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[August 2000]
Royal Doulton - Interim Results
Highlights:
Sales down 3% to £88.0m Operating losses £11.2m compared with £8.7m last year Net exceptional credits of £11.0m Pre tax losses £1.3m compared with £14.4m last year Stocks and debtors reduced further in half year Gearing cut to 22%
Chairman, Hamish Grossart commented:
"The steep 20% decline in sales experienced in 1999 has now been arrested, with sales since the half year end in line with last year. Gross margin is beginning to improve and costs are starting to fall. There remains much work to do, but the second half should show further signs of progress towards recovery by 2002.
Results
In the half year, group sales totalled £88.0m, some 3% lower than the corresponding period of last year. Gross margin was slightly ahead of the corresponding period last year at 43.3%, the improvement achieved on new and core product being masked by a high level of clearance sales arising from a continuing focus on stock and product range reduction. Costs were higher overall, reflecting substantial excess costs associated with last year's distribution problems. Sales and marketing, and administration costs fell, and excess distribution costs have now been largely been eradicated.
Operating losses increased to £11.2m. Exceptional charges amounted to £1.5m, primarily redundancy costs arising from continuing reductions in the total workforce, more than offset by exceptional profits on disposals amounting to £12.5m. After these items, the loss before interest amounted to £0.2m. A reduced interest charge of £1.1m was incurred, and the loss before taxation was £1.3m, compared with £14.4m in the corresponding period last year.
ENDS