RNS Number:8603R
Barlo Group PLC
10 November 2003
BARLO GROUP PLC
ANNOUNCEMENT OF INTERIM RESULTS
SIX MONTHS ENDED 30th SEPTEMBER, 2003
HIGHLIGHTS
* Summary of Group's results for first six months:
6 Months 6 Months
30/09/03 30/09/02
Turnover Euro155.5 m Euro146.4 m Up 6%
Operating Profit before
Depreciation and Amortisation
Euro14.7 m -
(EBITDA) Euro14.7 m
Operating Profit before Goodwill
Euro8.6 m Euro8.6 m -
Amortisation
Profit After Tax Euro2.5 m Euro1.8 m Up 42%
Adjusted Earnings Per Share 2.22 cent 1.78 cent Up 25%
Net Debt at Period End Euro114.3 m Euro131.8 m
* Satisfactory overall performance achieved in difficult trading conditions and in line with market
expectations.
* Continued volume growth in all of the Group's businesses.
* Reduced interest charge gave rise to an increase in Adjusted EPS of 25%.
* Good cash generation and reduction in net debt.
* An interim dividend has not been declared.
Tony Mullins, Group Chief Executive, said today:
"The Group achieved a satisfactory performance in the first six months in a
difficult trading environment, particularly in Continental Europe, which
accounts for close to 60% of the Group's activities. Sales volume growth was
achieved in all businesses, and while radiator performance was ahead of plan,
driven by a strong outturn in the U.K., plastics' performance was impacted by
tighter operating margins. The Group has now implemented a programme to further
reduce its plastics' cost base in the second half of the year. Cash generation
remained satisfactory in the first six months.
The Group continues to believe that challenging market conditions will prevail
into the second half of the year".
Results Summary
Turnover grew by 6% from the comparative period last year, with good volume
growth achieved in all of the Group's businesses.
Operating profit before goodwill amortisation amounted to Euro8.6 million (2002:
Euro8.6 million). EBITDA (operating profit before goodwill amortisation and
depreciation) amounted to Euro14.7 million (2002: Euro14.7 million).
Profit after tax amounted to Euro2.5 million, up from Euro1.8 million in 2002 due to a
reduction in the interest charge. The adjusted earnings per share amounted to
2.22 cent (2002: 1.78 cent). Basic (all inclusive) earnings per share amounted
to 1.37 cent (2002: 0.94 cent).
The net debt level at 30th September 2003 amounted to Euro114.3 million down from
Euro115.1 million at 31st March 2003 and Euro131.8 million at 30th September 2002.
This represents a gearing level of 94% (31st March 2003: 96%; 30 September 2002:
113%). The Group expects to continue to reduce its debt in the second half of
the year.
An interim dividend has not been declared, as the Directors continue to believe
that the interests of the Group's shareholders are better served at this stage
by focusing on reducing the Group's debt.
Plastics Business
The Group's Plastics' businesses comprise Barlo Plastics, its clear sheet
operation based in Continental Europe, and Athlone Extrusions, its coloured
sheet activities based in Ireland.
Barlo Plastics
The division achieved satisfactory volume growth in the first half of the year
in what have continued to be very difficult market conditions. Raw material
prices were relatively stable in the first half but there has been some pressure
on margins.
In response to the margin pressures, the Division has implemented a number of
cost reduction steps in the first half of the year. As part of this process a
redundancy programme, involving 40 employees, was announced in October and
implemented in a number of the Group's Western European locations. The cost of
the redundancy programme will be incurred in the second half but is not expected
to have a material impact on the Group.
Athlone Extrusions
Athlone Extrusions performance has been satisfactory in the first half, driven
by a strong performance in the U.K. market. Overall sales volumes have been
ahead of plan and the comparative period last year. Operating profit performance
has been in line with plan.
Radiator Business
The Group's Radiator activities comprise its panel radiator operations trading
under the Barlo and Veha brands, and its design and specification business
trading under the Merriott brand.
Although the panel radiator market continued to be very difficult in the first
half, with the continuation of the severe pricing pressures the Group has
endured in recent years, the Group achieved good overall volume growth driven by
a strong performance in the U.K. As a result, panel radiator performance has
been ahead of plan in the first six months. Raw material prices have increased
in line with expectations in the first half. The indications are that there will
be some upward pressure on steel prices in the second half.
Design radiator performance continues to be adversely affected by pricing
pressures, although sales volume growth was achieved.
Finance
Operating cash inflow for the first six months amounted to Euro8.3 million compared
to Euro11.6 million in the comparative period last year. Cash generation remained
strong in the first half in what is seasonally a period of high working capital
investment. Capital expenditure and financial investment outflow amounted to
Euro3.0 million compared to an inflow of Euro1.6 million last year, when the Group had
the benefit of an asset disposal of Euro4.0 million. Capital expenditure will
remain at modest levels for the second half of the year.
Outlook
The Group has had a satisfactory performance in the first half in what have
continued to be difficult and unpredictable trading conditions. The Group does
not anticipate any improvement in the trading environment in the second half and
its focus will remain on continued debt and cost reduction.
End
10th November, 2003
For Reference:
Tony Mullins
Group Chief Executive
Barlo Group plc.
Tel: (01) 231.0700
Tom Byrne
Murray Consultants
Tel: (01) 498.0300
Appendix
Barlo Group plc
Interim Report 2003
Consolidated Profit & Loss Account
6 Months Ended 12 Months
Ended
30 Sept. 03 30 Sept.02 31 March 03
Unaudited Unaudited Audited
Euro'000 Euro'000 Euro'000
Turnover (Note 2) 155,516 146,422 305,989
Operating Profit before Goodwill Amortisation 8,618 8,550 21,651
Goodwill Amortisation (1,472) (1,472) (2,948)
Operating Profit 7,146 7,078 18,703
Interest payable (net) (4,039) (4,852) (9,587)
Profit on Ordinary Activities before Taxation 3,107 2,226 9,116
Tax on profit on ordinary Activities (584) (449) (1,781)
Profit on Ordinary Activities after Taxation 2,523 1,777 7,335
Minority interests - equity (132) (146) (244)
Profit for the Period 2,391 1,631 7,091
Dividends - - -
Retained Profit for the Period 2,391 1,631 7,091
Balance at beginning of period 67,900 63,368 63,368
Currency translation adjustment (392) (547) (2,559)
Balance at end of Period 69,899 64,452 67,900
Earnings per Share
Basic Cent 1.37 Cent 0.94 Cent 4.07
Diluted Cent 1.37 Cent 0.94 Cent 3.96
Adjusted - Excluding goodwill amortisation Cent 2.22 Cent 1.78 Cent 5.76
Barlo Group plc
Interim Report 2003
Consolidated Balance Sheet
30 Sept. 03 30 Sept. 02 31 March 03
Unaudited Unaudited Audited
Euro'000 Euro'000 Euro'000
Fixed Assets
Intangible assets 50,291 53,239 51,763
Tangible assets 155,881 165,610 159,303
Financial assets 86 96 89
206,258 218,945 211,155
Current Assets
Stocks 39,935 44,422 41,543
Debtors 75,731 77,603 80,918
Cash at bank and in hand 1,712 1,156 3,231
117,378 123,181 125,692
Creditors (amounts falling due within one year) (114,176) (120,756) (122,493)
Net Current Assets 3,202 2,425 3,199
Total Assets Less Current Liabilities 209,460 221,370 214,354
Creditors (amounts falling due after more than one year) (72,496) (88,424) (79,396)
Provisions for Liabilities and Charges (14,940) (16,470) (15,039)
Net Assets 122,024 116,476 119,919
Capital and Reserves
Called up share capital 21,881 21,881 21,881
Share premium account 11,671 11,671 11,671
Other reserves 16,884 17,013 16,910
Profit and loss account 69,899 64,452 67,900
Shareholders' Funds - Equity 120,335 115,017 118,362
Minority Interests
Equity 1,681 1,451 1,549
Non Equity 8 8 8
1,689 1,459 1,557
122,024 116,476 119,919
Barlo Group plc
Interim Report 2003
Consolidated Cash Flow Statement
6 Months Ended 12 Months
Ended
30 Sept. 03 30 Sept. 02 31 March 03
Unaudited Unaudited Audited
Euro'000 Euro'000 Euro'000
Net Cash Inflow from Operating Activities 8,267 11,631 34,707
Returns on Investments and Servicing of Finance (4,324) (4,376) (7,953)
Taxation (128) 54 (1,512)
Capital Expenditure and Financial Investment (3,016) 1,554 397
Cash Inflow before Financing 799 8,863 25,639
Financing
New loans drawn down 6,750 6,437 1,890
Repayment of loans (7,227) (7,399) (19,404)
Finance lease repayments 40 (6) 26
(437) (968) (17,488)
Increase in Cash in the Period 362 7,895 8,151
Reconciliation of Net Cash Flow to Movement in Net Debt
Increase in cash in the period 362 7,895 8,151
Decrease in debt and lease financing 436 935 17,319
Translation difference 17 34 91
Movement in Net Debt in the Period 815 8,864 25,561
Net Debt at Start of Period (115,104) (140,665) (140,665)
Net Debt at End of Period (114,289) (131,801) (115,104)
Notes to the Interim Financial Statements
1. Basis of Preparation
This interim statement has been prepared on the basis of the accounting
policies set out in the Annual Report for the year ended 31st March 2003.
2. Turnover
Segmental Analysis
a. By Business Segment
12 Months
6 Months Ended Ended
30 Sept. '03 30 Sept. '02 31 Mar. '03
Unaudited Unaudited Audited
Euro'000 Euro'000 Euro'000
Plastics 107,490 103,601 210,519
Radiators 48,026 42,821 95,470
155,516 146,422 305,989
b. By Geographical Segment (Destination)
12 Months
6 Months Ended Ended
30 Sept. '03 30 Sept. '02 31 Mar. '03
Unaudited Unaudited Audited
Euro'000 Euro'000 Euro'000
Ireland 17,184 16,674 33,901
United Kingdom 49,336 42,677 106,539
Continental Europe & Other 88,996 87,071 165,549
155,516 146,422 305,989
This information is provided by RNS
The company news service from the London Stock Exchange
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