4imprint Group plc Announces Preliminary Results for the Full Year Ended 30 December 2000.Business Editors OSHKOSH Oshkosh (ŏsh`kŏsh'), city (1990 pop. 55,006), seat of Winnebago co., E Wis., on Lake Winnebago where the Upper Fox River enters; inc. 1846. , Wis adv. 1. Certainly; really; indeed. v. t. 1. To think; to suppose; to imagine; - used chiefly in the first person sing. present tense, I wis. See the Note under Ywis. .--(BUSINESS WIRE)--April 4, 2001 4imprint im·print tr.v. im·print·ed, im·print·ing, im·prints 1. To produce (a mark or pattern) on a surface by pressure. 2. To produce a mark on (a surface) by pressure. 3. Group plc (`4imprint'), the leading global distributor of imprinted im·print tr.v. im·print·ed, im·print·ing, im·prints 1. To produce (a mark or pattern) on a surface by pressure. 2. To produce a mark on (a surface) by pressure. 3. promotional products, today announces Preliminary results for the full year ended 30 December December: see month. 2000. Commenting on today's announcement Rodger Rodger is a surname, and may refer to:
" The year 2000 has been a landmark in the development of the Group. Following a detailed review, the specialist printing businesses were sold and our activities concentrated on our newer operations, and the name of the Group was changed to 4imprint Group plc to better reflect this."
Key Points:
- Due to the disposal of all print based activities, which in 1999
accounted for 60% of turnover and 70% of operating profit, the
headline turnover and profit numbers in 2000 are down, in line
with expectations.
- Turnover(pound)116.7m (1999(pound)180.3m)
- Promotional Marketing (Continuing Business),(pound)88.0m
(1999(pound)71.9m)
- Discontinued Business,(pound)28.7m (1999(pound)108.4m)
- Operating Profit(pound)93,000 (1999(pound)11.86m)
- Promotional Marketing,(pound)3.8m (1999(pound)3.5m)
- Discontinued Business, loss of(pound)3.7m (1999(pound)8.3m)
- Acquisition of Adventures in Advertising (AIA) for $12.8 million
opens up $15 billion market in the US for order/sales processing
technology.
- The corporate sales agreement with Lands' End has generated
programmes with General Motor's Saturn division, the American
International Automobile Dealers Association and its 7,000 members
and a franchise agreement with Fortune Magazine's rated companies.
- New client wins included AMEC, BAE Systems, NTL, Nortel and
Unisys.
Rodger Booth continued: " The major changes announced earlier in the year are complete. The business is now clearly focussed and backed by excellent technical and commercial skills. Current trading is on plan and we have substantial financial resources to invest in the development of both our existing operations and new opportunities." Chairman's Statement The year 2000 has been a landmark in the development of the Group. Following a detailed review the Board concluded that there were insufficient long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth prospects for the printing businesses, which had been the core of the Group for more than 100 years. These were therefore sold, and our activities concentrated on our newer operations involved in the sale and distribution of imprinted promotional products on an international basis. When the disposals were complete I moved to my present role as non-executive non-executive adj non-executive director → direttore m senza potere esecutivo chairman, and Dick Nelson was appointed CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . The name of the Group was changed to 4imprint Group PLC to better reflect our new activities. In his report and the pages that follow Dick describes our ongoing business in more detail, and reports on the very significant progress, which has been made during the year in these operations. I am also pleased to report the appointment of Mike Potter Mike Potter is a NASCAR veteran. He was born on July 4, 1949 and currently resides in Johnson City, Tennessee. Over the course of his Nextel Cup career, Potter raced 60 races. Every season he raced was part-time. as a non-executive director A non-executive director (NED, also NXD) or outside director is a member of the board of directors of a company who does not form part of the executive management team. He or she is not an employee of the company or affiliated with it in any other way. of the Group. Mike is founder and CEO of Redwood redwood: see sequoia; brazilwood. redwood or sequoia Coniferous evergreen timber tree (Sequoia sempervirens) of the family Taxodiaceae, found in the fog belt of west-coastal North America. , whose main activities are the publication of consumer magazines and the provision of marketing services. Chief Executive's Review Review of 2000 Results Operations Another giant step in the transformation of our Group took place this year with the disposal of our Specialist Print Services operations based in Hull and Derby, England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. , our Lett's Diary business in Dalkeith This article is about the town in Scotland. For other places named Dalkeith, see Dalkeith (disambiguation). Dalkeith (Scottish Gaelic: Dail Cheith) is a town in Midlothian, Scotland, lying on the River North Esk. , Scotland Scotland, political division of Great Britain (1991 pop. 4,957,000), 30,414 sq mi (78,772 sq km), comprising the northern portion of the island of Great Britain and many surrounding islands. , and our SKM SKM Sinclair Knight Merz Pty Ltd. SKM Szybka Kolej Miejska (Warsaw, Poland railway) SKM Singapore Kindness Movement SKM Sigaret Kretek Mesin (Indonesian: Machine-Rolled Cigarettes) operation in Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). , US, each to their respective management teams. The loss on the disposal of these subsidiaries was (pound)44.5 million, after writing back goodwill of (pound)31,590,000 and raised cash of approximately (pound)35million. The continuing promotional products business experienced excellent turnover growth in the UK, the US and Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , up a total of 22.4%, while operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. were up 8% on prior year despite an additional media spend of (pound)1.5+ million. The media spend in the UK was in conjunction with the launch of the new 4imprint brand, unifying four separate corporate identities into one while in the US, the Group aggressively promoted its web site in the face of intense, new competition which has subsequently subsided. We also experienced a positive turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. at PPI (1) (Pixels Per Inch) The measurement of the resolution of a monitor or scanner. For example, a monitor that is 16 inches wide and displays 1600 pixels across its width would have a resolution of 100 ppi (1600 divided by 16). to a profit from an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. the prior year. Additionally, significant consolidation of the continuing UK operations has been in process throughout the year, positioning the Group to operate more efficiently in the future. This includes: - Integration of the former Broadway and Bourne Publicity sales forces into one and the creation of a single 4imprint catalogue - Consolidation of the Bourne trade print operation into Product Source in Manchester - Combining the corporate programme fulfillment centers at Broadway and Bourne into one facility in Whitefield - Closing the HQ office in Beverley and relocating it to Whitefield Reorganisation Noun 1. reorganisation - the imposition of a new organization; organizing differently (often involving extensive and drastic changes); "a committee was appointed to oversee the reorganization of the curriculum"; "top officials were forced out in the cabinet costs of (pound)1.4 million are included in the Exceptional items charge of (pound)45.884 million. The Group Company balance sheet is strong with (pound)20 million of net cash. Dividend In light of the fundamental restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the Group the Board have also reviewed the dividend policy. The growth characteristics and cash requirements of the Group going forward are significantly different from when it was dominated by the printing companies. Accordingly, the Board will implement a new dividend policy based A decision made by any software application that is based on the policy (rules and regulations) of the organization. See policy and COPS. on a payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. covered approximately 3x by earnings. This will be introduced in the coming year beginning with the 2001 interim dividend (payable November November: see month. 2001). Notwithstanding this new dividend policy, the Board is proposing a final dividend for 2000 of 12.2p (payable May 2001) making a total of 18.65p for the year. Corporate Programmes In the UK, the Group continues to build on its industry leading position in corporate programmes with a number of new account wins against no losses. These new programmes include BAE Systems BAE Systems British manufacturer of aircraft, missiles, avionics, naval vessels, and other aerospace and defense products. BAE Systems was formed (1999) from the merger of British Aerospace (BAe) with Marconi Electronic Systems. , NTL NTL Nevertheless NTL National Transportation Library NTL Norsk Tjenestemannslag NTL National Training Laboratories NTL Never Too Late NTL Nothing to Lose NTL National Training Laboratory NTL None the Less NTL Number Theory Library , AMEC AMEC African Methodist Episcopal Church AMEC Agent Mediated Electronic Commerce AMEC Arctic Military Environmental Cooperation AMEC Advanced Micro-Fabrication Equipment Inc AMEC Association of Media Evaluation Companies , Airproducts, Unisys, Exel Exel plc is a British based logistics company. Its headquarters are in Bracknell to the west of London. It operates in over a hundred countries. Turnover for the year to 31 December 2004 was £6.239 billion. , Worldspan Worldspan is a technology company with headquarters in Atlanta, Georgia that specializes in travel related software and systems. Its primary system is commonly known as a computer reservations system or Global Distribution System (GDS), which is a software used by travel agents and and Nortel See Nortel Networks. . In July July: see month. the Group entered into an agreement with the corporate sales division of Lands' End
v. em·broi·dered, em·broi·der·ing, em·broi·ders v.tr. 1. To ornament with needlework: embroider a pillow cover. 2. apparel segment in the US. To date we have participated with them in programmes for General Motors' Saturn Saturn, in astronomy Saturn, in astronomy, 6th planet from the sun. Astronomical and Physical Characteristics of Saturn Saturn's orbit lies between those of Jupiter and Uranus; its mean distance from the sun is c.886 million mi (1. division and the American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of International Automobile Dealers Association and its 7,000 members. Contracts of this nature take time to develop but nevertheless discussions are underway to explore ways to move forward more quickly. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , we continue to make good progress in the US with other corporate programmes and have achieved contracts with Kinko's, Crawford Company, AMEC (UK and US), and Kaytee and are making further inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ in our relationship with the Kohler Company The Kohler Company is a manufacturing company in Kohler, Wisconsin best known for its plumbing products. Kohler also manufactures furniture, cabinetry, tile, engines, and generators. . Direct Marketing Catalogue sales grew 11% and on-line ordering activity was up substantially. We continue to have the most robust web site in our industry now featuring over 3,000 products that can be ordered online in the US, accounting for 17-20% of our intake on a weekly basis compared to 3% this time last year. We launched our fully transactional UK web site mid-year and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the order volume is increasing strongly here as well. We have added a number of significant enhancements to our corporate programme web offering as well which include real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. viewing of inventory levels so clients can actually "see what's on What's On (Traditional Chinese: 熒幕八爪娛) is a weekly half-hour TV series that airs on Fairchild Television. Format Originally started in 1996, the show is currently the longest-running program in Fairchild Television history. the shelf" and automatic order and package tracking. As more of our corporate programme clients continue to migrate to the Internet, our processing costs continue to decrease. Significant Acquisition Taps Into $10 Billion+ Market Segment We have long looked for a way to leverage our technological and order processing leadership into the largest segment of the US promotional products industry, that is the two-thirds of the $15 billion market that is served by salespeople sales·peo·ple pl.n. Persons who are employed to sell merchandise in a store or in a designated territory. calling face-to-face (jargon, chat) face-to-face - (F2F, IRL) Used to describe personal interaction in real life as opposed to via some digital or electronic communications medium. on end user buyers. To gain access to this part of the market, the Group acquired Adventures in Advertising Franchise, Inc. (AIA AIA - Application Integration Architecture ) for $12.75 million plus debt effective 30 December 2000 from founder Dan Carlson
Critical to sustaining their very rapid growth was the need to acquire the processing technology to support their business on a larger scale. Additionally, capital to fund the growth was also needed. Consequently, this near-perfect match between their needs and our resources culminated in our acquisition of AIA. Unlike traditional distributor operations in the industry, AIA does not employ its own sales force. Each of its 400+ franchise owners is just that, an independent business owner. Each pays his/her own expenses. The main benefits they receive from being a franchise owner are training, access to group buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. (which is now significantly enhanced as a result of the acquisition) and, since AIA handles all billings and payments to vendors for the franchise owners, the owners have the freedom to spend more time with customers and make more sales because AIA is taking care of the "back office chores". Acquisition will spur Corporate Programmes and Premium Divisions As a result of some operating constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. on the business, AIA was able to offer very limited corporate programme support to its franchise owners. These services will now be significantly enhanced and fully supported from our distribution facility in Oshkosh. Additionally, the Group's extensive 20-year experience in providing large quantity import orders through our PPI division and their Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. office will be a valued resource for the franchise owners and their salespeople. An AIA version of OASIS, our bespoke be·spoke v. Past tense and a past participle of bespeak. adj. 1. Custom-made. Said especially of clothes. 2. Making or selling custom-made clothes: a bespoke tailor. enterprise operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. , will be installed throughout the franchise network as soon as practically possible. Also, Dan and Kurt Carlson will remain with the Group on long-term contracts. Outlook Our UK companies have made a good start to the year and future prospects are solid. We would be remiss re·miss adj. 1. Lax in attending to duty; negligent. 2. Exhibiting carelessness or slackness. See Synonyms at negligent. not to view the current economic situation in the US with caution but note that in previous recessionary periods the Group has been able to achieve market share gains. Our on-line ordering activity continues to accelerate and with our 100,000+ catalogue customer base we are well diversified diversified (di·verˑ·s across all industries. Good progress is being made on the integration of AIA into the 4imprint enterprise operating system. Billings by AIA on behalf of their franchisees are up more than 40% on 2000, in line with expectations at the time of acquisitions.
4imprint Group plc
GROUP CONSOLIDATED PROFIT & LOSS ACCOUNT
Full Year Ended 30 December 2000
Continuing Discontinued Exceptional 2000 1999
operations operations items Unaudited Audited
---------- ---------- ---------- ---------- ----------
(pound) (pound) (pound) (pound) (pound)
'000 '000 '000 '000 '000
Turnover 88,032 28,646 - 116,678 180,295
Change in
stocks of
finished goods
and work in
progress 1,646 5,986 - 7,632 638
------------------------------------------- ----------
89,678 34,632 - 124,310 180,933
Operating
expenses
excluding
amortisation (85,589) (38,351) - (123,940) (168,820)
------------------------------------------- ----------
Operating profit
before
amortisation 4,089 (3,719) - 370 12,113
Goodwill
amortisation (277) - - (277) (250)
------------------------------------------- ----------
Operating
profit/(loss) 3,812 (3,719) - 93 11,863
Exceptional
items - - (45,884) (45,884) 1,600
Net interest
receivable/
(payable) 704 - - 704 (803)
------------------------------------------- ----------
Profit/(loss)
on ordinary
activities
before tax 4,516 (3,719) (45,884) (45,087) 12,660
Tax on (loss)/
profit on
ordinary
activities (275) (3,842)
---------- ----------
(Loss)/profit
for the
financial year (45,362) 8,818
Dividends (5,350) (48,252)
---------- ----------
Transfer from
reserves (50,712) (39,434)
========== ==========
Loss per ordinary share
Basic (160.84)p 26.28p
Diluted (160.83)p 26.21p
These financial statements should be read in conjunction with the
notes attached
4imprint Group plc
GROUP CONSOLIDATED BALANCE SHEET
At 30 December 2000
2000 1999
Unaudited Audited
--------------------- ---------------------
(pound) (pound) (pound) (pound)
'000 '000 '000 '000
Fixed assets
Goodwill 17,325 5,447
Tangible 4,742 27,401
Investments 76 483
---------- ----------
22,143 33,331
Current assets
Stocks 5,732 13,134
Debtors 46,640 54,181
Cash 28,110 3,208
---------- ----------
80,482 70,523
Current liabilities
Loans & overdrafts 8,106 3,595
Trade creditors 15,101 19,024
Corporation tax 4,947 4,809
Finance leases 7 213
Other creditors 17,690 14,398
Dividends 3,501 3,427
(49,352) (45,466)
---------- ----------
Net current assets 31,130 25,057
Pension cost prepayments - 11,631
---------- ----------
Total assets less current
liabilities 53,273 70,019
Creditors due after more
than one year
Other 5,221 35
Finance leases - 4
---------- ----------
(5,221) (39)
Provisions for liabilities
and charges (2,207) (6,158)
---------- ----------
NET ASSETS 45,845 63,822
========== ==========
Capital and reserves
Ordinary share capital 11,044 10,834
Preference share capital - 208
Share premium 37,630 36,113
Capital redemption reserve 208 -
Revaluation reserve 49 4,288
Profit & loss account (3,086) 12,379
---------- ----------
SHAREHOLDERS' FUNDS 45,845 63,822
========== ==========
NET CASH/(DEBT) 19,997 (604)
========== ==========
GEARING N/A 1%
========== ==========
4imprint Group plc
RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
Full Year Ended 30 December 2000
2000 1999
Unaudited Audited
(pound) (pound)
'000 '000
Profit for the financial year (45,362) 8,818
Dividends (5,350) (48,252)
---------- ----------
(50,712) (39,434)
Other recognised gains and losses relating to
the period (374) (246)
Surplus on revaluation - 536
Shares issued in the period 1,727 1,499
Redemption of preference share capital (208) -
Goodwill reinstated on disposal of subsidiaries 31,590 42,554
Goodwill adjustment relating to previous
acquisitions - (47)
---------- ----------
Net movement in shareholders' funds (17,977) 4,862
Opening shareholders' funds 63,822 58,960
---------- ----------
Closing shareholders' funds 45,845 63,822
========== ==========
4imprint Group plc
CONSOLIDATED SUMMARISED CASHFLOW STATEMENT
Full Year Ended 30 December 2000
2000 1999
Unaudited Audited
---------- ----------
(pound) (pound)
'000 '000
Cashflow from operating activities
Operating profit and other non cash movements 3,799 17,896
Exceptional reorganisation costs paid (1,256) -
Movement in stocks (6,350) (1,699)
Movement in debtors 11,617 3,074
Movement in creditors (7,230) (2,477)
Expenditure against provisions (397) (16)
---------- ----------
Net cash inflow from operating activities 183 16,778
Returns on investments and servicing of finance 772 (1,256)
Taxation (797) (3,258)
Capital expenditure (4,745) (6,705)
Disposals 37,672 74,451
Acquisitions (1,863) (6,589)
Equity dividends paid (5,272) (49,688)
Issue and redemption of shares 1,689 569
---------- ----------
27,639 24,302
Debt acquired with subsidiaries (7,139) (150)
Finance leases disposed of 31 386
Translation difference 70 (203)
---------- ----------
Movement in net debt in the period 20,601 24,335
Opening net debt (604) (24,939)
---------- ----------
Closing net cash/(debt) 19,997 (604)
========== ==========
4imprint Group plc
NOTES TO THE PRELIMINARY ANNOUNCEMENT
Full Year Ended 30 December 2000
1) Basis of Preparation
This preliminary announcement for the year ended 30 December 2000 has
not been audited and does not constitute statutory accounts within the
meaning of S240 of the Companies Act 1985. The financial information
has been prepared on the basis of the accounting policies set out in
the Group's Annual Report & Accounts for the year ended 1 January
2000. These accounts carry an unqualified auditor's report, and have
been delivered to the Registrar of Companies. The comparative results
for the year ended 1 January 2000 are abridged, and as such do not
represent statutory accounts. The full Annual Report & Accounts for
the year ended 30 December 2000 will be posted to shareholders shortly
and, after adoption at the Annual General Meeting, delivered to the
Registrar of Companies.
2) Segmental Analysis 2000 1999
--------------------- ---------------------
Sales Op Profit Sales Op Profit
(pound) (pound) (pound) (pound)
'000 '000 '000 '000
ORIGIN
United Kingdom 51,821 1,730 42,166 605
United States 36,211 2,082 29,738 2,924
Discontinued Businesses 28,646 (3,719) 108,391 8,334
--------------------- ---------------------
116,678 93 180,295 11,863
===================== =====================
PRODUCT
Promotional Marketing 88,032 3,812 71,904 3,529
Discontinued Businesses 28,646 (3,719) 108,391 8,334
--------------------- ---------------------
116,678 93 180,295 11,863
===================== =====================
3) Exceptional Item 2000 1999
(pound) (pound)
'000 '000
Loss on Class 1 disposal (Bemrose Security
Printing and Henry Booth Group) (20,029) -
Loss on disposal of other subsidiaries (24,466) (102)
Costs of fundamental reorganisation (1,389) -
Net release of provision for loss on sale of
US Supplier businesses - 1,973
Closure costs relating to Meridian
Promotional Products BV, Holland - (271)
---------------------
(45,884) 1,600
=====================
The current year losses on the disposal of businesses include costs of
(pound)31,590,000 relating to goodwill previously written off against
reserves.
4) Taxation 2000 1999
(pound) (pound)
'000 '000
United Kingdom (1,331) 2,605
Overseas 1,606 245
Exceptional items - 992
---------------------
275 3,842
=====================
5) Dividends 2000 1999
p p
Interim dividend (paid 13 November 2000) 6.45 6.45
Final dividend 12.20 12.20
Special dividend (paid 24 May 1999) - 100.00
---------------------
18.65 118.65
=====================
The final dividend in respect of 2000 of 12.20p will be paid on 25th
May 2001 to shareholders on the Register at close of business on 27th
April 2001.
6) Loss per share (EPS)
The loss per share calculation is based on losses after tax and
preference dividends of (pound)45,366,000 (1999 : Profit -
(pound)8,802,000), and weighted average shares in issue of
28,205,000 (1999 : 33,493,000).
The diluted loss per share is based on the same loss and profit
figures as above, but takes into account the dilutive effect of
share options outstanding, which leaves the weighted average
number of shares in issue of 28,207,000 (1999 : 33,586,000).
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