- Part 2: For the preceding part double click ID:nRSd4971Ua
----
Proceeds from disposal of Colin Campbell & Sons Limited ---- 324 ----- 324
Dividend received from Colin Campbell & Sons Limited ---- 179 ----- 179
Proceeds on disposal of property, plant and equipment 816 11,696 ----- 5,600
Deferred earn-out payments (1,000) ---- (1,000) ----
Acquisition of subsidiaries (14,616) (12,176) (7,655) (16,000)
Net cash used in investing activities (16,191) (508) (8,655) (9,897)
Financing activities
Increase in long term loans 8,596 10,488 16,832 9,233
Issue of share capital 1,543 94 1,543 94
Repayment of obligations under finance leases/HP (241) (14) ----- -----
Dividends paid (20,691) (563) (20,691) (563)
Net cash (used)/generated in financing activities (10,793) 10,005 (2,316) 8,764
Net (decrease)/increase in cash and cash equivalents (18,427) 16,590 (17,401) 12,130
Cash and cash equivalents at beginning of period 6 9,925 (6,475) 7,884 (4,246)
Effect of foreign exchange rate changes ---- (190) ----- -----
Cash and cash equivalents at end of period 6 (8,502) 9,925 (9,517) 7,884
Notes to the Accounts
1 Segmental information
The Group is organised into two operating divisions, the sale of floorcovering
products in the UK and Australia.
Geographical segment information for revenue, operating profit and a
reconciliation to entity net profit is presented below.
Income statement For the 52 weeks ended 28 March 2015 For the 52 weeks ended 29 March 2014
Revenue Segmentaloperatingprofit Exceptionaloperatingitems Financecosts Profitbeforetax* Revenue Segmentaloperatingprofit Exceptionaloperatingitems Financecosts Profitbeforetax*
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000
UK 92,911 8,427 - (150) 8,277 33,047 1,577 - (9) 1,568
Australia 35,393 1,552 - (155) 1,397 38,339 1,686 1,824 (138) 3,372
128,304 9,979 - (305) 9,674 71,386 3,263 1,824 (147) 4,940
Unallocated central expenses (1,369) (9,920) (1,338) (12,627) (682) (1,593) (384) (2,659)
Total continuing operations 128,304 8,610 (9,920) (1,643) (2,953) 71,386 2,581 231 (531) 2,281
Tax (1,571) (672)
(Loss)/profit after tax from
continuing activities (4,524) 1,609
Profit from discontinued operations* 5 111 116
(Loss)/profit for the period 128,304 8,610 (9,920) (1,643) (4,524) 71,386 2,586 342 (531) 1,725
* Prior year profit from discontinued operations relates to the Canadian
operation Colin Campbell & Sons Limited, which was sold on 28 March 2014. The
result is shown net of tax.
Intersegment sales between the UK and Australia were immaterial in the current
and comparative periods.
Management information is reviewed on a segmental basis to profit before tax.
Balance Sheet As at 28 March As at 29 March
2015 2014
Segment Segment Segment Segment
assets liabilities assets liabilities
£000 £000 £000 £000
UK 93,527 65,407 55,877 24,739
Australia 19,797 7,939 22,000 11,022
Assets held for sale ---- ---- 547 ----
Unallocated central assets/liabilities 888 21,036 472 8,496
114,212 94,382 78,896 44,257
Assets held for sale relates to the Castlemaine spinning mill in Australia
which was sold in May 2014.
Other segmental information 52 weeksended28 March2015 52 weeksended29 March2014
£000 £000
Depreciation and amortisation
UK 1,928 904
Australia 1,345 1,650
3,273 2,554
No other significant non-cash expenses were deducted in measuring segment
results.
52 weeksended28 March2015 52 weeksended29 March2014
£000 £000
Capital expenditure
UK 1,049 304
Australia 342 227
1,391 531
2 (Loss)/earnings per share
The calculation of the basic, adjusted and diluted (loss)/earnings per share is based on the following data:
Basic Adjusted Basic Adjusted
2015 2015 2014 2014
£000 £000 £000 £000
(Loss)/profit attributable to ordinary equity holders of the parent entity (4,524) (4,524) 1,725 1,725
Exceptional items (net of tax effect):
Contract for Differences ---- 7,554 ---- 1,631
Acquisition costs ---- 398 ---- 633
Deferred consideration ---- 1,968 ---- ----
Profit on sale of Australia properties ---- ---- ---- (1,823)
Profit on sale of UK property ---- ---- ---- (693)
Restructuring of Australia's spinning mills ---- ---- ---- 546
Profit on sale of investment in Colin Campbell & Sons Limited ---- ---- ---- (111)
Earnings for the purpose of basic and adjusted earnings per share (4,524) 5,396 1,725 1,908
Weighted average number of shares:
2015 2014
Number of Number of
shares ('000) shares ('000)
Weighted average number of ordinary shares for the purposes of basic and adjusted (loss)/earnings per share 11,859 7,036
Effect of dilutive potential ordinary shares:Business Growth Fund share options 120 ----
Weighted average number of ordinary shares for the purposes of diluted (loss)/earnings per share 11,979 7,036
The potential dilutive effect of the share options has been calculated in accordance with IAS 33 using the average share price over the period the options have been in existence. The Group's (loss)/earnings per share are as follows:
2015 2014
Pence Pence
Basic adjusted 45.50 27.12
Diluted adjusted 45.05 27.12
Basic (38.15) 24.52
Diluted (38.15) 24.52
3 Exceptional Items from continuing operations
52 weeksended28 March2015 52 weeksended29 March2014
£000 £000
(a) Contract for Differences (7,554) (1,631)
(b) Acquisition costs (398) (655)
(c) Deferred consideration (1,968) ------
(d) Profit on sale of properties ------ 3,297
(e) Restructuring of Australia spinning mills ------ (780)
(9,920) 231
All exceptional items are classified within
administrative expenses (except where noted). (a)
Relates to the Contract for Differences between the
Company and Camden Holdings Limited. The contract was
terminated on 28 July 2014 and resulted in the issue of
7,087,730 new shares on 29 July 2014 to Camden Holdings
Limited, a company wholly owned by The Camden Trust of
which Mr Wilding, Executive Chairman, is the settlor and
a discretionary beneficiary. The value of the contract
on termination was £9.0m, of which £1.6m was accounted
for in the prior year. The exceptional charge in the
period also includes £0.15m of related professional
fees. (b) Relate to professional fees in connection with
the two acquisitions completed during the year. (c)
Deferred consideration in respect to acquisitions is
measured under IFRS 3, initially at fair value
discounted for the time value of money. Subsequently,
deferred consideration is re-measured at each half-year
and year end to unwind the time value of money and for
changes to the earn-out value arising from actual and
forecast business performance. Such adjustments are non
-cash items. (d) Relates to the profit from the sale and
leaseback of Australia's carpet manufacturing facility
and spinning mill in Bendigo, and the profit from the
sale and leaseback of the carpet manufacturing facility
in Kidderminster, UK. This profit is included as part
of other operating income. (e) Relate to costs
associated with the "right-sizing" and reorganising the
two spinning mills to meet reduced volume requirements
as a result of declining demand for woollen yarns.
4 Rates of exchange
The results of overseas subsidiaries have been translated into Sterling at the
average exchange rates prevailing during the periods. The balance sheets are
translated at the exchange rates prevailing at the period ends:
2015 2014
Average Year end Average Year end
Australia - A$ 1.8547 1.9184 1.7057 1.7988
5 Reconciliation of operating (loss)/profit to net cash inflow/(outflow) from
operating activities
Group Company
2015 2014 2015 2014
£000 £000 £000 £000
Operating (loss)/profit from continuing operations (1,310) 2,812 (5,902) 24,163
Adjustments for:
- Depreciation charges 3,003 2,484 ---- 60
- Amortisation of intangible assets 270 70 ---- ----
- Fair value charge for Contract for Differences 7,397 1,605 7,397 1,605
- Deferred consideration revaluation 1,968 ---- 1,301 ----
- Profit on disposal of property, plant and equipment (69) (3,324) ---- (693)
- Exchange rate difference on consolidation (27) 55 ---- ----
Operating cash flows before movements in working capital 11,232 3,702 2,796 25,135
Decrease/(increase) in working capital 857 4,317 (8,112) (11,488)
Cash generated/ (used) by operations 12,089 8,019 (5,316) 13,647
Interest paid (1,419) (531) (1,114) (384)
Income taxes paid (2,113) (395) ---- ----
Net cash inflow/(outflow) from operating activities 8,557 7,093 (6,430) 13,263
6 Analysis of net debt
At29 March2014 Cash flow Acquisitions Othernon-cashchanges Exchangemovement At 28 March2015
£000 £000 £'000 £000 £000 £000
Cash 15,192 (12,800) ---- ---- ---- 2,392
Bank overdraft (5,267) (5,627) ---- ---- ---- (10,894)
Cash and cash equivalents (9,925) (18,427) ---- ---- ---- (8,502)
Finance leases and hire purchase agreements
- Payable less than one year (139) 241 (773) (164) 10 (825)
- Payable more than one year (279) ---- (290) 164 17 (388)
Bank loans
- Bank loans payable less than one year ---- 369 (7,058) ---- ---- (6,689)
- Bank loans payable more than one year (10,988) 1,198 ---- ---- 78 (9,712)
Other loans payable more than one year ---- (10,164) ---- ---- ---- (10,164)
Net debt (1,481) (26,783) (8,121) ---- 105 (36,280)
7. Acquisition of subsidiaries
(a) Abingdon Flooring Limited and its wholly owned subsidiaries
On 30 September 2014, the Group acquired the entire issued share capital of
Abingdon Flooring Limited and its wholly owned subsidiaries, Alliance
Distribution Limited and Distinctive Flooring Limited ('Abingdon Flooring
group'). The principal activity of the Abingdon Flooring group is the
manufacture and sale of carpets, carpet tiles and hard flooring across the UK.
The business operates from facilities in South Wales, Kidderminster and
Yorkshire, employing a workforce of more than 500 people. The acquisition is
expected to be accretive to the underlying earnings per share of the Company.
The Group results for the year ended 28 March 2015 included £38.4m of revenue
and £2.4m profit before tax from the Abingdon Flooring group.
If the acquisition of Abingdon Flooring Group had been completed on the first
day of the financial year, Group revenues for the period would have been
£36.45m higher and Group profit before tax would have been £0.61m higher.
(b) Whitestone Weavers group
On 14 January 2015, the Group acquired the Whitestone Weavers group of
companies, comprising Whitestone Weavers Limited, Carpet Line Direct Limited,
Gaskell Mackay Carpets Limited, View Logistics Limited and Thomas Witter
Carpets Limited. The principal activity of the Whitestone Weavers Group is the
design, sale and distribution of carpets across the UK. The business operates
from facilities in Hartlepool, employing a workforce of more than 100 people.
The acquisition is expected to be accretive to the underlying earnings per
share of the Company.
The Group results for the year ended 28 March 2015 included £7.9m of revenue
and £0.7m profit before tax from the Whitestone Weavers Group.
If the acquisition of the Whitestone Weavers Group had been completed on the
first day of the financial year, Group revenues for the period would have been
£28.56m higher and Group profit before tax would have been £1.12m higher.
8. Post Balance Sheet Events
New bank facilities
The Company has agreed a new multi-currency facility with its existing Group
bankers, Barclays and HSBC, which has replaced existing facilities and
provides substantial headroom for future growth.
9. The results have been extracted from the audited financial statements of
the Group for the 52 weeks ended 28 March 2015. The results do not constitute
statutory accounts within the meaning of Section 434 of the Companies Act
2006. Whilst the financial information included in this announcement has been
computed in accordance with the principles of International Financial
Reporting Standards ("IFRS") as adopted by the EU, IFRIC interpretations and
Companies Act 2006 that applies to companies reporting under IFRS, this
announcement does not itself contain sufficient information to comply with
IFRS. The Group will publish full financial statements that comply with IFRS.
The audited financial statements incorporate an unqualified audit report. The
Auditor's report on these accounts did not draw attention to any matters by
way of emphasis and did not contain statements under S498(2) or (3) Companies
Act 2006.
Statutory accounts for the 52 weeks ended 29 March 2014, which incorporated an
unqualified auditor's report, have been filed with the Registrar of Companies.
The Auditor's report on these accounts did not draw attention to any matters
by way of emphasis and did not contain statements under S498(2) or (3)
Companies Act 2006. The accounting policies applied are consistent with those
described in the Annual Report & Accounts for the 52 weeks ended 29 March
2014.
9. The Annual Report & Accounts will be posted to shareholders in due course.
Further copies will be available from the Company's Registered Office:
Worcester Road, Kidderminster, Worcestershire, DY10 1JR or via the website:
www.victoriaplc.com.
10. The Annual General Meeting is being held at the offices of Brown Rudnick
LLP, at Clifford Street, London, WS1 2LQ, at 2.00pm on Friday, 25 September
2015.
This information is provided by RNS
The company news service from the London Stock Exchange