RNS Number:1266Y
Vista Group PLC
29 April 2004
FOR RELEASE 7.00AM 29 APRIL 2004
VISTA GROUP PLC
("Vista Group")
(Leading manufacturer of PVC door panels and composite doors)
AUDITED PRELIMINARY RESULTS FOR THE PERIOD FROM
8 JULY 2003 TO 1 JANUARY 2004
Pro forma highlights*
2003 2002
#'000 #'000 Change
Turnover 7,477 6,397 16.9%
EBITDA 1,260 1,001 25.9%
Profit before tax 1,068 820 30.2%
Pro forma Earnings per 4.8p 3.7p 29.7%
share
*The pro forma figures for the 12 months to 1 January 2004 are unaudited
Main Points
* Successful flotation on AIM on 19 December 2003
* Continuing capital investment programme
* Production capacity expanded
* Expected increase in demand for composite doors
Current Trading and Outlook
* Sales in first quarter 17.7% ahead of similar period last year
* Recent orders encouraging
* Confident of another excellent year
For further information:
Keith Sadler (Chief Executive) 07803 921 526 (Thursday 29 April 2004)
0151 608 1423 (thereafter)
Keith Salisbury (Non Executive Director) 07810 418 669 (Thursday 29 April 2004)
0161 831 1512 (thereafter)
Beattie Financial
Brian Coleman-Smith / Grace Marriner / 020 7398 3300
Jo Clewlow
FOR RELEASE 7.00AM 29 APRIL 2004
VISTA GROUP PLC
("Vista Group")
(Leading manufacturer of PVC door panels and composite doors)
AUDITED PRELIMINARY RESULTS FOR THE PERIOD FROM
8 JULY 2003 TO 1 JANUARY 2004
Chairman's Statement
Introduction
These are the first set of results since the shares were admitted to trading on
the Alternative Investment Market on 19 December 2003 and I would like to
welcome our new shareholders. The Board is committed to maintaining a good
relationship with investors and will be working hard to deliver the growth that
investors expect from the companies they invest in.
It is particularly pleasing to report on a year of strong growth which I believe
illustrates the strength of our management team and the commitment to producing
a market leading range of doors for the replacement, new build and social
housing markets.
CHANGE OF NAME AND PRINCIPAL ACTIVITY
Vista Group Plc was incorporated as Readymatch Limited on 8 July 2003 and
reregistered as a public limited company on 21 October 2003. On 13 November 2003
Readymatch plc acquired the entire issued share capital of Vista Panels Limited
from Home Doors (GB) Limited, a member of the BHD Group and, on 18 December
2003, the Group then changed its name to Vista Group Plc.
Results
As the restructured Group has only existed in its present form since 13 November
2003, the figures in the audited profit and loss account do not reflect the
performance of the Group as it is now structured. We are therefore also
publishing adjusted unaudited pro forma figures for the year ended 1 January
2004 in addition to the audited results for the period from 8 July 2003 to 1
January 2004.
The adjusted unaudited pro forma preliminary results for the year ended 1
January 2004 show that the profit before tax rose by 30.2% to #1.068 million
(2002: #820,000) on turnover that increased by 16.9% to #7.477 million (2002:
#6.397 million). Earnings per share, based on the total number of shares at the
time of flotation, increased by 29.7% to 4.8p (2002: 3.7p).
Capital Expenditure during the year amounted to #131,275 for Vista Panels
Limited with a further #250,000 budgeted for the current financial year.
The results for the period from 8 July 2003 to 1 January 2004 are included on
pages 6 to 8 of this announcement.
Dividend
At this stage in the development of Vista Group, we feel that that we should
focus our resources on continuing to invest in the business and the Directors
will not therefore be recommending a dividend. It is however our intention to
adopt a progressive dividend policy in due course.
The Market
The most recent research available for the Entrance Door Market in the UK is
produced by Palmer Market Research ("Palmer"). Inevitably the research, which
looks at the market in 2002, is out of date by the time it is published but it
does give an indication of the underlying strength of the markets in which we
operate. During 2002, the total entrance door market grew by 2% to 1.60 million
doors with the installed value increasing by 6.2% to #591 million.
Social Housing
The market for replacement entrance doors in social housing grew by 6.4% in 2002
to 221,000. Installed value increased by 10.8% to #78 million, 153,000 entrance
doors were installed in the local authority sector in 2002 and 68,000 in the
housing association sector. In Vista Group's core market, plastic composites
doors grew by 4.5% in 2002 to 75,000 with uPVC doors increasing by 10.5% to
54,000 doors.
The entrance door market for social housing is forecast to grow by 4% in 2003
followed by 6% in 2004, 4% in 2005, 2% in 2006 and static in 2007.
Home Improvement
The entrance door market in home improvements grew by 2.7% in 2002 to 1.10
million doors and installed value went up by 6.9% to #441 million. The direct
sell sector grew by 4% in volume terms and 4.5% by value. The builders' sector
grew by 1.6% in volume terms but 13% in value terms. This higher percentage was
due to a switch from cheaper wood to more expensive uPVC and composite doors. Of
the major door materials uPVC saw 7.8% growth to 581,000 but composites saw the
biggest growth in 2002 up 38% to 46,000 doors. It is forecast that between 2002
and 2005 that composite doors will show the strongest growth with the market
more than tripling in size between 2002 and 2005.
New Build
In 2002 there was a 5.3% increase in housing completions. However, the entrance
door market in new housing fell by 2.8% in 2002 to 288,000 the lowest level for
over 20 years. The main reason for the contradictory trends is the switch from
houses (which normally have two entrance doors) to flats (which normally only
have one door). In the private sector the decline was 2.0% to 256,000 but in the
social sector the number of doors increased by 8.6% to 32,000. Installed prices
rose 1.8% in 2002 to an average of #252 and this resulted in the installed value
of the market falling by only 1.1% to #72 million. Composite doors however saw
the strongest growth in 2002 increasing by 36% to 23,000 doors representing an
8% share.
Operating Review
2003 proved to be another excellent year as we continued to benefit from the
substantial investment that had previously been made on improving the efficiency
of our production facilities. During the year, we produced approximately 77,000
door panels compared with 71,000 in 2002. Gross margins increased to 35.8% from
34.4% reflecting the benefits of the continuing capital investment programme and
our move into higher margin products.
During the last financial year, we ordered new machinery which was delivered
this month and will enable us to manufacture a panel per minute. We have also
purchased three compacting machines which enables us to reduce the cost of
removing waste from our business by recycling all paper, plastic and polythene.
Since the year end, we have ordered 2 new Diamond bead glue machines and 6
pneumatic presses, which will reduce glue waste and increase the quality of the
door panels. This should result in a further improvement in the gross margin.
New product development is key to our continuing success and we have developed
four euro-sized doors for the export market and we are currently developing a
range of inverted moulded door panels for the UK market.
With composite doors offering increased durability, a higher level of security,
and lower maintenance costs, we believe that our customers will be increasingly
looking to order such products and we have invested in our production facilities
to ensure that we are able to meet the expected increase in demand.
Staff
These results could not have been achieved without the loyalty and the
commitment of the people who work for Vista Group and, on behalf of the
Directors and our shareholders, I would like to thank them for their
contribution to our ongoing success.
Current Trading and Outlook
We have had a good start to the year with sales in the first quarter some 17.7%
ahead of the similar period last year.
Significant orders have been secured recently including a partnership agreement
signed with the Demontford Housing Society in Leicestershire, pilot schemes from
Macclesfield MBC, Airsham Industries and St Albans District Council. Overseas we
are looking for a substantial increase in orders from Hungary.
With over 400 customers, enquiries at a high level and an advanced range of
products, I am confident that we can look forward to another excellent year.
Gavin Johnson
Chairman
29 April 2004
VISTA GROUP PLC
UNAUDITED PRO FORMA PROFIT AND LOSS ACCOUNT
12 MONTHS ENDED 1 JANUARY 2004
2003 2002
#'000 #'000
Turnover 7,477 6,397
Cost of sales (4,803) (4,199)
----------- -----------
Gross profit 2,674 2,198
Gross margin 35.8% 34.4%
Distribution costs (343) (285)
Administrative costs excluding depreciation and (1,071) (912)
amortisation
----------- -----------
EBITDA 1,260 1,001
Depreciation (205) (217)
----------- -----------
Operating profit after before exceptional costs 1,055 784
Net interest 13 36
----------- -----------
Profit before tax 1,068 820
Tax charge (325) (248)
----------- -----------
Profit after tax 743 572
=========== ===========
Number of shares in issue at 1 January 2004 in
Vista Group plc 15,382,116 15,382,116
=========== ===========
Pro forma Earnings per share 4.8p 3.7p
=========== ===========
The pro-forma figures are based upon the accounts of Vista Panels Limited as
adjusted for certain exceptional expenditure relating to the directors'
emoluments which are not expected to reoccur. The following assumptions have
been applied:
1. The net interest is that incurred in the accounts of Vista Panels
Limited only and does not include the interest incurred by Vista Group Plc
on the #2.3 million loan used to part fund the acquisition of the shares in
Vista Panels Limited.
2. The tax charge is calculated using an average rate established by
reference to the tax charge on profits for the period in Vista Panels
Limited accounts.This percentage has then been applied to the pro forma
profit before tax.
3. The proforma profit and loss accounts also excludes the
amortisation of goodwill on consolidation.
4. The number of shares used in the calculation of the EPS are those
in issue at the period end of Vista Group plc.
VISTA GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
PERIOD FROM 8 JULY 2003 TO 1 JANUARY 2004
# #
2003 2003
Turnover
Continuing operations -
Acquisitions 864,309
---------
864,309
Cost of sales (583,823)
----------
Gross Profit 280,486
Distribution costs (40,860)
Administrative expenses (215,545)
----------
Operating Profit
Continuing operations (15,200)
Discontinued operations 39,281
---------
Profit on ordinary activities before
interest and taxation 24,081
Interest receivable and similar income 2,605
Interest payable and similar charges (18,124)
----------
Profit on ordinary activities before
taxation 8,562
Taxation on profit on ordinary activities (7,109)
----------
Profit for the financial period 1,453
==========
Earnings per share 0.02 pence
==========
The Group has no recognised gains or losses other than the profit for the
current financial period.
Accordingly a separate Statement of Total Recognised Gains and Losses has not
been prepared.
All of the group's activities have arisen on acquisition in the period.
VISTA GROUP PLC
CONSOLIDATED BALANCE SHEET
AT 1 JANUARY 2004
1 January 2004
#
Fixed Assets
Intangible assets 2,194,804
Tangible assets 533,748
------------
2,728,552
Current Assets
Stocks 507,208
Debtors 1,398,419
Cash at bank and in hand 151,337
------------
2,056,964
Creditors - Amounts Falling Due
Within One Year (2,054,594)
------------
Net current assets 2,370
------------
Total assets less current liabilities 2,730,922
Creditors - Amounts Falling Due
After More Than One Year (1,756,971)
------------
Net Assets 973,951
============
Capital and reserves
Called up share capital 76,911
Share premium 895,587
Profit and loss account 1,453
------------
Equity Shareholders' funds 973,951
============
VISTA GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
PERIOD FROM 8 JULY 2003 TO 1 JANUARY 2004
Note 2003
#
Net Cash Flows From Operating Activities (48,910)
Returns on Investments and Servicing of Finance (10,079)
Taxation -
Capital Expenditure and Financial Investment (24,501)
Acquisitions (3,391,751)
-------------
Cash Outflow Before Use of Liquid Resources and
Financing (3,475,241)
Financing 3,626,578
-------------
Increase in Cash in the period (151,337)
=============
Reconciliation of Net Cash Flow to Movement in Net
Debt (Note 24)
2003
#
Increase in cash in the period 151,337
Cash inflow from new bank loans (2,300,000)
Cash outflow in respect of hire purchase 1,442
Repayment of term loans 27,478
-------------
(2,119,743)
Non cash movements (40,135)
--------------
Net debt at 1 January 2004 (2,159,878)
==============
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD FROM 8 JULY 2003 TO 1 JANUARY 2004
1. The preliminary results do not constitute full statutory accounts within the
meaning of Section 240 of the Companies Act 1985.
2. The preliminary results for the period from 8 July 2003 to 1 January 2004
have been prepared in accordance with applicable Accounting Standards and on
the basis of the accounting policies, which have remained unchanged, as set
out in the Admission Document dated 24 November 2003.
3. A copy of the Annual Report and Accounts for the period ended 1 January 2004
will be sent to shareholders and copies will be available from the Company's
Registered Office at Unit H1, Prenton Way, North Cheshire Trading Estate,
Wirral, Merseyside, CH43 3DU.
4. The annual general meeting is to be held at Zeus Capital, 3 Ralli Courts,
West Riverside, Manchester, M3 5FT on 26th May at 9.00am.
This information is provided by RNS
The company news service from the London Stock Exchange
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