Galiform(GFRM)

Sector:

General Retailers

Index:

FTSE Small Cap

Market Cap

£136.29m

Change Today

Price Up1.75p

Share Price

21.50p

Half Yearly Report

RNS Number : 6598Z
Galiform PLC
23 July 2008
 

GALIFORM Plc


HALF YEARLY REPORT FOR THE 24 WEEKS ENDED 14 JUNE 2008


HIGHLIGHTS

The first half of 2008 has seen good performance across the Group's operations in a difficult economic environment, with Howden Joinery UK depot sales continuing to grow.


Financial highlights


Good underlying performance on key measures:


·         Howden Joinery UK depot revenue increased by 9.6%* to £342.6m (up 4.3%* on same depot basis). Group revenue (£354.6m) fell as a result of the planned ending of product supply to MFI;
 
·         Profit before tax and exceptional items fell by £4.7m to £20.1m, but this reflected the £11.8m impact of adverse currency movements and ‘residual’ logistics costs **. Excluding these factors, profit before tax and exceptional items rose by £7.1m to £31.9m;
 
·         Basic earnings per share before exceptional items of 2.1p (2007: 2.7p);
 
·         Basic earnings per share of 2.4p (2007: 7.0p);
 
·         Net cash outflow from operating activities of £26.9m included a cash flow of almost £35m in respect of a number of ‘one-off‘ payments. Excluding these, there was a net cash inflow of £7.3m;

·         Net debt of £40.9m at 14 June 2008 (29 December 2007: £3.3m) in line with expectations.

Operating highlights

We continue to strengthen our competitive position:

·         15 new Howden Joinery UK depots opened so far this year, bringing total to 451;
 
·         Various new products introduced, including 7 new kitchen ranges;


while at the same time managing 'legacy' issues (post the ending of product supply to MFI **).


Current trading


·         Howden Joinery UK depot revenue in the first period of the second half of the year (period 7) on a par with revenue achieved in the last period of the first half of 2008. Growth of 3.3% reflected strong performance in period 7 last year.

 

Galiform's Chief Executive, Matthew Ingle, said:

"Against a tough economic backdrop, the robustness of our business model has enabled us to deliver good results in the first half of 2008.  We continue to strengthen our competitive position and focus on providing our small builder customers with improved products and service refinement, while ensuring we prudently manage the business in these economic conditions." 



*    See Financial Review section note 1

**    See Financial Review section note 2



Enquiries


Investors/analysts:


Gary Rawlinson

Head of Investor Relations                           +44 (0)207 404 5959 (23 July 2008 only)

                                                                     +44 (0)207 535 1127

                                                                     +44 (0)7989 397527


Media:


Brunswick                                                     +44 (0)207 404 5959

     Susan Gilchrist

     Anna Jones

SUMMARY OF GROUP RESULTS


The information presented below relates to the 24 weeks to 14 June 2008 and the 24 weeks to 16 June 2007, unless otherwise stated.  There were no discontinued operations in either period.


£m unless stated

2008

2007

Before exceptional items unless stated






Revenue

 - Group

354.6

429.0

 - Howden Joinery UK depots

342.6

314.5

Gross profit

186.8

190.0

Gross profit margin, %

52.7

44.3

Operating profit

20.8

29.5

Profit before tax



- excluding exceptional items

20.1

24.8

- including exceptional items1

21.6

24.1




Earnings per share



- basic excluding exceptional items

2.1p

2.7p

- basic including exceptional items

2.4p

7.0p




Net (debt)/funds at end of period

(40.9)

3.7



1  Details of exceptional items are