstrate the significant
progress made in profitability terms on the same level of
revenue.
Non-recurring costs
The non-recurring costs amounted to GBP1.7 million and arise
from the reorganisation of our AGA Rangemaster distribution
operations and retail structures. In 2011 non-recurring costs were
GBP2.1 million, the benefits of which are now coming through.
Finance costs
Net finance costs for the year were GBP0.2 million (2011: GBP0.4
million finance income). During the year the average interest rate
on cash deposits was 0.4% and over 1% on borrowings, which was
primarily the interest cost of currency loans held for hedging
purposes.
Profit before tax
Profit before tax in the year was GBP8.4 million (2011: GBP7.5
million).
Taxation
The Group had a tax charge of GBP1.6 million (2011: GBP5.4
million tax credit) on profits before tax of GBP8.4 million. The
additional deficit recovery contributions paid into the pension
scheme made cash tax payable minimal.
Moving forward the Group expects the tax rate to be slightly
above the UK standard rate of 23% from 1(st) April 2013 and the
impact of the deficit recovery contributions will significantly
reduce cash tax payments.
Earnings per share
Basic earnings per share on continuing operations is 10.0 pence
(2011: 18.8 pence) based on an average number of shares in issue of
69.3 million (2011: 69.3 million). Adjusted underlying earnings per
share (excluding pension credits and non-recurring costs and based
on a standard UK tax rate) were 7.1 pence (2011: 7.1 pence).
Dividends
The directors are not recommending a final dividend. This
follows the agreement with the trustee of the Group's main pension
scheme on the funding of the scheme following the 2011 actuarial
valuation. This means no dividends are to be paid in relation to
the 2012 results (2011: 1.9 pence per share). The cash cost of the
final 2011 dividend paid in June 2012 was GBP0.8 million (2011:
GBP1.2 million).
Discontinued operations
The post tax profit from discontinued operations was GBPnil in
2012. In 2011 the post tax profit from discontinued operations of
GBP2.7 million included a tax credit following the agreement on
prior year tax returns of GBP5.7 million and a charge of GBP3.0
million to adjust continuing provision levels after a German appeal
court provided a judgement on the value of the minority interest in
a company acquired by the Group in 1998.
Cash flow
The Group has continued with its disciplined approach to cash
management. Cash flow generated from operating activities of GBP2.1
million in the year was the same as the GBP2.1 million generated in
2011 and resulted from a determined effort to manage working
capital while supporting the international development of the
business.
The net outflow from working capital in the year was GBP5.5
million (2011: GBP5.5 million outflow).
Significant pension deficit recovery contributions totalling
GBP16.0 million (2011: GBP2.0 million) consumed a large proportion
of the Group's cash balances in the year. No further deficit
recovery payments are scheduled until the GBP4.0 million due in the
second half of 2015.
Cash flows relating to discontinued operations amounted to
GBP6.0 million (2011: GBP1.2 million) primarily in respect of the
supplemental payment set by a German appeal court to buy out the
minority shareholders in a business acquired in 1998.
Capital expenditure including intangibles in the year totalled
GBP6.4 million compared to GBP8.4 million in 2011. The charge for
depreciation and amortisation of intangibles in 2012 was GBP7.2
million (2011: GBP7.3 million).
Proceeds of GBP1.0 million were received from the disposal of
assets held for sale and property, plant and equipment (2011:
GBP7.5 million).
The resulting net cash position at 31st December 2012 was GBP5.5
million (2011: GBP31.3 million).
Pensions
The deficit in the Group's pension schemes at the end of 2012
included in the financial statements was GBP11.0 million on an
accounting basis compared with a surplus of GBP5.3 million a year
earlier. The change over the year reflects the significant fall in
corporate bonds yields which reduced the liability discount rate
used at the year end.
BUSINESS REVIEW
Our business model
AGA Rangemaster sets out to be an international leader in range
cooking and to have a wider range of appliance and kitchen products
to reinforce the attractions of having a range cooker at the heart
of the home. We support this with a wider home fashions offering
with Fired Earth and Grange. We have great, long established brands
like AGA and La Cornue and younger vibrant brands like Falcon and
Rangemaster that are helping to develop our end markets. We have an
embedded dealer structure and for more specialist lines we add some
owned retail outlets. We also have in place some international
structures with local production capabilities most notably with AGA
Marvel in North America to complement our UK strengths. We believe
that modern marketing techniques assist in the identification of
niche customer bases and will help drive the volume growth and
margin benefits from the sustained investment and commitments to
manufacturing of our anchor products.
The product mix
Cast iron cookers
The iconic AGA cooker is our best known product. Today's AGA is
able to provide flexibility in use while retaining the qualities
for which it has been known for ninety years. The AGA Total Control
in 3 and 5 oven formats is now the flagship product providing more
ways to manage cost and energy consumption in operation.
In 2012 we responded to continuing tough market conditions by
raising factory efficiencies further and by reducing the number of
retail outlets. This is possible as the AGA sales process is
becoming simpler. Today's electric AGA cooker is made and assembled
in the factory. It is easier and quicker to install and to move and
it has the capability of being vented into the room in a central
island. These features assist the progress in international
markets. We are focusing now on the nature of the sales staff
making the case for the AGA cooker. The AGA needs to be sold by
people who are also owners or fully familiar with the product and
who understand the lifestyle they are selling - hence the slow and
crucial work to ensure that in overseas markets there are enough
real users of the products involved in selling processes providing
a personalised service. We are providing an incentive package to
create a network of AGA-owning ambassadors.
With almost two thirds of AGA cooker sales being of electric
models, the AGA is able to address new customer bases enthused to
have a product at home working for them giving them control of
running costs (from GBP5 a week) for the best cooked food on demand
and control of the warmth of the home. The AGA cooker is a great
facilitator in contemporary lifestyles. We believe this is the
right approach to the sales proposition and will be a major driver
of AGA cooker sales in the years ahead.
These themes are not new. In the 1930s a team led by W T Wren,
the managing director of AGA Heat Limited changed the way the
British thought of their home by putting the highly functional AGA
cooker at its heart. We have produced a booklet exploring the
remarkable people and social changes that made the AGA brand such
an icon. We aim to recapture the entrepreneurial spirit of that
time.
Other range cookers / appliances
Rangemaster has a well established position at the premium end
of the range cooker market - driven by product quality. The new
campaign for the brand emphasises that Rangemaster builds on
experience - seen in the sturdy frame, meticulous assembly and the
'car' quality paint finishes of the products. Year after year,
through work on product development across our brands; which
include Falcon, Mercury and Redfyre, we see feature and benefit
enhancements as well as production efficiency gains.
2012 saw a fall in the volume of sales in the UK as some
consumers traded down to lower price point alternatives. We have a
strong new product launch programme focusing in on a contemporary
range of cookers out this spring. We saw the average consumer price
paid increase reflective of the mix achieved. We maintained our
position as having close to half the range cooker market in the UK
by value. We saw growth on the near Continent where the tough
economic backcloth for France did not prevent a sales increase. Our
wider range of appliances covering splash backs, cooker hoods,
refrigeration, dishwashers and sinks kept the proportion of revenue
for Rangemaster for lines beyond cookers at circa 30 pence for
every 100 pence of cooker sales.
Our largest appliance business outside the UK is AGA Marvel in
North America. Marvel was originally acquired in 2006 to provide a
refrigeration platform on which to add cooker products.
Rationalisation plans were accelerated with two factories being
moved to one new one and a further factory in Canada subsequently
being merged into the Greenville facility. We have a strong and
continuing product development programme which has responded to
regulatory changes which continue to raise efficiency requirements.
Our premium Marvel Professional Series has proved a particular
success in the year since its launch. We have strengthened our
sales team and overhauled our dealer base notably on the West
Coast. We are offering a more comprehensive and cost effective
suite of hot and cold products. In a slowly improving market place
we now expect an upturn in our business which, with the levels of
operational gearing available in the business, should translate
into a marked profit improvement.
Home fashions brands
Fired Earth saw a much improved performance in 2012 led by
rigorous cost control and improved sales in the core tile category.
A new format of small high street stores is working well - seen in
Dulwich, Blackheath and Winchester and most recently in Marlow and
some of the larger out of town stores have been reassessed. We have
taken over Bristol and Harrogate stores from franchisees and
relocated the Bath store.
Fired Earth has a strong experienced management team targeted to
return the business to profitability. We continue to work towards a
valorisation point when we expect that the improved performance and
prospects will be reflected in the value to be placed on the
operation. Fired Earth's current tile offering with its particular
American and North African influences has reasserted its position
as the style and trend setter in the sector.
Grange continues to operate in particularly challenging markets,
most particularly in North America where a further rationalisation
programme has been undertaken to cut the cost base. With the 'My
Grange' technology we have the ability to change the way purchasing
furniture for the home is approached with the consumer having far
greater direct involvement in the product finish, designing it to
their individual taste. We believe that this - with the direct
factory link - can set Grange apart providing the stimulus to
generate the additional revenue needed to provide the return to
profitability we have been seeking. 'My Grange' is now available in
16 Grange own stores and in 27 dealer stores across the world.
Grange make kitchens for Fired Earth and its wider offering is
available online from Fired Earth.
International expansion
We have the target of moving from having 37% of our business
being outside the UK to around 50%. This is a position we have
achieved before - prior to the foodservice disposal over 50% of the
business was generated outside the UK. This will now be achieved
through the business and platforms we have and through creating
strategic links.
The Group has a well established position on the near Continent
and is achieving good growth notably in France, Holland and Belgium
for our range cookers. Gross revenues were over GBP10.0 million in
2012. We are also starting to make inroads into the German
market.
A key development feature of 2012 was establishing the
reciprocal trading relationship with the Chinese manufacturer
Vatti. The objectives set for 2013 are to have product approvals in
place and AGA Rangemaster products being sold in China through the
Vatti dealer structures and to bring Vatti-made products to
Europe.
Close working relationships with Vatti have been developed over
the last two years and the plans are on track for product launches
in the UK and in China. Vatti is a fast growing twenty year old
quoted group that has specialised in gas burner technology; they
made the torches for the Beijing Olympic Games. For range cookers
to succeed in China we need to show that our cookers cook Chinese
meals to the standard of the two burner cooktops typically found in
China - as well as providing wider options for baking and roasting.
Success is also linked to an evolution in the floor plan of Chinese
homes to create kitchen living space which puts the range at the
heart of the home. Vatti has a strong dealer structure through
which familiarity with the range cooker concept can quickly
emerge.
Pension scheme funding
During 2012 the Group worked closely with the trustee of the
Group's main pension scheme as the actuarial valuation as at 31(st)
December 2011 was completed. Agreement was reached under which the
Group made total contributions into the scheme in 2012 of GBP19.5
million, including a GBP16.0 million deficit recovery payment, and
no further deficit recovery contributions are to be made until a
GBP4.0 million payment is due in the second half of 2015. Annual
deficit recovery contributions would then run from 2016 to 2021
inclusive at GBP10 million to eliminate the appraised deficit by
2022, with an additional GBP30 million payable in 2020. As part of
the agreement the level of bank guarantees of possible future
contributions provided to the scheme by the Group was reset at
GBP30 million, a reduction from GBP50 million. The aim was to
provide clarity and stability for the Group in the medium-term. The
agreement facilitated finalisation in November 2012 of GBP60
million of new bank lines with a strong banking group. The
facilities run though to the end of 2015 and replaced maturing
lines dating from 2008.
Actuarial valuations are heavily driven by prevailing gilt
yields and these have generally been negative in real terms in the
last three years taking inflation into account and consequently
appraised liabilities have risen sharply - even though underlying
liabilities in cash terms are largely known and fluctuate little.
Following the sharp fall in gilt yields over the second half of
2011, the actuarial deficit was appraised at GBP227.7 million at
31(st) December 2011 - the actuarial report a year earlier having
shown a deficit of GBP62 million. Market conditions overall
improved over 2012, and this should be reflected in a reduction in
the actuarial deficit over the year ended 31(st) December 2012.
Should market conditions permit, the Group will support further
steps to reduce the level of contingent dependency of the scheme on
the Group. Meanwhile the agreement with the trustee means that the
resources of the Group will be built up with payments to
shareholders to be made only with trustee consent before the end of
2015.
Building on our progress
The Group continues to face up to challenging market conditions.
The continuing systematic work to reduce the cost base will see
major initiatives at Waterford Stanley and Grange where there are
opportunities in both North America and in the French production
facilities. We are also looking at ways to focus resources on the
areas of the business central to the investment success.
2012 highlighted that we have brands with great heritage which
have international reach. We identified the original patent granted
by Queen Anne to Abraham Darby to make cooking pots in
Coalbrookdale - now a world heritage site - the rationale was that
it would bring quality product to a domestic market at a good
price; substitute for imports and bring export growth. Still
familiar themes. We supported efforts to highlight that Abraham
Darby helped trigger the tradition that has made the Midlands a hub
of innovation and design. We were delighted to be voted 'Midlands
Best Brand' by the 'Birmingham Made Me' Design Expo in June 2012.
We were enthusiastic supporters of the food and heritage components
of the Government's 2012 'Great Campaign'.
We have recently produced a publication about what made the AGA
cooker an icon and changed the way we live. The themes have
continuing international resonance. We are excited that Fired Earth
is now working with Transport for London to produce tile ranges
based on its formidable archive.
The task for 2013 is to harness the heritage of the Group to
move our current business model forward to provide the revenue
growth that will show the benefits we have available through our
supply chain and manufacturing capacities. The effort of recent
years to create and deliver on these themes should be demonstrable
throughout 2013.
CONSOLIDATED INCOME STATEMENT
Year ended 31(st) December
2012 2011
GBPm GBPm
Continuing operations
Revenue 244.6 250.9
Net operating costs (238.1) (244.8)
Group operating profit 6.5 6.1
Net pension credit 3.8 3.1
Non-recurring costs (1.7) (2.1)
Profit before finance income / (costs)
and tax 8.6 7.1
Finance income 0.4 1.0
Finance costs (0.6) (0.6)
Profit before tax 8.4 7.5
Tax (expense) / credit (1.6) 5.4
Profit for the year from continuing
operations 6.8 12.9
Discontinued operations
Profit for the year from discontinued
operations - 2.7
---------------------------------------- -------- --------
Profit for the year 6.8 15.6
Profit attributable to:
Equity holders of the parent 6.9 15.7
Non-controlling interests (0.1) (0.1)
Profit for the year 6.8 15.6
Earnings per share attributable to
equity holders of the parent p p
- continuing operations
Basic 10.0 18.8
Diluted 10.0 18.8
Earnings per share attributable to
equity holders of the parent p p
- total operations
Basic 10.0 22.7
Diluted 10.0 22.7
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31(st) December 2012 2011
GBPm GBPm
Profit for the year 6.8 15.6
Exchange adjustments on hedge of net
investments 0.6 -
Exchange differences on translation
of foreign operations (2.8) (0.8)
Actuarial losses on defined benefit
pension schemes (39.6) (10.5)
Tax on defined benefit pension schemes
and tax losses 9.1 2.3
Other comprehensive losses for the
year (32.7) (9.0)
Total comprehensive (losses) / income
for the year (25.9) 6.6
Attributable to:
Equity holders of parent (25.8) 6.8
Non-controlling interests (0.1) (0.2)
Total comprehensive (losses) / income
for the year (25.9) 6.6
CONSOLIDATED BALANCE SHEET
As at 31(st) December
2012 2011
GBPm GBPm
Non-current assets
Goodwill 65.3 66.7
Intangible assets 24.5 23.9
Property, plant and equipment 38.3 40.8
Retirement benefit surplus - 6.8
Other receivables 0.6 0.7
Deferred tax assets 8.1 4.1
136.8 143.0
Current assets
Inventories 45.9 45.5
Trade and other receivables 30.9 30.8
Current tax assets 1.1 1.0
Cash and cash equivalents 21.0 48.1
98.9 125.4
Assets held for sale 2.2 2.6
Total assets 237.9 271.0
Current liabilities
Borrowings (1.3) (1.4)
Trade and other payables (61.0) (65.4)
Current tax liabilities (3.0) (2.9)
Provisions (3.9) (10.2)
(69.2) (79.9)
Net current assets 29.7 45.5
Non-current liabilities
Borrowings (14.2) (15.4)
Retirement benefit obligation (11.0) (1.5)
Deferred tax liabilities (1.2) (5.0)
Provisions (1.1) (1.5)
(27.5) (23.4)
Total liabilities (96.7) (103.3)
Net assets 141.2 167.7
Equity
Share capital 32.5 32.5
Share premium account 29.6 29.6
Other reserves 81.8 84.0
Retained (losses) / earnings (2.8) 21.4
Equity attributable to equity holders
of the parent 141.1 167.5
Non-controlling interest 0.1 0.2
Total equity 141.2 167.7
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31(st) December 2012 2011
GBPm GBPm
Operating activities
Profit / (loss) before tax:
Continuing operations 8.4 7.5
Discontinued operations - (3.0)
Reconciliation of profit before tax
to net cash flows:
Net finance costs / (income) 0.2 (0.4)
Depreciation of property, plant and
equipment 5.1 5.4
Impairment of assets held for sale - 0.9
Amortisation of intangible assets 2.1 1.9
Profit on disposal of property, plant
and equipment, intangibles and assets
held for sale (0.5) (0.6)
Share based payments expense 0.2 -
Increase in inventories (1.0) (2.8)
Increase in receivables (0.3) (0.8)
Decrease in payables (4.2) (1.9)
(Decrease) / increase in provisions (0.6) 2.6
Pension credit and normal contributions (7.3) (6.7)
Cash generated from operating activities 2.1 2.1
Deficit recovery pensions payments (16.0) (2.0)
Cash flows related to discontinued
operations (6.0) (1.2)
Finance income 0.4 0.7
Finance costs (0.5) (0.6)
Tax (payment) / receipt (0.3) 0.6
Net cash flows used in operating activities (20.3) (0.4)
Investing activities
Acquisition of business - (0.7)
Purchase of property, plant and equipment (3.7) (5.5)
Expenditure on intangibles (2.7) (2.9)
Proceeds from disposal of assets held
for sale and property, plant and equipment 1.0 7.5
Net cash used in investing activities (5.4) (1.6)
Financing activities
Dividends paid (0.8) (1.2)
Borrowing costs (0.2) -
Repayment of borrowings (0.3) (0.3)
Net cash used in financing activities (1.3) (1.5)
Effects of exchange rate changes (0.1) (0.1)
Net decrease in cash and cash equivalents (27.1) (3.6)
Cash and cash equivalents at beginning
of year 48.1 51.7
Cash and cash equivalents at end of
year 21.0 48.1
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to
equity holders of the parent
-------------------------------------------------------
Non -
Share Share Other Retained controlling Total
capital premium reserves earnings Total interests equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
At 1(st) January
2011 32.5 29.6 84.7 15.1 161.9 0.4 162.3
Comprehensive income
Profit / (loss)
for the year - - - 15.7 15.7 (0.1) 15.6
Other comprehensive
income / (losses):
Exchange differences
on translation
of foreign operations - - (0.7) - (0.7) (0.1) (0.8)
Actuarial losses
on defined benefit
pension schemes - - - (10.5) (10.5) - (10.5)
Tax on defined
benefit pension
schemes - - - 2.3 2.3 - 2.3
Total comprehensive
income / (losses)
for the year to
31(st) December
2011 - - (0.7) 7.5 6.8 (0.2) 6.6
Dividends paid - - - (1.2) (1.2) - (1.2)
At 1(st) January
2012 32.5 29.6 84.0 21.4 167.5 0.2 167.7
Comprehensive income
Profit / (loss)
for the year - - - 6.9 6.9 (0.1) 6.8
Other comprehensive
(losses) / income:
Exchange adjustments
on hedge of net
investments - - 0.6 - 0.6 - 0.6
Exchange differences
on translation
of foreign operations - - (2.8) - (2.8) - (2.8)
Actuarial losses
on defined benefit
pension schemes - - - (39.6) (39.6) - (39.6)
Tax on defined
benefit pension
schemes and tax
losses - - - 9.1 9.1 - 9.1
Total comprehensive
losses for the
year to 31(st)
December 2012 - - (2.2) (23.6) (25.8) (0.1) (25.9)
Share based payments - - - 0.2 0.2 - 0.2
Dividends paid - - - (0.8) (0.8) - (0.8)
------------------------ --------- --------- ---------- ---------- --------- ------------- --------
At 31(st) December
2012 32.5 29.6 81.8 (2.8) 141.1 0.1 141.2
NOTES
1. Segmental analysis
The directors consider that there are two operating segments
namely AGA and Rangemaster.
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.
Disclosures in respect of revenues from external customers and
non-current assets are provided below:
2012 2011
-------------------- --------------------------
Non- Non-
current current
Revenue assets Revenue assets
GBPm GBPm GBPm GBPm
United Kingdom 155.2 59.6 157.7 67.9
North America 29.4 29.1 29.5 30.8
Europe 53.2 40.0 57.7 40.2
Rest of World 6.8 - 6.0 -
Total operations 244.6 128.7 250.9 138.9
Tax - 8.1 - 4.1
Total 244.6 136.8 250.9 143.0
2. Dividends
The directors are not recommending a final dividend in respect
of the financial year ended 31(st) December 2012 (2011: 1.1 pence
per share).
3. 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.
4. Net pension credit
2012 2011
GBPm GBPm
Current service cost - defined benefit (3.5) (3.3)
Net pension returns on assets and interest
costs 7.3 6.4
Net pension credit included in the consolidated
income statement 3.8 3.1
5. Tax on profit for the year
2012 2011
GBPm GBPm
United Kingdom corporation tax:
Current tax on income for year 2.1 0.3
Adjustments in respect of prior years (0.2) (11.2)
United Kingdom corporation tax 1.9 (10.9)
Overseas current tax on income for year 0.2 (0.6)
Adjustments in respect of prior years 0.2 -
Overseas corporation tax 0.4 (0.6)
Total current tax charge / (credit) 2.3 (11.5)
United Kingdom deferred tax charge:
- change in rate of corporation tax (0.2) 0.2
- current year 1.1 2.3
- adjustments in respect of prior years (0.3) 3.6
Overseas deferred tax credit in year (0.9) -
Overseas deferred tax credit in respect (0.4) -
of prior years
Total deferred tax (credit) / charge (0.7) 6.1
Total United Kingdom tax 2.5 (4.8)
Total overseas tax (0.9) (0.6)
Tax charge / (credit) - continuing operations 1.6 (5.4)
------------------------------------------------- ------ -------
Total tax charge / (credit) in the consolidated
income statement is as follows:
Tax charge / (credit) - continuing operations 1.6 (5.4)
Tax credit - discontinued operations - (5.7)
------------------------------------------------- ------ -------
Total tax charge / (credit) 1.6 (11.1)
------------------------------------------------- ------ -------
In 2011 the tax credit relating to continuing operations
included a non-recurring GBP6.1m credit being a release of the
provisions made for tax in respect of prior year tax returns now
agreed, split between a GBP11.0m credit in respect of corporation
tax and a charge of GBP4.9m in respect of deferred tax. The tax
credit of GBP5.7m, included in discontinued operations, relates to
adjustments in respect of prior years for previously discontinued
operations.
Factors affecting the future tax charge
A reduction in the UK corporation tax rate from 26% to 24% was
substantively enacted in March 2012 and was effective from 1(st)
April 2012. A further reduction from 24% to 23% was substantively
enacted in July 2012 and will be effective from 1(st) April 2013.
Accordingly, the substantively enacted rates have been applied in
the measurement of the Group's deferred tax assets and liabilities
as at 31(st) December 2012.
In addition, the Government announced its intention to reduce
further the UK corporation tax rate to 21% from 1(st) April 2014.
The aggregate impact of the proposed reductions from 23% to 21%
would reduce the deferred tax assets by approximately GBP0.4m.
6. Earnings per share ('EPS')
2012 2011
GBPm GBPm
Earnings for the purpose of the basic
and diluted EPS
Profit after tax 6.8 12.9
Non-controlling interests 0.1 0.1
Profit attributable to equity holders
of the parent - continuing operations 6.9 13.0
Profit after tax - discontinued operations - 2.7
Profit attributable to equity holders
of the parent - total operations 6.9 15.7
Weighted average number of shares
in issue million million
For basic EPS calculation 69.3 69.3
Dilutive effect of share options - -
For diluted EPS calculation 69.3 69.3
EPS attributable to equity holders
of the parent: p p
Continuing operations
Basic 10.0 18.8
Diluted 10.0 18.8
Discontinued operations p p
Basic - 3.9
Diluted - 3.9
Total operations p p
Basic 10.0 22.7
Diluted 10.0 22.7
7. Non-recurring costs
The non-recurring costs amounted to GBP1.7m and related to the
reorganisation of our AGA Rangemaster distribution operations and
retail structures.
In 2011 the non-recurring costs amounted to GBP2.1m of which
GBP0.4m related to the reorganisation of our AGA Marvel US and
Canadian manufacturing and distribution operations, GBP0.9m related
to the impairment of assets held for sale, GBP0.3m related to costs
of finalising prior period tax returns and GBP0.5m related to the
cost of redundancies and employee matters arising from the
introduction of new systems and new products.
2013 financial calendar
Annual General Meeting 1(st) May 2013
2013 Half year close 30(th) June
2013
The 2012 full year results were approved by the board of
directors on 8(th) March 2013. The financial information set out in
this announcement does not constitute the Company's statutory
accounts for the years ended 31(st) December 2012 and 2011. The
financial information within this announcement is prepared in line
with the accounting policies presented within the Company's
statutory accounts for the current and previous years. Statutory
accounts for 2011 have been delivered to the Registrar of Companies
and those for 2012 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(2) or (3) of the Companies Act
2006.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UBVKRORAORAR
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