REG - Creightons PLC - Half Yearly Report <Origin Href="QuoteRef">CRGT.L</Origin>

CreightonsAnnouncement

25/11/2014 13:39

RNS Number : 9518X
Creightons PLC
25 November 2014
Creightons plc Group
Interim financial report
For the six months ended 30 September 2014
Chairman's Statement
The Group has made considerable progress in the first half of the year recording an improved profit, before  exceptionalitems, of 214,000 in the six months to 30 September 2014 (2013: 153,000). As announced on 27 May 2014 the Group also recorded a profit on the sale of its 55% interest in TS Ventures Limited of 375,000 giving the total profit after tax for the period of 589,000.
The profit improvement before exceptional items came on the back of increased sales which rose by 9.8% to 10,693,000 (2013: 9,738,000). The sales improvement largely arose from new branded range launches with key retailers. Some of this is of a one-off nature and may not be repeated in the second half of the year.
Our gross margins are 38.6% in the six months to 30 September 2014 (2013: 40.2%). Sales mix is the main reason for this reduction with lower sales in North America and new product launches at lower margins. Raw material price increases have not been a significant factor in the period. We are focusing efforts to improve our margins through product re-engineering, targeted investment in inventory and investment in plant and machinery which will improve output at lower costs. 
We have continued to review our sales strategy in the period and have trimmed a number of brands and products considered peripheral to our core activity. We continue to see opportunities to develop our brands in overseas markets and to develop good quality products at a competitive price in the UK. We have increased resources and investments to achieve this goal.
We continue to be cautious regarding the underlying level of retail sales and continue to see the trend of consumers in the UK focussing on value. This will present sales opportunities but may impact on margins.
We have seen an increase in stock levels and debtors to support the new product launches with new customers, some of whom have payment terms in excess of our current average. 
Our net cash position at the end of the period has improved with borrowings net of cash falling by 112,000 to 523,000 (2013: 635,000).
I believe that this half year's increased sales of 10,693,000 and profit after tax of 589,000 is a good performance and places the Company in a good position to take advantage of any opportunities that may arise. 
W O McIlroy
Executive Chairman25 November 2014
Responsibility statement
We confirm that to the best of our knowledge:
a) The condensed set of financial statements has been prepared in accordance with IAS 34;
b) The interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
c) The interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of material related party transactions and changes therein).
By order of the Board
Nicholas O'Shea
Company Secretary and Director
Creightons plc
Interim financial report
For the six months ended 30 September 2014
Consolidated income statement - unaudited


Six months ended 30 September
Year ended 31 March


2014
2013
2014

Note
000
000
000




Revenue

10,693
9,738
19,352
Cost of sales

(6,568)
(5,825)
(11,460)





Gross profit

4,125
3,913
7,892





Distribution costs

(470)
(399)
(802)
Administrative expenses

(3,430)
(3,341)
(6,587)





Operating profit

225
173
503





Finance costs

(11)
(20)
(32)





Profit before tax

214
153
471





Exceptional item
4
375
-
-
Taxation

-
-
-





Profit for the period from continuing operations attributable to the equity holders of the parent company

589
153
471
Earnings per share
Basic
2
1.01p
0.28p
0.81p
Diluted
2
0.98p
0.26p
0.79p
Earnings per share before exceptional item
Basic
2
0.37p
0.28p
0.81p
Diluted
2
0.36p
0.26p
0.79p
Consolidated statement of comprehensive income


Six months ended 30 September
Year ended 31 March


2014
2013
2014


000
000
000




Profit for the period from continuing operations

589
153
471




Exchange differences on translating of foreign operations

1
27
42





Total comprehensive income for the period attributable to the equity holders of the company

590
180
513
Creightons plc
Interim financial report
30 September 2014
Consolidated balance sheet - unaudited


30 September
31 March


2014
2013
2014


000
000
000
Non-current assets




Goodwill

331
343
343
Other intangible assets

300
255
259
Property, plant and equipment

586
516
590


1,217
1,114
1,192
Current assets




Inventories

4,071
3,547
3,704
Trade and other receivables

4,004
3,436
3,464
Cash and cash equivalents

40
12
11







8,115
6,995
7,179





Total assets

9,332
8,109
8,371





Current liabilities




Trade and other payables

3,205
2,880
2,777
Obligations under finance leases

19
19
20
Short term borrowings

563
647
613


3,787
3,546
3,410
Net current assets

4,328
3,449
3,769





Non-current liabilities




Obligations under finance leases

20
39
28










Total liabilities

3,807
3,585
3,438





Net assets

5,525
4,524
4,933





Equity




Share capital

584
545
584
Share premium account

1,264
1,231
1,264
Other reserves

38
38
38
Share-based payment reserve

2
55
-
Retained earnings

3,649
2,683
3,060
Translation reserve

(12)
(28)
(13)
Total equity attributable to the equity shareholders

5,525
4,524
4,933
Creightons plc
Interim financial report
For the six months ended 30 September 2014
Statement of changes in shareholders' equity - unaudited

Share capital
Share premium account
Other reserves
Share-based payment reserve
Retained earnings
Translation reserve
Total

000
000
000
000
000
000
000








Balance at 1 April 2013
545
1,231
38
51
2,530
(55)
4,340
Profit for six months ended 30 September 2013
-
-
-
-
153
-
153
Credit to equity for share based payments
-
-
-
4
-
-
4
Exchange differences on translation of foreign operations
-
-
-
-
-
27
27
Balance at 30 September 2013
545
1,231
38
55
2,683
(28)
4,524
Profit for six months ended 31 March 2014
-
-
-
-
318
-
318
Debit to equity for share based payments
-
-
-
4
-
-
4
Transfer
-
-
-
(59)
59
-
-
Issue of share options
39
33
-
-
-
-
72
Exchange differences on translation of foreign operations
-
-
-
-
-
15
15
Balance at 31 March 2014
584
1,264
38
-
3,060
(13)
4,933
Profit for six months ended 30 September 2013
-
-
-
-
589
-
589
Debit to equity for share based payments
-
-
-
-
2
-
2
Exchange differences on translation of foreign operations
-
-
-
-
-
1
1
Balance at 30 September 2014
584
1,264
38
-
3,651
(12)
5,525
Creightons plc
Interim financial report
For the six months ended 30 September 2014
Consolidated cash flow statement - unaudited


Six months ended 
30 September
Year ended
31 March


2014
2013
2014


000
000
000




Net cash (outflow) / inflow from operating activities

(2)
417
689





Cash flow from investing activities




Purchase of property, plant and equipment

(63)
(59)
(211)
Expenditure on intangible assets

(235)
(109)
(258)
Proceeds from sale of Joint Venture

387
-
-





Net cash from (used in) investing activities

89
(168)
(469)





Cash flow from financing activities




Repayment of finance lease obligations

(9)
(9)
(19)
Proceeds on issue of shares

-
-
72
(Decrease) in bank loans

(50)
(245)
(279)
Net cash (utilised in) financing activities

(59)
(254)
(226)





Net increase /(decrease) in cash and cash equivalents

28
(5)
(6)





Cash and cash equivalents at start of period

11
18
18





Effect of foreign exchange rate changes

1
(1)
(1)





Cash and cash equivalents at end of period

40
12
11
Creightons plc
Interim financial report
For the six months ended 30 September 2014
Notes to the interim financial report
1. Basis of preparation
The condensed financial statements in this Interim Report have been prepared in accordance with the requirements of IAS 34 'Interim Financial Reporting' as adopted by the European Union.
As required by the Disclosure and Transparency Rules of the UK's Financial Conduct Authority, the condensed set of financial statements has been prepared by applying the accounting policies and presentation that were applied in the preparation on the Company's published consolidated financial statements for the year ended 31 March 2014, which were prepared in accordance with International Financial Reporting Standards as adopted by the European Union.
The condensed interim financial statements for the six months ended 30 September 2014 and the comparative figures for the six months ended 30 September 2013 are unaudited and have not been reviewed by the Auditors. The strategic report with supplementary material for the year ended 31 March 2014 represent an abbreviated version of the Group's full financial statements for that year, on which the Auditors issued an unqualified audit report and which have been filed with the Registrar of Companies.
2. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:


Six months ended 
30 September
Year ended
31 March


2014
2013
2014


000
000
000
Earnings




Net profit attributable to the equity holders of the parent company

589
153
471
Net profit before exceptional items attributable to the equity holders of the parent company

214
153
471


Six months ended 
30 September
Year ended
31 March


2014
2013
2014


Number
Number
Number
Number of shares




Weighted average number of ordinary shares for the purposes of basic earnings per share

58,355,426
54,478,876
58,355,426





Effect of dilutive potential ordinary shares relating to Share options

1,570,000
5,176,550
1,570,000





Weighted average number of ordinary shares for the purposes of diluted earnings per share

59,925,426
59,655,426
59,925,426
3. Related party transactions
The related party transactions that occurred in the six months ended 30 September 2014 are not materially different in size or nature to those reported in the Company's Annual Report for the year ended 31 March 2014.
4.  Exceptional item
On 23 May 2014 the Group completed the disposal of its 55% interest in TS Ventures Limited which holds the intellectual property rights to the Twisted Sista brand of hair care products for a cash consideration of 448,000. The 55% interest in TS Ventures Limited has been sold to Urban Therapy LLC, the owner of the 45% interest not owned by the Company. The Company is reporting a profit of 375,000 in the interim financial report for the six months ended 30 September 2014 in relation to the disposal.
5. Availability of Interim Report
The Interim Report is being made available to shareholders on the company website www.creightonsplc.com. Further copies can be obtained from the Company's Registered Office, 1210 Lincoln Road, Peterborough, PE4 6ND.

This information is provided by RNS
The company news service from the London Stock Exchange
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