Tibbett and Britten: 2003 Full Year Prelims and announcement of retirement of John Harvey
RNS Number:0019W
Tibbett & Britten Group PLC
02 March 2004
2 March 2004
TIBBETT & BRITTEN GROUP PLC
PRELIMINARY RESULTS FOR THE YEAR TO 31 DECEMBER 2003
Tibbett & Britten Group plc is a leading UK based international contract
logistics and supply chain management Company. Over 90% of the business is
based on long-term contractual relationships with major blue chip consumer
product manufacturers and retailers.
HIGHLIGHTS
* Turnover up 8% to #1.63 billion (2002: #1.52 billion)
* Good progress in European and International Divisions overshadowed by
unsatisfactory performance in Americas
* Action taken torefocus Americas; Mexico back on track
* Europe: Integration of UK and Mainland operations progressing; UK –
strong progress; Mainland Europe – encouraging growth in a difficult trading
environment
* International: strong performance – growth in South Africa and China
* Adjusted profit before tax #20.1m (2002: #29.4m). Profit before tax
#15.5m (2002: #13.3 m)
* Strong cash flow, net debt reduced to #50.8m (2002: #67.2m)
* Dividend for year maintained at 25.3p(2002: 25.3p)
* Strategically well placed for macroeconomic change – WTA and enlarged EU
Commenting, Chairman, John Harvey, CBE, said: “Our strategic focus and scale
enable us to exploit the opportunities presented by increasingly complex supply
chains and greater customer demands, whilst giving us the means to mitigate the
impact of competitive pressures. Our approach enables us to build on the
progress made in Europe and International in 2003 and after the events of last
year, operations in the Americas are projected to recover strongly.”
Enquiries:
John Harvey CBE, Chairman Telephone: 020 7796 4133 (on 2 March 2004)
Mike Arrowsmith, Chief Executive 020 8327 2000 (thereafter)
Mark Whiteling, Finance Director
Andrew Hayes/Jessica Rouleau/James Hill Telephone: 020 7796 4133
Hudson Sandler
Chairman’s Statement
Introduction
Good progress at our European and International Divisions was overshadowed by
the unsatisfactory performance of our Americas operations. In Europe, our
successful development reflected the benefits we are now realising from the
re-structuring of the UK business implemented in 2002 and the new management
structure put in place last year. The International Division performed well,
particularly in South Africa and with sustained growth in China.
In North America we have restructured the business following the management
changes announced at the end of lastyear. Overheads have been substantially
reduced and development realigned to deliver better consistency and performance
from the market leading positions we have achieved after twelve years of
unbroken growth.
The business is a global leader firmly focused within consumer logistics. As
such, it is strategically well positioned to sustain growth in our core European
and Americas markets whilst capitalising on our established presence in Central
Europe and China at a time when the May 2004 EU accessions and the adoption of
the World Trade Agreement accelerate supply change and migration of production.
Financial Results
Reported turnover was up 8% at #1,634 million (2002: #1,517 million) and
reported operating profit was #22.4 million (2002: #26.3 million) reflecting the
impact of one off events in the first half and an unsatisfactory performance in
the second half in North America and Mexico. Pre-tax profits were #2.2 million
better at #15.5 million, as 2002 was impacted by exceptional items. Accordingly,
basic earnings per share improved to 20.2 pence per share (2002: 5.4 pence per
share) Adjusted earnings per share were 29.1 pence (2002: 38.7 pence). The
Group’s operations r
