Final Results
21 Ottobre 2003 - 5:02PM
UK Regulatory
RNS Number:1397R
Coburg Group PLC
21 October 2003
CHAIRMAN'S STATEMENT
Trading Results
Solid progress has been made during the last year in re-establishing the group
on a sound financial basis. There was a significant improvement in the group's
finances during the year and the loss was substantially reduced from #239,000
(2002) to #33,000 for the year ending April 30th 2003. Group sales increased
from #1,836,000 to #1,907,000. All three operating companies Langdons (Coffee &
Tea), Citifilter and CK Coffee made a contribution to profits and central
overheads were further reduced. The improvement was partly attributable to the
acquisition and successful integration of the business of Ashbys Tea & Coffee.
The assets of this business were acquired for a total consideration of #103,000
which included a payment of #35,000 in respect of the rights to use the brand
name and #13,000 in respect of certain machinery held on a finance lease. The
Ashbys business now operates from new premises as the Colchester branch of
Langdons (Coffee and Tea) Ltd and continues to make a useful contribution to the
group.
Current Trading
The exceptionally warm summer reduced the demand for hot beverages, thus sales
during this period have been disappointing. However, the group has continued to
strengthen its financial position with the acquisition of the G & M Rizzi coffee
business. A total consideration of #137,000 has been paid and this sum has been
financed from internal resources and a term loan of #60,000. Rizzi Coffee has
an extremely well established range of Italian style espresso coffees and it is
hoped that the group will be able to actively develop a larger market for these
products. I am pleased that Mr John Rizzi, the founder of the business, has
agreed to work with us to this end.
Corporate Matters
The introduction of the company's shares to the Alternative Investment Market in
October 2002 has been generally well received. In September 2002 the company's
shares were converted from the old 0.5p shares into new 5p shares by the
consolidation on the basis of one new 5p share for every 10 old 0.5p shares.
This has had the effect of substantially reducing the percentage difference
between the buying and selling prices in the stock market. In January 2003 the
company raised a further #180,000 by placing 2,000,000 new ordinary shares at 9p
per share with clients of Fiske plc, the company's brokers. This was done, in
part, to finance the acquisition of the purchase of the Ashby's Tea & Coffee
business.
Management and Board changes
In February 2003 Mr Jeremy Maynard joined the Board as a non-executive director.
He has since agreed to carry out various consultancy assignments for the
group. Jeremy has a very extensive knowledge of the group having been the
managing director of Langdons during its successful development in the years
1987-1996.
Mr Alistair Summers, who joined the board in August 2002, will take over as
group chief executive immediately following the forthcoming Annual General
Meeting. It is proposed that I then assume the position of non-executive
chairman.
Future developments and prospects
It is the directors' intention to continue to expand and develop the business by
the acquisition of other tea and coffee businesses and, to this end, resolutions
are included in the forthcoming Annual General Meeting to give the directors
powers to issue further shares for acquisitions and for cash. To support
acquisitions of this year and the future the directors propose to substantially
upgrade the roasting and packing facilities at the Woolwich factory site to
enable a more effective integration of the various businesses within the group.
I believe that the present structure of the group and the creation of a young
and professional management team, to be led by Alistair Summers, offers good
prospects for the development of a serious and successful business.
K.P LEGG
21st October 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 30 April 2003
2003 2002
#000 #000
Turnover
Continuing operations 1,651 1,585
Acquisitions 256 251
-------- --------
Total Turnover 1,907 1,836
Cost of sales (908) (929)
-------- --------
Gross profit 999 907
Distribution and selling costs (325) (393)
Administrative costs (698) (644)
-------- --------
Operating (loss) / profit
Continuing operations (49) (138)
Acquisitions 25 8
-------- --------
Group operating (loss) / profit (24) (130)
Loss on sale of fixed assets in continuing operations (1) (69)
-------- --------
(Loss) / profit on ordinary activities before interest (25) (199)
Investment income 2 14
Amounts written off investments (4) (44)
Interest payable (6) (7)
-------- --------
(Loss) / profit on ordinary activities before taxation (33) (236)
Taxation - -
-------- --------
(Loss) / profit on ordinary activities after taxation (33) (236)
Equity minority interests (-) (3)
(Loss) / profit retained for the financial year (33) (239)
-------- --------
(Loss) / earnings per share in pence - basic and diluted (0.30) (2.26)
There are no recognised gains or losses in either the current or previous
financial years other than the profits and losses disclosed in the profit and
loss account. Accordingly no statement of total recognised gains and losses has
been prepared.
CONSOLIDATED BALANCE SHEET
As at 30 April 2003
2003 2002
Note #000 #000 #000 #000
Fixed assets
Tangible assets 357 391
Intangible assets 223 148
Investments - 16
-------- --------
580 555
Current assets
Stocks 164 150
Debtors 414 279
Cash at bank and in hand 72 6
-------- --------
650 435
Creditors: amounts falling due
within one year (421) (322)
-------- --------
Net current assets 229 112
-------- --------
Total assets less current liabilities 809 668
Creditors: amounts falling due
after more than one year (14) (20)
Minority Interests
Equity minority interests (10) (10)
-------- --------
Net assets 785 638
-------- --------
Capital and reserves
Called up share capital 630 530
Share premium account 226 146
Other reserves 428 428
Profit and loss account (499) (466)
-------- --------
Equity shareholders' funds 785 638
-------- --------
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 April 2003
2003 2002
Note #000 #000 #000 #000
Net cash inflow from
Operating activities 1 30 23
Returns on investment and
servicing of finance
Interest paid (6) (7)
Investment income 2 14
-------- --------
(4) 7
Capital expenditure and financial investment
Purchase of tangible assets (41) (44)
Purchase of fixed asset investments - (18)
Sale of fixed asset investments 12 108
Sale of tangible fixed assets 7 -
-------- --------
(22) 46
Acquisitions and disposals
Purchase of business undertaking 4 (103) (102)
Net (debt) / cash acquired with subsidiary - (15)
-------- --------
(103) (117)
-------- --------
Net cash outflow before financing (99) (41)
Financing
Proceeds of ordinary share issue 180 -
Repayments on finance leases (5) (13)
-------- --------
Net cash inflow from financing 175 (13)
-------- --------
Increase / (decrease) in cash during
the year 3 76 (54)
-------- --------
NOTES TO CONSOLIDATED CASH FLOW STATEMENT
1. Reconciliation of operating (loss) to net cash outflow from operating
activities
2003 2002
#000 #000
Operating (loss) (24) (130)
Depreciation 76 88
Amortisation and impairment of goodwill 19 15
(Increase) / Decrease in stocks (14) 46
(Increase) / Decrease in debtors (135) 93
Increase in creditors 108 (89)
-------- --------
Net cash inflow from operating activities 30 23
-------- --------
2. Analysis of net funds
At 1 May Other non At 30 April
2002 Cash Flow cash changes 2003
#000 #000 #000 #000
Cash at bank and in hand 6 66 - 72
Bank overdraft (22) 10 - (12)
Net obligations under finance leases
And hire purchase agreements (35) 15 (10) (30)
-------- -------- -------- --------
(51) 91 (10) 30
-------- -------- -------- --------
3. Reconciliation of net cash flow to movement in net debt
2003 2002
#000 #000
Increase / (decrease) in cash in the period 76 (54)
Cash outflow from decrease in debt and lease financing 15 13
-------- --------
Change in net debt / funds resulting from cash flows 91 (41)
New finance lease and hire purchase obligations (10) (29)
-------- --------
Movement in net debt / funds in the period 81 (70)
Opening net funds (51) 19
-------- --------
Closing net debt / funds 30 (51)
-------- --------
4. Purchase of business undertaking
#000
Net assets acquired;
Fixed Assets 9
-------
9
Goodwill 94
--------
Satisfied by: Cash consideration 103
---------
FURTHER NOTES
For the year ended 30 April 2003
1. Earnings / (loss) per share
Loss per share for the year ended 30 April 2003 is calculated on the
consolidated loss on ordinary activities after tax of #33,000, divided by
11,095,023 this being the weighted average number of ordinary shares in issue
during the year. The earnings per share for the year ended 30th April 2002 is
calculated on the consolidated loss on ordinary activities after tax of #239,000
divided by 10,590,913 being the weighted average number of shares in issue
during the year as adjusted for the consolidation on the basis of ten Ordinary
0.5p shares for every Ordinary 5p share.
2. Accounting Policies
The preliminary results have been prepared on the basis of the accounting
policies as stated in the previous year's financial statements except that any
provision for deferred tax has been calculated under the provisions of FRS 19.
3. Financial Information
The financial information set out in the preliminary announcement does not
constitute the Company's statutory accounts for the year ended 30th April 2003
or 30th April 2002, but this is derived from those accounts. Statutory accounts
for the year ended 30th April 2002 have been delivered to the Registrar of
Companies and those for the year ended 30th April 2003 will be delivered
following the Company's annual general meeting. The auditors have reported on
those accounts; their reports were unqualified and did not contain statements
under S237 (2) or (3) Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FEAFLFSDSEIS
