RNS Number:0350I
Jourdan PLC
27 February 2003
Jourdan plc
CHAIRMAN'S STATEMENT
Interim Results for the 6 months ended 31 December 2002
The profit before tax in the first half, before amortisation of goodwill and the provision against investments, is
reduced by 61% to #282,000 (2001: #716,000). The profit before tax is #21,000 (2001: loss before tax of #2,076,000)
after these items have been taken into account.
Your Board has decided not to declare an interim dividend (2001: nil).
As forecast, trading conditions have been extremely difficult. The major objective has been to reduce debt and match
capacity with current levels of demand. Borrowings at 31 December 2002 were #5.4m and have been reduced by #3.4m
compared to 31 December 2001, and by #2.9m since 30 June 2002. Employee numbers have been reduced by a further 47
(12%) since 31 December 2001 to 352.
Operating Companies
Suncrest Surrounds, the fireplace, suites, mantels and electric fires business, suffered as a result of weak markets,
but its reorganised management team has been successful in regaining proper control of the business. However, the
company continues to trade at a loss.
John Corby, the internationally renowned trouser press manufacturer, traded more profitably than in the same period
last year, but currently has lower order books.
Westfield Medical, a leading manufacturer and supplier of single-use sterilisation packaging materials to the medical
and healthcare sector, performed satisfactorily. However, the increased spending announced for the NHS has still to
translate into orders.
Nelsons Labels, a leading supplier of fabric-based labels for the bedding, carpet and upholstery industries, achieved
higher sales and similar profitability, owing in part to new business in both France and the UK.
Lion Brush has now been closed, although the leasehold factory has yet to be relet.
Investments
A further provision of #110,000 was made in the period against the investment in iRevolution. This investment now
stands in the books at a nominal amount.
Your Company continues to hold a 22% interest in Howle Holdings Plc, which in January 2003 reported trading
conditions were extremely difficult. I joined the Board of this company on 11 October 2002 and, therefore, from that
date it will be appropriate to account for its results as an associated company.
Group Pensions
In common with other final salary pension schemes, our Fund's investments have diminished in value. Your Board is
aware of the position and is maintaining appropriate contributions.
Outlook
It would be unwise to make short-term predictions in the current economic and political environment. However, I am
confident that when business conditions do improve, our businesses will benefit.
26 February 2003
J David Abell
Group Profit Statement
Unaudited Audited
Notes 6 months to 6 months to Year ended
31 December 31 December 30 June
2002 2001 2002
(restated)
#000s #000s #000s
Turnover - continuing 12,643 13,029 24,767
operations
Turnover - discontinued 226 1,179 1,961
operations
Total Turnover 12,869 14,208 26,728
Cost of sales (8,510) (9,706) (17,302)
Gross Profit 4,359 4,502 9,426
Net operating expenses (3,831) (3,472) (7,723)
Amortisation of goodwill (151) (151) (301)
(3,982) (3,623) (8,024)
Operating profit - continuing 460 1,029 1,650
operations
Operating loss - discontinued (83) (150) (248)
operations
Total operating profit 377 879 1,402
Income from investments - - 58
Amounts written off (110) (2,529) (2,882)
investments
Loss on termination of - (112) (1,310)
discontinued operations
Profit/(loss) on ordinary 267 (1,762) (2,732)
activities before interest
Net interest (246) (314) (617)
Profit/(loss) on ordinary 21 (2,076) (3,349)
activities before tax
2 Tax on profit/(loss) on (63) (233) 96
ordinary activities
Loss on ordinary activities (42) (2,309) (3,253)
after tax
3 Dividends - - -
Retained loss for the period (42) (2,309) (3,253)
4 Loss per share
- Basic (0.1) p (7.0) p (9.9) p
- Diluted - p - p - p
4 Earnings/(loss) per share -
before amortisation of
goodwill
- Basic 0.3 p (6.6) p (9.0) p
- Diluted 0.3 p - p - p
Group Balance Sheet
Unaudited Audited
At At At
31 December 31 December 30 June
2002 2001 2002
(restated)
#000s #000s #000s
Fixed assets
Intangible assets 5,243 5,544 5,394
Tangible assets 5,447 7,697 5,754
Investments 1,164 1,680 1,274
11,854 14,921 12,422
Current assets
Stocks 2,409 3,669 2,955
Debtors 4,643 5,448 5,179
Property held for resale - - 1,313
7,052 9,117 9,447
Creditors : amounts falling due within one year (9,634) (11,768) (10,512)
Net current liabilities (2,582) (2,651) (1,065)
Total assets less current liabilities 9,272 12,270 11,357
Creditors : amounts falling due after more than one year (500) (3,000) (2,400)
Provisions for liabilities and charges (704) (627) (852)
Net assets 8,068 8,643 8,105
Capital and reserves
Called up share capital 3,295 3,294 3,294
Share premium 6,180 6,180 6,180
Other reserves 931 931 931
Profit and loss account (2,338) (1,762) (2,300)
Equity shareholders' funds 8,068 8,643 8,105
Group Cash Flow Statement
Unaudited Audited
6 months to 6 months to Year ended
31 December 31 December 30 June
2002 2001 2002
#000s #000s #000s
Operating activities
Net cash inflow from continuing activities 1,735 895 2,040
Net cash inflow/(outflow) from discontinued activities 184 (350) (237)
Net cash inflow from operating activities 1,919 545 1,803
Return on investments and servicing of finance
Interest paid (246) (314) (617)
Income from investments - - 40
Taxation received/(paid) 88 (137) (429)
Capital expenditure and financial investment
Purchase of tangible assets (175) (190) (424)
Sale of tangible assets 1,329 6 68
Sale of investments - - 71
Acquisitions and disposals
Closure costs on termination of discontinued operations - - (98)
Equity dividends paid - (66) (66)
Net cash inflow/(outflow) before financing 2,915 (156) 348
Financing
Received from issue of equity shares 1 - -
Repayment of Bank Loan (1,900) (600) (1,200)
Increase/(decrease) in net cash in the period 1,016 (756) (852)
Increase/(decrease) in net cash in the period 1,016 (756) (852)
Repayment of Bank Loan 1,900 600 1,200
Exchange rate movements 4 - (2)
Movement in net debt in the period 2,920 (156) 346
Opening net debt (8,332) (8,678) (8,678)
Closing net debt (5,412) (8,834) (8,332)
Statement of Total Recognised Gains and Losses
Unaudited Audited
6 months to 6 months to Year ended
31 December 31 December 30 June
2002 2001 2002
(restated)
#000s #000s #000s
Loss for the period (42) (2,309) (3,253)
Exchange differences 4 (6) (2)
Share of exchange differences in associated company - 38 38
Total recognised gains and losses relating to the period (38) (2,277) (3,217)
Prior year adjustment - deferred tax - 49 49
Total recognised gains and losses since last financial
statements (38) (2,228) (3,168)
Reconciliation of Movement in
Shareholders fund
Loss for the period (42) (2,309) (3,253)
Goodwill previously written off to reserves - - 402
New share capital issued (net) 1 - -
Exchange differences 4 (6) (2)
Share of exchange differences in associated company - 38 38
Decrease in shareholders' funds (37) (2,277) (2,815)
Opening shareholders' funds 8,105 10,920 10,920
Closing shareholders' funds 8,068 8,643 8,105
Note to Warrantholders
A total of 3,293,173 warrants to subscribe for ordinary shares were issued on 15 November 1999 through a bonus issue
of warrants to the holders of ordinary shares on the register as at 12 November 1999. The warrants entitle the holder
to subscribe for new ordinary shares and are exercisable at a price of 70p per new ordinary share. The warrants may
be exercised during any period of 28 days following publication of the final accounts of the Company for each
financial year of the Company between 30 June 2000 and 30 June 2006 and any period of 28 days following publication
of the interim accounts of the Company for each six month period ending between 31 December 1999 and 31 December
2005.
Unless previously exercised, the warrants will expire on the date which is 28 days following the day of publication
of the final accounts of the Company for the year ending 30 June 2006.
Holders of warrants should note that the warrants are exercisable for a period of 28 days following the date of this
document and the procedure for exercise is endorsed on each warrant certificate. However, the attention of
warrantholders is drawn to the fact that the exercise price of each warrant is 70p which compares with the mid-market
price of the Company's shares as at 25 February 2003 (the latest practicable date at publication of this document) of
101/2p per share.
Notes
1. The interim financial statements were approved by a Committee of the Board of Directors on 26 February 2003. The
statements, which are unaudited, have been prepared on the basis of the accounting policies published in the
statutory accounts for the year ended 30 June 2002. The financial information set out in this interim report does not
constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The figures for the year ended 30
June 2002 have been extracted from the statutory financial statements which have been filed with the Registrar of
Companies. The Auditors' Report on those financial statements was unqualified and did not contain a statement under
Section 237(2) of the Companies Act 1985.
2. The estimated tax charge is based on a Corporation tax rate of 34.7%
3. The Directors do not recommend the payment of an interim dividend.
4. Basic earnings per share, before and after amortisation of goodwill, have been calculated on the weighted average
number of shares in issue during the period of 32,945,039 (six months to December 2001: 32,944,160) and diluted
earnings per share, before and after amortisation of goodwill, using 32,945,039 (six months to 31 December 2001:
32,944,160).
5. The investment in Howle Holdings plc is treated as an associate with effect from 11 October 2002 when Board
representation was established. No accounts have been published for Howle Holdings plc since its annual report to 30
September 2002. Therefore, no share of profit or loss is included in this interim report.
6. No accounts have been published for Brooke Industrial Holdings plc (in Administrative Receivership) since its
interim accounts to 31 March 2001. Therefore, no share of profit or loss is included in this interim report. The book
value of Jourdan plc's investment in Brooke Industrial Holdings plc was written down to nil, in the six months ended
31 December 2001.
7. Comparative figures for 2001 have been restated to disclose the trading relating to discontinued businesses, the
adoption in the Report and Accounts for the year ended 30 June 2002 of FRS 19 and to reflect fully gross turnover
before discount of a major subsidiary.
8. Copies of this report have been sent to shareholders and warrantholders. Copies are also available to members of
the public from the Company's registered office: North Way, Walworth Estate, Andover, Hampshire SP10 5LX.
END
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