TIDMTOYE
RNS Number : 3977D
Toye & Co PLC
16 May 2012
TOYE & COMPANY PLC
(AIM: TOYE)
Preliminary Final Results for the Year Ended 31 December
2011
The Board of Toye & Company Plc ("Toye" or "the Company")
announces today Final Results for the year ended 31 December
2011.
Contacts:
Toye & Company plc www.toye.com
Fiona Toye, Chief Executive +44 (0) 20 7242 0471
WH Ireland Limited www.wh-ireland.co.uk
Mike Coe / Marc Davies +44 (0) 117 945 3470
Chief Executive's Report
This year we focused your Company on adapting to respond to:
-- Changing customer demands
-- Challenging economic conditions
We believe we have made significant progress in achieving this
aim as further detailed in this report.
Our Strengths:
-- Exceptional and unique range of craft skills
-- Design excellence
-- Quality of supply chain
-- Heritage
-- The ability to change
Our Vision:
-- Creativity in design at our heart
-- Combining superb craft skills with quality and service to
produce a wide variety of products, tailored to the needs of our
customers ranging from the Royal Household to Paul Smith
-- We sell all over the world
We plan to:
-- Grow earnings sustainably
-- Expand our customer base and markets
-- Balance our cost base in line with our turnover
-- Maintain a healthy balance sheet throughout the financial cycle
RESULTS
Turnover for the year ended 31 December 2011 amounted to
GBP7,981,006 compared to GBP8,489,519 for the previous year. This
decrease of GBP508,513 was due to the extremely difficult trading
conditions in our traditional markets, and the winding down of a
significant contract, the bulk of which was delivered in 2010.
Export sales have continued to be resilient, with an increase to
GBP1,870,949 over last years' GBP1,786,619. As in the previous year
these sales are in our traditional military and retail markets.
Gross profits have declined due to increased prices for precious
metals and factored goods from overseas. It is worth noting that
all commodity prices have risen in the last year, whilst our direct
labour costs have remained consistent with the prior year despite
the fall in turnover.
The tough trading conditions have resulted in a loss for the
year of GBP439,391, which directly reflects the fall in
turnover.
TRADING CONDITIONS
The current economic recession has been longer in duration and
deeper in impact than the Great Depression of the 1930s.
This has meant a lack of consumer confidence, and a pervasive
policy of cost cutting and reduction in purchasing throughout our
customer base in all market areas.
There is a clear decline in our traditional business, which is
compensated for by a rise in contractual and project management
work. We either undertake large contracts, sometimes in partnership
with other UK companies, or manage on-going supply and service
projects that encompass the design, manufacture and supply of a
range of product that is stocked, stored and distributed by us for
the customer.
There is fierce competition in all market areas not just from
the UK, but from foreign competitors too. We now consider the world
to be our hunting ground as we seek new customers, and so do the
competition.
The Company Response
Your Company has responded to this environment with the
following strategies:
-- An increase in contractual and project management work
-- A focus on pursuing large contracts-where appropriate in joint ventures
-- Investment in the supply chain operation
-- Re-organisation of facilities to match our strategies
-- Reduction and assignment of staff to match strategies
-- Rationalisation of our brands
-- Emphasis on 'one company' operation with focused sales across all markets
MANAGEMENT AND STAFF
We have further rationalised staff to match the continued
challenging trading conditions, and to appropriately align staffing
with our new strategies.
We have established a combined sales administration office for
the Company in Bedworth, which is home to our textile production.
Sales administration, supply chain management and the financial
secretariat are now all on one site.
This move meant the closure of the Birmingham sales office, and
some staff redundancies as not all were willing to move to another
location with the personal adjustments this entailed.
The purpose of this restructuring is to improve efficiency,
customer service and communication both internally and externally,
and thus drive sales.
The supply chain management is now located in the same office as
the sales administration, which accelerates the quotation process
ensuring a speedier response to customers.
We have also embarked on a programme of reorganisation and
refurbishment in all areas to improve working conditions for the
staff, and to improve performance. We need to manage costs and
invest appropriately, and this particularly applies to staff
training. The introduction of fresh talent to our skilled but
ageing team of crafts people is a priority.
PROGRESS AND OUTLOOK
In 2011 Toye & Co has continued to excel in its core
disciplines of design and craftsmanship both in metals and
textiles, and are working hard to refine customer service,
especially in the relatively new areas for us of supply chain and
distribution services. The rationalisation program has been painful
with loss of personnel and many changes, but the result is a
tangibly positive attitude throughout the Company, and an impetus
for constructive change and development.
This year your Company has admirably demonstrated exceptional
craft and production skills. Most notable since the year end is our
response to the Queen's Diamond Jubilee Medal Contract. This medal
is being awarded to serving members of the Armed Forces, Emergency
Services and the Prison Service. With two other companies in
Birmingham's Jewellery Quarter we are manufacturing 450,000
die-struck medals to superlative standard, and meeting tight
delivery deadlines.
The Queen's Diamond Jubilee Medal Contract will underpin an
improved trading performance for 2012. The medals are silver-plated
nickel silver, suspended on Toye & Co ribbon, and presented in
British made boxes. This is a superb example of British manufacture
at its best, and of the benefit of working together on a project by
project basis with other companies.
The unique selling points of our Company are the combination of
metal working, enamelling and textile skills executed to the
highest standards, and superb design. This concentration on high
value, low volume work is typical of British companies in our
industry sectors. It means we retain the key skills, and need a
smaller workforce, (though we are still labour heavy due to the
emphasis on hand skills). The common sense in over-coming historic
suspicions, and working together with other companies to win large
scale and profitable contractual work is a great enhancement to our
repertoire. Being part of UK PLC is an important element of our
on-going business.
The Company has also increased its portfolio of work for leading
High Street retail brands in the UK and overseas, and in total
contrast played a key role in reproducing historical textiles for
restoration work at the Kremlin.
Facilities
Our three sites are all undergoing significant change as part of
our on-going programme to improve operation and working conditions,
reduce costs, and achieve maximum utilisation of these key
resources.
Bedworth is the home of our new combined sales administration
office. We have used this move to create a considerably more
disciplined office environment with a review of procedure to place
the emphasis on digital records rather than endless filing cabinets
and desk tops of paper. The financial secretariat and company
records have moved over to 'The Cottage' in the centre of the site,
and there is a new meeting room for our increasingly frequent
visitors on the ground level of this building. The upgraded and
extended warehouse and distribution facilities are handling the
full supply services for some of our large customers, and
responding to our e-commerce so that small and finished goods
orders are dispatched cost-effectively.
Birmingham will remain an essential part of the business, and a
strong presence in the Jewellery Quarter. But the utilisation of
space in this large building must reflect our needs. During the
course of the next year I want to investigate how we can maximise
the return from this asset by concentrating on the operational
layout to improve productivity and working conditions. I believe
this will also result in the 'discovery' of excess space.
London The Great Queen Street Showrooms and offices are also
being invested in and developed. This site has been an expensive
and underutilised facility. It should work for us to generate cash,
and as an investment. With this in mind negotiations are at an
advanced stage for the leasing of the original ground floor and
basement Showrooms to a high covenant retailer. This would give a
significant contribution towards the site costs going forward.
We are currently refurbishing the first floor to create a truly
unique Masonic meeting place -The Toye Club Room. The second floor
offices are being finished to a high standard to provide office and
meeting places for the sales teams for all market areas. By the
official opening in September this site will be a fitting
'show-case' for our business - which is all about superb
traditional craftsmanship and service with a distinctly dynamic and
modern attitude.
We are committed to retaining our presence on 'the Street', and
serving the Masonic community, and all our London and overseas
customers from our address at 19-21 Great Queen Street, that they
know so well.
The immediate priorities of the management are to strengthen our
financial foundation, and to achieve sustainable profits. Though we
continue to operate from three sites we are one company. This
united approach is reflected by a rationalisation of our trading
brands under the Toye & Company banner. We are concentrating on
quality and customer service and driving sales in our many and
varied markets. For the longer term we will invest in our superb
range of skills for the next generation, utilising the best in
modern management techniques.
Although 2012 will be a challenging year, the trading
performance for 2012 will be underpinned by the Queens Diamond
Jubilee Contract, the anticipated leasing of the Great Queen Street
Showroom and the continuous review of our cost base.
Fiona Toye
Chief Executive
16 May 2012
Group Statement of Comprehensive Income
for the year ended 31 December 2011
2011 2010
GBP GBP
Revenue 7,981,006 8,489,519
Operating expense (8,369,796) (8,329,900)
------------------------------------------ ------------- -------------
Operating (loss)/profit (388,790) 159,619
Finance costs (50,601) (59,473)
(Loss)/profit before taxation (439,391) 100,146
Taxation - -
(Loss)/profit for the year (439,391) 100,146
------------------------------------------ ------------- -------------
Other comprehensive income
Other comprehensive income - -
for the year
------------------------------------------ ------------- -------------
Total comprehensive income
for the year (439,391) 100,146
------------------------------------------ ------------- -------------
Earnings per share
(Loss)/earnings per share (basic
and diluted) (19.55)p 4.45p
Statements of Financial Position
at 31 December 2011
The Group The Company
2011 2010 2011 2010
GBP GBP GBP GBP
Assets
Non-current assets
Property, plant & equipment 1,934,241 1,998,817 1,802,720 1,841,740
Investments in subsidiary undertakings - - 1,155,852 1,467,014
----------------------------------------- ----------- ----------- ----------- -----------
1,934,241 1,998,817 2,958,572 3,308,754
----------------------------------------- ----------- ----------- ----------- -----------
Current assets
Inventories 1,351,304 1,333,818 - -
Trade and other receivables 968,469 1,660,642 3,406 5,267
Cash and cash equivalents 5,665 21,056 - -
----------------------------------------- ----------- ----------- ----------- -----------
2,325,438 3,015,516 3,406 5,267
----------------------------------------- ----------- ----------- ----------- -----------
Liabilities
Current liabilities
Trade and other payables 1,335,847 1,483,315 781,414 479,308
Current borrowings 715,977 761,760 - 109,164
Current portion of long term
borrowings 124,724 122,012 124,724 122,012
----------------------------------------- ----------- ----------- ----------- -----------
2,176,548 2,367,087 906,138 710,484
----------------------------------------- ----------- ----------- ----------- -----------
Net current assets / (liabilities) 148,890 648,429 (902,732) (705,217)
----------------------------------------- ----------- ----------- ----------- -----------
Non-current liabilities
Non-current borrowings 859,121 983,845 859,121 983,845
859,121 983,845 859,121 983,845
----------------------------------------- ----------- ----------- ----------- -----------
Net assets 1,224,010 1,663,401 1,196,719 1,619,692
----------------------------------------- ----------- ----------- ----------- -----------
Equity attributable to equity
holders of the parent
Ordinary shares 562,000 562,000 562,000 562,000
Share premium 2,677 2,677 2,677 2,677
Retained earnings 659,333 1,098,724 632,042 1,055,015
----------------------------------------- ----------- ----------- ----------- -----------
Total equity 1,224,010 1,663,401 1,196,719 1,619,692
----------------------------------------- ----------- ----------- ----------- -----------
Statements of Changes in Equity
for the year ended 31 December
2011
Ordinary Share Retained Total
shares premium earnings equity
GBP GBP GBP GBP
The Group
Balance at 1 January 2010 562,000 2,677 998,578 1,563.255
Changes in equity for 2010
Profit for the year - - 100,146 100,146
---------------------------------- ---------- ---------- ----------- -----------
Total comprehensive income
for the year - - 100,146 100,146
Balance at 31 December 2010 562,000 2,677 1,098,724 1,663,401
Changes in equity for 2011
(Loss) for the year - - (439,391) (439,391)
---------------------------------- ---------- ---------- ----------- -----------
Total comprehensive income
for the year - - (439,391) (439,391)
Balance at 31 December 2011 562,000 2,677 659,333 1,224,010
---------------------------------- ---------- ---------- ----------- -----------
The Company
Balance at 1 January 2010 562,000 2,677 920,959 1,485,636
Changes in equity for 2010
Profit for the year - - 134,056 134,056
---------------------------------- ---------- ---------- ----------- -----------
Total comprehensive income
for the year - - 134,056 134,056
Balance at 31 December 2010 562,000 2,677 1,055,015 1,619,692
Changes in equity for 2011
(Loss) for the year - - (422,973) (422,973)
---------------------------------- ---------- ---------- ----------- -----------
Total comprehensive income
for the year - - (422,973) (422,973)
Balance at 31 December 2011 562,000 2,677 632,042 1,196,719
---------------------------------- ---------- ---------- ----------- -----------
Statements of Cash Flows
for the year ended 31 December
2011
The Group The Company
2011 2010 2011 2010
GBP GBP GBP GBP
Cash flows from/(used by) operating
activities
Cash generated from/(used by)
operating activities 232,281 (72,191) 121,855 845
Interest received - - 159,922 159,922
Interest paid (50,601) (59,473) (50,601) (59,473)
--------------------------------------- ------------ ------------ ------------ -----------
Net cash generated from / (absorbed
by) operating activities 181,680 (131,664) 231,176 101,294
--------------------------------------- ------------ ------------ ------------ -----------
Cash flows from investing activities
Purchase of property, plant
and equipment (40,149) (57,551) - -
Proceeds from sale of property,
plant and equipment 10,873 - - -
--------------------------------------- ------------ ------------ ------------ -----------
Net cash flows (used in) investing
activities (29,276) (57,551) - -
--------------------------------------- ------------ ------------ ------------ -----------
Cash flows from financing activities
Repayment of borrowings (122,012) (119,300) (122,012) (119,300)
--------------------------------------- ------------ ------------ ------------ -----------
Net cash flows (used in) financing
activities (122,012) (119,300) (122,012) (119,300)
--------------------------------------- ------------ ------------ ------------ -----------
Net increase/(decrease) in
cash and cash equivalents 30,392 (308,515) 109,164 (18,006)
Cash and cash equivalents at
the beginning of the year (740,704) (432,189) (109,164) (91,158)
--------------------------------------- ------------ ------------ ------------ -----------
Cash and cash equivalents at
the end of the financial year (710,312) (740,704) - (109,164)
--------------------------------------- ------------ ------------ ------------ -----------
1. Basis of preparation
These consolidated financial statements have been prepared in accordance
with IFRS and International Financial Reporting Interpretations
Committee ("IFRIC") interpretations as adopted by the European
Union, and those parts of the Companies Act 2006 applicable to
companies reporting under IFRS.
2. Segmental reporting
In identifying its operating segments, management generally follow
the manufacturing or sourcing of the products.
The Group operates in the supply of identity products to a large
and varied market and customer base. The type of products sold
into this market generally fall under either a textile or metals
(including corporate gifts) umbrella. The exception to this being
the friendly societies market.
Each of the textile, metals and friendly societies operating segments
is managed separately as each of these segments requires different
resources and core skills. All transfers between the segments are
carried out at cost.
The measurement policies the Group uses for segment reporting under
IFRS 8 are the same as those used in its financial statements.
Management currently identifies three units as operating segments
as described above. These operating segments are monitored and
strategic decisions are made on the basis of segment operating
results.
Textiles Friendly Metals Total
societies
2011 2011 2011 2011
GBP GBP GBP GBP
Revenue 3,706,479 911,312 3,609,817 8,227,608
----------------------------- ----------- ----------- ---------- ----------
Gross profit 1,617,241 267,475 1,344,741 3,229,457
Works overheads 526,256 94,472 663,739 1,284,467
----------------------------- ----------- ----------- ---------- ----------
Manufacturing contribution
by segment 1,090,985 173,003 681,002 1,944,990
----------------------------- ----------- ----------- ----------
Selling and administration costs 2,178,368
----------
(Loss) before finance and costs associated with the listing (233,378)
Costs associated with the
AIM listing 83,530
Other bank charges and leasing costs 71,882
Interest 50,601
------------------------------------------ ----------- ---------- ----------
Net (loss) (439,391)
----------------------------- ----------- ----------- ---------- ----------
Included in total revenue is GBP246,602 in respect of sales between
business segments.
Textiles Friendly Metals Total
societies
2010 2010 2010 2010
GBP GBP GBP GBP
Revenue 3,337,388 945,397 4,475,944 8,758,729
----------------------------- ----------- ----------- ---------- ----------
Gross profit 1,438,817 328,456 1,947,568 3,714,841
Works overheads 511,861 56,570 614,400 1,182,831
----------------------------- ----------- ----------- ---------- ----------
Manufacturing contribution
by segment 926,956 271,886 1,333,168 2,532,010
----------------------------- ----------- ----------- ----------
Selling and administration costs 2,219,079
----------
Profit before finance and costs associated with the listing 312,931
Costs associated with the
AIM listing 81,956
Other bank charges and leasing costs 71,356
Interest 59,473
------------------------------------------ ----------- ---------- ----------
Net profit 100,146
----------------------------- ----------- ----------- ---------- ----------
Included in total revenue is GBP269,210 in respect of sales between
business segments.
The Group's revenues from external customers are divided into the
following geographical markets:
2011 2010
GBP GBP
United Kingdom 6,110,057 6,702,900
Rest of World 1,870,949 1,786,619
------------------------------- -------------------- --------------------
7,981,006 8,489,519
------------------------------- -------------------- --------------------
All non-current assets are held within the United Kingdom. Additions
to fixed assets are disclosed in note 11.
During 2011 no single customer accounted for more than 10% of the
Group's revenue. During 2010, GBP1,208,732 or 14.2% of the Group's
revenues depended on a single customer whose sales were made from
the textiles and metals segments.
The assets of the business have been attributed to the segments
on the following basis.
Textiles Friendly Metals Total
societies
2011 2011 2011 2011
GBP GBP GBP GBP
Inventories 665,588 281,326 404,390 1,351,304
Unallocated assets 2,908,375
Unallocated liabilities 3,035,669
2010 2010 2010 2010
GBP GBP GBP GBP
Inventories 647,649 275,074 411,095 1,333,818
Unallocated assets 3,680,515
Unallocated liabilities 3,350,932
Non current assets are not allocated between segments.
All segments of the Group sell into the same markets and share
many of the same customers and thus receivables are not attributed
to the individual business segments.
Similarly all segments of the Group purchase from the same suppliers
and as such the trade payables are not attributed to the business
segments.
Borrowing and finance costs are arranged centrally by the Group
and are not attributed to the business segments.
3. Operating expenses by nature
2011 2010
GBP GBP
Changes in inventories of finished goods and work in progress (47,094) (108,150)
Raw materials and consumables used 3,780,877 3,847,095
Employee benefits 3,121,532 3,123,510
Depreciation - owned assets 93,977 116,195
Audit and non-audit services 34,545 36,150
Hire of plant and machinery 21,442 25,414
Other expenses 1,364,517 1,289,686
------------------------------------------------------------------------- ----------- -----------
8,369,796 8,329,900
------------------------------------------------------------------------- ----------- -----------
Included in cost of raw materials and consumables used is a credit of GBP9,146 (2010: credit
GBP39,044) in respect of the movement in the inventory provision.
4. Profit for the financial year
The loss dealt with in the accounts of the Parent Company was GBP422,973 (2010: GBP134,056
profit). The Parent Company had no other comprehensive income for the year other than the
profit for the year (2010: GBPnil).
5. Earnings per ordinary 25p share
The earnings per ordinary 25p share is based on the profit or loss after taxation and the
average number of shares in issue throughout the year.
2011 2010
(Loss)/profit GBP(439,391) GBP100,146
Average number of shares in issue 2,248,000 2,248,000
(Loss)/profit per share - basic and diluted (19.55)p 4.45p
There were no potentially dilutive ordinary shares in issue.
6. Share Capital
2011 2010
GBP GBP
Authorised
3,000,000 Ordinary shares of 25p each 750,000 750,000
----------------------------------------- ---------- ----------
Allotted and fully paid
2,248,000 Ordinary shares of 25p each 562,000 562,000
----------------------------------------- ---------- ----------
7. Cash generated from/(used by) operating activities
The Group The Company
2011 2010 2011 2010
GBP GBP GBP GBP
Operating (loss)/profit (388,790) 159,619 (532,294) 33,607
Depreciation - property,
plant and equipment 93,977 116,195 39,020 39,020
(Profit) on sale of fixed
assets (125) - - -
Addition/(release) to
provision against investments - - 409,390 (89,266)
(Increase) in loans to - - (98,228) -
group companies
(Increase) in inventories (17,486) (126,332) - -
Decrease/(increase) in
trade and other receivables 692,173 (447,398) 1,861 4,688
Decrease/(increase) in
trade and other payables (147,468) 225,725 302,106 12,796
--------------------------------- ----------- ----------- ----------- ----------
232,281 (72,191) 121,855 845
--------------------------------- ----------- ----------- ----------- ----------
The financial information, which has been prepared on the same
basis as set out in the 2010 Annual Accounts, does not constitute
statutory accounts as defined in section 435 of the Companies Act
2006. The financial information for the year ended 31 December 2011
has been extracted from the statutory accounts on which an
unqualified audit opinion has been issued. Statutory accounts for
the year ended 31 December 2011 will be delivered to the registrar
in due course. The comparative financial information is based on
the statutory accounts for the financial year ended 31 December
2010. Those accounts, upon which the auditors issued an unqualified
opinion, have been delivered to the registrar of companies.
The Report and Accounts will be posted later today to
Shareholders and the Annual General Meeting will be held on 21 June
2012 at 12.30 pm at the company's offices at 77 Warstone Lane,
Birmingham B18 6NL. The Report and Accounts will also be available
from the Company's website, www.toye.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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