Business
Preliminary Results
Preliminary Results.
About this update from Ceps Plc
[{"type":"text","content":"\n \nRNS Number : 3591F CEPS PLC 21 April 2011 \n \n\nCEPS PLC (\"CEPS\" OR THE \"COMPANY\")\n \nPRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS FOR\nYEAR ENDED 31 DECEMBER 2010\n \nCHAIRMAN'S STATEMENT (extract)\n \nReview of the year\n \nAs I suggested in my review at the half-year, 2010 has turned out to be the toughest year the Group has had to cope with. Consumer demand has remained very fragile throughout, with the prospects remaining subdued as a result of the Emergency Budget and the requirement to deal with the massive public spending deficit. As I have mentioned before, raw material input prices have accelerated, driven both by the deteriorating UK exchange rate and global price inflation. Just to round things off, the extremely cold weather at the end of the year adversely affected trading in December and at the start of 2011.\n \nAgainst this back drop the Group has produced a creditable result. Revenue across the Group was up 4% at £16.5m (2009: £15.9m) and close once more to the levels achieved in 2008. Continuing the theme of my half-year report, trading profit has fallen from £1.1m to £811,000 for the reasons outlined above. However, I am pleased to report that we have at least held, or slightly increased, our market share and in some instances developed new markets, both at home and internationally, during this difficult period.\n \nThe decision to consolidate Sunline's operations on one site has given rise to exceptional costs of £302,000. The impact of trading conditions and these one-off costs is to significantly reduce the Group's net operating profit, after Group costs, from £722,000 in 2009 to £165,000 in the current year.\n \nFinancial review\n \nThe strong cash generative nature of the Group's trading businesses has been clearly demonstrated this year. Segmental EBITDA before exceptional costs for the businesses is in excess of £1.0m and this has allowed the operating businesses to absorb the large increase in trading inventories of £424,000, the provision for exceptional charges at Sunline, £302,000, and Group costs of £344,000.\n \nInventories are considerably higher due to the expansion of Davies Odell's product range and also due to deliveries of stock just before the year-end, which have been subsequentl...