LONDON INTERNATIONAL REPORTS HALF YEAR RESULTS
LONDON INTERNATIONAL REPORTS HALF YEAR RESULTS LONDON, Nov. 21 /PRNewswire/ -- London International Group, plc
(NASDAQ: LONDY), the consumer products and services company, today announced pre-tax profits of 20.5 million pounds sterling (1990, restated: 17.6 million pounds), an increase of 16.5 percent, for the six month period ended Sept. 30, 1991.
Operating profit was 25.1 million pounds (1990: 23.6 million pounds), up 6.4 percent on sales of 190 million pounds (1990: 185.8 million pounds), an increase of 2.3 percent. Earnings per ordinary share were 8.27 pence (1990, restated: 8.63 pence). The directors have approved an interim dividend of 3.2 pence per ordinary share, an increase of 6.7 percent. Health and Personal Products The Health and Personal Products divisions achieved operating profit of 13.6 million pounds (1990: 11.1 million pounds), up 22.5 percent on turnover of 119.1 million pounds (1990: 111.1 million pounds), an increase of 7.2 percent. The condom market continued to expand worldwide and London International Group's business, in this category, continued to increase in most major markets. The Asia Pacific division continued to grow. In May, a joint venture agreement was signed with Royal Industries Thailand Co. Ltd. This move has given the group condom market leadership in Thailand and an important base from which to develop further business in this important area of the world. The Regent Biogel surgeons' glove business continued to increase market share both in the U.K. market and in the important North American market, while the introduction of Biogel gloves continued on track throughout continental Europe. The new Biogel manufacturing facility in Malaysia was completed. Prime manufacture of surgeons' gloves is being transferred to this new factory, enabling the group to maintain its competitive position in this rapidly developing sector of its business. In September, an agreement was reached to acquire the Manan range of natural hair and body care products from Reckitt and Colman plc, in Germany, with effect from January 1992. This move is consistent with the group's niche market strategy within its Health and Beauty Aids business. It strengthens the German operation and provides other regional opportunities. Photoprocessing The Photoprocessing division, ColourCare, achieved operating profits of 11.5 million pounds (1990: 12.4 million pounds) on sales of 70.9 million pounds (1990: 70.8 million pounds, excluding discontinued activities) during a period when the U.K. photoprocessing market suffered a volume decline. ColourCare has been heavily affected in the United Kingdom but has concentrated on operating efficiencies, technical improvements and strategic acquisitions such as the Cross of Enfield/Regency business in May. The new laboratory in Mo-I-Rana, Norway, is now fully operational, offering opportunities to be even more efficient in the important Scandinavian mail order market. Commenting on the interim results, Alan E. Woltz, chairman, said, "We are pleased with these results, but continue to operate on the assumption that economic conditions in the U.K. will not improve significantly until next year. "However, we believe that the strength of our brands, the geographical spread of our businesses and the quality of our management worldwide will enable the group to trade satisfactorily for the full year." Dividend The interim dividend is payable on April 6, 1992, to shareholders on the register at close of business on Feb. 14, 1992. The directors intend to offer shareholders a script alternative in respect of this dividend. LONDON INTERNATIONAL GROUP PLC Consolidated Profit and Loss Account for Half Year ended Sept. 30, 1991 (In millions of pounds sterling) Year ended Half Years Ended Pct. 3/31/91 9/30/91 9/30/90 Change Turnover 369.2 190.0 185.8 2.3 Operating profit 49.6 25.1 23.6 6.4 Int. payable, less receivable (10.3) (4.6) (6.0) Profit bef. exceptional item 39.3 20.5 17.6 16.5 Exceptional item - supplemen- tary interest (5.8) -- -- Profit on ordinary activities before tax 33.5 20.5 17.6 Tax on profit on ordinary activities (9.2) (6.6) (5.9) Profit on ordinary activities after tax 24.3 13.9 11.7 Minority interests (0.3) (0.1) -- Profit before extraordinary items (note 3) 24.0 13.8 11.7 Earnings per ordinary share 17.36p 8.27p 8.63p (4.2) Notes: 1. The above half-year results are unaudited. The accounting policies are as stated in the last report and accounts. 2. The results for 1990 have been restated to include supplementary interest on the convertible bond. 3. At the AGM on Sept. 13, the group announced the closure of its U.K. surgeons' glove plants. Costs, after anticipating tax relief, were estimated at approximately 11 million pounds; this represented estimated costs of 15 million pounds, less 4 million pounds of tax relief. It was further indicated that under the accounting policies then applicable, this item would be treated as extraordinary. On Oct. 31 the Accounting Standards Board issued a pronouncement by its Urgent Issues Task Force on the subject of extraordinary items and also indicated that in December it expects to issue an exposure draft which would further limit the use of extraordinary items. When the accounts for the full year to March 31, 1992, are prepared, the board will ensure that these are presented to reflect any changes in acceptable accounting policies. As in last year's accounts, earnings per share would be stated both before and after any exceptional items. Extraordinary items as previously reported were 0.6 million pounds in the half-year to Sept. 30, 1990, and 10.5 million pounds in the full year to March 31, 1991. 4. The board is paying an interim dividend of 3.2p (1990: 3.0p) per ordinary share at a cost of 5.4 million pounds (1990: 5.0 million pounds). 5. Earnings per ordinary share are based on the profit before extraordinary items and on the weighted average of 166.8 million ordinary shares of 10p in issue during the half year (1990: 136.1 million, restated for the rights issue in January 1991). 6. The above half year profit and loss account does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The full year comparative financial information is based on the statutory accounts for the financial year ended March 31, 1991. Those accounts, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies. LONDON INTERNATIONAL GROUP PLC Divisional Analysis of Turnover and Operating Profit for the Half Year ended Sept. 30, 1991 (In millions of pounds sterling) Turnover Operating Profit 1991 1990 1991 1990 Health & Personal Products 119.1 111.1 13.6 11.1 Photoprocessing services 70.9 70.8 11.5 12.4 Total 190.0 181.9 25.1 23.5 Discontinued activities -- 3.9 -- 0.1 Total 190.0 185.8 25.1 23.6 Taxation (In millions of pounds sterling) Half Year Half Year 1991 1990 The tax charge on profit comprises: U.K. corporation tax (3.4) (3.8) Overseas tax (3.2) (2.1) Total (6.6) (5.9) -0- 11/21/91 /CONTACT: David Harbut, finance director of London International, in London, 011-44-71-489-1977; or Marina Echavarria or Ken Donenfeld of DGI/The Donenfeld Group, 212-425-5700, for London International/ (LONDY) CO: London International Group, plc ST: IN: SU: ERN GK-TS -- NY010 -- 5743 11/21/91 09:19 EST
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|Date:||Nov 21, 1991|
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