Clinton Cards PLC
16 April 2003
Embargoed until 0700 16 April 2003
CLINTON CARDS PLC
('Clinton' or 'the Company')
PRELIMINARY RESULTS
for the 53 weeks ended 2 February 2003
HIGHLIGHTS
2003 2002 % increase
Turnover (including VAT) £368.8m £339.4m + 8.7%
Profit before tax £24.88m £19.65m + 26.6%
Basic earnings per share 23.36p 19.48p + 19.9%
Final dividend per share 6.75p 5.40p + 25.0%
Total dividend per share 8.36p 6.74p + 24.0%
Summary
* 27 stores opened during year, including first in the
Republic of Ireland, bringing total to 699
* 9.3% increase in total trading space to 1.18 million
square feet (2002: 1.08 million sq ft)
* Like for like sales increased by 4.2%
* 11 larger format stores operating from over 5,000 square
feet
Outlook
* With the benefit of Easter business to come, like for like
sales have increased by 3.9% (2002: 5.5%) in the 10 weeks since
the period end.
* A further 12 larger format stores to open in 2003/04.
Don Lewin, Chairman of Clinton Cards PLC commented:
'Over many years we have established a very strong brand on the
High Street and the Board is confident about its long term
growth strategy. I look forward to reporting further progress
for the Group in the current financial year and beyond.'
- ends -
Enquiries:
Clinton Cards PLC (16.04.03) 020 7067 0700
Don Lewin, OBE, Chairman (thereafter) 020 8502 3711
Clinton Lewin, Managing Director
Barry Hartog, Finance Director
Weber Shandwick Square Mile 020 7067 0732
Chris Lynch / Becky Haywood
CLINTON CARDS PLC
('Clinton' or 'the Company')
PRELIMINARY RESULTS FOR THE 53 WEEKS ENDED 2 FEBRUARY 2003
CHAIRMAN'S STATEMENT
Financial Results
I am delighted to be able to report a further year of excellent
progress for the Company. Sales (including value added tax)
for the 53 weeks to 2 February 2003 increased by 8.7% to £368.8
million (2002: £339.4 million). Like for like sales increased
by 4.2% (2002: 6.0%).
Profit before tax increased 26.6% to £24.88 million, compared
to £19.65 million in 2002. Profit before tax and the
amortisation of goodwill rose by 24.9% to £26.23 million (2002:
£21.00 million).
Net interest charged in the period of £167,000 compared to
£687,000 in 2002, was an improvement of £520,000. Improved
cash flow and better stock management, together with lower
interest rates, have contributed to this significant reduction.
Basic earnings per share increased by 19.9% to 23.36 pence
(2002: 19.48 pence). Earnings per share before the
amortisation of goodwill increased by 18.1% to 25.31 pence
(2002: 21.43 pence).
Operating cash flow was £8.7 million for the period compared
with £38.1 million in 2002. This reduction is mainly due to
the timing of the payment of creditors, paid just prior to the
year end, amounting to £27.6 million. This is reflected in a
lower cash balance at the period end of £10.2 million (2002:
£33.7 million) and a corresponding reduction in creditors to
£52.9 million (2002: £78.1 million).
Dividend
The Board is recommending a final dividend of 6.75 pence per
share (2002: 5.40 pence), an increase of 25.0%. Together with
the interim dividend already paid of 1.61 pence (2002: 1.34
pence), the total dividend for the year is 8.36 pence (2002:
6.74 pence), an increase of 24.0%. The dividend is covered 2.8
times by basic earnings.
Subject to shareholder approval, the final dividend is payable
on 3 June 2003 to all shareholders on the register at the close
of business on 9 May 2003.
Development
At the year end, we traded from 699 stores, an increase of 27
stores in the year. Our first store in the Republic of Ireland
opened in Cork in January 2003 and a second store is due to
open in April in Dublin. Total trading space is now 1.18
million square feet compared to 1.08 million square feet at the
beginning of the period, an increase of 9.3%.
In accordance with our strategy outlined in the 2002
preliminary results statement, we are now operating 11 larger
format stores of over 5,000 square feet of trading space and
plan to open a further 12 of these stores in 2003/04.
Total investment in our store portfolio for the financial
period was £14.6 million of which £9.6 million was spent on
new stores and £5.0 million on refurbishment of existing
stores, including 34 modernisations and nine extensions.
We continued operating concessions within Debenhams department
stores and throughout the year we were operating an average of
40 concessions selling everyday cards. During the Christmas
period we traded from 100 Clinton Cards concessions within
Debenhams stores selling Christmas cards and gift dressing.
Our partnership with Debenhams has worked well and we look
forward to repeating its success in the coming year.
35 Calendar Experience sites were operated in Christmas 2001 as
we trialled the concept of these temporary stand-alone stores
selling calendars. In my previous statements I outlined our
plans to extend the concept and we built up a total of 93
temporary Calendar Experience sites for Christmas 2002.
However, notwithstanding that our eventual achievement fell
short of expectations, we will still endeavour to acquire
temporary sites for next Christmas.
The amount of business transacted through our website continues
to grow and the range of products is becoming quite
comprehensive, from personalised greetings cards and gifts to
wedding stationery and personalised Christmas cards. Other
products have been introduced by working in partnership with
suppliers able to fulfil particular requests from customers for
personalised items.
Head Office Building
The business is administered from two adjacent buildings on
freehold land owned by the Group. The Group took the
opportunity which arose last Autumn to purchase some additional
freehold land adjacent to its existing property. The purchase
included three buildings, two of which are being refurbished
and the third is being used for warehousing. The cost and
associated expenses of purchasing this freehold land and
renovating the buildings was £2.8 million. This additional
office space will ensure that our growing business continues to
have the necessary central support.
Current trading and prospects
The first 10 weeks of the new financial year have started well.
With the benefit of Easter business still to come, like for
like sales have increased by 3.9% (2002: 5.5%) in the 614
comparable stores. Like for like sales have been measured
based on same stores trading in both periods and exclude any
store which has been extended or was closed for any
refurbishment during the comparable period.
I would like to take this opportunity, on behalf of the Board,
to thank our many loyal and hardworking staff for their efforts
and commitment. They have made a considerable contribution to
the success of the Group.
Over many years we have established a very strong brand on the
High Street and the Board is confident about its long term
growth strategy. I look forward to reporting further progress
for the Group in the current financial year and beyond.
Don Lewin, OBE
Chairman
16 April 2003
Profit and Loss Account for the 53 weeks ended 2 February 2003
2003 2002
Notes £'000 £'000
-----------------------------------------------------------------
Turnover (including VAT) 368,833 339,429
VAT (54,436) (50,178)
______ ______
Turnover (excluding VAT) 314,397 289,251
Cost of sales (279,207) (259,078)
______ ______
Gross profit 35,190 30,173
Administrative expenses
Loss on sale of operating
fixed assets (1,056) (1,588)
Amortisation of goodwill (1,344) (1,344)
Other (8,034) (7,202)
(10,434) (10,134)
Other operating income 295 300
______ ______
Operating profit 25,051 20,339
Interest receivable 425 224
Interest payable (487) (768)
Property provision discount (105) (143)
______ ______
Profit on ordinary activities
before taxation 24,884 19,652
Tax on profit on ordinary activities (8,792) (6,253)
______ ______
Profit on ordinary activities
after taxation 16,092 13,399
Dividends (5,763) (4,638)
______ _____
Transfer to reserves 10,329 8,761
======= =======
Earnings per share: 3
Basic earnings 23.36p 19.48p
Diluted earnings 23.33p 19.46p
Basic earnings before amortisation
of goodwill 25.31p 21.43p
======= =======
The Group has no recognised gains or losses other than the
profit for the year disclosed in the profit and loss account.
All the results above arose from continuing operations
Balance Sheet as at 2 February 2003
The Group
Notes 2003 2002
£'000 £'000
--------------------------------------------------------------------
Fixed assets
Intangible assets 21,123 22,467
Tangible assets 61,791 54,423
______ ______
82,914 76,890
______ ______
Current assets
Stocks 33,979 34,559
Debtors 13,169 10,969
Cash at bank and in hand 10,204 33,704
______ ______
57,352 79,232
Current liabilities
Creditors: due within one year (52,906) (78,096)
______ ______
Net current assets 4,446 1,136
______ ______
Total assets less current liabilities 87,360 78,026
Creditors: due after one year (1,622) (2,878)
Provisions for liabilities and charges (5,852) (5,696)
______ ______
Net assets 79,886 69,452
======== ========
Capital and reserves
Called up share capital 6,891 6,882
Share premium account 15,524 15,428
Merger reserve 3,932 3,932
Profit and loss account 53,539 43,210
______ ______
Equity shareholders' funds 79,886 69,452
======== ========
Consolidated Cash Flow statement for the 53 weeks ended 2 February 2003
2003 2002
Notes £'000 £'000 £'000 £'000
--------------------------------------------------------------------------
Net cash inflow from
operating activities 1 8,692 38,118
Returns on investments and
servicing of finance
Interest received 487 256
Interest paid (373) (736)
Finance lease interest paid (91) (38)
_______ _______
Net cash inflow/(outflow) from
returns on investments
and servicing of finance 23 (518)
Taxation
Corporation tax paid (7,971) (5,165)
Capital Expenditure
Payments to acquire tangible
fixed assets (18,147) (12,388)
Receipts for disposal of
tangible fixed assets 2 504
_______ _______
Net cash outflow for
capital expenditure (18,145) (11,884)
Equity dividends paid (4,827) (4,086)
_______ _______
Net cash (outflow)/inflow
before financing (22,228) 16,465
Financing
Issue of shares in respect
of options 105 32
Capital element of finance
lease payments (1,377) (410)
______ _______
Net cash outflow from financing (1,272) (378)
_______ _______
(Decrease)/increase in cash 2 (23,500) 16,087
======== ========
Notes to the financial statements
1. Reconciliation of operating profit to net cash inflow from
operating activities
2003 2002
£'000 £'000
Operating profit 25,051 20,339
Amortisation of goodwill 1,344 1,344
Depreciation charges 10,415 7,412
Movement on provisions 112 (60)
Loss on sale of tangible
fixed assets 1,056 1,588
Decrease in stock 580 6,247
(Increase)/decrease in debtors (2,261) 8
(Decrease)/increase in creditors (27,605) 1,240
______ _______
Net cash inflow from operating
activities 8,692 38,118
======= =======
2. Analysis of changes in net cash
27 January 2 February
2002 Cash flow 2003
£'000 £'000 £'000
Cash 33,704 (23,500) 10,204
Finance leases (2,370) 1,377 (993)
______ ______ ______
Net cash 31,334 (22,123) 9,211
======= ======= =======
3. Earnings per share
The basic earnings per share is calculated by dividing the
profit after taxation by the weighted average number of
shares in issue during the period. For diluted earnings
per share the weighted average number of ordinary shares
is increased to assume conversion of all dilutive
potential ordinary shares. These comprise share options
granted to employees and directors where the exercise
price is less than the average market price of the
company's ordinary shares during the year. Basic earnings
per share before amortisation of goodwill is calculated
using the basic earnings figure above excluding the charge
for amortisation of goodwill. This supplemental earnings
per share has been provided in order that the effects of
goodwill amortisation on reported earnings can be fully
appreciated.
2003 2002
Weighted Weighted
average average
number Earnings number Earnings
Earnings of shares per share Earnings of share per share
£'000 '000 pence £'000 '000 pence
Basic earnings
per share 16,092 68,877 23.36 13,399 68,791 19.48
Dilutive shares
- options - 89 (0.03) - 67 (0.02)
______ ______ _____ ______ ______ _____
Diluted basic
earnings per
share 16,092 68,966 23.33 13,399 68,858 19.46
====== ====== ====== ====== ====== ======
Basic earnings
per share 16,092 68,877 23.36 13,399 68,791 19.48
Amortisation of
goodwill 1,344 - 1.95 1,344 - 1.95
______ ______ _____ ______ ______ _____
Basic earnings
before goodwill 17,436 68,877 25.31 14,743 68,791 21.43
====== ====== ====== ====== ====== ======
4. The above accounts for the 53 weeks ended 2 February 2003
are unaudited. The comparative figures for 2002 are
extracted from last year's audited accounts which received
an unqualified report from the group's auditors and have
been lodged with the Registrar of Companies.
5. The Report and Accounts will be posted at the end of April
and the Annual General Meeting will be held on 29 May 2003
at The Crystal Building, Langston Road, Loughton, Essex.
Copies will also be available on request and on the
Clinton Cards website.
This information is provided by RNS
The company news service from the London Stock Exchange
