Warner Howard PLC - Interim Results
12 11월 1998 - 4:30PM
UK Regulatory
RNS No 5398c
WARNER HOWARD PLC
12th November 1998
Warner Howard PLC
Interim Results for the six months ended 31 August 1998
Warner Howard PLC, the commercial laundry systems,
hygiene and waste equipment group, today announces
interim results for the half year ended 31 August 1998.
* Turnover at #12.74 million (1997: #13.11 million)
* Pre-tax profits of #3.65 million (1997: #3.85
million, before exceptional items of #0.59m)
* Earnings per share of 10.40p (1997: 9.28p)
* Dividend maintained at 3.85p
* Markets remain competitive
* Hygiene division returned to growth with increases
in both sales and rental income resulting in 6% greater
revenue. New lower price dryer to be launched shortly
* New marketing initiative is currently being launched
for the laundry division
* Orwak Linley, the waste handling equipment
specialist, increases profits 11% by broadening the
industry groups with which it does business
Ronald Hooker, Chairman, commented:
"The underlying strategies of each of the divisions
including new product launches and marketing initiatives,
aimed at building the rental portfolio, will benefit the
longer term. Warner Howard remains in excellent
financial health and we will continue to evaluate
potential acquisitions."
12 November 1998
Enquiries:
Warner Howard plc Tel: 0181 206 2900
Ernie Hazell, Chief Executive
Harvey Adams, Managing Director
Paul Jacobs, Finance Director
College Hill Tel: 0171 457 2020
Matthew Smallwood
Justine Warren
CHAIRMAN'S STATEMENT
Profit before tax for the six months to 31 August 1998
was #3.65 million compared with a profit before tax and
exceptional items of #3.85 million in the first half of
last year. Turnover for the period was down 3% compared
with the same period last year at #12.74 million. We are
maintaining the interim dividend at last year's level of
3.85p per share.
Trading review
Despite a highly competitive market and the failure to
renew a major rental contract, the laundry equipment
division was able to maintain the same level of turnover
as last year due to an increase in volume of new
business, albeit at slightly reduced margins. This
autumn a major marketing initiative has been launched
with the aim of building the rental portfolio and
increasing the level of predictable, long-term income.
I am pleased to report that, following a number of flat
years, the hygiene division has returned to growth.
Turnover in the six months to August was 6% higher than
the equivalent period last year with increases in both
sales and rental income. The long - standing, flagship
product of the hygiene division is the "World" warm air
hand dryer, renowned for its quality and durability.
This product will shortly be complemented by a lower
price dryer from World, which will create opportunities
in segments of the market that have not been available to
us in the past.
Orwak Linley, our waste handling equipment subsidiary,
increased its pre-tax profit by 11% on a similar level of
turnover to last year. A slow-down in store openings by
the major food retailers, Orwak Linley's largest customer
group, adversely affected new sales but this has been
countered by increased sales and rentals to other sectors
of industry. The division has introduced a number of
new products under the well-respected Orwak brand as part
of a continuing process to broaden the product range.
The division is also striving to widen the appeal of its
products through increased awareness of the potential
savings from improved waste disposal.
We have made major strides in improving both the
efficiency of our service operation and the quality of
the service that we provide to our customers. This has
been achieved through the recruitment of high-calibre
management, extensive technical and customer care
training and further investment in IT and communication
systems.
Year 2000
The Group's Year 2000 programme is well advanced and, as
a result of internal testing and suppliers'
confirmations, we are confident that neither the
performance nor the functionality of the Group's systems
or equipment are affected by dates prior to, during or
after the Year 2000. No significant costs have been
incurred in connection with the Year 2000 programme.
Prospects
We are confident that the strategies being followed will
ensure a return to growth. The Group's strong balance
sheet and positive cashflow create an excellent platform
from which to make suitable acquisitions. We have
researched and evaluated a number of potential businesses
and are continuing to investigate other opportunities.
Ronald G. Hooker
CBE.F. Eng
Chairman
12 November 1998
UNAUDITED GROUP PROFIT AND LOSS ACCOUNT
for the six months ended 31 August 1998
6 months 6 months Year ended
ended ended 28 February
31 August 31 August
1998 1997 1998
#'000 #'000 #'000
Turnover 12,738 13,110 27,350
Operating profit 3,408 3,712 7,468
Provision for costs
of discontinuing the - (590) (675)
catering activity
Net interest 240 139 334
receivable
Profit on ordinary
activities before 3,648 3,261 7,127
taxation
Taxation (1,131) (1,016) (2,179)
Profit attributable
to ordinary 2,517 2,245 4,948
shareholders
Ordinary dividends (931) (931) (2,903)
Retained profit 1,586 1,314 2,045
Earnings per 10.40p 9.28p 20.46p
ordinary share
Dividend per 3.85p 3.85p 12.00p
ordinary share
UNAUDITED GROUP BALANCE SHEET
as at 31 August 1998
31 August 1998 31 August 1997 28 February 1998
#'000 #'000 #'000
Fixed assets
Tangible assets 17,909 17,979 17,880
Current assets
Stocks 3,828 4,417 3,988
Debtors 5,126 5,072 5,178
Cash at bank and in 7,391 3,829 5,305
hand
16,345 13,318 14,471
Creditors due within (7,937) (7,298) (7,620)
one year
Net current assets 8,408 6,020 6,851
Total assets less 26,317 23,999 24,731
current liabilities
Provisions for (66) (66) (66)
liabilities and
charges
Net assets 26,251 23,933 24,665
Capital and reserves
Called up share 1,210 1,210 1,210
capital - equity
Share premium account 2,379 2,378 2,379
Capital redemption 914 914 914
reserve
Profit and loss 21,748 19,431 20,162
account
Shareholders' funds 26,251 23,933 24,665
Interim Results for the six months ended 31 August 1998
UNAUDITED GROUP CASH FLOW STATEMENT
6 months 6 months Year ended
ended ended 28
31 August 31 August February
1998 1997 1998
#'000 #'000 #'000
Net cash flow from
operating activities 5,709 5,298 10,918
Returns on
investments and 240 139 331
servicing of finance
Corporation tax paid (233) (634) (2,545)
Capital expenditure (1,659) (2,095) (3,589)
Dividends paid (1,971) (1,692) (2,624)
Financing - 29 30
Increase in cash and
short term deposits 2,086 1,045 2,521
Notes
1. This interim statement incorporates the results for
Warner Howard plc and all of its subsidiaries for
the six months ended 31 August 1998 and has been
prepared using consistent accounting policies to
those adopted in the previous audited financial
statements.
The results for the year ended 28 February 1998 are
abridged from the full accounts for that year on
which the auditors have issued an unqualified
report. A copy of these accounts has been delivered
to the Registrar of Companies and further copies are
available from the Company's registered office at
170/172 Honeypot Lane, Stanmore, Middlesex HA7 1EE.
2. The earnings per share before exceptional items of
10.40p are calculated on the profit after taxation
using the weighted average number of shares in issue
during the period of 24, 190, 757 (1997:24,185,411).
3. The interim results will be circulated to
shareholders and copies of this report are available
for inspection at the Company's registered office.
4. The interim dividend of 3.85p is payable on 4
January 1999 to shareholders on the register on 27
November 1998.
5. Turnover by division is analysed as follows:-
6 months 6 months Year ended
ended ended 28 February
31 August 31 August 1998
1998 1997 #'000
#'000 #'000
Laundry 4,096 4,101 8,502
Hygiene 3,215 3,047 6,845
Waste 3,409 3,422 7,032
management
Derek Wright 493 483 947
Other 1,525 2,057 4,024
activities
12,738 13,110 27,350
END
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